EIB gives €20m to Mauritanian Investment Bank

The European Investment Bank (EIB) has granted a long-term financing package of €20 million ($22 million) to the Mauritanian Investment Bank (BMI) for loans to Small and Medium Enterprises (SMEs) and Intermediate Size Enterprises (ETI) in Mauritania. This funding is made possible with the assistance of the European Fund for Sustainable Development Plus (EFSD+). In addition, there will be a portfolio guarantee of €3.2 million funded by the European Fund for Sustainable Development (EFSD).

This collaboration marks the first partnership between the EIB and the Mauritanian financial sector since 2006. It is also among the initial operations covered by the 2023-2027 Agreement between the European Commission and the EIB to support private sector financing in Africa, the Caribbean, and the Pacific.

As part of the agreement, BMI will allocate at least 30% of the EIB funding to support youth-led enterprises, training programs, and employment opportunities. Furthermore, in line with the “2X Challenge” policy, a minimum of 30% of the EIB loan will be directed towards businesses that empower women, aiming to enhance their participation as business owners, leaders, employees, and consumers.

The EIB will provide technical support to BMI for climate reporting, aligning with the standards set by the Task Force on Climate-related Financial Disclosures (TCFD), a global initiative supported by numerous banks, central banks, regulators, and financial institutions.

Mohamed Yahya Sidi, the managing director of BMI, expressed his appreciation for the financing agreement, highlighting its significance for both institutions and their shared vision of positioning BMI as a major contributor to the Mauritanian economy.

Ambroise Fayolle, Vice President of the EIB, emphasized the importance of this cooperation, aiming to strengthen support for the Mauritanian economy and foster socio-economic development. He also highlighted the potential for creating new opportunities, particularly for young people and women.

This latest agreement adds to the substantial support provided by the European Union to Mauritania, with donations exceeding €200 million (£170 million) since 2021.