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The European Union (EU) has granted €50 million to Zambia Railways Limited (ZRL) for the rehabilitation of railway tracks and modernisation of signalling systems, authorities have announced.
European Union Commissioner for International Partnerships, Jozef Sikela, said the EU Railway Sector Support Programme would help ZRL modernise its network, upgrade signalling systems, open access for private operators, and support reforms aimed at making the rail sector more competitive and transparent.
Speaking during a tour of the Lusaka Railway Station from Ngwerere to Lusaka on Monday, Sikela noted that a modern railway system helped lower transport costs, reduce congestion, and cut gas emissions.
Minister of Transport and Logistics, Frank Tayali, said the EU’s investment was crucial in positioning rail transport as a key enabler of Zambia’s ambition to achieve three million tonnes of annual copper production by 2031.
“An efficient Zambia Railways network will enhance Zambia’s role as a central link in the Lobito Corridor, providing a shorter and more efficient route to the Atlantic Ocean, as well as unlocking new opportunities in sectors such as mining and agriculture,” Tayali said.
Speaking at the same event, European Investment Bank (EIB) Vice President, Karl Nehammer, underscored the importance of modernising rail infrastructure, highlighting its potential to drive the country’s economic growth.
EU delegates and members of the Zambian Ministry of Transport pose for a group photo at a train station in Lusaka before holding a briefing on November 10, 2025.
Meanwhile, ZRL Board Chairperson, Emmanuel Hachipuka, thanked the EU for the generous grant, saying it would enable the company to upgrade critical sections of its railway line, improve train speeds, and enhance operational efficiency.
“The grant is a key step in addressing inefficiencies in rail transport and it will unlock future funding for the company. For Zambia Railways, this project represents renewed relevance and confidence. It will allow us to handle increased cargo volumes and reduce transport costs,” Hachipuka said.
Two European logistics firms—Steinweg Bridge Zambia and Africa Global Logistics—also welcomed the EU’s investment, citing its potential to revitalise Zambia’s rail subsector.
Senior management officials from the Industrial Development Corporation (IDC), the company’s shareholder, also attended the event.
The EU-funded project will support track repair works on ZRL’s mainline between Livingstone and Ndola, aimed at ensuring safer, more reliable, and efficient train operations.
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