MBC Advisory

Why invest in Mauritania

Why invest in Mauritania

Mauritania is a vast country of one million thirty thousand km² (1,030,700), with a population of nearly four million. The country boasts considerable natural resources: iron ore, gold and copper, oil and gas, as well as one of the world's fishiest coastlines. It is irrigated to the south by the Senegal River. Extensive livestock farming and irrigated and rain-fed crops are the traditional activities of the rural population.

Mauritania's macroeconomic framework has been on a favorable trajectory since 2009, underpinned by a national strategy for accelerated growth and shared prosperity (SCAPP 2016-2030). This ambitious program aims to promote strong, sustainable and inclusive growth; develop human capital and access to basic social services; and strengthen governance in all its dimensions.

In the short term, the most promising sectors are mining, hydrocarbons and subcontracting. In the medium/long term, fishing, energy, services, agriculture and livestock breeding, and NICTs are the key sectors. As vectors for diversification.

Why choose us?

Highlights

The country’s main assets are

  • – Its geographical position, at the crossroads of the Maghreb and Black Africa;
  • – A booming oil market;
  • – The implementation of a policy of privatization and trade liberalization, in collaboration with the International Monetary Fund;
  • – FDI facilitation and equal treatment of foreign and domestic investors.

Specific authorization request

Investment is possible in all sectors. However, in mining, oil, telecoms, insurance, banking and telecommunications, specific authorizations issued by the ministry to which these sectors belong are required. Similarly, in the fisheries sector, a foreign investor may not hold more than 49% of a company’s shares.

Foreign investment procedures. Freedom of establishment

Freedom of establishment is guaranteed by Mauritanian law. Privatization and market liberalization have also restored equality between companies and guaranteed equal access to markets and credit.

Declaration obligations

No obligation to declare.

The body with which to declare the investment

The Mauritanian Court of Auditors

Government measures

The Mauritanian government has set up a one-stop-shop system to facilitate the procedures for foreign investors. They can submit applications for licenses, complete administrative procedures, set up companies and obtain work permits for foreign workers. The government has revised the Investment Code to make Mauritania more attractive. Among other things, the code provides for the free repatriation of foreign capital and the salaries of foreign employees. The government has also established free points or export incentives. Companies benefiting from these arrangements pay no taxes or customs duties. Finally, the Mauritanian government has revised its Petroleum Code to facilitate foreign investment in this field.

Regulations governing equity investments

Foreign investors may take a majority stake in the capital of a local company. The investment code does not place any restrictions on access to company capital in Mauritania, based on the origin of the investment.