Global demand for critical minerals is expected to increase by more than threefold by 2030, and Zambia, with its abundant resources, is poised to contribute significantly to meeting this demand. Additionally, Zambia has the potential to harness 6 GW of hydropower, 2.3 GW of solar energy, and 3 GW of wind energy, positioning it as a future regional power exporter. To facilitate this, the landlocked nation is improving its connectivity infrastructure by modernizing railways, building roads, and upgrading its electrical grid to enhance regional connections.
The Lobito Corridor
The U.S. and EU have joined forces with the African Development Bank and Africa Finance Corporation, committing over one billion dollars to Phase 1 of the Lobito Corridor project. The 1,300 km railway project entails the construction of almost 563 km of rail line in Zambia, along with hundreds of kilometers of feeder roads, linking the southern part of the Democratic Republic of the Congo (DRC) and the northwestern part of Zambia to regional and global markets via Angola’s Port of Lobito. This substantial investment has already spurred significant developments, such as the upgrade of the Benguela railway, the facilitation of solar energy initiatives, and the expansion of 5G mobile access. Phase 2 will further extend the corridor into Zambia, offering more opportunities for businesses to invest in the country.
Southern African Power Pool
The Southern African Power Pool (SAPP) and investment management company Climate Fund Managers launched a $1.3 billion Regional Transmission Infrastructure Financing Facility (RTIFF) in March 2024 to build high-voltage transmission lines connecting countries in the region. The facility targets a first closing of $500 million by 2025 – raised from public and private investors – and a final closing of $1.4 billion 24 months after. Approximately $20 million will be provided through SAPP commitments. RTIFF enables public-private sector collaboration to roll out new transmission lines at scale, thereby connecting new members to the SAPP network while strengthening existing connections.
Since its establishment in 1995, SAPP has worked towards creating a common electrical grid and market, addressing the lack of connections between SAPP’s 12 members. As a member, Zambia has benefited from the network. Going forward, the country is poised to see increased investment into the country as part of SAPP’s efforts to advance regional power trade.
Tazara Railway
China launched a $1 billion initiative in February 2024 to renovate the Tanzania-Zambia Railway (TAZARA) – linking Zambia’s copper belt with the Tanzanian port of Dar es Salaam. Representing part of its Belt and Road Initiative, the refurbishment will be executed through a public-private partnership. State-owned China Civil Engineering Construction Corporation has dispatched a task force to inspect the railway and prepare a revitalization proposal. TAZARA serves to support Zambian exports, and will offer even greater strategic value by supporting revenue generation and GDP growth in the country.
Central Africa Toll Road
The Kasomeno-Kasenga-Chalwe-Kabila-Mwenda Road – linking the DRC to Tanzania’s coast via Zambia’s Nakonde border and featuring a 345-meter bridge over the Luapula River – was launched in 2023. The project – estimated to cost $850 million – aims to create the shortest route from the DRC to the Indian Ocean, facilitating critical minerals exports. Over 400 trucks are expected to use the bridge daily, enhancing trade links between Luapula province in Zambia and Lubumbashi in the DRC.
Zambia, the DRC, and Hungarian construction firm GED Africa are collaborating on the project. The road will provide Zambia with a vital connection to Tanzania’s Dar es Salaam port, enhancing transport capacity, safety, and reducing costs. Once completed, it will shorten the road route by up to 500 km, boosting international trade and economic benefits for the region.
