Zim, Zambia Rail Deal Targets Lower Trade Costs

New Ziana > Local News > Zim, Zambia Rail Deal Targets Lower Trade Costs

Victoria Falls, (New Ziana)– Zimbabwe and Zambia have signed a Memorandum of Understanding (MoU) for a cross-border railway line, signaling a shift from infrastructure expansion to cutting regional trade and transport costs.

The agreement, signed by Zimbabwean Minister of Transport and Infrastructural Development Felix Mhona, and Zambian counterpart Frank Tayali, paves the way for the development of a 311-kilometre railway line linking Kafue in Zambia to Lion’s Den near Chinhoyi in Zimbabwe.

While previous announcements have focused on the scale of the project, officials say the real value now lies in its potential to reshape regional trade dynamics by reducing transport costs and increasing corridor competition.

“This particular link is so unique in that it literally offers the shortest route to the seaport. Increased corridor options are already forcing ports in the region to cut fees. That competitiveness will ultimately reduce commodity prices,” he said.

The proposed line stretching 94 km in Zambia and 217 in Zimbabwe will pass through key tourism zones, including Chirundu, Hurungwe, Makuti and Lion’s Den, while connecting districts such as Mazabuka and Chikankata in Zambia.

It will follow the existing highway corridor and adopt the Cape Gauge standard, with future provisions for upgrading to Standard Gauge.

Beyond the engineering scope, the project is being positioned as a catalyst for regional integration, particularly along the Beira Corridor, where it is expected to cut transit distances by up to 800 km compared to the traditional North-South route.

Mhona said the agreement marks a turning point in how African countries approach infrastructure development prioritising collaboration over competition.

“We are not looking at our countries in isolation. We are looking at the entire corridor. Connectivity is of paramount importance, and this has been a long-awaited project. Today’s signing shows that we are ready to work together and execute this mandate with speed,” he said.

The MoU also comes amid renewed efforts by both governments to unlock broader economic value from their rail systems.

On the sidelines of the signing, the two Ministers received a report on the Pan-African Minerals Development Company (PMDC), which they will present to their respective Presidents.

The PMDC initiative centres on the joint exploitation of mineral rights in South Africa held by the National Railways of Zimbabwe (NRZ) and Zambia Railways Limited (ZRL), under their shared entity, Emerging Railways Property Holdings.

Analysts say this signals a growing recognition that rail infrastructure should be integrated with resource development strategies to maximise returns.

Tayali stressed that the success of the railway project will depend on expanding cooperation beyond the two countries, particularly with Mozambique, which hosts the Port of Beira.

“We must now work very closely to create this very unique corridor. Even though the cost may sound huge, over US$2 billion, but if we combine efforts as three countries, the project becomes achievable,” he said.

He added that the next phase will involve setting up a joint secretariat and mobilising funding to fast-track implementation.

For Zimbabwe, the project aligns with efforts to modernise transport networks and ease doing business, including upgrades at the Chirundu Border Post and key corridors, while for Zambia it reinforces a shift toward diversifying trade routes beyond traditional corridors.

The latest development suggests that the race among Southern African corridors is no longer just about geography, but about efficiency and affordability, factors that could ultimately determine which routes dominate regional trade flows in the years ahead.

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