Government has disclosed that it allocated K100 million as part of the November 2025 budget releases for the recapitalization of Zambia Railways Limited (ZRL), a move aimed at modernizing the country’s transport and logistics sector.
Minister of Finance and National Planning Dr. Situmbeko Musokotwane says rail transport remains the most efficient and cost-effective way to move bulk cargo, making a reliable rail network crucial for a land-linked economy like Zambia.
He has added that the rehabilitation of ZRL is expected to lower logistics costs, protect highways, and enhance competitiveness across the mining, agriculture, and manufacturing sectors.
In November 2025, this national priority received further support when the Government and the European Union signed a 50 million Euro grant dedicated exclusively to ZRL.
The funding will target critical track sections and modernize signaling and communication systems upgrades essential for safer, faster, and more reliable train operations.
Officials say the improvements will reduce derailments, improve scheduling, increase operating speeds, and restore confidence in rail as a serious freight option. ZRL remains central to the Government’s policy for long-term economic transformation.
In the broader context of the November 2025 budget releases, Dr. Musokotwane has revealed that the Treasury released K15.56 billion to finance public service delivery.
Of this amount, K2.43 billion was allocated to transfers, subsidies, and social benefits, K2.04 billion supported government programmes and general operations, K1.2 billion was spent on capital expenditure, K4.63 billion went towards the public service wage bill including overseas allowances for diplomats, and K5.26 billion was allocated to domestic and external debt service and arrears.
-Diamond TV