AfDB and Germany Join Forces to Connect Africa Through Better Rail

Africa’s railway network represents only 8–10 percent of the world’s total, despite growing demand for cross-border freight and passenger movement across a market of more than 1.4 billion people.

The African Development Bank Group and Germany's Federal Ministry for Economic Cooperation and Development (BMZ) have signed a letter of intent to cooperate on developing Africa's railway systems, with a focus on reducing transport costs, strengthening regional connections and building the skills needed to keep networks running. The agreement brings rail infrastructure, workforce development and sustainable transport policy into a shared programme of cooperation, supporting the movement of goods and people across African borders.

Rail Cooperation Connects Trade, Training and Jobs

Mike Salawou, the Bank Group's Director for Infrastructure and Urban Development, and Michael Krake, BMZ's Deputy Director General for Economic Cooperation, signed the agreement during the inaugural African European Industry Dialogue on Railways. The dialogue formed part of InnoTrans, the International Trade Fair for Transport Technology, and was jointly organised by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Deutsche Bahn and the EU Global Gateway initiative.

The cooperation will address cross-border interoperability, helping railway systems work together more effectively, and support lower transport costs, low-carbon travel and sustainable transport policies. Skills transfer, vocational training and sustainable employment opportunities are central to the agreement, reflecting the need for a stronger local railway workforce as countries modernise and expand their networks. Work will begin with a joint feasibility study for an African Rail Competence Center, implemented by GIZ and expected to launch by October 2026, to explore bringing innovation and training together.

A Continental Market Needs Railways That Work Together

Africa's railway network represents only 8–10 percent of the world's total, despite growing demand for cross-border freight and passenger movement across a market of more than 1.4 billion people. The African Continental Free Trade Area is helping drive that demand, giving railway development a direct connection to the continent's trade ambitions and the practical challenge of moving goods between producers, businesses and customers.

In his keynote address, Salawou highlighted Bank-supported investments in 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. He set out five priorities: developing a continental market through the free trade area, introducing reforms that encourage a shift towards rail, establishing interoperable standards, using financing to attract private capital and building the competencies needed to operate completed networks. "Building a railway is half the job," he said. "Running it is the harder half."

Long-Term Partnerships Must Support Reliable Operations

Krake reaffirmed BMZ's commitment to Africa's development, placing regional connectivity and sustainable economic growth at the centre of its partnership with the Bank. He identified interoperability, skills development and other practical priorities as areas where cooperation can strengthen the railway sector, connecting the agreement's infrastructure ambitions with the people and systems responsible for delivering dependable services.

Salawou called on African governments and railway authorities to establish a clear vision, commission credible feasibility studies, introduce reforms early and provide regulatory certainty for investors. His message to European industry emphasised long-term partnerships that include local content and skills transfer, extending their contribution beyond equipment supply. Financiers were encouraged to participate during project preparation, when early decisions shape a railway's prospects, with the Bank Group offering support through guarantees, blended finance and technical assistance to help projects move towards investment and delivery.