Summary:

On 12 December 2025, the African Development Bank (AfDB) approved a €747.32 million loan for the first phase of the 495 km Laghouat–Ghardaïa–El Menéa railway line in central Algeria which will connect the three states of Laghouat, Ghardaïa, and El Menéa. 

The railway is intended to boost economic development in southern Algeria, enhance regional integration, reduce logistics costs, and improve the movement of agricultural and industrial products. The first phase covers priority sections and the installation of modern railway equipment. 

The project also includes economic and social initiatives targeting youth, women, and local communities, while preparing for future network expansion.  

According to Abdoulkader Dileita, AfDB Country Manager for Algeria, it is expected to increase trade and employment opportunities while yielding competitiveness benefits, supporting both Algeria’s national transformation agenda and the AfDB’s strategic priorities. 

Outlook: 

The Laghouat–Ghardaïa–El Menéa railway project will be an important step toward redefining the economic geography of southern Algeria by enhancing connectivity between resource-rich regions and major markets. In addition to reducing transport costs and facilitating trade, the project could attract foreign investment by improving infrastructure reliability and creating opportunities for industrial and agricultural development. 

Its long-term success will depend on alignment with national development plans, integration of local partners, and the establishment of sustainable operational and regulatory frameworks. 

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