Mauritania secures $1bn trade finance deal with Islamic Development Bank arm

Mauritania has secured a $1 billion trade finance framework agreement with the Saudi-based International Islamic Trade Finance Corporation (ITFC) to support key sectors of its economy and strengthen trade capacity over the next five years.

• Mauritania has signed a $1 billion trade finance agreement with the International Islamic Trade Finance Corporation.
• The five-year framework will support energy imports, banking sector liquidity and SME financing.
• The deal also includes technical assistance to improve agriculture and trade facilitation.
• It builds on a long partnership between Mauritania and the Islamic Development Bank’s trade finance arm.

The agreement, which covers the period from 2026 to 2030, was signed in Jeddah during an official visit by Mauritania’s Minister of Economic Affairs and Development, Abdallah O. Souleymane O. Cheikh-Sidia. ITFC is the trade finance arm of the Islamic Development Bank (IsDB) Group.

The framework is designed to mobilise financing and technical assistance to support Mauritania’s economic development priorities, particularly in energy supply, banking sector liquidity and private sector growth.

Energy, banking focus

Under the arrangement, ITFC will help finance the import of energy commodities, a key priority for Mauritania as it works to stabilise energy supply and support industrial activity.

The facility will also provide trade finance instruments and confirmation lines for letters of credit to local banks, allowing them to support businesses involved in import and export activities.

Small and medium-sized enterprises (SMEs) are also expected to benefit from the programme through expanded access to financing aimed at supporting business growth and strengthening domestic value chains.

Technical assistance initiatives will complement the financing package. These programmes will focus on improving agricultural productivity and enhancing trade facilitation in strategic sectors of the Mauritanian economy.

Longstanding partnership

Mauritania has maintained a partnership with ITFC since the institution began operations in 2008. Over that period, cumulative financing approvals for the country have exceeded $1.2 billion, supporting sectors such as energy, agriculture and trade infrastructure.

Officials say the new framework builds on that relationship while expanding financial support for Mauritania’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, Mauritania’s Minister of Economic Affairs and Development.

ITFC Chief Executive Officer Adeeb Yousuf Al Aama said the agreement reflects the institution’s broader goal of using trade financing to drive economic development in member countries.

“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 facilities are often used by emerging and frontier economies to strengthen their capacity to participate in global trade by ensuring businesses have access to liquidity for imports and exports.

For Mauritania, a resource-rich West African nation whose economy relies heavily on commodities such as iron ore, gold and fisheries, improved access to trade financing could help expand commercial activity and support economic diversification.

The agreement also reinforces cooperation between Mauritania and institutions within the Islamic Development Bank Group, which finances development projects across its member countries.

By strengthening financing capacity and improving access to trade tools for businesses, the framework is expected to support Mauritania’s efforts to expand regional trade and improve economic resilience over the next five years.