Algeria has secured a USD 3 billion financing package from the Islamic Development Bank (IsDB), to be disbursed over the next three years and aimed at accelerating strategic development initiatives.
The funds will support major infrastructure projects, including the expansion of Algeria’s national railway network. The partnership between Algeria and the IsDB is being strengthened under a new comprehensive programme designed to enhance competitiveness and ensure sustainable economic growth.
Algeria maintains a long-standing and multifaceted relationship with the Islamic Development Bank, both as a major contributor and beneficiary, having joined the institution in 1974 as one of its founding members.
According to IsDB President Muhammad Sulaiman Al Jasser, speaking to Ennahar TV, the financing will be directed primarily toward large-scale infrastructure projects, most notably the expansion of the country’s railway system — a key component of the presidential strategy to strengthen connectivity between Algeria’s economic zones and stimulate national growth.
The IsDB and Algeria are also reinforcing their strategic cooperation through a new multi-year framework focused on improving national competitiveness, encouraging private-sector development, strengthening human capital, and expanding regional integration.
Algeria’s Railway Ambitions
Last year, Algeria announced an ambitious plan to construct 6,000 kilometers of additional railway lines across the country. President Abdelmadjid Tebboune described the initiative as critical to Algeria’s socio-economic progress.
Algeria confirmed its intention to cooperate with China on this project, which is expected to unlock mineral development, expand trade corridors, and boost economic activity nationwide.
“Our Chinese friends have agreed to this project, which will cover a distance of approximately 6,000 kilometers,” Tebboune said.
The railway expansion forms part of Algeria–China cooperation under the Belt and Road Initiative (BRI), China’s global infrastructure strategy aimed at strengthening trade flows through improved connectivity and logistics capacity.
The plan is expected to triple the total length of Algeria’s railway network by 2030, creating faster and more efficient routes that connect remote regions and unlock new economic opportunities.
Algeria already operates more than 5,000 kilometers of railway lines, but the planned expansion will support national modernization goals, promote industrial development, and improve regional transportation links.
Financing from the Islamic Development Bank will play a crucial role in implementing these infrastructure projects, supporting not only railway development but also a wider range of initiatives aimed at modernizing Algeria’s economy and strengthening its position in regional trade.
Source: Business Insider Africa
