The European Investment Bank (EIB Global) and the African Development Bank (AfDB) have announced a joint financing arrangement totalling $275m for the upgrade of Mauritania’s principal railway corridor.
The agreement, signed at the Africa Investment Forum 2025, will support infrastructure improvements on the route between Zouerate, an iron ore mining area, and Nouadhibou, a port city on the Atlantic coast.
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The financial package includes a $150m loan from the AfDB and $125m from EIB Global, with the latter guaranteed by the European Union (EU).
Both institutions are providing this support as private sector, non-sovereign loans directly to Société Nationale Industrielle et Minière (SNIM), which operates the railway and is Mauritania’s largest employer.
EIB vice-president Ambroise Fayolle said: “This project will reinforce SNIM’s transport corridor, boost exports, and support the country’s economic development.
“Just a few days after the successful AU-EU Summit in Luanda, it is a strong example of how the European Union and the EIB, working with African partners, deliver on the Global Gateway strategy.”
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By GlobalDataSNIM will oversee implementation of the project as part of efforts to expand production and exports while supporting environmental and social objectives within Mauritania’s mining and logistics industries.
SNIM board member and CEO Mohamed Vall Mohamed Telmidy said: “The initiative to improve our logistics chain represents an important pillar of our strategic programme.
“Its development contributes to the realisation of our production objectives. We are particularly grateful to our partners EIB Global and AfDB for their unwavering support.”
Project plans cover the rehabilitation of existing rail infrastructure, construction of 42km of new track to serve developing mining locations at El Aouj and Atomai, and procurement of locomotives, wagons, and maintenance equipment.
The initiative aims to improve capacity, reduce fuel usage, and enhance operational safety and reliability along a line critical to Mauritania’s export sector.
According to stakeholders, upgrading the railway is expected to facilitate increased mineral exports, foster job creation, improve regional connections, and address transport resilience in the face of climate risk.
AfDB president Sidi Ould Tah said: “This financing marks an important milestone for Mauritania and for the African Development Bank.
“By supporting SNIM through a corporate, non-sovereign loan, 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 seeks to promote sustainable infrastructure and strengthen value chains for strategic raw materials.
