The African Development Bank (AfDB) has approved a loan of $878m for a 230km railway line in Algeria running from Ghardaïa to El Menia in the central north of the country.

The section is the southern phase of a 495km railway that runs from Ghardaïa north to Laghouat.

The project aims to boost agriculture and mining, bringing production closer to markets and encouraging logistics, construction and public works in provinces, or wilayas, along the corridor.

The route aims to improve regional integration along the Trans-Saharan railway corridor from Algiers to Tamanrasset in the south of the country.

Work will be implemented by Algeria’s Ministry of Public Works and Basic Infrastructure.

Abdoulkader Dileita, the AfDB’s 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.”