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publicationJune 19, 2025

Strengthening economic resilience and social safety nets for sustainable development in Mauritania

Mauritania Economic Update 2025

STORY HIGHLIGHTS

  • The World Bank's economic update for Mauritania notes a slowdown in growth to 5.2% in 2024, attributed to a decline in extractive production and moderate public consumption, though macroeconomic fundamentals are strengthening.
  • The report emphasizes the importance of diversifying Mauritania's economy by investing mining revenues into sectors like agriculture, services, and the digital economy to ensure inclusive growth and macroeconomic stability.
  • Social policy reforms, including shifting from generalized subsidies to targeted cash transfer programs like Tekavoul, are key to reducing poverty and inequality. The effectiveness of these programs hinges on improving targeting, benefit levels, and institutional coordination.

NOUAKCHOTT, JUNE 19, 2025 - The latest edition of the World Bank's economic update on Mauritania highlights a slowdown in growth to 5.2% in 2024 (2.2% per capita), down from 6.4% (3.4% per capita) in 2023. This deceleration is mainly attributed to a decline in extractive production and more moderate public consumption. Despite the slowdown, the country's macroeconomic fundamentals continue to strengthen, supported by a tight monetary policy, falling global food and energy prices, and prudent fiscal management.

In an uncertain global context, the medium-term outlook remains positive, with growth projected to average 4.9% between 2025 and 2027. However, risks remain elevated, particularly in relation to global market volatility and internal vulnerabilities.

The report emphasizes the urgent need for Mauritania to diversify its economy beyond the extractive sectors by investing mining revenues in promising sectors such as agriculture, services, and the digital economy. Such a strategy would help consolidate macroeconomic stability while fostering more inclusive growth.

Social policy reform is also a key lever. The gradual shift from generalized subsidies to targeted cash transfer programs—such as Tekavoul—represents a major step forward in the national poverty reduction strategy. The national social registry, now covering the entire country, allows for better identification of vulnerable households and more efficient targeting.

The report notes that the impact of social protection programs remains constrained by the low level of benefits, although Tekavoul is showing encouraging results in terms of reducing poverty and inequality. It is therefore essential to consider a gradual and sustainable increase in benefit amounts, along with continuous improvements in targeting.

Key recommendations include regularly updating the social registry, adjusting food subsidies to better reflect households' real needs, strengthening institutional coordination through a national platform, and expanding economic inclusion programs.

Finally, developing exit pathways for beneficiaries should help build a more adaptive and resilient social safety net system in the face of economic and climate-related shocks.