Algeria Allocates DZD 125 Billion (~$926 Million) for National Road Network Upgrade in 2026
Takeaway
The DZD 125 billion (~$926 million) allocation for road network upgrades presents opportunities for construction and engineering firms. Investors should monitor tender announcements and project timelines, as delays could impact material demand and contractor revenues. The focus on improving port connectivity to the East-West highway will reduce transit times and logistics costs, benefiting import/export businesses.
Algeria is set to enhance its highway infrastructure in 2026 with a DZD 125 billion (~$926 million) investment dedicated to reinforcing and maintaining the national road network. Minister of Public Works and Basic Infrastructure, Abdelkader Djellaoui, announced the allocation during a session addressing parliamentary questions. The plan includes eliminating 29 black spots to reduce traffic accidents and improve road safety.
Algeria's 2026 finance law underscores a commitment to infrastructure investment, focusing on rail transport, water systems, and national connectivity. The government is relying on state-led capital spending to support industrial expansion, resource logistics, and regional integration. This follows the completion of the 53-kilometer North-South Highway connecting Chiffa in Blida Province to Berrouaghia in Médéa Province in July 2025, which significantly reduced travel time between the two cities. The highway includes two long tunnels, 41 bridges, 175 culverts, and 10 interchanges.
The Ministry of Public Works is also planning new expressway connections to the East-West Highway to reduce congestion and improve traffic flow. A 60km highway linking El Milia and Didouche Mourad in Jijel Province is planned to improve transport connections to the east of the country. Additionally, $124.7 million will be allocated to widen the RN7 road connecting Maghnia and Marsat Ben M'hidi to address safety issues and improve traffic flow. Another $62.4 million has been earmarked for constructing a 58km coastal road linking Ghazaouet and Marsat Ben Mhidi, divided into four sections handled by different contractors.
These infrastructure projects are expected to benefit construction companies and equipment suppliers. Improved road networks will facilitate trade and reduce logistics costs for various sectors, including agriculture and industry. The focus on eliminating black spots and improving road safety will reduce accident rates, benefiting commuters and transportation companies.
Looking ahead, keep an eye on the progress of the various road projects outlined in the 2026 budget, particularly the RN1 rehabilitation and the construction of new expressways. Any delays in project execution could impact trade flows and economic growth. The completion of the 35km road linking Guelma with the East-West Highway, with the first 18km stretch between Guelma and Nechmaya slated to begin soon, will be a key indicator of progress.