AfDB, Germany Partner to Develop Africa’s Railway Network

The African Development Bank Group and Germany have agreed to cooperate on expanding Africa’s railway systems, improving cross-border connectivity and supporting the integration of regional transport networks.

The two institutions signed a letter of intent during the inaugural African European Industry Dialogue on Railways, held as part of InnoTrans, an international trade fair for transport technology. Mike Salawou, AfDB’s director for infrastructure and urban development, signed for the bank, while Michael Krake, deputy director general for economic cooperation at Germany’s Federal Ministry for Economic Cooperation and Development, signed for the German side.

The partnership will focus on reducing transport costs, improving interoperability between national railway systems and supporting lower-carbon transport. It will also promote skills transfer, vocational training and employment in Africa’s railway industry.

The cooperation is expected to begin with a feasibility study for an African Rail Competence Center, to be implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit, or GIZ. The centre is expected to launch by October 2026 and will combine training and innovation aimed at modernising and expanding the continent’s rail infrastructure.

Salawou said the bank’s existing investments include the Lobito Corridor, East Africa’s Standard Gauge Railway programme, the Nacala Corridor, Algeria’s North-South Rail Corridor, Morocco’s high-speed rail network and urban rail projects in Senegal and Nigeria.

Africa accounts for only 8 to 10 percent of the world’s railway network, according to the bank. Demand for cross-border freight and passenger transport is expected to increase as the African Continental Free Trade Area deepens economic integration across a market of more than 1.4 billion people.

Salawou identified five priorities for Africa’s railway sector: developing a continental rail market supported by the AfCFTA, encouraging a shift towards rail transport, establishing interoperable standards, attracting private capital and developing the skills required to operate railway networks.

“Building a railway is half the job,” Salawou said. “Running it is the harder half.”

Krake said Germany would work with African partners on regional connectivity and sustainable economic development, with cooperation covering interoperability, skills development and other areas of railway-sector development.

The initiative also places emphasis on the conditions required to attract private investment into railway infrastructure. Salawou called on African governments and railway authorities to establish clear development plans, conduct credible feasibility studies, undertake regulatory reforms early and provide investors with greater certainty.

He also called on European companies to pursue longer-term partnerships involving local content and skills transfer, while urging financiers to participate during the project-preparation stage.

The AfDB said it would support such efforts through guarantees, blended finance and technical assistance.

Source: FSX Business News