Algeria’s urban transport sector is regaining momentum as long-stalled tramway projects in Algiers, Oran, and Constantine move back into active development. According to Railway Gazette International, the revival follows the securing of fresh funding and the resolution of contractual disputes that had frozen construction for over two years. For entrepreneurs, business founders, and the Algerian diaspora, this signals renewed opportunities in infrastructure, supply chains, and urban mobility services.
The Algiers tramway, a 23.2-kilometer network connecting the city center to suburban areas like Bab Ezzouar and Bordj El Kiffan, had been halted since 2021 due to payment delays from the Algerian government to the consortium led by Alstom and Turkish firm Yapi Merkezi. The project, initially launched in 2011, was designed to serve 180,000 daily passengers, reducing road congestion and improving access to economic hubs. With funding now unblocked, Alstom has resumed work on the remaining 5 kilometers of track, including the final section to Bordj El Kiffan, expected to be operational by late 2024.
In Oran, the 18.7-kilometer tramway, which connects the city’s eastern and western districts, faced similar delays. The project, awarded to a consortium of Alstom and Colas Rail, had been 80% complete when work stopped in 2022. According to Railway Gazette International, the Algerian Ministry of Transport has allocated an additional 12 billion dinars (approximately $90 million) to finalize the network, including the installation of signaling systems and electrification. The Oran tramway is now set to enter commercial service in early 2025, with a projected ridership of 120,000 passengers per day.
Constantine, Algeria’s third-largest city, is also seeing progress on its 8.9-kilometer tramway line, which links the university district to the city center. The project, led by Spanish firm CAF and local contractor Cosider, had been stalled since 2020 due to disputes over land acquisition and cost overruns. The Algerian government has since revised the budget to 25 billion dinars ($185 million) and accelerated expropriation procedures. Work on the Constantine tramway is now expected to resume in the second quarter of 2023, with completion targeted for 2026.
Economic ripple effects for local businesses
The projects also open doors for startups in digital mobility. The Algerian government has mandated that all three tramways integrate smart ticketing systems and real-time passenger information apps. Local tech firms, such as Algiers-based startup Djezzy Labs, are already in discussions with Alstom to develop mobile payment solutions for the Algiers network. Diaspora entrepreneurs with expertise in fintech or IoT could find opportunities to partner with international contractors or launch complementary services, such as ride-sharing integrations or advertising platforms for station displays.
Workforce and skills development
Alstom has already partnered with the National Polytechnic School of Algiers to launch a certification program for tramway technicians, with the first cohort of 200 students set to graduate in 2024. Entrepreneurs in vocational training could capitalize on this demand by offering upskilling courses or apprenticeship programs. Diaspora professionals with experience in rail engineering or project management may also find opportunities to consult or return to Algeria to fill technical gaps.
Urban transformation and real estate
For small business owners, the tramways could drive foot traffic to shops and cafes near stations. In Oran, the tramway’s route passes through densely populated neighborhoods like Sidi El Houari, where local entrepreneurs are preparing to launch food delivery services and pop-up kiosks. The Constantine tramway, meanwhile, will link the city’s historic center to its growing tech park, potentially boosting demand for co-working spaces and business incubators.
Challenges ahead
Key takeaway for entrepreneurs
Algeria’s tramway projects restart offers concrete opportunities in construction, tech, and real estate, with local sourcing requirements creating demand for Algerian suppliers. Diaspora professionals can leverage expertise in rail engineering or digital mobility to fill technical gaps, while startups should focus on smart ticketing, vocational training, and urban services. However, entrepreneurs must plan for potential funding delays and prioritize partnerships with international contractors to mitigate risks.
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