Algeria Rail Expansion: AfDB Partnership & Trans-Saharan Railway

Introduction

During the official visit of African Development Bank (AfDB) President Dr Sidi Ould Tah to Algeria on 16–17 November, railway development was confirmed as a central element of Algeria’s 2025 investment strategy. The Laghouat–Ghardaïa–El Meniaa railway line, a 495 km project, is a core priority.

Main Content

Financing and Partnership

The African Development Bank (AfDB) has been identified as Algeria’s primary international partner for new external financing initiatives, with railway development at the core of the country’s 2025 investment strategy. This was confirmed during AfDB President Dr Sidi Ould Tah’s visit on 16–17 November, where he met with President Abdelmadjid Tebboune and senior government officials.

Laghouat–Ghardaïa–El Meniaa Railway Line

A major focus of the 2025 Finance Law is the construction of the Laghouat–Ghardaïa–El Meniaa railway line. This project spans 495 km and is estimated to cost USD 2.8 billion. It represents the initial phase of the planned Trans-Saharan Railway, a crucial north–south corridor intended to extend to Tamanrasset and connect with Niger.

National Railway Network Expansion

The Laghouat–Ghardaïa–El Meniaa line is part of Algeria’s national program to expand its railway network to 10,000 km by 2030, with a long-term goal of reaching 15,000 km. The strategy aims to connect remote areas, foster industrial growth, and enhance domestic processing of natural resources, especially in the south, where significant mineral deposits are located far from existing infrastructure.

Strategic Importance and Economic Impact

Minister of Hydrocarbons and Mines Mohamed Arkab highlighted the importance of linking mining regions to rail to facilitate local value creation. The Trans-Saharan Railway is expected to play a key role in accessing remote deposits of iron, zinc, gold, and rare earths, improving logistics for both domestic processing and export. Dr Ould Tah emphasized the alignment between Algeria’s industrial policies and the Bank’s strategic priorities, focusing on the importance of transport corridors in strengthening mineral value chains across the continent. Algeria recently completed 950 km of new railway in 24 months using national resources and expertise.

Conclusion

Algeria has prioritized railway development within its 2025 investment strategy, with the African Development Bank (AfDB) as its primary international partner. The focus includes the Laghouat–Ghardaïa–El Meniaa railway line and the broader expansion of the national railway network. The Trans-Saharan Railway is seen as vital for unlocking mineral resources and boosting economic activity.

Company Summary

African Development Bank (AfDB): Identified as Algeria’s main international partner for financing railway development initiatives.