EU, Zambia Ink €200 Million Global Gateway Agreements to Boost Lobito Corridor, Rail, Energy, and Agriculture Sectors
The European Union (EU) and the Government of Zambia have signed ten new funding agreements worth €200 million (approximately 5 billion Kwacha) aimed at promoting a holistic development approach for the Lobito Corridor.
The agreements, signed under the EU’s Global Gateway initiative, were witnessed by President Hakainde Hichilema during the EU–Zambia Lobito Corridor Business Forum held in Chongwe today.
Boosting Railway Efficiency and Connectivity
Among the key agreements is the EU’s contribution of 1.3 billion Kwacha toward the 5 billion Kwacha railway sector revitalization program. The funding aims to enhance the efficiency of Zambia Railways Limited, strengthen regulatory frameworks, and promote rail freight competitiveness and safety across the region.
Advancing Renewable Energy and Water Access
Another major agreement, worth over 1 billion Kwacha, targets the improvement of water supply systems through renewable solar energy and energy efficiency in the North-Western and Copperbelt Provinces under the Nexus Energy-Water Program.
This project will support Commercial Utilities in Solwezi, Ndola, and Chingola to improve energy autonomy, operational efficiency, and climate resilience, ensuring reliable water and energy services for communities and industries along the Lobito Corridor.
Supporting Sustainable Agriculture and Market Access
The EU is also investing €36 million in a Sustainable Agriculture and Market Access Program, which seeks to promote inclusive, climate-resilient agricultural growth. The initiative will empower smallholder farmers, enhance value chains, and improve access to local and regional markets.
Investing in Clean Energy and Mining Collaboration
In the energy sector, the EU will support the establishment of Illute, a 32-megawatt solar power project in Western Province, further contributing to Zambia’s clean energy transition.
Additionally, the Zambia Chamber of Mines and Mining Finland signed a Memorandum of Understanding (MoU) to strengthen cooperation in knowledge exchange, capacity building, and responsible mining practices.
Expanding Access to Finance and Skills Development
The European Investment Bank (EIB) and the Zambia Industrial Commercial Bank (ZICB) also signed a financing agreement aimed at enhancing access to capital for agri-food small and medium enterprises (SMEs) and smallholder farmers.
Other priority areas under the EU–Zambia partnership include:
- Education reforms worth over 1 billion Kwacha
- 150 million Kwacha to protect human rights along the critical raw materials value chain
- Support for the Green Transition toward a circular economy
- Development of skills for decent employment in artisanal and small-scale mining
These new agreements underscore the EU’s commitment to Zambia’s sustainable development, industrial growth, and green transformation, while reinforcing the strategic importance of the Lobito Corridor as a key trade and investment gateway for the region.
