Mauritania’s Council of Ministers has approved a $93.9 million financing agreement aimed at improving electricity reliability in the country.
The agreement was approved during a cabinet meeting on June 25 under the chairmanship of Mauritania’s President Mohamed Ould Cheikh El-Ghazouani.
The agreement, signed with the International Development Association (IDA), secures $93.9 million in financing for Phase 1 of an energy resources development and mining project in Mauritania.
The project aims to enhance the stability of the national power grid through renewable energy and storage solutions.
It also supports investments in the green hydrogen, renewable energy and mining sectors, and to support the implementation of technical and vocational training and local content strategies in these sectors.
Details of the financing agreement
The total amount of financing for the project is $93.9 million, (3.43 million MRU), disbursed in three credit tranches.
Credit A involves the disbursement of $22.7 million, repayable over a period of 25 years, including 5 years deferred, with a service fee of 0.25% per year on the amount of the credit, as well as a commitment fee of 0.5% per year on the balance of the undisbursed financing
Credit B involves the disbursement of $54.1 million, repayable over a period of 30 years, including a 5-year deferral, with an interest rate of 1.25% per year on the disbursed balance of the credit and a service charge of 0.75% per year on the disbursed balance of the credit.
Credit C involves the disbursement of $17.1 million, repayable over a period of 12 years, including 6 years deferred, with a commitment fee of 0.5% per year on the balance of the undisbursed financing.
Other investments in Mauritania’s electricity sector
In March 2025, France’s development agency, Agence Francaise de Developpment (AFD), provided a soft loan of €64 million to upgrade Mauritania’s power infrastructure.
The funds are to be used to construct a high-voltage line between Ghayra and Kiffa, a 50-megawatt power plant in Kiffa, as well as a substation in Nouakchott. It also goes to funding the connection of Mauritania’s national grid to Mali’s.
Another foreign investment in Mauritania is the power purchase agreement signed with a Saudi-Egypt consortium to generate more than 150 MW of electricity by replacing heavy oil with natural gas from the country’s Banda gas field.
The investment bolsters Mauritania’s gas-to-power initiative and represents the next phase of the Banda gas-to-power project, with first gas and incremental power generation expected in 2028.
