Grant lifts Zambia’s railway revitalisation

Zambia’s plans to modernise its ageing railway network have received a substantial lift after the European Union approved a €50 million grant for Zambia Railways Limited (ZRL).

The funding will support the rehabilitation of key sections of track and the upgrading of signalling and telecommunications systems, marking one of the largest direct investments in the country’s rail infrastructure in recent years.

The grant was formally signed at a ceremony in Lusaka attended by senior officials, including EU Commissioner for International Partnerships, Jozef Síkela, Zambia’s Minister of Transport and Logistics, Frank Tayali, ZRL Managing Director, Cuthbert Malindi, and EU Ambassador to Zambia, Karolina Stasiak.

According to ZRL, the investment will focus initially on critical sections of the main line between Livingstone and Ndola, a corridor central to Zambia’s economic activity and freight movement.

The railway, controlled by the state-owned Industrial Development Corporation (IDC), has suffered from decades of underinvestment, resulting in slow speeds, reliability issues, and dwindling freight volumes, Transport & Logistics Zambia reports.

EU Commissioner Síkela said the funding reflected the EU’s commitment to supporting sustainable transport systems, emphasising that modern rail infrastructure reduced transport costs, cut congestion, and lowered greenhouse gas emissions.

The project forms part of a wider ‘Team Europe’ initiative, through which more than €200 million is being channelled into Zambia’s industrial and transport development under the bloc’s Global Gateway strategy.

Zambia’s government welcomed the decision, with Minister Tayali stressing that an upgraded rail network was essential to meet the country’s ambition of producing three million tonnes of copper annually by 2031. He highlighted the railway’s role in strengthening the Lobito Corridor, which offered a shorter and more efficient export route to the Atlantic Ocean.

ZRL said the improvements would enhance safety, speed and reliability while also supporting future private-sector participation through open-access rail operations. The upgrades are expected to benefit key sectors, including mining and agriculture, while bolstering regional trade linkages.

The grant marks a significant milestone for Zambia Railways, which has long sought capital to modernise its mainline and align the network with regional economic ambitions. Work will start once engineering assessments and procurement processes have been completed.