The Arab Coordination Group (ACG), a coalition of development finance institutions, has committed $2 billion to support Mauritania’s national development strategy for 2025–2030, with a significant focus on enhancing the country’s electricity infrastructure.
The President of the OPEC Fund, Abdulhamid Alkhalifa, a key ACG member, announced in June 2025, during a roundtable in Vienna, that this pledge aims to drive sustainable economic growth by targeting critical sectors, including energy, water, transport, and digital infrastructure.
“We are strongly committed to playing an active role in the implementation and success of Mauritania’s ambitious development program.
“With our pledge, we are mobilizing our collective capabilities to translate ambition into action and bring about positive change in the lives of the people of our partner country, Mauritania,” Alkhalifa says.
In addition, Mauritania’s Council of Ministers recently approved a $93.9 million financing agreement to improve electricity reliability as part of efforts to strengthen the country’s power infrastructure.
A report states that Mauritania plans to make substantial investments in the energy sector, a major component of its development plan, to modernize thermal power plants.
ACG funding plans
Among the target key sectors in focus, the government of Mauritania presented a portfolio of priority investment projects that includes an initiative to hybridize thermal power plants and enhance existing hybrid facilities with advanced energy storage solutions.
These systems will stabilize Mauritania’s grid, which faces a 10% annual increase in energy demand.
In addition, battery storage solutions will ensure a reliable power supply in remote areas, aligning with the government’s rural electrification targets.
Beyond electricity, the ACG’s funding will support key water and transport projects, such as infrastructure development in the Taraf Al-Mahroud and Karakoro basins and the rehabilitation of the Nouakchott-Nouadhibou and Rosso-Boghé corridors.
These initiatives, coordinated with the Mauritanian government and international partners, aim to create a robust framework for sustainable development, Alkhalifa says.
The integration of digital infrastructure will further enhance connectivity, supporting Mauritania’s broader economic diversification goals, as outlined in Mauritania’s National Digital Transformation Agenda.
Alignment with regional energy goals
This pledge complements ongoing regional efforts, such as the African Development Bank’s (AfDB) $302.9 million loan for the Mauritania-Mali 225kV Electricity Interconnection and Solar Power Plant Development Project, part of the Desert to Power Initiative.
The AfDB project, approved in December 2023, targets connecting 100,000 households across Mauritania and Mali, reinforcing the ACG’s commitment to regional energy integration.
Meanwhile, in March, the country signed an agreement with France’s development agency, Agence Française de Développement (AFD), to improve the nation’s power infrastructure by receiving a €64 million upgrade.
The ACG’s $2 billion commitment is set to transform Mauritania’s energy landscape by creating jobs and promoting cleaner energy solutions.
By prioritizing hybrid systems and storage, the initiative addresses environmental concerns while meeting rising energy needs.
