Economy of Mauritania

The economy of Mauritania possesses extensive iron ore deposits, constituting nearly 50% of its total exports. Reduced global demand for iron ore has led to production cutbacks. Recently, rising metal prices have prompted investments in gold and copper mining operations in the country's interior.<br>The coastal waters of Mauritania are renowned as one of the world's richest fishing grounds. Foreign overexploitation poses a significant threat to this vital revenue source. The nation established its first deep-water port near Nouakchott in 1986 to facilitate maritime trade.<br>In recent years, droughts and economic mismanagement have resulted in a substantial accumulation of foreign debt.

Top Sectors in Mauritania

Agriculture in Mauritania

Agriculture in Mauritania primarily focuses on livestock farming, including cattle, sheep, and goats. Livestock rearing is crucial for both subsistence and commercial purposes, supporting livelihoods across the country despite challenges posed by drought and desertification.

Mining in Mauritania

Mauritania's mining sector is dominated by iron ore production, which accounts for a significant portion of the country's exports. Recent investments have also been made in gold and copper mining, leveraging Mauritania's rich mineral resources amid fluctuating global demand for iron ore.

Fisheries in Mauritania

Mauritania's coastal waters are among the richest fishing grounds globally, supporting a diverse range of fish species. Fishing is a vital economic activity, with categories such as pelagic fish (like sardines and mackerel) and demersal fish being prominent in commercial fishing operations.

Infrastructure and Transportation in Mauritania

Infrastructure development in Mauritania has focused on improving transportation networks, including the construction of roads and the development of ports. Nouakchott's deep-water port, inaugurated in 1986, facilitates international trade and supports the export of minerals and fish products.

Economic Reforms and Privatization in Mauritania

Economic reforms in Mauritania have aimed at privatizing state-owned enterprises and enhancing the business environment. Privatization efforts have targeted sectors such as telecommunications and energy, aiming to attract foreign investment and stimulate economic growth.

Mauritania - Key Economic Indicators

Exports and Imports

Mauritania's economy heavily relies on exports of iron ore, fish, and gold. In recent years, iron ore has constituted a significant portion of exports, accounting for approximately 50% of total export earnings. Imports primarily include foodstuffs, machinery, and petroleum products. The total value of exports is around $2.7 billion, while imports amount to approximately $2.1 billion, resulting in a trade surplus bolstered by iron ore exports.

Infrastructure

Infrastructure in Mauritania is a priority for development, particularly in transportation. The country has been expanding its road network, although significant portions remain unpaved, particularly in rural areas. The nation's ports, including the Nouakchott deep-water port, play a crucial role in facilitating trade, while ongoing investments aim to enhance connectivity and logistical capabilities.

Balance of Trade

Mauritania typically maintains a trade surplus due to its substantial exports of iron ore. The balance of trade is positive, with exports exceeding imports, contributing to the country's economic stability. The surplus helps offset expenditures on imported goods and supports the inflow of foreign currency.

Fiscal Policy

Mauritania's fiscal policy focuses on managing government spending and promoting economic growth. The government's revenue primarily comes from taxes on mining activities, corporate profits, and trade tariffs. Tax revenue as a percentage of GDP is around 16%, with government spending aligned with development priorities and infrastructure improvements.

Monetary Policy

The Central Bank of Mauritania oversees monetary policy, aiming to maintain price stability and support economic growth. The Mauritanian Ouguiya (MRU) is the national currency, with the central bank engaging in interventions to manage exchange rates and ensure liquidity in the financial system.

Trade Agreements

Mauritania benefits from trade agreements such as the African Continental Free Trade Area, which aims to boost intra-African trade. Additionally, the country has agreements with the European Union under the Economic Partnership Agreement, facilitating preferential access to EU markets for certain exports, including fish products.

Environmental Regulations

Environmental regulations in Mauritania focus on sustainable fishing practices and the conservation of natural resources. Measures are in place to mitigate the impact of overfishing and preserve marine biodiversity in the country's rich coastal waters. The government collaborates with international organizations to enforce regulations and promote responsible resource management.

Tax System in Mauritania

Capital gains tax: Mauritania does not currently levy a specific capital gains tax on profits from investments. Income from investments is generally treated as regular income under the income tax regime.
Corporate tax rate: The corporate tax rate in Mauritania is 25%. This tax applies to the profits earned by businesses operating within the country, with deductions allowed for legitimate business expenses.
Sales tax: Mauritania applies a Value Added Tax (VAT) system, which was introduced in 2019. The standard VAT rate is 18%, applied to most goods and services consumed within the country.
Property tax: There is a property tax in Mauritania, which is levied on the rental income earned from real estate properties. The rate and specifics can vary depending on the location and value of the property.
Payroll tax: Employers and employees in Mauritania contribute to the National Social Security Fund (CNSS), which funds various social security benefits. Contributions are based on a percentage of wages and salaries, with rates depending on the type of employment.
Tax deductions and credits: Mauritania provides various deductions and incentives to businesses, particularly those engaged in priority sectors such as agriculture, industry, and renewable energy. These incentives aim to promote investment and economic development.
Tax compliance: Tax compliance in Mauritania is a significant challenge, with efforts ongoing to improve efficiency and transparency in tax collection. The government has implemented reforms to streamline tax procedures and enhance enforcement measures.
Tax burden: The tax burden in Mauritania is relatively moderate compared to some other countries. The combination of corporate taxes, VAT, and social security contributions contributes to the overall tax revenue collected by the government.

153 Live Notices for Mauritania ....

Showing 1 to 20

Consulting service for the development of the Manual of procedures for managing environmental and social risks and impacts

Mauritania

04 Jul 2024

31 Jul 2024