AfDB–EIB approve US$275m financing to expand Mauritania’s mining railway corridor and boost iron ore exports

The African Development Bank (AfDB) and the European Investment Bank (EIB) have approved a combined US$275 million financing package to modernise and expand Mauritania’s vital mining railway corridor, a major step expected to significantly increase the country’s iron ore production and export capacity.

Announced during the African Investment Forum Market Days in Rabat, the deal allocates US$150 million from AfDB and US$125 million from EIB to support the large-scale investment programme of La Société Nationale Industrielle et Minière (SNIM), Mauritania’s biggest employer and a central force in the continent’s mining industry.

AfDB President Dr Sidi Ould Tah described the project as a milestone in the Bank’s 45-year partnership with SNIM.

He said the investment will reinforce Mauritania’s logistical infrastructure, strengthen global competitiveness and unlock new mining opportunities.

According to him, the programme will rehabilitate the existing railway, extend the network to new mining zones and equip SNIM with modern locomotives and advanced maintenance systems, improvements expected to raise logistical capacity by 20 million tonnes per year.

The initiative supports AfDB’s priorities of promoting private sector growth, expanding employment and enhancing climate resilience through sustainable infrastructure.

EU Ambassador to Morocco, H.E. Dimiter Tzantchev, said the investment aligns with the EU’s Global Gateway Strategy, adding that modernising iron ore transport will increase the value of Mauritania’s mineral industry while supporting regional stability and long-term growth.

EIB Global Director General Andrew McDowell noted that the EIB’s partnership with Mauritania dates back to 1968.

He said the operation is consistent with the African Union’s inclusive growth agenda and the EU’s external investment strategy, demonstrating how African and European partners can deliver impactful development outcomes.

Mauritania’s Minister of Economic Affairs and Development, H.E. Abdallahi Ould Souleymane Ould Cheikh Sidiya, welcomed the financing, describing it as essential to national progress.

He confirmed that the project includes a 42-kilometre railway extension, acquisition of modern rolling stock and improvements to maintenance facilities — upgrades enabling the transport of an additional 22 million tonnes of ore each year.

SNIM CEO Mohamed Vall Mohamed Telmidy called the project structural and transformative, saying improved logistics are central to the company’s strategic ambitions.

He expressed gratitude to AfDB and EIB, stressing that their support strengthens SNIM’s ability to achieve its production targets.

The agreement is expected to accelerate industrial growth, create employment opportunities and consolidate Mauritania’s position as a leading global iron ore exporter, while contributing to sustainable and climate-resilient development.