The loan from the European Investment Bank (EIB) is expected to “mobilize up to €40 million” to finance Mauritanian companies.
This is “the first cooperation agreement between the European Investment Bank (EIB) and Mauritania’s financial sector since 2006, and one of the first operations under the new 2023-2027 agreement between the European Commission and the EIB for financing the private sector in Africa, the Caribbean and the Pacific,” says a press release received by APA on Tuesday.
Thanks to this long-term financing, the document adds, “around 400 Small and Medium-sized Enterprises (SMEs) and Intermediate-Sized Enterprises (ISEs) will be supported (by) the ‘Banque Mauritanienne de
l’Investissement’ (BMI)” with a mobilization of funds of “up to €40 million,” i.e. double the amount of the EIB loan.
The agreement between the EIB and the BMI, tied up on July 10, 2023, stipulates that “at least 30 percent of the financing will primarily benefit women and at least 30 percent will benefit young people” and “particular attention will be paid to start-ups and businesses managed by or benefiting women and young people.” The loan is accompanied by a €3.2 million portfolio guarantee financed by the European Fund for Sustainable Development (EFSD).
Mohamed Yahya Sidi, Managing Director of BMI, declared that this agreement, “the first of its kind in Mauritania for fifteen years, lays the foundations for a mutually beneficial partnership and reinforces our vision to position our bank as a major player in the Mauritanian economy.”
He went on to say that this financing comes at just the right time: “It strengthens our bank’s capacity to support businesses weakened by the recent health crisis (Covid-19). SMEs play an important role in the economic and social fabric, playing an effective part in job creation and helping to reduce gender disparities and unemployment. They also contribute to the fight against poverty, and are the ideal breeding ground for ideas and innovation.”
For his part, Ambroise Fayolle, Vice-President of the EIB, welcomed an important partnership aimed at strengthening support for Mauritanian businesses, especially SMEs. “We hope to set in motion a new dynamic
with the financial sector to strengthen support for the economy and prospects for socio-economic development. By doing so, we are supporting new opportunities for the future, especially for young people and women,” he explained.
Finally, Gwilym Jones, Ambassador of the European Union (EU) to the Islamic Republic of Mauritania, reaffirmed the importance of this cooperation, which consolidates the Community’s important support for the development of the country in question and the improvement of living conditions for its population.
ID/ac/fss/abj/APA