The African Development Bank has approved $878m in financing for the second phase of the 495 km Laghouat – Ghardaïa – El Meniaa railway project in Algeria, according to railwaygazette.com.

The second phase covers construction of the 230 km section from Ghardaïa to El Meniaa. It also includes support for institutional development and targeted training for young people and women in occupations related to railways, logistics, tourism and handicrafts.

The line to El Meniaa is intended to improve links between the centre and south of the country. It supports agriculture and mining by reducing transport costs and times, and fosters economic activity and public works by bringing production centres closer to markets.

The project is also envisaged as the first phase of a Trans-Saharan Railway corridor. This corridor would ultimately extend from northern Algeria to Tamanrasset and onwards to Niger.

In November 2025, the African Development Bank approved a €747m loan to support the first phase of construction works.

Mike Salawou, Director for Infrastructure & Urban Development at AfDB, said the latest financing announced on July 14 is supporting Algeria in ‘delivering strategic railway infrastructure that will drive economic transformation, territorial connectivity, and regional integration’.

Abdoulkader Dileita, AfDB Country Manager for Algeria, said, ‘this project reflects Algeria’s policy of economic diversification beyond hydrocarbons by connecting its people, mines and ports to optimise the use of its resources and generate wealth. It is also a major asset for regional integration, reinforcing Algeria’s position as a gateway between Africa, the Mediterranean and Europe.’