Summary:

On 14 July 2026, the African Development Bank (AfDB) approved USD 878 million in financing for the second phase of the Laghouat–Ghardaïa–El Meniaa railway project in Algeria, covering the construction of the 230 km Ghardaïa–El Meniaa section. 

The project forms part of the wider Trans-Saharan railway corridor aimed at extending Algeria’s rail network toward its southern regions, improving connectivity between resource-rich areas in the interior and the country’s economic centers and ports.  

The investment in the railroad is expected to support sectors such as mining, agriculture and logistics while contributing to Algeria’s broader objective of economic diversification beyond hydrocarbons. 

The financing also includes measures to support local skills development and aligns with the AfDB’s 2025–2030 partnership strategy with Algeria, which prioritizes infrastructure development and regional integration. 

Outlook: 

With this funding, Algeria is advancing a strategic infrastructure project aimed at improving connectivity between northern economic centers and the resource-rich southern regions.  

Railway expansion supports the government’s broader vision of strengthening domestic trade routes, facilitating access to mining and agricultural areas, and reducing reliance on hydrocarbons by enabling new economic activity. 

The continued development of transport corridors is likely to reinforce Algeria’s role as a link between North Africa, the Sahel and Mediterranean markets, while attracting further institutional support for large-scale infrastructure initiatives. 

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