AfDB and EIB Commit $275M to Boost Mauritania Mining Railway Investment
The African Development Bank (AfDB) and European Investment Bank (EIB) have joined forces in a landmark $275 million financing deal to modernise and expand Mauritania’s vital mining railway corridor. The initiative aims to enhance the country’s iron ore production and export capacity, reinforcing Mauritania’s position as a key player in Africa’s mining sector. AfDB will contribute $150 million, while EIB provides $125 million to support La Société Nationale Industrielle et Minière (SNIM), Mauritania’s largest employer.
Announcing the agreement at the African Investment Forum Market Days in Rabat, AfDB President Dr. Sidi Ould Tah hailed the project as “a new chapter” in the Bank’s 45-year partnership with SNIM. The investment will rehabilitate existing railway lines, extend the network to untapped mining areas, and equip SNIM with modern locomotives and maintenance systems. These upgrades are projected to increase logistical capacity by 20 million tonnes annually, strengthening Mauritania’s competitiveness in global markets.
The project aligns with AfDB’s broader strategy to promote private sector growth, create jobs, and foster climate-resilient infrastructure. EU Ambassador to Morocco, H.E. Dimiter Tzantchev, emphasized that the financing reflects the EU’s Global Gateway Strategy, supporting sustainable development and regional stability. “This project will modernize iron ore transport and better value Mauritania’s mineral industry,” he said.
EIB Director General Andrew McDowell highlighted the institution’s long-standing partnership with Mauritania since 1968 and noted that the project contributes to economic integration and connectivity across Africa. Mauritania’s Minister of Economic Affairs, H.E. Abdallahi Ould Souleymane Ould Cheikh Sidiya, described the investment as critical for national development, including a 42-kilometer railway extension, new rolling stock, and upgraded maintenance facilities, which will enable the transport of an additional 22 million tonnes of ore annually.
SNIM CEO Mohamed Vall Mohamed Telmidy thanked AfDB and EIB for their confidence, calling the project “structural and transformative” for Mauritania’s economy. The $275 million investment is expected to accelerate industrial growth, create jobs, and reinforce Mauritania’s status as a leading iron ore exporter, all while supporting sustainable, climate-resilient development.
source: citi newsroom