Mauritania: EIB Global - €20 million financing arrangement signed with BCI to support companies

Today European Commission President Ursula von der Leyen made an official visit to Mauritania, expressing her satisfaction at its strengthening partnership with the European Union. The ceremony, attended by Commission representatives, featured the signing of a financing arrangement for €20 million, with a potential additional tranche of €5 million, by Isselmou Ould Tajidine, CEO of BCI (Banque pour le Commerce et l’Industrie) and Markus Berndt, Deputy Managing Director of EIB Global, the recently established development branch of the European Investment Bank (EIB). This new funding is intended to support Mauritania’s small and medium businesses (SMEs) and mid-caps, backed by the European Fund for Sustainable Development Plus (EFSD+). Special focus will be placed on fostering entrepreneurship and access to finance, training and employment for women and youth.

This is the second time the EIB and BCI have joined forces to support Mauritanian companies, following their first partnership in 2001. It is also the first EIB transaction under the Partnership Agreement between the European Union and Member States, and the members of the Organisation of African, Caribbean and Pacific States. The arrangement came into force on 1 February 2024 in Mauritania to strengthen cooperation in key areas like inclusive and sustainable economic growth and development.

This new financing will make a real contribution to the EU policy priority of strengthening human and economic development Mauritania, set by the Commission for 2021 to 2027.

At least half of the EIB funds will be mobilised by BCI to support youth employment and training, as well as youth-led businesses. Similarly, at least 40% of the EIB loan will be allocated to enterprises empowering women as entrepreneurs, managers, employees and consumers of products and services that strengthen their participation in the economy, in line with the 2X Challenge initiative. Promoting the role of women is a long-standing priority of the BCI group — 47% of its employees and 30% of its executives are women.

In addition, thanks to EIB resources and the Commission’s support, BCI will be able to increase its green investment financing efforts, in line with the EU priorities of climate mitigation and resilience enshrined in the Global Gateway strategy. Sectors like renewable energy; energy efficiency; sustainable agriculture; waste collection, treatment and transport; water supply; and pollution prevention all stand to benefit from the investments made thanks to this agreement. In addition, the EIB will provide BCI with technical assistance in meeting its climate commitment.

“This new chapter of cooperation between the EIB and BCI renews a 20-year partnership for Mauritanian SMEs, and confirms the mutual trust between our institutions and the fruitful cooperation between the European Union and Mauritania. We at BCI are committed to supporting young people and women entrepreneurs in Mauritania and, through this partnership we want to work even more towards sustainable development,” said BCI CEO Isselmou Ould Tajidine.

“This new partnership with the EIB, formed with the support of the European Union, will promote the development of Mauritanian businesses, and SMEs foremost — specifically, by giving young people and women access to finance,” stated Markus Berndt, Deputy Managing Director of EIB Global. “This is the EIB’s first operation in West and Central Africa under the new Samoa agreement between the European Union and the African, Caribbean and Pacific countries. We are honoured to renew the partnership begun with BCI more than 20 years ago, and we hope to increase our support for the development of Mauritania's private sector, while helping to create opportunities for Mauritanian youth and women.”

Gwilym Jones, EU Ambassador to the Islamic Republic of Mauritania, underscored the importance of signing this arrangement as a concrete implementation of the commitments made by President von der Leyen during her visit to Mauritania on 8 February, on strengthening the EU-Mauritania partnership under the Global Gateway strategy: “This initiative reinforces the European Union’s crucial support for the country’s socioeconomic development, the employment of young people and women, and the betterment of living conditions, while working towards a successful twin ecological and energy transition.”

Background information

About the European Investment Bank

The EIB is the lending institution of the European Union, owned by the Member States. It provides long-term financing for sound investment projects to achieve EU policy objectives.

The EIB has been a strong partner for African countries for more than 55 years. Through EIB Global, the Bank is strengthening its presence in Africa. Over the past decade, the EIB has provided more than €28 billion for investment in innovative technologies, green energy, water, education, agriculture, telecommunications, healthcare and businesses in 40 countries across the continent. Since 2019-2020 and the start of the pandemic alone, the EIB has provided more than €8.5 billion for new private and public investments across Africa.

EIB Global is the EIB Group's specialised arm devoted to increasing the impact of international partnerships and development finance. It is designed to foster a strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

https://twitter.com/EIBGlobal

https://www.linkedin.com/company/eib-global/

About Banque pour le Commerce et l’Industrie

Founded in 1999, BCI offers a wide range of financial services to individuals, businesses and institutions. It is Mauritania’s most international bank, thanks to subsidiaries in Mali, Guinea and Senegal and a vast network of correspondent banks. That makes BCI a perfect partner for companies wishing to invest in Mauritania, particularly in the energy, telecommunications and transport sectors; and for domestic companies relying on imports or exports, especially in the agri-food and mining industries.

About the European Union’s priorities in the Islamic Republic of Mauritania

The European Union has been active in Mauritania for 50 years. Alongside the EU Member States (Team Europe), it works to promote socioeconomic development in the country, with a focus on healthcare, education, technical and vocational training, the environment, energy and support for the private sector, particularly in fishing, agriculture and livestock. It also supports the country's governance, working to modernise public administration, in addition to its involvement in the fields of security, stability and migration management. As part of the 2021-2024 programme, a budget of €125 million was made available to promote human development, the transition to green and blue economies, and good governance. The European Union’s work in Mauritania is part of the Global Gateway, initiative, which fosters sustainable and reliable connections for the benefit of people and the planet.