EIB Global and African Development Bank invest US$ 275

Mauritania's critical rail infrastructure is undergoing a transformative upgrade. The European Investment Bank (EIB) Global and the African Development Bank (AfDB) have jointly committed US$275 million to modernise the country's primary railway corridor—a strategic investment that signals renewed confidence in West African logistics and resource extraction.

## What is Mauritania's railway corridor and why does it matter?

Mauritania's main railway artery is the backbone of one of Africa's largest iron ore export networks. The corridor connects the Tasiast mining region in the north to the port of Nouadhibou, enabling the movement of raw materials and linking landlocked mining operations to global markets. For a nation where iron ore exports account for nearly 40% of government revenue, this infrastructure is existential. The railway also serves as a critical trade route for regional commerce across the Sahel, connecting to markets in Senegal and Mali.

The deterioration of this corridor—caused by decades of underinvestment, extreme desert conditions, and aging rolling stock—has created bottlenecks that constrain economic growth. Trains operating at reduced speeds, frequent breakdowns, and limited capacity have dampened competitiveness and increased logistics costs for Mauritania's dominant mining sector.

## How will the $275 million investment reshape the corridor?

The joint EIB-AfDB financing will fund track rehabilitation, signalling system upgrades, rolling stock modernisation, and operational efficiency improvements. These upgrades are expected to increase rail capacity by 30-40%, reduce transit times by up to 25%, and lower maintenance costs significantly. Modern signalling systems will enable safer, faster operations, while new or refurbished locomotives and freight cars will reduce downtime.

Beyond iron ore, the upgraded corridor will enhance Mauritania's role as a transit hub for regional trade. Improved rail connectivity strengthens supply chains across the Sahel and supports the African Continental Free Trade Area (AfCFTA) integration agenda—a critical objective for both multilateral lenders.

## What are the investment implications for stakeholders?

**Mining companies** operating in Tasiast and other northern deposits will benefit from lower transport costs and improved reliability, directly boosting profit margins. Kinross Gold, which operates the Tasiast mine, and other operators will see operational leverage from enhanced logistics.

**Government revenue** should stabilize and grow. Lower export costs improve Mauritania's competitiveness in global iron ore markets, supporting higher production volumes and sustained fiscal income.

**Regional trade flows** will accelerate. The corridor upgrade enables faster movement of goods across West Africa, supporting broader economic integration and attracting investment in cross-border commerce.

**Risk factors** include potential cost overruns (common in African infrastructure projects), currency volatility affecting Mauritania's budget contributions, and execution delays. Climate shocks—sandstorms and extreme heat—can disrupt construction timelines.

The investment reflects a structural shift: international development banks are prioritising connectivity infrastructure as a lever for African economic transformation. Mauritania's railway modernisation is not merely a domestic upgrade—it is a statement that Saharan logistics and mining remain strategically important to global investors.