Algeria secures $878 million for Trans-Saharan rail expansion

The African Development Bank has greenlit $878.09 million in financing to accelerate the second phase of Algeria’s railway corridor, a strategic push to link the northern coast with the southern interior. This infusion targets a new 230-kilometre line connecting Ghardaïa to El Meniaa, bridging a critical gap in national infrastructure.

Editorial·July 15, 2026·reads: 516

Algeria secures $878 million for Trans-Saharan rail expansion

The project, managed by the Ministry of Public Works and Basic Infrastructure, aims to construct a 495-kilometre line extending toward Tamanrasset. By shifting freight from road to rail, officials expect to lower logistics costs for mining operations and agricultural producers, effectively diversifying an economy long tethered to hydrocarbon exports. The initiative serves as a gateway, reinforcing Algeria’s role in trade between Mediterranean markets and the African continent.

Beyond technical construction, the investment mandates institutional development and local capacity building. Training programs will target youth and women, focusing on skills in logistics, tourism, and handicrafts to ensure the infrastructure generates long-term employment. These efforts align with the African Development Bank Group's 2025–2030 Country Strategy Paper, which prioritizes territorial connectivity as a primary engine for sustainable economic growth.