AfDB, EIB Launch $275M Project to Upgrade Mauritania’s Strategic Railway

The project is one of the flagships of the EU’s Global Gateway initiative, a €300 billion global strategy designed to bridge infrastructure gaps, promote climate action, and enable sustainable trade partnerships.

Mauritania's strategic mining railway is getting a major upgrade with a US$ 275 million joint financing package from the African Development Bank (AfDB) and the European Investment Bank (EIB Global). The announcement was made during the Africa Investment Forum 2025, where the two institutions formalized their commitment to modernize the critical Zouerate–Nouadhibou railway corridor, a lifeline for Mauritania's export-driven economy.

The deal underscores the importance of sustainable, private sector-led infrastructure development across Africa and falls squarely under the European Union's Global Gateway strategy, which supports high-impact, climate-resilient infrastructure across emerging markets.

A Transformative Investment in Mauritania's Economic Backbone

The railway corridor links Zouerate, Mauritania's iron ore mining hub, to Nouadhibou, its main Atlantic port. Operated by Société Nationale Industrielle et Minière (SNIM)—Mauritania's largest employer and one of the top iron ore exporters in Africa—the line plays a critical role in transporting mineral exports and driving national income.

The project's key features include:

• Rehabilitation of the existing rail infrastructure

• Construction of 42 km of new track connecting future mining sites El Aouj and Atomai

• Acquisition of modern locomotives, wagons, and maintenance equipment

This upgraded corridor is expected to:

• Increase freight capacity and reduce transportation bottlenecks

• Enhance operational safety and reliability

• Reduce fuel consumption and emissions

• Create direct and indirect employment opportunities

• Boost Mauritania's export competitiveness

"The initiative to improve our logistics chain is an important pillar of our strategic program," said Mohamed Vall Mohamed Telmidy, CEO of SNIM. "We are particularly grateful to our partners EIB Global and AfDB for their unwavering support."

Innovative Financing for Sustainable Industrialization

The financing package includes:

• US$ 150 million from the African Development Bank

• US$ 125 million from the European Investment Bank, guaranteed by the European Union

Both are structured as non-sovereign loans—funding provided directly to SNIM rather than the government. This model underscores a shift toward corporate-led infrastructure development and showcases how multilateral institutions can catalyze private sector capital.

"This financing marks an important milestone for Mauritania and the African Development Bank," said AfDB President Sidi Ould Tah. "We are demonstrating our determination to scale up private sector investment in strategic value chains."

EU's Global Gateway in Action

The project is one of the flagships of the EU's Global Gateway initiative, a €300 billion global strategy designed to bridge infrastructure gaps, promote climate action, and enable sustainable trade partnerships.

"This project illustrates what Global Gateway delivers: local growth, new jobs, and sustainable development," said Jozef Síkela, European Commissioner for International Partnerships.

"Just days after the successful AU–EU Summit in Luanda, this joint operation demonstrates how Europe and Africa are working together to deliver transformative, resilient infrastructure," added Ambroise Fayolle, Vice-President of the EIB.

The EIB's investment reflects broader EU ambitions to integrate African economies into global value chains, particularly in strategic sectors like mining and renewable energy.

Building a Greener, More Inclusive Future

The upgraded Zouerate–Nouadhibou railway will not only transport more ore but will do so more efficiently and sustainably. Environmental and social goals are central to the project, which aims to:

• Reduce the carbon intensity of mining logistics

• Support job creation and local supply chains

• Enhance climate resilience in a region highly vulnerable to extreme weather

• Improve regional connectivity in the Sahel

"By improving the railway, we're enhancing competitiveness and laying the foundation for greener, more inclusive growth," said Solomon Quaynor, AfDB Vice-President for Private Sector, Infrastructure, and Industrialization.

Strategic Importance for Mauritania

As a top exporter of iron ore and an emerging player in the global energy transition, Mauritania is positioning itself as a key trade and industrial hub. The railway upgrade is a cornerstone of the country's broader economic strategy, unlocking the full potential of its mining sector, logistics infrastructure, and private sector participation.

"This investment opens new opportunities for Mauritania and Europe alike," Síkela emphasized. "It strengthens our partnership and supports the long-term vision of sustainable growth."

Looking Ahead

With implementation already underway, the project is expected to significantly improve SNIM's logistics operations and boost Mauritania's integration into regional and global supply chains. It also highlights how strategic collaboration between African institutions and European partners can deliver tangible results, supporting not just infrastructure but inclusive, climate-smart development.