ByAyomide Otitoju
Algeria has officially designated the African Development Bank (AfDB) as its international partner in the country’s renewed approach to external financing, marking a significant milestone in the ongoing partnership between the two institutions.
During his official visit to Algeria on 16–17 November, AfDB President Dr Sidi Ould Tah expressed gratitude to President Abdelmadjid Tebboune, describing the decision as a strategic step forward for Algeria’s development and its relationship with the Bank Group.
Under the 2025 Finance Law, Algeria is prioritizing large-scale projects of national importance, chief among them the Laghouat–Ghardaïa–El Meniaa railway line, a 495 km corridor estimated at $2.8 billion. This project represents the first phase of a broader Trans-Saharan Railway corridor, which will eventually extend to Tamanrasset and Niger, opening southern Algeria and providing crucial transport links for landlocked Sahel countries.
The railway is part of Algeria’s national railway expansion plan, aiming to double the network to 10,000 km by 2030, with a long-term target of 15,000 km. The expansion supports Algeria’s broader goals of modernizing infrastructure, integrating isolated regions, and increasing domestic processing of key natural resources, including critical and industrial minerals.
Minister of Hydrocarbons and Mines Mohamed Arkab emphasized value addition, stating: “We can no longer accept exporting our raw materials in their unprocessed state.” Algeria plans to increase local transformation of hydrocarbons from 30% to 60% by 2035, backed by a $60 billion investment plan from 2025 to 2029, while expanding capacity in petrochemicals, hydrogen, and gas derivatives.
In mining, Algeria is positioning itself as a leader in critical minerals such as iron, zinc, gold, and rare earths, many located in remote Saharan regions. The Trans-Saharan Railway will provide the logistical backbone to unlock these deposits, enabling local processing and improving access to domestic and regional markets.
Ould Tah praised Algeria’s industrial ambitions, highlighting alignment with AfDB’s strategic vision. “The localisation of value, industrialisation, and mineral sovereignty are key pillars of Africa’s future,” he said, citing Africa’s competitive advantage in battery precursor production.
The visit also included a tour of the Fouka 2 seawater desalination plant, part of Algeria’s effort to address water scarcity. Algeria currently operates 19 desalination plants, with five more scheduled by 2027 to meet 60% of national water needs by 2030.
Algeria’s long-standing expertise in LPG distribution, reaching 75% of households, including southern desert regions, was highlighted as a model for Africa’s clean energy transition, with AfDB supporting similar initiatives continent-wide.
Ministers Saïd Sayoud and Abdelkader Djellaoui showcased Algeria’s capacity to manage large infrastructure projects, noting the completion of 950 km of railway in 24 months using domestic resources and expertise.
Dr Ould Tah concluded by praising Algeria’s vision and execution capabilities, describing the country as “a central partner for Africa’s transformation” and a key collaborator for future continental infrastructure and industrial development.
