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The African Development Bank (AfDB) and the European Investment Bank (EIB) have signed a major US$275 million financing agreement to modernize and expand Mauritania’s key mining railway corridor, a strategic move expected to boost the nation’s iron ore output and export capacity.
Unveiled during the African Investment Forum Market Days in Rabat, the package includes US$150 million from AfDB and US$125 million from EIB. The funds will support a major infrastructure upgrade by La Société Nationale Industrielle et Minière (SNIM), the country’s largest employer and a major force in Africa’s mining industry.
AfDB President Dr. Sidi Ould Tah hailed the initiative as the beginning of “a new chapter” in the institution’s 45-year collaboration with SNIM. He explained that the project would overhaul the current railway, extend the network to new mining zones, and equip SNIM with modern locomotives and maintenance facilities—boosting capacity by an estimated 20 million tonnes per year.
The investment supports AfDB’s goals of promoting private sector expansion, job creation, and climate-resilient infrastructure.
EU Ambassador to Morocco, H.E. Dimiter Tzantchev, reaffirmed the EU’s backing for Mauritania under its Global Gateway Strategy, noting that the project will strengthen iron ore transport and add value to the country’s mining industry.
EIB Global Director General Andrew McDowell highlighted the long-standing partnership between the Bank and Mauritania, dating back to 1968, stressing that the operation aligns with AU and EU priorities for inclusive and integrated economic development.
Mauritania’s Minister of Economic Affairs and Development, H.E. Abdallahi Ould Souleymane Ould Cheikh Sidiya, said the works would include a 42-kilometre railway extension, acquisition of new rolling stock, and upgraded maintenance capacity—enabling the transport of an additional 22 million tonnes of ore annually.
SNIM CEO Mohamed Vall Mohamed Telmidy called the initiative “structural and transformative,” thanking both financial institutions for their support and emphasizing its importance for the company’s long-term production goals.
The financing deal is expected to drive industrial growth, generate employment, and reinforce Mauritania’s status as a major global iron ore exporter while advancing sustainable development objectives.
Source: Citinews