The European Investment Bank ( EIB Global ) and the African Development Bank ( AfDB ) have approved a US$275 million financing package to modernize Mauritania’s main railway corridor.

The agreement, signed on the sidelines of the Africa Investment Forum 2025 in Rabat, Morocco, comprises a US$150 million loan from AfDB and US$125 million from EIB Global. Both are private-sector, non-sovereign financings provided directly to the Société Nationale Industrielle et Minière ( SNIM ).

The loans will finance the rehabilitation of the existing railway, linking the iron ore mining hub of Zouerate to the Atlantic export terminal at Nouadhibou, plus the construction of 42 kilometres of new track connecting future mining sites at El Aouj and Atomai, and the acquisition of modern locomotives, wagons, and maintenance equipment.

The project is a flagship initiative under the European Union’s Global Gateway, which promotes sustainable infrastructure investment and responsible value chains for strategic industrial materials, as well as job opportunities.

It supports Mauritania’s efforts to expand production and exports while improving environmental and social sustainability across its mining and transport sectors.

Industrial transformation

The upgraded railway will help Mauritania consolidate its position as a key partner in the Sahel region’s sustainable industrial transformation.

“By connecting the mining region with global markets, this project illustrates what Global Gateway delivers: local growth, new jobs, and sustainable development,” says Jozef Síkela, EU commissioner for international partnerships.

AfDB president Sidi Ould Tah adds: “By supporting SNIM through a corporate, non-sovereign loan, we are demonstrating our determination to scale up private sector investment in strategic value chains.” 

SNIM is involved in the research, exploitation, processing, transport, and export of iron ore. Its deposits are located in the Tiris Zemour region, in the north of Mauritania.

The company fully manages its chain of operations. It owns and operates a railway line, over 700 kilometres long, mainly used for the transport of iron ore.