ZDA PRIORITY SECTOR

Infrastructure & Transport Corridors

LevrAge Sector Report: Infrastructure & Transport Corridors (2025)

67K km
Road Network
$4B+
PPP Pipeline
$1.2B planned
Rail Rehab
22% only
Paved Roads
HomeSectorsInfrastructure & Corridors
67K km
Road Network
$4B+
PPP Pipeline
$1.2B planned
Rail Rehab
22% only
Paved Roads

Executive Summary

  • **Massive infrastructure gap = massive opportunity.** 67K km roads (only 22% paved), aging rail network, insufficient ports and logistics—$15B+ investment needed by 2030.
  • **North-South Corridor anchor.** Tanzania (Dar es Salaam) to South Africa—Zambia is the critical link. Government prioritizing corridor upgrades, one-stop border posts, and multimodal logistics hubs.
  • **PPP framework maturing.** Road toll concessions, rail BOT models, and SEZ infrastructure packages offer blended public-private structures with sovereign guarantees and DFI backing.
  • **Regional integration driver.** SADC, COMESA, and TFTA commitments accelerating cross-border infrastructure harmonization—Zambia positioned as Southern Africa's logistics hub.
  • **ZECS competitive advantage.** Investors with proven PPP experience, technical capacity, and DFI partnerships secure preferential access to corridor projects and sovereign-backed contracts.

ZDA Investment Landscape

Why Infrastructure Matters to Zambia

Strategic Position:

  • Central hub: Tanzania-South Africa North-South Corridor
  • 8 neighbors: Regional trade gateway for SADC and COMESA
  • Resource logistics: Mining, agriculture, energy transport needs
  • Urbanization: 45% urban (2025), targeting 60% by 2035

Government Priorities

8th National Development Plan (8NDP) Focus:

  • Rehabilitate and expand road network (67K km → 100K km)
  • Modernize rail infrastructure (TAZARA, Zambia Railways)
  • Develop multimodal logistics hubs and dry ports
  • Upgrade airports and aviation infrastructure
  • Enhance urban transport and mass transit systems

Investment Incentives & Policy Framework

Public-Private Partnership (PPP) Framework:

  • Road toll concessions: 25-30 year BOT contracts
  • Rail rehabilitation: DBFOM (Design-Build-Finance-Operate-Maintain)
  • Logistics hubs: Land lease + anchor tenant guarantees
  • Sovereign guarantees: Available for strategic corridor projects
  • Tax incentives: 5-10 year corporate tax holidays for infrastructure
  • DFI support: AfDB, World Bank, IFC, China EXIM backing

Priority Infrastructure Projects:

  • North-South Corridor road and rail upgrades
  • Link Zambia 8000 project (road rehabilitation)
  • TAZARA railway rehabilitation
  • Dry port and logistics hub development
  • Airport modernization (KKIA, Ndola, Livingstone)
  • Urban mass transit systems (Lusaka, Copperbelt)

Sector Statistics

  • Road Network: 67,671 km (only 22% paved)
  • Rail Network: 2,157 km (aging, needs rehabilitation)
  • Airports: 8 international, 100+ airstrips
  • Border Posts: 35 (targeting one-stop automated systems)
  • PPP Pipeline: $4B+ in infrastructure projects
  • FDI Target: $5B+ in transport and logistics (2025-2030)

ZECS Readiness Requirements

To be competitive for PPP contracts, corridor projects, and infrastructure tenders:

Regulatory & Compliance Pathway (20% of ZECS score)

What you need
  • PPP license or consortium registration
  • Environmental and Social Impact Assessment (ESIA)
  • Technical capacity certification (engineering, construction)
  • Financial close documentation (DFI letters of interest)
  • Land acquisition and right-of-way clearance plan
Red flags
  • No proven PPP track record
  • Missing ESIA baseline studies
  • Unclear land tenure or right-of-way issues
  • Incomplete resettlement and compensation plans
Best practices
  • Engage with Road Development Agency (RDA) early
  • Partner with established Zambian construction firms
  • Secure DFI backing before bid submission
  • Plan for community consultations and local hiring

Local Partner Fit (20% of ZECS score)

What you need
  • Zambian construction or engineering partner
  • Local content plan (30%+ materials and labor)
  • Skills transfer and technical training program
  • Community benefit-sharing (employment, services)
  • Supply chain linkages (cement, aggregates, steel)
Best practices
  • Co-bid with Grade 1 Zambian contractors
  • Engage local suppliers for materials
  • Create apprenticeship programs for engineers/technicians
  • Support community infrastructure (schools, clinics)

Financial Preparedness (15% of ZECS score)

What you need
  • Bankable feasibility study (traffic, revenue projections)
  • CapEx breakdown and financing plan
  • DFI engagement (AfDB, World Bank, China EXIM, IFC)
  • Performance bond and completion guarantees
  • Revenue risk assessment and mitigation plan

LevrAge Facilitation Pathway

Phase 1: Entry Strategy (90-120 days)

Our Role:

  • Map PPP pipeline and tender opportunities
  • Identify suitable joint venture partners (construction, engineering)
  • Assess project bankability and risk allocation
  • Facilitate introductions to RDA and Ministry of Infrastructure

Deliverables:

  • Infrastructure PPP roadmap
  • Partner long-list and due diligence
  • Regulatory and tender timeline

Phase 2: Stakeholder Engagement (120-240 days)

Our Role:

  • Coordinate meetings with RDA, RFA (Road Fund Agency), and Ministry
  • Facilitate community consultations and land acquisition planning
  • Connect with DFIs for project finance
  • Arrange technical due diligence and site visits

Phase 3: Deal Structuring (240-480 days)

Our Role:

  • PPP bid preparation and submission support
  • Financial model review and optimization
  • DFI syndication and blended finance structuring
  • Contract negotiation and financial close support

Typical Timeline: 24-48 months from RFQ to financial close

Active Opportunities

Featured Project: Link Zambia 8000 Road Rehabilitation

Investor: International infrastructure consortium
Scope: 2,000+ km road rehabilitation and upgrading
Location: National highways (North-South Corridor priority)
Stage: PPP structuring
Investment: $1.8B
Systemic Value Score: 91% (Transformational)

Why It Matters:

  • Critical North-South Corridor connectivity
  • 25-year toll concession model
  • Sovereign guarantee and DFI backing
  • 5,000+ construction jobs
  • Reduces logistics costs by 30%+

ZECS Status: In Process (targeting Platinum tier)


Featured Project: Dry Port & Logistics Hub Development

Investor: Logistics and warehousing consortium
Facility: Multimodal dry port (rail, road, air interface)
Location: Lusaka (near KKIA)
Stage: Land allocated, financing
Investment: $250M
Systemic Value Score: 84% (Catalytic)

Why It Matters:

  • Regional cargo aggregation and distribution
  • Customs clearance and bonded warehousing
  • Cold chain and specialized storage
  • 1,500+ logistics jobs
  • Reduces port dwell times by 40%

ZECS Status: Verified (Gold tier)

Sector Outlook & Trends

2025-2030 Opportunities

Road Infrastructure

  • Highway rehabilitation and expansion
  • Toll road concessions
  • Urban road and drainage systems
  • Bridge construction and rehabilitation

Rail Infrastructure

  • TAZARA railway rehabilitation
  • Zambia Railways modernization
  • Mining railway spurs and sidings
  • Urban light rail and metro systems

Logistics Infrastructure

  • Dry ports and inland container depots
  • Bonded warehouses and free zones
  • Cold chain facilities
  • Truck stops and weigh stations

Aviation Infrastructure

  • Airport terminal expansions
  • Runway rehabilitation and extensions
  • Cargo handling facilities
  • Air traffic control upgrades

Key Success Factors

Secure DFI backing early (reduces political and revenue risk)
Partner with local contractors (Grade 1 firms = credibility)
Design for maintainability (O&M capacity is critical)
Plan for community engagement (land acquisition requires buy-in)
Understand traffic/revenue models (overestimation = project failure)

Next Steps

For Investors

For Partners

Sources & References
  • Zambia Development Agency (ZDA): Infrastructure investment profiles
  • Road Development Agency (RDA): PPP pipeline and tender schedules
  • Ministry of Infrastructure and Housing Development: Sector policy
  • Road Fund Agency (RFA): Toll road financing mechanisms
  • Zambia Railways Limited: Rail rehabilitation plans
  • LevrAge Resources: Zambia Investment Roadshow 2025 Results, ZECS Methodology

Disclaimer

This sector brief is provided for informational purposes and reflects publicly available data from ZDA and government sources. It does not constitute investment advice, legal guidance, or an endorsement by the Zambia Development Agency or Government of Zambia.

Last Updated: October 12, 2025
Contact: LevrAge Strategy & Solutions | info@levrage.solutions

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