Development finance institution the African Development Bank (AfDB) Group and the German Federal Ministry for Economic Cooperation and Development (BMZ) have formed a partnership to develop Africa’s railway systems and deepen regional economic integration.

The two entities will collaborate to reduce Africa’s transport costs, improve cross-border interoperability, promote low-carbon transport solutions and promote and embed sustainable transport policies.

They will also actively promote the establishment of a robust local labour market in the railway sector through skills transfer, vocational training and the creation of sustainable employment opportunities.

The cooperation between the AfDB Group and BMZ will start with a joint feasibility study for an African Rail Competence Centre.

The study will be implemented by German development cooperation organisation GIZ and is expected to launch this month, bringing together innovation and training to modernise and expand Africa's railways, the organisations say.

Africa’s rail network currently represents only 8% to 10% of the world's total, but the African Continental Free Trade Area (AfCFTA) is driving growing demand for cross-border freight and passenger movement across a market of more than 1.4-billion people.

AfDB Group Infrastructure and Urban Development director Mike Salawou set out five priorities for the sector, including a continental market driven by the AfCFTA, modal-shift reforms, interoperable standards, financing that crowds in private capital and the competencies needed to operate the networks once built.

“African governments and railway authorities should set a clear vision, commission credible feasibility studies, reform early and give investors regulatory certainty. European industry should offer long-term partnership, local content and skills transfer, not just equipment.”

Financiers should get involved in projects at the preparation stage, and the AfDB will support them with guarantees, blended finance and technical assistance, he says.

The bank supports 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, he adds.

“BMZ is working with our African partners to strengthen regional connectivity and support sustainable economic development. Together with the AfDB, we will advance practical cooperation on interoperability, skills development and other priorities that help build a stronger railway sector,” says BMZ economic cooperation deputy director-general Michael Krake.