African Development Bank approves $878M for Algeria’s trans-Saharan railway
Funding will support construction of strategic rail link aimed at boosting regional connectivity, economic diversification and trade across North and West Africa
ALGIERS, Algeria (MNTV) — The African Development Bank (AfDB) has approved $878 million in financing for the second phase of Algeria’s Laghouat–Ghardaïa–El Meniaa railway project, advancing a major transport corridor intended to improve domestic connectivity and strengthen regional trade.
The funding will finance construction of the 230-kilometer Ghardaïa–El Meniaa section of the railway, together with supporting infrastructure and institutional development measures. Algeria’s Ministry of Public Works and Basic Infrastructure will oversee implementation of the project.
The railway forms part of the broader 495-kilometer Laghouat–Ghardaïa–El Meniaa line, a key segment of the planned Trans-Saharan Railway Corridor linking the capital, Algiers, with the southern city of Tamanrasset.
The AfDB said the project is expected to improve transport efficiency, expand access to remote regions and reinforce economic integration across North and West Africa.
Mike Salawou, the bank’s Director for Infrastructure and Urban Development, said the financing demonstrates the institution’s commitment to supporting strategic infrastructure projects capable of promoting economic transformation, territorial connectivity and regional cooperation.
Authorities expect the railway to improve access to domestic markets and seaports for agricultural producers and mining operations in southern Algeria, where abundant natural resources remain constrained by limited transport infrastructure.
The project is also expected to lower transport costs and travel times while supporting growth in industries including agriculture, logistics, construction and public works.
Officials said the railway will contribute to the long-term development of the Trans-Saharan Corridor, an initiative designed to enhance trade links between North Africa, the Sahara region and, eventually, markets in the Mediterranean and Europe.
Abdoulkader Dileita, the African Development Bank’s Country Manager for Algeria, said the investment supports Algeria’s strategy to diversify its economy beyond hydrocarbons by improving connections between population centers, mining areas and ports while strengthening the country’s role as a transport gateway between Africa and Europe.
Beyond railway construction, the project includes vocational training programs for young people and women in sectors such as rail transport, logistics, tourism and handicrafts to expand local employment opportunities.
The investment aligns with the African Development Bank’s Partnership Strategy for Algeria for 2025-2030, which identifies infrastructure development as a key driver of sustainable economic growth and regional integration.
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