Transport

ZAMBIA TRANSPORT SECTOR KEY FIGURES 2025, GDP, GROWTH, INVESTMENT

Transportation and storage contributed 14.1% to Zambia’s GDP in 2025, the third largest sector in the economy, growing 15.3% in real terms as the government pursued a USD 1.4 billion revitalisation of the TAZARA railway alongside continued expansion of a 67,671 kilometre national road network.

The TAZARA agreement, signed with Tanzania and China in September 2025, hands a 31 year freight concession to China Civil Engineering Construction Company, the country’s single largest transport investment and the most significant change to Zambia’s rail capacity since the line opened 50 years ago.

Sector Size

Transportation and storage contributed 14.1% of Zambia’s nominal GDP in 2025, or ZMW 102.4 billion of the ZMW 725.6 billion total, up from ZMW 82.3 billion in 2024^[1]. The sector grew 15.3% in real terms over the year, among the fastest-growing major sectors in the economy, reflecting Zambia’s position as a landlocked regional trade and transit hub for neighbouring markets including the Democratic Republic of Congo^[1].

Rail Corridors: TAZARA and Lobito

Zambia, Tanzania and China signed a USD 1.4 billion TAZARA Revitalisation Agreement on September 29, 2025, under which China Civil Engineering Construction Company will rehabilitate more than 1,800 kilometres of rail track running from New Kapiri Mposhi in Zambia to Dar es Salaam in Tanzania, along with maintenance workshops, quarries and auxiliary facilities^[2]. Of the USD 1.408 billion total project cost, USD 1.17 billion is initial investment and USD 238 million is re-investment over the life of the project^[2].

The concession runs 31 years and covers only the freight side of TAZARA; the passenger operation remains with the Zambian government^[2]. The concessionaire pays a fixed fee of USD 15 million annually plus a variable fee equal to 2% of gross freight revenue, from the first year of operations through year 31^[2]. Zambia’s Minister of Transport and Logistics, Frank Tayali, toured the Zambian side of the TAZARA corridor from November 4 to 6, 2025, to brief TAZARA employees on what the concession means for them^[2].

On the west coast side, Zambia has also signed a concession agreement for the Zambia-Lobito Railway Project, which will connect Zambia to the port of Lobito in Angola^[5]. The first draft of the feasibility study has been completed, and environmental and social studies, contractor selection and capital raising are underway^[5]. Together with TAZARA, the government frames the Lobito project as positioning Zambia as a transport hub connecting the east and west coasts of Africa^[5].

Road Network

The Road Development Agency, established under the Public Roads Act No. 12 of 2002, manages a national road network of 67,671 kilometres across all ten of Zambia’s provinces^[3]. Current projects underway include maintenance works on the Great East Road ahead of a full rehabilitation, a K177.6 million contract to expand the Shimabala toll plaza, the Nchelenge to Chienge road upgrade at 11% completion, and the Kasomeno to Mwenda project at 50% progress^[3].

Since 2022, Government has signed 10 Public Private Partnership road agreements worth a combined USD 1.7 billion, covering more than 1,500 kilometres, with more expected by the end of the year^[5]. The first, the Chingola-Kasumbalesa Road, was completed in December 2024^[5]. The flagship 327 kilometre Lusaka-Ndola Dual Carriageway is 45% complete and is expected to finish ahead of its official August 2027 completion date, with its 45 kilometre Luanshya-Fisenge-Masangano Road section already open to traffic^[5]. Other PPP projects underway include the Ndola-Sakania-Mufulira Road, Kasomeno-Mwenda and its border post, Lumwana-Kambimba, and Katete-Chanida, and a concession has been signed for the rehabilitation of 371 kilometres of the Mutanda to Kaoma via Kasempa Road^[5]. Government-financed rehabilitation is also underway or complete on the 210 kilometre Chinsali-Nakonde Road, the Mongu-Limulunga and Chibuluma roads, the Monze-Niko Road at 74% completion, the Lusaka-Mongu Road at 24%, and the Batoka-Maamba Road at 39%^[5]. Under the Improved Rural Connectivity Project, 2,400 kilometres of feeder roads have been rehabilitated against a target of 4,200 kilometres, alongside a separate target to upgrade 808 kilometres of feeder roads to gravel standard^[5].

Air, Water and Border Infrastructure

In air transport, Government has upgraded Kasama Airport and rehabilitated the Chipata, Mongu and Solwezi airports since 2021, with work underway at Mansa and Mfuwe and construction of Choma, Kasaba Bay and Nakonde airports due to start in 2026^[5]. In water transport, Nchelenge Harbour has been completed and Samfya Harbour is 98% complete, with further harbour development planned at Siavonga, Chipepo and Sinazongwe^[5]. Border infrastructure has also been upgraded: the Kazungula, Mwami-Mchinji and Nakonde borders are now one-stop border posts, Chirundu’s facilities are being upgraded, Katima Mulilo and Kasumbalesa are earmarked for one-stop status, and work continues at the Chanida, Sakania, Sikongo and Zombe posts, largely financed through Public Private Partnerships^[5].

Policy Framework

Zambia’s National Transport Policy is undergoing a Mid-Term Review: the government signed a contract with Rom Transport Engineering on May 26, 2026 to review and update the Policy, with the Ministry of Transport and Logistics saying the update needs to incorporate electric vehicle technology as Government takes the lead in its adoption in the country^[6]. The review was expected to take eight months from the signing date^[6].

Investment Opportunities

The TAZARA and Lobito rail concessions point to the scale of opportunity in Zambia’s transport corridors: a single TAZARA freight concession worth USD 1.4 billion, running 31 years, on a rail line that has operated below capacity for years, alongside a west-coast rail link to Lobito still raising capital and selecting a contractor^[2][5]. On the road side, the USD 1.7 billion committed across 10 PPP agreements since 2022, and the Road Development Agency’s continuing pipeline of upgrade and expansion projects, indicate where further contracting and investment activity is concentrated^[3][5]. The US Department of State notes that airport services providers operating in Zambia must have at least 10% Zambian shareholding, one of the sector-specific equity requirements foreign investors need to plan around^[4].

Last Update: August 2026

References

1. Zambia Statistics Agency, Final Annual GDP release, sectoral data
2. Ministry of Transport and Logistics, TAZARA: New Life, New Hope
3. Road Development Agency
4. US Department of State, 2025 Zambia Investment Climate Statement
5. Ministry of Finance and National Planning, 2026 Budget Speech
6. Ministry of Transport and Logistics, Government, Rom Engineering Sign Mid-Term Review Contract on National Transport Policy