ALGIERS, ALGERIA — Algeria is strategically shifting its long-standing policy of financial self-reliance by earmarking a massive $2.8 billion railway project as the first national development initiative to be funded through external financing. This landmark decision, formalized under the country’s 2025 Finance Law, signals a new era of international partnership focused on modernizing Algeria’s infrastructure and unlocking its vast southern resources.
AfDB Confirms Role as Key Financial Partner
The move was recently confirmed during a November 2025 visit by Dr. Sidi Ould Tah, President of the African Development Bank (AfDB) Group, who met with President Abdelmadjid Tebboune and senior government officials.
The AfDB praised Algeria’s strategic decision to gradually engage with external funding for projects of national interest, expressing its honor to be identified as the international partner of choice. This decision marks a significant step in strengthening the relationship between Algeria and the Pan-African financial institution.
The Trans-Saharan Rail Corridor
The flagship project selected for this initial external financing is the construction of the Laghouat–Ghardaïa–El Meniaa railway line.
- Cost and Length: The 495-kilometer (307-mile) line is estimated to cost $2.8 billion.
- Strategic Phase: This section is the vital first stage of the ambitious Trans-Saharan Railway corridor, an axis planned to run from Algiers south to Tamanrasset (a total distance of about 2,000 km) and eventually extending into neighboring Niger.
A Project with Regional and Economic Impact
The railway is a core component of Algeria’s national expansion program, which aims to more than double the country’s railway network to 10,000 kilometers by 2030, with a long-term goal of 15,000 km.
The project’s goals are three-fold:
- Economic Development: It will connect the isolated southern regions to the national economic grid, significantly reducing transportation costs across the country.
- Regional Logistics: By extending to the deep Sahara and linking towards the Sahel region, the corridor will provide a vital logistics spine for landlocked countries, enhancing Algeria’s role as a regional hub.
- Mineral Value Chain: Crucially, the railway is designed to support the exploitation and processing of Algeria’s substantial mineral resources, including deposits of iron, zinc, gold, and rare earth elements in the Sahara.
Minister of Hydrocarbons and Mines, Mohamed Arkab, reinforced the government’s mandate, stating: “We can no longer accept exporting our raw materials in their unprocessed state!” This rail line is essential to achieving the goal of increasing local transformation of resources before export, strengthening Algeria’s industrial sovereignty.
