The African Development Bank (AfDB) has reaffirmed its commitment to strengthening its partnership with Algeria and elevating cooperation to an even higher level.
During an official visit to Algeria on 16–17 November, Dr Sidi Ould Tah, President of the African Development Bank, expressed appreciation to President Abdelmadjid Tebboune for the country’s continued partnership with the Bank.
Under the 2025 Finance Law, Algeria has launched a new approach to external financing focused on large-scale national projects. A priority initiative is the development of the 495 km Laghouat–Ghardaïa–El Meniaa railway line, estimated at 2.8 billion dollars.
This railway forms the first phase of the Trans-Saharan Railway corridor, which will extend from northern Algeria to Tamanrasset and onward to Niger. The corridor will open up southern regions and provide a strategic transport link for landlocked Sahel countries, facilitating access to markets and essential resources.
The project is part of Algeria’s wider railway expansion strategy to double the national network to 10,000 km by 2030, with a long-term target of reaching 15,000 km. This expansion supports national objectives to modernise infrastructure, reduce transport costs, integrate remote regions and increase domestic processing of natural resources, including critical and industrial minerals.
Minister of Hydrocarbons and Mines Mohamed Arkab emphasised the government’s commitment to increasing local value addition. He stated that Algeria will no longer accept exporting raw materials without processing.
Algeria aims to raise the local transformation of hydrocarbons from 30 percent to 60 percent by 2035, supported by a 60-billion-dollar investment programme from 2025 to 2029. The plan includes expanding petrochemicals, hydrogen and gas derivatives, as well as upgrading fertiliser, oil, tyre and mineral processing.
In the mining sector, Algeria is positioning itself as a regional leader in the extraction and processing of critical minerals such as iron, zinc, gold and rare earths. Many deposits are located in remote Saharan areas far from existing infrastructure. The Trans-Saharan Railway is expected to provide the logistical support needed to unlock these resources and improve access to domestic and regional markets.
Dr Ould Tah expressed strong support for Algeria’s industrial ambitions, noting their alignment with the AfDB’s strategic vision. He highlighted localisation, industrialisation and mineral sovereignty as pillars of Africa’s future development, referencing a BloombergNEF study indicating Africa’s competitive advantage in producing battery precursors. He called for coordinated African action to safeguard and enhance critical mineral resources.
The visit also focused on Algeria’s progress in strengthening energy and water security. Dr Ould Tah toured the “Fouka 2” seawater desalination plant, which forms part of the country’s response to water scarcity linked to prolonged drought in the Mediterranean region.
Algeria currently operates 19 desalination plants, with five additional units planned by 2027. By 2030, desalination is expected to meet 60 percent of national water demand.
The country’s longstanding expertise in liquefied petroleum gas (LPG) distribution was highlighted as a continental model. Algeria supplies LPG to 75 percent of households, including communities in the southern desert, using infrastructure designed and built locally. This experience contributes to the African Union’s clean energy transition efforts, supported by AfDB clean cooking initiatives across the continent.
Minister of the Interior, Local Authorities and Transport Saïd Sayoud, and Minister of Public Works and Basic Infrastructure Abdelkader Djellaoui, outlined Algeria’s strong capacity to deliver major infrastructure projects. The country recently completed 950 km of railway infrastructure in 24 months using domestic resources and expertise. This implementation capability is considered essential for advancing strategic mining routes and North–South transport corridors.
Dr Ould Tah commended Algeria’s vision and project execution capability, stating that the government’s ambition, project quality and national capacity make Algeria a central partner in Africa’s transformation.
