The European Investment Bank (EIB Global) and the African Development Bank (AfDB) announced that they have signed a joint financing agreement totaling $275 million to upgrade Mauritania’s main rail corridor.
The agreement, signed at the 2025 African Investment Forum, will support the infrastructure development of a line between the iron ore mining region of Zouelate and the port city of Nouadhibou on the Atlantic coast.
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The financial package includes loans of $150 million from the AfDB and $125 million from EIB Global, the latter guaranteed by the European Union (EU).
Both agencies provide this support as private sector non-sovereign financing directly to the National Institute of Industry and Minières (SNIM), which operates the railway and is Mauritania’s largest employer.
“This project will strengthen SNIM’s transport corridors, boost exports and support the country’s economic development,” said EIB Vice President Ambroise Fayol.
“Just days after the successful AU-EU Summit in Luanda, this is a strong example of how the European Union and EIB are implementing the Global Gateway Strategy in collaboration with African partners.”
SNIM will oversee the implementation of the project as part of Mauritania’s efforts to expand production and exports while supporting environmental and social goals in the mining and logistics industry.
Mohamed Bar Mohamed Termidi, Director and CEO of SNIM, said:
“Their development will contribute to the realization of our production goals. We are especially grateful to our partners EIB Global and AfDB for their unwavering support.”
Project plans include the rehabilitation of existing rail infrastructure, the construction of 42km of new track to service the developing mine sites of El Awj and Atmai, and the procurement of locomotives, wagons and maintenance equipment.
The initiative aims to increase production capacity, reduce fuel usage and improve operational safety and reliability, along lines important to Mauritania’s export sector.
Officials said the rail upgrade is expected to help increase mineral exports, spur job creation, improve regional connectivity and address transportation resilience in the face of climate risks.
AfDB President Sidi Ould Tarr said: “This loan marks an important milestone for Mauritania and the African Development Bank.
“By supporting SNIM with non-sovereign financing for businesses, we are demonstrating our determination to scale up private sector investment in strategic value chains.”
The investment forms part of the European Union’s Global Gateway Initiative, which aims to promote sustainable infrastructure and strengthen value chains for strategic raw materials.
