African Development Bank Approves $878 Million for Algeria's Trans-Saharan Railway

The Board of Directors of the African Development Bank Group has approved USD 878.09 million in financing for Algeria to build the second phase of the 495-kilometre Laghouat-Ghardaia-El Meniaa railway line. The operation covers construction of the 230-kilometre Ghardaia-El Meniaa section, together with integrated infrastructure and institutional support activities. The project will be implemented by Algeria's Ministry of Public Works and Basic Infrastructure and is designed to make transportation more competitive while driving regional integration along the Trans-Saharan railway corridor that runs from Algiers to Tamanrasset in the south of the country.

A Corridor Linking Algiers to the Sahara

The Laghouat-Ghardaia-El Meniaa line forms one segment of a much longer north-south corridor intended to connect the Algerian capital to Tamanrasset, near the borders with Mali and Niger. Once complete, the line is expected to expand agricultural and mining production in the provinces, known locally as wilayas, that sit along the route. Planners say the railway should reduce transport costs and travel times while fostering economic activity tied to agro-industry, logistics, construction and public works by bringing production centres closer to markets. "Through this financing, the African Development Bank is supporting Algeria in delivering strategic railway infrastructure that will drive economic transformation, territorial connectivity, and regional integration," said Mike Salawou, Director for Infrastructure and Urban Development at the African Development Bank Group.

Diversifying an Economy Built on Hydrocarbons

For Algeria, the railway is also a statement about where the country wants its economy to go. Abdoulkader Dileita, the African Development Bank's Country Manager for Algeria, framed the project as part of a broader push to reduce reliance on oil and gas. "This project reflects Algeria's policy of economic diversification beyond hydrocarbons by connecting its people, mines, and ports to optimise the use of its resources and generate wealth," he said. "It is also a major asset for regional integration, reinforcing Algeria's position as a gateway between Africa, the Mediterranean and Europe." The financing is aligned with the Bank's 2025-2030 Country Strategy Paper for Algeria, which prioritises infrastructure that supports economic development and regional integration across the wider Maghreb and Sahel.

Training Alongside the Tracks

Beyond the rails themselves, the project includes activities designed to support local development along the corridor. These include targeted training for young people and women in occupations tied to railways, logistics, tourism and handicrafts, an effort to make sure the economic benefits of the line extend to the communities it passes through rather than only to the freight and passengers it eventually carries. Algeria has steadily expanded its rail network over the past two decades as part of a wider strategy to link its coastal cities with the interior and, eventually, with neighbouring countries further south.

The African Development Bank has financed transport infrastructure across North Africa for decades, and railway projects have become a recurring feature of its country strategies as governments look to cut logistics costs and reduce dependence on road freight. For Algeria, the second phase of the Laghouat-Ghardaia-El Meniaa line represents one of the largest single rail financing packages the Bank has approved in the region in recent years, and its completion would bring the broader Trans-Saharan corridor a significant step closer to reality.

Source: AllAfrica - African Development Bank