Zambia Railways Limited (ZRL), a parastatal, is upgrading its signalling and telecommunications equipment after receiving €50 million in funds from the European Union.
The massive upgrade, which was accompanied by the Treasury's recent release of K100 million (US$4,32 million or €3,69 million) to help the network's recapitalisation and rehabilitation, is expected to enhance local economic growth and strengthen the region's objectives for modern, smart trading routes.
Dr. Situmbeko Musokotwane, minister of finance and national planning, has welcomed the disbursement of funding.
He stated that for many years, ZRL had suffered the brunt of outdated signalling and communications systems, which had reduced train speeds, jeopardised dependability and safety, and pushed freight onto crowded highways.
The problem has been exacerbated by ageing locomotives and wagons, as well as outdated passenger coaches.
Musokotwane stated that the investment was firmly rooted in the Eighth National Development Plan and the 2026 National Budget, which emphasised modern, integrated transport and logistics as key drivers of economic change, job creation, and export competitiveness.
“Rail is at the heart of that agenda,” he stated late Wednesday. The minister said revitalising ZRL would also strengthen the country’s position on regional corridors.
This comes as Southern Africa digitises its rail networks by adopting modern tech like artificial intelligence, digital twins and new communication systems.
In 2023, Huawei and the Southern African Railways Association entered into a memorandum of understanding to establish a framework of cooperation for the improvement of railway transport and corridor logistics in the bloc.
Zambia is the most strategically located country in the region and beyond, sharing borders with eight countries in Central, East and Southern Africa.
It is part of the ambitious 1 300-km Lobito Corridor, alongside Angola and the Democratic Republic of Congo, aimed at providing the most efficient trade route to global markets for critical minerals.
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