The African Development Bank Group and Germany's Federal Ministry for Economic Cooperation and Development (BMZ) have agreed to cooperate on developing Africa's railway systems, with the partnership initially focusing on a feasibility study for an African Rail Competence Center.
Source: African Development Bank Group
The two institutions signed a letter of intent (LOI) establishing a framework for cooperation during the inaugural African European Industry Dialogue on Railways, held as part of the International Trade Fair for Transport Technology, InnoTrans.
Mike Salawou, African Development Bank Group director for Infrastructure and Urban Development, signed on behalf of the Bank, while BMZ Deputy Director General for Economic Cooperation Michael Krake signed for the German ministry.
The cooperation will focus on reducing transport costs, improving cross-border interoperability and supporting lower-carbon transport solutions. It will also cover sustainable transport policies and skills development, vocational training and employment opportunities in the railway sector.
Rail competence centre planned
The first initiative under the cooperation framework will be a joint feasibility study for an African Rail Competence Center, to be implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and expected to launch by October 2026.
The proposed centre is intended to bring together innovation and training to support the modernisation and expansion of Africa's railway systems.
The partnership comes as demand for cross-border freight and passenger movement grows across the continent. Africa's rail network currently accounts for only 8% to 10% of the world's total rail network, while the African Continental Free Trade Area (AfCFTA) is creating greater demand for connections between markets across a continent of more than 1.4 billion people.
Interoperability remains a priority
Speaking at the industry dialogue, Salawou highlighted African Development Bank-supported railway investments including the Lobito Corridor, the Standard Gauge Railway programme in East Africa, the Nacala Corridor, Algeria's North-South Rail Corridor, Morocco's high-speed rail system and urban rail projects in Senegal and Nigeria.
He identified five priorities for Africa's rail sector: developing a continental market driven by AfCFTA, shifting more transport activity between modes, establishing interoperable standards, mobilising financing that can attract private capital, and developing the skills required to operate railway networks once they are built.
“Building a railway is half the job,” he said. “Running it is the harder half.”
The emphasis on interoperability reflects one of the challenges facing cross-border rail development, where differences in technical standards, operating systems and skills can limit the effectiveness of infrastructure that crosses national borders.
Germany backs skills development
Krake said Germany's cooperation with African partners would focus on connectivity and sustainable development, including interoperability and skills development.
“BMZ is committed to working with our African partners to strengthen regional connectivity and support sustainable economic development. 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,” he said.
The cooperation is also intended to strengthen local capabilities within the railway sector through vocational training and skills transfer, alongside investment in infrastructure.
Focus shifts to implementation
Salawou called on African governments and railway authorities to establish clear sector priorities, undertake credible feasibility studies and provide investors with greater regulatory certainty.
He also called on European industry to support longer-term partnerships that include local content and skills transfer, rather than focusing only on supplying equipment.
For financiers, he said involvement during the project preparation stage would be important, with the African Development Bank able to support projects through guarantees, blended finance and technical assistance.
The proposed Rail Competence Center feasibility study will be an early test of how the new cooperation framework can translate these priorities into practical support for Africa's railway sector.
