Mauritania WT/TPR/S/250 
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  I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY  
1. The Islamic Republic of Mauritania is situated in north west Africa, covering an area of 
1,031,000 km2 - four fifths of which are desert, and has a population of 3.2 million.  Population 
density is around three inhabitants per square kilome tre.  The annual rate of demographic growth is 
approximately 3 per cent, life expectancy is 56.6 years and the literacy rate among adults (those over 
15 years old) is 55.8 per cent. 
2. The poverty rate in Mauritania has fallen considerably in recent years.  It dropped from 
46.7 per cent in 2004 to 42 per cent in 2008.  Howe ver, sustained demographic growth, insufficient 
economic growth and the low focus on using economic growth as a tool for reducing poverty mean 
that the absolute number of poor has continued to rise.1  Rural areas are home to nearly 78 per cent of 
the country's poor, a proportion that has remained  stable despite the various Poverty Reduction 
Strategy Papers (PRSPs).  The failure to implemen t agricultural and pastoral development strategies 
has probably played a major part in the persistence of rural poverty.  As a result, the Mauritanian 
economy faces several short- and medium-term ch allenges.  The resumption and furtherance of 
economic growth, especially in agriculture, and th e quest for socio-political stability should help 
stimulate employment and reduce poverty. 
3. The informal sector still plays a very important ro le in Mauritania:  around 75 per cent of total 
employment is informal, as is around 37 per cent of total GDP.2  According to the World Bank, the 
predominance of the informal sector can be explained by several factors, including the 
disproportionate fiscal burden on small busin esses, administrative barriers and inadequate 
enforcement of laws and regulations. 
4. However, the Mauritanian economy has a number  of strengths such as its abundant mining 
resources (iron, copper, oil, gold, uranium, etc.);   favourable conditions for agriculture, including 
livestock raising;  and an extensive, 720 km long coastline.  The sectoral distribution of GDP has 
remained essentially unchanged since 2004.  Agricu lture (including livestock-raising, forestry and 
fisheries) accounts for around 20 per cent of GDP.  The services sector, which contributes more than 
half of GDP, is based in particular on booming ce llular telephony and on government.  The share of 
mining and quarrying in GDP has grown steadily over recent years, from 13.6 per cent in 2004 to 15.3 per cent in 2009.  Manufacturing (around 5 per cent of GDP) has remained weak since 2004. 
5. The national currency is the ouguiya (UM) and th e issuing institution is the Central Bank of 
Mauritania (BCM).
3  The ouguiya was pegged to the US dollar in October 2005 at a rate of 
UM 268.5 per US dollar  prior to the adoption of a "managed float" mechanism in January 2007.  The exchange market is open to the primary banks  and the BCM which can submit purchase or sales 
orders to it, in foreign currency, either on their own or their clients' behalf.  Transactions relate only to 
amounts denominated in US dollars or euros. 
6. Over recent years, Mauritania has benefited from a number of debt cancellations under the 
principal initiatives in this field.  It was one of th e first countries to benefit under the Heavily Indebted 
Poor Countries (HIPC) Initiative and reached the completion point in June 2002, earning the country 
                                                      
1 Islamic Republic of Mauritania - United Nations System (2010). 
2 UNDP - Centre mauritanien d'analyse des politiques  (2007). 
3 Mauritania accepted Article VIII of the Statutes  of the International Monetary Fund (IMF) on 
19 July 1999.   IMF (2008). WT/TPR/S/250 Trade Policy Review 
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  cancellation of US$622 million on its debt.  Maur itania also benefited under the Multilateral Debt 
Relief Initiative (MDRI) from cancellation of ar ound US$47.3 million of its debt, bringing its 
indebtedness to a more sustainable level. 
7. According to the BCM, Mauritania's extern al debt was around US$3 billion at end-2009 
(99.8 per cent of GDP) compared to US$2.6 billio n in 2008 (74.9 per cent of GDP), an increase of 
14.1 per cent (Table I.1).  However, a significant pro portion of Mauritania's public debt is regarded as 
"passive" since payment has not been claimed by the creditors concerned for many years.  It consists mainly of arrears to Kuwait and Libya amounting to  some US$1.2 billion in 2009.  Repayments of 
Mauritania's external debt amounted to US$60.6 million in 2009, compared to US$75.8 million in 
2008.  The ratio of debt servicing to exports of goods and services was 4 per cent in 2009 compared to 
5 per cent in 2008;  the ratio had stood at around 24 per cent in 2000. 
(2) R
ECENT ECONOMIC DEVELOPMENTS  
8. Since its previous Trade Policy Review, Maurita nia's economy has performed relatively well.  
The discovery of oil fields and their exploita tion since 2006 has profoundly changed the country's 
growth dynamic, driving the rate of growth in GDP to 11.4 per cent.4  Consequently, per capita GDP 
almost doubled between 2004 and 2007 from US$541 to US$958 and attained the figure of US$1,157 
in 2008 (Table I.1).  Despite that increase, Maur itania is still one of the Least Developed Countries 
(LDCs).  Moreover, despite the considerable, stea dy improvement in its Human Development Index 
(HDI) since 2005 from 0.411 (137th out of 177 countries) to 0.433 in 2010 (136th out of 
169 countries), Mauritania is still one of the c ountries in the low human development category. 
9. Economic performance deteriorated in 2008 and 2009, when growth in real GDP fell to 
3.7 per cent and -1.1 per cent respectively as a resu lt of internal and external upheavals.  Serious 
technical problems led to a drop in production fro m the Chinguetti oilfield from around 75,000 barrels 
per day at the beginning of 2006 to 10,000 barrels per day in 2009.  Moreover, the fall in demand and 
in the prices of Mauritania's principal export products (iron, copper, fisheries products) led to a decline in the value of exports.  Finally, the reduc tion in official development assistance following the 
military coup in August 2008 c ontributed significantly to the slow-down in economic activity.
5 
Table I.1  
Selected macroeconomic  indicators, 2004-2009 
 2004 2005 2006 2007  2008  2009a 
Miscellaneous        
Population (millions) 2.8 2.8 2.9 3.0 3.1 3.2 
Life expectancy at birth (years) 56.0 56.0 56.0 57.0 57.0 n.a. 
Gross school enrolment ratio (per cent) 96.0 95.1 96.9 97.9 n.a. n.a. 
Nominal GDP (US$ million) 1,494.2 1,857.8 2,699.2 2,837.5 3,588.6 3,024.3 
Real GDP (annual variation %) 5.2 5.4 11.4 1.0 3.7 -1.1 
Real GDP excluding petroleum (annual variation %)  5.2 5.4 4.1 5.9 4.1 -0.9 
Per capita GDP (at constant prices, 1998 US$)a 541.0 656.5 934.0 958.6 1,157.6 945.1 
Unemployment rate (%) n.a. n.a. n.a. n.a. n.a. n.a. 
Terms of trade (annual variation %) n.a. n.a. n.a. n.a. n.a. n.a. 
Gross official reserves (end of period - US$ million)b 39.0 70.0 194.0 209.0 194.9 237.9 
Gross official reserves (months  of imports, goods and services) 0.6 1.1 2.6 1.9 1.7 2.5 
Nominal external debt (US$ million) 3,151.0 3,318.4 2,540.9 2,451.0 2,649.1 3,024.8 
Nominal external debt (% of GDP excluding petroleum) 210.9 178.1 94.1 94.0 80.2 104.5 
Sectoral breakdown of GDP (at 1998 prices)        
Agriculture, livestock, forestry and fishing  20.2 20.3 18.2 18.9 19.7 20.2 
Industries 28.7 27.3 32.6 29.8 28.6 27.5 
 Mining and quarrying 13.6 12.1 18.8 15.5 15.6 15.3 
                                                      
4 African Development Bank, economic statistics, 2009. 
5 IMF (2010). Mauritania WT/TPR/S/250 
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   2004 2005 2006 2007  2008  2009a 
 Manufacturing 6.8 5.8 5.2 5.5 5.4 5.4 
 Construction and public works 8.3 9.5 8.5 8.7 7.6 6.8 
Services 51.1 52.4 49.2 51.3 51.7 52.2 
 Transport and telecommunications 8.5 7.9 7.6 8.2 8.7 8.5 
 Commerce, restaurants and hotels 13.8 13.7 13.1 13.6 13.5 12.7 
 Government 14.4 15.8 14.7 15.0 14.9 15.0 
Other services 14.3 14.9 13.9 14.5 14.5 16.0 
National accounts at market prices        
 Final consumption expenditure 96.0 97.8 79.4 90.0 92.8 90.4 
 Resident households 19.8 24.3 20.8 21.6 14.6 16.1 
 Government 76.2 73.5 58.6 68.4 78.1 74.3 
 Investment 45.8 61.5 25.0 24.3 29.4 27.7 
 Imports of goods and non-factor services 39.9 37.9 53.8 54.5 54.4 49.0 
 Exports of goods and non-factor services  -81.7 -97.3 -58.3 -68.9 -76.6 -67.0 
Gross national savings, as a percentage of GDP 17.1 14.3 23.7 11.0 12.0 12.4 
Prices and interest rates        
Inflation (annual average) 10.4 12.1 6.2 7.3 7.3 2.2 
Discount rate (%) 11.0 14.0 14.0 12.0 n.a. n.a. 
Monetary aggregates (end of period)        
Money supply and quasi-money (percentage of GDP excluding 
petroleum)  35.2 32.4 31.5 37.4 42.6 49.0 
Notes and coins in circulation (percentage of GDP excluding 
petroleum) 11.2 10.3 11.8 12.2 12.4 14.6 
Exchange rate        
Ouguiyas per US dollar  (annual average)  256.2 265.5 268.6 258.6 238.2 262.4 
Real effective exchange rate (end of period, variation %; 
- = depreciation) n.a. 7.5 -1.3 2.8 5.8 -4.9 
Nominal effective exchange rate (end of period) n.a. n.a. n.a. n.a. n.a. n.a. 
Public finances        
Revenue and grants 34.1 26.6 56.0 25.2 22.1 23.8 
 Tax revenue 15.5 15.4 13.4 14.6 13.4 13.4 
 Non-tax revenue 15.4 9.1 7.8 8.5 7.9 9.6 
 Grants 3.3 2.1 34.9 2.2 0.8 0.8 
Total expenditure and net lending 39.1 33.7 28.5 29.6 30.7 30.6 
 Current expenditure 26.7 25.7 21.8 21.6 22.4 21.4 
 Salaries and wages 4.5 7.9 7.3 8.8 8.3 9.7 
 Capital expenditure 12.4 7.4 6.2 8.0 6.5 6.5 
 Restructuring and net lending 0.0 0.6 0.5 0.0 1.8 2.6 
Balance excluding petroleum:  grants excluded -8.3 -9.2 -7.3 -6.6 -9.3 -7.6 
Balance excluding petroleum:  grants included -5.0 -7.1 27.6 -4.4 -8.5 -6.9 
Oil revenues (net) 0.0 0.0 8.3 2.7 2.0 1.7 
Overall balance (excluding grants) -8.3 -9.2 1.0 -3.9 -7.3 -5.9 
Overall balance (including grants) -5.0 -7.1 35.9 -1.7 -6.5 -5.1 
Financing requirements (-) or surplus (+) 2.8 0.7 0.3 -0.7 0.3 0.2 
n.a. Not available. 
a Projections. 
b Excluding petroleum. 
Source:  Central Bank of Mauritania Rapport annuel 2009 ;  Ministry of Economic Affairs and Development, National 
Statistical Office, Annuaire statistique 2007 , October 2008, and main economic and financial indicators:  
2007-2009. 
10. Public finances have deteriorated over recent years.  The combined effects of a fall in 
government revenue, a surge in expenditure unde r the Special Intervention Programme (SPI)6, and the 
rigidity in falling public expenditure caused by a wage bill that has been steadily rising since 2006, 
the budget deficit (excluding petroleum) rose from 2.2 per cent of GDP in 2007 to 7.7 per cent in 
2008.  In 2006 the authorities made significant effort s to improve management of public spending.  
In that context extrabudgetary expenditure was withdrawn and mont hly budget execution reports were 
published incorporating a reconciliation of Treasury and BCM data.  The Government has undertaken 
major reforms with regard to reve nue, in particular the introduction of a single taxpayer identification 
                                                      
6 The Mauritanian Government adopted the SPI, amounting to around US$161 million (4.9 per cent of 
non-oil GDP) in response to the increase in food prices. WT/TPR/S/250 Trade Policy Review 
Page 4 
  
  number, enhanced customs controls and their applic ation to exports of hydrocarbons.  However, the 
surge in food and petroleum prices in addition to th e rise in the wage bill in Mauritania is jeopardizing 
the effectiveness of budgetary policy. 
11. In January 2007 the institutional framework of monetary policy underwent profound reform 
when new legislation governing the status of the BCM was promulgated.7   The new legislation made 
price stability the Bank's principal task.8  The BCM's role is also to ensure the stability of the financial 
system and to assist in implementing th e Government's general economic policy.9 
12. New monetary policy instruments, such as BCM notes, certificates of deposit and commercial 
paper, introduced in 2007 had not been activated by mid-2011.  The aim of creating BCM notes was 
to enhance the operational indepe ndence of monetary policy by allowing the BCM to use its own 
securities to regulate banking liquidity.  The BCM has still not used these ne w securities, however.  
The BCM has gradually reduced the key policy rate since 2007 from 14 per cent to 12 per cent, then 
from 12 per cent to 9 per cent in 2009 to accompan y the efforts made to revive the economy.  
The continuing gradual relaxation in that rate ha s been accompanied by monitoring of inflationary 
pressures through the application of a more flexib le exchange policy and the reintroduction of the 
auction system for foreign exchange.  The required reserves ratio has remained at 7 per cent since 
2007.   
13. The BCM is pursuing its objective of disciplini ng inflation by controlling the intermediate 
variables in its monetary policy, including the mone tary aggregate M2, which rose by 15.2 per cent in 
2009 as a result of the monetization of the recent allocation of Special Drawing Rights (SDRs).  
According to the banking law of Mauritania, BCM a ssistance to the State must not exceed 5 per cent 
of government revenue in the preceding year.  Howeve r, the authorities have reported that recourse by 
the State to this means of finance is rare.  Inflation was relatively high in 2004 and 2005 
(10.4 per cent and 12.1 per cent respectively) befo re falling to 6.2 per cent in 2006.  It dropped 
sharply in 2009 to 2.2 per cent, compared to around 7 per cent for 2007 and 2008.  In recent years, inflation in Mauritania has largely been imported as a result of the surge in international prices for 
food and petroleum and the depreciation of the dollar (to which the ouguiya was pegged between 
2005 and 2007) against the euro.   
14. Mauritania's current account balance has been in  deficit since 2004 (Table I.2).  The deficit 
was fairly high in 2004 and 2005 at US$517.1 m illion and US$876.8 million respectively.  After a 
significant fall in 2006 it increased over the follo wing three years, rising from around US$321 million 
in 2007 to US$557 million in 2008  before improving considerab ly in 2009 (US$485 million).  
According to the BCM this trend can largely be ex plained by the move from a trade surplus of around 
US$22 million in 2007 to a trade deficit in 20 08 and 2009 (US$153.6 million and US$65.1 million 
respectively).
10  The higher costs of Mauritania's key imports (food and petroleum products) are the 
main reason for the deterioration in the trade balan ce.  Inflows by way of fishing rights and revenue 
from tourism led to a fall in the services deficit from around US$630 million to US$483 million. 
                                                      
7 Ordinance No. 004/07 of 12 January 2007 on the status of the BCM. 
8 The new text made the Governor of the BCM and his deputy fixed appointments.  They are appointed 
for a five-year term, which may be renewed on one or mo re occasions, and can only be removed from office in 
specific circumstances following  a well-defined procedure. 
9 A Monetary Policy Council (CPM) comprising two governors and five other members appointed by 
presidential decree is responsible for drawing up the BCM's monetary policy.  A Monetary and Budget Policy Coordination Committee was set up in 2007 to deal with operational matters.  The Committee meets, in 
principle, each week to take decisions on the volume and methods of intervention on the money market. 
10 The rate of coverage of imports by exports was 92.1 per cent in 2008 and 95.4 per cent in 2009. Mauritania WT/TPR/S/250 
 Page 5 
 
 
  Table I.2  
Balance -of-payments developments, 2004-2009 
(US$ million) 
 2004 2005 2006 2007  2008  2009
Trade balance -483.8 -803.2 199.6 22.9 -153.6 -65.1 
 Exports 440.0 625.0 1,367.0 1,454.0 1,787.6 1,358.6 
 Iron ore 230.2 389.4 467.2 575.0 823.4 521.6 
 Fishing 172.6 172.7 200.6 254.3 288.5 268.6 
 Petroleum 0.0 0.0 642.1 338.7 325.8 218.0 
 Copper n.a. n.a. 5.6 183.5 167.2 118.6 
 Gold n.a. n.a. 1.6 59.2 168.6 228.5 
 Imports -923.0 -1 428.0 -1,167.0 -1,431.0 -1,941.2 -1,423.7 
 Petroleum products -145.0 -196.0 -227.0 -290.0 -497.3 -281.8 
 Mining and quarrying equipment -415.0 -798.0 -434.0 -494.0 -717.9 -391.5 
 Other -363.0 -439.0 -505.0 -647.0 -726.1 -750.4 
Services and income (net) -142.0 -234.6 -393.9 -488.5 -600.3 -551.3 
 Services (net) -207.6 -299.2 -319.6 -427.7 -630.8 -483.5 
 Credits 52.0 79.6 86.7 84.2 138.0 158.7 
 Fishing licences 22.1 31.6 33.7 37.8 38.0 35.7 
 Debits -259.6 -378.7 -406.3 -511.8 -768.9 -649.1 
 Freight -125.9 -194.8 -159.1 -193.8 -234.5 -185.6 
 Income (net) 65.6 64.6 -74.3 -60.8 30.5 -67.8 
 Credits 104.5 108.6 119.0 140.9 130.5 118.0 
 EU fishing rights 103.2 103.3 108.0 118.4 117.0 107.5 
 Debits -38.9 -44.0 -193.3 -201.7 -100.0 -185.9 
 Interest due on official debt - 38.9 -41.7 -27.4 -24.3 -31.6 -29.7 
 Wages and profits in the petroleum sector n.a. n.a. -160.0 -102.8 -30.4 -4.0 
Current transfers (net) 108.7 161.0 158.7 144.3 196.6 130.8 
 Private transfers (net) 47.7 60.0 66.5 70.2 71.7 66.4 
 Official transfers 61.0 101.0 92.1 74.0 124.9 64.4 
 HIPC multilateral aid 30. 9 28.7 14.3 8.4 5.8 5.9 
Current account balance -517.1 -876.8 -35.0 -321.3 -557.3 -485.6 
Capital and financial operations account 427.1 763.5 257.8 316.3 408.6 392.3 
 Capital account 15.5 0.0 1.107.2 50.8 30.9 0.0 
 Debt cancellation (MDRI) (IMF) n.a. n.a. 48.5 48.1 0.0 0.0 
 Debt cancellation (Spain) n.a. n.a. n.a. n.a. 30.9 n.a. 
 Financial account 411.6 763.5 -849.4 265.6 377.7 392.3 
 Direct investment (net) 391.6 814.1 154.6 138.3 338.4 -3.1 
 Petroleum industry (net) 362.1 731.1 1.6 127.5 189.4 -15.1 
 Official medium- and long-term loans 19.9 28.0 -835.7 79.3 200.5 318.6 
 Disbursements 95.2 52.6 73.8 162.3 280.7 365.1 
 Principal due -75.3 -80.6 -909.5 -83.0 -80.2 -46.5 
 Other private capital transactions 0.1 -22.5 -168.3 48.0 -161.2 76.8 
 Change in private external arrears n.a. n.a. -74.4 0.0 0.0 32.0 
Errors and omissions -19.2 39.4 60.2 20.8 103.3 83.5 
Overall balance -109.2 -73.9 283.0 15.8 -45.4 -9.8 
Finance 109.2 73.8 -282.3 -15.8 45.4 9.8 
 Net foreign assets 50.9 10.7 -315.7 -55.0 4.4 -9.8 
 BCM (net) 1.7 -29.4 -162.0 -32.2 10.9 33.1 
 Assets -7.2 -33.0 -124.2 -14.4 13.9 -43.1 
 Liabilities 8.8 3.6 - 37.8 -17.9 -3.0 76.2 
 Commercial banks 49.2 40.1 -104.9 -12.9 -20.0 -56.5 
 Petroleum account n.a. n.a -49.2 -9.9 13.5 13.6 
 Special financing 58.3 63.1 33.4 39.2 41.0 19.6 
n.a. Not available. 
Source:  Islamic Republic of Mauritania , Central Bank of Mauritania, Rapport annuel 2008 et 2009.  
15. According to the BCM, owing to the US$318 million resources mobilized on medium- and 
long-term external borrowings, the capital and fi nancial account balance recorded a surplus of 
US$408 million in 2008, compared to US$392 milli on in 2009.  This increase in resources is 
apparently due to the rise in disbursements th rough Chinese financing of a project to renovate the 
Autonomous Port of Nouakchott. WT/TPR/S/250 Trade Policy Review 
Page 6 
  
  16. By end-2009 international reserves were the equiva lent of 2.2 months of imports of goods and 
services as compared to 0.6 months in 2004. 
(3) TRENDS IN TRADE AND INVESTMENT  
(i) Developments in trade 
17. Mauritania's trade balance has fluctuated since 2004 (Table I.2).  It moved from a surplus in 
2006 and 2007 to a deficit in 2008, reflecting more rapi d growth in the value of imports than in that of 
exports.  The deficit nonetheless na rrowed in 2009 (section 2).  Acco rding to BCM statistics, export 
revenue accounted for US$1,454 million in 2007, or  around half of Mauritania's GDP, thanks to 
increased sales of ores (iron, copper, and gold) a nd marine products.  However, the accompanying fall 
in exports of iron, copper and oil, alongside the downward trend in petroleum production, led to a 
drop in export revenue to US$1, 358 million.  Imports were estima ted at some US$1,423 million in 
2009, suggesting a 20.3 per cent decrease compared to 2008.   
(ii) Composition of trade 
(a) By product 
18. The structure of Mauritanian exports remains unchanged since its previous Review.  
It continues to be highly concentrated on commoditi es (Chart I.1 and Table AI.1).  Official statistics 
show that Mauritanian exports consist essentially in  fisheries and mining products (copper, iron, gold 
and petroleum).  Although the official statistics do not refer to exports of agricultural products, other sources confirm that livestock and hides and sk ins in particular are exported to neighbouring 
countries. 
19. The structure of imports is less concentrated th an is the case for exports and is dominated by 
primary products, which accounted for 64 per cent of the total in 2008 compared to 44.7 per cent in 
2002 (Chart I.1 and Table AI.2).  The share of basi c food products (sugar, wheat, flour, rice) in total 
imports also rose, from 21.8 per cent in 2002 to 28.2 per cent in 2008.  Higher oil prices and the 
country's growing fuel needs resulted in an increase in  the share of fuel in imports (around 35 per cent 
in 2008).  The share of manufactures appears to have  decreased in recent years from 55.1 per cent of 
total imports in 2002 to  36 per cent in 2008. Mauritania WT/TPR/S/250 
 Page 7 
 
 
   Chart I.1
Structure of merchandi se trade, 2002 and 2008
2002 2008
(a)  Exports (f.o.b.)
Total:  US$319.9 million Total:  US$1,627.1 million
(b)  Imports (c.i.f.)
Total:  US$355.4 million Total:  US$1,637.6 millionPer cent
Calculations by the WTO Secretariat based on data from the UNSD Comtrade database
(SITC Rev.3).Manufactures
55.1Manufactures
36.0Food products
21.8
Fuels
22.0
Chemicals
4.2Other primary 
products
0.8Other semi-
manufactures
9.5Electrical 
machinery
7.1Transport 
equipment
12.6
Iron 
and 
steel
3.2Other
0.1
Non-electrical 
machinery
11.7Primary 
products
44.7
Primary products
64.0Frozen fish 
(excluding 
fillets)
11.1
Iron ores
47.5Copper ores
7.9
Other consumer 
goods
6.8Crude 
petroleum
20.1Gold
7.4Other
5.9
Frozen fish 
(excluding 
fillets)
22.8
Iron ores
61.9Copper ores
0.0Crude 
petroleum 
oils
0.0Gold
0.0Other
15.3
Food products
28.2
Fuels
35.0Chemicals
3.8
Other primary 
products
0.7Other semi-
manufactures
6.5Electrical 
machiners
2.6Transport 
equipment
7.8
Iron and 
steel
1.5Other 
0.1
Non-electrical 
machinery
9.9Other consumer 
goods
3.9
Source :WT/TPR/S/250 Trade Policy Review 
Page 8 
  
  (b) By country 
20. The European Union (EU) is the principal des tination of exports from  Mauritania (78 per cent 
of the total) (Table AI.3 and Chart I.2), with France the main export market within the EU for 
Mauritanian products.  The shares taken by China,  Switzerland and Japan are between 5 per cent and 
7 per cent.  Most exports to countries neighbouring Mauritania are informal and thus fall outside the 
scope of official statistics.  Despite a decline in its share in total imports from 51 per cent in 2002 to 
42 per cent in 2008, the European Union (especially France) remains the principal source of imports.  
Imports from Russia rose from 1 per cent to 11 per cent of the total between 2002 and 2008.  This trend would appear to be associated with  investments made by a Russian multinational 
(Integra Group) in sales activities in Mauritania in 20 06 (Table I.3).  The share of African countries 
remained stable at around 8 per cent of Mauritani a's total imports (Table AI.4 and Chart I.2). 
(iii) Trade in services 
21. Mauritania is a net importer of services.  According to the BCM's statistics, the major increase 
in the value of services for the petroleum sector fro m UM 13.8 billion in 2006 to UM 49.4 billion in 
2007 led to considerable growth  in imports of services from UM 109.1 billion to UM 158.6 billion 
over the same period.  Freight accounted for around 32 per cent of Mauritania's services expenditure.  
The significant share of freight is explained by the increase in imports and rising oil prices, which led to higher transport costs.  On the other hand, the BCM's annual report for 2009 indicates that in terms of value, imports of services fell from UM 185.5 billion in 2008 to UM 168.3 billion in 2009, a drop of 8.3 per cent.  This trend was largely due to th e decline in expenditure on services in the petroleum 
sector in the absence of drilling in 2009 and the dr op in expenditure on services in the mining sector 
following completion of the work on gold producti on facilities.  Transport  and insurance related 
services recorded a 17.18 per cent fall from UM 56. 6 billion in 2008 to UM 46.8 billion in 2009. 
22. Inflows, basically consisting of revenue from tourism and fishing licences, experienced 
significant growth in 2009, standing at UM 41. 6 billion compared to UM 33.3 billion in 2008. 
(iv) Investment 
23. Foreign direct investment (FDI) inflows to  Mauritania were closely associated with 
privatization operations conducte d by the Government on a case-by-case basis until 2001 and the 
FDI levels recorded were very low owing to the absence of further divestments of State-owned 
enterprises (Chapter III(4)(i)), the lack of infr astructure, the absence of skilled manpower and 
governance problems.  As from 2001, the discovery of petroleum resources generated a significant 
inflow of FDI, which rose from an  average of US$8.7 million for the period 1991-2000 to an average 
of US$300 million for the period 2001-2005.  Nonethel ess, the decline in petroleum production since 
2008 resulted in a sharp fall in direct investment flows, leading to disinvestment of US$3.1 million in 
2009 (Table I.2).  Sectors such as fisheries, the processing industry and tourism find it difficult to attract investment despite the country's vast pot ential.  On the other hand, significant amounts of 
FDI went to the telecommunications sector as a resu lt of the liberalization and privatization process 
launched in 2001. 
 Mauritania WT/TPR/S/250 
 Page 9 
 
 
  Chart I.2
Direction of merchandise trade, 2002 and 2008
2002 2008
(a) Exports (f.o.b.)
(b) Imports (c.i.f.)Per cent
Source:Total:   US$355.4 millionAmerica
8.3
Spain
5.5Belgium
4.9Other 
European 
countries 2.1
Germany
6.1Other EU 
countries
3.0Other
22.4
China 1.5France
30.5Total:   US$319.9 millionGermany
8.9Japan
9.8 China
0.6Other Asian 
countries
1.8Other
3.1
Asia
12.2
EU(27)
78.8
Total:  US$1,627.1 million
Total:   US$1,637.6 millionOther Asian 
countries 1.0
Africa  8.0Asia  6.4
EU(27)
51.9
Russian Fed. 1.0Japan 3.9France
17.9
Other 
European 
countries 0.0
Belgium
16.3Africa  5.9
Spain
14.6Other EU 
countries 1.8
Italy
19.4
Netherlands  
1.9Asia
16.1UE(27)
42,1EU(27)
47.5
Asia
13.4Germany
8.2
Japan
5.4
China
7.8Other Asian 
countries 0.1Other
29.9France
16.3
Other 
European 
countries  7.4Belgium
5.1
Africa  
1.9Spain
6.7
Other EU 
countries 
3.8Italy
7.3
America
8.0
Spain
4.9Belgium
6.1
Other European 
countries
0.6Germany
3.1Other EU 
countries
4.0Other
13.3
China 4.9France
16.3 Other Asian 
countries 7.9
Africa  8.8
Russian 
Federation 
11.2Japan 3.3
Netherlands  
7.7
Calculations by the WTO Secretariat based on data from the UNSD Comtrade database 
(SITC Rev.3).
 WT/TPR/S/250 Trade Policy Review 
Page 10 
  
  24. Despite the adoption by Mauritania of a policy of openness to FDI and the liberalization of its 
economy over recent years, investment flows (exc luding the hydrocarbons and mining sectors) have 
been minuscule overall.  The explanation for this  lies essentially in inadequate implementation of 
investment regulations.  According to Mauritania's previous investment policy review, difficulties in 
implementing provisions on the single window and business creation, along with the weaknesses in 
the institutional frameworks pertaining to competiti on and intellectual property, are hampering the 
promotion of FDI in Mauritania.  These obstacles are compounded by the high cost of factors of production, the lack of infrastructure, weaknesse s in human capital and a very narrow market. 
25. Statistics on business sectors and the geographical distribution of inve stments are rare.  
It nonetheless would appear that the mining and hydr ocarbons sectors account for a considerable share 
in total FDI.  European countries, especially France, Germany, Denmark and Sweden, still have a strong presence in several business sectors such as mi ning and commercial services.  The stock of Chinese 
investments is growing steadily ;  it increased 17-fold between 2003 and 2009 from US$1.8 million to 
US$31.3 million.  The countries of North Africa and the Middle East ar e also continuing to invest in 
Mauritania:  Qatar in mini ng and Morocco in transport.
11  Between 2003 and 2010 there was an influx of 
new investors from an increasingly diverse range of countries investing in new companies (Table I.3). 
Table I.3 
FDI, new investments announced  during the period 2003-2010 
Name of company  Estimated 
investment (in 
US$ million)  Estimated 
jobs created  Year  Home country  Sector  Key business 
function  
Woodside Petroleum 550.0 154 2003 Australia Coal, oil and 
natural gas Extraction 
Hardman Resources 521.9 215 2006 Australia Coal, oil and 
natural gas Extraction
Woodside Petroleum 521.9 215 2004 Australia Coal, oil and 
natural gas Extraction
Baraka 521.9 215 2005 Australia Coal, oil and 
natural gas Extraction
Woodside Petroleum 521.9 215 2005 Australia Coal, oil and 
natural gas Extraction
ArcelorMittal 242.3 1,667 2008 L uxembourg Metals Extraction
Sphere Investments 233.7 1,524 2003 Australia Metals Extraction
Vasco Catalana 194.1 149 2010 Spain Transport Logistics, 
distribution and transport 
Rio Narcea Gold Mines 63.5 93 2005 Canada Metals Extraction 
Al Kharafi Group 27.5 250 2007 Kuwait Hotels and 
tourism Construction 
BNP Paribas 12.2 20 2006 France Financial 
services Business services 
Qatar National Bank 
(QNB) 9.2 16 2010 Qatar Financial 
services Business services
Attijariwafa Bank 9.2 16 2007 Morocco Financial 
services Business services
Group of Kaunas Grain 
Com 4.14 23 2010 Lithuania Food and 
tobacco Industry 
Integra Group 3.8 9 2006 Russian 
Federation Business 
services Sales, marketing 
and support 
Groupe Ortec 3.8 9 2006 France Business 
services Sales, marketing 
and support 
Vasco Catalana 3.2 20 2010 Spai n Transport Sales, marketing 
and support 
Source : UNCTAD (2011), Foreign Direct Investment in  LDCs:  Lessons Learned from the Decade 2001-2010 and the Way 
 Forward , New York and Geneva. 
                                                      
11 Foreign Direct Investment in LDCs:  Lessons Learned from the Decade 2001-2010 and the Way 
Forward , United Nations Conference on Tr ade and Development (UNCTAD), 2011. Mauritania WT/TPR/S/250 
 Page 11 
 
 
  (4) OUTLOOK  
26. The outlook for growth in the Mauritanian economy was recently compromised by the 
internal political crisis resulting in the suspension of  assistance from its principal partners;  drops in 
the prices of, and demand for, its principal export pr oducts;  the rise in food prices;  and a significant 
decline in oil production.  However, subject to th e projected recovery in iron ore and copper prices, 
the resumption of donor support and the implementa tion of a macroeconomic reform programme for 
which Mauritania has requested support from the IM F for the period of 2010-2012, macroeconomic 
projections for the next five years are for annua l increases in real GDP av eraging 5.2 per cent.  
The projection for inflation is 5 per cent and for the basic non-oil deficit to fall to 1 per cent of non-oil 
GDP.12  The IMF forecasts a return to high growth ra tes in the long term as a result of the major 
investment projects under way in Mauritania. 
27. The Mauritanian Government expects to achieve  the objective of reducing its non-oil budget 
deficit through measures to increase revenue and reduce expenditure.  Where revenue is concerned, 
fiscal reforms envisage a broadening of the tax base, curtailing the use of exemptions, and improvements in tax collection.  On the expenditu re side, the development partners, notably the 
World Bank, support the Mauritanian Government's efforts to reduce the wage bill from 1.7 per cent 
of non-oil GDP by 2012.  Moreover, the Government  intends to reduce transfers and subsidies to 
State owned enterprises.  Greater prudence in moneta ry policy should continue in order to rein in 
inflation effectively.  Additionally, reforms ha ve been announced to strengthen the regulatory 
framework of the financial sector so as to  increase its transparency and reliability. 
28. Improvements in infrastructure and an overhau l of the business climate are also envisaged 
with a view to increasing and diversifying prod uction, and thereby consolidating Mauritania's 
economic growth. 
 
                                                      
12 IMF (2010a).