Mauritania: Public debt estimated at nearly $4.4 billion

Mauritania’s public debt stood at 177.8 billion new ouguiyas (approximately $4.4 billion) as of mid-2024, according to the latest report from the Public Debt Directorate. This amount represents 40.3% of the country’s Gross Domestic Product (GDP) as of June 30, 2024, underscoring the scale of Mauritania’s fiscal obligations relative to its economic output.

The report highlights that external debt constitutes the overwhelming majority, accounting for 84.05% of the total public debt. This external liability is primarily denominated in US dollars, reflecting Mauritania’s reliance on international loans and funding sources to support development projects and balance fiscal deficits.

Domestic debt makes up the remainder of the public debt portfolio. It is primarily divided into two key components: government-issued treasury bills, designed to address budgetary shortfalls, which amount to approximately $338 million; and a debt owed by the Central Bank of Mauritania to the State, valued at approximately $403 million.

The growing reliance on external financing highlights both opportunities and challenges for Mauritania. While external loans have facilitated infrastructure development and economic initiatives, they also expose the country to currency exchange risks and the burden of repayment in foreign currency. Meanwhile, domestic debt instruments, such as treasury bills, serve as short-term solutions to meet fiscal gaps but add pressure on national financial resources.

The Ministry emphasized the need for a balanced debt management strategy to ensure sustainability. Efforts to strengthen domestic revenue collection, diversify the economy, and attract foreign investment are seen as critical steps to reduce dependency on external borrowing and mitigate associated risks.