World Bank Backs Major Reforms to Drive Inclusive, Sustainable Growth in Mauritania

World Bank Country Manager Ibou Diouf said the operation represents a critical step toward a new development model for Mauritania—one that focuses on broad-based opportunity and stronger institutions.

 

Mauritania has received a significant boost in its push for economic transformation, following the World Bank’s approval of the First Reform for Inclusive and Sustainable Growth Development Policy Financing. The US$30 million credit from the International Development Association (IDA) will support wide-ranging reforms aimed at building a more diversified, job-creating, and climate-resilient economy.

World Bank Country Manager Ibou Diouf said the operation represents a critical step toward a new development model for Mauritania—one that focuses on broad-based opportunity and stronger institutions.

“This operation marks a significant step in Mauritania’s transition toward a more inclusive and sustainable development model,” Diouf said. “The reforms supported are designed to expand economic opportunities, strengthen institutions, and improve essential services so that growth translates into better jobs and improved living conditions for Mauritanians.”

A Long-Term Reform Programme to Overcome Structural Barriers

The newly approved financing is the first in a programmatic series of three operations. Together, they aim to tackle deep-rooted structural constraints that have long limited Mauritania’s economic potential.

The reform series focuses on three core areas:

1. Strengthening property tax systems and modernizing the private-investment framework

2. Building human capital and improving job-relevant skills

3. Expanding inclusive access to affordable, sustainable energy

World Bank Senior Economist and Task Team Leader Urbain Thierry Yogo said the reforms are designed to unlock long-term, private-sector-led growth.

“These reforms tackle the core bottlenecks that have limited Mauritania’s ability to generate productive jobs and broaden its economic base,” he said. “Improving the investment climate, boosting human capital, and expanding reliable energy access lays the groundwork for sustained growth that benefits all Mauritanians.”

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Strengthening Fiscal Foundations Through Property Tax Reform

One of the programme’s key priorities is enhancing property tax collection, an area that has historically limited the government’s ability to fund essential services.

Strengthened property taxation will:

• Expand fiscal space for public investment

• Support infrastructure development

• Improve financing for health and education

• Increase budget flexibility and resilience

More efficient, equitable taxation is expected to help Mauritania reduce dependence on volatile extractive-sector revenues and build a more stable revenue base.

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Creating a Better Investment Climate for Private Sector Growth

Mauritania aims to attract more domestic and foreign investment by modernizing its regulatory framework for private enterprise.

Reforms supported by the programme will help:

• Create a transparent and predictable investment environment

• Strengthen regulatory governance

• Promote competition

• Enable entrepreneurship and SME expansion

• Reduce bureaucratic barriers that discourage investors

A more dynamic private sector is essential for generating the productive, higher-quality jobs that Mauritania’s growing population needs.

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Building Human Capital: A Foundation for Future Prosperity

Human capital remains central to Mauritania’s long-term development strategy. The policy financing supports targeted reforms to improve:

• Learning outcomes in basic and secondary education

• Quality and equity of health services

• Social protection systems to reach vulnerable populations

• Resilience in communities facing climate- and economic-related risks

Mauritania’s young population presents an opportunity—but only if they have the education, skills, and health needed to participate fully in the economy.

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Expanding Affordable and Sustainable Energy Access

Access to reliable, low-cost energy is vital for economic diversification, industrial growth, and improving household wellbeing.

This operation advances reforms aligned with:

• SDG 7: Affordable and Clean Energy

• Mauritania’s M300 Energy Compact

• The country’s long-term goal of universal energy access

Key measures include:

• Strengthening the regulatory environment for energy access

• Promoting renewable energy solutions

• Supporting affordability initiatives for households

• Ensuring energy infrastructure keeps pace with demand

Mauritania’s abundant solar and wind resources position it strongly to expand renewable energy, reduce emissions, and lessen reliance on imported fuels.

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Aligning With National and Global Development Priorities

The Development Policy Financing aligns with Mauritania’s forthcoming Country Partnership Framework (CPF 2026–2030) and supports several national strategies such as:

• Strategy for Accelerated Growth and Shared Prosperity (SCAPP)

• National Prevention Strategy

• Broader government efforts to diversify the economy

• Efforts to reduce vulnerability to commodity price shocks and climate impacts

Mauritania faces significant exposure to global fluctuations in mining prices and increasing environmental pressures. Economic diversification is essential for long-term resilience.

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Toward a More Diverse, Job-Rich, and Climate-Resilient Economy

By advancing this package of reforms, the World Bank supports Mauritania’s ambition to shift from an extractive-dependent economy to one that is:

• More diverse and competitive

• Driven by private enterprise and job creation

• Better prepared for climate and economic shocks

• Inclusive of all communities and regions

If fully implemented, the reforms could play a transformative role in improving living standards, enhancing sustainable growth, and opening new economic pathways for the people of Mauritania.