By Cecilia Chiluba/Zambia/Lusaka
Zambia’s long-awaited rail transformation is gathering pace, with the Government placing the revitalization of Zambia Railways Limited (ZRL) at the centre of its national economic agenda.
The November 2025 budget releases, announced by the Ministry of Finance and National Planning on Sunday, included a significant K100 million allocation toward the recapitalisation of ZRL—one of the most substantial commitments to the rail sector in recent years.
The investment comes at a pivotal moment for the state-owned company, following the recent signing of a €50 million grant between the Zambian Government and the European Union (EU).
The grant, dedicated exclusively to ZRL, is earmarked for the overhaul of critical sections of track, and the modernization of signalling and communication systems—interventions designed to improve safety, reliability and overall efficiency of rail operations.
According to Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, modernizing Zambia’s rail infrastructure is essential to reducing transport costs, protecting overburdened road networks, and improving the country’s competitiveness as a land-linked economy.
Dr. Musokotwane said in a statement issued by the office of the Secretary to the Treasury that rail remains the most cost-effective means of moving bulk cargo such as copper, agricultural commodities and industrial goods.
He stated that a stronger rail network, will enhance trade flows and ease logistics bottlenecks that have long hindered economic growth.
“Rail is the most efficient and cost-effective way to move bulk cargo, and for a land-linked economy like Zambia, a dependable rail network is essential to lowering logistics costs, protecting highways, and improving competitiveness across mining, agriculture and manufacturing,” Dr. Musokotwane stated.
“This national priority gained renewed momentum in November 2025 when the Government and the European Union signed a €50 million grant dedicated exclusively to ZRL. The Government policy places ZRL at the centre of long-term economic transformation.”
He said the recapitalization effort is expected to reduce derailments, increase operating speeds, and restore confidence among mining companies and other major freight users who have historically relied on truck-based transport due to deterioration of the rail system.
Dr. Musokotwane noted that the improvements will be a major boost for Zambia’s position as a core transit hub in the Southern Africa region.
“As rehabilitation progresses, Zambia is rebuilding an asset vital to national growth, positioning the country as a more efficient and competitive link in regional trade systems,”Dr. Musokotwane added.
With Zambia having recently received credit rating upgrades from Standard & Poor’s and Fitch Ratings, the Minister stressed the importance of converting fiscal stability into tangible infrastructure gains.
