NOUAKCHOTT, October 21, 2009—Mauritania’s natural resources are significant. The country possesses mining deposits; among them iron ore, copper, and gold, as well as fisheries resources and oil and gas, which were discovered more recently. With a very young population (half under age 30) and an attractive geographic location owing to the fact that the country lies between the Maghreb and the rest of sub-Saharan Africa, Mauritania has all the attributes needed to rise to the level of an emerging economy.
Last July 18, after almost one year of political crisis, Mauritanians elected a new government to head their country of almost three million inhabitants. The priorities of the new government include eradicating poverty (a number of studies put the poverty rate at 46 percent), combating corruption, and creating an attractive business environment. Without a doubt, the country has significant natural resources to confront these challenges. However, climate-related events (a dry Saharan climate with little rainfall in most of the country), coupled with the global food and financial crises in 2008-2009, pose a major obstacle which is not, however, insurmountable.
The World Bank’s Program in Mauritania
Mauritania and the World Bank Group have enjoyed relations for over 45 years. The latter has provided assistance in such important areas as infrastructure (roads and water account for 28 percent of the current portfolio), agriculture and the environment (28 percent), human development (26 percent), energy (13 percent), and the public sector (5 percent).
As of September 2009, the World Bank’s portfolio in Mauritania was composed of 17 national and regional development assistance projects amounting to US$413 million in commitments from the International Development Association (IDA), nearly US$160 million of which has not been disbursed yet.
As the decision to move forward with a reengagement plan in Mauritania has been taken since September 8, 2009 by the Bank, Country Director Madani M. Tall paid a four-day visit to the new authorities in Nouakchott, where he also met with representatives of the donor community to discuss development priorities and World Bank support in the coming months. Tall informed Mauritania's president, Mohamed Ould Abdel Aziz, about the Bank’s formal reengagement, through significant measures. These include disbursement of US$16.5 million put on hold in August 2008 and a US$4.5 million financing agreement to support Mauritania's transport sector. Meanwhile cross-sectorial missions are already on the ground, working with their Mauritanian counterparts to undertake a thorough assessment of the country’s portfolio and macro-economic situation.
Additional analytical work includes the Investment Climate Assessment (ICA), conducted in 2007, a study on gender parity, and a “Study on Corruption in Mauritania” conducted in 2008. Its results will serve to shape the Mauritanian authorities’ strategy to combat corruption. Likewise a “Sources of Growth” study was conducted to help identify potential growth-generating sectors. In terms of the business environment, Mauritania ranked 166 out of over 180 countries in the 2010 Doing Business report. This means that more work remains to be done. In 2008, the World Bank’s Executive Board approved the Business Environment Enhancement Project, which targets development of the financial private sector and investment in Mauritania.
In 2007, the preparation of the PRSP-2 and the Country Assistance Strategy, as well the Consultative Group Meeting in Paris demonstrated solid partnerships, culminating with the visit by the World Bank President Robert Zoellick to Mauritania in 2008.
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