African Development Bank and Germany partner on rail development

The African Development Bank (AfDB) and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) have signed a letter of intent to collaborate on the development of African railway networks. The partnership was formalized during the inaugural African-European Industry Dialogue on Railways held in Berlin.

The initiative aims to modernize and expand rail systems to support the African Continental Free Trade Area (AfCFTA). Key objectives include reducing logistics costs by an estimated 30% to 40%, improving cross-border connectivity, and promoting low-carbon transport solutions. The cooperation will also focus on human capital through vocational training and skills transfer in railway construction, operation, and maintenance.

A primary component of this partnership is a feasibility study for a proposed African Rail Competence Centre, which is expected to be implemented by the German development agency GIZ. This center is intended to serve as a hub for innovation and training to support the continent’s growing demand for freight and passenger transport.