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Zambia Railways Limited (ZRL) has appointed Pangaea Securities as Transaction Advisor to mobilise US$60 million from Development Finance Institutions (DFIs) and private sector investors to support the rehabilitation of the country’s railway infrastructure.
The funding will complement a €50 million grant secured under the European Union (EU) Railway Sector Support Programme (RSSP), which is aimed at rehabilitating critical sections of ZRL’s rail network, including signalling and communication systems.
According to a statement issued on Thursday, the financing initiative is anchored on ZRL’s Strategic Business Plan (2024–2028), which targets an increase in annual freight volumes from 800,000 tonnes in 2024 to 2.6 million tonnes by 2028.
Phase One of the plan requires an estimated US$113 million investment to upgrade infrastructure and signalling systems.
The RSSP forms part of Zambia’s broader agenda to revitalise rail transport as a key national asset, improve freight efficiency and strengthen regional trade competitiveness.
The programme builds on past rehabilitation efforts supported by multilateral partners dating back to the 1980s.
“Improved infrastructure is expected to enhance operational efficiency and service reliability, positioning rail as a more attractive transport option while boosting ZRL’s revenue base. The initiative is also projected to stimulate economic growth by improving trade routes and regional connectivity,” the statement stated.
Speaking at the contract signing ceremony, ZRL Managing Director, Cuthbert Malindi, described the partnership as a major milestone in securing additional capital required to implement the EU-supported rehabilitation project.
He emphasised the importance of public-private collaboration in transforming railway systems globally.
“By engaging Pangaea Securities, we are leveraging private sector expertise to structure and mobilise the additional financing required to complement the EU grant. This partnership will help us attract credible long-term capital and accelerate the implementation of our rehabilitation programme,” he said.
Malindi noted that ZRL was simultaneously undertaking initiatives to improve operational efficiency and expand rolling stock capacity through the hiring and remanufacturing of locomotives and wagons.
He likened the current state of the railway to “a stool with three broken legs” representing rolling stock, infrastructure and operational efficiency.
“For the system to function effectively, all three areas must be addressed comprehensively and simultaneously. That is the approach we are taking,” he said.
He further expressed gratitude to the EU, the Government of Zambia through the Industrial Development Corporation (IDC), the Board of Directors and other stakeholders for their continued support.
Meanwhile, Pangaea Securities Chief Executive Officer, Ceasar Siwale, reaffirmed the firm’s commitment to successfully mobilising the targeted US$60 million.
“We are excited to partner with Zambia Railways Limited on this important project. Our strength lies in structuring bankable transactions, identifying appropriate sources of capital and engaging a wide network of financiers to deliver results,” he said.
The EU-funded rehabilitation project is designed to restore safety, improve reliability and enhance overall efficiency of railway operations in Zambia.
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