The African Development Bank (AfDB) and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) have signed a letter of intent to support African railway development with cooperation starting through a feasibility study for a proposed African Rail Competence Centre.
According to the AfDB’s announcement, the partnership will focus on reducing transport costs, improving compatibility between rail systems across borders and promoting low-carbon transport.
It will also support skills transfer, vocational training and employment in the railway sector.
German development cooperation agency GIZ will implement the feasibility study, which the bank said is expected to launch by October 2026. The proposed centre will bring together training and innovation to support railway modernisation and expansion.
AfDB Infrastructure and Urban Development Director Mike Salawou and BMZ Deputy Director-General for Economic Cooperation Michael Krake signed the agreement during the inaugural African European Industry Dialogue on Railways at InnoTrans.
Salawou highlighted existing bank-supported investments, including the Lobito and Nacala corridors and East Africa’s Standard Gauge Railway programme.
The AfDB says Africa accounts for only 8-10% of the global rail network while the African Continental Free Trade Area is driving demand for cross-border freight and passenger transport.
