Zambia Railways Partners with Pangaea Securities to Raise $60 Million for Rail Modernization
Zambia Railways Limited has appointed Pangaea Securities as Transaction Advisor to help secure US$60 million in financing from Development Finance Institutions (DFIs) and private investors.
The funding initiative marks a key step in revitalizing the country’s rail network and strengthening its role in regional trade and logistics.
The planned financing will complement a €50 million grant provided through the European Union under its Railway Sector Support Programme (RSSP).
The program is designed to rehabilitate critical sections of Zambia’s railway infrastructure, including track systems, signaling, and communication networks.
Strategic Investment to Boost Freight Capacity
The financing effort forms part of Zambia Railways’ Strategic Business Plan (2024 -2028), which aims to significantly expand freight capacity and improve operational performance.
The company plans to increase annual freight volumes from 800,000 tonnes in 2024 to approximately 2.6 million tonnes by 2028, positioning rail transport as a more competitive and cost-effective option for cargo movement.
Phase 1 of the modernization program requires an estimated US$113 million in capital investment to upgrade infrastructure, enhance operational efficiency, and restore service reliability.
These improvements are expected to reduce logistics costs, improve transit times, and support economic growth across key sectors such as mining, agriculture, and manufacturing.
Public–Private Collaboration to Close Financing Gaps
Speaking during the contract signing ceremony, Zambia Railways Managing Director Engineer Cuthbert Malindi described the partnership with Pangaea Securities as a critical milestone in addressing long-standing funding challenges.
He emphasized that leveraging private sector expertise will help structure financially viable projects capable of attracting long-term investment.
According to Malindi, collaboration between public institutions and private investors is essential to ensuring the sustainability of major infrastructure projects.
To illustrate the current challenges facing the railway system, he compared the network to “a stool with three broken legs”referring to aging rolling stock, deteriorating track infrastructure, and operational inefficiencies.
Restoring all three components simultaneously, he noted, is necessary for the railway to regain stability and competitiveness.
Confidence in Financing Strategy
Ceasar Siwale, Chief Executive Officer of Pangaea Securities, expressed confidence in the firm’s ability to mobilize capital and support the transformation of Zambia’s rail sector.
He highlighted the company’s experience in identifying suitable funding sources, structuring bankable investment opportunities, and engaging with international financiers.
The partnership is expected to accelerate progress toward securing sustainable financing while improving investor confidence in Zambia’s transport infrastructure projects.
Strengthening Zambia’s Role as a Regional Trade Hub
The EU-supported rehabilitation initiative is expected to significantly improve safety, reliability, and efficiency across the rail network.
Enhanced rail services are projected to increase revenue for Zambia Railways, attract additional freight customers, and reduce pressure on road transport systems.
Modernized rail infrastructure will also strengthen Zambia’s position as a regional logistics hub by improving connectivity to neighboring countries and key trade corridors.
The project builds on decades of railway rehabilitation programs supported by development partners since the 1980s, underscoring the strategic importance of rail transport as a national asset for economic development, regional integration, and long-term infrastructure resilience.
