AfDB and Germany partner on railway development to boost Africa’s regional connectivity and integration
ABIDJAN, October 3, 2026 — The African Development Bank Group [AfDB] has signed a letter of intent [LOI] with the German Federal Ministry for Economic Cooperation and Development [BMZ] to cooperate on developing Africa’s railway systems and deepening regional economic integration.
Mike Salawou, the Bank Group’s 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, held as part of the International Trade Fair for Transport Technology, InnoTrans, was jointly organised by the Deutsche Gesellschaft für Internationale Zusammenarbeit [GIZ] GmbH, Deutsche Bahn and the EU Global Gateway initiative.
The two institutions will work together to reduce transport costs in Africa, improve cross-border interoperability, promote low-carbon transport solutions, embed sustainable transport policies and actively support the establishment of a robust local labour 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 begin with a joint feasibility study for an African Rail Competence Centre, to be implemented by GIZ and expected to be launched by October 2026. The centre will bring together innovation and training to modernise and expand Africa’s railway systems.
In a keynote address, Salawou pointed to Bank-supported investments in the Lobito Corridor, the Standard Gauge Railway programme 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 8–10 percent of the world’s total, while 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.
The Bank’s director also outlined five priorities for the sector: a continental market driven by the African Continental Free Trade Area; modal-shift reforms; interoperable standards; financing that crowds in private capital; and the skills and competencies needed to operate the networks once they are built.
“Building a railway is half the job,” he said. “Running it is the harder half.”
Deputy Director-General Michael Krake emphasised BMZ’s long-standing commitment to supporting Africa’s development.
“BMZ is committed to working with our African partners to strengthen regional connectivity and support sustainable economic development. Together with the African Development Bank, we will advance practical cooperation on interoperability, skills development and other priorities that help build a stronger railway sector,” he said.
Salawou ended with a call to action for key stakeholders. African governments and railway authorities, he said, should set a clear vision, commission credible feasibility studies, undertake reforms early and provide investors with regulatory certainty.
European industry, he added, should offer long-term partnerships, local content and skills transfer rather than simply supplying equipment. Financiers should become involved at the project preparation stage.
He added that the Bank Group would support these efforts through guarantees, blended finance and technical assistance.
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