EU Injects €50 Million into Zambia Railways, Boosting Modernisation and Regional Trade
Zambia’s ambition to transform its rail transport landscape took a decisive leap forward this week as the European Union (EU) unveiled a substantial €50 million grant to Zambia Railways Limited (ZRL). This pivotal investment aims to rehabilitate critical rail infrastructure and upgrade signalling systems, marking a new chapter for Zambia’s quest to build a modern, efficient, and sustainable railway network.
The announcement came during a high-profile signing ceremony in Lusaka, attended by EU Commissioner for International Partnerships Jozef Síkela, Zambia’s Minister of Transport and Logistics Frank Tayali, European Investment Bank Vice President Karl Nehammer, and EU Ambassador to Zambia Karolina Stasiak. After a symbolic tour of the Ngwerere to Lusaka Station railway line, the officials formally unveiled the funding package, signaling the EU’s deepening commitment to Zambia’s economic development.
The grant is set to address Zambia Railways’ longstanding infrastructure challenges, focusing on upgrading key sections of the mainline between Livingstone and Ndola—one of the nation’s busiest and most commercially significant corridors. Investments will target the rehabilitation of aging tracks, improvements in train speeds, and the implementation of modern signalling technology, all of which are crucial for ensuring safer, faster, and more reliable operations.
Beyond physical upgrades, the EU’s support is designed to open the rail sector to greater private sector participation, increasing competitiveness and transparency. Modernising the rail network is expected to make Zambian transport more efficient, lower logistics costs, and reduce congestion on the country’s overstretched roads. Importantly, a rejuvenated railway is also seen as a vital tool for cutting greenhouse gas emissions, aligning Zambia’s growth agenda with global sustainability goals.
The Zambian government has welcomed the EU investment as a game-changer for the country’s development ambitions. Minister Frank Tayali underscored the importance of a revitalised Zambia Railways in helping the country achieve its goal of producing three million tons of copper annually by 2031. Improved rail capacity will be instrumental in moving bulk minerals and other goods efficiently to export markets, especially as Zambia cements its role as a key player in the emerging Lobito Corridor.
This strategic corridor, linking Zambia to Angola’s Atlantic port of Lobito, is expected to provide the region with a shorter, more cost-effective export route. In addition to supporting the mining sector, the upgraded railway will also open new opportunities in agriculture and logistics, further diversifying Zambia’s economy. The EU’s involvement is a clear vote of confidence in the country’s potential to become a logistics hub for southern and central Africa, fostering regional integration and trade.
Representatives from leading European logistics companies, including C. Steinweg Bridge Zambia and Africa Global Logistics, were present at the ceremony and expressed optimism over the ripple effects that the investment will have on Zambia’s broader transport and logistics ecosystem. Enhanced rail performance is expected to catalyse new business models, attract further foreign investment, and strengthen Zambia’s competitiveness as a transit country.
For ZRL, which is administered by Zambia’s state-owned Industrial Development Corporation (IDC), the EU funding represents a rare opportunity to tackle persistent inefficiencies and modernise legacy systems. The focus on the Livingstone–Ndola mainline means that improvements will be felt along a route that handles a significant portion of Zambia’s freight and passenger traffic. The long-term vision is to develop a railway system that not only meets local needs but also supports regional trade and mobility.
The EU has described its support as a driver for sustainable growth and regional integration. By investing in rail infrastructure, the EU hopes to help Zambia lower transport costs, improve logistics, and unlock new economic opportunities. The partnership signals a shared commitment to building greener, more resilient transport networks that can keep pace with Africa’s rapid urbanisation and growing trade volumes.
As the rail modernisation project gets underway, travel and logistics professionals across sub-Saharan Africa will be watching closely. The success of Zambia’s rail upgrade could provide a valuable blueprint for similar initiatives elsewhere on the continent, particularly in countries seeking to expand their transit and export capacity. With international funding and local determination, Zambia is set to embark on a transformative journey—one that promises to reshape its economic landscape and enhance its role in Africa’s interconnected future.
