The Zambian government has released K100 million to Zambia Railways Limited ZRL as part of a major recapitalisation and rehabilitation initiative aimed at modernising the national rail network. The funding is intended to tackle long-standing transport and logistics challenges that have constrained economic growth, particularly in bulk cargo movement.
This domestic funding complements over 50 million from the European Union's Railway Sector Support Programme, which targets the rehabilitation of tracks and the modernisation of signalling and telecommunications on key sections of the main line. Together, these investments aim to transform Zambia Railways from survival mode to a modern, efficient, and commercially viable rail system.
Rail infrastructure is central to Zambia's economic strategy, as outlined in the Eighth National Development Plan and the 2026 National Budget, which prioritise integrated transport for economic transformation, job creation, and export competitiveness. Rail remains the most cost-effective means for moving bulk cargo, reducing road congestion, lowering logistics costs for farmers and businesses, and supporting Zambia's climate commitments by cutting carbon emissions.
