Mauritania has reached a $1 billion trade finance framework agreement with the International Islamic Trade Finance Corporation (ITFC), a Saudi-based institution, to support key sectors of the economy and enhance the country’s trade capacity over the next five years.
The agreement, set to run from 2026 to 2030, was concluded in Jeddah during an official visit by Mauritania’s Minister of Economic Affairs and Development, Abdallah O. Souleymane O. Cheikh-Sidia. ITFC operates as the trade finance arm of the Islamic Development Bank (IsDB) Group.
Through the framework, financing and technical support will be mobilised to advance Mauritania’s development agenda, with particular attention to improving energy supply, boosting liquidity within the banking sector and encouraging private sector expansion.
Energy, banking focus
As part of the agreement, ITFC will provide support for the importation of energy commodities, an important step for Mauritania as it seeks to stabilise electricity supply and sustain industrial operations.
The programme will also extend trade finance facilities and confirmation lines for letters of credit to domestic banks, enabling them to better assist companies engaged in international trade.
Small and medium-sized enterprises are expected to gain from the initiative through broader access to funding intended to help businesses grow and strengthen local value chains.
Alongside the financing, technical assistance projects will be introduced. These initiatives will focus on increasing agricultural productivity and improving trade facilitation across important sectors of the Mauritanian economy.
Longstanding partnership
Collaboration between Mauritania and the ITFC dates back to 2008 when the institution first began operations. Since then, total financing approvals for the country have surpassed $1.2 billion, supporting areas such as energy, agriculture and trade-related infrastructure.
Authorities note that the latest framework deepens that partnership while increasing financial resources available for the country’s trade ecosystem.
“This agreement will help mobilise critical financial resources to support national development priorities and foster sustainable economic growth,” said Abdallah O. Souleymane O. Cheikh-Sidia.
Chief Executive Officer of ITFC, Adeeb Yousuf Al Aama, explained that the deal aligns with the organisation’s mission of promoting development through trade financing among its member states.
“The agreement reflects ITFC’s continued commitment to supporting its member countries through trade-driven development,” he said.
Boost for trade and investment
Trade finance mechanisms are widely used by developing and frontier economies to enhance their participation in global markets by ensuring businesses can access funds needed for import and export activities.
For Mauritania, a resource-rich West African country whose economy depends heavily on commodities such as iron ore, gold and fisheries, stronger access to trade financing could stimulate commercial activity and aid economic diversification.
The agreement also strengthens collaboration between Mauritania and institutions within the Islamic Development Bank Group, which provides funding for development initiatives across its member nations.
By expanding financial capacity and improving businesses’ access to trade instruments, the framework is expected to help Mauritania increase regional trade participation and reinforce economic resilience over the coming five years.