On creating the right environment for private players to actively support development
How do you assess the local regulatory framework for public-private partnerships (PPPs)?
GUPTA: Arise initiated the first PPP in Mauritania in 2018 with the Nouakchott Container Terminal. While the country has a short history of PPPs, the environment is evolving rapidly and the private sector has a key role to play in these changes. Several steps in the right direction have been implemented in the country, and we are satisfied with the new dynamics that have emerged after a more fair, transparent and business-friendly regulatory framework was created, especially regarding PPPs. This enhancement was made possible by the government and private sector working together, with guidance from international organisations such as the World Bank.
Enthusiasm and optimism is rising as the scope for PPPs widens. We have spearheaded the PPP approach in Mauritania and are therefore very proud to see that the model being replicated in other sectors. Many efforts are being made to strengthen the transparency of these partnerships, and each step is now closely monitored by competent authorities. Indeed, a greater number of healthy and effective public-pri-vate relationships are emerging in Mauritania thanks to the work of actors from both spheres.
What do you consider as the biggest operational challenges for developing and investing in infrastructure projects in Mauritania?
GUPTA: Operational challenges that our company may encounter when it comes to developing and investing in infrastructure in Mauritania are not all that different from what we may face in other countries, both on the continent or elsewhere in the world. The government has undertaken a significant number of reforms to ease the challenges that do exist to attract greater private investment and facilitate such operations in the country, including issuing a new public procurement code, which is very encouraging.
Which types of financing schemes are needed in order to further develop the country’s port and road infrastructure?
GUPTA: When we talk about the issue of infrastructure deficit in Mauritania, or elsewhere on the continent, we often tend to focus on the financing gap, which certainly exists, but it is only one part of the problem. Today, many players across the continent, like Arise, are ready to invest in the construction of infrastructure since the requirements are such that recourse to private actors is necessary, especially in the case of Mauritania, where PPPs are considered the appropriate solution. In fact, when you look closely, many PPPs are launched in Africa but only about 10% of them reach financial close because of poor deal structuring and other factors such as a lack of legislation. In the case of Mauritania, once a clear framework for PPPs is in place – which the government is working on – you will see new roads and ports developed at a fast pace.
To what extent do you anticipate the evolution of hard infrastructure in Mauritania to help boost exports and local added value?
GUPTA: Mauritania has great potential, yet while the coastline has attracted major logistics players, much remains to be done in the hinterland. Furthermore, as is the case in other countries of the sub-region and the continent, Mauritania lacks heavy infrastructure, but work is under way to reduce this gap. The main infrastructure to be developed is transport infrastructure – namely roads and bridges – to better connect the coastline with the rest of the country and allow Mauritania to become the link between North and sub-Saharan Africa. This enhancement would allow Mauritania to fully benefit from its great industrial potential, although that sector is currently nascent. Going forwards, I envision the country playing a major role in international and continental trade.
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