2023 Investment Climate Statements: Mauritania

Policies Towards Foreign Direct Investment

The Government of the Islamic Republic of Mauritania (GIRM) has been proactive in attracting more Foreign Direct Investment (FDI) especially in the mining, hydrocarbon, agriculture and fishing sectors, and signed several MOUs with international firms mainly from Australia, France, UK, the Gulf and Turkey. Mauritania is rich in minerals, has one of Africa’s richest fishing grounds and has tremendous potential in renewable energy, natural gas, and agriculture. Mauritania’s geographical position makes it a potential hub between Europe, North Africa, and Sub-Saharan Africa.

The GIRM promotes international investment through the Agency for the Promotion of Investment in Mauritania (APIM), which was launched in 2021. APIM aims to attract FDI to accelerate the government’s economic development plan. Through APIM, the government hopes to make Mauritania the new investment frontier for the Sahel by improving the legal Investment Code and providing a stable business environment. APIM is the sole government entity in charge of national and foreign investment. Part of APIM’s role and responsibility is to facilitate the registration process & administrative work for national and foreign investors through the Guichet –Unique, a one-stop shop that coordinates with businesses to expedite the registration process. In addition to APIM, the Economic Governance and Investment Management Support Project (PA2GI) — an African Development Bank project active from 2021-2024 – will prioritize public and private investment in strategic sectors of the President’s Economic Recovery Plan (ProPEP). It is an institutional support project intended to assist Mauritania in its efforts to ensure robust, sustainable, and job-creating economic growth. It involves striving to ensure public investment optimization, private investment promotion and the strengthening of tax and land governance in support of Mauritania’s Strategy for Accelerated Growth and Shared Prosperity (SCAPP) and President Ghazouani’s Economic Recovery Plan (ProPEP).

There is no law prohibiting or limiting foreign investment in any sector of the economy. There are no laws or regulations specifically authorizing private firms to adopt articles of incorporation or association, which limit or prohibit foreign investment, participation, or control. There are no other practices by private firms to restrict foreign investment. The government continues to prioritize foreign investment in all sectors of the economy and is working closely with the International Monetary Fund (IMF), the World Bank, and the international donor community to improve basic infrastructure and to update laws and regulations.

Limits on Foreign Control and Right to Private Ownership and Establishment

Both domestic and foreign entities can engage in all forms of remunerative activities, except activities involving selling pork meat or alcohol. There are no limits on the transfer of profit or repatriation of capital, royalties, or service fees, provided the investments were authorized and made through official channels. The government performs mandatory screening of foreign investments. These screening mechanisms are routine and non-discriminatory. The “Guichet Unique” created in 2020 is a one-stop shop that takes care of all administrative needs related to registering a company. The Guichet Unique provides the administrative review for all sectors, except for the petroleum and mining sectors, which require approval from a cabinet meeting led by the president.

Other Investment Policy Reviews

The latest investment policy review occurred in February 2008. The United Nations Conference on Trade and Development (UNCTAD) review is available online, in French, at: https://unctad.org/publication/investment-policy-review-mauritania . The report recommended that Mauritania diversify its economy, improve its investment potential through increasing revenue generated by the exploitation of natural resources, accelerate required reforms, and enhance the business and investment climate. The Government of the Islamic Republic of Mauritania (GIRM) adopted a new electricity code on December 12, 2022, which replaced the January 2001 electricity code.  This new code supports Mauritania’s energy transition from traditional carbon-based energy to cleaner energies.  The GIRM plans to optimize the power sector by incorporating the great potential of renewable energies and the power produced from the Independent Power Producers (IPPs) into its national grid.  The Ministry of Petroleum, Mines and Energy (MPME) passed a new electrical code in late 2022, and used the opportunity to restructure several institutions to create a legal framework that will better comply with the country’s growing needs. The new electrical code promotes the production of electricity from renewable and clean energy sources, including green hydrogen, and prioritizes private and public investments, including the expansion electrical access in rural areas.

In May 2018, Mauritania underwent its third World Trade Organization (WTO) trade policy review. The report is available online at ( https://www.wto.org/english/tratop_e/tpr_e/tp471_e.htm  ). The report states that, since its second Trade Policy Review (TPR) in 2011, Mauritania has had five years of products (chiefly iron ore) and massive public investment in the new airport, the extension of the port of Nouakchott, and road infrastructure. In addition, the report indicates that Mauritania’s goods imports and export mechanism has been modernized and simplified since 2011.

There are no civil society organizations within Mauritania and neighboring counties that have provided reviews of investment policy-related concerns. Sporadically, Members of Parliament will request reviews of existing contracts (mainly in the fishing sector), but thus far, no formal results have been shared.

Business Facilitation

The GIRM continues to amend its laws and regulations to facilitate business registration. Under the Ministry of Economy, the Public-Private Partnership Unit is responsible for providing technical support and expertise to the inter-ministerial committee during the process of identification, preparation, development, and execution of PPP projects in Mauritania. Created in February 2020, this inter-ministerial committee consists of the Prime Minister, Minister of Commerce, Minister of Economy, Minister of Finance, and the Private Sector Association. The committee is chaired by the Prime Minister and is charged with improving the business climate and driving investment.

In March 2021, the government created the Agency for Promotion of Investment in Mauritania to facilitate the administrative work of foreign investors. APIM helps investors navigate the business permit process, various administrative procedures, and the rules and regulations concerning foreign workforces.
To further expedite the business registration process, the government created the one-stop shop Guichet Unique for the Nouadhibou Free Trade Zone Authority (ZFN- in French) (http://www.ndbfreezone.mr/). The ZFN provides investors with land and premises, with high quality development and infrastructure, to house industrial, service or trade and packaging companies. Part of its advantage include the ability to import any production at zero duty and re-export to destination of choice duty-free. Since becoming a stand-alone unit, the Guichet Unique (https://www.guichetunique-mr.info/) is mandated to help set up companies and complete all business registration. This one-stop shop has started digitizing the business registration process which has led to the reduction of the standard registration time from seven days to 48 hours. The government is hoping this move to create an independent one-stop shop will serve to further encourage FDI.

Transparency of the Regulatory System

The government continues to adopt laws and regulations to improve transparency. During the review period, the government passed the 2023 budget through the parliament, accessible to the public via the Ministry of Finance portal (https://www.finances.gov.mr/). The budget aims to boost the economic recovery and longer-term inclusive growth. The accounting documents provided a complete picture of the government’s planned expenditures and revenue streams, including natural resource revenues. Budget documents were generally prepared according to internationally accepted principles. The government holds full authority in allocating the licenses for all natural resources and controls their finances. The criteria and procedures by which the government awards natural resource extraction contracts or licenses are specified in Mauritania’s investment code, mining code, and a new hydrocarbon law. Basic information on tenders is publicly available on government websites, through the relevant ministry portal, or via the private job search platform (https://beta.mr/beta/liste_offres/3).

There is no law or policy impeding foreign investment in Mauritania. However, there is a complex and often overlapping system of permits and licenses required to establish and run a business. There continues to be a lack of transparency in implementation of the legal and regulatory policies.

The government does not require companies to do an environmental, social and governance (ESG) disclosure to facilitate transparency and/or help investors and consumers distinguish between high- and low-quality investments.

Post is not aware of any informal regulatory processes managed by nongovernmental organizations or private sector associations, and laws and regulations do not discriminate against foreign investment.

International Regulatory Considerations

Please see Section 2- Bilateral Investment and Taxation Treaties

Legal System and Judicial Independence

The Mauritanian judicial system combines French and Islamic (Malikite school) judicial systems. The constitution guarantees the independence of the judiciary (Article 89), and an organic law also protects judges from undue influence. Civil and Commercial Codes exist and are designed to protect contracts, although dispute settlement can be difficult and court enforcement is slow and often inconsistent. The judicial system remains weak and unpredictable in its application of the law, due in part to the training judges receive in two separate and distinct legal systems: Shari’a law and laws modeled after the French legal system. Judges remain undercompensated and susceptible to tribal pressures and bribery. Specialized commercial law courts exist, but judges sometimes lack training and experience in commercial and financial law. Some judges may only have formal training in the Shari’a legal system, while others are only familiar with the French civil law system. A lack of standardization of applicable legal knowledge in the judiciary leads to inefficiency in the execution of judgments in a timely and efficient manner. Laws and decrees related to commercial and financial sectors exist, but they are not always publicly available.

Most judgments are not issued within prescribed time limits and records are not always well maintained. Judgments of foreign courts are recognized by national courts, but enforcement is limited. During the last few years, the government has taken steps to provide training to judges and lawyers as an attempt to professionalize the system to reduce the backlog and work through cases in a more efficient manner. In 2017, the GIRM passed a small new claims law that covers cases valued at less than $11,000. In January 2020, the government opened a new international center for mediation and arbitration. The center provides an alternative legal office for settlement of investment disputes and allows arbitration and mediation from international courts.

Laws and Regulations on Foreign Direct Investment

There were no new major investment laws or judicial decisions ratified last year. However, the government launched the Investment Promotion Agency (APIM in French) under the Ministry of Economy to develop and facilitate procedures and processes related to investment. The investment code, which was last updated in June 2012, was designed to encourage direct investment by enhancing the security of investments and facilitating administrative procedures. The code provides for free repatriation of foreign capital and wages for foreign employees. The code also created free points of importation and export incentives. Small and medium enterprises (SME), which register through OPPS, do not pay corporate taxes or customs duties. The Mauritania government is currently working on drafting a new investment code expected to be finalized last quarter of 2023/first quarter of 2024. This new code will replace the 2012 code.

Competition and Antitrust Laws

The Ministry of Economy’s Office of Procurement Commission of the Economic and Finance Sectors is the government agency that reviews tenders and bids in accordance with the law and regulations. Suppliers for large government contracts are selected through a tender process initiated at the ministry level. Invitations for some tenders are publicly announced in local newspapers and on government websites. After issuing an invitation for tenders, the Ministry of Economy’s commission in charge of reviewing tenders selects the offer that best fulfills government requirements. If two offers, i.e., one from a foreign company and one from a Mauritanian company, are otherwise considered equal, statutes require that the government award the tender to the Mauritanian company. In practice, this has resulted in contracts awarded to companies that have strong ties to government officials and tribal leaders, regardless of the merits of an individual offer. Preferential treatment remains common in government procurement, despite the government’s recent efforts to promote transparency in the public sector.

To make tenders more transparent, the National Assembly adopted a bill on December 21, 2021, the Public Procurement Code on December 21, 2021, No. 21-025 repealing and replacing the law No. 044-2010 that was enacted On July 2010. This new code will help the government become more transparent in handling tenders. The current code is structured around:

• Reducing the measures of the preliminary control of the public procurement control body.
• Clarifying the circumstances in which the awarding of contracts by mutual agreement becomes possible.
• Excluding from the provisions of this law, public contracts related to defense and national security needs and procurement operations in emergency situations.
• Promoting small and medium-sized enterprises by facilitating their access to public contracts.
• Making procedures more flexible to speed up the process of concluding public contracts and handling complaints.

Expropriation and Compensation

The revised Investment Code provides more property guarantees and protection to business owners. The Code protects private companies against nationalization, expropriation, and requisition. However, if a foreign enterprise is facing difficulties, the government can propose an expropriation plan to avoid bankruptcy and to protect jobs of local employees, with fair and equitable compensation.

The only known case of expropriation since Mauritania’s independence was the nationalization of the French mining MIFERMA in November 1974. In that case, the two parties agreed on a compensation plan.

Dispute Settlement

ICSID Convention and New York Convention

In 1966, Mauritania ratified the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. In 1997, Mauritania became a signatory to the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). However, there is no specific legislation to ensure enforcement.

Investor-State Dispute Settlement

The most recent investment dispute between the Mauritanian government and a foreign investor occurred in 2021. In March 2021, the Mauritanian Copper Mines (MCM) a subsidiary of Canada’s First Quantum Minerals, filed an International Centre for Settlement of Investment Disputes (ICSID) claim against Mauritania over a copper and gold mine in the Northern part of Mauritania. The claim brought to the ICSID was registered on March 4, 2021, MCM owns the Guelb Moghrein copper and gold mining concession that is in Akjoujt, about 250 kilometers from the capital city Nouakchott. MCM started production in 2006, included almost 600,00 tons of copper, gold, and magnetite. Details of the claim have not been disclosed.

International Commercial Arbitration and Foreign Courts

Judgments of foreign courts are not consistently applied. The government accepts international arbitration of investment disputes between foreign investors and government authorities. Judgments of foreign courts are accepted by the local courts, but enforcement is limited. In the past, issues were referred to the International Center for Settlement of Investment Disputes (ICSID), of which Mauritania has been a member since 1965.

Settling disputes through the courts continues to be a long and complicated process. Inadequate laws and poor administration are the key source of legal disputes encountered in the country. The duration of investment disputes is subject to numerous appeals before reaching a final verdict. Though the government is looking for ways to streamline the system by providing training to judges and lawyers, the court procedures remain long and complicated.

Though there are no recent reports on disputes involving State-Owned Enterprises (SOE). It is likely that domestic courts would favor SOEs during a dispute.

The Mauritanian government guarantees companies that the tax, customs, and legal regulations in force at the time of issuance of an Investment Certificate will remain applicable to them for a period of 20 years. Likewise, in theory, any favorable changes to the corporate tax or customs laws during that guaranteed period will be applicable to the investor.

Bankruptcy Regulations

The country has bankruptcy laws which carry the potential for criminal penalties. Mauritania’s bankruptcy laws were last updated in 2001. The bankruptcy law allows for the reorganization or restructuring of a business. There are very few reported cases of these laws being applied.

Investment Incentives

Investment incentives such as free land, deferred and reduced taxes, and tax-free importation of materials and equipment are available to encourage foreign investors. The Ministry of Economy offers tax benefits, including exemptions in some instances, to enterprises in Special Economic Zones (SEZs) and to some companies in priority sectors throughout the country (e.g., mining, hydrocarbons, and fishing). The Investment Code outlines standard investment incentives, but foreign investors may negotiate other incentives directly with the government. In 2018, the government adopted the Public-Private Partnerships (PPPs) law. This law supports the 2017 budget diversification agenda through increased private sector participation in non-extractives sectors. The law provides legal and regulatory framework for PPPs participation in the national economy. It also addresses land tenure and property rights issues to facilitate credit access. According to World Bank and IMF analysis, the PPP law will enable the country to reduce reliance on commodities and raises long-term growth prospects in a more sustained and inclusive manner.

Although Mauritania has high energy potential, the government does not offer any incentives, such as feed-in tariffs, discounts on electricity rates, or tax incentives, for clean energy investments (including renewable energy, energy storage, energy efficiency, clean hydrogen).

On December 12, 2022 Mauritania issued a new electricity code to modernize its power sector. With the new electricity code, Mauritania now has the legislative framework to restructure three key power sector institutions:  a) the Mauritanian National Electricity Company (SOMELEC), b) the Department of Electricity and Energy Management (DEME), and c) the Mauritanian Regulatory Authority (ARM) which will help the optimization of the new reform.

Foreign Trade Zones/Free Ports/Trade Facilitation

The Investment Code creates Special Economic Zones (Free Export Zone or Cluster of Development in the Interior https://www.ndbfreezone.mr/en/home/) by decree. SEZs are subject to continuous monitoring by the Customs Service in a manner specified in the decree. Nouadhibou, the commercial capital of Mauritania, is designated as a Free Trade Zone by the government. The Nouadhibou Free Trade Zone has its own regulatory structure. As of January 2020, the Nouadhibou Free Trade Zone has granted 750 authorizations for companies, primarily in the tourism, services, and fisheries sectors.

The Investment Code provides three main preferential tax regimes: Small and Medium Enterprises Regimes, which apply to any investment between $167,000 and $667,000; Free Export Zones/Clusters of Development; and Targeted Industries, which includes agriculture, artisanal fishing, tourism, renewable energy, and raw material processing. Land concessions allocated to companies located in Free Economic Zones will follow a rental rate determined by joint decision of the relevant Minister and the Minister of Economy, which sets land allocation prices. As for tax advantages, companies will be exempt from taxes, excluding personnel taxes such as for retirement and social security, if they have invested at least $1.6 million and generated at least 50 permanent jobs, and show a potential to export at least 80 percent of their goods or services.

Additionally, under the provisions in the revised Investment Code, companies will not be taxed on patents, licenses, property, or land, but rather assessed a single municipal tax that cannot exceed an annual amount of $16,000. Companies established in free zones are exempt from taxes on profits for the first five years. Additionally, companies established in free zones benefit from a total exemption of customs duties and taxes on the importation and export of goods and services.

Performance and Data Localization Requirements

The government mandates that companies may employ expatriate staff in no more than 10 percent of key managerial staff positions, in accordance with the Labor Code, and are required to have a plan in place to “Mauritanize” expatriate staff positions. Companies may hire expatriate staff above the 10% limit with authorization from the appropriate industry authority by establishing that no competent Mauritanian national is available for the vacancy. Foreign companies are required to transfer skills to local employees by providing training for lower-skilled jobs. The law is specifically geared toward extractive companies to encourage recruitment of Mauritanian nationals. It is important to note that this law has not yet been enforced with companies operating within the Nouadhibou Free Trade Zone Authority.

Current immigration laws do not discriminate nor are they considered to apply excessively onerous visa, residence, or work permit requirements inhibiting foreign investors’ mobility. However, some U.S. companies have expressed frustration with the difficulty in obtaining or renewing work and residency permits for their employees who are not Mauritanians.

The government imposes performance requirements as a condition for establishing, maintaining, or expanding an investment, or for access to tax and investment incentives. Foreign investors consistently report that government-sponsored requests for tenders lack coherence and transparency. The revised Investment Code requires investors to purchase from local sources if it is available and is of the same quality and price as could be purchased abroad. There is no requirement for investors to export a certain percentage of output or have access to foreign exchange only in relation to their exports. If imported “dumped” goods are deemed to be competing unfairly with a priority enterprise, the government will respond to industry requests for tariff surcharges, thus providing some potential protection from competition.

Expatriate staff members working for companies in accordance with the Labor Code are eligible to import, free of customs duties and taxes, their personal belongings and one passenger vehicle per household, under the regime of exceptional temporary admission (Admission Temporaire Exceptionelle or ATE). All sales, transfers, or withdrawals are subject to permission of customs officials.

The Mauritanian government does not have any requirements or a mechanism that impedes companies from transmitting data freely outside the country. There are no laws in place on local data storage.

Real Property

Property rights are protected under the Mauritanian Civil Code, which is modeled on the French code. It can be difficult to gain redress for grievances through the courts. Mortgages exist and are extended by commercial banks. There is a well-developed property registration system for land and real estate in most areas of the country, but land titling and tenure issues in southern Mauritania, particularly the area along the Senegal River, are the subject of much controversy. Investors should be fully aware of the history of the lands they are purchasing or renting and should verify that the local partner has the proper authority to sell/rent large tracts of land—particularly in this region—before agreeing to any deals. For instance, in early 2021, there was a case of an alleged land grab by local authorities in the villages of Mbagne and Ferala in southern Mauritania. The land was designated for a World Bank project but following regional protests, over ownership of the property, the World Bank withdrew. The World Bank placed the project on hold until the issue between the community and the government is resolved.

On June 19, 20XX, the Ministers of Economy and Rural Development visited Dar el Barka, one of the key agricultural sites in Mauritania, to announce a pilot program that the GIRM wants to implement in full cooperation and collaboration with the community.  As part of its plan to address the contentious issue of land titles, the government plans to ensure community involvement in the process of promoting agricultural business in what will hopefully be a win–win situation for both the government and community members.

The Ministry of Housing continues to digitize land licenses to provide more transparent land allocation. All information regarding the property titles is available at the Land Registry Agency housed at the Ministry of Housing, including information related to mortgages and other tax related matters. The Land Registry Agency performs due diligence prior to making the final title transfer. To register a property, owners need to have their notarized sale agreement along with the title certificate. There remains a large percentage (over 10 percent) of available owned land without a clear title. Even if property is legally purchased, there is always the possibility that the property is occupied by squatters.

Intellectual Property Rights

The legal protection of intellectual property rights (IPR) remains a relatively new concept in Mauritania. Those seeking legal redress for IPR infringements will find very little historical record of cases or legal structures in place to support such claims. There is no separate judicial circuit that specializes in IPR.

Mauritania is a member of the Multilateral Investment Guarantee Agency (MIGA) and the African Organization of Intellectual Property (OAPI). In joining the latter, member states agree to honor IPR principles and to establish uniform procedures of implementation for the following international agreements: the Paris Convention for the Protection of Industrial Property, the Berne Convention for the Protection of Literary and Artistic Works, the Hague Convention for the Registration of Designs and Industrial Models, the Lisbon Convention for the Protection and International Registration of Original Trade Names, the Washington Treaty on Patents, and the Vienna Treaty on the Registration of Trade Names. Mauritania signed and ratified the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) in 1994 but has yet to implement it. The government also signed and ratified the World Intellectual Property Organization (WIPO) Convention in 1976, but it has not signed or ratified the WIPO Internet treaties. The government is in the process of launching reforms related to property, product certification, and accreditation bodies to protect IPR. The Agency for Consumer Protection, housed at the Ministry of Commerce, oversees quality control and the prevention of sales of counterfeit goods in local markets, but its capabilities to track and enforce its regulations are very constrained.

Mauritania is not included in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List.

For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/

Capital Markets and Portfolio Investment

The government is favorable to portfolio investment. Private entities, whether foreign or national, have the right to freely establish, acquire, own, and/or dispose of interests in business enterprises and receive legal remuneration. Privatization and liberalization programs also helped put private enterprises on an equal footing with respect to access to markets and credit. In principle, government policies encourage the free flow of financial resources and do not place restrictions on access by foreign investors. Most foreign investors, however, prefer external financing due to the high interest rates and procedural complexities that prevail locally. Credit is often difficult to obtain due to a lax legal system to enforce regulations that build trust and guarantee credit return. There are no legal or policy restrictions on converting or transferring funds associated with investments. Investors are guaranteed the free transfer of convertible currencies at the legal market rate, subject to availability. Similarly, foreigners working in Mauritania are guaranteed the prompt transfer of their professional salaries.

Commercial bank loans are virtually the only type of credit instrument. There is no stock market or other public trading of shares in Mauritanian companies. Currently, individual proprietors, family groups, and partnerships generally hold companies and portfolio investments.

Money and Banking System

The IMF assisted Mauritania with the stabilization of the banking sector and as a result, access to domestic credit has become easier and cheaper. A proliferation of banks has fostered competition that contributed to the decline in interest rates from 30 percent in 2000 to 10 percent in 2018, to 6.5 percent in 2020, to an annual 5 percent as part of the Central Bank of Mauritania’s (BCM) measures to countering the effects of the global pandemic. This interest rate does not include origination costs and other fees.

Nevertheless, the banking system remains fragile due to liquidity constraints in the financial markets. The country’s five largest banks are estimated to have $100 million in combined reserves; however, these figures cannot be independently verified, making an evaluation of the banking system’s strength impossible. As of April 2023, 16 banks, national and foreign, operate in Mauritania, even though only 21 percent of the population hold bank accounts.

The Central Bank of Mauritania oversees regulating the Mauritanian banking industry, and the Central Bank has made reforms to streamline the financial sector’s compliance with international standards. The Central Bank performs yearly audits of Mauritanian banks. There are no restrictions enforced on foreigners who wish to obtain an individual or business banking account.

In 2018, the Central Bank of Mauritania lost all correspondent banking relationships with banks in the United States due to de-risking policies enforced by U.S. banks. The Central Bank subsequently was able to reestablish a correspondent banking relationship in 2019; however, there are still no private Mauritanian banks that have been able to do the same. Local branches of international banks (such as France’s Société Générale or Morocco’s Attijari) do maintain correspondent banking relationships with U.S. banks and are able to clear transactions in USD.

Foreign Exchange and Remittances

Foreign Exchange

There are no legal or policy restrictions on converting or transferring funds associated with investments. Investors are guaranteed the free transfer of convertible currencies at the legal market rate, subject to the availability of such currencies. Similarly, foreigners working in Mauritania are guaranteed the prompt transfer of their professional salaries. To transfer funds, investors are required to open a foreign exchange bank account in Mauritania. There are no maximum legal transaction limits for investors transferring money into or out of Mauritania, although regulations to withdraw money may be complicated in practice.

Businesses transfer money through the traditional Hawala system—they deposit their money in a Hawala store and designate a beneficiary for pick up. The Hawala system has become a reliable substitute to the high interest rates, long wait periods, and transaction fees imposed by local banks. Since the introduction of mobile money in 2020, the traditional hawala system has seen decline in its service due to the digitalization of cash transfer. Mobile money systems such as Bankily aim to modernize the banking and payment system in Mauritania. However, in 2019 the Central Bank closed 691 illegal money transfer points to restructure the financial sector. Currently, only nine agencies have a provisional authorization for transfer of funds. Individuals and companies may obtain hard currency through the informal market and commercial banks for the payment of purchases or the repatriation of dividends. If the bank has hard currency available, there is no delay in effect for remitting investment returns. However, if the bank does not have enough reserves, the hard currency must be obtained from the Central Bank to conduct the transfer. The Central Bank is required to prioritize government transfers, which could present further delays. Delays of one to three weeks, although relatively uncommon, can occur.

In January 2018, the government of Mauritania introduced a new currency. The new currency dropped a zero from the country’s previous currency; the value and the name of the currency remained the same, although the currency code changed from MRO to MRU. Local banks adapted their software, changed their checkbooks, and reconfigured their ATMs to bring them into compliance with the new currency. However, local vendors may still quote prices in the old currency (MRO).

In June 2021, the Mauritanian Parliament adopted the draft law related to electronic payment services. This long-awaited regulatory framework is important in creating an enabling regulatory environment for the uptake of digital finance in the country.

Remittance Policies

There is no limit on the inflow or outflow of funds for remittances of profits, debt service, capital, or capital gains. The local currency, the ouguiya, is freely convertible within Mauritania, but its exportation is not legally authorized. Hard currencies can be obtained from the Central Bank, local commercial banks, or within the parallel financial market in the informal sector. The Central Bank holds regular foreign exchange auctions, allowing market forces to fix the value of the ouguiya.

Sovereign Wealth Funds

The Central Bank administers the National Fund for Hydrocarbon Reserves, a sovereign wealth fund (SWF), which was established in 2006. The SWF is funded from the revenues received from the extraction of oil, any royalties, and corporate taxes from oil companies, and from the profits made through the fund’s investment activities. The fund’s mandate is to create macroeconomic stability by setting aside oil revenues for developmental projects. However, the management of the SWF lacks transparency and the projected revenue streams remain unrealized.

Privatization Program

On December 16, 2022, the GIRM decided to reduce its shares in SOMAGAZ from 72 percent to 35 percent.  The GIRM’s decision on shares reduction encourages further private investment to revamp the company’s management and boost its performance and competitiveness.

Climate Issues

Mauritania submitted its updated National Determined Contribution (NDC) in October 2021 primarily focusing on increasing Mauritania’s resilience to climate change through the promotion of low carbon growth, while increasing adaption for low lying coastal areas, upgrading infrastructure, and strengthening the country’s food security position.

Resources to Report Corruption

Contact at the government agency or agencies that are responsible for combating corruption:

Cour Des Comptes Mauritanie
Email ccomptes@cc.gov.mr
Telephone: +222 4525 34 04
Fax: +222 4525 49 64

Contact at a “watchdog” organization:
Contact at “watchdog” organization:
“Publiez ce que vous payez” (Publish What You Pay)
Executive Office
+222 4525-0455
+222 4641-7702