AfDB and Germany Launch Partnership to Expand Africa’s Railway Infrastructure
The African Development Bank Group (AfDB) and the German Federal Ministry for Economic Cooperation and Development (BMZ) have signed a letter of intent to cooperate on developing Africa’s railway systems and strengthening regional economic integration.
The partnership will focus on reducing transport costs, improving cross-border interoperability, promoting low-carbon transport solutions and supporting sustainable transport policies.
The two institutions will also work to strengthen Africa’s railway workforce through skills transfer, vocational training and sustainable employment opportunities.
Cooperation will begin with a feasibility study for an African Rail Competence Centre, to be implemented by German development cooperation organisation GIZ.
The centre is intended to combine innovation and training to support the modernisation and expansion of Africa’s railway networks.
Africa’s rail network currently represents only 8% to 10% of the global total, while the African Continental Free Trade Area (AfCFTA) is driving increasing demand for cross-border freight and passenger transport across a market of more than 1.4 billion people.
AfDB Infrastructure and Urban Development Director Mike Salawou identified five priorities for the sector: developing a continental market through AfCFTA, encouraging a shift towards rail, establishing interoperable standards, mobilising private capital and developing the skills required to operate railway networks.
He called on African governments and railway authorities to establish clear strategies, undertake credible feasibility studies, implement reforms early and provide regulatory certainty to investors.
The AfDB said financiers should also become involved during the project preparation stage, with the Bank able to support projects through guarantees, blended finance and technical assistance.
The Bank is already supporting major rail initiatives across the continent, including the Lobito Corridor, East Africa’s Standard Gauge Railway programme, the Nacala Corridor, Algeria’s North-South Rail Corridor, Morocco’s high-speed rail system and urban rail projects in Senegal and Nigeria.
BMZ Deputy Director-General for Economic Cooperation Michael Krake said the partnership would support stronger regional connectivity and sustainable economic development through practical cooperation in areas including interoperability and skills development.
