• EIB and AfDB approve two loans totaling $275 million for SNIM

• Funding supports rail rehabilitation, new tracks, and rolling stock

• SNIM aims to raise production to 24 million tons by 2031

The European Investment Bank (EIB) and the African Development Bank (AfDB) have signed an agreement to release two loans totaling $275 million for Mauritania’s Société Nationale Industrielle et Minière (SNIM). Announced on the sidelines of the Africa Investment Forum 2025 held from November 26 to 28 in Rabat, the financing will help the company strengthen its logistics capacity for exporting iron ore.

The EIB will provide $125 million, while the AfDB is contributing $150 million. Both loans are guaranteed by the European Union. SNIM, owned 78.35% by the Mauritanian state, produced 14.3 million tons of iron ore in 2024, setting a new record. As part of its strategy to raise output to 24 million tons by 2031, the company plans to invest $467 million to double the transport capacity of its railway.

The funds will support rehabilitation of the existing rail line, construction of 42 kilometers of new track, and the purchase of locomotives, wagons, and maintenance equipment. The upgrades will strengthen Mauritania’s main railway corridor linking the Zouerate iron ore hub to the Atlantic port of Nouadhibou, while improving connections to the El Aouj and Atomai mining sites.

The initiative to improve the logistics chain is a key part of the company’s strategic program and supports the achievement of its production goals, SNIM CEO Mohamed Vall Mohamed Telmidy said.

The repayment terms of the two loans were not disclosed in the EIB statement. While the AfDB board approved a $150 million senior loan for SNIM in November 2024, it is unclear whether this week’s announcement corresponds to the disbursement of that financing.

The broader economic impact of SNIM’s expansion plans remains to be assessed. In 2023, the company accounted for 9% of Mauritania’s GDP, 14% of public revenue, and 37% of export value.

Emiliano Tossou