News Infrastructures

$1.5B Botswana-Zambia Rail Plan Seeks to Reshape Regional Trade

$1.5B Botswana-Zambia Rail Plan Seeks to Reshape Regional Trade
Tuesday, 29 July 2025 14:20

After years of discussion, the plan for a rail connection between Botswana and Zambia is now entering a critical phase. This segment's development is part of a broader geoeconomic competition among regional corridors.

The Mosetse-Kazungula-Livingstone railway project, which aims to link Zambia with Botswana, is entering a significant phase with the signing of a memorandum of understanding with Turkish company Eksen Group. This agreement provides a framework for collaboration to facilitate the project's planning, preparation, and implementation. This railway could accelerate Southern Africa's regional integration.

Planned over 430 kilometers, the future railway line aims to position both countries as reliable alternatives to trade routes currently dominated by South Africa.

A Strategic Repositioning

The Kazungula Bridge, inaugurated in 2021 and spanning 923 meters, crosses the Zambezi River at the border between Botswana and Zambia. It already serves as a key transit point for road transport in the region. However, its logistics potential remains underused due to a lack of a connected rail network on both sides.

The new corridor, which the two states will co-finance, is expected to complement existing and planned routes in the region. These include the South Africa–Mozambique corridor with extensions into Zimbabwe, or the Beira corridor linking Malawi, Zambia, and Zimbabwe to Mozambique’s ports. There is also the Trans-Kalahari network that aims to connect Namibia with Botswana.

Ultimately, these various rail segments will interlink with lines under development in East Africa. Examples include the Lobito corridor, Tanzania’s Standard Gauge Railway projects with its neighbors Burundi, Rwanda, the Democratic Republic of the Congo, and Zambia, and those underway between Uganda and Kenya.

Toward a Diversification of Logistics Corridors

Currently, a large share of imports and exports for landlocked Southern African Development Community countries such as Zambia, Botswana, and Zimbabwe still passes through South African ports, especially Durban. However, congestion, rising logistics costs, and recent disruptions linked to internal crises like strikes are prompting these countries to seek more stable alternatives.

Kazungula could thus become a strategic link in redirecting flows eastward to Beira in Mozambique and Dar es Salaam in Tanzania, or westward to Walvis Bay in Namibia. It would offer a connected, multimodal, and cross border route. For Botswana’s authorities, the railway is expected to reduce freight transport costs, attract investment, and boost special economic zones.

Zambia aims to secure its mining export routes for copper and cobalt, and reduce its vulnerability to road transport risks. The Kazungula connection will strengthen options toward Asian markets via the Indian Ocean while facilitating intra-regional trade.

Several challenges remain, notably the project’s estimated $1.5 billion cost and its economic viability. According to experts, the project requires a freight volume of 7.5 million tonnes per year to break even, while current road traffic over the bridge stands at 3.1 million tonnes.

Added to this are regulatory harmonization constraints and the need for inter-state coordination. The memorandum of understanding signed with Turkish firm Eksen Group marks a step forward but does not yet guarantee the project’s realization or viability.

Henoc Dossa

On the same topic
• Belgian investor Victoria Equity injected $6.2M loan, proposing share conversion that would dilute State control.• Minister Bussa urges matching...
After years of discussion, the plan for a rail connection between Botswana and Zambia is now entering a critical phase. This segment's development is part...
• The terminal will add 1,000 meters of quay, a 4,000-square-meter office complex, warehouses, workshops, and 120,000-ton grain silos. • Phased...
South Africa granted Transnet a new 94.8 billion rand ($5.3B) guarantee to aid its recovery. Rail freight dropped to 152M tons in 2023/24, down...
Most Read
01

The fintech leaders primarily emerge from Nigeria, Egypt, Kenya, and South Africa, nations recognize...

10 African Fintech Unicorns and Upstarts Make World’s Top 300
02

By linking ECOWAS countries, the project enhances regional digital infrastructure, which is crucial ...

Liberia, ECOWAS & World Bank collaborate on second West Africa submarine cable plan
03

As digital technologies reshape Africa's job market, digital skills are becoming crucial for youth i...

Africa Faces 'Critical' Digital Skills Gap as Youth Population Booms, UN Warns
04

Non-bank institutional investors, though still a minority, are increasing their presence in the West...

Non-Bank Investors Gain Foothold in WAEMU Sovereign Debt Market
05

Highlights: • $20 billion in investment pledged by Chinese firms for agriculture, mining, auto...

Nigeria Secures $20 Billion in Chinese Investment to Drive Industrial Growth
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.