The African Development Bank Group has signed a letter of intent with the German Federal Ministry for Economic Cooperation and Development, or BMZ, to cooperate on developing Africa’s railway systems and deepening regional economic integration.
Mike Salawou, Bank Group director for infrastructure and urban development, signed on behalf of the institution during the inaugural African European Industry Dialogue on Railways. Michael Krake, BMZ’s deputy director general for economic cooperation, also signed.
The African European Industry Dialogue on Railways, part of the International Trade Fair for Transport Technology, InnoTrans, was jointly organized by Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH, Deutsche Bahn and the EU Global Gateway initiative.
The two entities will work together to reduce Africa’s transport costs, improve cross-border interoperability, promote low-carbon transport solutions, promote and embed sustainable transport policies and actively promote the establishment of a robust local labor market in the railway sector through skills transfer, vocational training and the creation of sustainable employment opportunities.
Cooperation between the Bank Group and BMZ will start with a joint feasibility study for an African Rail Competence Center, implemented by GIZ and expected to launch by October 2026, bringing together innovation and training to modernize and expand Africa’s railways.
In a keynote address, Salawou pointed to Bank-supported investments in the Lobito Corridor, the Standard Gauge Railway program 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.
Africa’s rail network currently represents only 8% to 10% of the world’s total, but the African Continental Free Trade Area is driving growing demand for cross-border freight and passenger movement across a market of more than 1.4 billion people.
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