Zambia’s Railway Sector Needs Urgent Overhaul, Says IDC CEO
Cornwell Muleya, CEO of Zambia’s Industrial Development Corporation (IDC),has called for an urgent revamp of the country’s railway sector to boost economic growth and improve efficiency. Speaking to the Parliamentary Committee on Transport, Works, and Supply, chaired by Hon. Joel Chibuye, Mr Muleya emphasized the critical role of rail infrastructure in lowering transportation costs and driving the development of key industries.
Challenges Facing Zambia’s Railways
Zambia’s railway system, managed by Zambia Railways Limited (ZRL), a wholly owned subsidiary of the IDC, is facing severe challenges. These include deteriorating railway tracks, inadequate maintenance, and an ageing fleet, resulting in slow transit speeds and operational inefficiencies. Mr Muleya stressed that these issues are holding back the sector’s ability to contribute meaningfully to Zambia’s economic development.
Modernisation to Standard Gauge Railway (SGR)
To address these challenges, Mr Muleya proposed a full-scale rehabilitation of ZRL, including upgrades to rolling stock, railway tracks, signalling, and telecommunication systems. He recommended transitioning to Standard Gauge Railway (SGR) standards, a move that would align Zambia’s rail network with regional advancements in countries such as South Africa, Tanzania, and Kenya.
“We need to renew the rail line to Standard Gauge Railway (SGR) standards to match developments in other countries,” Mr Muleya stated, highlighting the need for Zambia to remain competitive in the regional transport sector.
Dual Rail Lines and High-Speed Trains
Mr Muleya also advocated for the construction of a dual rail line, which would involve rehabilitating the existing track while building a parallel line to boost capacity and efficiency. He pointed to Tanzania’s recent success in unveiling its 1,800km electrified SGR, capable of speeds up to 160 km/h, as an example for Zambia to follow. Under a comprehensive rehabilitation plan, ZRL could aspire to introduce high-speed passenger trains, offering faster and more efficient travel options.
Funding the Overhaul
To finance these ambitious reforms, Mr Muleya proposed the creation of a dedicated Railway Fund, with potential funding sources including:
- A 1% railway levy on imports.
- Fuel levy refunds allocated to rail infrastructure.
- Government budgetary allocations.
“Sufficient funding is required to support infrastructure development, maintain rolling stock, and operate efficiently. Government support through the establishment of a Railway Fund is critical,” he said, emphasizing the importance of a sustainable financing model.
Why This Matters for Zambia’s Economy
Revitalizing Zambia’s railway sector is essential for reducing transportation costs and improving logistics efficiency, which would benefit industries such as mining, agriculture, and manufacturing. A modernized rail network would also enhance Zambia’s position as a regional transport hub, facilitating trade with neighboring countries and supporting economic integration within Southern Africa.
Opportunities for African Travel Agents and Investors
For African travel agents, the proposed upgrades could open new opportunities in rail tourism, particularly if high-speed passenger trains and improved infrastructure become a reality. Additionally, investors in Zambia’s transport and logistics sector could benefit from increased trade volumes and greater efficiency in goods movement, enhancing the country’s appeal as a trade partner.
Looking Ahead
With a focus on modernizing its rail network to SGR standards, increasing capacity through dual rail lines, and securing sustainable funding, Zambia is taking a proactive approach to addressing its railway sector's challenges. If implemented, these reforms could transform Zambia Railways Limited into a modern, efficient, and competitive transport provider, supporting both domestic economic growth and regional connectivity.
As Zambia looks to emulate success stories like Tanzania’s electrified SGR, the railway sector’s overhaul could become a cornerstone of the country’s economic transformation, unlocking new opportunities for trade, investment, and tourism.