AfDB named Algeria’s principal external financing partner as country advances rail, energy and mineral industrialisation plans

Algeria has formally designated the African Development Bank (AfDB) as its main international partner for securing external financing, signalling a major shift in its approach to funding large-scale national infrastructure and industrial projects.

The announcement followed AfDB President Dr Sidi Ould Tah’s official visit to Algiers from November 16 to 17, during which he met President Abdelmadjid Tebboune. Dr Ould Tah described the decision as a strategic leap in Algeria’s economic transformation agenda.

Under the 2025 Finance Law, Algeria has authorised external borrowing for key national projects, beginning with the construction of the Laghouat–Ghardaïa–El Meniaa railway line.

The 495-kilometre line, valued at $2.8 billion, forms the first phase of the Trans-Saharan Railway corridor, which will stretch from northern Algeria to Tamanrasset and onward to Niger, creating a crucial logistics route for Sahel nations.

The railway development is central to Algeria’s ambition to double its national network to 10,000 km by 2030, with a target of 15,000 km in the longer term. Officials say the expansion will cut transport costs, integrate remote regions and strengthen domestic processing of critical minerals.

Hydrocarbons and Mines Minister Mohamed Arkab emphasised that the country is shifting away from exporting unprocessed raw materials. Algeria aims to increase local hydrocarbon transformation from 30 percent to 60 percent by 2035, backed by a $60 billion investment programme scheduled between 2025 and 2029. The government is simultaneously pushing growth in petrochemicals, hydrogen and gas derivatives.

In the mining sector, Algeria is positioning itself as a future hub for processing critical minerals such as iron, zinc, gold and rare earth elements, many of which lie in the Saharan belt.

The Trans-Saharan Railway is expected to provide the infrastructure backbone needed to unlock these resources and improve their access to international markets.

Dr. Ould Tah commended Algeria’s industrial vision, noting its alignment with AfDB’s broader agenda for Africa‘s economic transformation. Citing BloombergNEF findings, he highlighted Africa’s competitive potential in battery precursor production and urged unified strategies to protect and develop the continent’s mineral wealth.

The visit also underscored Algeria’s progress on water and energy security. The Fouka 2 seawater desalination facility was showcased as part of a network of 19 desalination plants currently in operation, with five more planned by 2027. By 2030, Algeria expects desalination to meet 60 percent of its national water demand.

The country’s LPG distribution system, serving 75 percent of households, was also presented as an African model for accelerating clean energy access.

Interior Minister Saïd Sayoud and Public Works Minister Abdelkader Djellaoui highlighted the country’s capacity to execute large projects rapidly, citing the domestic completion of 950 km of railway infrastructure in just 24 months.

Dr. Ould Tah concluded that Algeria’s ambition, project quality and execution strength make it a pivotal partner in the wider transformation of the African continent.