Government to Secure Long-Term Funding for Zambia Railways
Zambia plans to accelerate the acquisition of additional grant financing for the long-term rehabilitation of the railway system from Chingola in the Copperbelt, the country’s copper mining region, to Livingstone, close to the border with Zimbabwe.
Zambia Railways’ main operational domains are Livingstone to Chililabombwe on the Copperbelt, Livingstone to Mulobezi, and Chipata to Mchinji.
Minister of Finance and National Planning, Situmbeko Musokotwane, stated in the 2025 budget speech that, with the support of cooperating partners, the government is actively working to revitalise the Zambia Railways system in a methodical and cost-effective manner. The ultimate goal is to improve track speed, signalling, and secure funding for long-term investments, the minister said.
Musokotwane disclosed that, in addition, the government is in discussions with cooperating partners for possible support with rail wagons and locomotives. The company’s 2024-2028 strategic business plan aims to secure adequate capitalisation of US$248 million towards operational and capital expenditures throughout the strategy’s timelines.
Zambia has already signed a memorandum of understanding with the governments of China and Tanzania to rehabilitate and modernise the Tanzania-Zambia Railway Authority (TAZARA) infrastructure and equipment. Once rehabilitated, tonnage on the TAZARA railway line will increase to 2.5 million metric tonnes from the current half a million metric tonnes per annum, said Musokotwane.
According to the market study conducted by Zambia Railways in 2022, the market size for heavy and bulk cargo along the line of rail is 21 million tonnes. ZRL currently moves about 800,000 metric tonnes per annum, representing 4% of the market share. The company transports various cargo, covering many of Zambia’s economic sectors, including sugar, wheat, mining, energy, construction, and manufacturing.
In terms of other transport and logistics plans, Musokotwane said the government intends to construct 610 kilometres of roads, including a highway leading to the border with Tanzania.
Musokotwane further noted that the government had concluded negotiations with the Millennium Challenge Corporation, an agency of the United States Government, for grant financing of US$458 million. The grant will be used to rehabilitate and maintain 338 kilometres of road.
He said the government has demonstrated that Public-Private Partnerships can deliver results in infrastructure development. Through the PPP model, the government has signed seven projects covering a total of 838 kilometres.
Musokotwane stated that the Chingola-Kasumbalesa Road, leading to the border with the Democratic Republic of Congo (DRC), is completed and operational, while works on the Lusaka-Ndola Dual Carriageway, Mufulira-Mokambo Road, and the Ndola-Mufulira Road, as well as the access road to Sakania—all leading to the border with the DRC—are on course.
Written for Railways Africa Magazine by – Chamwe Kaira