Mauritania: Investing in Mauritania
According to UNCTAD's World Investment Report 2023, FDI inflows to the country reached USD 1.14 billion in 2022, 31.7% above the 2018-20 average. At the end of the same period, the total stock of FDI was estimated at USD 12.16 billion, or 117.8% of its GDP. Between 2018 and 2022, Mauritania's FDI inflows were more than double the average of African Least Developed Countries. Most of the investments are directed to oil exploration and exploitation, mineral mining of iron ore and gold, fisheries, and agriculture. The mining sector, in particular, has seen significant investment in recent years, with companies such as Kinross Gold and First Quantum Minerals investing in gold and copper mining projects. Recent significant gas discoveries off the coast of Mauritania have driven foreign investment. In 2022, the oil and gas sector alone represented an impressive 94% of FDI inflows into the country. Although the energy sector has been the primary focus of investment, other sectors are also gaining momentum, including banking, construction and infrastructure, information and communication technologies, and emerging prospects in green hydrogen (UNCTAD). The majority of FDI in Mauritania comes from France, which has historically had strong economic and political ties with the country (in total, there are around fifty French companies operating in Mauritania, generating over 2000 direct and indirect jobs). Other major investors in Mauritania include China (which has been showing a steadily increasing interest in recent years), the United Arab Emirates, and Canada.
The country is trying to promote its strategic geographical location to attract new investors. It is rich in minerals and fisheries resources and presents great energy potential (gas, renewable). Mauritania constructed its first deep-water port in an effort to promote Nouadhibou as a multi-purpose service platform in the sub-region. There is no law prohibiting or limiting foreign investment in any sector of the economy, and both domestic and foreign entities can engage in all forms of remunerative activities (with the exception of activities involving selling pork meat or alcohol). However, the government performs mandatory screening of foreign investments, which is non-discriminatory. Among the factors hindering FDI, there are political and security instability, corruption, an inefficient and politically vulnerable judicial system, and a poorly diversified and highly informal economy. The Mauritanian Investment Promotion Agency (APIM) was founded in 2021 to streamline access to the Mauritanian market for both domestic and foreign investors. Furthermore, attention should be drawn to the ongoing reform of the investment code and the establishment in 2022 of a High Investment Council, led by the President of the Republic. Its objective is to enhance the business climate and the competitiveness of the Mauritanian economy. Overall, Mauritania ranks 127th among the 132 economies on the Global Innovation Index 2023, 130th out of 180 on the 2023 Corruption Perception Index, and 110th out of 184 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 955 | 1,064 | 1,148 |
FDI Stock (million USD) | 9,950 | 11,013 | 12,161 |
Number of Greenfield Investments* | 1 | 5 | 1 |
Value of Greenfield Investments (million USD) | 8 | 343 | 55 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Mauritania | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 6.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 3.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 7.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Historically, Mauritania has been relatively open to foreign direct investment, especially in the mining, hydrocarbon, agriculture and fishing sectors. In June 2012, to encourage further investment, the government updated provisions in the Investment Code to enhance the security of investments and facilitate 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 (SMEs), which register through OPPS, do not pay any tax or customs duties. The Code also created the formation of Special Economic Zones to encourage regional development. Separately, the Nouadhibou Free Zone was created with its ownregulatory scheme.
The Civil and Commercial Codes protect contracts, although court enforcement and dispute settlement can be difficult.
The government has set up a system of a single office in order to facilitate the administrative work of foreign investors. It deals with the submission of files in order to obtain permits, administrative procedures, establishment of businesses and issuing work permits for foreign workforce.
To find out more about Bilateral Investment Treaties signed by Mauritania, please visit the UNCTAD's Investment policy hub website.
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Latest Update: May 2024