AfDB, EIB sign US$275m financing deal to modernize Mauritania’s strategic mining railway corridor

The African Development Bank (AfDB) and the European Investment Bank (EIB) have signed a landmark US$275 million financing package to modernize and expand Mauritania’s key mining railway corridor, a move set to significantly boost the country’s iron ore output and export capacity.

Announced during the African Investment Forum Market Days in Rabat, the agreement will see AfDB contribute US$150 million and EIB provide US$125 million to support a major investment programme by La Société Nationale Industrielle et Minière (SNIM), Mauritania’s largest employer and a leading force in Africa‘s mining industry.

AfDB President Dr Sidi Ould Tah hailed the deal as “a new chapter” in the Bank’s 45-year partnership with SNIM, stressing that the investment would strengthen Mauritania’s logistical backbone and bolster its competitiveness on the global market.

“This financing will enable the rehabilitation of the existing railway line, extend the network to new mining areas, and equip SNIM with modern locomotives and maintenance systems,” he said.

“It will increase logistical capacity by about 20 million tones per year, positioning SNIM as a true African champion.”

The project aligns with AfDB’s priorities to stimulate private sector growth, create jobs and enhance climate resilience through sustainable infrastructure investment.

H.E. Dimiter Tzantchev, EU Ambassador to Morocco, highlighted the EU’s commitment to Mauritania as a strategic partner, describing the investment as part of the EU’s Global Gateway Strategy.

“This project will modernize iron ore transport and better value Mauritania’s mineral industry,” he said. “It reflects our shared vision for regional stability and sustainable growth.”

Andrew McDowell, Director General of EIB Global, reiterated the Bank’s longstanding relationship with Mauritania, dating back to 1968, and reaffirmed its support for projects that promote connectivity and economic integration.

“This operation is fully aligned with the African Union’s agenda for inclusive growth and the EU’s external investment strategy,” he said. “It demonstrates how European and African partners can deliver tangible impact on the ground.”