Algeria Secures $3 Billion Loan for Trans-Saharan Railway Project
During an interview with the national press on February 8, President Abdelmadjid Tebboune confirmed that the African Development Bank (AfDB) has granted a loan of over $3 billion to finance the Laghouat–Ghardaïa–El Menia railway line. The repayment period for this financial facility will span 13 years. This 495 km section marks the beginning of a rather ambitious project: a trans-Saharan railway corridor that will connect Algiers to Tamanrasset over 2,000 km, with a future connection to Niger.
Objectives of the Project
The goal of this project is to:
- Open up the South of the country
- Facilitate the transportation of mineral resources
- Offer a new strategic logistics route to Sahel countries
Expansion of Algeria's Railway Network
In this context, Algeria plans to double its existing network to reach 10,000 km by 2030, with a long-term goal of 15,000 km, according to Agence Ecofin. Meanwhile, the country has recently launched technical tests on the 950 km Gara Djebilet line, dedicated to the transportation of iron ore and various freight, while contributing to the development of western localities.
Strategic Implications
With this corridor, Algeria is not only connecting the North to the South, but also opening a strategic corridor in the heart of the Sahara, ready to transform the country's transportation and economy.
