Algeria Embarks on $18.5 Billion Railway Modernization and Expansion

ALGIERS, January 2026 — Algeria is undertaking a significant railway development strategy, aiming to modernize its national network and extend connectivity, particularly to its southern regions. This initiative underscores the critical role of rail infrastructure in national economic development and integration.

The strategy is backed by approximately $18.5 billion (Dinars 2.4 trillion), as detailed by Nabil Boubaya, central director of the National Railway Investment Design and Implementation Supervision Agency (Anesrif). The current rail network stands at 5,738 km, with plans to expand it further. A key project is the 495 km Laghouat – Ghardaïa – El Menéa line, for which the African Development Bank has approved a €747.3 million loan for its first phase.

This substantial investment is intended to reduce logistics costs, improve passenger services, and strengthen regional economic integration. The expansion into southern areas is specifically designed to stimulate economic activity by facilitating the movement of goods and connecting markets.

The project aligns with Algeria's broader transportation modernization agenda. Nabil Boubaya highlighted the network's growth and the strategic importance of these upgrades in a recent national radio interview.

By rehabilitating existing lines and constructing new strategic routes, Algeria aims to leverage its rail network as a cornerstone for future economic growth and improved national connectivity, reflecting a global trend of prioritizing rail infrastructure development.

Source: Muslim Network TV