Mauritania: Investing in Mauritania
Foreign investment flows to Mauritania have been historically weak. According to UNCTAD's World Investment Report 2021, FDI inflows increased in Mauritania by 10% in 2020, to USD 1 billion, as a result of investments from China, despite the global economic crisis triggered by the Covid-19 pandemic. The total stock of FDI reached USD 10 billion in the same year. Most of the investments are directed to oil exploration and exploitation, mineral mining of iron ore and gold, telecommunications with the acquisition of mobile phone licenses and the construction sector. China has been showing a steadily increasing interest in Mauritania, and its traditional trading partners, including its European partners (primarily Hungary and France), seem likely to pursue their investment projects in the country (infrastructure and telecommunications).
The country is trying to promote its strategic geographical location to attract new investors. It is rich in minerals and fisheries resources and presents a great energy potential (gas, renewable). Mauritania constructed its first deep-water port in an effort to promote Nouadhibou as a multi-purpose service platform in the sub-region. There is no law prohibiting or limiting foreign investment in any sector of the economy, and both domestic and foreign entities can engage in all forms of remunerative activities (with the exception of activities involving selling pork meat or alcohol). However, the government performs mandatory screening of foreign investments, which are non-discriminatory. Mauritania is making steady progress in the matter of business climate: in the latest Doing Business report published by the World Bank, the country ranked 152nd worldwide for the ease of doing business. According to the report, Mauritania improved access to credit information and made enforcing contracts easier. Among the factors hindering FDI, there are political and security instability, corruption, inefficient and politically vulnerable judicial system and a poorly diversified and highly informal economy.
Foreign Direct Investment | 2019 | 2020 | 2021 |
FDI Inward Flow (million USD) | 887 | 928 | 22 |
FDI Stock (million USD) | 8,995 | 9,973 | 9,995 |
Number of Greenfield Investments* | 2 | 1 | 5 |
Value of Greenfield Investments (million USD) | 159 | 8 | 331 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Mauritania | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 6.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 3.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 7.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Historically, Mauritania has been relatively open to foreign direct investment, especially in the mining, hydrocarbon, agriculture and fishing sectors. In June 2012, to encourage further investment, the government updated provisions in the Investment Code to enhance the security of investments and facilitate administrative procedures. The Code provides for free repatriation of foreign capital and wages for foreign employees. The code also created free points of importation and export incentives. Small and medium enterprises (SMEs), which register through OPPS, do not pay any tax or customs duties. The Code also created the formation of Special Economic Zones to encourage regional development. Separately, the Nouadhibou Free Zone was created with its ownregulatory scheme.
The Civil and Commercial Codes protect contracts, although court enforcement and dispute settlement can be difficult.
The government has set up a system of a single office in order to facilitate the administrative work of foreign investors. It deals with the submission of files in order to obtain permits, administrative procedures, establishment of businesses and issuing work permits for foreign workforce.
To find out more about Bilateral Investment Treaties signed by Mauritania, please visit the UNCTAD's Investment policy hub website.
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Latest Update: March 2023