By Angela Moonga
The government spent K100 million from the November, 2025 budgetary disbursement towards the recapitalisation of Zambia Railways.
In a press release by the Ministry of Finance today, Secretary to Treasury Felix Nkulukusa justified the recapitalisation as a a pivotal investment in modernising the country’s transport and logistics architecture.
He stated that rail was the most efficient and cost-effective way to move bulk cargo, and for a land-linked economy like Zambia, a dependable rail network is essential to lowering logistics costs, protecting highways, and improving competitiveness across mining, agriculture and manufacturing.
“This national priority gained renewed momentum in November 2025 when the Government and the European Union signed a €50 million grant dedicated exclusively to ZRL. The financing will overhaul critical sections of track and modernise signalling and communication systems—upgrades necessary for safe, faster and more reliable train operations. These improvements will also reduce derailments, improve scheduling, raise operating speeds and restore confidence in rail as a serious freight option,” he stated. “The Government policy places ZRL at the centre of long-term economic transformation. A stronger rail network will cut the burden on roads, reduce transport costs for industry, and improve the movement of copper, agricultural commodities and industrial goods. As rehabilitation progresses, Zambia is rebuilding an asset vital to national growth, positioning the country as a more efficient and competitive link in regional trade systems.”
Altogether, K15.56 billion was disbursed last month to finance public service delivery.
“Of this amount, K2.43 billion was allocated to transfers, subsidies and social benefits, while K2.04 billion supported the implementation of government programmes and general operations. A total of K1.2 billion was spent on capital expenditure. Furthermore, K4.63 billion was released for the public service wage bill (Personal Emoluments) for various public service workers as well as overseas allowances for diplomats in missions abroad. An additional K5.26 billion was spent on debt service—domestic and external—and arrears,” Nkulukusa stated. “The release of funds for debt service and arrears, comprising K2.62 billion for domestic debt service, K2.42 billion for external debt service, and K218.23 million for arrears dismantling, remains critical even in the wake of the recent credit rating upgrades by Standard & Poor’s Global Ratings and Fitch Ratings Agency. The sovereign rating upgrades reflect renewed international confidence in Zambia’s fiscal management, yet that confidence must be sustained through predictable repayment behaviour and ongoing fiscal discipline. We remain committed to debt service to prevent the accumulation of new arrears, preserve the gains made through debt restructuring, and strengthen the country’s standing with creditors, investors and rating agencies.”
He stated that K2.43 billion was released for transfers and subsidies.
“Key expenditures included K700 million for the Farmer Input Support Programme (FISP); K717.37 million for the Constituency Development Fund (CDF) to support infrastructure projects, bursaries, loans and grants to eligible beneficiaries; and K817.16 million to Grant-Aided Institutions—including hospitals and universities—to sustain their operations. The Treasury also released K139.14 million for pension payments to retirees and K55.69 million for the Food Security Pack Programme,” stated Nkulukusa. “General Operations: A total of K2.04 billion was released to facilitate programme implementation and general operations across Government institutions. Notable allocations included K412 million for the procurement of essential drugs and medical supplies; K400 million for the voter registration exercise; and K100 million for the recapitalisation of Zambia Railways Limited (ZRL). In the same month, the Treasury released K1.2 billion for capital expenditure. Of this amount, K613.42 million went towards road infrastructure, with the remainder supporting capital programmes under the Ministries of Education, Tourism and Defence.”
