AfDB approves $878 million for Algeria railway expansion

AfDB Country Manager for Algeria, Abdoulkader Dileita, said the railway supports Algeria's strategy of reducing its reliance on hydrocarbons by improving links between communities, mining areas and ports.

The African Development Bank (AfDB) has approved $878.09 million in financing to support the second phase of Algeria's Laghouat–Ghardaïa–El Meniaa railway project, a major infrastructure investment designed to improve transport efficiency, boost regional economic activity and strengthen links along the Trans-Saharan railway corridor.

The funding will be used to construct the 230-kilometre Ghardaïa–El Meniaa section of the planned 495-kilometre railway line, alongside supporting infrastructure and institutional development activities. Algeria's Ministry of Public Works and Basic Infrastructure will oversee the project. The railway forms part of the broader corridor stretching from Algiers to Tamanrasset, improving connectivity between northern and southern Algeria while supporting regional transport links across Africa.

Railway expected to boost mining, farming and local industries

The new rail section is expected to make freight transportation faster and more affordable, creating better access to markets for agricultural producers and mining operations located in provinces along the route. Lower transport costs are also expected to encourage investment in agro-processing, logistics, construction and other industries that depend on efficient supply chains.

Mike Salawou, Director for Infrastructure and Urban Development at the African Development Bank Group, said the financing reflects the Bank's commitment to helping Algeria develop infrastructure that supports economic transformation, strengthens connections between regions and promotes greater regional integration.

AfDB Country Manager for Algeria, Abdoulkader Dileita, said the railway supports Algeria's strategy of reducing its reliance on hydrocarbons by improving links between communities, mining areas and ports. He added that the project will reinforce the country's role as a transport gateway connecting Africa with the Mediterranean region and Europe.

Local communities to benefit through jobs and skills development

Beyond transport infrastructure, the project includes measures to support local development and improve employment opportunities. Training programmes will be offered to young people and women, preparing them for careers linked to the railway sector, logistics, tourism and handicrafts. The initiative is expected to create new economic opportunities for communities located along the railway corridor while strengthening local skills that can support future development projects. The investment is aligned with the African Development Bank Group's 2025–2030 Country Strategy Paper for Algeria, which identifies modern transport infrastructure as a key driver of economic growth, territorial connectivity and stronger regional integration.