Mauritania Roundup: $200 million gas power plant, EU partnership, octopus season price hikes

Stable cooperation between the EU and Mauritania

EU Commissioner for International Partnerships Jozef Síkela has signed a €100 million budget support agreement during his inaugural mission to Mauritania. This agreement aims to bolster the nation's economic resilience, promote green energy initiatives, and improve migration management as part of a more extensive €210 million package. Key discussions with President Mohamed Ould Cheikh El Ghazouani revolved around the Global Gateway strategy, which seeks to facilitate sustainable development and energy diversification through collaborations in digitalization, renewable energy, and sustainable fisheries. The emphasis on long-term partnerships underlines the EU's commitment to ensuring stability in Mauritania, directly linked to regional security dynamics and an ambition to mobilise up to €300 billion globally for infrastructure investments adhering to social and environmental standards, Reports the European Commission.

$200 million gas power plant

The Madkour Group from Egypt is committing over $200 million to establish a natural gas power plant in Mauritania, with a capacity ranging from 160-180 MW, aimed at alleviating energy shortages and stimulating industrial expansion. Expected completion by 2025, this initiative promises to use cleaner energy, reducing carbon emissions while stabilising energy supply and attracting additional investments. Moreover, this investment not only enhances job creation but also fortifies economic ties between Egypt and Mauritania, reflecting broader strategic goals including industrialisation and regional collaboration, reports CEO Today.

$150m loan funds new trains for Mauritania's iron ore giant

Adding to the financial backing of Mauritania's infrastructure, the African Development Bank has approved a $150 million loan dedicated to expanding the railway capacity of the Société Nationale Industrielle et Minière (SNIM), a state iron ore company, indicating a significant push towards improving the nation's logistical capabilities, according to Mining Magazine.

Morocco’s octopus season soon kicks off with Mauritania prices high

Morocco anticipates the commencement of its winter octopus fishing season on January 1, with projections suggesting robust initial catches, emphasising the country’s ongoing commitment to enhancing its marine resource management practices, reports Under Current News.

IMF projects climate issues may affect Maritania's economy

The IMF's latest assessment of Mauritania's economy projects a 4.6% GDP increase for the year, a slowdown expected to continue into 2025 and 2026 due to decreased extractive activities. Despite this, Mauritania remains resilient but vulnerable to extreme weather and regional instability. According to AMBA, the IMF advises maintaining a prudent fiscal policy and simplifying tax rules to boost infrastructure investment and social spending while keeping debt sustainable. Consequently, the IMF has released USD 47.4 million in new financial support.