The African Development Bank (AfDB) has been formally designated as Algeria’s international partner as the country reopens to external financing, marking a significant advancement in their longstanding collaboration. During his visit to Algeria, AfDB President Dr. Sidi Ould Tah thanked President Abdelmadjid Tebboune for the decision, noting that it represents an important strategic milestone for Algeria’s development agenda and its engagement with the Bank Group.
Under the 2025 Finance Law, Algeria is initiating external financing for major national projects, with the Laghouat–Ghardaïa–El Meniaa railway line emerging as a top priority. The 495 km rail line, estimated at $2.8 billion, is the first phase of the larger Trans-Saharan Railway, which will eventually extend to Tamanrasset and onward to Niger. This transportation corridor is expected to boost regional logistics, open up Algeria’s southern regions, and provide vital access routes for Sahel countries.
The railway investment aligns with Algeria’s wider plan to expand its national rail network to 10,000 km by 2030 and ultimately 15,000 km. These infrastructure goals aim to reduce transport costs, connect isolated regions, and support the local processing of key natural resources, including critical minerals and industrial materials. The government is also pushing to increase domestic value addition in energy and mining, with plans to raise local hydrocarbon processing from 30 percent to 60 percent by 2035. Backed by a $60 billion investment plan, Algeria aims to expand petrochemicals, hydrogen, and mineral processing.
In mining, Algeria is positioning itself as a major player in the extraction and processing of iron, zinc, gold, rare earths, and other critical minerals located mainly in the Sahara. The Trans-Saharan Railway will be essential in unlocking the economic potential of these remote deposits, enabling local processing and strengthening trade links with neighboring countries. Dr. Ould Tah affirmed AfDB’s strong support, noting that Algeria’s focus on industrialization and mineral sovereignty aligns closely with the Bank’s long-term strategy.
The visit also highlighted Algeria’s efforts to enhance water and energy security. Ould Tah toured the Fouka 2 desalination plant, part of a nationwide network of 19 facilities. By 2027, five additional units will increase national desalination output, enabling the country to meet up to 60 percent of its water needs by 2030. Algeria’s successful LPG distribution system—which supplies 75 percent of households, including those in remote desert regions—was also recognized as a model for Africa’s clean energy transition.
Senior officials emphasized Algeria’s strong capacity for delivering major infrastructure projects. The country recently built 950 km of railway in just two years, relying solely on domestic expertise and resources. This capability is essential for advancing major transport corridors and mining-related infrastructure. Concluding his visit, Dr. Ould Tah praised Algeria’s ambitious development vision and execution capacity, calling the country a central partner in Africa’s broader transformation efforts.
