The African Development Bank Group and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) signed a letter of intent to work together on expanding and modernising Africa’s railway systems, aiming to lower transport costs and boost regional integration.

The agreement was formalised at the inaugural African‑European Industry Dialogue on Railways, held alongside the InnoTrans transport technology fair in Berlin.

Mike Salawou, the African Development Bank’s Director for Infrastructure and Urban Development, signed on behalf of the bank, while BMZ’s Deputy Director General for Economic Cooperation, Michael Krake, signed for Germany.

The partnership will begin with a joint feasibility study for an African Rail Competence Centre, to be carried out by the German development agency GIZ and slated for launch by October 2026.

The centre is intended to combine innovation and vocational training to modernise rail infrastructure and develop a skilled local workforce across the continent.

Africa’s rail network currently accounts for only 8‑10 % of global rail length, with roughly 90,000 km of lines that are often fragmented, outdated, or built for extraction rather than inter‑country connectivity.

Bank officials highlighted existing investments such as the Standard Gauge Railway in Kenya, noting its role in linking Mombasa and Nairobi while also raising questions about cost, debt sustainability and future extensions.