The African Development Bank (AfDB) has been designated as Algeria’s key international partner in its renewed drive to access external financing, marking a significant milestone in the country’s development strategy.
Dr. Sidi Ould Tah, President of the AfDB, conveyed his appreciation to Algerian President Abdelmadjid Tebboune during an official visit to Algiers from November 16 to 17. He described the decision as a strategic step forward for Algeria’s economic transformation and its partnership with the Bank.
Under the 2025 Finance Law, Algeria has opened the door to external financing for major national projects, including the construction of the Laghouat–Ghardaïa–El Meniaa railway line, a 495-kilometre stretch estimated at $2.8 billion. This project forms the first phase of the Trans-Saharan Railway corridor, which will eventually link northern Algeria to Tamanrasset and onward to Niger, creating a vital logistics route for landlocked Sahel countries.
The railway initiative is part of Algeria’s broader plan to double its rail network to 10,000 km by 2030, with a long-term target of 15,000 km. The expansion aims to reduce transport costs, integrate remote regions, and boost local processing of critical minerals.
Hydrocarbons and Mines Minister Mohamed Arkab reaffirmed Algeria’s commitment to value addition in resource sectors. “We can no longer accept exporting our raw materials in their unprocessed state,” he said. Algeria plans to raise local hydrocarbon transformation from 30 percent to 60 percent by 2035, supported by a $60 billion investment programme between 2025 and 2029. The country also seeks to expand petrochemicals, hydrogen, and gas derivative industries.
In mining, Algeria is positioning itself as a leader in processing critical minerals such as iron, zinc, gold, and rare earths, many located in the Saharan region. The Trans-Saharan Railway will provide essential infrastructure to unlock these resources and improve market access.
Dr. Ould Tah praised Algeria’s industrial ambitions, noting their alignment with AfDB’s vision for Africa’s transformation. He cited a BloombergNEF study highlighting Africa’s competitive edge in producing battery precursors and called for coordinated efforts to safeguard and develop the continent’s mineral wealth.
The visit also spotlighted Algeria’s progress in water and energy security, including the Fouka 2 seawater desalination plant. Algeria operates 19 desalination plants and plans five more by 2027, aiming to meet 60 percent of national water needs by 2030. The country’s LPG distribution network, which serves 75 percent of households, was showcased as a model for Africa’s clean energy transition.
Interior Minister Saïd Sayoud and Public Works Minister Abdelkader Djellaoui highlighted Algeria’s capacity to deliver large-scale projects, noting the completion of 950 km of railway in 24 months using domestic resources.
Dr. Ould Tah concluded: “The ambition of the Algerian government, the quality of its projects, and its execution capacity make it a central partner for Africa’s transformation.”
GNA
