The AfDB signed a letter of intent with the German Federal Ministry for Economic Cooperation and Development (BMZ) during the inaugural African-European Industry Dialogue on Railways.
AfDB Infrastructure and Urban Development Department Director Mike Salawou and BMZ Deputy Director-General for Economic Cooperation Michael Krake signed the agreement.
The partnership will focus on improving cross-border interoperability, promoting low-carbon transport and embedding sustainable transport policies.
AfDB and BMZ will also seek to build a stronger African railway labour market through vocational training, skills transfer and sustainable employment.
Cooperation will begin with a feasibility study for an African Rail Competence Centre. The German Agency for International Cooperation will implement the study, which is expected to begin by October 2026.
The proposed Centre will combine innovation and training to support the modernisation, expansion and operation of railway networks across Africa.
Africa’s rail network accounts for only 8% to 10% of the global total. However, the African Continental Free Trade Area is increasing demand for cross-border freight and passenger services across a market of more than 1.4 billion people.
“Building a railway is half the job,” Salawou said. “Running it is the harder half.”
Salawou identified five priorities: an integrated continental market, policies encouraging a shift towards rail, interoperable standards, financing that mobilises private capital and the skills required to operate railway systems.
Existing AfDB-supported investments include the Lobito Corridor, East Africa’s Standard Gauge Railway programme, the Nacala Corridor and Algeria’s North-South Rail Corridor.
AfDB has also supported Morocco’s high-speed rail system and urban railway projects in Senegal and Nigeria.
“BMZ is committed to working with our African partners to strengthen regional connectivity and support sustainable economic development,” Krake said.
“Together with the African Development Bank, we will advance practical cooperation on interoperability, skills development and other priorities that help build a stronger railway sector.”
Salawou urged African governments to produce credible feasibility studies, implement reforms early and provide regulatory certainty to investors.
European companies should offer long-term partnerships, local content and skills transfer rather than only supplying equipment, Salawou said.
The AfDB said it will support railway development through guarantees, blended finance and technical assistance.
–AfDB/ChannelAfrica–
