The African Development Bank (AfDB) and the European Investment Bank (EIB) have signed a landmark financing package of US$275 million to modernise and expand Mauritania’s strategic mining railway corridor, a move expected to significantly boost the country’s iron ore production and exports.

The agreement, announced during the African Investment Forum Market Days in Rabat, will see AfDB provide US$150 million and EIB contribute US$125 million to support the vast investment programme of La Société Nationale Industrielle et Minière (SNIM), Mauritania’s largest employer and a key player in Africa’s mining sector.

AfDB President Dr. Sidi Ould Tah described the project as “a new chapter” in the Bank’s 45-year partnership with SNIM, noting that the investment would strengthen Mauritania’s logistical backbone and enhance its competitiveness in global markets.

“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,” Dr. Tah said.

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

The project aligns with AfDB’s strategic priorities to promote private sector growth, create jobs, and improve climate resilience through sustainable infrastructure development.

H.E. Dimiter Tzantchev, EU Ambassador to Morocco, emphasized the European Union’s commitment to Mauritania as a strategic partner, stating that the investment falls under 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, highlighted the long-standing partnership between EIB and Mauritania, dating back to 1968, and reaffirmed the Bank’s support for projects that foster 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,” McDowell noted. “It demonstrates how European and African partners can deliver tangible impact on the ground.”

Mauritania’s Minister of Economic Affairs and Development, H.E. Abdallahi Ould Souleymane Ould Cheikh Sidiya, welcomed the investment, stressing its importance for national development.

“The works include extending the railway by 42 kilometers, acquiring modern rolling stock, and improving maintenance facilities,” he said.

“This will allow the transport of an additional 22 million tonnes of ore annually.”

The SNIM CEO, Mr. Mohamed Vall Mohamed Telmidy, expressed gratitude to AfDB and EIB for their confidence, calling the project “structural and transformative” for Mauritania’s economy.

“The initiative to improve our logistics chain represents an important pillar of our strategic program. Its development contributes to the realization of our production objectives. We are particularly grateful to our partners EIB Global and AfDB for their unwavering support,” he said.

The financing agreement is expected to accelerate Mauritania’s industrial growth, create jobs, and strengthen its position as a leading iron ore exporter, while supporting global efforts toward sustainable and climate-resilient development.