The study on the challenges and opportunities of financing higher education in Zambia was motivated by the fact that educational financing was apparently becoming one of the major challenges governments were facing causing academic unrests from time to time (Altbach and Peterson, 1999, World Bank, 2010). The study focused on three objectives and these were: To assess the challenges of financing higher education, to establish financing opportunities for higher education and to ascertain a cost effective financing model for higher education. The focus of the study was on the two major public universities in Zambia. The study used a descriptive case study research design in order to deepen the perception and get a clear insight of the challenges and opportunities of financing higher education. Data for the study was collected through examination of records, documents and study reports of individuals and organizations. The findings of the study were that funding higher education in Zambia was challenging. For instance, it was clear that Zambia and the country’s low Gross Domestic Product (GDP) current overdependence on mining and limited Tax funding were rife amid the overemphasized increasing enrollments and unit cost of higher education; thus, universities relying on public funds have often compromised on quality. However, the provision of higher education in Zambia was now becoming more diverse due to the growing number of private institutions engaged in offering university education across the country. The study thus recommended that; 1. The government through the Ministry of Higher Education should review the time necessary for students to complete certain programmes in order to create additional space for more students to enroll and reduce the current cost of higher education. 2. The government through the Ministry of Higher Education should engage into citizen awareness campaigns on the importance of cost sharing in higher education provision. 3. The government through the Ministry of Higher Education should revise the criteria for awarding bursaries to vulnerable students for example by working with local community leaders to determine those that are actually vulnerable and in need of assistance to pursue higher education. 4. The government through the Ministry of Higher Education should promote as much as possible delivery of higher education by private institutions. The government through the Ministry of Higher education should help public institutions of higher learning to broaden their horizons by redesigning their academic programmes so that they embrace electronic mode of organization and delivery of tertiary education in order to reach out to international students at a much lower cost.