Mauritania, covering a territory of 1,085,760 square km and with a population of 2.5 million and a GDP per capita around US$ 400, forms a geographical link between North Africa and sub-Saharan Africa. It is a growing market increasingly open to American trade and investment.
The government of the Islamic Republic of Mauritania (as the country is officially known) made a high-level decision to encourage imports and increase the availability of goods in all localities of the country. With the support of the World Bank and the International Monetary Fund, the government has also liberalized the exchange system and begun to reform the banking sector and privatize several state-owned companies. The privatization process will continue in 1999-2000. The telecommunications, electricity, and air transport companies are in the process of being privatized.
Major traders continue to import large quantities of consumer goods (rice, flour, sugar, wheat, long-life and powered milk and clothing), vehicles and spare parts, building equipment and materials, office equipment and supplies, cosmetics, and medicine. In 1998, the country's total imports increased by 15.5 percent in local currency (but decreased by seven percent in US$, due to a US$/ouguiya parity increase), and U.S. exports to Mauritania increased by 36 percent in local currency (a nine percent increase in US$). The U.S. share of total imports increased by 6.6 percent in 1998, moving it up from fourth in 1997 to third among Mauritania's largest suppliers (France and Germany).
Mauritania's economic performance is improving; the GDP annual growth rate in 1998 was 4.2 percent (while the estimated continental average was 3.2 percent). Exports and imports as a percentage of GDP reached 40 percent and 44 percent respectively. However, the country remains dependent on financial aid flows from the World Bank, European Union, United Nations and other donors.
The commercial environment for U.S. products is favorable. The government continues to encourage private investments through its privatization programs. If privatization leads to an improved management system, as expected, the resulting inflows of capital will further spur economic growth and development. Government priorities focus on the creation of small-and medium-size industries to produce essential goods locally and thus reduce the unemployment rate. Local telecommunications, mining, fishing, tourism, and other companies are interested in joint ventures with U.S. firms. Many local business people seek to represent or serve as agents/distributors for U.S. companies.
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Country Commercial Guide Mauritania