Zambia’s plans to develop a modern, efficient railway system received a major boost this week as the European Union (EU) announced a €50 million grant to Zambia Railways Limited (ZRL). The money is meant to rehabilitate key railway tracks and upgrade signalling systems.
The signing ceremony in Lusaka was attended by the 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.
The officials toured the railway line from Ngwerere to Lusaka Station before unveiling the funding package.
EU’s support aims to modernise Zambia Railways’ ageing infrastructure, improve signalling systems, and open up access for private operators, key steps towards making the country’s rail sector more competitive and transparent.
The EU is of the view that a modern railway system lowers transport costs, reduces congestion, and cuts greenhouse gas emissions. With a €50 million investment, the EU hopes that this will help unlock Zambia’s economic potential by building a greener and more efficient transport network.
The Zambian government has welcomed the EU’s investment as vital to positioning rail as a central player in Zambia’s development ambitions, especially in meeting the government’s goal of producing three million tons of copper annually by 2031.
The Ministry of Transport and Logistics has stated that an efficient Zambia Railways network strengthens the country’s role as a central link in the Lobito Corridor, providing a shorter and more efficient route to the Atlantic Ocean. The Lobito project will not only support mining but also open new opportunities in agriculture and logistics.
The EU stated that it invested in Zambia Railways because of the economic importance of modernising rail infrastructure, describing it as a driver for sustainable growth and regional integration.
The EU funding will, among other things, allow Zambia Railways to upgrade critical sections of its mainline, improve train speeds, and enhance efficiency. Zambia Railways has faced long-standing inefficiencies for many years.
The ceremony in Lusaka was also attended by two major European logistics companies, C. Steinweg Bridge Zambia and Africa Global Logistics, which are optimistic that the EU’s investment has the potential to revitalise Zambia’s transport and logistics ecosystem.
Zambia Railways is controlled by the state-owned Industrial Development Corporation (IDC) as Zambian Railways shareholder. The EU funding is expected to focus on Zambia Railways’ mainline between Livingstone and Ndola, one of the country’s busiest and most economically critical routes. Once completed, the project promises to deliver safer, faster, and more reliable train operations.
