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African Perspective

AfDB Becomes Algeria’s Chosen Partner as Country Embarks on Ambitious Railway and Industrial Transformation

Algeria picks the African Development Bank as its key financing partner, advancing major rail, mining, water, and industrial projects while expanding energy security and boosting local value creation

AfDB Becomes Algeria’s Chosen Partner as Country Embarks on Ambitious Railway and Industrial Transformation
The High Street Journal
Nov 20, 2025

Algeria has officially chosen the African Development Bank (AfDB) as its key international partner at a moment when the country is dreaming big, expanding railways across the Sahara, transforming its mineral wealth at home, and securing water for millions of families.

AfDB President Dr. Sidi Ould Tah, who spent two days in Algeria meeting senior officials, described the government’s decision as “deeply meaningful,” saying it marked a new chapter in a relationship built on trust and shared ambitions.

At the centre of Algeria’s new development drive is a project that could reshape the country’s future: a $2.8 billion railway line stretching 495 km from Laghouat to Ghardaïa and El Meniaa. It’s the first piece of a massive Trans-Saharan Railway that will one day run down to Tamanrasset and connect the country with Niger and other Sahel nations.

For many Algerians living in the deep south, areas long isolated by vast distances, this isn’t just infrastructure. It is opportunity, access, and connection.

“We’re opening up the country in a way we never have before,” one transport official said during the visit. “It’s about linking communities and unlocking potential that has been dormant for decades.”

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The railway is part of Algeria’s vision to double its rail network to 10,000 km by 2030, and later push to 15,000 km. It’s a vision backed not only by ambition but also by capability. In just 24 months, Algeria completed 950 km of railway, using only local expertise and resources.

Beyond rail, Algeria is also turning a page on how it handles its natural riches. Minister of Hydrocarbons and Mines Mohamed Arkab put it plainly: “We can no longer accept exporting our raw materials in their unprocessed state.”

The country is committing $60 billion between 2025 and 2029 to process more of its hydrocarbons at home and expand industries like petrochemicals, hydrogen, fertilizers, and mineral processing. In mining, Algeria hopes to become a continental leader in critical minerals, from iron and gold to rare earths, much of which are buried in its vast Sahara.

For Dr. Ould Tah, Algeria’s push toward local value addition mirrors the African Development Bank’s own priorities. He pointed to recent research showing Africa’s natural advantage in producing battery precursors, an essential ingredient for the global clean-energy transition.

“This is about sovereignty. It’s about Africa deciding the future of its own minerals,” he said.

The Bank President also visited the “Fouka 2” desalination plant, a symbol of another national priority: water security. With 19 desalination plants already running and five more coming by 2027, Algeria aims to meet 60% of its water needs through seawater desalination by 2030, a critical target as drought deepens across the Mediterranean.

Energy access was another highlight. Algeria provides 75% of households, even in desert communities, with LPG delivered through infrastructure designed and built at home. AfDB sees this as a model for Africa’s clean cooking efforts.

As the visit ended, senior Algerian officials highlighted one message: the country is ready. Ready to build at scale. Ready to transform its economy. Ready to take its place as a major industrial and logistics hub in Africa.

Dr. Ould Tah echoed that sentiment with a simple tribute. “The ambition of the Algerian government, the quality of its projects, and its ability to deliver make Algeria a central partner for Africa’s transformation,” he said.

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