Zambia Railways Secures US$60 Million for Rail Upgrade
Zambia Railways Limited (ZRL) has appointed Pangaea Securities as Transaction Advisor to mobilise US$60 million in financing from Development Finance Institutions (DFIs) and private investors.
The funding will complement a €50 million grant provided under the European Union’s Railway Sector Support Programme (RSSP), aimed at rehabilitating critical sections of the country’s railway infrastructure, signalling, and communication systems.
The initiative forms part of ZRL’s Strategic Business Plan (2024–2028), which targets a significant increase in freight haulage capacity from 800,000 tonnes in 2024 to 2.6 million tonnes by 2028. Phase 1 of the plan requires US$113 million in capital investment to modernise infrastructure and improve operational efficiency.
Speaking during the contract signing ceremony, ZRL Managing Director Engineer Cuthbert Malindi described the partnership with Pangaea Securities as a milestone in bridging financing gaps.
“By bringing on board Pangaea Securities, we are leveraging private sector expertise to structure bankable transactions and attract credible patient capital. Public-private collaboration is essential in ensuring sustainability,” Engineer Malindi said.
He likened the railway system to “a stool with three broken legs” rolling stock, track infrastructure, and operational efficiency, emphasising that all three must be restored simultaneously for ZRL to regain stability and competitiveness.
Pangaea Securities Chief Executive Officer, Ceasar Siwale, expressed confidence in the firm’s ability to deliver. “We are particularly excited to be part of this journey with Zambia Railways Limited. Our strength lies in identifying the right sources of capital, structuring bankable transactions, and engaging effectively with a wide network of financiers,” he said.
The EU-backed rehabilitation project is expected to restore safety, reliability, and efficiency to Zambia’s rail operations. Improved services are projected to boost ZRL’s revenues, attract more freight customers, and strengthen Zambia’s position as a regional trade hub.
The project builds on decades of donor-supported railway rehabilitation efforts dating back to the 1980s, highlighting the strategic importance of rail transport as a national asset for economic growth and regional connectivity.
