USD 2.18 Billion Rail Deal To Unlock Africa Trade Corridors

Zimbabwe and Zambia have formalised a USD 2.18 billion agreement to construct the 311 kilometre (km) Lion’s Den-Kafue railway line, a strategic project officials say will dramatically cut transport costs and transit times while unlocking landlocked Zambia to Indian Ocean ports and boosting critical mineral exports.

The Memorandum of Understanding was signed by Zimbabwe’s Minister of Transport and Infrastructural Development Felix Mhona and his Zambian counterpart Frank Tayali during the meeting of the Emerging Railways Properties Council of Ministers in Victoria Falls.

“This landmark agreement will boost mineral exports, especially copper and drive investment, job creation and rural development.

“The railway offers a significant reduction in transport costs and transit time,” the joint statement read.

The Cape Gauge line runs 217 km through Zimbabwe and 94 km through Zambia, from Lion’s Den via Chirundu, Makuti and Chakuti to Kafue.

It will feature 16 stations and two marshalling yards, with upgrade-readiness to Standard Gauge.

The route is 800 km shorter to Beira, 1 000 km shorter to South African port, and 500 km shorter to Dar es Salaam, directly competing with the Lobito Corridor (Angola) and the TAZARA Railway (Tanzania route).

Officials said the project “secures Southern Africa’s access to critical minerals” while “reducing road congestion and maintenance costs, shifting bulk cargo from road to rail, and improving regional supply chain resilience.”

The line links to the Beira Corridor via Harare and Machipanda but requires rehabilitation of 445 km of existing rail in Zimbabwe. Mozambique’s participation is “critical for full corridor efficiency.

Financing and execution risk remain high, with success depending on mobilising capital from China, regional and global investors.

The project aligns with Zimbabwe’s Vision 2030 and Zambia’s multi-corridor strategy, focusing on “lower logistics costs through diversification.”

Minister Mhona described the deal as a transformative moment for SADC connectivity. “This is not just a railway, it is a corridor of prosperity,” he said. His Zambian counterpart added: “We are cutting distances, not corners.”