Zambia Railways Limited (ZRL) has appointed Pangaea Securities as its Transaction Advisor to help raise $60 million. This money will support private sector investment alongside a €50 million grant from the European Union (EU) for the Railway Sector Support Programme (RSSP).
The funding is part of ZRL’s Strategic Business Plan (SBP) for 2024 – 2028. The goal is to increase freight transport from 800,000 tonnes in 2024 to 2.6 million tonnes by 2028. Phase 1 of the SBP involves a $113 million investment to improve rail infrastructure and signaling systems.
The RSSP is part of Zambia’s aim to strengthen rail transport as a national asset, improve freight efficiency, and boost trade. This plan builds on past efforts to restore ZRL’s railway infrastructure since the 1980s with help from various donors. The expected upgrades should help ZRL increase its revenues by improving operational efficiency and service reliability, which will attract more customers to train transport. Better rail services will also support Zambia’s economic growth by creating more efficient trade routes and enhancing regional connections.
During the contract signing ceremony, ZRL Managing Director Engineer Cuthbert Malindi called the partnership with Pangaea Securities an important step in securing the additional funding needed for the EU-supported track rehabilitation project.
Eng. Malindi emphasized that improving railways globally requires collaboration between the public and private sectors. Partnering with Pangaea Securities shows ZRL’s commitment to working with the private sector for additional financing solutions. He said, “By working with Pangaea Securities, we can efficiently structure and raise the extra funding needed to support the EU grant. This partnership helps us create bankable projects and attracts reliable investment while speeding up our rehabilitation plans. Collaboration between public and private sectors is crucial for closing funding gaps and ensuring long-term success.”
Eng. Malindi also mentioned that ZRL is focusing on improving operational efficiency and increasing its rolling stock capacity through leasing and upgrading locomotives and wagons. He compared ZRL to a stool with three broken legs. The first leg is rolling stock, the second leg is railway infrastructure, and the third leg is operational efficiency. For the stool to stand properly, all three legs must be fixed at the same time. This is the approach ZRL is taking.
The ZRL Managing Director expressed gratitude to the EU, the Government of Zambia through the Industrial Development Corporation (IDC), the Board of Directors, and other key supporters for their continuous help to ZRL.
Meanwhile, Pangaea Securities Chief Executive Officer Ceasar Siwale stated that the firm is dedicated to using its expertise and networks to raise the additional $60 million needed for the EU-supported project. He said, “We are thrilled to be part of this effort with Zambia Railways Limited. Pangaea has built a strong reputation in infrastructure financing. Our strength is in connecting with the right funding sources, creating bankable projects, and effectively engaging with a broad range of investors.”
The EU-funded track rehabilitation project aims to restore important sections of railway infrastructure to improve safety, reliability, and overall efficiency of rail operations in Zambia.
