On strategies to attract investment, improve infrastructure and support businesses
How has the Covid-19 pandemic impacted the economy, and what moves are ensuring that Mauritania can attract investment going forwards?
KANE: The measures taken to limit the spread of the virus have had a negative impact on economic activity. As a result, GDP performance shifted from growth of 5.9% in 2019 to a contraction of around 2% in 2020. In 2021 and 2022 GDP growth is expected to recover to 3.1% and 5.6%, respectively, driven by a rebound in global demand and ongoing investment in the country’s extractive capacity. In 2023 GDP growth is expected to rise to 7.5% as new offshore gas fields are developed.
Mauritania has put in place a series of measures to encourage investment and improve the business climate, including the simplification of tax payment procedures, reforms relating to land and energy, the diversification of training opportunities for a qualified workforce and the creation of the Mauritania Investment Promotion Agency. Moreover, the country was among the first to ratify the agreement for the creation and implementation of the African Continental Free Trade Area (AfCFTA). Mauritania has established a strategy for the rollout of the AfCFTA, which is part of a series of national efforts to ensure an effective and beneficial integration of the national economy in the new trading bloc. Measures to develop the private sector and upgrade national companies have been implemented with the aim of improving Mauritania’s industrial fabric to better compete against products from other African countries.
To what extent can public-private partnerships (PPPs) help boost infrastructure development?
KANE: PPPs offer a way to attract new sources of private finance and management services while allowing the state to retain a presence in ownership and strategic policy-making. The quality of infrastructure is crucial to economic growth and the international competitiveness of countries. Many studies have shown that infrastructure investment is especially beneficial for the poor. With this in mind, the government has put in place an action plan for the implementation of infrastructure projects, notably through PPPs. The launch of calls for tender for the execution of these projects is imminent. However, for these types of projects to succeed, well-prepared implementation plans are a must, as PPPs can be complex and take time to develop.
What is the government doing to ensure inclusive economic growth and support small businesses?
KANE: Our main objectives are to accelerate economic growth, create jobs for young Mauritanians and fight poverty. To achieve these goals, a series of actions are planned, such as the implementation of necessary reforms for the creation of a diversified and resilient economy; the promotion of good governance and transparency in public management; the improvement of the business climate for the promotion of productive sectors including agriculture, livestock, fishing and extractives; and the organisation of missions to promote and attract national and foreign investment. To this end, the Strategy for Accelerated Growth and Shared Prosperity, our national economic development plan for 2016-30 is being finalised.
The creation of a fabric of diversified and competitive small and medium-sized enterprises (SMEs) is complementary to the actions undertaken to improve the business climate and boost the industrial sector. The establishment and development of SMEs is hampered by the large presence of informal enterprises in the country on the one hand, and the domination of services and skills offered by large private or public firms on the other. Furthermore, among the obstacles to the development of SMEs often cited by operators is the high cost of production – including power prices – and a lack of access to adequate financing. To support SMEs, in July 2021 the government rolled out a national scheme to nurture an entrepreneurial environment.
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