Algeria's railway project, which connects the northern region to the far southern region of Tmenğest, is set to become a major economic driver for the country. According to Ismaïl Hamrouni, head of the Investment and International Cooperation Council, the project is a strategic game-changer in Algeria's economic development geography. The project, which has been approved by the African Development Bank (AfDB), is expected to have a significant impact on the country's economy.
The project, which is expected to be completed by the end of 2028, will connect the northern region to the far southern region of Tmenğest, reducing transportation costs and opening up new economic opportunities. Hamrouni noted that Algeria, as a founding member and major shareholder of the AfDB, has opted for concessional financing to ensure flexible repayment terms and support continental partnerships. This loan will enable Algeria to provide financial flows and alleviate pressure on the public treasury and local development budgets.
The project is part of a larger plan to develop Algeria's railway network and improve the country's transportation infrastructure. President Abdelmadjid Tebboune has instructed the relevant authorities to accelerate the project's implementation and ensure its completion within the set timeframe. Hamrouni praised the President's decision to entrust national companies with the project's execution, highlighting their expertise and capabilities in managing large-scale projects.
The project is expected to have a significant impact on the country's economy, particularly in the southern regions. Hamrouni noted that the project will reduce transportation costs by over 40%, which will have a positive impact on the prices of goods and citizens' purchasing power. The project will also connect energy, mining, and agricultural sectors to the railway network, enabling the transportation of raw materials and products from extraction areas to factories, processing plants, and ports for export.
The project is also expected to promote regional integration and African depth. Hamrouni noted that the Tmenğest region will become a hub for logistics and trade, connecting Algeria to the Sahel region and West Africa. The project will also support the implementation of the African Continental Free Trade Area (AfCFTA) and the development of the Trans-Saharan Highway.
However, the project's implementation faces several challenges, including the harsh desert terrain. Hamrouni noted that the project's execution requires advanced engineering practices to mitigate the risks associated with sand drifts and protect the railway tracks. The project's completion within the set timeframe will require close monitoring and coordination among the relevant authorities.
The project's success is crucial for Algeria's economic growth and development. Hamrouni emphasized that the project will create new economic opportunities, promote regional integration, and support the country's emergence as a major economic player in Africa. The project's impact will be closely watched by investors, policymakers, and citizens alike.
Key points
- The project aims to reduce transportation costs by over 40% and promote regional integration.
- The project is expected to be completed by the end of 2028.
- The project will connect energy, mining, and agricultural sectors to the railway network.
