The Zambian government plans to leverage Public Private Partnerships as an alternative source of financing for public investment in various sectors, including railway projects that include the Lobito Corridor Railway line and the concession agreement for Tanzania Zambia Railway Limited (TAZARA) with China Civil Engineering Construction Corporation.
The government has, from 2022 to 2025, signed 13 concession projects for various railway, road and border posts projects worth over US$7.6 billion, according to the 2026-2028 Medium Term Budget Plan and the 2026 Budget Green Paper, released by the Ministry of Finance and National Planning.
This year, the government is expected to sign more concession projects, including the TAZARA project. Over the 2026-2028 medium term, economic activity in the transport sector is expected to remain favourable. This will largely be driven by high production in the agriculture and mining sectors, as well as improvements in the road and rail network sector, which will accommodate and facilitate the efficient flow of goods and services within the country and the region, according to the documents.
The government said it will continue to maintain, develop, modernise and integrate road, rail, aviation and water transport infrastructure. Furthermore, the government will further prioritise the development of cross-border infrastructure, the development of international and inland dry ports and trade centres in order to ease the movement of goods and passengers.
Zambia has already signed the Walvis Bay-Ndola-Lubumbashi Corridor, Lobito Corridor, Central Corridor, Beira and Nacala Corridor Agreements with neighbouring countries in order to enhance regional trade and connectivity. In addition, Zambia is in the process of ratifying the North-South Corridor Agreement.
Further, the government has signed a concession agreement for the development of the Zambia-Lobito Railway Project, which will provide connectivity to the Lobito Port in Angola. The Lobito Corridor traverses the Republic of Zambia and Democratic Republic of Congo (DRC) to the Port of Lobito in Angola.
The government contends the development of this corridor will present an alternative strategic outlet to export markets for Zambia and DRC, and will offer the shortest route for key mining regions in these two countries to the Atlantic Ocean.
The government has also signed an agreement with Botswana to facilitate the construction of the Livingstone via Kazungula to Mosetse Rail Link Project.
In order to shift the movement of bulk cargo from road to rail, Zambia and Tanzania are in the process of signing the concession agreement for TAZARA with China Civil Engineering Construction Corporation. This concession agreement will lead to improved operations of railway infrastructure, which will enable the efficient transportation of minerals and materials.
The documents revealed that Zambia Railways and the government are in discussions with the European Union (EU) and other cooperating partners for the revitalisation of the entire railway network from Livingstone to Chililabombwe.
Written by: Chamwe Kaira
