Banque Mauritanienne de l’Investissement (BMI) has secured a significant financial boost of €20 million through a loan provided by the European Investment Bank (EIB).
This partnership marks the first collaboration between EIB and the Mauritanian financial sector since 2006. The agreement falls under the newly established 2023-2027 collaboration between the European Commission and EIB, aimed at financing the private sector in Africa, the Caribbean, and the Pacific.
Supporting Mauritanian Businesses: EIB’s €20m Loan To BMI
The collaboration between EIB and BMI is set to benefit around 400 small businesses and mid-cap enterprises in Mauritania.
The €20 million loan from EIB to BMI will have a significant multiplier effect, mobilizing up to €40 million in financing for Mauritanian businesses. This amount is twice the value of the loan provided by EIB.
Furthermore, the financing allocation aims to prioritize the empowerment of women and young people, with a minimum of 30% of the funds directed towards each group.
Enhancing Opportunities For Women And Youth: Portfolio Guarantee Agreement
To further promote inclusivity and empower underrepresented groups, the portfolio guarantee agreement associated with the EIB loan will specifically focus on startups and businesses led by or benefiting women and young people.
This strategic approach aims to create an environment that nurtures entrepreneurship among women and supports the growth of young enterprises.
Memorandum Of Understanding: A Step Towards Sustainable Development
On July 10, 2023, Banque Mauritanienne de l’Investissement (BMI) and the European Investment Bank (EIB) solidified their collaboration by signing a memorandum of understanding (MoU) with the support of the European Commission.
This MoU paves the way for the deployment of a €20 million long-term financing package from EIB to BMI. The funds will be utilized for loans to small and medium-sized enterprises (SMEs) and mid-cap companies in Mauritania.
The European Fund for Sustainable Development Plus (EFSD+) will provide support for this initiative, along with a portfolio guarantee worth €3.2 million, financed by the European Fund for Sustainable Development (EFSD).
Driving Human Development In Mauritania
This collaboration aligns with the EU’s strategic objective of fostering human development, as outlined by the European Commission in Mauritania for the 2021-2024 period.
The focus areas include the socio-professional inclusion of young people, promoting equal treatment and opportunities, and combating various forms of discrimination, including gender-based discrimination and discrimination against vulnerable groups.
Promoting Gender Equality And Youth Empowerment
A minimum of 30% of the EIB funds mobilized by BMI will be dedicated to supporting companies led by young entrepreneurs or those contributing to youth employment and training.
Similarly, another 30% of the EIB loan will be allocated to enterprises that empower women in various roles, including as entrepreneurs, managers, employees, and consumers.
These initiatives are in line with the 2X Challenge, which emphasizes the importance of gender equality. Additionally, the criteria align with OECD gender objectives, recognizing gender equality as a fundamental goal.
Climate Reporting Assistance: Enhancing Sustainability
Recognizing the urgent need for climate action, EIB will provide technical assistance to BMI to establish climate reporting based on the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD).
This international initiative, supported by numerous central banks, regulators, and financial institutions, aims to enhance transparency and accountability in climate-related financial matters.
Shared Vision For Economic Growth: Perspectives From BMI CEO
BMI CEO Mohamed Yahya Sidi expressed his gratitude for the financing agreement, acknowledging the €20 million credit line and guarantee that will facilitate €40 million in loans to businesses.
This agreement marks a significant milestone in the Mauritanian economy, strengthening the position of BMI as a key player.
Sidi emphasized the importance of SMEs in generating employment opportunities, reducing inequality and unemployment, and contributing to poverty eradication.
He highlighted the capacity of SMEs to foster innovation, ideas, and entrepreneurial spirit.
Partnership For A Prosperous Future: EIB Vice-President’s Perspective
EIB Vice-President Ambroise Fayolle emphasized the significance of the partnership with Banque Mauritanienne de l’Investissement.
He highlighted the aim of supporting Mauritanian businesses, particularly SMEs, by providing access to financing for young people and women.
The collaboration with the financial sector in Mauritania after 17 years reflects EIB’s commitment to bolstering the economy and promoting socio-economic development.
Fayolle emphasized the potential of this partnership to create new opportunities, especially for young people and women.
EU’s Commitment To Mauritania’s Development
His Excellency Gwilym Jones, Ambassador of the European Union to the Islamic Republic of Mauritania, reaffirmed the European Union’s commitment to supporting the country’s development and improving the living conditions of its people.
The agreement between BMI and EIB further complements the substantial financial assistance provided by the European Union, with over €200 million in grants allocated to Mauritania since 2021.
The collaboration between the European Investment Bank and Banque Mauritanienne de l’Investissement represents a significant milestone in fostering economic growth and inclusivity in Mauritania.
The partnership aims to empower women, support youth employment, and promote sustainable development.
Through this strategic collaboration, Mauritanian businesses, particularly SMEs, will gain access to the necessary financial resources to thrive and contribute to the country’s socio-economic advancement.