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Posted By OrePulse
Published: 16 Jul, 2026 08:39

Algeria secures USD 878 million funding for a railway line

By: RailwayPRO

The financing will enable the construction of the 230-km Ghardaïa–El Meniaa section, along with related infrastructure and institutional strengthening measures. The project will be implemented by Algeria’s Ministry of Public Works and Basic Infrastructure.

The new line is part of the trans-Saharan railway corridor, which will link the capital, Algiers, to the city of Tamanrasset in the south of the country. By developing this corridor, the authorities aim to increase the competitiveness of transportation, improve internal connectivity, and strengthen regional integration in North and West Africa.

“Through this financing, the African Development Bank is supporting Algeria in building strategic railway infrastructure that will drive economic transformation, territorial connectivity, and regional integration,” said Mike Salawou, Director of Infrastructure and Urban Development at the African Development Bank.

The railway line will support economic development in southern Algeria

The Laghouat–Ghardaïa–El Meniaa line is one of the most significant ongoing railway investments in Algeria and is intended to extend the railway network to the Saharan regions, which are rich in natural resources but currently underconnected to the country’s main economic centers.

Thanks to the new infrastructure, agricultural production and mining operations in the provinces along the route will have faster access to domestic markets and Algerian ports. The project is designed to reduce transportation costs and travel times, thereby stimulating the development of sectors such as agribusiness, logistics, construction, and public works.

At the same time, this railway line in Algeria will contribute to the development of the Trans-Saharan Corridor, a project of strategic importance for the African continent, which aims to connect the regions of North Africa with those of the Saharan region and, in the long term, to facilitate trade between Africa, the Mediterranean basin, and Europe.

“This project reflects Algeria’s policy of economic diversification beyond the hydrocarbon sector, by connecting people, mining operations, and ports to optimize the use of resources and generate prosperity. At the same time, it represents a major asset for regional integration, strengthening Algeria’s position as a gateway between Africa, the Mediterranean, and Europe,” said Abdoulkader Dileita, the African Development Bank’s country manager for Algeria.

In addition to the infrastructure component, the project includes measures dedicated to the development of local communities. These include vocational training programs for young people and women in fields such as rail transport, logistics, tourism, and crafts.

The investment is aligned with the African Development Bank’s Partnership Strategy for Algeria for 2025–2030, which emphasizes infrastructure development as a driver of economic growth and regional integration.

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