The African Development Bank Group (AfDB) has approved $878.09m in financing for Algeria to support the second phase of the Laghouat-Ghardaïa-El Meniaa railway line, covering a 495km route in southern Algeria.
Approved by the bank’s Board of Directors, the funding will support Algeria’s Ministry of Public Works and Basic Infrastructure in developing a key section of the Trans-Saharan rail corridor between Algiers and Tamanrasset.
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The current operation focuses on constructing the 230km Ghardaïa-El Meniaa section, which will include integrated infrastructure and institutional support activities.
According to AfDB, the investment is designed to enhance transportation competitiveness and further regional integration along the corridor.
AfDB infrastructure and urban development director Mike Salawou said: “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.”
The new rail section is expected to increase agricultural and mining output in provinces along the route by cutting transport costs and travel times.
The project is also expected to spur growth in agro-industry, construction, logistics and public works by connecting production centres more closely to markets.
AfDB Algeria country manager Abdoulkader Dileita said: “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.
“It is also a major asset for regional integration, reinforcing Algeria’s position as a gateway between Africa, the Mediterranean and Europe.”
The plans include local development measures, such as targeted training for young people and women in railway-related fields, tourism, logistics and handicrafts.
The initiative aligns with the AfDB’s 2025–030 Country Strategy Paper for Algeria, which prioritises using infrastructure to drive economic development and strengthen regional partnerships.
The first phase of the Laghouat-Ghardaïa-El Ménéa railway, estimated at €1.49bn (approximately $1.75bn), was financed in part by a €747.32m loan from AfDB, with further contributions from the Asian Infrastructure Investment Bank and Algeria’s government.
The project, managed through the National Agency for Studies and Monitoring of Railway Investment Projects (ANESRIF), is structured as a multi-section build.
It features four main sections, a mix of viaducts, tunnels and stations, and aims to support passenger train speeds of up to 220km/h and freight up to 100km/h.
