LUSAKA – Zambia’s ambitions to develop a modern and efficient railway system received a significant boost this week as the European Union (EU) announced a €50 million grant to Zambia Railways Limited (ZRL). The funding is earmarked for the rehabilitation of key railway tracks and the upgrading of signalling systems, marking a major step toward modernizing the country’s rail infrastructure.

The signing ceremony, held in Lusaka, was attended by high-profile officials, including EU Commissioner for International Partnerships Jozef Síkela, Zambia’s Minister of Transport and Logistics Frank Tayali, European Investment Bank Vice President Karl Nehammer, and EU Ambassador to Zambia Karolina Stasiak. The delegation toured the railway line from Ngwerere to Lusaka Station prior to unveiling the funding package.

EU officials emphasized that the support is intended to modernize Zambia Railways’ aging infrastructure, enhance signalling systems, and create opportunities for private operators. “A modern railway network not only reduces transport costs and congestion but also helps lower greenhouse gas emissions,” Síkela said, highlighting the EU’s commitment to sustainable and efficient transport systems.

Zambia’s government welcomed the investment, describing it as a crucial component in positioning rail transport as a central driver of national development. Minister Tayali noted that a modernized railway network is key to achieving the government’s target of producing three million tons of copper annually by 2031. “Efficient rail infrastructure will strengthen Zambia’s role as a central link in the Lobito Corridor, providing a shorter and more effective route to the Atlantic Ocean,” he said.

The Lobito Corridor project is expected to not only support the country’s mining sector but also expand opportunities in agriculture, logistics, and regional trade. EU officials said that their investment in Zambia Railways is part of a broader strategy to promote regional integration and sustainable economic growth through improved transport infrastructure.

Under the funding plan, Zambia Railways will focus on upgrading critical sections of its mainline, improving train speeds, and enhancing operational efficiency. The network, which has struggled with long-standing inefficiencies, is expected to benefit from safer, faster, and more reliable train operations once the improvements are completed.

Two major European logistics firms, C. Steinweg Bridge Zambia and Africa Global Logistics, attended the Lusaka ceremony and expressed optimism about the potential impact of the EU investment. Both companies highlighted that a modern rail system could revitalize Zambia’s transport and logistics ecosystem, making it more attractive to private investors and international trade partners.

Zambia Railways is controlled by the state-owned Industrial Development Corporation (IDC), which serves as the shareholder. The EU funding will particularly target the mainline between Livingstone and Ndola, one of Zambia’s busiest and most economically critical routes. The improvements are expected to not only support the mining and agriculture sectors but also contribute to broader economic development and regional connectivity.

With the €50 million investment, EU and Zambian authorities hope to transform Zambia Railways into a modern, competitive, and transparent system capable of supporting the country’s long-term economic goals. The project represents a major milestone in Zambia’s efforts to modernize its transport infrastructure while promoting sustainable growth across Southern Africa.

The Maputo Port Development Company (MPDC) has announced a major investment plan of about 500 million US dollars over the next three years aimed at expanding and modernizing key infrastructure at the Port of Maputo, one of Mozambique’s most important economic gateways. Mozambican President Daniel Chapo, speaking on Thursday during a working visit to the port, said the investment will focus on upgrading several terminals and significantly boosting operational capacity to keep pace with growing regional and international trade demands. According to Chapo, the port’s container handling capacity will be expanded to more than 500,000 TEUs, allowing it to handle larger volumes of cargo more efficiently.

He added that the Coal Terminal will see an increase in capacity from 12 million to 15 million tonnes, while the General Cargo Terminal is expected to exceed 15 million tonnes, reinforcing the port’s role as a strategic hub for southern Africa. The President emphasized that these developments represent much more than physical construction or technical upgrades, noting that improved capacity and efficiency will attract more business, create new employment opportunities, and generate higher revenues for the state.

He stressed that the government has a responsibility to reinvest this revenue into critical sectors such as healthcare, education, electricity expansion, clean water access, and other essential services that directly support national development and improve the quality of life for citizens. Chapo also revealed that preparations are underway for major structural projects expected to begin in 2026, including dredging the port’s access channel to allow accommodation of larger vessels and align the Port of Maputo with the largest and most competitive ports in the region. Another significant initiative is the reconstruction of more than 400 meters of quay, which will enhance the safety, efficiency, and long-term resilience of the port’s infrastructure.

He explained that advanced technology will be incorporated into these upgrades, including automatic systems linking the Port of Maputo with the Ressano Garcia border crossing between Mozambique and South Africa, a key transit point for regional trade. This integration is expected to streamline cargo movement, reduce delays, improve transparency, and help combat illicit practices by increasing monitoring and efficiency. In addition to physical and technological upgrades, Chapo highlighted plans to establish a modern training center within the port equipped with state-of-the-art simulators and virtual learning facilities.

This initiative demonstrates the government’s recognition that developing a skilled workforce is essential for building a competitive port sector capable of sustaining long-term growth. The President also noted that since the concession of the Port of Maputo to DP World in 2003, which led to the creation of MPDC, total investment in the port’s development has reached 900 million dollars, showing strong and consistent commitment from both the government and private partners.

He reaffirmed the government’s dedication to working closely with the private sector, international stakeholders, and national institutions to ensure that all planned projects yield meaningful economic and social benefits for the people of Mozambique. According to Chapo, the Port of Maputo remains a vital engine of national development, and its continued modernization will play a crucial role in strengthening the country’s regional competitiveness and long-term economic growth.

Mozambique’s government has approved a plan for the Caminhos de Ferro de Moçambique (CFM), the national railway company, to lead the development of a major new logistics terminal in Dondo. The terminal, which will cover 70 hectares with room for future expansion, is being created to help manage growing demand for the port of Beira from neighboring countries.

The decision, announced through a recently approved government resolution, allows CFM to receive the project through a direct award. A special negotiation team will now begin drafting the concession contract for designing, building, operating, and maintaining the new terminal, which will be located in Sofala province in central Mozambique.

According to the Ministry of Transport and Logistics, Beira Port has become one of the most important logistics hubs in the region. It plays a vital role in the Beira Corridor and serves several landlocked countries, including Zimbabwe, Zambia, Malawi, and the Democratic Republic of Congo. These countries rely heavily on Beira for the movement of fuel, agricultural goods, minerals, and other essential products.

However, the port has been struggling to keep up with this increased activity. The government notes that storage areas and access roads at Beira are frequently congested. Long queues of trucks form at the entrances and exits, slowing down operations and increasing transport costs. This congestion also affects overall road safety and reduces the efficiency of the entire corridor.

To address these challenges, the government has directed CFM to take charge of the Dondo Logistics Terminal project. The new facility is expected to ease pressure on the port by creating additional space for cargo handling, storage, and customs processing. It will function as a dry port, allowing some logistics activities to move away from the crowded Beira waterfront.

The government says CFM is well suited to lead the project because it has the necessary technical skills, financial strength, and long-standing experience in logistics infrastructure development. The plan also allows CFM to work with established private-sector partners, especially those with strong experience in designing and operating dry ports.

The concession will be carried out through a consortium that includes CFM, MPDC (the company that manages Maputo Port), the Sofala Business Council, and the Municipality of Dondo. These groups will collaborate to ensure the terminal meets regional needs and supports Mozambique’s long-term logistics strategy.

The project fits into the government’s wider plan to transform the country’s logistics corridors into competitive revenue centres. Officials say Mozambique wants its transport routes — especially corridors like Beira, Maputo, and Nacala — to operate at high regional standards so they can attract more international cargo and investment.

Under the resolution, the Minister of Transport and Logistics, João Matlombe, has 90 days to present the full concession contract and an accompanying decree for official approval.

Once completed, the Dondo Logistics Terminal is expected to reduce congestion at Beira Port, speed up cargo movement, cut transport delays, and improve supply chain efficiency across Southern Africa. For the countries that depend on the Beira Corridor, the new terminal could become a major step forward in building a more reliable and competitive regional logistics network.