African Development Bank Approves US$878 Million for Second Phase of Algeria's Laghouat–Ghardaïa–El Meniaa Railway Project

The African Development Bank (AfDB) has approved US$878.09 million in financing for the second phase of Algeria's Laghouat–Ghardaïa–El Meniaa Railway Line, advancing the country's efforts to strengthen transport infrastructure, diversify its economy, and deepen regional integration across the Trans-Saharan corridor.

The financing, approved by the Bank's Board of Directors, will support the construction of the 230-kilometre Ghardaïa–El Meniaa section of the railway, alongside integrated infrastructure and institutional support activities. The project will be implemented by Algeria's Ministry of Public Works and Basic Infrastructure.

The railway forms part of the broader 495-kilometre Laghouat–Ghardaïa–El Meniaa line, a key component of Algeria's planned Trans-Saharan railway corridor linking the capital, Algiers, with Tamanrasset in the country's south. Once completed, the corridor is expected to improve connectivity between North Africa, the Sahel, and sub-Saharan Africa, positioning Algeria as a strategic gateway between Africa, the Mediterranean, and Europe.

According to the AfDB, the project is expected to enhance the competitiveness of rail transport by reducing transport costs and travel times while supporting the expansion of agricultural and mining production in provinces along the corridor. It is also expected to stimulate economic activity in sectors including agro-processing, logistics, construction, and public works by improving access between production centres and markets.

Mike Salawou, Director for Infrastructure and Urban Development at the African Development Bank Group, said the financing underscores the Bank's commitment to supporting strategic infrastructure that promotes economic transformation, territorial connectivity, and regional integration.

AfDB's Country Manager for Algeria, Abdoulkader Dileita, said the investment aligns with Algeria's strategy to diversify its economy beyond hydrocarbons by improving connections between population centres, mining regions, and ports while strengthening the country's role in regional trade.
Beyond transport infrastructure, the project includes initiatives aimed at promoting inclusive local development through targeted training programmes for young people and women in railway operations, logistics, tourism, and handicrafts.
The investment aligns with the African Development Bank's 2025–2030 Country Strategy Paper for Algeria, which prioritises infrastructure development as a driver of economic growth and regional integration.