Report No. 53241-MR
Public Disclosure Authorized
Mauritania: Restarting the Reform Program
Sector Policy Notes
May 2010 Public Disclosure Authorized
AFTP4 Africa Region
Public Disclosure Authorized
Public Disclosure Authorized
World Bank Report EXCHANGE RATES
(as of April 16, 2010) United States Dollar = Mauritanian Ouguiya USD 1 = MRO 261
FINANCIAL YEAR
January 1–December 31
TABLES OF ABBREVIATIONS AND ACRONYMS
AAAID Arab Authority Cooperation Accord for Agricultural Investment and Development (Accord de Coopération avec l’Autorité Arabe pour les Investissements et le Développement Agricoles) ADER Rural Electrification Development Agency (Agence pour le Développement de l'Electrification Rurale) AEP Agricultural Economics Program AFD French Development Agency (Agence Française de Développement) AfDB African Development Bank AFRITAC African Regional Technical Assistance Center AIDS Auto-immune Deficiency Syndrome AMEXTIPE Mauritanian Agency for the Implementation of Employment-related Public Works (Agence Mauritanienne d'Exécution des Travaux d'Intérêt Public pour l'Emploi) ANAPEJ National Agency for the Promotion of Youth Employment (Agence Nationale de Promotion d’Emploi des Jeunes) ANEPA National Safe Drinking Water and Sanitation Agency (Agence Nationale d’Eau Potable et d’Assainissement) AOP Annual Operational Plan APAUS Agency for the Promotion of Universal Access to Basic Services (Agence pour la Promotion de l’Accès Universel aux Services) ARE Economic Regulation Authority (Agence de Régulation Economique) ATPC African Trade Policy Center BAC-T Technical Baccalauréat (Baccalauréat Technique) BCM Central Bank of Mauritania (Banque Centrale de Mauritanie) BEP Professional Studies Diploma (Brevet d'Etudes Professionnelles) BNT National Transportation Unit (Bureau National de Transport) BP Budget Program BT Technical Diploma (Brevet de Technicien) BTS Advanced Technical Diploma (Brevet de Technicien Supérieur) CAMEC Medication, Medical Equipment, and Medical Consumables Central Purchasing Unit (Centrale d'Achat des Médicaments, du Matériel, et du Consommable Médical) CAP Professional Aptitude Certificate (Certificat d'Aptitudes Professionelles) CBA Competence-based Approach CBMT Medium-term Budgetary Framework (Cadre Budgétaire à Moyen Terme) CCEG Conference of Heads of States and Governments of OMVS Countries (Conférence des Chefs d’État et des Gouvernements de l’OMVS) CCI Chamber of Commerce and Industry CCM Central Commission for Markets (Commission Centrale des Marchés) CDI Tax Office (Centre des Impôts)
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CDMF Common Data Management Facility CDMT Medium Term Expenditure Framework (Cadre de Dépenses à Moyen Terme) CDSS Social and Healthcare Development Council (Conseil de Développement Socio-sanitaire) CE Spanish Development Aid (Cooperación Española) CEM Country Economic Memorandum CF French Development Aid (Coopération Française) CFPP Professional and Technical Training Center (Centre de Formation Professionelle et Technique) CGA Certified Management Center (Centre de Gestion Agréé) CIB Consolidated Investment Budget CMAP Mauritanian Center for Political Analysis (Centre Mauritanien d'Analyse Politique) CNEITI National Committee for the Extractive Industries Transparency Initiative (Comité National EITI) CNERV National Center for Livestock Breeding and Veterinary Research (Centre National d'Elevage et de Recherches Vétérinaires) CNME National Multisector Energy Committee (Comité National Multisectoriel Énergie) CNRADA National Center for Agronomic Research and Agricultural Development (Centre National de Recherches Agronomiques et de Développement) CNRE National Center for Water Resources (Centre National des Ressources en Eau) CNSS National Social Security Fund (Caisse Nationale de Sécurité Sociale) CPI Investment Promotion Agency (Commissariat à la Promotion des Investissements) CPN Community Postnatal Nursing CPP Petroleum Allocation Contract (Contrat de Partage Pétrolier) CRAER Center for Applied Research on Renewable Energy (Centre de Recherche Appliquée aux Energies Renouvelables) CSA Food Security Commission (Commissariat pour la Sécurité Alimentaire) CSET Advanced Technical Training Center (Centre Supérieur de l'Enseignement Technique) CSLP Strategic Framework for the Fight against Poverty (Cadre Stratégique de la Lutte contre la Pauvreté) CSM Market Monitoring Committee (Comité de Surveillance du Marché) CVP Comprehensive Vaccination Program DA Directorate for Sanitation (Direction de l'Assainissement) DAF Directorate for Administration and Finance (Direction de l'Administration et des Finances) DAO Bidding Document (Dossier d'Appel d'Offre) DAPBI Annual Budget Programming and Integration Document (Document Annuel de Programmation Budgétaire Intégrée) DCPCRF Directorate for Competition, Consumer Protection, and the Fight against Fraud (Direction de la Concurrence, de la Protection des Consommateurs, et de la Répression des Fraudes) DDE Directorate for External Debt (Direction de la Dette Extérieure) DDEE Water and Electricity Development Policy Statement (Déclaration de Politique pour le Développement de l’Eau et de l’Electricité) DeMPA Debt Management Performance Assessment DGD Central Customs Directorate (Direction Générale des Douanes) DGE Directorate for Large Enterprises (Direction des Grandes Entreprises) DGI General Directorate for Taxes (Direction Générale des Impôts) DGM General Directorate for Markets (Direction Générale des Marchés) DGPIP General Directorate for the Promotion of Private Investment (Délégation Générale à la Promotion des Investissements Privés) DGTCP General Directorate for the Treasury and Public Accounting (Direction Générale du
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Trésor et de la Comptabilité Publique) DH Directorate for Hydraulics (Direction de l'Hydraulique) DHB Directorate for Hydrology and Dams (Direction de l’Hydrologie et des Barrages) DMDR Rural Development Model Diversification (Diversification des Modèles de Développement Rural) DME Directorate for Medium-sized Enterprises (Direction des Moyennes Entreprises) DMM Directorate for Merchant Marine (Direction de la Marine Marchande) DOB Budget Orientation Debate (Débat d'Orientation Budgétaire) DPAE Directorate for Forecasting and Economic Analysis (Direction de la Prévision et de l'Analyse Economique) DPCSE Directorate for Policy Setting, Cooperation, and Monitoring and Evaluation (Direction des Politiques, de la Cooperation, et du Suivi et Evaluation) DPM Directorate for the Policing of Mining (Direction de la Police Minière) DPS Sector Policy Declaration (Déclaration de Politique Sectorielle) DRI Request for Immediate Repayment (Demande de Règlement Immédiat) DRS Regional Directorate for Health (Direction Régionale de la Santé) DSA Social Dimension of Adjustement (Dimension Sociale de l'Ajustement) DSPCM Directorate for Fisheries Monitoring and Maritime Control (Délégation à la Surveillance des Pêches et au Contrôle en Mer) EDSM Enhanced Data Support Methodology EEA Exclusive Exploration Authorization EEL Exclusive Exploration Permit EEZ Exclusive Economic Zone EFA Education for All EFRP Economic and Financial Recovery Program EIE Environmental Impact Evaluation EITI Extractive Industries Transparency Initiative ENA National School of Administration (Ecole Nationale d'Administration) ENFVA National Institute for Agricultural Training and Dissemination (École Nationale de Formation et de Vulgarisation Agricoles) ENI Primary Teacher Training Institute (Ecole Normale d'Instituteurs) ENR Energy and Natural Resources ENS Advanced Primary Teacher Training Institute (Ecole Normale Supérieure) EPA Public Administration Entity (Etablissement Public Administratif) EPBR Port of Baie du Repos (Etablissement Portuaire de la Baie du Repos) EU European Union EUR Euro FAO Food and Agriculture Organization FCI Financial Commodity Investments FDI Foreign Direct Investment FNARS National Scientific Research Support Fund (Fonds National d’Appui à la Recherche Scientifique) FNRH National Oil Revenues Fund (Fonds National des Revenus des Hydrocarbures) FNP National Fishing Federation (Fédération Nationale de Pêche) FNT National Tourism Federation (Fédération Nationale du Tourisme) FP Civil Service (Fonction Publique) FR Road Fund (Fonds Routier) FSAP Financial Sector Assessment Project GDP Gross Development Product GIE Economic Interest Group (Groupement d'Intérêt Economique) GIS Geographic Information System
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GMM Mauritanian Granite and Marble (Granit et Marbres de Mauritanie) GTZ German Technical Cooperation Organization (Deutsche Gesellschaft für Technische Zusammenarbeit) HIMO Workforce High Intensity (Haute Intensité de Main d'Oeuvre) HIV Human Immuni-deficiency Virus HLCS Longitudinal Survey of Living Conditions IAEA International Atomic Energy Agency ICA Investment Climate Assessment ICI Industrial and Commercial Income ICT Information and Communications Technology IDP Infrastructure Development Plan IGE General State Inspectorate (Inspectorat Général de l'Etat) IGF General Financial Inspectorate (Inspectorat Général des Finances) ILO International Labor Organization IMF International Monetary Fund IMROP Mauritanian Institute for Oceanographic Research and Fisheries (Institut Mauritanien de Recherches Océanographiques et des Pêches) IMS Information Management System IRENA International Renewable Energy Agency IsDB Islamic Development Bank ISERI Institute for Advanced Islamic Studies and Research (Institut Supérieur d'Etudes et de Recherches Islamiques) ISET Institute for Advanced Technological Studies (Institut Supérieur d'Enseignement Technologique) LAOP Agro-pastoral Orientation Bill (Loi d’Orientation Agropastorale) LDF Finance Bill (Loi de Finances) LFTP Technical and Professional Training High School (Lycée de Formation Technique et Professionnelle) LIW Labor Intensive Work LMD Licence-Masters-Doctorate MAED Ministry of Public Finances and Development (Ministère des Finances Publiques et du Développement) MATEMA Mauritanian Maritime Technical Assistance Organization (Compagnie Mauritanienne d'Assistance Technique Maritime) MCM Mauritanian Copper Mines (Mines de Cuivre de Mauritanie) MDR Ministry of Rural Development (Ministère du Développement Rural) MEP Ministry of Energy and Oil (Ministère de l'Energie et du Pétrole) MF Ministry of Finance (Ministère des Finances) MFA Ministerial Financial Audit MFP Multifunctional Platform MHA Ministry of Hydraulics and Sanitation (Ministère de l’Hydraulique et de l’Assainissement) MICO Oasis Investment and Credit Union (Mutuelle d’Investissement et de Crédit Oasien) MICS Multiple Indicator Cluster Survey MOD Delegated Works Contractor (Maîtrise d’Ouvrage Déléguée) MPEM Ministry of Fisheries and the Maritime Economy (Ministère des Pêches et de l'Economie Maritime) MRO Mauritanian Ouguiya NGO Non-governmental Organization NHP National Health Policy OMRG Mauritanian Geological Research Office (Organisation Mauritanienne pour la Recherche
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Géologique) OMVS Senegal River Development Agency (Organisation pour la Mise en Valeur du Fleuve Sénégal) ONA National Sanitation Agency (Office National de l’Assainissement) ONE National Electricity Agency (Office National de l'Electricité) ONISPA National Health Monitoring Agency for Fisheries Products and Aquaculture (Office National d'Inspection Sanitaire des Produits de la Pêche et de l'Aquaculture) ONMT National Occupational Health Agency (Office National de la Médecine du Travail) ONS National Statistical Office (Office National de la Statistique) PACAE Economic Activity Climate Improvement Project (Projet d'Amélioration du Climat de l'Activité Economique) PAEPA Drinking Water Supply and Sanitation Project (Projet d'Approvisionnement en Eau Potable et d'Assainissement) PADEL Local Decentralization and Development Support Project (Projet d’Appui à la Décentralisation et au Développement Local) PADPAC Management and Development Plan for Artisanal and Coastal Fishing (Plan d'Aménagement et de Développement des Pêches Artisanales et Côtières) PAM Policy Analysis Matrix PAN Autonomous Port of Nouadhibou (Port Autonome de Nouadhibou) PANPA Autonomous Port of Nouakchott (Port Autonome de Nouakchott – Port de l'Amitié) PASA Agricultural Sector Adjustment Program (Programme d’Ajustement du Secteur Agricole) PCR Economic Consolidation and Growth Program (Programme de Consolidation et de Relance) PCS Permissible Catch Size PDIAIM Integrated Program for the Development of Irrigated Agriculture in Mauritania (Programme de Développement Intégré de l’Agriculture Irriguée en Mauritanie) PDM Development and Modernization Program (Programme de Développement et de Modernisation) PDU Urban Development Program (Programme de Développement Urbain) PED Potentially Epidemial Disease PEFA Public Expenditure and Financial Assessment PGT Treasury General Disbursement (Paierie Générale du Trésor) PNAR National Program for Rural Sanitation (Programme National d'Assainissement Rural) PNDSE National Program for the Development of the Education Sector (Programme National de Développement du Secteur Educatif) PNSAM National Food Security Policy (Politique Nationale de Sécurité Alimentaire) PNSR National Program for Reproductive Health (Programme National pour la Santé Reproductive) PPIAF Public-private Infrastructure Advisory Facility PPP Public-private Partnership PRECASP Public Sector Capacity Reinforcement Project (Projet pour le Renforcement des Capacités du Secteur Public) PRISM Mining Sector Institutional Strengthening Project (Projet de Renforcement Institutionnel du Secteur Minier) PRSP Poverty Reduction Strategy Paper PST Transportation Sector Plan (Plan Sectoriel de Transport) RACHAD Expenditure Chain Automated System (Réseau Automatisé de la Chaîne des Dépenses) RESEN State Report on the National Educational System (Rapport d'Etat sur le Système Educatif National) RGPH General Population and Habitat Census (Recensement Général de la Population et de l'Habitat)
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SAE Environmental Affairs Department (Service des Affaires Environnementales) SAMIA Arab Mining and Metallurgy Company (Société Arabe des Mines et des Industries Metallurgies) SAMMA Mauritanian Unloading and Handling Corporation (Société d’Anconage et de Manutention en Mauritanie) SDSR Rural Development Strategy (Stratégie de Développement du Secteur Rural) SIGE Environmental and Geological Information Service (Service d'Information Géologique et Environnementale) SIGM Mining Information and Management Service (Service d'Information et de Gestion Minière) SMCP Mauritanian Fishing Commercialization Organization (Société Mauritanienne de Commercialisation de la Pêche) SME Small and Medium Enterprise SMH Mauritanian Hydrocarbons Agency (Société Mauritanienne des Hydrocarbures) SNAAT National Agriculture Planning and Works Agency (Société Nationale d'Aménagement Agricole et des Travaux) SNDE National Water Utility (Société Nationale de l'Eau) SNFP National Drilling Company (Société nationale de forages et de puits) SNIM National Industrial and Mining Company (Société Nationale des Industries Minières) SNIS National Health Information System (Système National d’Information Sanitaire) SOMELEC Mauritanian Electricity Company (Société Mauritanienne d'Electricité) SOMIR Mauritanian Refining Company (Société Mauritanienne des Industries de Raffinage) SONADER National Rural Development Agency (Société Nationale pour le Développement Rural) SPO Socio-professional Organization SRH Regional Water Services (Services Régionaux de l’Hydraulique) STD Sexually Transmitted Disease TFP Technical and Financial Partners TIQ Transferrable Individual Quota TML Tasiast Mauritanie Limited TNS National Enrollment Rate (Taux National de Scolarisation) TOR Terms of Reference TPT Technical and Professional Training (Formation Technique et Professionelle) UAE United Arab Emirates UBS Union Bank of Switzerland UNCACEM National Agricultural Credit Union Network (Union Nationale des Coopératives Agricoles de Crédit et d'Epargne de Mauritanie) UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Program UNESCO United Nations Educational, Scientific, and Cultural Organization UNFPA United Nations Population Fund UNICEF United Nations Children's Fund UNIDO United Nations Industrial Development Organization USD United States Dollar USGS United States Geological Survey WAEMU West African Economic and Monetary Union WFP World Food Program
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Vice-President: Obiageli K. Ezekwesili (AFRVP) Country Director: Madani Tall (AFCF1) Sector Director: Sudhir Shetty (AFTPM) Interim Sector Manager: Philip English (AFTP4) Team Leaders: Manuela Francisco and Philip English (AFTP4)
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TABLE OF CONTENTS
PREFACE ...... XI
EXECUTIVE SUMMARY: ...... XII
PART I: STRENGTHENING PUBLIC INSTITUTIONS ...... 1
1. PUBLIC FINANCE MANAGEMENT ...... 1
A. CONTEXT ...... 1 B. MAJOR CONSTRAINTS ...... 3 C. RECOMMENDATIONS ...... 8 D. CHALLENGES TO IMPLEMENTATION ...... 11 E. ANALYTICAL GAPS ...... 12 2. CIVIL SERVICE ...... 13
A. CONTEXT ...... 13 B. MAJOR CONSTRAINTS ...... 13 C. RECOMMENDATIONS ...... 15 D. CHALLENGES TO IMPLEMENTATION ...... 16 E. ANALYTICAL GAPS ...... 16 PART II: IMPROVING THE FACTORS OF PRODUCTION: HUMAN CAPITAL ...... 18
3. EDUCATION...... 18
A. CONTEXT ...... 18 B. MAIN CONSTRAINTS ...... 20 C. RECOMMENDATIONS ...... 22 D. CHALLENGES TO IMPLEMENTATION ...... 25 E. ANALYTICAL GAPS ...... 25 2. EMPLOYMENT ...... 26
A. CONTEXT ...... 26 B. MAJOR CONSTRAINTS ...... 27 C. RECOMMENDATIONS ...... 29 D. CHALLENGES TO IMPLEMENTATION ...... 30 E. ANALYTICAL GAPS ...... 30 5. PROFESSIONAL TRAINING ...... 31
A. CONTEXT ...... 31 B. MAJOR CONSTRAINTS ...... 31 C. RECOMMENDATIONS ...... 33 F. CHALLENGES TO IMPLEMENTATION ...... 35 G. ANALYTICAL GAPS ...... 35 6. LABOR REGULATIONS AND SOCIAL WELFARE ...... 37
A. CONTEXT ...... 37 B. MAJOR CONSTRAINTS ...... 37 C. RECOMMENDATIONS ...... 38 D. CHALLENGES TO IMPLEMENTATION ...... 39
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7. HEALTH ...... 41
A. OVERVIEW ...... 41 B. MAJOR CONSTRAINTS ...... 44 C. RECOMMENDATIONS ...... 47 D. CHALLENGES TO IMPLEMENTATION ...... 50 E. ANALYTICAL GAPS ...... 50 8. WATER AND SANITATION ...... 51
A. OVERVIEW ...... 51 B. CHALLENGES TO IMPLEMENTATION ...... 62 C. RECOMMENDATIONS ...... 63 D. ANALYTICAL GAPS ...... 64 PART III: IMPROVING THE FACTORS OF PRODUCTION: INFRASTRUCTURE ...... 65
9. ELECTRICITY ...... 65
A. CONTEXT ...... 65 B. MAJOR CONSTRAINTS ...... 66 C. RECOMMENDATIONS ...... 69 D. CHALLENGES TO IMPLEMENTATION ...... 72 E. ANALYTICAL GAPS ...... 72 10. ROAD AND MARITIME TRANSPORTATION ...... 75
A. CONTEXT ...... 75 B. MAJOR CONSTRAINTS ...... 76 C. RECOMMENDATIONS ...... 78 D. CHALLENGES TO IMPLEMENTATION ...... 79 E. ANALYTICAL GAPS ...... 80 PART IV: DEVELOPMENT OF THE PRIVATE SECTOR AND GROWTH SECTORS ...... 81
11. THE INVESTMENT CLIMATE ...... 81
A. CONTEXT ...... 81 B. MAJOR CONSTRAINTS ...... 82 C. RECOMMENDATIONS ...... 88 D. CHALLENGES TO IMPLEMENTATION ...... 91 E. ANALYTICAL GAPS ...... 91 12. RURAL DEVELOPMENT ...... 93
A. CONTEXT ...... 93 B. MAJOR CONSTRAINTS ...... 95 C. RECOMMENDATIONS ...... 100 D. CHALLENGES TO IMPLEMENTATION ...... 103 E. ANALYTICAL GAPS ...... 105 13. FISHERIES ...... 107
A. CONTEXT ...... 107 B. MAJOR CONSTRAINTS ...... 108 C. RECOMMENDATIONS ...... 112 D. CHALLENGES TO IMPLEMENTATION ...... 112 E. ANALYTICAL GAPS ...... 113 14. THE MINING SECTOR ...... 114
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A. CONTEXT ...... 114 B. MAJOR CONSTRAINTS ...... 117 C. RECOMMENDATIONS ...... 118 D. CHALLENGES TO IMPLEMENTATION ...... 119 E. ANALYTICAL GAPS ...... 120 15. OIL ...... 121
A. OVERVIEW ...... 121 B. MAJOR CONSTRAINTS ...... 123 C. RECOMMENDATIONS ...... 124 D. CHALLENGES TO IMPLEMENTATION ...... 125 E. ANALYTICAL GAPS ...... 125
Tables
TABLE 2.1: COMPARISON BETWEEN PAYROLL AND PERSONNEL FILES ...... 14
TABLE 7.1: HEALTH AND SOCIOECONOMIC INDICATORS ...... 42
Annexes
ANNEX 1: MAURITANIAN FINANCIAL SECTOR ASSESSMENT PROGRAM ...... 126
ANNEX 2: FISHERIES – SUMMARY OF KEY ACTIONS PROPOSED OVER THE NEXT FIVE YEARS ...... 129
ANNEX 3: 2010-2012 THREE-YEAR ACTION PLAN FOR THE MINING SECTOR ...... 131
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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PREFACE
World Bank support to the preparation of these sector policy notes is part of the recommitment process that followed the July 2009 presidential election. The Mauritanian authorities' appreciation of the the World Bank's proposal led to its adoption and extension to other sectors. Primarily as a result of ties that developed between the various technical committees during the process that began under United Nations supervision, other technical and financial partners quickly decided to participate in it. The number of notes thus increased from seven to 15, including some for sectors in which the World Bank lacks extensive experience in Mauritania.
The preparation process for these policy notes has evolved over time. Drafts prepared by the World Bank were taken up by the Mauritanian authorities and distributed to the ministries concerned. While in some cases the substance of the sector notes was retained (with modifications), in others the ministries concerned chose to redraft the documents. In some cases, another partner conducted the drafting and writing process, particularly in the water and sanitation sectors, to which the French Development Agency (AFD) contributed. An iterative process has now been launched to find a consensus between the Mauritanian authorities, the World Bank, and the country's technical and financial partners.
This collaboration has resulted in a more extensive and more appropriate report being made available to the authorities. Prior to its being finalized and validated, it became apparent that the policies of the Mauritanian government were already being influenced by this document. Obviously, we are delighted. Furthermore, the recommendations contained in this report are more numerous and less focused than initially planned, with only a few important issues not being fully addressed. While the recommendations contained in the report form an excellent basis for dialogue between the Mauritanian authorities and the country's partners, they will no doubt be refined in the course of a validation workshop, the preparation of the new poverty reduction strategy, and the subsequent process of program and project definition.
We would like to thank the Minister for Economic Affairs and Development, Mr. Sidi Ould Tah and his Director of Policies and Strategies, Mr. Mohamed Ould Djié for the orientations they gave to this reflection process and for the quality of their collaboration with the World Bank. We would also like to thank all the members of the Mauritanian public administration services who contributed to writing these notes for the quality of their work and for their commitment. Support from development partners also made a significant contribution to the success of the process. These include the UNDP and other United Nations agencies based in Nouakchott, the European Commission, the IMF, and the French, Italian, German, and Spanish development aid agencies. Finally, the authors would also like to thank all their World Bank colleagues in Mauritania for their tremendous teamwork.
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EXECUTIVE SUMMARY:
Principal challenges to economic growth in Mauritania
1. Even though Mauritania’s real GDP recorded an average growth rate of 4% between 2005 and 2009, the country’s economic growth remains unstable and vulnerable to external shocks. At the same time, the distribution of profits through benefit sharing continues to be very unequal. Growth is dependent on a few raw materials (oil, ore, and fish) and development assistance, with very limited processing activity. Due in part to the availability of income or resource rent generated by the exploitation of these raw materials, other sectors have been neglected, especially agriculture, cattle farming, and the urban private sector in general. The impact of this resource rent on the exchange rate and the high cost of living also contributes to making other sectors uncompetitive. Yet, these are the sectors in which most of the population is trying to make a living. The country’s development is therefore distorted, with persistent poverty, even though poverty has been reduced from 47% in 2004 to 42% in 2008, representing an annual fall of about 1.2 percentage points.
2. Since Mauritania’s independence in November 28, 1960, it has experienced several periods of political and institutional instability that have strongly hampered its economic and social development. The country has had no fewer than seven military coups since the fall of the first civilian Mauritanian President in July 1978. Between 2005 and 2007, an initial transition period put an end to the 21-year rule of Maaouya Ould Sid Ahmed Taya and opened the door to legislative and presidential elections, which resulted in Sidi Ould Cheikh Abdallahi becoming the country's President. After a year and a half in power, he was ousted in August 2008 in a military coup. The High Council of State then appointed General Mohamed Ould Abdel Aziz as Head of State. Following a one-year-long political crisis, General Mohamed Ould Abdel Aziz won the July 18, 2009 presidential election, which followed consensus being reached among the divergent political opinions that had agreed to sign the Dakar agreement.
3. The management of a rent-based economy creates huge challenges. The public finances must be managed efficiently to promote diversification, share wealth more equitably, and fight transparently against the corruption that often accompanies resource rent. In addition, resources must be used to stimulate the rural sector, where the majority of poor people operate, and invested in human resources in order to improve their competitiveness. At the same time, the business climate must be sanitized and infrastructure improved to promote investment and thus create employment. The strengthening of institutions thus becomes critical, especially in order to control abuse.
4. The impact of the recent economic and financial crisis on global demand and particularly on the price of iron and copper in addition to the reduction in oil production highlight the urgent need to identify new income generating sectors other than the traditional exploitation of natural resources. The direct impacts of the global crisis have been limited in Mauritania because the country is barely integrated in the international financial system. However, the low price of raw materials, political instability, the reduction in foreign
xii aid, and the fall in oil production1 were contributing factors in the decline in real GDP growth in 2009 (-1%, compared with 3.7% in 2008, 1% in 2007, and 11.4% in 2006). At the same time, prospects for income from oil are not encouraging. It is anticipated that the export of gold will overtake that of oil until 2012 (with an average share of GDP of 7.2% and 5.2%, respectively, for the period 2010-2012). New mining projects2 could help strengthen the economy but these would not be adequate on their own. The diversification of the economy should reduce vulnerability to outside shocks, create a favorable environment for growth, reduce the impact of price volatility for oil and iron ore, and create employment.
5. In general, the economic crisis and political instability have delayed critical reforms crucial to the development of a strong productive environment. In particular, the implementation of economic reforms in the financial sector and the business environment as well as the strengthening of governance have been delayed. This has slowed improvements in the competitiveness of the private sector and strengthened over-dependence on income from the exploitation of natural resources. With a very small and fragmented market and a limited manufacturing sector, the domination of a few large business groups has slowed the emergence of small and medium enterprises (SMEs). This is why trade, transport, communications, and other services are the only sectors – excluding mining and oil – that have contributed to growth over the past twenty years (with an average of 10.7%, 4.9%, and 11% of GDP, respectively, over the period 1991-2008). Meanwhile, agriculture (excluding cattle farming) has accounted for only a modest part of GDP (3.7% on average for the period 1991-2008). Despite its significant contribution to growth in the early 1990s, industrial fishing has fallen back because of the age of the national fleet and increased competition from foreign fisheries. Meanwhile, manufacturing has not yet managed to position itself as an engine of growth.
Options for Policies Aimed at Accelerating Economic Diversity
6. After the presidential elections of July 2009, the government of Mauritania launched a program of reforms aimed at accelerating economic growth by improving the institutional framework to reduce the constraints on private sector development. The viability of growth in Mauritania remains strongly tied to the country’s competitiveness and to the diversification of its industrial fabric, particularly through value-added activities. Even though some progress has been achieved in social sectors such as education and health, only an ambitious program of reforms aimed at improving public institutions, the yield of production factors including human and financial capital and infrastructure, the investment climate, and support programs for future development sectors will speed up economic growth, promote employment, and improve social indicators.
7. With this in mind, the Government has prepared notes on sector policy in order to promote a consensus over the priority actions to be undertaken in 15 critical areas. Developed with the support of the World Bank and other technical and financial partners, these
1 Oil reserves have been estimated at 310 million barrels. It is anticipated that oil production will stabilize at about 75,000 barrels per day (b/d) and cease after 15 years. Unforeseen geological problems have reduced the volume extracted from the oldest deposit to only 36,000 b/d in 2006 and to 10,700 b/d in 2009, far less than was previously predicted. 2 For example, the Guelb II project aims to increase iron production to 11 million tons in 2009 and to 13.5 million tons in 2013. The financing for this project is now in place.
xiii notes set out the state of affairs in each area, identify the main challenges and constraints, determine objectives and strategic directions, and identify short- and medium-term reforms. This process will facilitate the preparation of a new Strategic Framework for Fighting Poverty (SFFP) for the period 2011-2015 and the World Bank’s future Strategic Aid to Mauritania. The priority reforms identified in these notes will also be part of the dialogue between the Mauritanian Government and the World Bank, the IMF, and the country's other technical and financial partners.
Crosscutting Issues
An examination of sector policy notes reveals a number of crosscutting issues that remain a hindrance to many emerging sectors.
8. Progress is often not about identifying but rather about implementing what needs to be done. Many recommendations in the sector notes in effect reflect proposals that have been made for some time. In many cases, even though significant financial and technical assistance (in the area of privatization, for example) was provided, project implementation was weak and did not lead to expected results. This reflects the difficulties associated with current economic policies, on the basis of which the unbridled pursuit of income-maximizing activities coupled with the weight of economic interest groups constitutes a hindrance to deployed efforts. Future efforts toward reform should therefore attend to the current economic policy context and concentrate on sectors that offer reasonable chances that projects will be successfully implemented by taking into account the interests of all and by building partnerships suitable for these reforms.
9. In addition to economic policy constraints, many sector policy notes highlight the lack of capacity as a severe constraint on reform implementation. In the policy note on the public sector, for example, there are significant recommendations for capacity building in the public service. Generally, however, it is important to focus future capacity building and technical assistance efforts on areas where current economic policies are conducive to reform.
10. Given that the public sector is lacking in financial and human resources, it is important that its scope of activities be reviewed and that areas in which it can play a role be identified. For example, although the public sector currently manages commercial activities, the private sector may be more efficient in playing that role. Similarly, the private sector could be involved in providing infrastructure services, particularly in the energy sector. In many countries, the private sector is already playing a crucial role in providing services in the education, health, and water sectors. This ensures that the public sector intervenes only where its role is clearly justified. Among the advantages offered by such an approach are improvements in public service delivery, more room to maneuver in the financing of basic government activities, and a positive impact on the development of Mauritania’s highly dynamic private sector.
11. Poor decentralization of public services constitutes a significant obstacle to their effective operation. This is the case in social sectors as well as in infrastructure and local investment. Bringing services closer to those concerned would allow for greater public service accountability as well as increased adaptation. Meanwhile, it is obvious that any successful decentralization process requires deep political commitment. Similarly, significant efforts will
xiv need to be made to ensure that adequate capacity and suitable accountability mechanisms are set up locally.
12. As regards infrastructure, the lack of adequate financing for maintenance is a serious handicap. This results in the rapid deterioration of equipment and increased costs for the rehabilitation of infrastructure. In this respect priority should be given to maintenance costs during budget planning and implementation by paying sufficient attention to the recurring costs related to investments.
13. The obsolete nature of the legal and regulatory framework in Mauritania is a catalyst for informal practices, corruption, and inefficiency. Better governance therefore primarily depends on a fundamental revision of this framework.
14. Finally, many sector policy notes emphasize the need to give special attention to issues relating gender and young people. As in many other countries in the region, Mauritania’s long-term development and continued social stability clearly depend on education and job creation for young people. Strengthening Public Institutions
15. Improving public institutions requires better management of public finances and a modernized and better organized civil service. In particular, the management of public finances currently suffers from specific malfunctions requiring improvement in budget preparation and execution, human resources management, and monitoring and auditing. Budget preparation is carried out on a short term basis without a multi-annual approach and no objectives assigned to specific government programs. Despite some efforts being made to implement a medium term budget framework for the period 2008-2010, this was not carried out for 2008-2009 because of a lack of capacity in the technical ministries involved. The redrafting of legislative and regulatory texts, the training of personnel in institutions responsible for budget preparation, and the improvement of human resources remain essential. Budget execution suffers from too many derogations, which should remain strictly limited, and from inadequate monitoring at the decentralized level. The devolution of purchasing procedures and financial control should be accompanied by the strengthening of audits and inspections, including the publication of reports. Procurement procedures should be reviewed in depth to increase transparency and insure separation between bodies responsible for tendering and those responsible for monitoring and regulation. Furthermore, good governance also requires an Audit Office staffed with specialized personnel to ensure the regular publication of reports.
16. The civil service currently suffers from organizational dysfunction. Staffing levels are quite high. Various problems weigh on personnel management, recruitment, staff remuneration, training, career management, and working conditions. Despite efforts made over recent years, the lack of a management planning policy for staff entails a lack of control over staff and future requirements. Thus, while Mauritania has about the same number of civil servants as Benin, the population of the latter is more than twice that of the former. The total payroll/GDP ratio also confirms the excessive number of civil servants in Mauritania. Human resources management, in particular, suffers from problems linked to the lack of knowledge on the part of the public service regarding legislation and procedures governing State personnel, mediocre staff management at the ministerial level, the lack of monitoring of attendance at work,
xv instability in personnel responsible for the management of human resources, and low salaries. Other dysfunctions are linked to the general status of the civil service, whose function is compromised by informal procedures and unclear responsibilities. Corruption in the civil service is also an obstacle to fair access to public services. Priority actions should lie principally in: i) completing a census of staff; ii) implementing a more flexible system for managing human resources based on management focused on results; iii) promoting good governance and fighting corruption; iv) revitalizing the National School of Public Administration; v) adapting training programs to the needs of administrative services, and vi) management planning for staff.
Improving Production Factors: Human Capital and Infrastructure
Human Capital
17. Overall, the strengthening of human capital is fundamental to the sustainability of a qualified workforce. However, the Mauritanian educational system continues to perform poorly in terms of retention, quality, and efficiency. The situation arises from a series of internal structural problems at the level of pre-school, basic education, general secondary education, and technical and vocational training as well as from external factors. Despite an improvement in quantitative indicators such as the enrollment rate in schools over the past decade, qualitative indicators for education remain poor. The student retention rate and the knowledge acquisition rate in primary education are both low. Teacher training is inadequate, teacher motivation is poor, and the distribution of teachers across regions is uneven. In addition, there is almost no bilingual staff, and infrastructure is inadequate. There is also a lack of teachers capable of meeting requirements at the basic, secondary, and higher education levels. Accordingly, to remedy these constraints, it is necessary to target the strengthening of human resources (quality and motivation of teachers, quality of training, strict compliance with school hours) and infrastructure (refurbishment of schools, completion of unfinished schools, provision of teaching materials). However, training must also be better adapted to needs. At the pre-school level and in basic education, improving access to education and the quality of that education as well as the restructuring of the provision of education should also be prioritized. Finally, the restructuring of secondary education should diversify its syllabus and strengthen the teaching of science.
18. Employment and vocational training are closely linked in that recent economic growth has not generated enough jobs while the inadequacy of professional training relative to the requirements of the national market has increased the number of unemployed. The employment situation is very worrying, with a high unemployment rate (31.2%)3 that particularly affects women and the young, as shown by the 2008 survey on household standard of living (EPCV). Since the capacity of the Mauritanian economy to create jobs is not sufficient to absorb increased demand, a significant portion of the population works in the notoriously precarious informal sector. In addition, the level of training and professional qualification of the active population remains low. In general, public policy has long ignored employment as a priority development objective, which explains, among other things, the absence of structured public dialogue, the low level of financing for employment programs, and the lack of an information system on employment. The main strands of a policy promoting
3 Slightly lower than estimated in 2004 (32.5%).
xvi employment should consist of: i) the implementation of public programs for creating employment; ii) the revitalization of assistance for job seekers and for placing job seekers in employment; and iii) the promotion of SMEs through microfinance.
19. At the technical and vocational training level, the challenges are enormous especially in view of the number of young people who leave the education system every year and could be candidates for vocational training. Responding to this situation requires: i) improving careers advice, better governance of vocational training, and strengthening management capabilities to achieve results; ii) mobilizing financing resources; iii) improving the quality of training including creating a structure for training trainers; and iv) extending and diversifying training opportunities by creating new institutions providing short-term training adapted to local realities in unrepresented sectors and in the regions.
20. The employment and social welfare sector is an important element, particularly as regards the definition of objectives assigned to public employment services as well as their expertise and responsibilities in the strengthening of social dialogue and support for reforms in this area. The migration of workers, which is a challenge in Mauritania, has forced the administrative services in charge of employment to acquire expertise in the field of employment law in order to ensure that implementation conforms to international conventions. In addition, priority reforms should target: i) adapting the regulatory framework to the socioeconomic context; ii) the renewal of trade union federations through elections; iii) strengthening public employment services to enable regulations to be applied; iv) updating legislation regulating social security and the National Agency for Occupational Health (Office National de la Médecine du Travail); v) adapting the legal framework of the National Social Security Fund (CNSS) to the country’s socio-economic context by analyzing the potential for extending social cover to workers in the informal sector given that social security cover currently extends to only about 7% of the active population.
21. The quality of human capital is also conditioned by the health of the population. Current trends point to the risk that the Millennium Development Goals on child and maternal mortality will not be reached. Nutritional imbalance also remains worrying, particularly for the mother-child pair. The main problems in the health sector particularly involve the country’s epidemiological profile, the state of the sanitation system, and the environment (hygiene, access to drinking water, sanitation, food security, people’s level of education). Sanitation remains inadequate in some areas and personnel (nurses, midwives, doctors) is often qualitatively and quantitatively inadequate. In addition, some hospitals have become degraded, there is a lack of some types of specialized care as well as poor coordination between the decentralized health centers and regional hospitals, and the use of resources made available to the sector is inefficient. Priority action must target, among other things: i) expanding health provision to give every citizen local access to health and nutrition services; ii) strengthening medical and paramedical staff training; iii) providing medical expertise nationwide; and iv) improving access to medical equipment and financing.
22. The development of the drinking water and sanitation sector is also crucial to human capital development and to the attainment of the Millennium Development Goals. Urban and semi-urban population growth limits progress in extending the coverage rate for
xvii drinking water. The restructuring of this sector carried out between 2001 and 2008 has improved the framework for intervention by creating specialized institutions. The water code has established a framework for a partnership between the State, local communities, and private operators. However, reform implementation remains incomplete either at the legislative level or as regards accompanying measures. Weak civil service capacity remains a major constraint on the sector. The sector strategy priorities outlined in the 2006-2010 Strategic Framework for the Fight against Poverty (CSLP)4 must be strengthened through an annual program of hydraulic infrastructure construction. Information on water resources must be improved, surface water upgraded, sanitation measures in urban and rural areas reactivated, the public-private partnership promoted, and stakeholder capacities strengthened at both central and local levels. Infrastructure
23. To encourage the diversification of its production base, Mauritania must address a lack of capacity in the electricity sector. Demand for electricity has greatly increased, particularly in urban areas, and rural electrification remains limited. The situation in the sector is worrying, given the precarious financial position of the sole operator, SOMELEC, whose accumulated losses exceed its capital and reserves. Furthermore, the Economic Regulation Authority (ARE) does not regulate SOMELEC’s activities, which means that questions concerning incentives, how the operator is remunerated, and how the sector is performing remain unexamined. There is an urgent need for change, particularly in the area of strengthening SOMELEC’s management (collecting bills, fighting fraud, reducing technical loss, and eliminating State-SOMELEC cross-debts), increasing its production capacity, and strengthening rural electrification within the framework of a public-private partnership.
24. Another significant challenge for the country is upgrading transport infrastructure to improve national competitiveness, including opening up agricultural production areas. The main constraints on transport development are linked to the country’s size, the poor absorption capacity of public investment, high transport costs especially for marine freight, an obsolete fleet of road transport vehicles, an inadequately maintained road network, the need to upgrade infrastructure and port and airport equipment, the lack of staff training, difficulty in applying legal and regulatory texts, and the absence of a framework for public-private partnerships. As regards land transport, the road network is poorly developed and improved, unpaved roads are rapidly becoming unusable. It is therefore necessary to strengthen the management of the road fund, implement prioritized programs for road investment that will promote the main axes of regional integration, build local tracks, and support road haulers in modernizing their pool of vehicles. As regards port infrastructure, the two ports, Nouakchott and Nouadhibou, are experiencing severe capacity constraints. Nouakchott's port is in urgent need of an expansion program because it cannot handle a larger volume (two million tons per annum compared to the predicted one million). Its costs are high (twice those of Dakar), as is the waiting time for unloading onto docks. The structures of Nouadhibou's port do not meet security requirements especially for the processing of oil cargoes, and do not allow for the development of fishing to be stimulated. In Nouakchott, a public-private partnership should make possible the construction of a new dock for container ships as well as of new docks for processing bulk cargo. Similarly, Nouadhibou's port needs in-depth restructuring and rehabilitation so that it can better contribute to the development of the fisheries sector and provide for the export of ore.
4 The Mauritanian authorities adopted the CSLP in October 2006.
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25. The development of the water supply and sanitation sector is also a priority for the development of human capital and to attain the Millennium Development Goals. The growth in the urban and semi-urban population has constrained progress in the coverage rate for drinking water. The restructuring of the sector carried out between 2001 and 2008 has improved the framework for intervention by creating specialized institutions. The water code has established a framework for a partnership between the State, local communities, and private operators. However, the implementation of reforms is not yet complete either at the legislative level or in accompanying measures. The weakness of civil service capacity remains a major constraint on the sector. The sector strategy outlined in the 2006-2010 SFFP priorities must be strengthened by an annual program of hydraulic infrastructure construction. Information on water resources must be improved, surface water upgraded, sanitation measures in urban and rural areas reactivated, the public-private partnership promoted, and stakeholder capacities strengthened at both central and local level.
Development of the Private Sector and Sectors with Future Potential
The Investment Climate
26. The investment climate is generally unfavorable to the development of the private sector and therefore requires further sustained reform to stimulate the creation of jobs and the diversification of the productive fabric. Despite reforms in various areas, these have not all produced the results anticipated due to a lack of appropriate accompanying measures. The main barriers5 to the development of the private sector are linked to the under-development of financial markets, limited access to credit especially for SMEs, an overly burdensome tax system, the anticompetitive practices of enterprises, the unreliability of the infrastructure, the cumbersome nature of administrative procedures, customs and foreign trade regulations, the lack of qualified workers, corruption, the poor operation of the legal system, and the lack of public- private consultation and of a framework for a public-private partnership. In this context, intervention should focus on: i) finalizing the Investment Code; ii) assessing the possibility of creating a special economic area; iii) promoting financial intermediation and access to credit; iv) simplifying tax procedures and lightening the tax burden for SMEs; v) promoting a policy of competition; vi) easing procedures for creating and closing businesses and improving information service in customs administration; vii) strengthening the legal system; and viii) reforming the public market system and adopting a strategy for fighting corruption.
Development of Sectors with Future Potential
27. Despite its potential, the rural development sector is experiencing a profound crisis.
5 According to the 2007 Assessment of the Investment Climate (ECI), approximately 45% of businesses believe that the main obstacles to carrying out their activities are the under-development of financial markets, limited access to credit, and the high cost of financing for businesses working in the formal sector. In addition, about 37% of businesses blame taxation and the administration of fiscal policy, while 34% stress that they are negatively affected mainly by the anticompetitive practices of businesses working in the informal sector. Among obstacles to the development of the private sector, mention is also made of poor access to electricity (30%), customs and foreign trade regulations (24%), the lack of qualified workers (22%), corruption (18%), and the unreliability of the infrastructure (16%).
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The policy for the sector is incomplete and its organization is inefficient and marked by improvisation in programming and the implementation of agricultural campaigns. Managers are poorly motivated, the level of poverty of those dependent on agriculture and cattle farming is high, technical capital remains insufficient, and the implementation of land regularization is slow. The production of irrigated agriculture is on the whole inferior to anticipated results, rain- fed agriculture lacks support, and cattle farming suffers from limited productivity and processing activity. It is therefore urgent to update the 2001 strategy for rural development, the acceleration of land regularization, and the implementation of the pastoral and cattle farming codes. Priority measures should focus in particular on: i) increasing production in irrigated areas; ii) supporting rain-fed agriculture more efficiently; iii) rationalizing production in oases; and iv) modernizing the cattle farming sector. This requires a series of actions targeting, among other things, the revitalization of marketing channels at every level, increasing crop intensity in irrigated areas, diversifying production, increasing the quality of seeds, improving the environment for foreign private investment, facilitating access to credit, and encouraging public-private partnerships. Institutional reforms are necessary to strengthen the information system at the level of the Ministry for Rural Development (MRD) and to focus the activities of research agencies.
28. The fisheries sector has reached a critical stage of development in that fish resources have been heavily exploited while benefits to the national economy are largely generated by foreign companies and a large part of the benefits generated by the fisheries sector is exported. The main challenges in the sector are protecting over-fished demersal species and increasing the country’s added value by creating upstream and downstream processing capacity on Mauritanian territory and by increasing the value of unloaded catch through preservation, processing, and the promotion of sanitation. The absence of a strategic vision for the sector is also a significant issue. In view of its obsolescence, the national fleet must be modernized. However, financing is inadequate. Short-term priority actions should focus on: i) fixing objectives for fishing catch and effort (initially targeting cephalopod fishing within an approach that can be later transferred to other types of fishing); ii) setting up management mechanisms and measures (records of all fishing vessels, completion of technical and regulatory audits, rules governing the entry and removal of records); iii) setting up a fishing authorization program; and iv) creating conditions for locating catches and promoting the products in Mauritania in the best way possible including the adaptation of current infrastructure.
29. The mining sector can increase its contribution to the national economy in a framework of transparency and the good management of the environment while promoting mining exploitation that generates added value and jobs. Some challenges are linked to the inadequacy of the human and material resources available to the central government, which is responsible for the promotion and framing of the sector, the lack of diversification in mining production, weaknesses in current mining exploration, security issues affecting both people and installations, and the lack of basic infrastructure. Key reforms should focus on: i) improving the legal and regulatory framework; ii) strengthening and ensuring the sustainability of the structures created; iii) promoting mining among foreign investors; iv) creating a mining school to train engineers; v) strengthening coordination at the administrative level; and vi) preventing the negative impacts of mining activity on the environment. Proceeding with the implementation of the Extractive Industries Transparency Initiative (ITIE),6 which was delayed because of political
6 Mauritania is a candidate country for ITIE. The deadline for validation is March 9, 2010.
xx instability in 2008, is important for the good governance of resource rent.
30. Finally, although Mauritania is at the embryonic stage of its petroleum experience, the sector remains strategic. The discovery of oil and gas deposits offshore and the operation of the first oil field at Chinguetti in 2001 attracted oil companies, increasing revenues from the 2006 fiscal year. Although the industry has very high growth potential, it faces structural constraints that, combined with the recent fall in oil production from the Chinguetti field and rising servicing costs, led to a slow-down in exploration activities. Moreover, to date, there is no strategy for promoting and exploiting oil blocks and the legal framework is unsuitable. In addition, the Ministry of Energy and Petroleum does not have a competent operational directorate, resulting in skill overlaps between the Ministry and the Mauritanian Hydrocarbons Agency (SMH). Finally, since oil contracts are awarded without competition, oil exploration and production are affected. Priority actions should focus on: i) adopting a hydrocarbon code and an oil strategy and establishing a call for tenders mechanism for applicants to acquire oil blocks; ii) improving the performance of the hydrocarbons department in the Ministry of Energy and Petroleum; iii) reviving exploration activities, increasing production activities, and creating a stable business and work environment; iv) starting production in the first gas pool; v) promoting public-private partnerships; and (vi) closing audit records of recoverable oil costs on some exclusive exploration licenses.
31. The matrix below presents a synopsis of recommendations for short- and medium-term policies.
Recommendations Matrix Objectives and Short-term recommendations Medium-term recommendations strategic pillars Strengthening public institutions Managing public funds Establishing a Establish a public finance reform framework for framework with a TFP public finance monitoring committee reform and Establish performance indicators consolidating to measure public finance reforms already assessment via a PEFA underway Ambitiously consolidate reforms already underway (decentralizing payment orders, strengthening financial control and administrative and financial directorates, dialogue between sector ministries and the Directorate-General of the Budget) Improving budget Submit the 2011 Finance Bill Strengthen the capacity of the preparation, (LDF) to the National Assembly National Assembly Finance focusing on for consideration within a Committee to examine the budget programs and reasonable timeframe to improve and the Medium-term Budgetary medium term the quality of parliamentary Framework (CBMT) and objectives monitoring strengthen the Ministry of Introduce the 2011 budget bill Finance’s technical capacities for
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars including fiscal years 2012 and producing annual and multi- 2013 and including external annual budget estimates funding expenditure Review major legislative and Base budget planning on analyses statutory texts governing public of region-based infrastructure finance management (organic law needs in close collaboration with on LFDs, general regulations on the CSLP and strengthen public accounting, framework strategic planning by better law on CSLP, budget aligning the CBMT with nomenclature to include the priorities stated in the third CSLP CBMT approach, program (2011-15) action plan budget, and program-based Establish performance contracts classification between the State and public Improve economic classification enterprises in view of the results and include functional of the audit to be conducted on classification in budget the State portfolio in order to documents and not only in minimize budget overruns caused CBMT as is currently the case by additional grants to these Develop the technical capacities public entities of ministries in the areas of Implement the timetable CDMT and program budgets by established following the CBMT providing ministerial workshop (CBMT, CDMF, and programming directorates with the 2011-13 budget program for additional means and qualified pilot ministries) human resources Improve payroll supervision and Strengthen technical capacities personnel management for selecting and evaluating Harmonize public service and investment projects by finance salary records and strengthening the Project implement the setting up of the Evaluation Agency created in computerized personnel 2008 by the President of the management system Republic, which mandates that it further clarify needs but in no way become involved in project implementation Develop a CBMT and program budget procedures manual Implement the organizational and institutional audit by the National Statistical Office (ONS) Establish a formal consultation framework for ensuring consistency in and validation of sector financial, economic, and monetary statistical data Improve national accounts reliability Increasing budget Improve LDF implementation Ensure that regional secondary implementation monitoring through a monthly authorizing officers are connected monitoring meeting of entities concerned to the RACHAD system Limit the use of immediate Complete the computerized settlement budgeting procedures RACHAD system by including and the misuse of imprest all budgetary operations accounts and funds made including those related to
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars available balances, expenditure on external funding on the basis of estimates and ex post situations, contribution-based budgeting, and debt transactions Improve the centralization of Treasury resources at the Central Bank and limit project accounts under separate administrators Increase the range of money market instruments available for raising funds Make the transition to Sydonia + + (Customs revenue) Comply with budgetary allocations for non-permanent staff (operating budget) Improving cash Improve the centralization of Increase the range of money management Treasury resources at the Central market instruments available for Bank raising funds Establish an electronic connection between the Treasury and the Central Bank to simplify the payment circuit Limit separate bank accounts for project management Strengthening Strengthen internal controls and Publish quarterly reports on the controls and define the role of the General implementation of government audits State Inspectorate (IGE) to avoid spending under the new overlaps with Audit Office functional classification, focusing missions on poverty reduction expenditure Strengthen the Audit Office’s Continuously reform financial external control by recruiting auditing, focusing on substantive qualified personnel testing of major expenses Audit public enterprises including public procurements Prepare audit standard manuals and strengthen coordination between inspections for better coverage of audited areas, and publish and disseminate audit body reports including the immediate release of the Audit Office’s annual reports and reports on the laws governing financial settlements Strengthen Audit Office resources and recruit additional auditors Reforming public Publish a public procurement procurement plan in advance procedures Approve and implement the new draft procurement code, which separates allocation, audit, and
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars market regulation functions in compliance with good international practice Improving public Introduce the latest version of Develop a medium-term debt debt management SYGADE (Version 6.0), a web management strategy application that will facilitate both maintenance and interface between different applications and SYGADE and introduce new features in securities management that will eventually help record those instruments currently managed jointly by the Treasury and the Public Accounting General Directorate (DGTCP) and Central Bank of Mauritania (BCM) in order to generate a single database comprising all government debt Prepare a Debt Management Performance Assessment (DeMPA) study Public Service Ensuring effective Complete the validation of Ensure forward-looking management of government employee census management of workforce, jobs, State human results and skills within each service resources Implement public service general including the elimination of all regulations by adopting forms of informal public service secondary legislation Perform an organizational audit of the Ministry of Public Services aiming for a job/seeker profile balance Establish a results-driven human resource management system geared toward greater flexibility in management by auditing human resource management legal references and establishing a performance assessment system as provided for in the general civil service regulations Equipping public Revitalize the National School of Review training programs and administration Administration to address their adaptation to current services with administrative needs in the developments and government adequate skills coming years expectations Review public sector functions to identify commercial activities that could be transferred to the private sector Improving factors of production: human capital
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars Education Traditional Improve this sub-sector’s education: information system improving Bridge traditional education and existing structures the formal system Develop a legal framework for protecting children Create a support fund to promote the contribution of traditional education to the spread of basic education for all Literacy Revise the national strategy for Develop post literacy programs fight illiteracy based on results of by creating a literate environment the latest UNESCO-funded and facilitating neo-literate survey and the education policy integration White Paper, with special emphasis on functional literacy Develop an action plan for implementing the strategy Strengthen the legal and institutional framework for the fight against illiteracy, strongly involving civil society and village communities Preschool Consolidate and strengthen Improve access to and quality of education: achievements in trainer training services offered by pre-school improving quality structures for children from poor and access backgrounds by strengthening the capacities of pre-school Koranic teachers and implementing awareness programs for pre- school education in rural and suburban areas Basic education: Improve the quality and retention Develop new approaches for improving quality of this type of school by focusing giving students with no schooling on: (educational deprivation) and ◦ Reforming the mechanism dropouts (wastage) from for the initial and continuous disadvantaged backgrounds training of teachers and another chance by introducing inspectors by i) completing short-cycle informal primary the restructuring of teacher education (two to three years) to training colleges through the enable these children to be creation of a body of skilled reintegrated into formal education trainers, using international expertise in the short term and updating and implementing training programs; ii) establishing a continuous training program to train all current teachers on teaching methods in mathematics and languages,
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars especially French, by adopting new and more effective approaches (action training, distance learning, work-study program, etc.); and iii) revitalizing local support and taking into account the training of inspectors in the continuous training program to be developed ◦ Restructuring the current supply of schools and rationalizing the school map by i) strictly complying with conditions for opening new schools; ii) tying the construction of new schools to the completion of uncompleted schools; iii) launching an extensive program for rehabilitating and equipping schools by rehabilitating all classrooms currently in poor condition and completing all uncompleted schools and equipping them with latrines and safe drinking water; and iv) equipping all schools with desks, seats, and pedagogic toolsStrict compliance with the school attendance policy by i) creating a mechanism for monitoring absenteeism among teachers and students; ii) improving teachers’ working conditions by introducing new allowances for teacher attendance and performance; and iii) reviewing the rules governing school attendance in order to make it flexible and adaptable to students and teacher circumstances Secondary Reorganize secondary education Create well-equipped high- education: with a view to diversifying standard secondary schools (four improving and courses of study, promoting the or five across the nation) with adapting training teaching of science and the competent staff, and design a programs to actual conduct of experiments, and mechanism that will guarantee needs regulating the transition from the transparent and efficient
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars primary to secondary education selection of students by i) reviewing textbooks; ii) equipping facilities; and iii) updating programs Modify basic teacher training courses and set up an efficient language retraining program for Arabic-speaking science teachers Create a new employment status for secondary school inspectors and introduce a new course of study for training them in teacher training schools with the aim of decentralizing the profession and ensuring efficient and close support Higher education: Improve the institutional Priority measures should include: improving training framework by adopting the new Binding the State and schools quality and draft bill organizing higher together through performance adapting training education and scientific research contracts stating the rights and to needs intended to replace Decree No. duties of both parties 2006-2007 Constructing a modern university Review the training program and campus adapt it to national development Implementing the Licence- needs by: i) setting up needs- Masters-Doctorate (LMD) reform based professional training and modernizing the system by programs; ii) creating flexible establishing new quality and diverse training courses; iii) standards relating to teacher- setting up a continuing education student ratios, school facilities, scheme for which certificates and and access to scientific and diplomas will be awarded, and technical information iv) developing distance training Organizing research around structured teams by creating multidisciplinary research teams that will bring together researchers working in research institutes, teaching researchers, and students from institutions of higher learning Setting up a competitive funding mechanism to address key issues by sustaining and strengthening the National Scientific Research Support Fund (FNARS) and diversifying its fields of intervention Employment Building job Promote small and medium-size Design and implement seeker capacities enterprises (SMEs) and government job creation microfinancing through the programs by: i) continuing and implementation of a national strengthening its support for microfinance strategy aiming to: cooperatives, economic interest i) improve the global groups, and programs, ii)
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars environment and provide support supporting the development of for the creation of SMEs, ii) set employment-generating up a funding mechanism tailored infrastructure, and iii) designing to SMEs, and iii) achieve and implementing state technological development and government job creation intensify the Workforce High programs within the country Intensity (HIMO) approach (developing communities, agriculture, and livestock breeding) Setting up a Revive job seeker identification national job and placement by: i) setting up a market system centralizing corporate information needs and job seeker profiles, ii) system organizing ANAPEJ placement services, and iii) authorizing the creation of private placement firms Professional training Improving the Reorganize the piloting system to TPT piloting and ensure that its policies are governance coherent and increase its system efficiency and relevance to employment through improved task distribution and responsibility sharing among stakeholders and fair and equitable resource allocation Mobilize funding resources through annual investment budgets and apprenticeship tax benefits Adapt training programs and certification methods to educational systems and employment market requirements Implement a human resource management and development system that will ensure career development Improving the Strengthen management capacity TPT system at the information nerve center by introducing a quality management approach and results-based management of the system at every stage Improve the management of academic institutions (procedures, standards, resources, etc.)Institute an infrastructure maintenance and refurbishment policy Improving Create a training center for training quality trainers and supervisory staff as
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars well as those responsible for devising and implementing annual training programs Continue upgrading and implementing training programs based on a skills approach and improving teaching and educational materials Monitor and consolidate the implementation of quality control within training institutions Extending and Rationalize training by upgrading Create three new training centers diversifying equipment and renovating specialized in building training buildings construction, ICT, and hotel Set up training centers tailored to management and tourism regional economic imperatives Strengthen national professional including a model center for training programs targeting the programs in agriculture and farm needs of women and create management courses that will address their Create various short-term training specific needs systems (mobile units, Set up a broad learning and partnerships with development integration mechanism for young projects, apprenticeship, etc.) school dropouts Encourage the provision of training by the private sector training provision Improving the Sustain and improve the Create mechanisms for external efficiency information system based on supporting and assisting the of the mechanism employment needs and adapt it to integration of TPT graduates and linking it to other systems in the area Consolidate the embryonic the economy (ANAPEJ monitoring) system for monitoring graduates Establish the TPT Support Fund and extend its actions to include as an autonomous institution to an information and statistical consolidate its action and sustain mechanism for public and private its resources through TPT apprenticeship tax benefits and Design and implement an mandating it to manage elaborate communication and professional training investments information strategy for all training actors and beneficiaries Create platforms for consulting with professionals at both central and regional levels Labor regulation and social security Consolidating Finalize Labor Code regulations, Set up a case-law database on labor review the framework agreement labor matters administration on employment conditions, and Create a labor training center that improve the status of labor will provide training and inspectors and controllers refresher courses for labor union Provide competent services with leaders essential resources such as equipment and logistics to ensure strict compliance with labor
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars regulations (the Labor Code and the framework agreement on employment conditions) as well as international conventions on labor migration Promote social dialogue with labor unions by setting up a national committee for tripartite social dialogue on which most representative labor unions will be represented Strengthening the Review the law on the social Initiate discussions of the social security security scheme extension of CNSS personal and system Institute a policy to ensure material coverage in areas such as sustainable and financially viable health insurance and social security provisions by supplementary retirement pension defining an investment approach insurance through reforms that for maximizing returns on will ensure that social security National Social Security Fund schemes are more flexible and (CNSS) real estate assets better able to adapt to the job Complete CNSS computerization market and and aging insured to improve service quality, population transparency, and customer Strengthen employer contribution service recovery and control Continue improving individual accounts and employee contributor accounts Improving Review and reinforce the legal Build up the human and technical occupational instruments available to the facilities of the National health occupational health office Workplace Healthcare Agency management thereby facilitating its role in (ONMT) improving the health of workers Set up programs and measures for Review employer contribution preventing occupational illnesses rates to occupational healthcare by strengthening the Prepare a national policy collaboration between document on health and work occupational healthcare and safety, providing wider various public health programs geographical coverage of the (AIDS, malaria, CVP) national territory as part of Extend geographical coverage by decentralization and private constructing and equipping investment promotion policies centers within the country and staffing these adequately The health sector Accelerating the Set up a new legal framework to Develop a national quality improvement of ensure that the sector operates assurance system for the sector performance smoothly and efficiently Design and introduce principles indicators to attain Organize general assemblies on of best practice in the area of Millennium healthcare to draw up a pharmacy Development comprehensive and complete Carry out new studies and Goals picture of the sector and propose surveys to improve knowledge appropriate strategies in about health indicators collaboration with all stakeholders
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars Set and comply with personnel related standards at all levels of the healthcare system Draft and implement sub-sector strategies that will coherently fit into the national health policy (NHP), the poverty reduction strategy paper (CSLP), and the Millennium Development Goals (MDGs) Create a health information system including all aspects of the healthcare system and especially hospitals Improving access Generalize health coverage to to health services improve access to health facilities and adequate nutrition for all citizens As regards human resources: i) institute a coherent and transparent strategy for training health personnel and paramedics; ii) ensure rational career management and an optimal use of personnel to reduce disparities between wilayas and even within the same administrative unit; and iii) stimulate the creation of new health training schools to provide staff for both public and private health facilities Disease control Develop strategies that fit into the Stimulate private sector Millennium Development Goals investments to improve the (MDG) quality of healthcare provided by: Develop strategies for controlling i) supporting the implementation non-communicable diseases in of mechanisms for mobilizing order to: i) reduce the prevalence funds as part of a specific of Type II diabetes, high blood investment code for the health pressure, smoking, sector; ii) exempting medical hypercholesterolemia, and equipment from customs duties; obesity; ii) screen early for and iii) exempting the provision cervical, breast, prostate, and of healthcare from taxation for lung cancer; iii) reduce the the first five years of operation prevalence of mental disabilities; Subject private institutions to and iv) treat dental cavities international standards based on Develop a strategy for controlling specifications from the Ministry potentially epidemial diseases of Health by: i) issuing a license (PED) only after the institution’s In the hospital sector, implement compliance has been checked measures aimed at strengthening through ad hoc monitoring by an the generalization of medical assessment committee from the specializations, acquiring Ministry of Health; and ii) customized technical support granting current institutions a
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars centers, and establishing moratorium and setting a performance agreements deadline for complying with guaranteeing the quality of standards As regards the global services delivered environment, improve Review and improve the legal coordination with departments and regulatory framework for directly tackling other health- medical inputs related issues by creating a Initiate reforms aiming at suitable framework building the ministry’s Strengthen the population's institutional capacity financial capacity to access health (organizational chart, task services by: revitalizing the cost distribution, and selection of recovery system; ii) providing officials), furthering healthcare and subsidizing deconcentration and healthcare services for the poor decentralization, and and other underprivileged consolidating planning and populations, and iii) promoting programming procedures with a the sharing of health risks to view to improving performance extend universal coverage to all and the quality of services in the Improve the sector’s management health sector capacity through private sector Revive health forum, which must organizations, health-related be a platform for dialogue and information, programming, coordination with technical and decision-making assistance, financial partners budget execution, and monitoring Increase resources for the health and evaluation sector, to be allocated equitably and managed more rationally Water and drainage sector Strengthening and Carrying out an assessment and consolidating diagnosis process in effect institutional involves reviewing all legal reform material governing the sector’s activities and analyzing results from implementing the 2000 reform Supporting a national strategy for the drainage sub-sector Activating the hydraulic sector information system involves appraising the national water supply and drainage infrastructure and defining related concepts based on this appraisal Supporting the review of the sector's legal framework, notably Bill No. 2005-030 and its implementing provisions Improving the factors of production: Infrastructure Electricity Increasing Carry out rehabilitation production investments and strengthen capacity to meet technical management as
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars demand indicated in the CCI analysis of the SOMELEC report Make swift decisions on the construction of the planned large power plant (with dual turbines capable of running on natural gas or heavy fuel oil) To support renewable energy development: ◦ Set up a feed-in tariff type incentive scheme with tax credits and/or tax exemption for renewable equipment, with the possibility of consolidating the department responsible for these areas or even of creating an agency supported by the Center for Applied Research on Renewable Energy (CRAER), now under study ◦ Create a specific window for rural electrification and renewable energy and formalize the connection between these activities and those of other institutions (land improvement, ONS, weather, various departments at the Ministry of Finance, etc.) Restoring Reconstitute SOMELEC’s equity Implement a tax review that takes SOMELEC's funds to the amount of accrued into consideration oil price financial stability deficits, which stood at MRO 21 increases billion at the end of December 2009 Set up a MRO 3 billion crash program to improve production and distribution Pay off State/SNDE outstanding debts amounting to MRO 10 billion Accelerate debt collection especially that owed by government administrative services and the national water distribution company Strengthen the fight against fraud and fraudulent activities by some agents Reduce technical losses Write off reciprocal debts between the State and
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars SOMELEC, restructure debt, and increase the company's capital base with State support Improving the Implement a master plan detailing sector’s strategic a development strategy for low- framework cost production, transportation, and distribution infrastructure with a view to meeting by 2015 the State's objectives of mobilizing MRO 500 billion to finance this development program over the next five years Choose an operational framework that will ensure greater transparency in the sub-sector's strategies and action plans Defining the Clarify the institutional private sector’s framework to facilitate private role sector interventions Reviewing the Extend the intervention area to Harmonize the various legal texts legal framework the entire sector and in particular governing the sub-sector simplify SOMELEC's status Introduce a new component specific to rural electrification notably by classifying the different levels of private sector intervention (grants, leases, outsourcing, etc.) Introduce a chapter specific to the development of renewable energy Based on this classification, clarify the appropriateness of installations and especially the role of each stakeholder and the responsibility for developing and extending different segments (transportation, distribution, production, etc.) Eliminating Identify incentives capable of constraints on attracting trained personnel and human resources in particular provide adequate training sessions for junior, technical, and administrative personnel Road and maritime transportation Improving road Improve road maintenance Design and implement a master transportation management and financing by plan for road network reviewing and adapting the development institutional framework for road Develop and implement a maintenance management, national transportation plan implementing an adequate and Develop and implement a sub-
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars sustainable financing mechanism, sector policy white paper for and reexamining financing urban transportation sources for road funds (FR) and strengthening their management Road investment programs should be organized and encouraged to promote regional and sub-regional integration (through a road network to Mali, from Algeria, Morocco, and Senegal), with all road network expansion programs including recurrent costs and sufficient allocation for FR Build roads in rural areas to improve the transportation of local produce to markets, based on a national rural development and improved access strategy Strengthen support for transporters to have their fleet renewed and overhauled by creating a support fund and/or taking appropriate and specific tax measures Renewing port Rehabilitate and develop Port of Clarify the institutional structure infrastructure Nouakchott infrastructure of the ports de Nouakchott and through a public-private Nouadhibou partnership (PPP) scheme and Update the legal and regulatory sustainably upgrade framework by completing Bill infrastructure by constructing No. 95/009 on the marine code two operational zones: one for together with its application texts container traffic and the other for as well as other major texts bulk cargo including governing the regulatory hydrocarbons, along with framework for the sub-sector and measures to be taken to reduce those relating to registration coastal erosion and build a third requirements for obtaining quay through a PPP by private professional maritime licenses operators specializing in port management with donor-financed assistance from the State As regards the Port of Nouadhibou, comprehensive restructuring and refurbishment work should be undertaken including the continuation of the wreck extraction project financed by the EU, the expansion of the Autonomous Port of Nouadhibou (PAN) dedicated to fishing activities (funded by Spain), and the expansion of the ore port Development of the private sector and sectors with future potential
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars The investment climate Improving the Finalize the Investment Code by: Develop a country-based vision for private i) evaluating it within the overall development strategy for the sector strategic framework of business taxation; private sector, identifying policy development ii) deleting the articles under options and instruments aimed at including the Section III.2 on free zones, free improving the business regulatory ports, and special economic environment, promoting private framework zones, and iii) replacing these sector development and with a single article mentioning investment and economic growth the existence of free zones and Define a strategic development special economic zones without framework for a special providing details while economic zone by: i) identifying evaluating the opportunity of objectives and pilot projects; and creating a special economic zone ii) screening area types that are as a tool for promoting applicable to the objectives and investment climate reforms characteristics of the regulatory through a cross-sector working and administrative system(s) group along with special considered economic zone and free zones to be set up by ministerial decree from the MAED and will involve the ministries and departments concerned Developing Develop a legal and institutional public-private framework for public-private partnerships partnerships, with the Investment Promotion Agency (CPI) working with the new national agency to study and monitor projects in order to assist, advise, support, and monitor the various stages in partnership contracts in collaboration with the ministerial departments concerned Strengthen public-private partnerships by creating cooperation units that will allow for greater participation in the reform process Improving the Continue opening up the banking operations of the sector to foreign competition and financial sector to foster improvement in the field promote corporate through new institutions development (financial leasing corporations, factoring companies, venture capital corporations, etc.) to improve access to bank credit especially for small and medium- sized businesses as well as financial service quality while reducing costs Stabilize and strengthen the microfinance sector
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars Build SME capacities to produce reliable financial statementsSet up a financial reporting management unit (credit office) Promoting a fiscal Strengthen taxpayer rights, Reduce deductions at source from policy to guarantee, and recourse the Consolidated Investment encourage Ensure continuous training of Budget (CIB) to 1% in favor of partnership Directorate General for Taxes periodic payments (DGI) officials Create the status of Certified Conduct a survey on the cost of Management Center (CGA) to fiscal and non-fiscal support contract microbusinesses formalization (company by initially developing a suitable registration, tax registration) in mechanism (setting tax order to measure and reduce abatements offered to member costs companies or CGA tax liabilities) Adopt measures aimed at: i) simplifying procedures for starting and operating small businesses; and ii) facilitating access by formalized small businesses to public markets and financing Promoting Identify key sectors for Adopt a strategy for fighting competition conducting in-depth analyses against anti-competitive practices aimed at guiding the strategic Improve and develop the legal approach to fighting anti- framework for competition competitive practices (for (currently included in the example, cement manufacturing, Commercial Code) by enforcing consumer goods, basic the implementation of orders that foodstuffs, network-based allow for using detailed industries) regulations to control and prevent Build current capacities and anti-competitive practices develop especially for the Ministry of Commerce a clear vision of the legal, financial, and human resources necessary to effectively fight anti-competitive practices including activities in favor of the competition policy as well as policies on awareness building and of education on competition Eliminating Revitalize the one-stop shop to administrative continue simplifying obstacles administrative procedures and formalities and reduce their timeframe Develop a program to improve Mauritania’s Doing Business ranking by engaging in reforms that aim to: i) eliminate minimum capital for the creation of a business; ii) reduce the costs,
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars number of days required, and procedures relating to the creation of a business; iii) develop cross-border trade and reduce customs procedures; iv) improve the granting of construction permits; and v) strengthen investor protection Improving the Activate the ASYCUDA++ operation of system in order to generate customs reliable data for economic actors administration and political decision-makers Strengthening the Strengthen sector contribution to Revise sector codes (such as legal sector contract compliance and debt commercial and labor codes) by recovery by: i) revising adapting the general provisions of instruments to simplify the the Investment Code to the acquisition of movable and differing conditions of the immovable property; ii) various sectors through specific strengthening tenure types; iii) clauses that correspond to activity promulgating the law on debt type and actual needs of operators recovery, iv) reasserting the Strengthen the judicial system in status and jurisdiction powers of compliance with the Action Plan judges; and v) setting up on the Final Report on Justice commercial tribunals in all (November 2005) by focusing on: wilayas i) providing judges with training on business law (specialization); ii) improving performance (reduced time-frame for court rulings, judgment quality; iii) developing transparency (publishing rulings); iv) lightening the judicial investigation of court records; and v) ensuring adjudicative fairness Develop anti- Finalize consultations on the corruption National Anti-corruption instruments Strategy prior to its adoption Finalize and adopt the Procurement Code Rural development Updating the rural Review the 2001 rural sector Initiate institutional changes development development strategy (SDSR), within MDR designed during as strategy (SDSR) maintaining its basic orientations part of short-term preparatory and strengthening while developing new priority studies sector axes in order to coordinate and Improve executive development organization harmonize actions in various sub- for public and private sector sectors while integrating rural activities in rural areas, retrain communities and the private managers currently holding sector in a development dynamic office, and revive research and for the sector and including this extension programs for these process in the preparation of an activities agro-pastoral framework law
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars Improve Ministry of Rural Development performance As a matter of urgency, audit UNCACEM institutionally and financially Provide monitoring and evaluation units with the means to execute their mission, with the blueprint for the department’s information system to be studied as soon as possible Align multi-year plans with strategic choices, with actions taken to vary the strategy at the level of sub-sectors, and set up three-year programs and operational action plans Review the missions and organization of the department and its branches according to the revised strategy, based on: i) a general mission statement that will appear in a variety of specific mission statements, and ii) expected performance and action indicators Refocus the missions of executive agencies including those of public institutions under supervision (SONADER, CNRADA, CNERV), which should be reviewed to better define their role and required resources, and review the relationship between large projects and the Ministry Develop and implement a national food security policy (PNSAM) and define a strategy for fighting food insecurity Revive training activity given that, in view of the imminent launch of the Rosso Institute for Advanced Technological Studies (ISET), any hopes of reviving ENFVA must also be reviewed, with the MDR working closely with ISET on several priority projects including the profile of some specialized executives to be trained, and a study of the sector’s human resource needs being carried out in order to
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars guide sector choices and training levels Review achievements and adopt a research and extension revitalization strategy Adopt excellent strategies for communicating results obtained Revisiting Use available PDIAIM II project Implement the blueprint in the irrigated resources to finance a blueprint Valley’s PDIAIM area by using agriculture and for the revival of sustainable resources available within the market gardening irrigated farming in the Valley framework of the project and possibly those that may fall under a possible PDIAIM III Providing support Start up the Rosso fruit and necessary for vegetable packing station and processing refrigerated warehousing at the agricultural Nouakchott airport products Modernizing the Invest in pilot poultry production livestock sector units Designing and Develop a permanent financing developing new strategy for rural communities in financing methods response to an urgent need to find ways to revitalize pro-agriculture credit activities while avoiding the mistakes of the past, a strategy that should involve: i) private banks, based on an interest subsidy system or the provision of low-rate public resources specially designed for agricultural and livestock activities; and ii) risk and recovery management, which remains the responsibility of private banks, with production boosted through government support that is predictable and visible in product purchase prices Encouraging and Identifying opportunities offered promoting public- by rural areas to various investors private is a prerequisite for developing a partnerships public-private partnership policy Develop specific rules for investing in the sector Initiate the study and implementation of an incentive framework offering permanent guarantees to both domestic and foreign investors, taking into account the uniqueness of the investment in the agricultural and livestock sector and the agro-
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars industry Set up tools for keeping actors informed of opportunities The opening of the sector to investors should be accompanied by a communication process for the benefit of current or potential actors and aiming to: i) mobilize new stakeholders; ii) encourage current operators to develop natural resources; and iii) professionalize socio-professional organizations (SPO) Fisheries Setting catch and Transform research on excess Develop fishing licence programs fishing effort fishing activity into operational through a list of vessels objectives recommendations to identify authorized to fish and the fishing opportunities application of rules related to the Develop and evaluate various licensing system coupled with the scenarios for allocating fishing determination of a permissible opportunities, taking into account catch size (PCS) objectives on reducing overall Encourage product promotion and fishing activity development Provide training and capacity building for all sectors Mining Defining mining Finalize the standard Mining sector policies and Convention and the various laws ensuring national and regulations connected with mining code the amending Mining Law of competitiveness 2009 Improve the institutional framework and adapt it to the requirements of the private investment promotion context and to strong competition aimed at welcoming investors by: i) modernizing and computerizing mining land records to ensure that mining rights are transparently and efficiently managed; ii) strengthening the Environmental Affairs Department (SAE) within the General Directorate for Markets (DGM); iii) improving DGM organization and working procedures; iv) strengthening mining administrative structures; v) strengthening and computerizing SIGM; (vi) continuously training staff as regards these structures; (vii)
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars training the department’s staff; (viii) improving the social impact of mining activities in mining areas; and (ix) continuously diversifying economic activities in mining impact areas Building OMRG's Create a mining school to train technical local engineers in mining-related capacities and sectors strengthening the mining sector’s contribution Developing Encouraging operators already mining research present in the country as well as new operators to start research work on Mauritanian soil Developing Continue to actively raise mining mining and operator and investor awareness supporting mining by: i) actively participating in operators numerous regional and international events; and ii) guiding relevant individuals during visits to Mauritania with the aim of educating them on the country’s business environment and mining potential Attract domestic and foreign private investment in order to develop the sector Strengthening It is especially important that the Prevent the negative effects of environmental mining police be strengthened so mining on the environment by management that it can closely monitor participating in the EIE process operator activities at the levels of in a continuous and monitored exploration, exploitation, and manner with regular and accurate social commitments environmental impact assessment being conducted on mining activities in the country Securing data on Strengthen coordination with mining activities supervised organizations by including mining regularly providing detailed rights and quarries reports on their activities and holding periodic meetings to review mining activities and future developments Oil sector Improving the Adopt an oil code that freezes the sector’s strategic key provisions of oil contracts, framework including economic and financial provisions, in order to limit the power of State negotiators, with the State waiting for a deposit to be discovered in the Taoudeni Basin before promulgating the
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Objectives and Short-term recommendations Medium-term recommendations strategic pillars Code to improve its bargaining position at the head of an oil- producing country Develop an oil strategy, taking into account government strategic guidelines, the country’s internal realities (potentials and weaknesses), and the international situation Immediately set up a transparent and competitive bidding system for block acquisition by applicants Strengthening the Develop a targeted recruitment institutional plan to attract top talent from framework within the country, with sufficiently attractive financial compensation Provide human and material resources necessary for monitoring operations Revive training for some profiles (engineers, oil lawyers, oil economists, and auditors) Increasing oil Revive exploration in Start production in the first gas exploration and sedimentary basins to increase field so that Mauritania may in production the country’s reserves, which the medium term play an could be achieved through important role in supplying careful adherence to contractual electricity to riparian countries obligations and the government's Increase recoverable reserves by refusal to grant unjustified comprehensively assessing extensions already discovered deposits: Increase production capacity as Tevet Labeidna, Pelican, Tiof, soon as possible by additionally and Falcon, and encourage and developing the Chinguetti field promote public-private and starting production in the partnerships by: Banda (oil RIM) and Tiof fields Identifying infrastructure projects Promote a stable business in oil transportation and port environment by setting up a facilities suitable work frame that would Developing a strategy to attract allow exploration and production investors to transportation and companies to invest in complete port facilities security and increase investment Close audit files for recoverable levels in the oil and gas sectors oil costs on some Exclusive Exploration Authorizations (EEA)
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PART I: STRENGTHENING PUBLIC INSTITUTIONS
1. PUBLIC FINANCE MANAGEMENT
A. CONTEXT
1.1 The Government realizes the need to improve public finance management and initiated budgetary reforms in 2005. This reform covers a relatively broad spectrum. However, the public finance management system has remained inadequate in terms of planning, budgeting, and accounting. For example, the operational and investment budgets are prepared and carried out separately, which is highly harmful to effective expenditure management. However, reforms have been initiated at several levels.
Budget Preparation and Planning
1.2 Budgeting is gradually being based on national policies. Noticeable efforts have been made since 2006-2007 in terms of the budget process. In addition, sector strategies have been developed, and investment expenditure takes account of these.
1.3 Relative progress has been made in establishing a medium term budget framework (CBMT) linked to the development priorities identified within the 2006-10 CSLP. A CBMT was prepared in 2007 for the period 2008-10, but this was not renewed in 2008 and 2009. It is important to reintroduce this in 2010. A timetable was established following a workshop on the Medium Term Expenditure Framework (CDMT) and Budget Programs, resulting in a plan to update this in May 2010. The objective is to strengthen budget discipline by establishing clear links between the national strategy in the various sectors, sector action plans with well-defined and measurable objectives, and budget allocation, and to improve efficiency in the allocation of resources between sectors in conformity with the CSLP and sector strategies. Furthermore, implementation of major tax reform is in progress including the modernization of the operations of the tax authorities through the computerization of the General Directorate for Taxes.
1.4 The Government has expressed the desire to move toward the implementation of budget programs (BP) in pilot ministries in order to establish results-based management. Within this approach, sector CDMTs or the ministerial three-year action plans are presented by activity, with targeted objectives and performance indicators. Budgeting by program is an efficient way of demonstrating to what ends and with what results resources are being used. It should enable consistency and conformity between planned programs and budget allocations on the one hand and the CSLP objectives and general government policy on the other.
Budget Operations
1.5 Budget operations are carried out on a partially estimated basis, and procurement systems do not make optimal use of public resources. The mechanisms for controlling and monitoring the use of public funds for salary and non-salary expenditure are inefficient. Even though cash flow is satisfactory and budget entities have reliable data on credit ceilings, too many budget adjustments still have to be made.
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1.6 The simplification and deconcentration of budget operation procedures (commitment and authorization of expenditure), previously centralized with the Ministry of Finance (MF), have been allocated to the various ministries. Thus authorization is now carried out by each ministry following approval by the relevant financial supervisors.
1.7 The chain of expenditure has been computerized through the creation of a new Expenditure Chain Automated System (RACHAD) set up in October 2006. This contains all the budget operational data and includes an allocation of resources component under the supervision of the MF and an expenditure component, which allows the ministries to follow their case files in real time over the various operational stages until settlement with the Treasury, including the various phases when the latter assumes responsibility for them.
1.8 The financial audit reform initiated in 2005 is strengthening the traditional audit function (study of commitment proposals, availability of credit and accuracy of assessment). It has also been given an additional function – an audit of projected expenditure and employment (staff and salary costs) – with the DAPBI certificate. The reform aims to move toward more dynamic management of the annual budget and one that is closer to the objectives of the planned expenditure. However, the effectiveness of this reform depends on the authorizing officer’s management capabilities and the availability of appropriate management tools.
1.9 The financial audit has been deconcentrated and a new budget nomenclature adopted. The rationalization and deconcentration of the financial audit (2005 decree), previously the responsibility of the Treasury and now in the hands of the ministries, are intended to speed up expenditure commitment, settlement, and order procedures. A central financial audit is held at Treasury level to monitor expenditure authorized by the MF. Auditors are now responsible for auditing each ministry’s annual budget planning documents (DAPBI) as well as for their traditional functions of auditing the availability of credit at time of commitment and drawing up records of credit use. DAPBIs must present the main actions planned and the expected outcomes for each department with a three-monthly timetable and a budgeted plan of operational expenditure and investment. Ministerial staff must also provide the financial auditor with a three- monthly DAPBI report up to a specified level of detail, which makes it possible to assess the level of expenditure and the later redeployment of appropriations requirements. In addition, a new budget nomenclature anchored on the State’s system of accounts (economic nomenclature) has been introduced.
Budgetary Control and Audits
1.10 Budgetary control procedures have improved in recent years thanks to the establishment of the State General Inspectorate (IGE) and the revitalization of the General Inspectorate for Finance (IGF) in 2005, but further action is required. The IGE is run directly by the Treasury and is a successor to the General State Audit, which had not been conducted since 1992. The IGE has a very broad remit in terms of the management of public funds, the fight against corruption, and the evaluation of public policies. It intervenes based on a program authorized by managers and following requests for timely surveys by higher authorities. It reports to the President of the Republic, and it has highlighted numerous irregularities in the application of the public procurement code, the certification of services performed, and compliance with tax and customs provisions. In addition, IGF activities have been revitalized
2 thanks to an increase in staff. It intervenes based on an annual program and following timely interventions, and includes chaired commissions responsible for significant budget issues such as arrears, temporary civil service personnel, or simplified expenditure procedures.
Public Debt Management
1.11 Foreign debt management involves three ministerial departments: the Ministry of Public Finances and Development (MAED), which mobilizes financing, the MF, which monitors repayments, and the Central Bank (CBM), which, as delegated by the MF, pays installments by debiting the Treasury’s account. Furthermore, the Central Bank manages domestic debt in conformity with monetary policy objectives. It publishes regular data on tenders for fixed rate treasury bonds. The BCM and the MF coordinate and share information beyond the active interface between the two departments. Accounting for foreign debt (on a loan-to-loan basis) and domestic debt (T-invoices and treasury bonds) is poor. Collecting data for the 2009 DSA has proved difficult. Furthermore, the debt management software SYGADE (provided by UNCTAD) is not yet linked to the integrated financial management system. Analyses of debt sustainability are not yet being carried out adequately or regularly. It should also be noted that in September 2009 there was a fire at the Foreign Debt Directorate building where the server on which SYGADE operates was located and that the SYGADE system has not been used since.
B. MAJOR CONSTRAINTS
1.12 Based on the reforms introduced in recent years, a follow-up process is needed to complete the reforms in terms of both budget preparation and operation and audit. As regards budget presentation, a determined effort should be made to gradually recast the budgetary framework in order to prepare the budget as a program budget. This requires programs to be implemented based on sector objectives and allocated budget items to be based on the performance indicators of the various programs. To this end, the Framework Law must be modified and updated. Currently, there is no general program on public finance management reform to clearly express the Government’s vision of the necessary reforms or to facilitate coordination between government departments or with technical and financial partners (TFP).
Budget Preparation and Planning
1.13 The quality of budget preparation is inadequate because of the limited capabilities of the MF structures responsible for planning and forecasting. The Directorate for Forecasting and Economic Analysis (DPAE), the new structure responsible for forecasting at MAED level, still lacks the tools and qualified personnel to ensure adequate performance. As a result, the capabilities of the MAED and MF departments concerned do not enable budget preparation based on realistic projections. If this were the case, planning for expenditure for which there is no planned revenue would not occur.7 Reliable revenue projections are essential for both annual budgets and medium term budget frameworks (CBMT). Weaknesses at the Finance Bill level force the Directorate for Administration and Finance (DAF) and the
7 It is not essential to use sophisticated econometric models because tax-based forecasts provide equally viable results. Good methodology is more important.
3 ministries’ financial audits (MFA) to make incorrect budget charges, which seriously damage the integrity of the final accounts. More efficient controls are necessary as much at MFA as at Treasury General Disbursement level (PGT). Because there is no practice of redirecting credit during a financial year, there is no way of correcting the problem.
1.14 At present, the presentation of the Finance Bill (LDF) does not describe the foreign financing element of the Consolidated Investment Budget (BCI). The LDF only includes forecasts for national counterparts toward investment projects financed by donors. By contrast, the BCI, which includes all foreign financing, is an annex to the LDF. This dichotomy between operational budget and BCI damages the comprehensiveness of budget documents and makes the control and traceability of budget operations difficult. A new State Code of Accounting Standards has been prepared at Public Accounting General Directorate (DGTCP) level and must be authorized by the ministries. A review of it by the African Regional Technical Assistance Center (AFRITAC) would be desirable.
1.15 A budget nomenclature, worked out in 1998, includes administrative, economic, and operational classifications but is only used for sector analyses (education and health) and not for documents submitted to Parliament. To facilitate the monitoring of expenditure on the fight against poverty, the operational classification was reviewed in 2006 with IMF help to make it comply with the 2001 Manual for Public Finance Statistics, which was used for the 2007 CBMT but is not included in the budget documentation. Thus the economic classification should be improved, with a restricted number of “various” or “other” items in the budget and a more rigorous audit during execution. The Code of Accounting Standards prepared by the DGTCP plans for a noticeable increase in the amount of information given to Parliament.
1.16 There should be a redraft of the budget presentation starting with the key ministries and using a presentation by program. The ministries should regroup their expenditure into programs and sub-programs and budget allocations should be based on these programs. This reform could be adopted in an initial pilot phase for specific ministries then be gradually opened out to the others. This would require a review of the Framework Bill and the implementation of a program-based budget nomenclature.
1.17 The lack of a regulated budget calendar is a cause of delay and weakness in the preparation framework for the LDF. To this end, the preparation process should start earlier with an outline document providing macroeconomic forecasts and more time should be given to the technical ministries to update their three-year plan and prepare their budget proposals for the Budget Directorate to finalize a sound budget and for Parliament to analyze the LDF bill. The role of Parliament should be strengthened in both the debate over budget proposals and the monitoring of its execution up to the adoption of the Budget Review Bill.
1.18 The size of public enterprises and institutions is also a considerable threat to budget sustainability. The recent creation of several new public entities, the lack of an audit of the State portfolio, and the lack of performance contracts linking the State to these entities increases the risk of budget overruns.
Generalization of Medium-term Budget Frameworks
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1.19 As regards planning, the technical ministries have little capability for preparing CDMTs because most of the professional staff of the public administration services, who used to work on these in the past, have left. Staff changes in the Mauritanian public administration services were common in the past and became even more frequent in 2008-2009.
1.20 The capabilities of the General Directorate for Economic Forecasting and Analysis (DPAE) and forecasting tools are inadequate. The CBMT development process is run by a technical committee that relies on the macroeconomic forecasts and revenue forecasts prepared by the DPAE. This committee was recently created in collaboration with the public financial agencies, the Central Bank, and the ONS. The first CBMT process used an appropriate approach, taking account of the sector CDMTs, where available, or the three-year actions plans developed by the ministries.
1.21 The CBMT approach must be improved with better assessment of allowances to be distributed, and be based on a reference scenario. The CBMT is not established each year, nor is it based on realistic revenue and expenditure projections including core expenditure (servicing of debt, salaries, etc.). For example, preparation of the 2011-2013 CBMT could be based on the 2011 Finance Bill. For the period 2012-13, it could be based on current revenue and expenditure projections corresponding to the services approved in 2010, capital expenditure corresponding to current projects, projects that will begin over the period, and estimated savings on the budgets of current programs. The reference scenario should be accompanied by a list of additional allowances to be allocated to priority projects within the limits of available financial resources. The key distribution of additional allowances should be established by the Government based on sector CDMTs and development policy priorities. It must be recognized, however, that the forecasting mechanism is poor, which prevents the finalization of a viable CBMT as the structures responsible for recovery have difficulty in providing accurate and detailed data on revenue. In general, the selection process for investment projects should also be improved by being based on cost-benefit analyses. Finally, the monitoring of projects should be strengthened and the flow of information to the public on completed projects should be increased considerably.
1.22 The credibility of the CBMTs needs strengthening by introducing Budget Orientation Debates (DOBs) in Parliament on the CBMT and the macroeconomic framework at the start of the budget session. Parliament should be able to examine the major orientations of budget policy for the following year in the context of a CBMT update for the upcoming three years. The final CBMT should take account of budget trade-offs and be appended to the Finance Bill to give its projections credibility for the following years. It could be presented as an Economic and Financial Report, as advocated by the Finance Bill of 1978.
Establishing Budget Programs
1.23 A commission responsible for reform has been created at MF level (Reform Unit). However, a lack of clear terms of reference and of coordination with the central directorates of the MF has kept this structure inoperative. The MF therefore recently merged it with the PREMIER program in order to coordinate the implementation of reforms. Similarly, a working group has been created in the General Directorate for the Budget to examine concrete proposals for reforming the Framework Bill relative to the LDF and to more appropriate methods
5 for reforming budget presentation based on experience from other countries, among other things. Outside technical assistance could be used to remodel the budgets of the principal ministries based on their duties, program, and action plans.
1.24 The introduction of BPs requires subsequent training stages. On January 27 and 28, 2010, within the framework of the PRECASP project and with the help of the World Bank, the MF and the MAED organized a presentation on the use of budget programs, with the Ministry of Education as an example. Pilot ministries were selected to present their budget in the form of a budget program as of 2011.
1.25 There is no manual for the preparation and assessment of the BPs. Such a manual could help train professional staff on the procedures for preparing and executing the budget. Steering committees should be set up in each ministry. Merging DAF and the ministerial departments responsible for studies, cooperation, and programming could be envisaged in order to create a strong unit for budget planning and execution in each ministry.
Budget Execution
1.26 Although investment and operational budget management by the deconcentrated authorizing officers represent an important move forward, further improvements have to be made. The financial audit has been deconcentrated and the establishment of the RACHAD system allows for a reduction in non-automated controls. The quality of accounting and audits must be strengthened. To this end, the DGTCP has planned training for DAF, MFA, and audit unit. The deficiencies that remain are linked to expenditure on foreign financing, which is not included in the RACHAD system, and to not offsetting delegated credit and expenditure on imprest accounts. This creates inconsistencies between the position at Treasury and public accounting level, particularly at fiscal year end. The costs of the debt should also be taken account of by the RACHAD system. Generally, every budget operation should go through this system including public procurement, which at present is only partially included. As regards working balance operations, the MF is working on a model that will allow these to be directly integrated.
1.27 Over-reliance on derogation procedures, such as the Request for Immediate Repayment (DRI), imprests, requisitions by accounting officers, and other instruments weakens annual expenditure planning because of the commitment procedure, whereas this planning is intended to ensure the availability of cash. Using DRIs and other derogation procedures should be strictly limited to true emergencies. This requires an unfailing commitment at the highest levels of government.
1.28 There is no reason to use the DRI procedure for operations other than those planned by MF decree on RACHAD. The usual justification is that the aim is to reduce operational time. However, it should be possible, within a minimum amount of time, to carry out expenditure commitments and order operations according to normal procedures.
1.29 The secondary authorizing officers in regional capitals and secondary accounting offices are not linked to the RACHAD system. At the moment, only the Nouadhibou wilaya is linked to the system. Faster methods must be established for sending data from the regions to the
6 center, particularly electronically. The DGTCP would like to work toward the deconcentration of accounting by launching a pilot experiment aimed at converting the Regional Treasurer of Nouadhibou into the Main State Accounting Officer.
1.30 There is no computerized interface (or at least no interface between respective systems) between the General Directory for the Treasury and the Central Bank, which would facilitate financial settlements. A committee made up of the BCM, the Treasury, and the PRECASP Coordination Unit has been established to work on this interface.
1.31 The results of budget execution are not communicated to all stakeholders. This should therefore be practiced more widely, including civil society, to increase transparency.
Budget Controls, Audits, and Public Procurement Procedures
1.32 The General Inspectorates of Finance (IGF) and State IGE) have very broad roles and their coordination seems inadequate. This leads to overlaps and inefficiency in controls. Monitoring their work should include initiating specific reforms or abolishing specific practices such as recruiting temporary staff. General Inspectorates have no audit manual and do not publish annual reports. Furthermore, not publishing audit reports deprives these bodies of an important means of deterrence and transparency, especially in communications with Parliament. Finally, the lack of interaction with civil society organizations prevents the distribution of data on internal and external audits.
1.33 As regards the public procurement system, the different tasks of awarding contracts, audit, and regulation are currently concentrated at the level of the Central Commission for Markets (CCM). The new public procurement code, which has been in the finalization process for more than two years, aims to ensure the separation of these different procurement functions. It will be achieved through the establishment of a procurement regulatory authority. This entity will have a body responsible for non-legal claims and for settling procurement complaints. The draft code also provides for a procurement audit committee under the Prime Minister, which will be responsible for an a priori audit of procurements that are at present the responsibility of departmental committees. The regulatory authority must ensure the publication and wide distribution of calls for tender and the disclosure of procurement results. Competitive tenders will be standard for procurement, while other methods (restricted and private contract call for tenders) should be limited to the conditions specified by the code. A review of specific provisions of the code is also necessary to ensure compliance with international standards. The new legal texts specify the conditions for procurement advertising, and these must be complied with to ensure the transparency of the procurement process.
1.34 The number of Audit Office personnel is clearly lower than initially planned. It was agreed that the Audit Office would recruit additional staff to fill positions recently vacated by specialized personnel (auditors). Furthermore, Audit Office annual reports are not always published regularly, and the MF must deal with delays in preparing the Budget Review Bills submitted to the Audit Office for verification. The last Budget Review Bill published covered the 2005 fiscal year.
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Public Debt Management 1.35 There are several administrative constraints on the sound management of foreign debt. The problems facing the Government more particularly concern the lack of debt management software, the poor integration of the Directorate for External Debt (DDE) in the chain of public expenditure, the use of automatic debit for paying installments and retroactive regularization, and a lack of interface between the DDE, the Treasury, the General Directorate for the Budget, and the Central Bank.
Cash Management
1.36 The management of State cash is not yet ensured on a consolidated basis. Management will be improved, especially with the implementation of a Bank Management Committee and with a greater variety of tools for using the money markets. A review of cash operations, including the establishment of an electronic payment system between the Treasury and the BCM, is under way, with a committee in place to implement it.
1.37 Raising funds on the money market is currently done through a range of poorly diversified instruments (short term treasury bonds only). In this regard, a project is in preparation at the DGTCP. Efforts are being made to consolidate State cash resources into one account at the Central Bank. Project accounts with administrators should be limited and even disallowed for ministries.
C. RECOMMENDATIONS
1.38 The following actions should be implemented to improve budget preparation, execution, and management:
Establishing a framework for public finance reforms and consolidation of reforms already underway Establishment of a framework for public finance reforms with a TFP monitoring committee; Implementation of performance indicators to measure the assessment of public finances through a PEFA process; Ambitious consolidation of reforms already underway (decentralization of authorization, strengthening of financial audit and administrative and financial divisions, and dialogue between sector ministries and the General Directorate for the Budget). Reform of Budget Preparation and Presentation
Short-term Recommendations
Submit the 2011 LDF to the National Assembly for review within reasonable time limits in order to improve the quality of Parliamentary oversight; Present the 2011 Finance Bill including 2012 and 2013 and include foreign financing expenditure in the bill; Begin the budget preparation process earlier in order to give the ministries more time to
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refine their budget proposals and support the appropriate departments in the MAED and the MF so that the budget is based on realistic repayment projections, thus making it possible to avoid planning for expenditure beyond potential revenue; Base budget planning on analyses of infrastructure requirements on a regional basis in close liaison with the CSLP and strengthen strategic planning through better alignment of the CBMT with the priorities outlined in the third CSLP action plan (2011-15); Establish performance contracts between the State and public enterprises following the results of the audit of the State portfolio in order to minimize the risks of budget overruns caused by additional grants to these public entities; Implement the timetable established after the CBMT workshop (2011-13 CBMT, CDMT, and pilot ministries budget program); Improve control over the total payroll and staff management; Harmonize the balance between civil service and MF and implement a computerized system for staff management.
Medium-term Recommendations
Strengthen the capabilities of the National Assembly Finance Committee to analyze the budget and the CBMT and strengthen the technical capabilities of the MF regarding annual and multi-annual budget forecasts; Revise the main legal and regulatory texts governing public finance management (the framework law on finance legislation, general regulation on public accounting, the framework law on the CSLP, and budget nomenclature) to integrate the CBMT approach, the budget program, and classification by program; Improve economic classification and include operational classification in budget documents and not only in the CBMT as is the case at the moment; Develop the technical capabilities of ministries regarding CDMTs and budget programs by providing additional finance and qualified human resources to the programming departments at ministerial level; Strengthen the technical capabilities involved in the choice of investment projects and their assessment. To this end, strengthen the agency for the assessment of projects initiated in 2008 by the President of the Republic, and make its mandate clear, especially in that it must never become involved in the execution of projects; Develop a procedures manual for the CBMT and the budget program; Implement the organizational and institutional audit of the National Statistical Office (ONS) Implement a formal consultation framework to ensure the consistency and validation of sector, financial, economic, and monetary statistical data; Improve the viability of national accounts.
Reform of Budget Execution Monitoring
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Short-term Recommendations
Improve the monitoring of LDF execution by holding a monthly meeting of the entities involved; Limit the use of immediate settlement budget procedures and of improper imprest accounts and availability of funds; Establish an electronic connection between the Treasury and the Central Bank to simplify the payment system. Medium-term Recommendations
Ensure that there is a link between secondary authorizing officers in the regions with the RACHAD system; Complete the computerized RACHAD system by including all budget operations including working balance, expenditure on foreign financing based on projections and ex post situations, a budget reflecting competitive funds, and debt operations; Improve the centralization of resources of the Treasury with the Central Bank And limit project accounts under different administrators; Increase the range of money market tools for raising funds; Complete the transition to Sydonia ++ (Customs revenue); Comply with budget allocations concerning temporary personnel (operational budget).
Cash Management Short-term Recommendations
Improve the centralization of Treasury resources at the Central Bank; Limit separate bank accounts for project management.
Medium-term Recommendations
Increase the range of money market tools for raising funds.
Control and Audits
Short-term Recommendations
Strengthen internal auditing and define the role of the IGE to avoid overlaps with the duties of the Accounting Office; Strengthen the external audit of the Accounting Office by recruiting qualified personnel; Implement the auditing of public enterprises.
Medium-term Recommendations
Publish three-monthly reports on public expenditure execution according to the new operational classification, stressing expenditure aimed at the fight against poverty; Continue to reform the financial audit, promoting a meaningful audit of important
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expenditure, especially procurement; Prepare manuals of auditing standards and strengthen coordination between inspectorates to improve coverage of areas under audit. Publish and distribute reports produced by audit bodies, including the timely publication of the Audit Office’s annual reports and its reports on Budget Review Bills; Strengthen the financial resources of the Accounting Office and recruit additional auditors. Reform of Procurement Procedures Short-term Recommendations
Publish a public procurement plan in advance; Approve and implement the new draft procurement code, which ensures the separation of procurement, audit, and regulation, according to good international practice; Publish and ensure the wide distribution of calls to tender and disclose the procurement results. Public Debt Management Short-term Recommendations
Introduce the latest Web application SYGADE version (version 6.0)8, which, apart from maintenance, will also facilitate the link between the various SYGADE applications. The new functions for the management of securities should enable the eventual registration of those instruments currently jointly managed by the General Directorate of the Treasury, the Public Accounting Office (DGTCP), and the BCM, with a single base regrouping all public debt; Prepare a DeMPA study on the assessment of debt management performance. Medium-term Recommendations
Develop a strategy for medium term debt management.
D. CHALLENGES TO IMPLEMENTATION
1.39 The main challenges to implementation are as follows: Need for strong political will to implement the necessary reforms; Lack of general vision on the reforms and lack of an integrated framework for Civil Service (FP) reforms, with which all donor support must be in agreement; Weakness of capabilities in monitoring and assessing the reforms made or being made; Government instability (frequent changes in the composition of teams lead to delays in the implementation of reform); Weaknesses in human resources at every level.
8 UNCTAD has suggested installing the latest version of SYGADE (version 6.0). This works as a Web application and includes, among other things, the functions required for managing exchangeable loan certificates (treasury bonds, bonds, etc.). UNCTAD’s proposal also includes the acquisition of materials necessary to use SYGADE at the DDE as well as the drafting of a procedures manual for debt management. In a later phase, UNCTAD would be prepared to support the integration of SYGADE into aid management software.
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E. ANALYTICAL GAPS
1.40 The analytical gaps can be summarized as follows:
Detailed analysis of public expenditure to inform allocation decisions and to strengthen alignment of allocations with the CSLP; Analysis of public expenditure and public finance management at local and regional level.
1.41 Detailed analysis of debt management (DeMPA).
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2. CIVIL SERVICE
A. CONTEXT
2.1 The civil service is the State’s main source of support since it groups all of its departments and personnel responsible for ensuring daily contact with the population, which the State supervises, organizes, and provides with benefits in the form of public services. It is also responsible for carrying out national policy choices. As a result, the importance of the civil service is such that any deficiency on its part can lead to dysfunction within the State. Awareness of its strategic role and its indispensable character forms the base for the various reforms the civil service underwent in the 1980s and for the current reflection on how it can adapt to the global environment. This also fully justifies interest in an in-depth reflection on its role given changes in the global environment on the one hand and the ever-increasing needs of users of the civil service on the other.
2.2 Staff management policy is a central and horizontal task within the administrative apparatus. Consequently it is the foundation of any approach to the civil service on a range of issues: recruitment, employment, organization and career development, remuneration, training, job profiles, definitions of duties evaluation of working methods, staff performance, and continuity and improvement in the social dialogue.
2.3 In this context, from the 1970s, the country adopted a State staff management policy. With the advent of structural adjustment programs, this concern became permanent in 1985 as a general reform of the civil service and its environment was implemented. Added to this were a roundtable held on civil service renewal, the development of a civil service modernization strategy, the adoption of a national program of good governance, and the current project for strengthening the capabilities of the public sector. Over the years, however, the situation has not really changed relative to the ambitions set out in the reform programs.
B. MAJOR CONSTRAINTS
2.4 Despite the efforts made in recent years, the civil service currently suffers from operational and organizational dysfunctions in terms of staff management, recruitment and staff remuneration, training, career management, and working conditions. The lack of a personnel planning policy has resulted in a lack of support for staff and of monitoring of the Government's staff needs over the coming years. Mauritania has about the same number of civil servants as Benin despite the fact that the population of the latter is more than twice as large.9 Furthermore, the total salary bill to GDP ratio confirms that there are too many civil servants in Mauritania (about 8.8% in 2007, 7.8% in 2008, and 7.4% in 2009) (Table I.1).10 The management of human resources has also experienced structural problems relating to: i) lack of knowledge among public administration services of legal texts and procedures governing State employees; ii) lack of control over staff managed at the level of each ministry; iii) total lack of control over attendance; iv) instability in personnel responsible for the management of human
9 About 8 million. 10 The standard total salary bill/GDP ratio is a maximum of 7%.
13 resources and their lack of qualifications; and v) the problem of low salaries and its implication for the efficiency of State representatives.
Both Payroll Files Personnel Personnel Personnel but not Personnel Category Payroll Files Files but not Files and Payroll Personnel Payroll Files files Files Civil Servants 26,481 27,332 25,820 1,512 661 Auxiliary Personnel 2,400 2,595 2,321 274 79 Local Contract Staff 1,910 1,962 1,733 229 177 Foreign Contract 19 41 16 25 3 Staff Incumbents 338 690 338 352 0 Sub-total 1 31,148 32,620 30,228 2,392 920 Temporary Staff 7,832 7,832 Others 1,149 1,149 Total 40,129 32,620 30,228 2,392 9,901
2.5 The presence of a parallel civil service distorts formal procedures and civil service control over recruitment on the one hand and the objective of controlling staff and the total wage bill on the other. Furthermore, it has generated unfair access to employment and non- compliance with civil service regulations. The presence of local contract staff, temporary staff, and general contract staff is a problem as these personnel types are not recruited through the normal channels or according to civil service standards but are paid on a permanent basis on the sole basis of certificates of services rendered or of personnel registers. This situation is often brought to light because of the very lack of services, which constitutes a major infringement of the principle of citizens’ equality in public employment. Functional overlapping because of ministerial or sector separation, a lack of clarity in duties and responsibilities, a poor match between profile and position, and a lack of result-centered management must also be corrected.
2.6 The application of General Civil Service Regulations is compromised by informal practices and unclear responsibilities. In-depth reform of the civil service is necessary to avoid generalized mediocrity in the public service and the spread of a feudal mentality in the majority of civil servants.
2.7 Training for State employees is affected by a lack of policy and clear criteria in the selection of beneficiaries. Training, whether for specialization or development, often does not correspond to any need identified at administrative level. Staff members going away for training disturb the operation of the public administration services, particularly when the civil servants and personnel concerned abandon the services they are supposed to ensure at the whim of their own desire for training. This creates a sense of frustration in those conscientious civil servants and other personnel who fulfill their duties and comply with the proper way to to do things. Furthermore, it is detrimental to the existence and role of national training institutions. This situation has led to a lack of revitalization of the National School of Administration (ENA) and informal recourse to institutions abroad. In addition, the situation is a cause of conflict especially
14 when those concerned obtain additional qualifications that the public administration services refuse to take into account when reclassifying units because they do not correspond to real needs.
2.8 Waste and corruption in the civil service is an obstacle to fair access to public services. The lack of a crack-down on corruption and underhand dealings is not due to a lack of appropriate legal or regulatory texts but to the fact that these texts are not applied or because State personnel is not aware of their content or implications. This situation has created an environment that increasingly promotes impunity, irresponsibility, a lack of citizenship, and a generalized abuse of power.
2.9 The entrenchment of these administrative practices demonstrates the need to establish a strategy for protecting and managing the civil service at various levels of public administration. As regards inter-sector coordination, some State sectors are carrying out administrative reform but without involving the structure in charge of the civil service. Under current regulations, draft texts must be submitted for review to the High Council for civil service and administrative reform, which is a civil service consultative body. In practice, this does not always occur particularly where the appointment of civil servants and other personnel is concerned.
2.10 One of the priorities of the President of the Republic’s electoral program is the establishment of a modern civil service. This service must be clearer in its decision making, faster in its operations, more welcoming, and more focused on public satisfaction and on listening to other partners in social and economic life. Implementing ambitious reforms must take account of two factors: the growing demand for public services, and budget constraints. A coherent policy will have to be implemented, supported by civil service reform programs based on realistic objectives and a vision for both the short and medium terms.
C. RECOMMENDATIONS
Short-term Recommendations
2.11 The main objective is to achieve the efficient management of the State’s human resources, which should lead to better performance and motivation. Within this framework, priority should be given to:
Completing the validation of personnel survey results; Implementing General Civil Service Regulations by adopting subsidiary legislation; Organize an audit of the Ministry of the Civil Service to ensure that positions and profiles are compatible; Establishing a more flexible system of human resource management, which should be a results-based system (by auditing the legal references on human resource management) and a performance assessment system, as planned by the General Civil Service Regulations; The revitalization of the National School of Administration, with the aim of meeting the needs of Government in the coming years.
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Medium-term Recommendations
2.12 Once the Government has an adequate number of quality human resources to meet its needs in an incentivized and rewarding environment, the next stage, in the medium term, would be to move to:
Personnel, job, and skills planning within each department, including ending all forms of informal civil service; A review of training programs and their adaptation to current changes and the expectations of Government; A review of public sector functions to identify commercial activities that could be handed over to the private sector.
D. CHALLENGES TO IMPLEMENTATION
2.13 Achieving these short and medium term objectives depends on a combination of constraints and problems. However, taking account of these must not mean that the Government’s ambition for reform will be jeopardized. The main challenges to implementation are the following:
Lack of adequate budget resources for upgrading public personnel’s pay and to implement programs of specialized training; Lack of adequate skills for implementing procedures governing State personnel; Inability to attract quality civil servants; Lack of stability among top civil servants.
E. ANALYTICAL GAPS
2.14 In this area, the main studies carried out in recent years focus on: i) the advantages in kind for State employees (study conducted in 2008); ii) the pension system (study in progress); and iii) an estimate for implementing an integrated management system for State employees (study in progress).
2.15 The priority for the studies to be carried out, based on analytical gaps, are as follows:
Audit of the legal reference code for human resource management: in the context of this study, policy reforms in the management of State employees made in 1993 should be reviewed to adapt its legal framework to socioeconomic changes in the country. This is essential in order to lay the foundation for a consistent and sustainable policy and to correct inadequacies especially as regards the scope of the General Regulations for employees of State institutions. This audit will also need to provide answers to the following issues: age of entry into the civil service, training and probationary periods for State employees, and retirement;
Study on civil service pay: beyond the 2008 study on advantages in kind granted to State employees, the salary scale for State employees must be improved. The constraints of the macroeconomic framework and the requirements of the management of a public
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administrative service based on merit, performance, and return must all be taken into account;
Study on the regularization of temporary State employees: this study takes place in the context of the clean-up of policies on civil service employees, following the 2008 census. It aims to better use the data regarding this category of employees and to propose solutions toward their regularization. It must be based on an analysis of the profiles of these employees in relation to the functional needs of users of public administrative services;
Study on the operational needs of ministries: the General Civil Service Regulations plans for a match between positions and profiles to ensure the proper career management of State employees. However, at present, operational managerial positions are not filled in a transparent way or in compliance with legal texts because of a lack of rationality in structural organization. This study should enable an organizational and operational audit to be carried out based on the relationship between units, profiles, and jobs;
Study on the perceptions of civil service users: in view of the direction being taken by public authorities to introduce ethics into public life, a series of measures are planned to fight corruption and underhand dealings in the civil service and to improve the quality of services provided to users. The identification of problems and deficiencies must therefore first begin with opinion surveys on the various aspects of the relationship between public employees and end users.
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PART II: IMPROVING THE FACTORS OF PRODUCTION: HUMAN CAPITAL
3. EDUCATION
A. CONTEXT
3.1 Mauritanian public authorities have put education at the forefront of their priorities in terms of social progress, access to basic services, and development of human resources. In response to this decision, the departments responsible for education are developing a sector policy aimed at resolving structural problems in the education system with the aim of ensuring a harmonious and sustainable development framework. With this in mind, it is important to review the context of the sector as much in terms of constraints as of intervention policies and strategies.
3.2 In 2000, Mauritania implemented an integrated development strategy for the education sector, with two objectives: i) to support the 1999 reform uniting the system’s two branches; and ii) to provide a harmonious development framework covering all of the sector’s components (early childhood, pre-school and literacy, primary, and secondary education, technical and professional training, higher education). The strategy was made operational through a ten-year program entitled the National Program for the Development of the Education Sector (PNDSE), which consists of two phases. The operational objectives of this program are closely integrated into the internal agenda, especially in terms of education, with the initiative of Education for All (EFA) and the Millennium Development Goals (MDGs). The PNDSE’s first phase (2002-2009) was mainly devoted to: i) implementing the reform program for primary education and prepare its implementation for secondary education; ii) carrying out pilot experiments in the areas of technical and professional training, higher education, literacy, early childhood, and health in schools, followed by evaluations of these experiments; and iii) building an institutional framework and better management capability in the education sector. The resources allocated to the implementation of the first phase were mobilized by the Mauritanian Government and its partners, in particular the World Bank, the French Development Agency (AFD), the Islamic Development Bank (IsDB), the African Development Bank (AfDB), the United Nations Children's Fund (UNICEF), the World Food Program (WFP), the United Nations Educational, Scientific, and Cultural Organization (UNESCO), the United Nations Population Fund (UNFPA) and some bilateral partners such as French Foreign Aid (CF) and Spanish Foreign Aid (CE).
3.3 Generally, the resources mobilized during the 2002-2009 period as part of PNDSE implementation allowed for the financing of: i) construction work to extend the education system’s accommodation capacity and to improve the working conditions of its management; ii) the purchase of equipment and logistical resources for the benefit of national and regional education authorities; iii) the training of teaching and supervisory staff; iv) the overhaul of teaching programs at every level; v) the purchase of textbooks and teaching tools at every level; vi) some priority activities with support funds; and vii) studies, research, and institutional reforms required for developing the sector.
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3.4 Examining the main performance indicators for the education sector reveals that the efforts made during the first phase of PNDSE have in general made important progress possible in terms of access to and equity in primary education and to a lesser extent in secondary and higher education. It also shows that given current trends, the Millennium Development Goals (MDGs) will be achieved in the field of education. However, it also shows that the quality of the educational system as reflected by its internal and external efficiency is relatively poor and even, more importantly, in a state of gradual degradation.
3.5 In pre-school education, the rate of access of young children to the various kinds of care is currently estimated at 9%, with strong participation by religious schools. In primary education, the number of students has significantly increased, rising from 360,677 in 2001 to 512,998 in 2009 (+42% over the period). Similarly, the number of schools rose from 2,980 in 2001 to 3,793 in 2009. Private education rose from 3% in 2001 to 10% in 2009. The enrollment rate (TBS) in primary education was 99% in 2009 (as against 87.5% in 2001). As regards equality, girls represented 50.4% of enrollment in primary education in 2009. Disparities between wilayas have fallen and all wilayas now record a TBS of at least 80%. However, the rate of retention remains relatively poor, going from 45% in 2002 to 61% in 2009, and quality is low such that knowledge acquisition rates are assessed at 40% and the rate of success in examinations for entry into the first year of secondary education fell from 50% in 2002 to 33% in 2009.
3.6 In secondary education, numbers rose from 76,830 in 2000-2001 to 104,682 in 2007- 2008, an average annual growth rate of 4%. The number of new entrants into the first year of secondary education over that period varies from 17,000 to 19,000 per year, or substantially less than the PNDSE target, which is 35,000 per year. The secondary education TBS went from 18% in 2002 to 25% in 2009. In terms of equity, girls’ participation rate in secondary education rose from 43% in 2001-2002 to 45% in 2008-2009. As regards quality, the results of the latest national examination confirmed the poor level of knowledge acquisition. The success rate for the Brevet (junior high school diploma) is extremely low at just 18%, with only 2.5% scoring 50% or higher. Similarly, the success rate at the Baccalauréat (high school diploma) remains low (17%) despite improvement over the past two years. The average repetition rate over the cycle fell from 16% in 2001 to 10% in 2009. However, the proportion of students enrolled in science fell from 74% to 62% from 2001 to 2009 while the PNDSE target for this indicator is 75% by 2010.
3.7 As regards professional training, enrollment rose from 2,700 in 2002 to 4,200 in 2009. In higher education, the number of students climbed to about 20,000 in 2009, 30% of whom are studying abroad (50% on bursaries). The annual flow of graduates from qualifying courses was in the order of 1,500 in 2009. The job market insertion rate for those graduating from this type of education was estimated at 51% in 2005. Despite a significant increase in numbers, higher education in Mauritania suffers from poor internal and external efficiency. Studies monitoring successful insertion of recent graduates into the job market show that it is low, with an average insertion rate for the 2003-2004 cohort 18 months after graduation of about 14% (14.7% for those leaving university and 7.5% for those leaving the Institute for Advanced Islamic Studies and Research (ISERI). These studies highlight a quantitative and qualitative imbalance between the needs of the job market and the output of higher education.
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3.8 As regards literacy and pre-school, the 2008 Longitudinal Study of Living Conditions (HLCS) shows that the literacy rate was at 61.5% in 2008 as against 57.5% in 2004 for those aged 15 or over. However, this overall rate conceals significant disparities between the sexes and socioeconomic groups. Thus, women are more illiterate than men regardless of socioeconomic or age group. In fact, the literacy rate for men is 70.3% as against 54.4% for women and 73.3% in urban areas as against 50.3% in rural areas.
3.9 As regards pre-school, the available data are inadequate for the purpose of making a detailed diagnosis. Results of the survey on pre-school institutions, which is currently being carried out, should provide data that will clarify this issue.
B. MAIN CONSTRAINTS
3.10 The main weaknesses of the education sector raised above, especially its poor performance in terms of retention, quality, and efficiency, result in large part from internal structural constraints. Others are linked to its exogenous environment.
3.11 At the pre-school level, the main constraints are linked to: i) the poor accommodation capacity of current structures; ii) the unplanned introduction of private kindergartens; iii) a lack of qualifications among supervisors of pre-school structures; vi) the lack of a uniform awareness program adapted to the Mauritanian child; v) inappropriate infrastructure and inadequate teaching tools; and iv) a lack of involvement of local communities in student support and pre- school education.
3.12 In primary and secondary education, the main constraints are both internal and external. Internal constraints are primarily linked to:
Inefficiency in management and direction, which leads to poor management of the school map (76.2% of school buildings are incomplete, of which 10% have only one classroom, and 25 secondary schools have fewer than 100 students), poor management of teachers (the distribution between wilayas and between schools within one wilaya is inequitable), non-compliance with the annual school calendar, and inefficiency in close supervision (lack of an inspectorate for secondary education and inadequacy in both quantity and quality among school inspectors for primary education); Shortage of teachers meeting the requirements of the 1999 reform: here, the problem lies in the fact that over 80% of teachers in primary education and over 60% of science teachers in secondary education are trained in Arabic. The recruitment pool for future teachers is very poor in French-speaking, bilingual, or even potentially bilingual applicants. Initial training in Primary Teacher Training Institutes (ENI) and to a lesser extent in Advanced Primary Teacher Training Institutes (ENS) is ineffective in preparing teachers to respond to the needs of the reform, and experiments in terms of linguistic retraining have not provided the expected results; Inappropriate teaching conditions, which are characterized by low quality infrastructure, with 55% of classrooms in primary education in poor condition, with over 51% of students in primary education sitting on the floor and almost all schools having no
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drinking water, enclosures, latrines, or school furniture; Poor motivation among teachers, which results in particular from low levels of pay and training; Discrepancy between the various branches of secondary education and higher education on the one hand and the needs of the economy on the other, especially as regards the informal and rural economy; Dominance of theoretical education and inadequate use of experiments in secondary education. 3.13 External constraints are linked to: i) lack of an overall national development plan, which prevents the rationalization of the school map and the supply structure; and ii) low level of involvement and commitment among key partners.
3.14 In higher education, the performance recorded so far is highly unsatisfactory despite considerable changes in the institutional framework.
(i) Human resources are inadequate especially because of a lack of in-service training that would be designed to improve the teaching skills of research and teaching staff, the inadequate supply of recruits to compensate for supervisory shortfalls linked to staff increases and LMD reform, and inadequate incentives to innovate; (ii) Inadequate infrastructure: The quality of teaching and research is affected by a lack of suitable infrastructure, more particularly a lack of an integrated campus for the University of Nouakchott. Current university buildings are characterized by: i) the dispersal of faculties throughout the city; ii) inadequate buildings; iii) laboratories with very limited capacity; iv) the absence of a workspace for developing scientific research; v) buildings that do not meet security requirements; vi) a total lack of sociocultural infrastructure; and vii) lack of space; (iii)There are recognized inadequacies in the management and direction of the system. This is principally due to central administrative structures, which like the institutions themselves do not have access to reliable and systematic data on the various management parameters that should enable them to plan, manage, and administer higher education. As regards management, the central structures and the institutions themselves including the University of Nouakchott do not yet have operational computerized applications enabling them to manage students’ progress, budgets, or staff; (iv) The relevance of training and the quality of apprenticeships are both poor. This is due not only to problems with infrastructure and human resources but also to: i) the predominance of theoretical programs, which are limited to the cognitive command of disciplines at the expense of the acquisition of expertise, skills, and/or aptitudes; ii) the inadequacy of suitable teaching support (textbooks, laboratories, etc.) and technical staff; and iii) limited use of Information and Communications Technology (ICT); (v) Scientific research barely exists. The current research system in general suffers from several handicaps: the poor level of qualification of researchers (fewer than 20% have a PhD); i) the uncertainty of financial resources, which rely on programs financed by donors; ii) inefficient organization; and iii) the poor quality of equipment. Opinion is
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usually highly critical of university research in particular, highlighting the lack of output. This is essentially due to inadequate resources (laboratories, equipment, documentation, and funding), lack of a clear national policy, lack of organization and structure in research teams, and a total lack of post-graduate training. As a result, thousands of graduates are unemployed and the country's economy is sorely lacking in highly qualified executives; 3.15 In Islamic education, the main problems identified are linked to: i) lack of reliable and exhaustive data on this type of education; ii) lack of a legal framework for Islamic education; iii) lack of a coherent link between Islamic and formal education; (iv) lack of opportunities in Islamic education for programs in languages (French and English) and science (mathematics, biology, etc.).
3.16 In terms of literacy, the system suffers essentially from: i) lack of overall vision and long-term strategy; ii) the inadequacy of information and monitoring systems; iii) dispersal of the effort toward literacy and lack of coordination between the different players in the field; iv) lack of experience among civil society actors; v) poor match between programs and the needs of learners and the specificity of target areas; vi) lack of post-literacy programs; vii) inadequacy in both the quality and quantity of textbooks and teacher's manuals; and viii) the poor managerial capability of the structures responsible for the management and direction of literacy.
C. RECOMMENDATIONS
3.17 To deal with structural dysfunction, it is essential to implement in both the short and medium terms measures to guarantee acceptable teaching conditions and to lay the foundations for the efficient management and direction of the system. These measures will need to be part of a more general strategy that would enable structural problems in the system to be resolved. From this perspective, recommendations fall into two categories: general recommendations and specific recommendations for each teaching level.
3.18 General recommendations deal with preparation tools for policy and for monitoring implementation. In particular, they involve the following:
Completion of the RESEN, the CDMT, and the simulation model, which will enable the short-, medium-, and long-term framing of the system; The development and adoption of a sector policy document; The development of a short-term action plan; The establishment of a Higher Council for Education and Training responsible for coordinating and monitoring the implementation of the sector policy. Short-term Recommendations
3.19 As regards literacy education, it is recommended that: i) the national strategy for the fight against illiteracy be reviewed in light of the results of the latest survey carried out with UNESCO support as well as the education policy document, with a strong focus on functional literacy; ii) an action plan aiming to implement this strategy be established; and iii) the legal and
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institutional framework for the fight against illiteracy be strengthened, with the strong involvement of civil society and village communities.
3.20 As regards Islamic education, it is urgent to: i) improve the information system in this sub-sector; ii) introduce links between Islamic education and the formal system; iii) develop a legal framework for the protection of children; and iv) establish a support fund for promoting the contribution of Islamic education to the provision of primary education for all.
3.21 As regards pre-school, priority should be given to consolidating and strengthening expertise in terms of training teacher trainers.
3.22 As regards primary education, in order to improve quality, significant effort should urgently focus on the following:
Reform of the system for initial and in-service training of teachers and school inspectors by: i) completing the restructuring of teacher training institutes by creating a qualified body of trainers using international expertise in the short term and reviewing and introducing training programs; ii) establishing an in-service training program aimed at training all current teachers in teaching methods in mathematics and languages, especially French, and adopting new and more efficient approaches (action training, distance learning, work experience training, etc.); and iii) revitalizing close supervision and the use of systematic work records by school inspectors during in-service training; Restructuring current educational supply and the rationalization of the school map through: i) strict compliance with appropriate conditions for opening new schools; ii) guidelines for construction in the completion of unfinished schools; iii) launching a comprehensive program of renovation and equipment for schools through the rehabilitation of all classrooms currently in poor condition, the closure of all uncompleted schools, and the provision of latrines and drinking water; and iv) equipping all schools with desks, seats, and teaching tools; Strict compliance with the school calendar by: i) establishing a system for monitoring absenteeism among teachers and students; ii) improving teachers’ working conditions by introducing additional compensation for teacher attendance and performance; and iii) reviewing the regulations governing the school calendar to make it more flexible and better adapted to the living conditions of students and teachers. 3.23 As regards secondary education, the recommendation is to focus efforts on the following:
Restructuring the secondary education program to diversify branches, strengthen the teaching of science and scientific experiments, and regulate the flow from primary to secondary education with: i) a review of all textbooks; ii) an upgrade in school equipment; and iii) a review of all programs; Restructuring basic training for teachers and implementing an effective program for the linguistic retraining of teachers of scientific disciplines currently taught in Arabic; Creating a new code for secondary school inspectors as well as a new department for school inspector training in the Advanced Teacher Training Institute (ENS) with the aim
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of decentralizing the body of inspectors to ensure efficient close supervision. 3.24 For higher education, priority measures proposed are as follows:
Improving the institutional framework by adopting a draft law on the Organization of Higher Education and Scientific Research intended to replace Decree No. 2006-007; Reviewing training to respond to the needs of national development through: i) the implementation of professional training related to needs; ii) flexible and differentiated training courses; iii) an in-service training system offering qualifications and diplomas; and iv) the development of distance learning.
Medium-term Recommendations
3.25 As regards pre-school, priority should be given to improving access to and quality of services supplied by the pre-school structure for children from poor backgrounds by: i) strengthening the capabilities of actors in religious pre-school education; and ii) implementing awareness programs for pre-school in rural and peri-urban areas.
3.26 As regards literacy, it is recommended that post-literacy programs be developed by: i) creating a literate environment; and ii) supporting the insertion of the newly literate into society.
3.27 As regards primary education, it is recommended that:
New types of apprenticeship be established to provide additional opportunities for unschooled students and dropouts from disadvantaged backgrounds by introducing informal, short-cycle (two to three years) primary education, which would allow these students to re-integrate into formal education.
3.28 As regards secondary education, it is recommended that efforts be centered on:
The creation of high schools (lycées) of excellence (four to five schools nationally), with quality equipment and skilled human resources as well as a clear mechanism for student selection that would guarantee transparency and efficiency.
3.29 As regards higher education, priority measures are as follows:
Establishing contracts between the State and educational institutions, with performance contracts defining the rights and responsibilities of both parties; Construction of a modern university campus; Application of the LMD reform and the modernization of the system by establishing new quality standards for teaching and supervision, equipment, and access to scientific and technical information; Organizing research around structured multi-disciplinary research teams combining researchers working in research centers, teaching researchers, and students in higher education institutions;
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Establishing a type of competitive financing equal to the challenge by sustaining and strengthening the National Scientific Research Support Fund (FNARS) and by diversifying its areas of involvement.
D. CHALLENGES TO IMPLEMENTATION
3.30 The main challenges to the implementation of short- and medium-term objectives are linked to:
Lack of adequate financial resources in the short and medium terms as a result of a lack of a CDMT for the education sector; Lack of a clear vision of the structure of demand in the labor market; An inadequate body of teacher trainers.
E. ANALYTICAL GAPS
3.31 To facilitate the implementation of the proposed recommendations, it will be necessary to initiate in the short term a series of studies to analyze some poorly or inadequately understood areas. The main studies proposed should relate to the following:
Factors determining low retention and low quality in primary education; The restructuring of secondary education with a view to diversifying supply and improving its relevance. Establishing a fund as well as procedures for the renovation, equipping, and maintenance of school infrastructure especially for primary education.
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2. EMPLOYMENT
A. CONTEXT
4.1 Information on factors that help describe the employment situation and assess its social and economic weight is largely inadequate. The task is therefore to obtain data and identify essential factors that determine this situation. Mauritanian society has undergone profound changes since the 1960s. The population has tripled, adopted a largely sedentary way of life, and experienced a very high rate of urbanization (over 64% of the population was living in urban areas in 2005 as against barely 5.8% in 1960). The combined effect of population growth and urbanization exerted enormous pressure on employment in terms of both growth and diversification. In fact, 65% of the population is under 25 years of age, with about 600,000 Mauritanians falling in the 15-25 age group. These young people are already in the job market or will join it in the near future.
4.2 The positive economic growth recorded in Mauritania has not helped improve the employment situation or reduce unemployment. The national economy could not absorb the considerable expansion in the supply of labor. In spite of an average GDP growth rate of 4% over the 2004-2008 period, the unemployment rate stood at 31.2% in 2008, a percentage barely below 2004 estimates (32.5%). According to the Longitudinal Survey of Living Conditions (HLCS) conducted in 2008, unemployment affected mainly young people and women. The male/female ratio of unemployment is 0.54, with 66.7% of active women aged between 15 and 24 and 44.1% of men within the same range unemployed. According to the 2008 HLCS, the unemployment rate barely varies across places of residence, reaching 31.3% in urban areas as against 31.1% in rural areas. Unemployment is also rampant among those young people who are largely illiterate and without any qualifications or professional experience. All of these factors explain to a large extent the high level of monetary poverty, which dropped by 4.7 percentage points between 2004 and 2008 from 46.7% to 42% of the Mauritanian population according to results from the same survey.
4.3 The capacity of the Mauritanian economy to create jobs is inadequate to absorbing the additional demand, which is estimated at 30,000 jobs a year as against about 16,000 jobs created. Oil production, launched in early 2006 and which raised real GDP to 11.4%, was not sustained for long enough to have tangible effects on job creation. Moreover, the demand for jobs comes mainly from people who are uneducated and unskilled. The formal sector of Mauritania’s economy is not diversified and is unable to create a significant number of jobs due to the following structural problems: i) difficulty in accessing financing as banks prefer funding activities in the services and trading sectors to the detriment of productive activities; ii) lack of professional qualifications; iii) poor availability and high cost of factors of production (the cost of fuel and water as well as that of labor and capital is higher than in other countries in the region); and iv) taxes are high compared to neighboring countries, which are thus better placed to attract foreign direct investment (FDI). This explains why the bulk of jobs created in the country’s economy (about 80%) is in the informal sector.
4.4 Results of the HLCS conducted in 2008 by the National Statistical Service show that
26 the employment situation is a serious concern. The rate of activity within the active population (15-65) was 52.4% of the country’s population in 2008 as against 54.9% in 2004, with significant disparities between men (76.6%) and women (43.4%). The working population operates mainly in the informal sector, known for the precarious and fragile nature of the employment if offers. A review of the level of education and qualifications showed that literate adults aged 15 or above accounted for 61.5% of the active population in 2008 as against 57.5% in 2004. Yet this rate masks disparities in terms of gender (70.3% among men as against 54.4% among women) and place of residence (73.3% in urban areas as against 50.3% in rural areas).
4.5 The predominance of underemployment and precarious employment are the main characteristics of the job market in Mauritania. According to data from the 2008 HLCS, 18% of the working population is underemployed. Underemployment affects more men (14.2%) than women (12.4%) and is lower in urban areas (13.1%) than in rural areas (15%).
4.6 At the institutional level, the recently established Ministry of Employment and Professional Training, which brings together all public institutions responsible for employment, aims to ensure better coordination across government actions intended to deal with the various constraints in this sector.
4.7 The ultimate solution to the employment issue, which involves all aspects of economic life and public intervention, is the provision of jobs. All economic sectors are concerned and this is reflected in their specific strategies, policies, and programs. The diversity of factors, influences, policies, and actors explains the highly cross-sectorial nature of the employment issue. This also means that any far reaching action in favor of employment must take various forms. These could be grouped into three concentric circles:
A hard core comprising actions with the sole objective of direct job creation. This inner circle includes initiatives and programs aimed at promoting labor intensive work (LIW) or multiple forms of individual job placement. To a degree, this is the circle where stopgap initiatives belong since they are based on short- and medium-term measures and most often on voluntaristic arrangements; A second circle comprising actions that constitute a determining lever in favor of employment. This covers technical and professional training and the promotion of a wide range of private employment-generating initiatives. This circle represents actions that are medium- and long-term and are crucial to any growth in employment; The third circle comprises major cross-sectorial national policies that contribute to growth as well as sectorial policies (agriculture, fishing, etc.). These policies are not neutral in their objectives and approach but instead must take into consideration the issue of employment. This third circle is the most complex and most difficult to grasp from an employment-centered perspective.
B. MAJOR CONSTRAINTS
4.8 Overall, the Mauritanian labor market does not yet function under conditions of balance between supply and demand for labor. The lack of a real unified and regulatory labor
27 market is reflected in, among others, the exclusion of a section of the active population from employment, especially young people, as well as in serious imbalances: i) Imbalance between demand and supply for labor. The formal sector does not generate many jobs and unemployment is growing in this sector. The informal sector is creating jobs but these are not equal to the needs. Moreover, the proliferation of microenterprises this sector consists of has led to lower incomes and a growing lack of job security. Although the rural sector provides employment for a majority of the population, these jobs are poorly remunerated and are considered disguised unemployment; ii) Unequal distribution of employment among the major economic sectors. The decline of the secondary sector raises serious problems because it calls into question the overall economic trends in which it is an essential factor. The over-expansion of the trading sector, particularly the informal sector, reflects the distress experienced by a workforce searching for an income to survive on more than a desire for economic development; iii) Imbalance between generations. Unemployment, underemployment, and employment insecurity affect mostly young people, whether qualified or not; iv) Inequality between men and women. Unemployment, underemployment, and job insecurity affect more women than men; and v) Imbalance between areas with high concentrations of the labor force such as Nouakchott and areas with high rural- urban migration and emigration, where the absence of an active population is a severe constraint on local development.
4.9 The national economy, which is under-diversified and dominated by the informal sector, does not offer enough opportunities. The primary sector, which until recently employed the bulk of the active population, is declining due to drought, rural-urban migration, and rapid change in the way of life. The manufacturing sector employs less than 3,000 people and it faces many difficulties resulting from globalization. In addition, the lack of adaption of training to the needs of the market constitutes a major obstacle. This is partly attributed to the educational system but also to technical and professional training. The educational system turns over to the market a growing number of people who are ill equipped to serve the economy and simply go on to swell the ranks of the unemployed. Today, the country is witnessing the poor orientation of students from the very beginning, poor quality of teaching, and high dropout rates.
4.10 Mindsets did not evolve along with the country’s development, which has been marked by a growingly sedentary life style and accelerated urbanization. Work, especially manual work, should be at the heart of the social and cultural values of the country. Such an approach requires the involvement and mobilization of all civil society actors to change attitudes and sensitize the population to this mindset.
4.11 The national economy requires a large number of artisans, factory hands, technicians, and other specialists in areas as varied as building and public works, tourism, small and medium processing industries, small-scale fishing, and the agro-pastoral economy. The unemployment rate will remain high as long as: i) mindsets do not change radically, and ii) job creation on a massive scale is not generated for these sections of the population.
4.12 Generally, public policies have not addressed employment as a priority development objective. The liberal option adopted by previous governments focused solely on economic growth as a means of generating jobs. However, experience has shown that even in times of relatively high growth, unemployment can rise. Indeed, although the annual economic growth
28 rate was on the average close to 4% from 2000 to 2004, unemployment rose from 29 to 32.5%. Policy decisions in the fisheries sector, for example, have adversely affected employment.
4.13 Structured social dialogue is non-existent even though a formal framework bringing together all social partners (state, employers, and labor unions) is in place. This is due to the absence of of a culture of dialogue and of appropriate mechanisms and tools. The state/private sector consultation framework set up by the government is not operational, and dialogue between state, employers, and labor unions remains weak.
4.14 Efforts made in the area of employment are scattered across several ministerial departments. This often makes strategies aimed at reducing unemployment invisible and/or incoherent. The mobilization of funds for employment programs is weak. Limited planning and coordination of interventions leads to the dissipation of efforts and creates the impression that interventions are few and far between. There is also a lack of complementarity, consultation, and coordination among public institutions and structures in charge of employment and labor. In addition, there is no information system on the job market, and the capacity to manage human resources is limited at the level of businesses. Finally, the human and material capacity of public institutions in charge of employment policy remains weak.
4.15 As is the case in most countries today, the issue of employment in Mauritania is linked to that of migration. The country is not only a source but also a destination and transit zone for migrants. As a destination, it receives migrants from neighboring countries in search of jobs. Migrants in transit in Mauritania are also to an extent work-related migrants. In fact, during their stay in the country, they are compelled to find an income-generating activity in order to finance the journey to their final destination. Finally, Mauritanian migrants established abroad can be of benefit to the local job market. Through their regular remittances and the skills they acquired abroad, they can meaningfully support development projects that can give young people the motivation to remain in their country. In view of all these reasons, migration has become an important issue for Mauritania, which needs to integrate it into its employment strategy.
C. RECOMMENDATIONS
4.16 Recommended activities are described below.
Short-term Recommendations
Revive the search and placement mechanism for job seekers. To achieve this objective, actions will focus on: i) developing a system that will help compile the needs of businesses and the profiles of job seekers; ii) organizing the employment services of ANAPEJ; and iii) legalizing private employment agencies.
Promote Small and Medium Enterprises (SMEs) and microfinance. This objective, which is in line with the implementation of the national strategy on microfinance, targets the following priority actions: i) improving the overall environment and support for the establishment of SMEs; ii) setting up a financing system suitable for the SME sector; and iii) developing technologies and strengthening the LIW approach.
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Medium-term Recommendations
Design and implement public programs for job creation. In this regard, the following measures should be taken: i) pursue and strengthen support to cooperatives and economic interest groups and programs; ii) support the development of public infrastructure aimed at employment generation; and iii) design and implement programs aimed to create jobs in the hinterland (development of at the local community level as well as in the farming and livestock sectors).
D. CHALLENGES TO IMPLEMENTATION
4.17 The major challenges that need to be addressed in order to promote employment are:
Weaknesses in the institutional and policy framework on employment including an information system on the job market; Lack of employable skills among job seekers; Weak economic organization of job seekers, especially young people, and inadequate knowledge about their ability to set up and manage a business; Lack of promotion of development at the local level, which offers fertile ground for job creation through the adoption of labor intensive techniques; and Entrepreneurs’ limited access to credit for building enterprises and acquire production and marketing tools.
E. ANALYTICAL GAPS
4.18 The analytical gaps needing to be filled in future actions require a series of studies, covering in particular the following issues:
A typology of job offers in the various sectors of activity; A mechanism for financing employment; Personnel needs in the job market; Causes of migration among young people; The labor market; The informal sector.
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5. PROFESSIONAL TRAINING
A. CONTEXT
5.1 Technical and Professional Training (TPT) remains undeveloped in the country. There are 24 public training institutions operating under six ministerial departments, with 18 of these institutions placed under the Ministry of Employment and Professional Training. In 2009, they institutions enrolled 4,200 trainees, with 3,811 (90.73%) pursuing certificate courses and 389 (9.26%) taking courses leading to a professional qualification. Among those taking certificate courses, 57.01% studied at unskilled and semi-skilled levels (Professional Studies Diploma – BEP, and Professional Aptitude Certificate – CAP), 38.99% at technical level (Technical Diploma – BT, and Technical Baccalauréat – BAC-T), and 3.98% at senior technical level (Advanced Technical Diploma – BTS). The number of trainees undergoing certificate courses who graduate each year is about 1,500. Of this number, almost 70% are unskilled or semi-skilled, 27% are technicians, and only 3% are senior technicians.
5.2 In 2008, professional training was provided by 348 instructors, all of them Mauritanians, with 232 in Technical and Professional Training High Schools (LFTP), 108 in Professional and Technical Training Centers (CFPP), and eight in Advanced Technical Training Centers (CSET). In addition to these public institutions, there are 30 private institutions providing licensed professional courses. These private training centers mainly focus on the tertiary sector and offer about 1,200 places. The State does not control training programs in these institutions and certificates awarded are not recognized.
5.3 During the 2000-2009 decade, the TPT system benefitted mostly from investments planned under the PNDSE framework. Despite the limited resources actually allocated to this sub-sector (about USD 12 million over a ten-year period), significant results have been achieved. The strategy for this component of PNDSE aimed at making training responsive to the needs of businesses. In this regard, a qualified workforce was trained through refresher courses. This objective was divided into three major areas: i) improving demand-driven technical and professional training; ii) improving the quality of training; and iii) diversifying training options.
B. MAJOR CONSTRAINTS
5.4 Despite the major achievements recorded during the first phase of the program, the training system continues to face serious shortcomings.
5.5 With regard to quantity, the mechanism remains inadequate. This is the case as regards economic demand, where the most important components, namely the rural economy and the informal sector, are barely taken into account in training options. This is also the case as regards related social demand as many young people leave school prematurely and the level of qualification of many unemployed people is very low.
5.6 On the qualitative front, various sectorial studies conducted under PNDSE show that the quality of training is not highly rated in professional circles. Although successive
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annual recruitment drives aimed at both permanent and contractual workers helped in satisfying quantitatively most human resource needs, a serious qualitative deficit has been observed in the training of university graduates and trainers. Major issues arising from the analysis of the human resource situation in the training sector are:
The varying nature of profiles and qualification levels of trainers; Low levels of professionalization; Lack of a permanent mechanism for initial training as well as technical and educational upgrading; Lack of motivation and ill-adapted management approaches. 5.7 Aside institutions that benefitted from support under the first phase of PNDSE, most training structures suffer from the state of disrepair and inappropriateness of their equipment and premises. This problem is aggravated by the lack of a well-thought out and stable policy for maintaining and renewing infrastructure. In this regard, the situation in regional training centers, which were created under exceptional circumstances, is even more alarming than that of technical and professional training schools.
5.8 As regards programs and tools, a majority of institutions continue to offer training courses that are not standardized and that do not meet required quality standards. Young people do not find technical and professional training attractive, nor do entry requirements help in addressing gaps in the educational system as there are no appropriate mechanisms for providing information and guidance. The 20 new programs established recently using a skills- based approach did not yield the expected cumulative effects due to: i) obstacles to their establishment especially in terms human resources; ii) level of enrollment of students; and iii) resistance to change. This situation is worsened by the complete lack of teaching aids as well as by working conditions that do not allow the teaching personnel to have access to support resources, especially new ICT. Experience in this area is too limited (as in the case of setting up a competence-based approach (CBA) at LFTP level) or too recent (as in the case of reforms in CAP programs in six pilot CFPPs) to have any significant impact on quality indicators for these institutions. In addition, there are also lapses in the mode of monitoring and evaluation and certification.
5.9 As regarding links to employment, steps have been taken to improve the relevance of training programs and to clarify the skills requirements of the productive sector. However, the information system on the needs of the job market remains fragile and partnership mechanisms with the private sector are not developed.
5.10 Business involvement in the new modes of training remains below expectations. Similarly, arrangements aimed at increasing the contribution by businesses to the funding of training remains intermittent and unconvincing. As a result, the TPT system is not tailored to the need of businesses, which find it difficult to understand the value of certificates and related levels of qualification.
5.11 The external effectiveness of the training system will depend on the integration of placement mechanisms that will ensure support for graduates on the job market. In a
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predominantly informal economy, which does not generate enough structured employment, the role of mechanisms that will boost the job market is crucial.
5.12 As regards in-service training, which is one of the important factors linking TPT to the needs of the economy, the sector has not yet gained the required recognition in the business community. Training institutions are not adequately equipped. The autonomous fund set up to promote technical and professional training faces constraints, especially the non- transfer of the apprenticeship tax, which is affecting its sustainability as well as limiting its funding.
5.13 With regard to management, there is a lack of coordination between the department responsible for TPT policy and other components of the system that fall under the purview of other ministries. Not all stakeholders are sufficiently involved in developing a national policy or a strategic vision linked to the social and economic development of the country. Development projects, which remain the engine of growth, are designed without taking into account the training dimension even though it is essential that these projects have an impact on the population.
5.14 It is difficult to assess the efficiency and output of these structures due to a lack of annual monitoring and evaluation and of results-based management. Mechanisms for funding the sector are ill-adapted and financing efforts by the State remain far below real needs.
C. RECOMMENDATIONS
Short-term Recommendations
5.15 Actions in this field will aim at supporting the Ministry of Employment and Professional Training in its role of driving the country’s strategy in the sector, reforming its management methods, and building up its capacity in planning, management, and monitoring and evaluation. These actions will seek to:
Improve the management of the TPT system by:
Reorganizing the management approach in order to ensure coherence in policies and improve its efficiency and relevance to the job market through: i) better definition of roles and sharing of responsibilities among the various stakeholders; and ii) fair and rational allocation of resources; Mobilizing financial resources through: i) annual investment budgets; and ii) targeted allocation of the apprenticeship tax; Adapting training courses and modes of certification to the educational system and the job market; Instituting a management and human resource development system that will ensure that promotion is based on performance.
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Improve governance of the TPT system by:
Building up management capacity centrally through the introduction of a qualitative and results-based management approach at all levels; Improving management in training institutions (procedures, standards, norms, resources, etc); Instituting an infrastructure maintenance and renewal policy.
Improve the quality of training by:
Establishing training structures for trainers and personnel responsible for developing, implementing, and supervising annual training plans; Introducing and upgrading programs through a skills-based approach, developing teaching aids, and strengthening the qualitative approach within training institutions.
Expand and diversify training opportunities within the system by:
Rationalizing available opportunities through the renewal of equipment and the rehabilitation of buildings; Establishing training centers, taking into account the economic realities of the regions, and including a model center for agricultural and rural economy employment; Making arrangements for a range of short training courses (mobile units, partnership with development projects, apprenticeships, etc); Encouraging private training opportunities.
Improve the external effectiveness of the system and its linkage to the economy by:
Sustaining the information system on job market needs and harmonizing it with other systems within the sector (such as the ANAPEJ database); Transforming the TPT support fund into an autonomous institution in order to: i) boost its actions; ii) sustain its resources through the transfer of the apprenticeship tax; and iii) entrust it with the mandate to manage investments in professional training.
Medium-term Recommendations
Extension and diversification of training offers within the system
Establish three new centers for public works and construction, ICT, and the hospitality and tourism industry; Strengthen national professional training offers by targeting women’s needs and putting in place systems that take their specificities into account; Establish a broad-based apprenticeship plan targeted at young school dropouts.
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Improvements of the external efficiency of the system and its linkage to the economy
Develop support and assistance mechanisms for the integration of graduates from TPT institutions into the world of work; Consolidate the graduate monitoring system, which remains at an embryonic stage, and extend it to an information and data system on public and private TPTs; Design and implement a real information and communication strategy for all stakeholders and beneficiaries of the training system; Establish consultation bodies consisting of professionals at central and regional levels.
F. CHALLENGES TO IMPLEMENTATION
5.16 The major challenges facing the professional training system stem from the following issues:
The difficulty in reconciling a major social need with uncontrolled economic demand. As tens of thousands of young people continue to exit the educational system to become potential candidates for professional training, it is appropriate to prepare them for social and professional integration. Yet the job market is not offering enough opportunities in either the informal or the formal sector; Human resources: Diversity across sectors and the numbers that need to be prepared for integration will create substantial demand for trainers. This demand can only be met by developing mechanisms aimed at involving professionals from industry in the provision of training; Financing: The expansion of the training system to meet economic and social demand will require substantial financial resources. To sustain these investments, there will be a need for innovation in training methods and the institution of flexible training arrangements that are less costly and capable of accommodating significant numbers of trainees; Inter-departmental coordination: The multiplicity of players involved in professional training calls for a coordination mechanism that will guarantee coherent policies and the rationalization of resources mobilized; Modes of training: The adaptation of training to the qualitative and quantitative needs of businesses will require their involvement in the implementation of training initiatives. This involvement will be difficult to achieve in an economy dominated by the informal sector.
G. ANALYTICAL GAPS
5.17 Under the first phase of PNDSE, several important studies were conducted and these have generated a wealth of information required for planning in the subsector. At the institutional level, these studies included the development of a conceptual framework for training, new methods of training, a system of reference for the introduction of a qualitative
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approach, a nomenclature for training sectors, a framework for certificates, and the integration of young school dropouts. As regards training needs in various sectors, the studies covered agro- pastoral activities, public works and construction, manufacturing, mining, the hospitality and tourism subsector, four informal subsectors in urban areas, by-products of livestock farming, dressmaking and garments, motor vehicle maintenance, refrigeration and air-conditioning, ICT, and the petroleum sector.
5.18 The analytical gaps that need to be filled require a series of studies, which should focus primarily on:
The informal sector; The design of a mass training system (see CMDT tools).
5.19 In addition to these specific studies, the development of a training system will create ongoing demand for training programs as well the production of teaching aids.
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6. LABOR REGULATIONS AND SOCIAL WELFARE
A. CONTEXT
6.1The labor and social welfare sector is an important link in the field of reforms to be undertaken in order to lay the foundations for sustainable economic and social development. Hence, there is a need to consider the objectives of labor administration services and their powers and responsibilities in order to consolidate and facilitate social dialogue and to support the reforms to be implemented in the field of labor in the context of economic liberalization.
6.2 The social security system, which has reached an important threshold, is experiencing structural problems due to an aging population. This has resulted in pressure on pension expenditures and a decrease in revenue, for which contribution mechanisms have not changed since 1974. New trends in this area include: i) the harmonization of social security policies with the needs of society; and ii) the establishment of mechanisms for the design and distribution of benefits from the National Social Security Fund (CNSS) to meet the current and future needs of the population. Despite the State’s intention to establish a quality occupational health service for workers and their families, the relevant department’s actions have remained conditioned by institutional reforms related to the problems met by occupational health.
B. MAJOR CONSTRAINTS
6.3 The regulatory framework for the administration of labor issues should be updated to adapt to the socioeconomic context and to other changes in the country. In particular, this should address the revision of the Collective Framework Agreement on labor dating from the 1970s and the finalization of the implementing regulations for the Labor Code, which was revised in 2004.
6.4 Social dialogue should be pursued despite the issue of the representativeness of a total of eleven labor unions. This large number makes consultation and mediation difficult in terms of reaching consensus on the reforms needed to sustain social harmony. Therefore, the organization of labor union elections is a priority for holding a constructive dialogue with the relevant social partners.
6.5 Labor administrative services lack adequate resources. They are responsible for the enforcement of labor regulations, both national labor law and the international labor conventions ratified by the country. However, they suffer from a severe lack of material and technical resources.
6.6 Because of its geographical position, the labor market in Mauritania faces the issue of migration. The country is at once a destination, host, and transit site for migrants. This requires the labor administration departments to acquire the skills necessary to enforce labor law in compliance with the international conventions ratified by the country.
6.7 As regards social welfare, the legal framework, which dates back to the 1960s (Bill
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No. 67-039 of February 3, 1967 on establishing a social security program) no longer reflects the country’s socioeconomic context. In addition, the CNSS is experiencing delays in payments of arrears in contributions accumulated over the years by the State, local communities, and public institutions.
6.8 Traditional social security covers only approximately 7% of the active population. Methods to implement its extension should therefore consider including not only workers in the informal sector but also offering other types of insurance such as sickness insurance or complementary pensions.
6.9 Occupational health was recently established as an independent department. However, the situation is characterized by poor geographical coverage of the country and a lack of material and technical resources. In legal terms, the texts laying down the powers of the National Occupational Health Agency (ONMT) should be revised in order to strengthen its role.
C. RECOMMENDATIONS
Short-term Recommendations
6.10 To address the shortcomings identified, the government intends to implement over the next few years a series of complementary measures concerning the administration of labor and social welfare. These measures will apply in both the short and medium terms.
6.11 In the field of labor administration, these recommendations concern:
Finalizing the implementation of regulations governing the Labor Code, revising the Collective Framework Agreement, and improving the status of labor inspectors and controllers; Providing the relevant departments with the resources they require including equipment and logistics to ensure compliance with and strict enforcement of labor laws (Labor Code and Collective Framework Agreement) as well as international conventions on labor migration; Promoting social dialogue with labor by setting up a national tripartite social dialogue committee on which the most representative labor unions will be represented. 6.12 In the field of social security, recommendations concern:
Revising the law on social security; Establishing a policy to ensure the sustainability and financial viability of social protection by defining an investment approach designed to make CNSS real estate assets profitable; Ensuring the complete computerization of the CNSS to improve quality of service, transparency, and ease of use;
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Streamlining individual accounts and employer contribution accounts. 6.13 In the field of occupational health, recommendations concern:
Revising and strengthening the legal powers of the ONMT to enable it to play a leading role in improving the healthcare conditions of employees; Revising the rate of employer contributions to occupational health funds; Developing a national policy document on health and safety at work in consultation with the relevant departments. To support decentralization policies and the promotion of private investment, this document should provide greater geographical coverage of the national territory.
Medium-term Recommendations
6.14 In the field of labor administration, recommendations concern:
Establishing a database of case law regarding labor; Creating a Workers’ Education Center for the training and development of labor union officials. 6.15 In the field of social security, recommendations concern:
Initiating discussions on extending the scope of CNSS personnel and resources to cover the areas of health insurance and complementary pensions. In this context, the reforms should lead to greater flexibility in social security programs with a view to reconciling these with the labor market and the aging population covered; Strengthening the collection of contributions and the monitoring of employers. 6.16 In the field of occupational health, recommendations concern:
Strengthening the ONMT’s human and technical capacities; Implementing programs to prevent occupational diseases while strengthening collaboration between occupational health and various public health programs (AIDS, malaria, CVP); Extending wider geographical coverage by building and equipping centers in the interior of the country and by assigning the necessary personnel.
D. CHALLENGES TO IMPLEMENTATION
6.17 Current challenges are related to:
Frequency of sector data collection and data reliability; Lack of resources – including human resources – needed to make the required investments; Slow legislative process.
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6.18 Available studies and documents are as follows:
Labor Code (2004); Actuarial Study on Social Security (2002); Study on the Reform of the Program for Salaried Employees (2003); Study on the Establishment of the National Social Protection Strategy (2003).
6.19 The focus of studies to be undertaken to bridge analytical gaps should be as follows:
A study on updating the Collective Framework Agreement. This entails harmonizing the agreement with labor regulations including the 2004 Labor Code; An actuarial study on the social security system. The latest actuarial study was carried out in 2002. A new strategy should be defined, particularly for the health services sector; A legal study on updating existing legislation on the social security system. The legislation regulating social security dates back to 1967 and should be updated and adapted to the current socioeconomic context; A study on the occupational health strategy. A positioning study on the newly established field of occupational health needs to be carried out with a view to creating an effective and complementary strategy for public health policy;
6.20 A study on the development of a National Strategy for the Protection of Social Security. This entails studying the feasibility of extending social security to the informal sector and migrant workers.
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7. HEALTH
A. OVERVIEW
7.1 Major reforms have been introduced into the health system in Mauritania over the past 25 years in order to improve the population’s geographical and financial access to quality basic health services. To this end, the Mauritanian authorities have implemented a number of programs intended to strengthen and improve the capacity of the health sector. Their aim has been to adequately respond to the needs of a population widely dispersed over a vast territory, a situation that further limits their geographical access to healthcare.
7.2 The decentralization of health and welfare issues, consisting of dividing tasks according to their central or regional nature, was first initiated as part of the Economic and Financial Recovery Program (EFRP). From 1989 to 1991, the Economic Consolidation and Growth Program (PCR) helped strengthen and expand the scope of regional services at wilaya level. It allowed these to become regional directorates for health and welfare, thus initiating a real financial and decisional decentralization effort within the healthcare system in Mauritania. Following this, the 1992-1996 Medium Term Plan further secured the benefits of decentralization. The plan also facilitated the implementation of a national policy regarding primary healthcare, which was focused on: i) a medication cost recovery system; ii) the restructuring of health training options; iii) basic and continuing education and training for healthcare staff; and iv) improvements in the instruments used for monitoring and assessment procedures.
7.3 The funds raised by health and population related projects and in particular the primary healthcare strengthening project have resulted in: i) the building, rehabilitation, and furnishing of health facilities; ii) improvements in financial and geographical access to health services, basic medication, and medical consumables; iii) the training of various types of medical and paramedical staff; and iv) the establishment of units dedicated to the maintenance of biomedical equipment in some wilayas.
7.4 These efforts have played a significant part in restoring the population’s trust in the public health system. This has resulted in greater use of health services as well as in the increased involvement of local development actors in health management. This has been achieved through various organizations in charge of healthcare management and support such as the Social and Healthcare Development Council (CDSS) and the committees in charge of managing health training. Sector activity and staff motivation have significantly improved, with immediate benefits resulting from the implementation of a cost recovery system.
7.5 However, the healthcare sector suffers from a lack of deep and widespread reforms and strategic vision, which would benefit from a complete diagnosis of the situation at hand. Therefore, despite the steady increase in health costs, implemented solutions have proved inadequate and the quality of and access to services has not improved as expected. In spite of this, the improvements that have taken place during the past two decades and the actions behind these improvements have resulted in better access to basic healthcare and enhanced performance by benchmark institutions. As regards assessment, a number of achievements can be observed at
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various levels of the healthcare sector (Table II.1).
Indicator Rate/Ratio Source Birth rate 42.9 RGPH (2000) Mortality rate 13.4 RGPH (2000) Growth rate 2.4% RGPH (2000) Neonatal mortality 43% EMP (2004) Child mortality 77‰ MICS (2007) Child mortality among > 5 year-olds 122‰ MICS (2007) Maternal mortality rate per 100,000 live births 686 MICS (2007) Number of women receiving prenatal care 78.4% PNSR Professionally-assisted deliveries 61% MICS (2007) Global fertility index 4.7 EDS (2004) HIV sufferers among 14-49 year-olds 0.7% CNLS (2008) Life expectancy 54.3 years EDS (2001) Enrollment rate (TNS) 76.7% MICS (2007) Population below the poverty line 46.7% OMD (2004) Others: Contraception use 8% MICS (2007) Community Postnatal Nursing (CPN) coverage 65% MICS (2007)
Infrastructure and equipment
7.6 Approximately 33% of the population currently benefits from access to an operational healthcare structure located within 5 km. Efforts deployed in this regard have resulted in:
Building and providing equipment for 160 health units, 6 health centers, a maternal and child welfare service, 1 hospital in Nouadhibou, 2 hospitals in Moughaata, the Sheikh Zayed Hospital in Nouakchott, and an emergency room at the National Hospital; Rehabilitating eight regional hospitals including six that have been granted independent status and are in charge of their own administrative operations; Three new specialized hospitals (National Oncology Center, National Cardiology Center, and a Maternity and Childcare Hospital; Converting Zouerate’s Type A Health Center into a regional hospital; Building and providing equipment for two physiotherapy units; The rehabilitation of five health centers: the Nouakchott Polyclinic, the National Center for Orthopedics and Rehabilitation, the National School of Public Health in Nouakchott, Atar Hospital, and the Neuropsychiatric Center as well as health centers located in Aoujeft, Chinguitty, and Ouadane in addition to lead platingat 16 health centers.
7.7 The private and parapublic medical sectors have also undergone significant change in terms of both infrastructure and the diversification of services being offered. There are currently 15 surgical clinics, 47 outpatient clinics, and 34 dental clinics. Medical structures such as those existing within Occupational Medicine, the Army (a hospital and several military
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clinics), and nonprofit organizations (a hospital and several health centers) have contributed to increasing the availability of and access to health services in the country.
7.8 The Health Department has purchased additional radiology and dentistry equipment for nine regional hospitals as well as radiology and ultrasound equipment for four tertiary hospitals (National Hospital, National Institute of Public Health Research, Neuropsychiatric Center, Sheikh Zayed Hospital) in addition to two scanners. Twelve health centers, all healthcare units, and two hemodialysis services (Kiffa and Nouakchott) have also received equipment.
Human Resources
7.9 In addition to improving geographical access to healthcare, efforts have been made toward strengthening the country’s training capacity, particularly by opening the National Institute for Medical Specialization. This institute has trained numerous medical specialists (surgeons, gynecologists, and pediatricians) as well as medical technicians, and it was converted into a medical school in 2006. Furthermore, the consolidation of the National School of Public Health in Nouakchott as well as the creation of a new School of Public Health in Kiffa (600 km east of Nouakchott) have taken place.
7.10 Initiatives have been taken in terms of training and recruitment, which has resulted in the hiring of 247 general practitioners, 200 specialists, 83 dentists, and 82 pharmacists and other specialists. The number of paramedical staff has also experienced a significant increase, with more than 2,100 individuals involved including 393 midwives and 317 advanced technicians.
Medications and Consumables
7.11 Progress has been achieved in the pharmaceutical sector. Medications are increasingly available and professional practice has become safer and healthier throughout the country.
7.12 The restructuring of the Medication, Medical Equipment, and Medical Consumables Central Purchasing Unit (CAMEC) has been an important step. It has made medications and supplies more readily available and accessible to the population, particularly those suffering the most acute poverty. Significant funds have been raised to ensure a regular supply of medications, equipment, and consumables in public health facilities. A new laboratory dedicated to quality control of medicines was opened in 2008 and has strengthened the existing quality assurance system.
7.13 Other essential operations have been carried out for the benefit of the sector: i) the adoption in 2004 of a law regarding pharmaceutical drugs and its partial implementation, which aims to regulate and monitor the sector’s activity; ii) a slight improvement in human resources in both quantity and quality; iii) enhancing existing procedures for recording and promoting medications; iv) strengthening the Pharmacy Inspection Service in terms of human resources, IT, logistical resources, and training; v) reviewing and expanding the national database of essential pharmaceutical drugs in order to meet new needs resulting from emerging diseases and
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developing therapeutic options; and vi) reviewing the status of CAMEC, establishing duty-free regulations for essential medications, and reducing the profit margin being applied by pharmaceutical companies in order to increase access to medications in public health facilities.
The Fight against Disease
7.14 Important measures have been implemented in order to reduce both the morbidity and mortality rates. These measures have resulted in: i) improving a number of health indicators including vaccination rates; ii) ensuring that serious infectious or emerging diseases such as HIV/AIDS are duly addressed by acquiring powerful diagnostic resources and improving the technical equipment available in hospitals; and iii) promoting good health through awareness campaigns and social mobilization. Once these important measures began to be implemented, key indicators started to display significant improvement. The infant mortality rate, for example, dropped from 81 to 77 per 1,000 while the maternal mortality rate fell from 930 to 686 per 100,000 live births.11
Financing the Healthcare System
7.15 There have been significant improvements in the amount of financial resources being drawn to the sector in terms of both private and public funding. However, the current cost recovery system seems to be in decline due to various reasons linked to current supply and demand. Contribution from sectors other than Government sources remains relatively exceptional.
Healthcare System Performance
7.16 Overall, achievements in healthcare performance are: i) the introduction of planning tools; ii) the establishment of an improved National Health Information System (SNIS); iii) the creation of 13 operational Regional Directorates for Health (DRS), which are benefitting from increased material, financial, and human resources; iv) the introduction of an Annual Operational Plan (AOP); v) an increase in community involvement; and vi) the decentralization of operational budgets to mughaata level.
7.17 Several management and coordination strategies have been developed, resulting in important progress: i) a Board of Directors is in charge of internal coordination; ii) some committees are responsible for the monitoring and implementation of strategic plans; iii) other committees are in charge of coordinating projects and programs; iv) thematic Ministry/Partners groups have been established; v) annual assessments of the health sector are carried out; and vi) steering committees for strategic studies have been established.
B. MAJOR CONSTRAINTS
7.18 Despite its dynamic character and the important role it plays in helping develop the country, the healthcare sector has long been facing significant challenges. These have been
11 MICS (2007)
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hindering success in achieving the sectoral objectives that have been set by successive governments as well as in fulfilling bilateral agreements signed with development partners. Despite the strategic guidelines and approaches being developed, efforts have failed to make quality health services fully available and accessible to all citizens. The analysis performed prior to the implementation of the 2010-2012 Action Plan reveals three types of problematic issues: i) health problems within the population; ii) problems in the healthcare system itself; and iii) problems observed within the environment in which the sector is developing.
Health Issues within the Population
7.19 These issues are linked to the country’s epidemiological profile, which is dominated by:
Infectious diseases, mainly acute respiratory infections, diarrheal diseases, malaria, tuberculosis, STD/HIV/AIDS, and perinatal pathology and its consequences on the health of both mother and child; Nutritional imbalances, particularly affecting mother and child; Emerging diseases such as cardiovascular diseases, cancer, mental illness, diabetes, and other diseases linked to the effects of smoking and psychoactive drug use as well as a resurgence in bronchi-pulmonary diseases.
7.20 This situation and other factors (poverty, lack of information, environmental issues) have resulted in the following: i) maternal mortality is among the highest in the sub-region (686 maternal deaths per 100,000 live births); ii) the mortality rate among children under 5 years old is 122 per 1,000; and iii) the child mortality rate is 77 per 1,000 (MICS, 2007).
Healthcare system issues
7.21 Healthcare system issues are observed at different levels of the healthcare pyramid (primary, intermediate, and tertiary healthcare facilities). An outline of the most relevant of these issues is featured below.
7.22 Access to healthcare remains deficient: the distance that separates 33% of the population from a functional healthcare facility exceeds 5 km (Health Statistics Annual Report, 2003). This is due to a lack of health infrastructure, equipment, logistics, and maintenance, which constitutes a challenge at all levels.
7.23 The main sources of difficulty in terms of human resources include:
Insufficient human resources in terms of both quantity and quality for all staff categories (nurses, midwives, doctors); Limited training capacity (basic and continuing education); Staff management issues (motivation, career planning, inadequate needs assessment, objective criteria for career placement and promotion). 7.24 Medications, vaccines, and essential supplies are not always available. Despite efforts by the Government, the health system remains unable to guarantee the continuous availability of
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affordable pharmaceutical drugs and consumables as well as other elements such as vaccines.
7.25 The pharmaceutical industry continues to face important issues. These are due to the legislative and regulatory framework and to a lack of qualified personnel in areas such as quality control of pharmaceutical drugs, the management of pharmaceutical supplies, and pharmacy inspection techniques. The overlap between the public and private sectors generates difficulties that limit the smooth operation of pharmacy related services.
7.26 The hospital sector is experiencing problems that hinder its development: i) lack of specialized care in some sectors; ii) poor quality of hospital care in general; iii) the currently inadequate status of health structures; iv) the dual character of public-private actions; and v) a deficient referral system.
7.27 Funding for the healthcare sector12 has developed in the following manner over recent years:
Lack of financial resources being allocated to healthcare, whether originating from a government budget, private resources, or contributions by the population achieved through the implementation of a cost recovery system;
Lack of effectiveness and efficiency in terms of using available resources and exacerbated by external factors have contributed to this situation, which includes: i) budget limits and quality of entries; ii) delays linked to budget issues; iii) slow and ponderous execution; and iv) inadequate management of facilities. 7.28 Financial access to healthcare remains limited. Various sections of the population are unable to cover the costs of healthcare as no solidarity or support system is available for those groups, who typically experience the most acute poverty.
7.29 The current situation in the private and parapublic sectors constitutes important challenges in terms of standardization and service quality. The expansion of this sector has resulted in an excessive workload for staff working in mixed private and public hospital practice, which is permitted under the law. This adversely affects the availability and quality of public healthcare services. The parapublic sector mainly consists of occupational medical structures, military healthcare services, the medical services provided by the National Industrial and Mining Company (SNIM), and charitable organizations.
7.30 The National Health Information System does not cover hospitals or private and parapublic structures. Collected data is unreliable and delays in publishing results are long.
7.31 Initiatives promoting health and aiming to visibly reduce behavior patterns that are harmful to health are ill-adapted to the current situation. Furthermore, the reduced ability to manage and coordinate the healthcare sector has generated problems despite the various restructuring efforts being carried out within the Ministry’s central and regional divisions.
12 African Heads of State met in Abuja and committed to allocate 15% of their national budgets to the healthcare sector. However, actual allocation of funds has remained at a rate ranging between 3% and 4%.
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7.32 Hygiene and sanitation related issues are caused by: i) an inadequate legal and institutional framework; ii) problems hindering the implementation of the National Hygiene Code; iii) biomedical or specific waste management; and iv) lack of efficiency in systems concerning quality control of food and drinking water.
Issues linked to the health sector environment
7.33 The healthcare system also suffers from the negative impact of specific factors in the environment. These factors give health issues a cross-sectorial dimension that goes beyond the sector’s technical framework. Factors with the greatest impact on the healthcare sector are:
Problems related to hygiene, sanitation, drinking water, and household waste management; Problems related to poverty, which prevents various segments of the population from benefitting from health services; Problems related to inadequate behavior due to low educational rates in the population; Macroeconomic problems significantly affecting the level of funding and grants destined to help finance the health sector; Factors that have a negative impact by raising the number of highway accidents and natural disasters; Problems related to nutrition and food security.
C. RECOMMENDATIONS
7.34 The analysis presented above shows that the sector continues to suffer from various shortcomings. Appropriate strategies are necessary in order to duly address issues concerning regulation and control, the strengthening of existing structures, and human resource development. Two types of recommendations are presented below: general and specific.
General Recommendations
Short-term Recommendations 7.35 General recommendations tend to mainly focus on:
Establishing a new legal framework for the sector and therefore aiming to ensure harmony and efficiency in the way the sector operates; Organizing a Health Convention aiming to define a comprehensive and realistic view of the sector as well as developing appropriate remedial strategies in conjunction with all stakeholders; Defining and following staff standards at all levels of the health pyramid; Developing and implementing sub-sectorial strategies that help provide a clear view of each sub-sector such as the national strategy for the maintenance of biomedical equipment, the national pharmaceutical policy, the development policy for the hospital sector, the regulation and control of the private sector, the national policy encouraging access to health facilities by impoverished populations, the national plan for
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infrastructure development and human resource management, the national strategy for the fight against disease, or the funding and management of the health sector. All these strategies will be consistently included in the National Health Policy (NHP), the (CSLP) and the Millennium Development Goals (MDG); Establishing a health information system that takes into account the different levels of the health pyramid, including the hospital sector. Medium-term Recommendations Developing a national system of quality assurance for the sector; Developing and introducing principles for Best Pharmacy Practices in the pharmaceutical field; Conducting new studies and surveys in order to develop a better understanding of health indicators. Specific Recommendations
Short-term Recommendations
7.36 Specific strategies linked to important aspects within the sector should also be scheduled over short and medium term periods.
Developing increasing access to healthcare, thereby allowing all citizens to benefit from the nearby availability of health services and quality nutrition. Consequently, additional initiatives for the building and equipment of health facilities as well as increased availability of human resources in terms of quantity and quality are required. The latter may be achieved by providing basic and continuing education as well as through the outside recruitment of doctors and paramedical staff; In terms of human resources, the following actions are required: i) establishing a transparent and coherent strategy for the training of medical and paramedical staff; ii) achieving adequate career management; iii) using staff to their optimal capacity in order to reduce any disparities across wilayas as well as those existing within single administrative districts; and iv) promoting the opening of new schools dedicated to health training and in particular to the training of additional staff who may be recruited by the government or the private sector. The Fight against Disease Developing strategies based on achieving the Millennium Development Goals (MDG), which in turn will help: Reduce infant mortality by supporting the implementation of the Strategy for Child Survival; Reduce maternal mortality by improving the availability and quality of obstetric and neonatal care; Reduce morbidity and mortality associated with HIV/AIDS, malaria, and tuberculosis. To achieve this, the following is needed: i) strengthening community outreach programs through health unit activities; ii) renewing the community approach; and iii) facilitating healthcare access for populations located in remote
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areas; Changing widespread behaviors regarding disease by setting up awareness campaigns and by detecting illness in its early stages; Developing a disease management protocol; Organizing a referral system; Ensuring epidemiological monitoring; Promoting hospital hygiene in collective or individual settings; Conducting operational research; Institutional strengthening geared toward promoting the production and consumption of iodized salt; Limiting smoking habits (tobacco consumption).
Developing strategies to fight non-contagious diseases in order to: i) reduce the incidence of hypertension, Type II diabetes, smoking, high cholesterol, and obesity; ii) allow the early detection of cervical, breast, prostate, and lung cancers; and iii) reduce the incidence of mental disorders as well as that of tooth decay; Developing a strategy for fighting potentially epidemial diseases (PED) in order to control morbidity and mortality rates associated with neglected tropical diseases, whether emerging and/or re-emerging; Implementing initiatives in the hospital sector in order to encourage: i) the availability of medical specialists; ii) the acquisition of specialized technological platforms; and iii) the establishment of performance contracts to ensure that the population benefits from quality services. Concerning this last point, the ultimate aim is to provide on-site treatment for conditions currently causing patients to be transferred; Reviewing and improving the legal and regulatory framework in terms of incoming medical equipment (pharmaceutical drugs, vaccines, consumables, equipment), restructuring CAMEC in order to adapt it to the current situation, regulating the private sector in order to enhance the availability and accessibility of medical equipment, and developing human resources through basic and continuing education; Initiating reforms aiming to improve the performance of the health sector as well as quality of service. These reforms should focus on: i) institutional strengthening of the relevant ministry (organizing, defining roles, selecting managers); ii) achieving further decentralization; and iii) strengthening the planning/scheduling process; Encouraging activity within Health Study Groups, which should provide a framework for interaction and coordination between technical and financial partners; Increasing the amount of resources being allocated to the healthcare sector by achieving fairer distribution and more rational resource management. Medium-term Recommendations
Promoting investment in the private sector in order to raise quality levels in healthcare delivery. This should be achieved by: i) supporting mechanisms that facilitate investment based on investment regulations that are specific to the health sector. This would allow easier access to bank loans, treasury credit, or long-term credit at low-interest and degressive rates; ii) establishing exemptions from custom duties on medical equipment; and iii) establishing a tax-free allowance for the first five years of practice;
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Requesting that private medical institutions comply with international standards in accordance with the specifications developed by the Ministry of Health. The Ministry should not issue a license for medical practice unless the institution’s compliance has been duly proven through appropriate monitoring and assessment. A specific moratorium would be granted to existing institutions to allow them to comply with the relevant standards; Regarding the global context, it is necessary to create a framework that will enhance the coordination between departments in charge of issues directly related to healthcare. Improving the financial accessibility of healthcare services by: i) boosting the cost recovery system; ii) medical management of and subsidies to essential health services aimed at the poor and other target patients; and iii) extending universal medical coverage to the entire population. This coverage would be financed by a solidarity fund that would draw funds from taxes, particularly those applied to tobacco and fuel sales; Increasing the sector’s capacity in terms of management, health information, programming, decision-making, budgetary implementation, and monitoring and evaluation, including in the private sector; Strengthening coordination in the budgeting and programming process by improving the sector’s planning process.
D. CHALLENGES TO IMPLEMENTATION
7.37 Key challenges to implementation of these selected recommendations are:
A lack of diagnosis and relevant information regarding current issues in the sector; A need for greater clarity in terms of laws and regulations related to the sector’s operative framework (connections, respective roles and collaboration between the public and private sectors, professional practice, supply of medical equipment); Limited decentralization; Inadequate financial and human resources and training; Poor capacity in terms of planning and monitoring of actions within the sector.
E. ANALYTICAL GAPS
Developing a health development plan for 2010-2015; Analyzing the national health information system; Elaborating the country's health map; Institutionalizing national health accounts; Reviewing educational programs being implemented in training institutions; Conducting an Enhanced Data Support Methodology (EDSM) survey; Conducting surveys regarding the incidence of diseases; Assessing the 1998-2002 Infrastructure Development Plan (IDP) and elaborating the 2011-2015 IDP; Developing a national contractualization strategy; Developing a national strategy for the maintenance of biomedical equipment.
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8. WATER AND SANITATION13
A. OVERVIEW
8.1 In 2000, the Islamic Republic of Mauritania adopted the Millennium Declaration and pledged to "reduce by half the proportion of people without regular access to safe drinking water and sanitation by 2015.” The CSLP issued in 2001 has served as a reference document for developing strategic guidelines for the water sector. Introduced by the CSLP, the multisectorial strategy promoting universal access to basic water services was also adopted in 2001. This strategy aims to implement systems that will ensure a higher degree of efficiency in governmental investments and the management of several areas identified by the Agency for the Promotion of Universal Access to Basic Services (APAUS). During 2006, a new CSLP plan was developed for the 2006-2010 period.
8.2 Since 2005, various water sector stakeholders have met and held joint discussions in order to improve the sector’s visibility and strengthen coordination among them. The rural sector was examined in June 2005 and this generated a set of recommendations that are featured in this document. Moreover, the 2006 Round Table of donors for the achievement of the Millennium Development Goals (MDG) focused on the water sector, among other issues. In 2007, public expenditure was reexamined, and that very same year the National Water Council, which was established in compliance with the Water Code, held its first meeting.
8.3 The water sector’s evolution and ensuing government resolutions have resulted in the need to review the "Strategy for the Development of the Water and Sanitation Sector," which was developed in 2006. This strategy regulates governmental action regarding water and sanitation in accordance with its strategic focus and by taking into account the action plan that will be implemented. It targets the use and control of water resources, water supply, and sanitation.
Institutional Framework
8.4 The water and sanitation sector has been restructured, resulting in an institutional framework for the sector that accords with the recommendations brought forward by the 2006 Strategy for the Development of the Water and Sanitation Sector and in conformity with CSLP guidelines for 2006-2010. Several development partners have become associated with this reform by investing in supporting studies.
8.5 The National Water Council constitutes a framework for concerted actions shared by various stakeholders and institutions involved in water and sanitation issues (local authorities, NGOs, public sector, private sector, and professional associations) and aiming to improve governance and sectorial coordination.
8.6 The reform resulted in a new regulatory, legal, and financial framework. The Water Code adopted in 2005 specifies the duties entrusted to the Minister in charge of water affairs,
13 This document was issued by the Mauritanian authorities and the French Development Agency (AFD).
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focuses on protecting water resources, and defines delegation policies and duties in terms of project management. The scope of the Multi-sectorial Regulatory Authority, which is an independent institution, was extended in 2001 to cover the water sector. Budget spending authorization was deconcentrated in January 2005 and a CMDT was developed for the 2007- 2010 period.
8.7 The Ministry for Hydraulics and Sanitation (MHA) and institutions under its authority include:
The Directorate for Policy Setting, Cooperation, and Monitoring and Evaluation (DPCSC). In reference to water ands sanitation issues, this directorate is mainly in charge of elaborating sectorial development plans, conducting sectorial evaluation studies, and promoting cooperation and coordination; The Directorate of Hydraulics (DH) focuses on strategic issues. It is in charge of developing and implementing sectorial policies and strategies concerning the water sector. Within this scope, it is responsible for elaborating development plans, monitoring program implementation, and developing water policies as well as coordinating and monitoring the activity of all businesses and institutions involved in the water sector; The Directorate for Sanitation (DA) is in charge of developing and implementing government policies and strategies within the sanitation sector. Within this scope, it is responsible for the elaboration of sub-sectorial development plans and is in charge of monitoring program implementation; The Directorate for Hydrology and Waterworks (DHB) contributes to the development and implementation of governmental policies and strategies in terms of surface water resource management and monitoring the meteorological and hydrology cycles. It is in charge of creating sub-sectorial development plans and monitoring program implementation; The Regional Water Services (SRH) plan and coordinate activities at the wilaya level regarding water and sanitation practices; The National Center for Water Resources (CNRE) was created through the implementation of Decree No. 2001-077 of July 12, 2001. This public administration entity (EPA) is in charge of exploring, assessing, monitoring, and protecting water resources; The National Water Company (SNDE) was created through the implementation of Decree No. 2001-88 of July 29, 2001 and resulted from the former SOMELEC being split into two separate companies. It is in charge of generating, supplying, and distributing drinking water within urban areas; The National Sanitation Agency (ONA) is in charge of building and managing rainwater and wastewater treatment networks including sewage treatment plants.
8.8 The government’s withdrawal from its execution role resulted in the creation of two separate institutions that continue to act under the authority of the Ministry for Hydraulics and Sanitation:
The National Safe Drinking Water and Sanitation Agency (ANEPA), founded in 2001 and benefitting from corporate status. One of its roles is to establish suitable management
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and funding mechanisms for programs involving the maintenance and renewal of waterworks as well as sanitation programs focusing on rural and semi-urban areas. In accordance with the conditions stipulated in Law 2005-030 within the Water Code, ANEPA has been entrusted by the public services to act in delegation according to given specifications; The National Drilling Company (SNFP) helps enhance the national drilling capacity.
8.9 Municipalities have also become involved in the water sector by performing water- related operations that are being self-financed or funded through decentralized collaborations. The private sector (businesses, research departments) as well as national and international NGOs have also contributed to the sector.
Access to Drinking Water
8.10 A new database that aims to improve the monitoring of Mauritania’s capacity for water supply has been designed and installed by the DPCSC. In 2004, access to the drinking water supply network reached 40% of the national population. That same year, access to private connections in urban areas reached 30% (cities with population of over 5,000). Access to water varies widely according to area:
The SNDE broadened its scope in order to reach alternative eligible centers, thus increasing their number to 22; In the city of Nouakchott, nearly 25% of households benefit from access to drinking water thanks to private connections; Other cities within the SNDE coverage area register higher access rates, with 46% of households owning private connections; In cities of over 5,000 residents, where water supply networks are managed by the ANEPA, the percentage of households benefitting from private connections is 38%; In 2008, 51% of rural households had access to drinking water and nearly half of all urban concentrations of over 500 residents remained without a network supplying drinking water.
Access to Sanitation Services
8.11 Access to sanitation services benefitted 36% of the national population in 2004. Access in rural and urban areas was as follows:
20% of households have access to sanitation and on-site water treatment systems in rural areas; 55% of households have urban on-site water treatment systems.
Groundwater Resources 8.12 A better understanding of Mauritania’s groundwater resources has been achieved through several hydrogeological studies aiming particularly to supply drinking water to major cities. However, a lack of financial resources has hindered the process of conducting sufficient reconnaissance drilling with the aim of acquiring a better understanding of the
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country’s water resources. A monitoring network for groundwater resources has been established in 14 cities. A list of waterholes has been compiled in most regions except for the Tiris Zemour and Adrar regions. However, waterholes have not been included in Mauritania’s national network. The waterhole database is currently operational but would benefit from being updated regularly. Merging this database with a dedicated Geographic Information System (GIS) is recommended.
Surface Water Resources
8.13 Mauritania benefits from large surface water resources, including the Senegal River and its affluents: Gorgo, covering a catchment area of 20,800 km2; Oued Gharfa: 6,365 km2; Oued Niordé: 2,560 km2; Oued Guelouar: 6,400 km2; and Karakoro: 30,000 km2. The Senegal River is a year-round watercourse and its water resources are shared with neighboring countries. Other potentially important lakes, perennial small lakes, and numerous streams have remained undeveloped while the hydrological nature and evolution of numerous inland basins also remains largely unknown (Lake Aleg, Lake Malé, Lake Mahmoude, Lake Kankossa, Lake Guebou, Lake Gadel).
8.14 The Senegal River Water Charter, which has been signed by Mauritania, Senegal, Mali, and Guinea constitutes a framework for water management. The charter’s aim is to establish coordinated water resource management strategies. The monitoring of the Foum-Gleïta Dam as well as that of major rivers within the country has been entrusted to the DAR and to a lesser extent to SONADER and the Ministry of Rural Development (MDR).
Investment in Urban Areas
8.15 Significant investments have been made in urban areas over recent years: nearly USD half a billion has been invested, including approximately USD 450 million entirely allocated to the Aftout Es-Saheli project. Following a set of investments made in several cities (Nema, Boghe, Timbedra, Tidjikja, and Kiffa) and the recovery of several ANEPA centers, the SNDE perimeter has been widened from the original nine cities in 2001 to 22 in 2007.
8.16 In urban areas, the Water Department of the Urban Development Program (PDU) as well as the regular implementation of emergency programs have helped improve water supply in Idini, increasing it from 40,000 m3/d in 2003 to 60,000 m
8.17 3/d since 2008 thanks to new borehole drilling operations carried out in that location. Efforts made to increase water supply in Nouadhibou in 2005 will help cover the city’s water requirements until 2020. The modernization and extension of Nouadhibou’s water distribution network were completed in 2008.
8.18 Numerous regional cities have also increased their water supply capacity. Atar, for example, has seen an increase in its water supply, which reached 4400 m3/d in 2005. The city of Kiffa benefited from operations that have also resulted in increased water supply. The cities of Kaedi, Nema, and Boutilimit also increased their water supply capacity and have continued to develop their water distribution network. A surface water treatment plant has been built in Rosso with the aim of improving the quality of the area's water supply. The city’s water supply network
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has also been modernized and extended. Timbedra, Aioun, and Tintane, where water supply capacity was particularly deficient, have also benefited from new drilling operations with the aim of improving their capacity. The water distribution networks of Tidjikja, Aleg, and Boghe have also been extended in order to improve their water distribution rate.
Investments in Rural and Semi-urban Areas
8.19 A total sum of MRO 3.5 billion (USD 13.7 million) was invested in rural areas from 2002 to 2004. During the 2001-2004 period, the number of implemented hydraulic construction projects reached in 150 networks in areas with a population of over 500 as against the 190 centers that had been planned for that period. However, water supply coverage has significantly increased. Thus approximately 32,000 private connections were set up during the 1998-2005 period.
8.20 The construction of modern wells, which are designed to supply water to villages of fewer than 500 residents showed results that exceeded expectations twice over (40 wells instead of 20 per year) during the 2001-2004 period. Approximately 200 village wells have been equipped with human-powered pumps. The 2001-2010 investment plan for rural water supply was updated in 2005 and will cover the 2006-2015 period.
Sanitation
8.21 Public authorities are becoming more involved in promoting sanitation. At the institutional level, this has resulted in the creation of new structures that have been particularly designated for this sector. In spite of this, sanitation remains an issue that has not yet achieved priority status within public investment programs. The Water Code promotes the use of central sanitation systems in cities with a master plan and it recommends on-site sanitation systems in other cities. A strategy for the development of sanitation is yet to be developed. However, a policy memorandum to this effect was issued in 2005 by the Ministry of Hydraulics and Sanitation.
8.22 A master plan for the gradual development of a central sanitation system in urban areas was established in 2009 for the city of Nouakchott. A study covering the entire city recommended dividing it into three major clusters. The total cost for the project is MRO 76,852 billion. Cluster A would be completed during the first phase at a cost of MRO 29,398 billion. Nouakchott’s six remaining mughaatas will have on-site sanitation systems, eventually evolving toward the use of a central sanitation system given that feasibility studies for this particular project have been carried out within the framework of a general study covering the entire city.
8.23 Other studies regarding the implementation of a Master Sanitation Plan for the cities of Rosso and Nouadhibou are underway. The National Sanitation Agency (ONA) has been placed in charge of carrying out all maintenance tasks concerning the existing sanitation network in Nouakchott. However, additional efforts must be made regarding cost recovery.
8.24 Rural sanitation: the development of on-site sanitation systems in accordance with pilot projects advocated by the 2001 Rural Water and Sanitation Investment Plan has not materialized. Other projects are underway and will contribute to achieving the MDGs (PAEP, PEGG, ATPC,
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etc.).
8.25 The power of municipalities in terms of developing sanitation policies is yet to be defined particularly concerning the promotion of on-site sanitation systems. However, an investment plan (National Program for Rural Sanitation – PNAR) for the 2006-2015 period was developed in 2005 with the purpose of achieving the MDGs. Updating the investment plan is essential in light of new conditions.
Strengths
The strengths of the sanitation sector may be summarized as follows:
A restructuring operation was carried out between 2001 and 2008 resulting in an improved framework for action due to the creation of new institutions with expertise in the sanitation sector; Sanitation and surface water issues are increasingly being addressed as part of intersectorial operations; The Water Code allows for independent experts in urban and rural water supply to contribute toward the development of the sector; The Water Code encourages partnerships between public, local, and private operators, thus promoting joint infrastructure management and investment funding; The private sector is developing a national capacity in terms of research and hydraulic and sanitation building and maintenance, and is particularly involved in developing solar energy solutions; The sanitation sector benefits from a system of delegated management for rural and semi- urban networks on a national scale. This system includes the recovery of recurring expenses for more than 410 systems.
Development Strategy for the Water and Sanitation Sector
8.26 The main objective for the development of the water and sanitation sector as defined in the 2006-2010 CSLP Plan is “to improve the living conditions of the population by ensuring access to safe drinking water and sanitation in terms of quantity, quality, sustainability, and affordability.” This objective is in line with the aim of achieving the Millennium Development Goals (OMDs), and this involves taking effective action regarding the following six main objectives: Objective 1: Increasing the drinking water supply 8.27 In order to achieve the MDGs, the drinking water supply objective is to increase the national rate of 40% in 2004 to 68% in 2015:
In urban areas, the goal is to increase access to drinking water from 30% in 2004 to 65% in 2015. Given population growth in urban areas, the drinking water supply coverage rate has fallen from 34% in 1990 to 30% in 2004. Achieving the MDGs in urban areas will depend on the one hand on funds available for production and distribution and on the other on the population's growth rate, particularly in Nouakchott; In rural areas, the aim is to raise drinking water coverage from 49% in 2004 to 74% in
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2015. Despite a growing population, the drinking water supply coverage rate has improved since 1990, rising from 40% in 1990 to 49% in 2004.
8.28 Strategic guidelines that must be implemented in order to achieve these objectives are:
Achieving a more egalitarian drinking water distribution among the poor as well as among various neighborhoods (with particular attention given to the situation in Nouakchott) and the regions; Strengthening water supply capacity and improving water distribution; Improving the water supply in suburbs and slums by promoting direct access to the public water supply (private connections); Developing and boosting water supply services in semi-urban and rural areas by ensuring the renewal and extension of water resources (boreholes, wells, water towers, hydraulic networks) through the budgeting of national funds. The aim is to meet increasing demand for water and to successfully extend water supply services to a wider population; Achieving compliance with national standards throughout the planning stages; Taking into account the agricultural water needs of market-gardening areas in view of the need to rationalize the use of water resources; Prioritizing the use of surface water in order to ensure an adequate supply of drinking water; The financial balance of the rural and urban water sectors can be achieved through: i) regular payment of water service bills by users in accordance with Water Code specifications, and ii) defining a transparent pricing policy in order to ensure the funding of recurring costs. In urban areas, a specially reduced rate will be retained in order to benefit the poor. In rural areas, a balance will be achieved through payment for water supply services by users and the use of resources made available in the national budget. A water fee review policy will be introduced in accordance with the specifications that apply to delegated organizations and ANEPA.
8.29 These guidelines will result in the implementation of action strategies that will focus on:
Improving water supply services throughout all neighborhoods (the tracking down of fraudulent connections, standpost management (stand-alone or connected to the network), supplying water for storage basins in areas with no service coverage, and defining prevention measures in order to avoid pollution in the public water network); Securing the electricity network used to supply drinking water to major cities; Modernizing and expanding the public drinking water supply network in Nouakchott in order to meet growing demand; Regularly strengthening and consolidating the infrastructure available in regional centers located within the SNDE perimeter; Constructing modern waterholes (cemented wells and equipped boreholes) for each population concentration of 150 residents or over, thus ensuring the construction of 70 new wells and counter-boreholes per year; Constructing approximately 52 networks per year in localities with a population ranging
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from 500 to 5,000 residents; Modernizing, extending, and upgrading the 40 existing networks each year. Objective 2: Protecting water resources and developing resource-related knowledge 8.30 The Water Code emphasizes the need to globally address water resource management issues by taking into account the multiple uses of water. The aim is to develop a national master plan for the development and integrated management of water resources in order to promote increased water supply coverage in rural and urban areas over a period of ten years.
8.31 A program for the integrated management of water resources includes the following strategic guidelines:
Thorough knowledge of water resources and the capacity to generate hydrogeological maps on a relevant nationwide scale; Ensuring the proper monitoring of water resources; Ensuring the regional coordinated management of water resources for each wilaya as well as the arbitration of water supply disputes by incorporating the participation of various stakeholders, particularly municipalities and regional services. The ideal framework for the promotion of this approach would be to create regional water councils.
8.32 These guidelines will result in the implementation of action strategies that will focus on:
Conducting new global hydrogeological studies in different areas of the country; Creating a piezometric network and developing methods for the monitoring of groundwater resources; Delimiting the protection and strategic preservation of areas covering large cities and regional urban centers; Studying and mobilizing systems that allow for the artificial renewal of aquifers; Encouraging geological and mining research for hydrogeological purposes using data collected from various sources. Objective 3: Promoting the use of surface water resources 8.33 The Water Code designates the Ministry for Hydraulics and Sanitation as being responsible for the mobilization and management of surface waters. The strategic aim is to mobilize surface waters and ensure integrated management in order to promote the development of all types of activity requiring the use of water used in Agricultural Economics Programs (AEP), agriculture, energy, tourism, transportation, industry, environment, etc.).
8.34 The strategic guidelines for an integrated surface water management program are:
Improved understanding of the national hydrographic network and development of a database and an Information Management System (IMS) containing all necessary hydrological data; Increasing investment in the area of surface water use (dams, lakes, retention basins, etc.)
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in order to meet current and fluctuating demand for water; Encouraging the artificial renewal of groundwater resources through the implementation of specific operations; Implementing the Nouakchott Declaration of May 2003, which was adopted by the Senegal River Development Agency (OMVS/CCEG), in order to continue promoting subregional cooperation through the integrated, egalitarian, and joint management of the Senegal river water resources.
8.35 These guidelines will result in the implementation of action strategies that will focus on:
Studies concentrating on surface water resource listings; Developing and setting up a database and an IMS focusing on surface water resources as well as collecting hydrological and hydrographic data; Carrying out structural work in order to promote the use of surface water resources (dams, retention basins, etc.); Monitoring of surface water resources. Objective 4: Increasing access to sanitation services 8.36 The goal in terms of wastewater treatment is to increase access to sanitation services from a rate of 55% to 77% in urban areas in accordance with the MDGs.
8.37 The strategic guidelines for wastewater treatment in urban areas are:
Modernizing and expanding Nouakchott’s central sanitation network in the short term; Promoting the improvement of on-site sanitation technology in Nouakchott and other urban areas; Granting priority to low-lying areas that are prone to flooding; Granting public investment priority to the realization of basic sanitation infrastructures.
8.38 These guidelines will result in the implementation of action strategies that will focus on:
Developing a strategy for urban sanitation; Completing the study concerning sanitation technology solutions; Mobilizing the funding of a master sanitation plan for Nouakchott, Nouadhibou, and Rosso; Implementing the Nouakchott sanitation master plan; Completing the Rosso and Nouadhibou sanitation master plans in order to develop wastewater and stormwater treatment in these areas.
8.39 The rural and semi-urban wastewater treatment objective is to increase the rate from 20% in 2005 to 60% in 2015.
8.40 The strategic guidelines contained in the PNAR are:
Assessing user demand;
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Promoting sanitation and hygiene; Decentralizing activities by establishing memoranda of agreement with municipalities and other deconcentrated health departments in order to promote sanitation and on-site water treatment solutions; Allowing users to finance family sanitation by investing at a maximum rate of 40%, which may very according to the type of equipment being selected for use. The remaining funds will be provided in the form of a grant for which the maximum rate is set at 90%; Public sanitation in schools and health centers will be financed by the Government and the municipalities; Encouraging relevant associations to participate by funding equipment, sanitary infrastructures, markets, bus terminals, meat-packing plants, and other local or public income-generating facilities; Maintenance costs will be fully covered by the network’s users, local authorities, or other benefiting structures such as schools, healthcare centers, bus terminals, markets, etc.; Updating the PNAR to match current demand in the sector.
8.41 These guidelines will focus on developing the following actions:
Creating a catalog of technical and financial options for the installation of sanitation systems; Carrying out promotional campaigns focused on hygiene and sanitation. The implementation of Hygiene Code regulations will in turn allow for the easier implementation of hygiene strategies. Initiatives promoting hygiene constitute a necessary and complementary step toward building sanitation infrastructures; Strengthening collaboration between various ministerial departments in order to: i) reduce the risk of flooding or rain-associated nuisance in urban and semi-urban settings; ii) regulate the construction of flood prevention structures; and iii) build the structures listed above. Objective 5: Encouraging partnerships between the private and public sectors 8.42 The following strategic guidelines have been selected with a view to stimulating private investment in the sector and improving performance in the management of structures:
Creating a suitable environment for the implementation of laws regulating the water sector. This may be achieved mainly through closer monitoring of delegated public organizations; Selecting one institutional public-private sector partnership for the management of drinking water operations in urban areas. In accordance with the provisions of the Water Code, the ownership of facilities, the management of public investment projects, and the setting of official water pricing continue to fall under the Government’s exclusive authority. The selected partnership with the private sector must be in compliance with the objective of reducing poverty; Improving the management of structures in rural and semi-urban areas through the gradual development of new methods of delegation, thus aiming to entrust greater responsibility for maintenance and rehabilitation to private operators;
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Establishing a framework for concerted action between the public and private sectors.
8.43 These guidelines will result in the implementation of the following main action strategies:
Strengthening the capacity of structures in charge of monitoring the delegation of public services; Providing detailed specifications including factual performance objectives (private connections, extensions) for private operators. The new contractualization method will be tested in a few centers located in rural and semi-urban areas and followed by publication of test results; Establishing a transparent and collaborative investment schedule (publishing an annual schedule for the physical implementation of projects); Defining performance indicators used to monitor system operators; Carrying out training initiatives to enhance the professional capacity of private sector operators.
Objective 6: Strengthening the capacity of stakeholders in the sector
8.44 Achieving the goals stated in the Millenium Declaration depends on the ability to strengthen the capacity of stakeholders in the sector. The strategic guidelines that have been set to improve performance and strengthen project management capacities are:
Establishing the necessary means that will allow the central offices of the Ministry of Hydraulics and Sanitation and municipalities to fulfill their role as project managers; Increasing the amount of qualified staff working for deconcentrated services; Tackling the reorganization of multiple and unskilled staff working within the various structures of the Ministry of Hydraulics and Sanitation; Developing the ability of functional regional departments to offer advisory support to municipalities involved in project implementation; Encouraging the collaboration of deconcentrated services and municipalities in charge of project management with a view to achieving the sustainable management of drinking water supplies; Strengthening national borehole and well-drilling capacity; Enhancing water treatment capacity (including desalination); Strengthening the capacity to manage surface water resources (Senegal River, dams, small lakes, permanent lakes, and oases) in order to improve water distribution to the population wherever possible; Strengthening capacity to promote and build on-site sanitation systems.
8.45 These guidelines will result in the implementation of action strategies that will focus on:
Consulting departments affected by staff reorganization measures; Hiring a sufficient workforce with profiles corresponding to the requirements of municipalities (planning, monitoring actions, developing standards, regulations and
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programs for implementation) as well as those stated by central and deconcentrated departments; Strengthening the capacity to advocate and explain sanitation technology among staff working for central departments, deconcentrated health and sanitation services, and municipalities; Strengthening the capacity to advocate and understand sanitation technology among private sector operators, drinking water supply network operators, and NGOs; Creating adequate central, deconcentrated infrastructures capable of accommodating ministerial departmental staff.
B. CHALLENGES TO IMPLEMENTATION
8.46 Despite the efforts being made, several challenges must be faced:
8.47 The implementation of reform is not yet complete in terms of sectorial coordination and planning and law enforcement and associated measures. Several important water supply programs are being developed and implemented by alternative structures without prior consultation of the Hydraulics and Sanitation Department:
The Ministry of Rural Development designs and builds dams and has been implementing projects involving the construction of waterworks; The office of the Commissioner for Human Rights, Humanitarian Action, and Civil Society Relations is responsible for the funding and implementation of projects involving the construction of water supply infrastructures; The office of the Commissioner for Food Safety is involved in the construction of waterholes and dikes; The Ministry of Economic Affairs and Development ensures the supervision of APAUS and AMEXTIPE, which are in charge of implementing water and sanitation programs.
8.48 Weak capacity among public services is one of the principal constraints on the development of the water and sanitation sectors. This constraint is seen in a lack of qualified personnel and in under-training among the principal actors in the sector (public sector, private sector, NGOs, etc.).
8.49 Population growth in semi-urban and urban areas, particularly in the city of Nouakchott, has constrained the extension of water supply coverage, especially in urban areas. As a result, there is growing demand for water resources, which in turn generates a significant need for funding.
8.50 The impact of central and deconcentrated initiatives is limited due to: i) inadequate human and financial resources, ii) a lack of effective deconcentration, and iii) inadequate communication between institutions within the sector.
8.51 The sector’s financial balance may be described as follows:
The financial situation in urban areas is precarious due to frozen water tariffs, the high cost of energy services, and late payment of public service bills;
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In rural and semi-urban areas, financial balance has not been achieved due to a lack of regular tariff updating and the rising cost of inputs.
8.52 While the Aftout Essahili project is making rapid progress, sanitation projects in the city of Nouakchott and other large cities have been slow to develop. Several major cities in Mauritania suffer from severe chronic flooding as a result of a lack of infrastructures dedicated to stormwater drainage.
8.53 The objectives and strategic guidelines of this sectorial strategy are in line with the priorities defined by the 2006-2010 Poverty Reduction Strategy Paper (PRSP) and are aimed at achieving the hydraulics and sanitation MDGs by 2015. Water supply and sanitation are considered priorities. The development of the sector should be achieved by following a planning-by-objectives process linked to a unified and consistent action program that must be agreed upon by the sector's various stakeholders and that would be implemented within a medium-term investment framework. The CDMT must submit separate financial and physical targets and provide an annual schedule per region. Implementation will be evaluated according to performance indicators been defined under the 2006-2010 CSLP. An additional monitoring and evaluation mechanism will also be implemented.
8.54 An annual program for the construction of hydraulic structures will be established in collaboration with various departments and institutions. Practical modalities that will help improve sectorial coordination will be established in order to increase the participation of the Ministry of Hydraulics and Sanitation in the monitoring of studies and work being carried out by relevant stakeholders. The participation of consumer associations will be encouraged in order to help increase the rate of user interest in issues involving water supply and sanitation.
8.55 Decrees complying with the application of the Water Code are yet to be prepared in collaboration with relevant ministries and will be subsequently enforced.
C. RECOMMENDATIONS
8.56 The hydraulics and sanitation sector suffers from a lack of support regarding the implementation of reform that was initiated over a decade ago. This reform requires the modification of the sector’s organization and its management system. The main actions to be concurrently carried out in order to strengthen and consolidate this institutional reform are:
Establishing a diagnostic of the reform’s impact. This may be concretely achieved by reviewing all legal texts pertaining to activity in the sector and analyzing the results of the implementation of reform in the 2000s; Supporting the elaboration of a national strategy for the sanitation sub-sector; Operating a hydraulics information system. This would involve creating a list of water supply and sanitation infrastructures on a national scale and defining the concepts related to the supply of water and sanitation services; Supporting the revision of the legal framework regulating the sector, including Bill 2005- 030 as well as its various accompanying regulations.
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D. ANALYTICAL GAPS
8.57 As mentioned above, the management of the water sector has undergone profound changes over the last ten years. These institutional changes have constituted the focus of several studies referring to the sector. These studies and documents have been used mainly to support reform. Today’s needs in terms of review and analysis with a view to supporting continued reform may be summarized as follows:
Analyzing institutional overlapping between stakeholders’ functions within the water sector; Conducting a study focusing on the development of a national plan for the integrated management of water resources; Updating Hydraulic CMDT specifications set in 2007; Conducting a study that focuses on developing a comprehensive institutional system for the development of the hydraulics sector; Offering monitoring support for the implementation of the Declaration for Sectorial Development, which was updated in 2006.
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PART III: IMPROVING THE FACTORS OF PRODUCTION: INFRASTRUCTURE
9. ELECTRICITY
A. CONTEXT
9.1 The electricity sector is characterized by the presence of a single government- controlled operator – SOMELEC (Mauritanian Electricity Company). Other operators include the following: i) the Senegal River Development Agency (OMVS), which manages the Manantali Dam and the 200 MW hydroelectric power plant in Mali and which supplies electricity to three countries, including Mauritania; ii) the Rural Electrification Development Agency (ADER), which is responsible for coordinating the rural electrification process; and iii) the Agency for the Promotion of Universal Access to Regulated Services (APAUS), which is responsible for promoting access in the poorest urban, peri-urban, and rural areas. SOMELEC covers the following zones: i) Nouakchott and Nouadhibou; ii) seventeen other centers including the cities of Rosso, Kaédi, and Bogué (powered by the Manantali power plant), and a number of other cities (powered at high cost by oil-burning generators). While all the country’s 13 main administrative centers are electrified, 11 out of 32 secondary administrative centers are not. Of the 21 that are electrified, seven are included in the SOMELEC coverage area, six are within ADER’s rural electrification concession, and eight have SOMELEC acting as customer representative. The coverage rate remains low in cities within the SOMELEC area as well as in the cities of Nouakchott and Nouadhibou. According to 2007 estimates, coverage rates in these two urban areas stand at 39% and 48%, respectively.
9.2 The sector’s legal and institutional framework has been modified since 1998, a time when a major reform was carried out and affecting the Water and Electricity Development Policy Statement (DDEE). This reform aimed at: I) eliminating all monopolies in electricity supply; ii) creating a new legal and regulatory framework that would enable the private sector to participate in electric power supply; iii) privatizing the assets of SOMELEC’s electricity business (at the time the sole operator covering water and electricity); and iv) rationalizing electricity prices to reflect economic costs. Implementation of the reform was conditional upon privatizing SOMELEC’s electricity production and distribution activities, which involved identifying a strategic partner that would initially buy 49% of the assets of its electricity sector activities. However, initiated in 2001 to manage electricity production and distribution activities, the first attempt to privatize SOMELEC failed in 2002 and the State remained the holder of its entire share capital.
9.3 DDEE implementation was consolidated by the 2001 Electricity Bill No. 2001- 19. This document includes legal provisions organizing the sector and governing electricity production, transport, and distribution activities. This law establishes the sector’s institutional framework and assigns a regulatory role to an authority that, among its other functions, defines the criteria for awarding licenses and permits. This authority plays a consultative role in sector policy design. The law also defines: i) the principles relating to
65 pricing and their approval by the Minister in charge of electricity; ii) conditions for using public property; and iii) legal disciplinary provisions.
9.4 The role of regulating the sector was assigned to a cross-sector agency, the Economic Regulation Authority (ARE). Initially created for the telecommunications sector, its scope of activity was extended by Bill No. 2001-18 to include the water and electricity sectors. According to provisions under the Electricity Code, ARE is responsible for: i) drafting principles that define electricity rates; ii) processing and resolving rate and service quality disputes; and iii) ensuring that operators comply with implementing provisions.
B. MAJOR CONSTRAINTS
9.5 The electricity sub-sector is characterized by very low coverage and access rates, in both rural and urban areas. Improving the situation is made difficult by many structural and competition-related factors including gaps in human and financial resources, difficult habitat typest, poor energy resource development, and oil prices. Increased transparency, which will be made possible through improved monitoring of the sub-sector, is crucial to reversing this trend. The government's overall objective involves increasing by 2015: i) the currently less than 50% urban electrification rate to 80%; and ii) the currently less than 3% and 5% electrification rates (respectively) in rural and peri-urban areas to 40%.
9.6 Demand for electricity has greatly increased since 2000, at an annual rate of almost 10%. This demand is concentrated in Nouakchott and Nouadhibou, which account for 87% of SOMELEC’s turnover. For the city of Nouakchott, peak demand was estimated at 85 MW in 2009, while production capacity there barely exceeded 50 MW. This resulted in significant load shedding.
Financial Constraints
9.7 To attain government-set objectives for 2015 (an 80% electrification rate in urban and peri-urban areas and a 40% rate in rural and semi-urban areas), needed investments are estimated at about MRO 350 billion over 5 years. This means that current funding levels remain far below objectives.
9.8 The sector’s growth is impeded by SOMELEC’s financial situation, which is one of severe imbalance. The company has: i) an MRO 15 billion net deficit; ii) an MRO 7 million actual negative cash flow; and iii) MRO 29 billion short term commitments. This situation is compounded by: i) accumulated arrears especially by the State and the National Water Company (SNDE); ii) a high technical and non-technical loss rate (very high fraud rate mostly due to fraudulent behavior on the part of company agents in the absence of adequate coercive measures to protect the company); and iii) a fixed and inadequate pricing structure dating back to 1987 and that does not reflect changes in oil prices. These losses cannot be absorbed either by capital reduction or reserve appropriation. Urgent corrective measures are necessary.
9.9 Despite the urgency of these objectives, rural electrification is not yet
66 considered a priority sector in public investment. As a result, this sub-sector regularly suffers from insufficient budget allocations. Two framework documents, the rural electrification investment plan drafted in 2003 by Burgeap-Semis and the national energy and poverty reduction strategy drafted in 2005 were accompanied by action plans. However, they have not yet been implemented and are being updated. Rational planning appears impossible as there is no fund for financing the rural electrification plan. Based on an agreement it signed with the government, the mission to coordinate and promote the rural electrification process was entrusted to ADER. However, the management of rural electrification equipment apparently goes beyond ADER’s statutory role, which somehow operates in violation of the Electricity Code. The latter requires that all actors be holders of a license issued by the Ministry of Energy. It should be noted that a study on institutional electricity restructuring in rural and semi-urban areas makes provision for a public institution with specific resources and skills to replace ADER. This institution’s role would involve identifying homogeneous intervention areas, whether eligible or not for private sector interventions.
9.10 Due to high investment costs and lack of a regulatory and operational framework, which is clearly to its advantage, renewable energy potential remains almost totally unexploited.
Legal and Institutional Constraints
9.11 The current legal and institutional framework originated from an emergency that produced laws overlapping or even contradicting each other. Recent attempts to review this framework have not always been successful. Various studies have proposed that the institutional framework in rural and semi-urban areas be revised. These include the Energy and Poverty Reduction study, an AFD-financed institutional study, and an internal study carried out by the Ministry of Electricity following consultations with its various structures. In regard to the institutional framework in urban areas, provisions for implementing the Electricity Code should be adopted and SOMELEC’s situation clarified through specifications accompanied by provisions for rights and obligations.
9.12 Some of the constraints noted include: i) the responsibility overlap of various actors (MEP, ARE, ADER, APAUS); ii) lack of uniformity in operation management methods (absence of an asset management unit that ensures continuity of supply); iii) the need to specify network-based electrical system renewal mechanisms; iv) lack of proactive management for renewable energy development; and v) absence of a clear framework for street lighting management.
The Electricity Code
The Electricity Code is only partially enforced. The code assigns a central role to the regulatory body (ARE) as that all segments of the sector’s activities are subject to tenders above 30 kVA. As regards electrical energy, the code governs all production, transportation, distribution, sales, and purchasing activities throughout the country. Moreover, for these tasks to be fully carried out, the Code is supposed to promote: i) the harmonious development of electricity supply; ii) the creation of economic conditions that make
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investments in the sector profitable; iii) the development of consumption for all population groups and industry; iv) compliance with equitable and fair competition conditions; and v) respect for user and operator rights. The Electricity Code was designed to organize the activities of SOMELEC as a private entity following SOMELEC’s split into two separate companies, one for water and the other for electricity. As a result of a failed privatization process, the Code was never enforced and none of its implementation provisions has even been enacted. Moreover, the Code has some shortcomings, namely: i) as regards intervention norms and standards, it makes no provision for specifically addressing rural electrification and renewable energy development; ii) it does not take into account the role of local authorities especially as regards street lighting, which falls within their area of competence under the Municipalities Bill; iii) it does not clearly address the issue of facility ownership; iv) it does not specify requirements for applications for licenses and permits; and v) it does not specify the regulatory method applicable to various operator categories.
Programming and Regulatory Overlaps
9.13 According to the new laws organizing the activities of the Directorate for Electricity, this structure is responsible for: i) planning the sector; ii) programming and monitoring investments; and iii) programming and monitoring project owner representatives. In actual practice, adjustments in operational role distributions will probably be needed for greater clarity to partners. Currently governed by a project owner representative delegation agreement binding it to the State, ADER’s missions should be adjusted and become an asset management company, as defined by the institutional study. The programming of primarily cross-sector universal access projects, carried out by APAUS, is subject to the Ministry’s approval through two mechanisms: i) validation by the General Assembly, which requires prior submission to sector departments (water, energy, and ICT), and ii) the project owner representative’s approval and delegation following the General Assembly’s decision. A better connection between government objectives and specific universal access objectives is yet to be established. Moreover, given the specificity of rural electrification regulation, which in effect boils down to monitoring operator specifications, and due to an increase in the number of local operators, it may be necessary to officially delineate roles.14
Operational Overlaps
9.14 Operational overlaps primarily involve the three structures that benefit from building works contracts (SOMELEC, APAUS, and ADER) and SNIM. There is no official distinction between urban, semi-urban, and rural areas. In practice, priorities were equitably distributed among the three Delegated Works Contractors (MOD) (six sites each, given that APAUS did not finally implement the Choum site due to overlaps with ADER). Thus it is now necessary to define a set of intervention criteria, which is what the Directorate
14 The new universal access law, which assigns regulatory powers to APAUS at the request of ARE, resolved the problem of divergent interpretations of laws by these two institutions. The consultation mechanism put in place operates effectively in resolving issues raised by service delegations. However, the new law contains elements that need adjustment, including fund management and owner representative delegation agreements.
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for Electricity intends to do on the occasion of the DPCSC review.15 In particular, the current framework lacks a formal intervention structure along with the resources needed to ensure the necessary supervision of operators recruited by ARE on a license basis. APAUS has set up a structure for managing operators in five centers it created. Meanwhile, SOMELEC runs this activity and receives support from the State (outside of the official agreement), and ADER lacks the human, technical, and financial resources to carry out the operations entrusted to it.
Human Resources Constraints
9.15 Limited human resources constitute the most significant constraint on the sector’s development. Project implementation capacity is greatly hampered by severely inadequate human resources at the levels of both central administration and operators. To build capacity, it is crucial that incentives designed to attract trained personnel be offered and in particular that training sessions be organized for junior, technical, and public administration personnel.
C. RECOMMENDATIONS
Short-term Recommendations
9.16 Urgent measures necessary for rapidly improving SOMELEC’s financial situation include:
Reconstituting SOMELEC’s equity fund to the amount of cumulative deficits, which stood at MRO 21 billion at the end of December 2009;
Implementing an MRO 3 billion crash program to improve production and distribution;
Paying off State/SNDE outstanding debts amounting to MRO 10 billion;
Accelerating bill collection especially of bills owed by public administration services and the national water distribution company;
Strengthening the fight against fraud and fraudulent activities by some agents;
Reducing technical losses;
Writing off cross-debts between the State and SOMELEC, restructuring debt, and increasing the company's capital base with State support.
15 In semi-urban and rural areas, two partners, namely AFD, which has long been the sole actor in the sub-sector, and to a lesser extent the World Bank requested that actor roles be clarified. In addition, this request is what accounts for the universal access law review. As regards AFD in particular, its continuous intervention in the sub- sector depends on the appointment of a unique MOD. So far, two studies have proposed projects.
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9.17 The Electricity Code should be revised and implementation provisions enacted, especially in relation to:
Extending the intervention area to the entire sector, and especially simplifying SOMELEC's regime;
Introducing a new chapter specific to rural electrification, notably by classifying the different levels of private sector interventions (grants, leases, outsourcing, etc.);
Introducing a chapter specific to the development of renewable energy;
Based on this classification, clarifying the aptness of installations and especially the role of each stakeholder and responsibilities for developing and extending different segments (transportation, distribution, production).
9.18 Human resource constraints should also be removed to ensure planned development in the sector. In this regard, it is crucial to identify incentives that would attract trained personnel and in particular provide adequate training for junior, technical, and administrative staff.
Medium-term Recommendations
9.19 Medium term recommendations include:
Carrying out rehabilitation investments and strengthening technical management (as indicated in the CCI analytical report on SOMELEC);
Clarifying the institutional framework to facilitate private sector interventions;
Implementing a tax review that takes into consideration oil price increases. SOMELEC estimated at the end of 2008 that a 14% average rate increase was necessary to balance its operating accounts. This would result in additional inflows amounting to MRO 3.5 billion. For 2009, without a rate increase or additional subsidies, the company's budget deficit was estimated at MRO 3 billion;
Implementing a master plan detailing a development strategy for low-cost production, transportation, and distribution infrastructure. Attaining the State's objectives for 2015 requires mobilizing MRO 500 billion to finance the following development program during the next five years:
◦ Network production and high voltage transmission: i) constructing a large, gas-fired 350 MW plant by 2014 (a study is nearing completion, with a budget estimate of EUR 400 million); ii) developing the interconnected high voltage network: Nouakchott-Nouadhibou (400 kV, with a study underway with the National Electricity Agency – ONE), Nouadhibou-Zouerate (90 kV or 225 kV), and interconnecting the mining area in the north, Sélibaby-Kiffa (90 kV or 225 kV), and Kiffa-Aioun-Néma (90 kV or 225 kV); iii) constructing wind (Nouakchott,
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Nouadhibou) and solar (inland regions) power stations, with a total capacity of 100 MW, and connecting these to the network; iv) projects financed under OMVS: Constructing OMVS second-generation dams in Mali and Guinea (Félou – 115 gigawatt hour/year for Mauritania; Gouina – 160 gigawatt hour/year for Mauritania, Koukoutamba, Gourbassi, and Bouleya, with construction planned for 2017); Bakel- Sélibaby transmission line (90 kV, contract awarded); developing the OMVS high- voltage network on the Mauritanian shore (225 kV or 400 kV, with a study on the OMVS network master plan being launched);
◦ Mid-voltage transmission and distribution: i) connecting over 100 semi-urban localities to the 33 kV mid-voltage interconnected network: Kaédi-Boghé, Kaédi- Civé, Civé-Maghama-Sélibaby, Boghé-Aleg, Kaédi-Lexeiba-Monguel, through bidding (DAO) loan (in the process of seeking research funding); ii) extending the mid-voltage network to remote sites: Aleg-Boutilimit, Aleg-Maghta Lahjar, Kiffa- Guerrou, and Aioun-Tintane; iii) extending and strengthening the Nouakchott and Nouadhibou distribution networks (studies seeking funding);
◦ Electrification of remote sites: i) electrification through isolated systems powered by solar, wind, or ENR diesel-hybrid systems of 50 semi-urban areas (with a capacity of about 100 kW) involving all wilayas in Mauritania; ii) electrification by hybrid systems (wind energy/ diesel /solar/biofuel) on the coast (study available, funding gap to be met); iii) electrification of highly remote rural areas through multifunctional platforms (MFP), solar kits, and small wind turbines for battery charging stations, involving all wilayas in the country.
Making swift decisions regarding the construction of a large power plant (with dual turbines running on natural gas and oil). These decisions must fall within the framework of the electricity sector’s strategic vision and the 20-year master plan. Capacity expansion projects should be carried out at minimal cost. The government must decide promptly regarding the option of using the PPP format for constructing the power plant as this approach, which prevents the State from running into serious debt, could be supported by donors;
To support renewable energy development:
◦ A feed-in tariff incentive regime with tax credits and/or tax exemptions for inputs such as renewable equipment should be set up. The possibility of strengthening the department responsible for these areas or even of creating an agency supported by CRAER is under study;
◦ A specific service for rural electrification and renewable energy should be created. The connection between these activities and those of other entities should be formalized (land improvement, National Statistical Office – ONS, weather forecasting service, various Ministry of Finance departments, etc.).
Harmonize the various laws that govern the sub-sector by:
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◦ Reviewing instruments, especially the outdated ADER agreement, by assigning to the Ministry for Energy and Oil (MEP) the missions entrusted to it by the spirit of the 1998 reform and the decree organizing its activities. Planning a status change for ADER, transforming it into an asset management company within the new regime and as part of Sector Policy Declaration (DPS) capitalization;
◦ Providing central structures (MEP and the National Multisector Energy Committee – CNME) the tools necessary to enable them to fully play their roles of planning and coordinating the sub-sector. In this regard, the DPS should be reviewed as soon as possible;
◦ Formalizing the separation of ARE and MOD roles in consultation with the MEP. An ad hoc committee comprising MEP, the Ministry of Finance (MF), ARE, and SOMELEC should give particular attention to ARE-SOMELEC relations;
◦ Formalizing ARE’s role vis-à-vis local authorities to ensure close and effective regulation in compliance with the framework law on land use planning;
◦ Formalizing the asset management company’s intervention mechanism and defined intervention scope.
Choosing an operational framework and making the sub-sector’s strategies and action plans more transparent by drawing from accomplishments in the field and the experience resulting from implementing the first measures of the 1998 reform in terms of both regulation and MOD. Problems that arise while operating electrified sites should be resolved as soon as possible (clearing, heavy maintenance, technical monitoring of operators).
D. CHALLENGES TO IMPLEMENTATION
9.20 Major challenges include:
Lack of a clear government strategy concerning private sector participation;
Lack of clear sector investment planning;
Lack of technical capacities, especially at ARE.
E. ANALYTICAL GAPS
A World Bank-funded draft study report on reforming SOMELEC was produced in August 2008. It is expected to be finalized and to include a potential domestic and regional demand analysis;
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Production-transport-distribution blueprint: this is the MEP's major project, without which the country's energy problems cannot be coherently and efficiently resolved by 2025;16
National energy planning capacity building: project implementation carried out in collaboration with the International Atomic Energy Agency (IAEA). Finally, in addition to setting up planning tools developed by the agency as part of the global planning mechanism, plans are underway to implement energy development during the ultimate phase (2011). For 2010, the project will focus on: i) purchasing equipment for establishing a database and a GIS, and ii) covering the work group’s data collection and travel costs;
Rural and semi-urban electrification investment plan: i) adapting the rural electrification program intervention framework, specifically the preparation of instruments in the light of the institutional study conducted; and ii) adopting an objective set of criteria for intervention. This would involve updating the study conducted in 2003 by the Burgeap/Semis group to take into account the following aspects: i) evaluating current management systems, in particular as regards solar energy, to examine the possibility of systems that allow for revolving terms (pre-payment or other leasing); ii) refining network intervention criteria and prioritizing programming in relation not only to economic but also technical data (interconnection distance, post availability periods, etc.); and iii) adapting to the government-defined institutional framework;
Sector policy statement (DPS): Adapting the entire sector's organizational and operational framework so as to ensure transparency for all sector stakeholders, including the various ministerial departments;
CDMT energy: It is necessary to review spending for this sub-sector approved by the State either directly or through its donors. The goal is to concretely implement three-year action plans that resulted from CSLP objectives and various general plans. CDMT is typically the most efficient programming instrument for meeting State-defined objectives. A draft of this study carried out internally by ONE is being reviewed by sector structures;
ENR development strategy: Drafting a strategy and action plan to develop the country's abundant renewable energy resources and propose a coherent energy mix. This would involve identifying exploitable renewable energy potential and implementing mechanisms necessary for its development. The first phase should define the approach and select the most promising options for launching feasibility studies and propose a framework law and an action plan. The process should also include drafting an investment plan and creating a map of major energy potential, which should be part of the development strategy. As regards financing, the State released MRO 40 million under the 2010 budget, an amount expected to be fully committed. This project is a component of
16 In collaboration with the World Bank, which brings supplementary financing of USD 400,000, the MEP has drafted this study's terms of reference (TOR), which have been finalized, and the bidding document (DAO) is ready for launching.
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the global electrification master plan, into which it is integrated through its components related to the development of domestic resources in all energy sub-sectors. The study has various objectives: i) taking stock of resources; ii) identifying suitable technologies; iii) defining necessary investment levels; and iv) establishing standard tender documents;
Increased efforts should me made to strengthen the partnership with the International Renewable Energy Agency (IRENA), based in Abu Dhabi, in order to access its programs, when appropriate;
A pricing study on peri-urban areas: The pricing framework currently in force within SOMELEC should be adapted to economic realities. The current grid, which dates back to 1987, does not: i) specifically define charges attributable to various users; ii) set up a possible mechanism for cross-subsidization or otherwise; iii) ensure equity among customers; and iv) offer a cost structure that cuts across the entire activity chain (production, transmission, distribution, and possible purchase for resale);17
The organizational, institutional, and operational framework resulting from the reform and from various institutional studies should be finalized. Key objectives include: i) harmonizing regulations; ii) defining a set of criteria for intervention; iii) effectively transforming ADER into an asset management company (which would also resolve the recurrent problem raised by partners, namely that of institutional overlaps); iv) studying pricing; and iv) financing rural electrification. This is in support of State infrastructure management orientations, which favor private sector intervention;18
ADER's role in the rural electrification process should be reviewed. Moreover, consideration should be given to the possibility of creating a public institution with resources and skills suitable for defining homogeneous intervention areas and promoting private sector involvement.
17 Although a study conducted in 2003 provides some clues, these are not based on a method that takes into account the entire activity chain. Department-drafted Terms of Reference (TOR), ARE, and SOMELEC are a first step toward an indispensable regulatory system. It has been proposed that the funding initially meant for an audit in PPIAF financing be allocated to this project. The department proposed allocating the budget to the PACAE project instead of the audit that was planned and even carried out. 18 Although about 20 centers are currently being managed by ARE-recruited service delegates, some adjustments will need to be made to ensure service and equipment sustainability and to establish indispensable monitoring mechanisms. To optimize experience feedback, this support measure will span a period ranging from one to three years.
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10. ROAD AND MARITIME TRANSPORTATION
A. CONTEXT
10.1 Road transportation plays a vital role in the Mauritanian economy as great distances separate current or potential production zones from consumers and exporters. Estimated at a total of 11,000 kilometers, the country’s road network comprises 2,900 kilometers of asphalted roads, 1,225 kilometers of rehabilitated earth roads, and 6,880 kilometers of tracks.
10.2 From an institutional point of view, recent reforms in the sector have eliminated monopolies and considerably reduced road transportation costs for passengers and goods. This change is due in particular to the elimination of the formerly FNT-managed and dominated National Transportation Unit (BNT). The road transportation sub-sector reform, which was launched in 1998 and took effect in 2005, revolves around two major pillars: i) liberalizing the sector’s activities; and ii) setting up a national road safety strategy. Liberalization entailed eliminating the National Transportation Unit’s (BNT) monopoly on the management and allocation of freight and passengers. This system resulted in: i) artificial fleet overcapacity; ii) transportation costs higher than those that could have been generated by a truly competitive market; iii) lack of operator competitiveness (dilapidated equipment, lack of professionalism); and iv) poor quality of service. As part of the road transportation sub-sector reform, Decree No. 1043/MET of November 9, 2005 eliminated the BNT as well as the service rota and the delivery of departure records. Weaknesses include delays in scheduled studies and in considering supporting measures.
10.3 The national road safety strategy was set up with the support of a five-year action plan (2006-2010), which included the adoption of a new highway code (Decree No. 2006-047 of December 6, 2006 and its implementing Decree No. 2007-006 of January 5, 2007). The plan aims to halve the number of road accidents in five years while reducing the severity of accidents as well as the death toll. Significant progress has been made, notably in: i) drafting statutory instruments; ii) drafting and disseminating a new highway code; and iii) sensitizing users to road safety issues.
10.4 Maritime transportation services are mainly provided by foreign companies, most of which are not established in Mauritania and are only represented in the country by local, independent maritime agents or subsidiaries of their group. Other stakeholders in Mauritania’s maritime sub-sector include the different professions involved in the maritime passage of vessels and goods, namely shipping agents and ship consignees, handlers and goods consignees, and forwarding agents. Bill 95/009 of January 31, 1995 on the shipping code is the main reference document for the maritime transportation sub-sector's legislative and regulatory framework.
10.5 Mauritania has two sea ports, Nouakchott and Nouadhibou, both facing serious capacity constraints. Nouakchott has an off-shore port, which was completed in 1987 on a rectilinear shoreline without a natural sheltered site. The Nouakchott autonomous port, also known as the “Port of Friendship” (PANPA), is a public institution created by Decree No. 87/253 and modified by Decree No. 91/076. Decree No. 86/177 sets the boundaries of the 867-
75 hectare maritime public property and exclusive State property constituting the Nouakchott port zone. Technically supervised by the Ministry of Equipment, it is a financially autonomous industrial and commercial public institution with a legal personality. The autonomous port replaces the State in all its rights and obligations relating to infrastructure, estate, equipment, and tools entrusted to it by the State. These, however, remain State property.
10.6 The mutual relations and obligations of the State of Mauritania and the Nouakchott Port Authority are governed by a program contract. The first program contract ran from 1993-1995, the second ran from 1996-1998, and the third was scheduled to enter into force in January 2007. This program contract sets the port’s performance, management, and investment objectives as part of its development plan as well as the measures to be implemented by contracting parties to attain these objectives. The port's infrastructure traffic capacity was estimated at 900,000 tons in 2000. However, according to port data, traffic reached 1.82 million tons in 2005 while the average wharf occupancy rate was estimated at 66%. The port’s maximum capacity was evidently underestimated and the port is apparently not completely saturated. However, traffic levels attained in 2005 show the urgent need to extend current port infrastructure.
10.7 The Port of Nouadhibou is located in the small Cansado Bay on the southeastern shore of the Ras Nouadhibou peninsula, which borders the larger Levrier Bay. The Nouadhibou site includes independent port infrastructure: the Autonomous Port of Nouadhibou, the SNIM ore terminal, the oil wharf of the Mauritanian Refining Company (SOMIR), and the small-scale fishing port located in Baie du Repos. Decree No. 98/079 sets the boundaries of the port's maritime and land public property. The status and operation of the port are governed by: i) Decree No. 73/035 creating a public institution for managing port facilities; ii) Decree No. 83/186 reorganizing the institution itself; and iii) Decree No. 2000/151 modifying Article 2 of Decree no. 83/186. The port is a financially autonomous industrial and commercial public institution with a legal personality. It has operated under the supervision of the Ministry of Fisheries and the Maritime Economy (MPEM) since1983. The autonomous port is financially responsible for operating, maintaining, and renovating the facilities entrusted to it. Its annual program, multiyear investment programs, budget, balance sheet, and financial accounts are jointly approved by the Ministry of Finance and the Minister directly responsible. Mutual relations and the obligations of the Mauritanian government and the Nouadhibou autonomous port are governed by a program contract. The first program contract ran from 1996-1999, the second from 2001-2003, and the third from 2004-2006.
B. MAJOR CONSTRAINTS
10.8 Global and structural constraints affecting the development of the transportation sector are related to, among other factors: i) the vastness of the territory; ii) weak public investment capacities and inadequate technical, financial, and human resources relative to the sector's needs; iii) inadequate and sporadic road maintenance due to the poor management of highway funding; iv) failure to upgrade airport facilities and equipment; v) lack of staff training; vi) inadequate port access, processing equipment, and facilities; vii) difficulties related to applying legislative and regulatory instruments; viii) lack of investment in port infrastructure while the country’s development continues to be hampered by high ocean freight rates, resulting
76 in a lack of competitiveness at regional level; and viii) the absence of a strategy promoting public-private partnerships in the sector.
10.9 The sector lacks a clear vision that would reflect the challenges it faces and a strong political commitment to make decisions that would promote its development. However, the sector's development is crucial to that of other social and economic sectors such as health, education, mining, energy, agriculture, livestock breeding, fishing, and tourism. The sector also lacks medium- and long-term action plans.
Road Transportation
10.10 Today, not all regional urban centers have asphalted roads.19 Developing improved earth tracks, which cover parts of the mughaatas, does not provide an efficient and sustainable solution as these roads become impracticable each year and their annual maintenance and rehabilitation costs are very high. The poor state of the road network stems largely from inadequate maintenance resources.
10.11 From an institutional perspective, the fragility of the system and the absence of supporting measures account for the sector’s state of disarray. For instance, its tax status has barely progressed even though one of the topics that was open to discussion was the implementation of measures aimed at encouraging transportation operators to renew and/or rehabilitate their fleet, a temporary reduction or postponement of dues and taxes on imported vehicles and spare parts, registration dues, and taxes, etc.
Maritime Transportation
10.12 The Nouakchott seaport currently handles twice the annual volume of operations initially planned (2 million tons as against an expected 1 million) and urgently requires expansion. At present, the port cannot handle higher volumes. Its costs are among the highest in the continent (twice those of Dakar). Waiting times for docking are very long. According to projected estimates, potential traffic volumes could reach 4 million tons in 2015 and 8 million tons in 2025. Already, 25% of cargo destined for Nouakchott goes through the Dakar seaport. Finally, construction of the port in the 1980s provoked considerable environmental damage, which must be remedied. In particular, the presence of port facilities has modified the coastline, resulting in regular erosion of the southern shore.
10.13 The Nouadhibou seaport facilities do not comply with safety requirements, especially as regards handling hydrocarbons. This hampers regional economic development, notably fishing. In 2005, Typsa, a Spanish consultancy, carried out a feasibility study on the Nouadhibou fishing port expansion project. In its conclusions, the consultancy presented two expansion alternatives south of the lighterage wharf to be granted to the SAMMA Corporation (Variants 1 and 2) and two other expansion alternatives that would include the Trade Center and the area south of the lighterage wharf. With the support of international consultants (Catram Consultants – Le Havre Port Authority), a discussion is underway regarding the coordination of
19 Selibaby and Zouerate do not yet have an asphalted road network, though Zouerate is one of very few cities with a railroad link to Nouadhibou.
77 port activities (fish products, container and bulk cargo, hydrocarbons, etc.). The goal is to reach a coherent plan that would support regional development through an integrated approach.
C. RECOMMENDATIONS
10.14 Regarding the sector in general, measures to be taken should include:
Applying/adapting regulatory texts governing the organization of the sector; Implementing reform support measures for the road transportation sub-sector; Creating the institutional and regulatory framework for promoting public-private partnerships; Drafting master plans for infrastructure development. 10.15 More specifically, the following measures should be implemented following the time frames listed below.
Road Transportation
Short-term Recommendations 10.16 Road sector priorities include:
Revising or adapting the road maintenance institutional management framework and setting up an adequate and sustainable funding mechanism, and in particular, strengthening funding sources and Road Fund (FR) management; Carrying out road investment programs that would promote regional and sub-regional integration (road network to Mali from Algeria, Morocco, and Senegal). All road network expansion programs should include recurrent costs and sufficient FR allocations; Build rural tracks to improve the transportation of local produce to markets. This must form part of a national rural development and opening-up strategy; Providing assistance to road transporters for renewing and/or refurbishing their fleet through the creation of a support fund and/or the implementation of adequate one-off tax measures.
Medium-term Recommendations Draft a road network expansion master plan; Draft a national transportation plan; Draft a sub-sector policy document on urban transportation.
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Maritime Transportation
Short-term Recommendations 10.17 Measures required for the maritime sub-sector include:
Rehabilitating and developing the Nouakchott port infrastructure through a public-private partnership (PPP). This would entail sustainably upgrading infrastructure by constructing two operational areas: one for container traffic and the other for bulk cargo, including hydrocarbons. Specific measures must be implemented to limit coastal erosion given that this currently involves eight kilometers of coastline south of Nouakchott. A Chinese company is currently building a second dock funded by Exim Bank China. In addition, a third dock could be built through PPPs by private operators specializing in port management with assistance from the State, which would be responsible for finding donors; In-depth restructuring and rehabilitation activities should be carried out in the Port of Nouadhibou. This will require addressing the wreckage problem – more than 100 wrecks in total – which poses a major threat to navigation and the environment. A project for extracting 55 pieces of wreckage will soon be launched with the financial support of the European Union. The expansion of the Nouadhibou autonomous port for fishing is planned thanks to Spanish financing totaling EUR 18 million. The expansion of the SNIM-managed ore port has also been planned, with the objective of increasing the tonnage of ships that can be loaded from 150,000 to 180,000 tons and to increase loading capacity from 5,000 to 10,000 tons per hour, for an annual loading total of 26 million tons.
Medium-term Recommendations Simplifying the institutional organization of the Nouakchott and Nouadhibou ports. Because the Directorate of Merchant Marine (DMM) is linked to the Ministry of Fisheries and the Maritime Economy (MPEM) and the latter is the national legal maritime authority and the main institution in the maritime transportation sub-sector. The Nouakchott seaport is attached to the Ministry of Equipment and Transportation; Updating the legislative and regulatory framework. Bill No. 95/009 on the shipping code is the main reference document in the maritime transportation sub-sector's legislative and regulatory framework. However, since its promulgation in 1995, this bill has not been supplemented by implementing provisions. Other major texts governing the sub-sector’s regulatory framework relate to port organization and operation and to requirements for engaging in maritime professions and for obtaining the necessary permits.
D. CHALLENGES TO IMPLEMENTATION
10.18 To implement these measures, Mauritania’s transportation sector needs to confront a number of current challenges, which include:
Overcoming political apathy: The measures described above depend on political will in
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the country to implement institutional reforms; Capacity building: The skills required for implementing projects in the transportation sector are limited, especially as regards technical and fiduciary skills (financial management and contract awards); Improving governance: The transportation sector faces poor governance, resulting in funds being used inefficiently and for purposes other than those for which they were intended; Redefining responsibilities: Roles within government agencies are not formally defined. This lack of clarity as regards responsibilities is a hindrance to the proper functioning of the sector; Reorganizing public institutions: Institutional arrangements are inadequate, as exemplified by the ports of Nouakchott and Nouadhibou being managed by different ministries; Securing financing for road maintenance: Funds allocated for road maintenance and rehabilitation are insufficient. Funding must be secured to ensure the sustainability of investments.
E. ANALYTICAL GAPS
10.19 Some major studies, now available, have been conducted in the sector, among which are the Transportation Sector Plan (PST) and the multimodal study on transportation. These studies must be updated and consolidated into one to define and finally adopt an umbrella strategy for the entire sector. As regards maritime transportation, the Nouakchott Port Development Scheme must be finalized.
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PART IV: DEVELOPMENT OF THE PRIVATE SECTOR AND GROWTH SECTORS
11. THE INVESTMENT CLIMATE
A. CONTEXT
11.1 The competitiveness of private sector operators is hampered by low productivity. More specifically, the 2007 Investment Climate Assessment (ICA) found that the productivity of Mauritanian manufacturing companies stood at around USD 3,042, compared with USD 6,464 in Mali and USD 8,989 in Senegal. This weak labor productivity is coupled with relatively high wages (USD 157-250, compared with around USD 85 in China, USD167 in Brazil, and USD 241 in South Africa). In addition, indirect and hidden costs associated with transportation, electricity supply, telecommunications, the regulatory environment, customs clearance, and corruption amount to 12% of company sales (2006), compared with 8% in Burkina Faso (2006), 6.5% in Benin (2004), and 4.6% in Mali (2007). Consequently, Mauritanian exports are limited and the level of foreign direct investment (FDI) remains relatively low for lack of investment opportunities other than in natural resources.
11.2 Mauritania has been engaged in a process of economic liberalization and state withdrawal from productive and commercial sectors for almost the past three decades. A privatization program was launched in 1992. In the late 1990s, around two-thirds of public enterprises were liquidated or privatized, although SNIM and SOMELEC remain in the public domain. The mining sector has been opened up to private investment. The banking system was restructured in 1992-1993 to stimulate financial intermediation by writing down non-performing
11.3 A wide range of reforms has been undertaken including trade reform, regulatory and administrative reform, tax reform, and customs administration reform. Trade reforms have focused on: i) eliminating non-tariff barriers and quotas; ii) eliminating monopolies and import and export licenses; iii) rationalizing and reducing tariffs; iv) eliminating customs exemptions; and v) modernizing procedures. All customs duties are ad valorem, making the tariff system more transparent. Regulatory and administrative reforms have also been implemented including the strengthening of the one-stop window and a series of modifications to the Investment Code of 2002 (which introduced a system of duty-free points designed to boost exports), the most recent of which was in introduced in 2009. The Mining Code adopted in 1999 introduced tax incentives and simplified procedures for awarding mining concessions. Tax reforms have moved forward in several stages, with two overriding targets: i) encouraging economic investment and activity; and ii) broadening the tax base to increase tax revenues. Customs administration reforms have included the alignment of trade tariffs with the WAEMU classification, the modernization of management software, and the reorganization of the Central Customs Office (DGD). Lastly, various measures taken in recent years to strengthen administrative capacity have not had the expected impact. These have principally focused on the reorganization of ministries, inter-ministerial coordination, personnel changes, and the development of computer data management systems. Nevertheless, when it comes to administrative practices with a real impact on companies and economic diversification, less
81 progress has been made in reforming public institutions and improving the legal and judiciary framework for investment.
11.4 The authorities have implemented reforms to governance, such as the implementation of the Extractive Industries Transparency Initiative (EITI), the adoption of a code of ethics for civil servants, and a law on the wealth of top government officials. A national strategy to fight corruption is in the process of being adopted, covering all sectors of the economy including the civil service, the judiciary system, the management of natural resources, public finances, the real estate and public works sector, public markets, tax and customs, the police and security forces, and electoral corruption.
11.5 The creation of a Directorate for the Promotion of Private Investment (DGPIP) and, subsequently, of the CPI demonstrates the importance placed by the authorities in the private sector and in public-private partnerships. The recent setting up of the National Monitoring and Evaluation Unit, which is responsible for managing projects deemed sensitive (according to a mission document issued by the President of the Republic) should strengthen the State’s actions in this area. That said, the overlapping of prerogatives and the lack of coordination between different institutions are set to create additional challenges that the State must resolve if it is to achieve the desired effectiveness. Measures must be taken to clarify the roles of different entities and internal relations between them. Moreover, the CPI plans to prepare a private sector development strategy20 in order to: i) confront the constraints impeding the growth and competitiveness of the private sector nationally; and ii) encourage the growth of foreign direct investment (FDI).
B. MAJOR CONSTRAINTS
11.6 Despite the reforms undertaken to encourage private initiative, the general investment climate is not favorable to any segment of the private sector. Reforms, which have been implemented in fits and starts, have not all had the expected results in the absence of appropriate follow-up measures. Consequently, the liberal orientation of the economy needs to be reflected in a higher priority being placed on the development of the private sector, allowing it to fully play its natural role as an economic engine of growth. In addition, measures will have to be taken to eliminate the constraints and bottlenecks that hinder the promotion of both domestic and foreign private investment.
11.7 Private operators have a poor perception of the business environment. It is therefore essential to continue pursuing political and economic reforms to improve the investment climate. Mauritania ranks toward the bottom of the rankings in the World Bank’s Doing Business Report (2010), being ranked 166th out of 183 economies, behind Senegal (157th) and Burkina Faso (147th). According to the World Economic Forum’s 2008-2009 Global Competitiveness Index, Mauritania is ranked 131st out of 134 countries in terms of competitiveness, well behind Senegal (96th), Mali (117th), and Burkina Faso (127th). The principal obstacles to the development of the private sector are the following (ICA, 2007):
20 The overall objective of this strategy is to: i) create a supportive environment for the sector’s development by reducing the principal constraints on it; and ii) enhance the sector’s growth and competitiveness, especially that of small and medium-sized enterprises (SME).
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The under-development of financial markets, limited access to credit, often too-high requirements for bank guarantees, and costly financing for companies operating in the formal sector; Taxation and the administration of tax policy; Anti-competitive practices by companies; Unreliable infrastructures and poor access to electricity (analyzed in a preceding section); Administrative and regulatory procedures relating to customs and external trade; A shortage of qualified workers (analyzed in a preceding section); Corruption; The operation of the judicial system; The lack of structured public-private consultation and a framework for public-private partnerships; The underdevelopment of financial markets, limited access to credit, and the high cost of financing. 11.8 The role of the financial sector in the development of the country’s economic fabric remains marginal because of its insularity, lack of stable resources, and above all the difficulty of accessing financial services, which are generally restricted to a small and privileged clientele (less than 3% of the population has a bank account or uses banking services).21 In addition, access to bank financing remains difficult, especially for SMEs. As a result, companies make little use of it, creating a distortion in the allocation of credit to the detriment of small firms. As some commercial banks (six in total) belong to commercial and industrial groups, the banking system is highly segmented and characterized by limited competition. According to the 2007 ICA report, approximately 72% of firms requiring bank credit abstained from using the banking system. This situation is exacerbated by the general absence of reliable financial statements and the weakness of the accounting profession. Difficulties in providing guarantees also accentuates the problem of accessing bank credit. For example, the trade register on which these guarantees are supposed to be recorded is not operational, and title deeds can only be obtained by first acquiring temporary deeds. The rejection rate for loan applications is high at around 60%, often because companies are unable to supply the guarantees demanded by banks. The length of debt collection procedures also explains the caution shown by banks in granting loans.
11.9 The institutions and financial services, whose role is to support the development of SMEs, are in an embryonic state. The microfinance sector is still emerging, institutions are dependent on subsidies, and regulation and supervision of the sector leaves much to be desired. The insurance sector has not achieved its potential, and the social security system has experienced serious difficulties that have wiped out almost all of the reserves in its retirement
21 The institutions that make up this sector are concentrated in a few large cities whereas the national territory is vast. On December 31, 2008, ten banks were in operation (three foreign-owned, one with mixed capital, and six nationally-owned), one financial institution (Financial Commodity Investments – FCI), seven insurance companies, a microfinance industry comprising four networks, around 40 independent institutions, one national social security fund (CNSS), and one postal financial service.
83 fund.22 The financial services offered by the national Postal Service are also in a difficult situation and are dependent on just two institutions, one specializing in lease-financing and the other in loans to SMEs and farmers. Neither of these two institutions performs its role properly as the first requires a double guarantee in the form of the pledged asset and a title deed while the second makes loans that are too large for SMEs. There are no factoring or venture capital firms. In addition, the payment system remains archaic, relying on manual compensation and only just beginning to use electronic payment instruments.23
Taxation and Tax Policy Administration
11.10 Despite the simplification of the tax regime for microenterprises introduced in 2008- 2009,24 the cost of complying with tax rules remains high, especially for SMEs. Few companies including SMEs are registered, with the result that they remain in the informal sector. Moreover, nominal taxation on SMEs is higher than that on large enterprises. The General Directorate for Taxes (DGI) still lacks a reliable database covering companies other than large taxpayers, which already pay tax regularly. As for tax fraud, almost 50% of incomes is not declared (ICA, 2007). Until recently, the DGI did not collect data on its small base of taxpayers for lack of a single tax identifier.
11.11 The proposed Investment Code of 2009 includes tax incentives that are susceptible to being a major source of competitive distortion and non-transparency.25 More specifically, the proposed code is based on temporary and dispensatory incentives that could result in: i) costly distortions in the economy; ii) non-transparency in the allocation of incentives; and iii) difficulties in managing the cost of tax incentives and ex-post control of eligibility criteria. Tax and customs incentives would be allocated by an individual certification mechanism based on fairly complex criteria linked to the sector and the location. The draft proposal also includes a provision for granting specific tax and customs incentives on a case-by-case basis – i.e., more generously than for standard incentives. In addition, the proposed code provides for a specific tax incentive regime in free trade zones, although no preliminary analysis has been made to establish a strategic development plan for these zones, the types of tax regimes, or any incentives that
22 The recent promulgation of Decree No. 26/07 of April 9, 2007 repeals, replaces, and modifies certain provisions of Bill 93.040 on the insurance code. This has made it possible to raise the minimum capital requirement of insurance companies from MRO 80 million to MRO 300 million and constitutes one of the first measures taken to strengthen this sector. 23 Efforts made during the year have resulted in the recent adoption of a law on electronic means of payment, which includes electronic verification, and the June 2007 launch of a bank card valid nationwide. Further measures are set to be taken to secure and modernize the payment system for all means of payment (including electronic payments). 24 The new tax regime introduced the following measures: i) the minimum tax threshold on industrial and commercial income (ICI) was increased from MRO 3 million or MRO 6 million (depending on the sector) to MRO 30 million; ii) the rules governing ICI were simplified, with a flat tax rate on all companies amounting to 3% of sales; and iii) the flat-rate regime became declaratory instead of presumptive, with declarations made on a simple form. In addition, some organizational reforms to the tax administration system were made in 2008-2009, including: i) companies with sales of between MRO 30 million and MRO 100 million now being covered by the Directorate for Medium-sized Enterprises (DME), while the Directorate for Large Enterprises (DGE) continues to cover companies with sales of over MRO 10 million; and ii) a Tax Office (CDI) was created to simplify relations with taxpayers. 25 The Investment Code of 2009 is due to replace the 2002 Code, which essentially introduced a duty-free points regime but was barely used in practice.
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Anti-competitive Practices by Companies
11.12 Although Mauritania’s economic performance has been satisfactory, the liberalization of economic activities has not gone hand-in-hand with regulatory changes to support the development of companies. This has given rise to unfair competition between economic operators. Some interest groups and large monopolies or national oligopolies tend to adopt practices that limit or distort competition, principally with the objective of appropriating the advantages of reform to investment and trade. It is therefore essential to strengthen competition to promote investment and to encourage companies to operate in the formal sector.
11.13 Existing tax and investment incentives are liable to creating distortions to the detriment of already limited public resources. The application of the same general tax regime to all investors would be beneficial since it would prevent any form of discrimination between market operators. In addition, the lack of transparency in the procurement system may encourage companies to adopt anti-competitive behavior. Large contracts fall under the purview of the CCM, which is responsible for their regulation and control, the filing of appeals and complaints, assessment, and attribution. The attribution of public contracts is not sufficiently transparent, the Public Procurement Code (2002) does not meet international benchmarks, and the massive centralization of this process is not mitigated by any electronic system. In light of the weaknesses of the procurement system, the authorities are in the process of drawing up a new public code.
11.14 The existing basic legal framework in the area of competition has never been implemented since implementation decrees have not been adopted. Consequently, the institutions responsible for its implementation, such as the Market Monitoring Committee (CSM) or the Directorate for Competition, Consumer Protection, and the Fight against Fraud (DCPCRF) have remained inactive in this area. In addition, Mauritania has no cost-benefit analysis mechanism to rationalize the raft of subsidies and incentives granted by the State.
Administrative Procedures and Regulations Relating to Customs and External Trade
11.15 The existence of administrative and regulatory barriers, especially the complexity and cost of procedures for creating a business and obtaining permits, is an obstacle to the entry of new operators into the Mauritanian market. Although the one-stop window has been inactive, its revitalization will make it possible to bring together in a single space all the formalities necessary for business creations and for approval of a project under the investment regime.
11.16 Customs and external trade regulations continue to be viewed as heavy constraints by companies in the manufacturing sector (33.8%) and the commercial sector (29%) (ICA, 2007). Mauritania has already taken measures to improve customs administration, including: i) a reduction in the minimum customs duty from 3.5% to 3% to align tariffs with the WAEMU classification; ii) an improvement in the management of customs procedures through the modernization of management software and connection to the Internet (ASYCUDA++ system); iii) an assessment of the possibility of clearing customs in stores and private clearance zones located inside or outside port areas; and iv) the reorganization of the customs department.
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According to the Doing Business 2010 report, Mauritania is ranked 163rd out of 183 countries in the area of cross-border trade. Beside high transport costs, some administrative complexities still have to be overcome. For example, import times (42 days) and export times (39 days) are higher than the Sub-Saharan African average (39.4 days and 33.6 days, respectively). Similarly, the number of documents required for imports (11) and exports (11) exceeds the African average of 8.8 and 7.8, respectively.
Corruption
11.17 Corruption has deep roots that reflect decades of development based on a fixed income stream. These practices, which have marked the country’s political and administrative institutions, weaken responsibility. According to the 2007 ICA report, corruption is a common practice that appears to have become second nature within companies and represents a heavy cost for them at around 3% of their annual turnover and 6.2% of their revenues, with a levy of 10% on public contracts that leads to the virtually automatic over-billing of costs. Moreover, out of fear of retaliatory measures, companies are reluctant to denounce corruption.
11.18 Corruption is present at several levels of the public administration services. In this area, Transparency International ranked Mauritania 130th out of 180 countries in 2009. Transparency International’s global corruption barometer suggests that the judicial system is considered one of the most corrupt institutions, after political parties, Parliament, and the private sector, and level with the police force. Corruption within the judicial system takes the form of: i) selective access to justice; ii) manipulation of evidence; iii) rushed handling of legal cases; and iv) hidden costs (some legal taxes are deducted on the basis of an official decree). Corruption in the oil sector, for example, also occurs at several levels: i) legislative; ii) political; iii) in the conception of policies (where massive corruption is rife); and iv) in public procurement through illegal profits in return for approval of a variety of operational and commercial activities (administrative corruption).
11.19 Because of the low level of foreign investment and the small size of the national market, the private sector depends heavily on public contracts. In the area of public procurement, corruption takes various forms, including: i) project identification and design; ii) the publicizing, pre-qualification, preparation, and submission of tenders; iii) tender evaluation and the attribution of contracts; and iv) the execution, administration, and follow-up of contracts. The attribution of contracts on preferential and arbitrary bases has been an accepted practice for many years. Major reforms have been implemented to create a framework that complies with the norms of good governance. The creation of the CCM, with a basic structure and procedures, and the drawing up of a national code of public procurement are moves in the right direction. Large contracts fall under the purview of the CCM, which is responsible for their regulation and control, the filing of appeals and complaints, their assessment, and their attribution. However, the blocking of the public procurement code, which was established and validated in 2006, demonstrates the level of internal resistance to implementing reforms. The attribution of public contracts lacks transparency and the process is not facilitated by any electronic system. Conscious of these delays, the new authorities have underlined the importance of this code and have pledged to ratify and implement it as soon as possible.
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Operation of the Judicial System
11.20 The judicial system does not contribute to the development of the private and financial sector, the honoring of contracts, or debt collection. Major reforms undertaken in recent years including a revision of key legal texts have not had a concrete impact because of the lack of implementing decrees (the Commercial Code of 2000 is an example of this). Inefficiencies in the judicial system have multiple consequences on: i) the economy, with reduced investment; ii) society, with rising inequality and a widespread sense of injustice that threatens social cohesion; and iii) politics, with the judicial system acting in effect as a controlling power and a counterweight to other levels of state power.
11.21 The principal constraints on the proper operation of the judicial system also have an adverse impact on the development of the private sector as a result of: i) uncertainty regarding applicable laws (as citizens have a better understanding of traditional Koranic law than of modern law, the formal judicial system, which does not reflect Koranic law, is often applied ineffectively); ii) the reach of the law (lack of publicity and access and the weakness of education and legal training); iii) illiteracy; iv) the absence of systematic codification of legal acts, a lack of reliable sources of legal documentation and information, and a lack of public access to them; v) the chronic shortage of judges (173), clerks (144), and administrative personnel (54), as the 2005 report on the judicial system highlighted;26 vi) the fact that many judges are members of political parties that represent tribal and/or regional interests, which affects their impartiality; vii) the lack of training of magistrates; viii) insufficient pay for judges, which encourages corruption; and ix) inadequate working conditions, particularly poorly maintained buildings and equipment and hand-written legal rulings.
Lack of Structured Consultation and a Framework for Public-private Partnerships
11.22 Structured public-private dialogue remains modest in many areas. This is due in part to the absence of a prevailing culture in this field and the lack of appropriate mechanisms and tools despite the existence of a state-public sector consultation structure put in place by the Government. Professional associations and organizations representing the private sector suffer from internal disorganization and a lack of technical capacity, which limits the value of their contributions to the dialogue. For decades, these organizations played a merely symbolic role as they only represented large economic groups keen to preserve special individual privileges without consideration for the national economy or the collective interest of the sectors they were supposed to represent. In exchange, they provided support to the Government.
11.23 There is no formal framework for public-private partnerships including specific legislation and a Public-private Partnership (PPP) unit. Such a framework would allow the State to free up resources and to focus its efforts on economic areas, where its presence is indispensable. A legal framework has already been created in the electricity, water, and telecommunications sectors, where regulatory mechanisms have also been introduced for PPP- type projects. In addition, the creation of the Directorate for the Promotion of Private Investment
26 It is estimated that an additional 60% of judges are needed for the courts to function effectively within the existing framework. Of 35,000 civil servants, the judiciary employs just 550, including only 180 magistrates for the entire country.
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(DGPIP) and, subsequently, the CPI27 demonstrates the importance placed by the authorities on the promotion of investment, the development of the private sector, and public-private partnerships.
C. RECOMMENDATIONS
11.24 To remedy the deficiencies that have been identified, the government intends to: i) implement concrete measures in the short and medium term; ii) continue implementing the recommendations of the 2007 ICA report and the report on the sources of growth (CEM, 2009); and iii) improve the country’s ranking in the Doing Business report. The principal measures envisaged are summarized below.
Short-term Recommendations
11.25 Finalize the proposed Investment Code of 2009 by: i) evaluating it within the broad context of company taxation; and ii) removing the articles under Title III.2 on free trade zones, duty-free points, and special economic zones, and including a single article mentioning the existence of free trade zones and special economic zones without providing details;
Assess the feasibility of creating a special economic zone as a tool for promoting reforms to the investment climate. To this end, a multi-sector Special Economic Zone/Free-trade Zone working group should be established by ministerial decree by the Ministry of Public Finances and Development (MAED) and involving the ministries and public administration services concerned.
Financial Sector
Continue opening up the banking sector to foreign competition and favor its enrichment by new institutions (leasing, factoring, and venture capital companies). The objective is to improve access to bank credit especially for SMEs together with the quality and cost of financial services;
Streamline and reinforce the microfinance sector;
Strengthen the ability of SMEs to produce reliable financial statements;
Put in place a central financial information management unit (credit bureau);
Implement the action plans included in the 2006 Financial Sector Assessment Project (FSAP) to improve the overall operation of the financial sector.
Tax Policy Strengthen the rights, guarantees, and right of recourse of taxpayers;
27 The CPI plans to draw up a private sector development strategy. The overall objective of this strategy is: i) to create a favorable environment for the sector’s development while reducing the principal constraints on it; and ii) to enhance the sector’s growth and competitiveness, especially that of small and medium-sized enterprises.
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Ensure a continued effort to train DGI agents;
Conduct a survey of the cost of tax and non-tax formalization (company registration and tax registration) to measure and reduce the process.
Competition
Identify key sectors and conduct in-depth analyses aimed at orientating the strategic approach toward tackling anti-competitive practices (for example, in cement, consumer goods, staple foods, and network industries);
Strengthen existing capacities and, in particular, provide the Ministry of Trade with a clear vision of the legal, financial, and human measures required to tackle anti- competitive practices effectively. This includes measures to defend competition policy, build awareness, and education about competition policy.
Administrative Barriers to Business development
Revitalize the one-stop window in order to continue simplifying administrative procedures and formalities and to make them less time-consuming;
Create a program to improve Mauritania’s position in the Doing Business ranking by undertaking reforms aimed at: i) eliminating the minimum capital requirement for creating a business; ii) reducing the cost, number of days, and number of procedures needed for creating a business; iii) developing cross-border trade and shortening customs procedures; iv) improving the granting of building permits; and v) strengthening investor protection.
Customs Administration
Bring the ASYCUDA++ system into service in order to produce reliable information destined for economic players and policymakers.
Judicial Sector
Reinforce the sector’s contribution to the honoring of contracts and debt collection by: i) revising existing laws to simplify the acceptance of personal and property securities; ii) strengthening land tenure; iii) promulgating the law on debt collection; iv) improving the status and expertise of magistrates; and v) creating business courts in all the wilayas.
The Fight against Corruption
Finalize consultations on the national anti-corruption strategy before its adoption;
Finalize and adopt the public procurement code.
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Medium-term Recommendations Strengthen the capacity of professional associations and employer organizations, notably through: i) targeted training and supervisory measures; ii) technical assistance; and iii) adequate financial support;
Draw up a national private sector development strategy identifying the policies and instruments necessary to improve the business environment and to promote the development of the private sector, investment, and economic growth;
Develop a framework for public-private partnerships by creating a suitable legal and institutional framework. In collaboration with the new national agency for studies and the monitoring of projects, the CPI will be tasked with assisting, advising, supporting, and following up partnership contracts at different stages of their life in liaison with the ministerial departments concerned;
Strengthen public-private dialogue by putting in place consultation cells that allow for greater participation in the reform process;
Define a strategic development framework for special economic zones by: i) identifying objectives and pilot projects; and ii) pre-selecting the types of zones based on the objectives and characteristics of the envisaged regulatory and administrative regime or regimes.
Tax Policy
Reduce the withholding tax on commercial and industrial earnings to 1% and encourage periodic installments; Create the status of Certified Management Center (CGA) to support microenterprises on the fixed-rate regime beginning with the creation of a suitable mechanism (setting of the tax rebate offered to member microenterprises and CGA obligations); Adopt measures to: i) simplify start-up and operational procedures for microenterprises; and ii) facilitate access by formalized microenterprises to public markets and to financing. Competition
Adopt a strategy to tackle anti-competitive practices; Improve and develop the legal framework for competition (currently included in the Commercial Code) by issuing implementation decrees creating a detailed set of regulations to control and suppress anti-competitive practices. Judicial Sector
Revise sector codes (for example, the Commercial and Employment codes) by adapting
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the general provisions of the Investment Code to specific conditions in each sector via individual clauses that reflect the typology of each activity and the concrete needs of operators; Strengthen the judicial system in accordance with the action plan in the final report on the justice system (November 2005) by focusing on: i) the training of magistrates in business law (specialization); ii) improving performance (shortening legal proceedings and improving the quality of rulings); iii) developing transparency (publication of decisions); iv) lightening the load of judicial inquiries; and v) ensuring the fairness of rulings.
D. CHALLENGES TO IMPLEMENTATION
11.26 The success of reform to the investment climate and the implementation of the above recommendations remain limited by:
A lack of technical capacity among both public and private sector operators; The need to introduce a solid infrastructure consisting of coherent and interdependent elements including the legal system, financial transparency, governance, the payment system, information technology, and the drive against corruption and money laundering; Poor compliance with tax laws; The oligopolistic structure of the market, which is dominated by interest groups; Limited information and data on the informal sector; The absence of sectorial data and economic analyses identifying the opportunities and risks associated with special economic zone regimes; The slowness of the legislative and consultation process; High administrative costs; The absence of sufficient fiscal and human resources to carry out the necessary reforms.
E. ANALYTICAL GAPS
11.27 Recent studies and reports by international and national institutions consist of the following: the CMAP study on the determinants of growth in Mauritania (2005), World Bank studies (FSAP, 2006), Doing Business 2010, the Investment Climate Assessment (ICA) 2007, the Country Economic Memoranda on Mauritania (CEM, 2003, 2006, and 2009), the UNCTAD study on commercial strategies, and the UNIDO study on industrial competitiveness.
The following studies still need to be conducted:
A study of measures designed to enhance the portfolio of bankable sector projects by SMEs (agriculture, livestock breeding, fishing, energy, tourism, etc.); Pre-feasibility studies of the opportunities and risks associated with the envisaged options
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in special economic zones; Studies on the informal sector at rural level; A feasibility study on putting in place a financial information hub (credit bureau); Sector studies (cement, consumer goods, staple foods, and network industries) to structure the fight against anti-competitive practices and to develop competition.
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12. RURAL DEVELOPMENT
A. CONTEXT
12.1 The rural development sector in Mauritania is plagued with a deep-rooted crisis. The three major indicators of this crisis are: i) some institutions supporting the rural world (training of officials, research, agricultural credit, support services for producers) have shut down while others are on the brink of collapse or are no longer functioning; ii) aside a few big projects being supported by international banks albeit with serious doubts about their viability, almost all bilateral technical and financial partners (TFP) have withdrawn from the sector and opted for activities involving collaboration with the State; and iii) the investment environment is unattractive. There are hardly any important international private partners operating in the sector.
12.2 Production is highly unstable even on irrigated farmland. Agricultural and livestock production fluctuates significantly despite: i) considerable progress made in recent years in mastering production techniques, especially rice production; and ii) the timid introduction of diversification into high value-added production. Despite its enormous potential for growth, irrigated agriculture, which has benefited from the greater part of investments in the sector, is still far from achieving the expected results. Thus from 2006/2007 to 2009, the total land area under irrigated cultivation fell from 13,000-14,000 ha to 7,000 ha, a figure that represents barely 15% to 18% of total developed land.28 Vast tracts of irrigated land in some riparian regions were not cultivated at all in 2009.
12.3 The sector – especially the farming and livestock subsectors – employs about 50% of the active population and is therefore the leading source of employment in the country. Its average contribution to national GDP was about 15% during the last five years, with the livestock sector alone representing 80% of this contribution.
12.4 In recent years, Mauritania has experience a series of crises that have led to a state of quasi-structural food insecurity. This situation has had a serious effect on rural areas and made living conditions highly insecure. Local production does not meet the demand for food and the country is compelled to systematically import almost 70% of its staple food annually, or over 200,000 tons of grains. These imports are conducted by the private sector and international aid agencies. National production has never risen above 40% of annual grain required. In recent years, the coverage rate of needs through domestic grain production varied between 16% in 2002-2003 and 30% in 1998-1999.
12.5 The rural sector covers five subsectors, each with its own set of technical challenges and marketing opportunities. In order of current importance to the economy, these are: i) livestock rearing; ii) rain-fed farming of grains and legumes in the Southern belt of the country; iii) irrigated vegetable and grain production; iv) date palm production in oases; and v) production
28 With 23,000 ha under irrigation, the year 2008 was exceptional thanks to the resources deployed by the Government and some TFPs in the Senegal River valley as part of solutions to the world food crisis (inputs, credit, machinery with the rushed setting up of SNAAT, etc.) In 2009, the total freeze on credit by UNCACEM was a key factor in the reduction in irrigated farmland, which resulted from the withholding of the PDIAIM credit line to UNCACEM due to the low rate of repayment of loans.
93 of non-wood forestry products (for example, gum arabic). This last subsector comes under the Ministry of the Environment.
12.6 Livestock production. This subsector covers mainly the production and sale of livestock (cattle, camels, and sheep and goats), poultry farming, milk, skins and hides, and red meat industries, all of which are largely underdeveloped. One of the country's assets is its self- sufficiency in red meat, with exportable surplus production estimated at 35,000 tons (consisting of animals on the hoof).29 Despite some progress achieved in livestock healthcare, production has neither received significant public investments nor recorded much progress in modernization except in poultry and dairy production. The challenge for the country is how to increase the value of this wealth of livestock and modernize the marketing of its by-products. Despite the fact that most Mauritanian farmers own substantial herds, the integration of farming and livestock rearing is very low. Techniques such as night holding areas, improved herding, and the use of manure, which are widespread in other Sahelian countries, are barely practiced in Mauritania.
12.7 Rain-fed farming. This farming sub-sector is the most neglected of all. The situation is far below the minimum found in other Sahelian countries. There is a lack of improved or certified seeds (for sorghum, millet, maize, and cowpeas), credit, and technical assistance. In some areas, the Government has invested in the construction of small dams and the improvement of floodplain production, and this is considered very useful by farmers. However, due to the lack of comprehensive data on the sub-sector, the contribution of this type of agricultural production to the rural economy is unknown.30
12.8 Irrigated production. Under the major OMVS multi-state program, Mauritania has benefitted from substantial investments in the Senegal River valley since the 1970s. SONADER, the National Agency for Rural Development, has provided a range of services to producers (seeds, fertilizers, mechanization, harvesting, and processing) until the implementation of the Agricultural Sector Adjustment Program (PASA). This was marked by: i) a withdrawal by the State; ii) the establishment of new institutions such as UNCACEM; iii) considerable investments by the World Bank through the Program for the Integrated Development of Irrigated Agriculture in Mauritania (PDIAIM); and iv) related investments made by AfDB and IsDB within the framework of OMVS. Some of the major issues recently faced by the subsector have included (in addition to fluctuations in cultivated areas): i) the slow pace of rehabilitation of areas relative to targets; ii) a slowdown in the diversification initiated – to great hope – in the early 2000s; and iii) a disturbing gap between the financial resources allocated to technical and professional training (TPT) and results achieved.
12.9 Oasis production. Oasis agriculture concerns mainly of date palm production, which remains an important crop from both the economic and cultural viewpoints. Mauritanian palm groves consist of 1.87 million trees spread across 218 oases located in the wilayas of Adrar, Tangant, Assaba, and the two Hodhs. The area covered by these oases is about 12,000 ha according to estimates made in 2000 by the FAO and that need to be reviewed.31 They provide a
29 GNAP estimates. 30 Each set of data on grain production originates in the National Agricultural Survey conducted by MDR/DPCSE. In view the sample size for rain-fed agriculture, the margin of error is greater than for irrigated agriculture. 31 Source: Atlas (2000)
94 livelihood for 230,000 people. Annual production of dates is estimated at 20,000 tons, with 55% coming from the Adrar area. Production areas are isolated, a situation which hampers marketing and value addition. Date production in Mauritania faces: i) a water scarcity in oases due to the overexploitation of the water table; and ii) competing imports (in terms of quality and price) from Morocco, Tunisia, and Saudi Arabia. Oasis farmers follow traditional artisanal techniques of conservation, which need to be modernized through support to these sectors, as planned under the Rural Poverty Reduction Program.
12.10 Non-wood forest products (gum arabic and others). At independence, Mauritania was the second largest exporter of gum arabic in the world after Sudan. Although this position has been severely eroded, there are now significant prospects for the revival of the sector thanks to financing available from Carbon and Climate Change funds as well as projects and initiatives supported by TFPs. Other promising forestry products include balanites (a type of nut with medicinal properties) and acacia nilotica (used in the tanning of skins).
B. MAJOR CONSTRAINTS
12.11 The rural sector in Mauritania has potential for growth. However, many constraints hinder its development. General and Crosscutting Constraints on the Sector
12.12 Outdated sector policy. The Rural Development Strategy (SDSR), which was last reviewed in 2001, does not contain: i) the strategy or the paper on the livestock rearing policy, developed in 2002 and 2005, respectively; ii) sufficient emphasis on important themes such as research and knowledge dissemination; iii) innovative agricultural approaches based primarily on poverty reduction; and iv) measures to protect the sector against policy changes due to excessive instability among public administration personnel. In addition, there are no laws relating to agro- pastoral activities. Since 2001, the SDSR has undergone no evaluation to ascertain the relevance of specific strategic choices and especially how effective their implementation has been. In addition, State arbitration has been lacking and this has resulted in the unbalanced distribution of support between crop production and livestock rearing on the one hand and rain-fed and irrigated farming on the other.
12.13 Poor organization of the State sector. The 2007 MDR self-evaluation remains of great relevance. As the document notes, “management of the rural sector is marked by ineffective organization, inadequate internal and external coordination, improvisation in planning, and poor implementation of seasonal farming activities, and more generally, by poor governance and inefficient utilization of public revenue.”32 Furthermore, factors that have not helped in creating the necessary and adequate conditions for an efficient management of a very complex sector include: i) successive changes in texts relating to the organization, administration, and mission of the sector over the last decade; ii) lack of a training and upgrading plan for sector officials; and iii) a freeze on recruitment that is hampering team rotation.
32 RIM-MDR “State and prospects of the agricultural and rural sector in Mauritania” – April 2007.
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12.14 Motivation of officers and project approach. The low level of personnel salaries is one of the sources of demotivation. The relatively high level of salaries offered by autonomous projects within the public administration services most often leads to a drain of skills and loss of qualified human resources, which further weakens the sector. There is a need within the shortest possible period of time to brainstorm on synergies across projects and on their contribution to institution building and to achieving the development objectives of the sector.
12.15 Problematic socio-demographic change. According to surveys, populations who depend on agriculture are experiencing higher levels of poverty and the lowest rate of access to basic social services. The level of under-employment in this sector is very high, estimated at 50% of the active population in rural areas. In addition, rural-urban migration, which is prevalent among men of working age, is affecting the structure of rural populations, which are increasingly made up women, children, and older persons.
12.16 Inadequate technical capital. Traditional rain-fed agriculture and livestock production are facing technical challenges to their optimum development. In addition to the usual infrastructural deficit, farmers engaged in rain-fed agriculture do not have access to improved seeds, which constitutes the most serious constraint in the sector. In addition, the livestock sector has a low capacity for adding value and for marketing its products (meat, milk, skins and hides, eggs, etc.). While technical solutions developed elsewhere are available, their adoption is constrained by the low financial and managerial capacities of traditional enterprises, especially those of traders.
12.17 The slow implementation of the land regularization process. Land regularization is proceeding very slowly despite the provisions of Decree No. 89/2000 of July 17, 2000, which introduced greater flexibility in the enforcement of Bill No. 83.127 of 1983. In addition to administrative red tape, the land reform is creating suspicion among traditional land owners while not guaranteeing security of tenure for new holders, who remain bound by unattractive and less secure contracts.
12.18 Unattractive sector for private foreign investment. Efforts already made to improve conditions for the development of the private sector have not proved sufficient for removing these constraints owing to: i) lack of communication infrastructure and essential services; ii) inadequate access to funding (especially from banks); iii) unsuitable nature of the legal and regulatory framework as well as of administrative procedures; iv) the limited size of the market and the high cost of factors of production; and v) lack of qualified human resources. Currently, not only does the sector remain unattractive to foreign investment, but profits made by private local operators are not reinvested in the sector and thus cannot contribute to its growth and competitiveness.
12.19 Difficult and unattractive institutional and regulatory context. The pastoral and livestock codes adopted in 2003 and 2004, respectively, are not adequately enforced, leading to an inefficient use of resources. In addition, professional organizations in the sector have limited capacity for dealing with the transfer of the many functions formerly performed by the State. In addition, the Ministry of Rural Development (MDR) is constrained by a deficit in qualified human resources, which is due to insufficient recruitment and training. These factors limit the
96 performance of specialized research and development institutions, especially that of the National Center for Agronomic Research and Agricultural Development (CNRADA), the National Center for Livestock Breeding and Veterinary Research, and the National Rural Development Agency (SONADER).
12.20 Very limited commitment from the financial system. The only institutions specialized in credit to rural areas are: i) UNCACEM; and ii) MICO. Established in 1992 and specialized in financing irrigated agriculture, UNCACEM is facing serious difficulties especially in relation to the quality of its assets. In 2009, it closed its doors temporarily to allow for an exhaustive assessment of the situation and to prepare options for a re-launch strategy. In this regard, it intends to reduce risks in the rice production subsector through: i) tripartite interventions by a alliance of farmers, UNCACEM, and the State or of UNCACEM, the State, and the private sector, which would be aimed at developing for rice production insurance and establishing commercial subsidiaries in charge of input supply and marketing.
12.21 For its part, the oasis credit system (MICO), which evolved as part of the Oasis Project, also experienced a breakdown in its supervisory system, leading to weaknesses in the operation of the network from 2006. With regard to livestock production, no funding system has until to date addressed the specific needs of its subsectors in spite of policy makers’ stated desire to establish such an instrument. Timid experiments have been underway as part of the PADEL project, with the establishment of a credit fund for livestock producers. Rain-fed agriculture, which contributes to food security among the population through the production of traditional cereals, is not benefiting from any funding mechanism.
Specific Constraints in the Various Sub-sectors Irrigated Agriculture 12.22 Isolation and inadequate infrastructure. Paved and unpaved but year-round roads are necessary to the sustainable development of irrigated farmland. The current asphalting of the Rosso-Bogh highway will bring about substantial changes in the river basin. A further major problem facing this subsector in addition to a lack of feeder roads is the non-electrification of rural areas. The haphazard distribution of farmland due to the unavailability of a development plan is also at the root of the isolation of many areas. This complicates all drainage systems and worsens the salinization phenomenon.
12.23 Weaknesses in the production systems. Rice remains the major crop on irrigated farmland. Despite potential for twice-yearly cropping (the number of times the average hectare is planted with the same crop) on both cooperative and private farmland, the rate of cropping intensity on irrigated land remains very low. This, coupled with the insecure nature of developed areas, mechanization and commercialization difficulties, and lack of credit to cover dry and wet periods, has adverse effects on yields from irrigated agriculture in the Senegal River valley.
12.24 Seed production has been liberalized. Currently, seeds are produced by private operators or imported (especially from Senegal). However, there are no effective control systems for guaranteeing the quality and standardization of seeds on the market.
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12.25 There is no satisfactory solution to the problem of mechanization. Tough the State facilitated as far back as 1996 the establishment of a private entity to provide the necessary equipment for agricultural activities (especially harvesters and tractors) on a rental basis, this experiment was not conclusive. The Government made another attempt in 2008 by establishing a public institution (SNAAT). However, this current position of this institution does bode well for its viability in the long term. In fact, failure is once again expected given the results of such initiatives in other developing countries.
12.26 Marketing problems. At the beginning of 1980s, the Government guaranteed the purchase of the entire paddy production through public entities. Later, the purchase of rice was entrusted to a pool of buyers. This included major importers through a mechanism that linked import permits to the quantity of local rice bought. However, the new marketing support mechanism set up as part of the PDIAIM credit line did not yield the expected results. Currently, producers negotiate their paddy production with millers, or they market their own crop directly, individually or through an Economic Intrest Group (GIE). Today the greatest challenge to marketing is the fall in the producer price due to the reduction in protection tariffs of 2008. This decision, which was an appropriate response at the time, needs to be reviewed in view of the current world market price of rice.
12.27 Vulnerability to natural disasters. Irrigated agriculture in the Senegal River valley suffers from recurrent attacks from grain-feeding birds as well as floods. The current system of combating birds is based on aerial spreading of pesticides. The resources available for these operations are inadequate and sometimes difficult to mobilize in time. In addition, the acid products used are toxic, hence the need to envisage alternatives such as tracking, nets, or detonators. The proliferation of typhas and other invasive aquatic plants is reducing arable land considerably and complicating the hydraulicity of the network.
12.28 Lack of stable incentive policies. The most important constraint on the recovery of the sector is the fact that support policies over credit, input, machinery, and tariff protection change substantially from one year to the next. This was especially the case between 2007 and 2009, leading to a total destabilization of profit margins and incomes for paddy producers. Rain-fed Agriculture 12.29 Almost non-existent support for rain-fed agriculture. In Mauritania, rain-fed agriculture consists of agriculture practiced in rainy areas to the exclusion of floodplain agriculture and irrigated farms in these areas. Although rain-fed agriculture is the major contributor to food security and poverty reduction in Mauritania, it does not receive a level of support commensurate with its potential from either the Government or TFPs. The main weakness is the absence of a seed system. Livestock Production 12.30 Red meat. The red meat industry suffers from deficiencies at all levels of the chain, from production to marketing through collection and processing.
12.31 Production and consolidation of livestock. The weaknesses observed in livestock breeding may be summarized as follows: i) low productivity; ii) a disturbingly low level of livestock health marked by the prevalence of a number of epidemics; iii) lack of a national
98 identification and monitoring system; and iv) absence of statistical data.As regards livestock consolidation, weaknesses include: i) a scattered livestock trade involving several stakeholders as well as a predominance of small secondary markets; ii) inadequate equipment for the livestock market; and iii) disorganized livestock marketing channels and absence of a structure regulating them.
12.32 Processing. Weaknesses in the meat packing subsector may be summarized as follows: i) the predominance of illegal meat packing plants that do not comply with health and tax regulations; and ii) an overwhelming majority of plants that do not meet required criteria regarding space, hygiene, environment, equipment, and organization of work and operation.
12.33 Marketing of red meat at national level. Weaknesses in meat packing plants are found at all levels: i) staff with little qualification and poor personal hygiene; ii) unsuitable premises and lack of the required equipment; iii) operations that do not meet product quality requirements; iv) inadequate meat preservation and lack of cold storage; v) unsuitable means of transportation; and vi) lack of regulation and appropriate standards.
Other Production
12.34 Milk production. Mostly drawn from camels and cows, there is very little industrial production of milk. Only a portion of the milk produced is processed in Nouakchott and in the wilayas of Brakna and Trarza. However, this young industry has managed to promote its products despite competition from imported dairy products and an unfavorable environment characterized by various constraints including: i) low productivity in the dairy basins, which is also linked to poor individual performance; ii) lack of livestock science and health monitoring and support; iii) isolation of herds, leading to high collection costs; iv) the inability of farmers to meet quality requirements for milk for the industrial sector; v) poor representation of farmers, which limits their bargaining power; and vi) lack of infrastructure for the collection of milk from the traditional basins.
12.35 Skin and hides. Despite the existence of a significant source of materials, the skins and hides industry remains marginal because, in addition to the weaknesses observed all along the production, processing, and marketing chain, the industry continues to grapple with the effects of poor breeding and meat packing practices. The main constraints are as follows: i) skin defects related to modes of rearing; ii) inadequate meat packing infrastructure and poor cutting methods, especially for large animals; iii) poor preservation of skins after slaughter; iv) problems with collection of hides and skins due to fragmented production; v) insufficient tannery infrastructure; vi) absence of a weekly market to boost trade in raw hides; vii) a deficient legislative and regulatory framework; and viii) lack of loans and financial incentives.
12.36 Poultry farming. Traditional poultry farming (with numbers estimated at only 2 million) is an important source of nutrition for rural populations. There is a significant number of small- scale farmers (1 to 150 chicks), with high potential for contributing to meeting national nutritional needs. This type of family poultry farming is practiced on a very small scale almost everywhere in the country and especially along the Senegal River. Traditional poultry farming primarily involves local breeds and to a lesser extent guinea fowls. Women and children
99 specialize in rearing these types of birds. Contrary to what occurs in other countries in West Africa, this industry has not enjoyed much investment to modernize its technology.
C. RECOMMENDATIONS
Short-term Recommendations
Review the Strategy for the Development of the Rural Sector policy document (SDSR), which dates back to 2001, while maintaining its basic strategic directions and specifying new priorities. The objectives are to coordinate and harmonize the activities of the various sub-sectors while involving rural populations and the private sector in the development of the sector. This process should be integrated into the preparation of agro- pastoral legislation;33 12.37 Enhance the performance of the MRD, as follows: Urgently carry out an institutional and financial audit of UNCACEM; Provide the monitoring and evaluation body with the necessary resources to accomplish its task. The existing information system at DPSCE is grossly insufficient to enable it to fulfill this mission as the human, logistical, and organizational resources are not commensurate with the scope of the task. A study of the blueprint for the Department’s information system should be undertaken as soon as possible. A permanent system for piloting the implementation of strategies should be built on this information base; Base multi-annual plans on strategic choices. The strategy should be varied to suit the sub-sectors. The process should lead to the development of multi-year (three-year) programs and operational action plans with measurable indicators to be monitored; Review the mission and organization of the department and its divisions according to the revised strategy. A general mission statement should be drawn up for this purpose, to be broken down into specific mission statements. Such a clarification of the mission of each outfit should clearly state the expected outcomes and the indicators to be used in monitoring these; Refocus the missions of the implementing agencies. The missions of public sector institutions such as SONADER, CNRADA, and CNERV should be revised to clarify their role, identify the resources necessary for their operation, and enhance their contribution to the development of the sector. Moreover, the relationship between major projects and the Ministry should be reviewed; Formulate and institute a National Food Security Policy (PNSAM) and define strategies for fighting food insecurity. Such a policy is largely missing at the moment,
33 The Agro-pastoral Orientation Bill (LAOP) involves all the economic activities of the agro-pastoral sector (processing, transportation, distribution, and other services) as well as its social and agro-environmental roles. Its ambition is to realize the will of all the stakeholders in the agro-pastoral sector (State, local government, domestic private sector, civil society, development partners, etc.). The bill takes into account the objectives of decentralization and integrates the strategies and policies involved in the fight against poverty set by the PRSP as well as all sub-regional and international commitments made by Mauritania. Finally, this law affirms – or reaffirms – the role and place of each of the stakeholders in the sector.
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and its formulation is made all the more urgent by the need to deal with possible crises as well as prevent or mitigate these through agricultural development, trade mechanisms, and other appropriate additional measures or strategies; Revive training activities. With the impending launch of the Institute for Advanced Technological Studies (ISET) at Rosso,34 which will train technicians and agricultural production engineers specializing in livestock breeding and food technology, a second look should be taken at the possibility of reviving ENFVA in the light of the ISET launch. The MDR should seize this opportunity to work closely with ISET on a number of priority issues including the profile of a number of senior officials specializing in training. A human resources needs assessment of the sector should be conducted to guide the choice of areas to be studied as well as levels of training and specialization; Undertake a review of achievements and adopt a strategy for promoting research and support services. These two aspects are the key mechanisms on which the long-term modernization strategy of the sector may be built to improve its performance. Emergencies have always led to the postponement of the effective implementation of these duties. It is therefore imperative to ensure their revitalization through performance assessment and recovery strategies in line with an updated SDSR; Use a portion of the available resources of the project (as at November 11, 2009, PDIAIM II disbursements totaled 74%) to fund a master plan for the sustainable boost of irrigation in the Senegal River valley. This master plan should first take into account some very mixed results from investments in irrigation, especially over the last few years, and then the possible extension of PDIAIM II, which includes funds not spent over the last 15 months. The implementation of this master plan should be a simple process not exceeding six months following award of the contract (through international competitive bidding). This activity should comprise two major components: i) a detailed report of what has been achieved and what has not, and why; and ii) concrete revival strategies. It should emphasize specific and feasible activities based on verifiable indicators, which would reveal concrete results predefined in the terms and conditions for the project. In particular, this should involve areas of the country that have now become accessible by the Rosso-Boghé asphalted road. The master plan should be implemented with the participation of all stakeholders (small-scale farmers, the private sector, FTPs, etc.) and it should target interventions, as follows: 12.38 Giving special attention to the choice of a limited number of areas under the recovery program and based on appropriate criteria as well as the areas with the best prospects of doing well: Macro-hydrological projects and road network; The level of commitment of beneficiaries and their organizational capacities (SPOs, etc.); Technical agro-climatic factors; Credit- and land-related issues;
34 See: www.iset-rosso.mr
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In the agreed collective areas, the methods should be modified for the benefit of enterprises that are capable of carrying out rehabilitation. Care should be taken to employ the best possible skills to reduce unnecessary indebtedness for farmers. In addition, the responsibilities of other stakeholders including the regional structures of the MDR such as SONADER and DMDR and the regional branch of UNCACEM should be adequately defined and scheduled in order to bring about expected results and guarantee their viability; In the selected areas, the agreed strategies should be developed and tested on farms with the aim of increasing the incomes of farmers. These strategies could involve either increased cropping intensity or crop diversification (or both), especially in the dry season; Provide assistance to cooperatives to increase the efficiency of their post-harvest operations (processing, storage, transportation) and contribute various forms of support at a shared cost, etc.; Diversify seeds by choosing those known for their high yields and that have been tested either through research or on-going demonstrations in other fields within the area, notably those supported and supervised by AAAID or other agencies.
12.39 Opportunities for rapid profits. To avoid creating a climate of gloom and despondency, it is sometimes desirable to aim for rapid successes. This will help demonstrate what opportunities for profit exist in the sector and attract the attention of potential partners: 1.1 Investment in pilot poultry production units. Some specialists believe that this industry within the livestock sub-sector offers the best opportunity to make rapid profits in the agricultural sector, as is the case in many developing countries. Even a small project is likely to do well if: i) it is properly set up by technical experts on the outskirts of Nouakchott; ii) it enjoys the support of a cooperative already active in the business; iii) it is supported by a light financial structure; iv) it enjoys technical support; and iv) it is based on market needs, especially those of Nouakchott; Operate the Rosso fruit and vegetable processing plant and the cold storage facilities at the Nouakchott airport. These two units, constructed under the diversification component of PDIAIM II, remain inactive. The revival of high value exports such as refrigerated fresh fruit is achievable subject to working with a partner that is very familiar with the Rungis (Paris) wholesale market and a group of vegetable growers capable of meeting the qualitative and quantitative demands of carefully targeted markets. The Rosso station would take care of the marketing of fresh produce primarily meant for the domestic and sub-regional markets; Best communication strategies. Some information on achieving immediate gains sometimes remains unclear due to inadequate dissemination. This information should be made easily accessible and presented in a complete and user-friendly manner (including photos, maps, etc. – see, for example, the brochures on the GTZ natural resources management project). Medium-term Recommendations
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Implement within the MDR the institutional changes involved in the short-term phase designed in the preliminary studies; Improve the training of future officials (for both public and private sector activities related to the rural sector) and the retraining of officials currently working, and resume research and support services for these activities); Implement the master plan for the sustainable recovery of irrigated production in the PDIAIM area of the Senegal River valley by using available working resources from the final years of PDIAIM II and possibly those of an eventual PDIAIM III; Design and implement new funding methods by drawing up a stable funding strategy for the rural world. Pending the formulation of this policy and its accompanying instruments, there is a need to urgently find ways of revitalizing agricultural credit schemes without repeating past mistakes. The funding strategy should explore the possibility of involving private banks either through a formula of interest-carrying subsidies or by deploying public funds at low interest rates specially meant for agro-pastoral activities. However, risk management and recovery would remain the responsibility of the private banks. Incentives for production should be provided through public support for purchase prices of the produce. This should be predictable and transparent; Encourage and promote public-private partnerships (PPP); Identify opportunities offered by the rural sector to the various investors as a precondition for putting into place a policy of incentives and support to public private partnerships; Develop specific rules for investing in the sector; The Department should launch a survey and work toward the creation of an incentive framework to provide domestic and foreign investors with guarantees of sustainability. The framework should take into account the specificities of investments in the agro- pastoral sector and in the agribusiness industry; Develop communication tools for existing opportunities; Opening the sector to investors must be accompanied by a communication process for the benefit of all current and potential stakeholders. This component must aim to: i) engage new stakeholders; ii) encourage current operators to add value to natural resources; and iii) professionalize socio-professional SPOs.
D. CHALLENGES TO IMPLEMENTATION
Governance
12.40 The sector is constrained in terms of internal governance, preventing the State as a party from coping adequately with its sovereign role. The various constraints may be summarized as follows:
Frequent personnel changes and mobility within the MDR due to the deep politicization of public administration, often resulting in systematic changes to organizational charts
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without any analysis or organizational audit of the institution; Organization of work within the department is inefficient due to a lack of a relevant method for preparing documents or holding meetings and other froms of consultation. Improvisation remains one of the commonest practices. Significant weaknesses in all internal consultation processes (at the levels of ministries, central departments, public institutions, major projects, etc.) continue to undermine all attempts at innovating and implementing more effective ways of organizing work; Lack of transparency in the process of recruiting senior executives for the sector and for projects, while performance assessment is often lacking. Moreover, training and skills updates do not seem to be a priority; Despite gains made in the formulation of policies and strategies, the Monitoring and Evaluation mechanism within the Department generally remains fragile, partial, and uncoordinated. Meanwhile, project evaluation as well as public policies in the sector have become key to improving governance and increasing the performance of programs and services within the Department; Inability of the Department to mobilize the necessary budgetary contributions within stipulated deadlines for effective implementation of externally funded projects; Inadequate preparation and planning for the harvesting season; Management and control of the sector’s public assets (equipment stocks, vehicle fleet, etc.) are fraught with deficiencies due to a lack of a reliable system of internal control. Moreover, the lack of a culture of accountability inhibits internal coordination of public activities; The computerized system for accounting control in the MDR (RACHAD), though useful, faces serious difficulties owing to weaknesses in budget programming.
Food Security Policy
12.41 The process of developing this policy, which could begin soon, must be shared by all individuals and organizations involved, or that should be involved.35 It is vital that each partner and stakeholder be able to actively participate in this far-reaching policy, which should not be sectorial but national (regional or even international), in order to subsequently be able to implement it. Thus, the range of stakeholders in food security goes far beyond the circle of the Food Security Commission (CSA) and MDR. It involves, among others, the TFPs, who are partners as well as stakeholders. Land Rights and Other Incentives to Public-private Partnerships
12.42 Land. To deal with the constraints related to the lack of law enforcement and red tape in the public administrations concerned, it is necessary to create a framework for consultation (namely, a State land agency) among the structures concerned. The objective is to improve the legislation and legal instruments applicable to land issues. There is also a need to improve the
35 This should include UN agencies (FAO and WFP) as well as European agencies (EU, French aid – CF, Spanish aid – CE, German aid – GTZ).
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efficiency of land services to respond quickly to agricultural users and land owners.36 The M'Pourié farm, entrusted to AAAID for its management, is showing some potential at the technical level. However, in its current stage, it is not the type of public-private partnership desired since, contrary to the agreed terms, no meetings of the steering committee are taking place and there are no profits to share with the MDR. A better model should include, among others, a list of available State lands by locality including carefully examined terms and conditions as well as leasing fees payable after a number of years of grace period.
E. ANALYTICAL GAPS
Missing Data
12.43 The only agricultural data on grain production (irrigated and rain-fed agriculture types, price, etc.) were collected by the MDR (DPCSE) through a PDIAIM-funded project and, more recently, through a budgetary allocation from the Ministry. Consequently:
There is no general census of agriculture and livestock. However, with FAO support, the National Statistical Office (NSO) has laid the foundation for such a survey to be included in the RGPH census; Lack of statistical data on the cost of production for each sector. This is important for the purpose of baseline analyses of agricultural policies and tariff protection at entry points.
Priority Research
12.44 Several research activities should be undertaken to lay the foundations for the action program:
Technical and operational research by sub sector; Agricultural policy research, with the aim of providing an accurate assessment of what policies should be put in place to promote the development of modern businesses in promising sectors; Research on a protection policy in general, including tariff protection; Formulation of a plant protection strategy; Updating the research on the profitability of rice, which dates back to 1998; Institutional audit of research, training, and support.
Recommended Analytical Approach
12.45 Policy Analysis Matrix (PAM). This approach is based on an in-depth comparative analysis of the sectors and the advantages of each in terms of cost of production and profit margins as well as in view of the different levels of tariff protection. Based on economic
36 In 1983, Mauritania was well ahead of the other francophone West African countries as a result of its land reform law. Since then, application measures have often been lacking.
105 principles, the PAM results from debates on the technical aspects of each sector. These debates gather technicians, decision makers, and economists, whose aim is to identify the sector and sub- sectors that are of the greatest socioeconomic interest to the country. The database to be developed through this process could also serve the purposes of several other analyses. It is through the PAM approach that, for example, the governments of Mali and Senegal have succeeded in finding greater balance among various sectors in their agricultural investment programs and strategies.
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13. FISHERIES
A. CONTEXT
13.1 Mauritania has a 720 km-long sea coast endowed with an exceptional physical environment. This is marked by, among other factors: i) an Exclusive Economic Zone (EEZ) covering an era of 234,000 km2 ; ii) a large continental shelf comprising a wide area of shallows (Banc d’Arguin); iii) permanent upwelling; and iv) an unpolluted marine environment. The fishing potential of this economic zone is substantial37 as it includes demersal resources (cephalopods, bottom feeders, shellfish), small pelagic fish, and bivalve mollusks (especially clams).
13.2 Fishing is currently a strategic sector for the economic and social development of the country. With catches estimated at 800,000 tons a year and mainly meant for export, the sector accounts for 20-25% of the State budget, essentially as a result of the revenue earned from a fisheries agreement with the European Union (EU), and it constitutes a major source of foreign exchange (20% of the country’s export earnings). If all activities related to fishing and not only those directly linked to catches are taken into consideration, the sector accounts for 6% of GDP. It also generates about 36,000 jobs offshore as well as onshore, representing 36% of jobs in the country’s modern sector. Since 1979, all fishing policies adopted by the Government have aimed at two recurrent intervention objectives: the sustainable management of the sector, and its better integration into the country’s economy.
13.3 The most important component of the sector is the fishing of cephalopods, which include mollusks, octopus, skid, and cuttlefish. This component accounts for one third of the value of catches made by industrial fishing vessels and for a majority of those made by Mauritanian vessels. According to 2005 data, out of a total catch of 600,000 tons, 540,000 tons consisted of small pelagic fish, namely, sardines and mackerel caught on the high seas and of low commercial value. Catches of demersal species (bottom feeders and cephalopods) represent 55% of the fishing value at nearly 57,000 tons, comprising 25,000 tons for cephalopods and 32,000 tons for fish. A total of 40% of the 57,000 tons is caught by EU vessels and 20% by the local artisanal fleet. However, the EU fleet generates higher added-value due to its use of high- performance vessels.
13.4 Currently, the volume of cephalopods caught by a national industrial fishing unit is half that of a European industrial fishing unit. In addition, unit costs of production have increased due to the hike in fuel prices. Furthermore, a significant part of the added value generated by national industrial units is exported. Although artisanal fishing generates higher added value than does the national industrial fleet despite lower catches, the expansion of artisanal fishing is facing technical constraints stemming from the overexploitation of fishing grounds. This drop in yields has led to a decline in the profitability of State enterprises, though
37 The estimate of the potential of fisheries resources that can be exploited in the Mauritanian EEZ is unreliable since, in terms of volume, small pelagic resources are subject to inter-annual fluctuations in the biomass.
107 these managed to maintain a modest level of profitability thanks to the rise in the price of octopus on the international market and the incidental fishing of other demersal species. Finally, a majority of the national industrial fleet is linked to foreign economic interests, leading to financial transfers abroad estimated at 12-15% of turnover in 2005 and above 20% in subsequent years.
13.5 It should be stressed that the marine environment is currently sound, if we consider: i) the low level of aquatic pollution and degradation of biotopes; ii) low population density; and iii) the positive trademark value of fisheries products from Mauritania. All conditions are therefore set for developing an “environmental” label for Mauritanian products even if further actions are necessary to prevent chronic or accidental pollution.
B. MAJOR CONSTRAINTS
13.6 Mauritania’s fisheries sector has reached a critical stage in its development. Its fish resources have been extensively exploited while the benefits to the national economy, though substantial, are largely generated by foreign interests. Conditions for foreign participation are likely to change in the future. The national fleet is old and is becoming increasingly ineffective. A growing artisanal fishing subsector needs to be effectively integrated into the broader sector. Yet processing infrastructure at ports for catch handling and processing and financial facilities are not directed at current and future needs. The institutional capacity to manage the sector is weak. The development and integration of the sector into the national economy should be coherently captured in a strategy and program of actions. The objectives of these should be the protection and sustainability of resources and the optimization of economic and social returns of the sector. There is also a need to give priority to increasing locally added value as well as the competitiveness of national fisheries and local partnerships (joint ventures) instead of granting independent access to foreign fleets. This program would lay emphasis on strategic resources in terms of quantity and value especially as regards cephalopods and small pelagic fish, which increasingly constitute a source of local income and employment.
State of Fisheries Resources
13.7 Latest results from the Mauritanian Institute for Oceanographic Research and Fisheries (IMROP) show that resources with high commercial value, especially demersal species, have been fully exploited if not overexploited. The situation is particularly critical in the case of octopus, which constitutes a strategic resource for the country’s economy. In the absence of a policy regulating access to these resources, it is not likely that the country will be able to reduce excess fishing capacity and increase the level of production of these resources despite their high commercial value. In addition, these resources, which are extensively exploited, are becoming increasingly vulnerable. Yet, assessments conducted by IMROP in 2006 indicate that species found in the water column (pelagic species) offer strong development
108 potentials for artisanal and costal fisheries.38
13.8 Reserves of bivalve mollusk stocks, especially squid, remain unexploited due mainly to export market requirements. When conditions are set, responsible approaches for developing these fisheries could be sought while taking particular account of their impact on the environment and on interactions with octopus fishing.
Fisheries Governance
13.9 To ensure effectiveness, the management of the sector requires fairness and balance and a practice based on multiple interests: i) those linked to the protection of the marine environment; ii) those of people who catch, land, process, and export fish; and iii) those of the public sector.
13.10 Previous efforts to improve the management of the sector focused on the most lucrative species, namely cephalopods, for which a development plan was introduced in 2006. Unfortunately, the project lacked specific measures that would have aimed at quickly adjusting fishing activities to stocks as assessed by scientists. The establishment of a commission to supervise and assess the impact of this type of fishing was delayed and measures to control access to the resource, catches, and fishing capacity yielded only modest progress. In addition, the plan failed to include new measures for regulating access by and the registration of the artisanal fleet.
13.11 Generally, previous efforts to manage the sector did not adequately take into account substantive issues of governance over the whole sector, including catches, landing, processing, and export of fish or the need to clearly define the role of the public and private sectors in this type of governance. Consequently, there remains a need to direct governance in the sector toward capacity building in order to promote: i) governance based on transparency; ii) the effective monitoring of fishing and post-fishing activities; and iii) a full understanding of the biological and economic impact of regulations governing all aspects of the value chain.
13.12 Consensus among the major stakeholders in the management of the sector remains weak. This consensus should also be backed by a renewed legal framework as well as strengthened institutional capacity to ensure the implementation of decisions in line with agreed strategies. Nonetheless, the management strategy for the sector is non-existent. Such a strategy would help pursue and establish a balance between the multiple objectives of the public and private sectors. In terms of priority, the strategy should focus primarily on the efficient and controlled exploitation of resources, and it should target the transparent distribution of resources among: i) local and foreign operators; ii) small-scale and industrial operators; and iii) the private
38 Small pelagic fish seem to have been fully exploited when the average of long-term assessments is taken into account. Yearly estimates, which are highly likely to deviate from the average, must treated with caution during long-term planning.
109 and public sectors.39 In addition, the institutional framework is inadequate. The management of the sector should therefore factor in an institutional structure with a solid long-term mandate in terms of both policy autonomy and human resources.
Fisheries Exploitation Systems
13.13 The national industrial fleet, which accounts for the greater part of national catches, is currently in a precarious situation due to a decline in output and aging equipment as well as the relatively high cost of production. A growing number of national vessels have broken down and are out of service.The obsolescence of equipment and economic difficulties in this segment of the fishing industry are reflected in a steady decline in output. The current economic state of the national industrial fleet is therefore problematic, especially as it is worsened by competition from foreign fleets harvesting demersal resources. Foreign fleets are more specialized and better equipped to deal with the decline in catches, and they have access to better marketing channels. Meanwhile, the national industrial vessels are not involved in pelagic fishing despite the important development potential of this type of fishing.40
13.14 Despite the boom in coastal and artisanal fishing in recent years, these activities remain of secondary importance in the sector. Production hovers around 80,000 tons a year, representing almost 8-10% of catches landed within the Mauritanian EEZ. Developments in the production systems for artisanal and costal fisheries point to several trends: i) an expansion in the pirogue fleet, currently estimated at 4,000; ii) increased specialization in fishing units; iii) greater diversity of species caught in line with trends in the market; and iv) significant expansion in fishing grounds especially in the south of the country. However, due to the structure of catches, which target primarily species with high commercial value meant for European and Asian markets, the contribution of coastal and artisanal fishing to the sector’s turnover remains below 10%.
Marketing Fisheries Products
13.15 On-shore marketing systems remain poorly structured and organized. Currently, they offer very low prospects of the eventual integration of this sector into the broader economy,
39 The strategy would include an important development component that in time will seek to improve efficiency and adjust capacity in the national fleet as well as among local processors while reducing the need to use foreign capacity. Priority will also be given to the construction of ports and other infrastructure to meet future fish landing needs. The revival of an efficient financial intermediation to support the sector should also be included. Finally, the strategy should aim to transform the tax regime in the sector in order to to reduce the dependence of the state budget on financial transfers linked to external fishing agreements and prepare for a reduction in fishing opportunities and related payments. 40 If the structure of the small pelagic fishing industry across the world were to be taken into account, pilot studies and activities to establish the feasibility of such a development should focus particularly on coastal fisheries (of a semi-industrial type), which necessitate processing plants on land. Similarly, other modalities could be explored so that Mauritanian interests might derive direct benefits generated by the entire value chain or international companies operating in the small pelagic sector. It could also be envisaged that access to Mauritanian water for the exploitation of this resource would be tied to Mauritanian participation in the companies concerned.
110 as 90% of catches taken from Mauritanian waters are exported.41
13.16 Currently, Mauritanian-processed exports account for an insignificant proportion of the total volume of catches. Vessels with free licenses obtained individually or within the framework of an agreement account for the greater part of catches. Only 10% of products landed in Mauritania and meant for exports are processed. Most plants work below capacity. Major reasons for the underutilization of industrial plants must be explored further as the lack of supply is not due only to low landings given the significant volumes of catches raised from Mauritanian waters. Rather, many enterprises are still grappling with obligations and the ongoing process of meeting health standards in order to sell products on the European market, their main export destination. These enterprises have also been hard hit by the high cost of energy and a lack of tax incentives.
13.17 The capacity and nature of processing infrastructure on shore are not well adjusted. In particular, these do not take into account of the following factors: i) projections of fish production in Mauritanian waters; ii) planned expansion of the national fleet (for industrial, coastal, and artisanal activities); iii) agreements with foreign fleets to land catches in the countries where the catches are made; and iv) production standards. Consequently, defining future capacity for on-shore infrastructure and the necessary investment agreements will require thorough consultations with the private and public sectors. These consultations will help: i) assess future capacity; ii) develop funding modalities; and iii) deal with issues related to the quality of production as well as technical and management capacity building at the local level.
13.18 Another limiting factor is the state of infrastructure, which has not undergone any improvement in recent years. The only functioning port is that of Nouadhibou, with capacity already considered inadequate for existing fleets. As is the case for on-shore processing capacity, future capacity requirements for fishing ports for both the national and foreign fleets should be assessed based on projections instead of existing capacity. Account should also be taken of the need to improve and better coordinate the management of fleets and the use of ports.
13.19 There is no consultation framework for supporting the strategic reform process and the protection of resources. Given the magnitude of the challenges facing many stakeholders in the sector (including national and foreign fleets as well as industrial and artisanal fleets), such a framework is urgently needed. These consultations would be based on a participatory process involving a majority of stakeholders in order to arrive at a common vision for the sector’s future
41 Efforts aimed at improving efficiency in the marketing of seafood locally and abroad – especially cephalopods and small pelagic fish– and defining the role of the SMCP as well as organizing national fish supply and consumption will be equally important. This program could be divided along the following lines: i) establishing a set of mechanisms and measures required for the management of the sector; ii) setting targets for catches and fishing activities; iii) improving management tools and capacity building for institutions within the sector; iv) promoting a national and competitive fishing industry, thus making a greater contribution to the national economy, and promoting credit and financing systems adapted to the needs of the fisheries sector; and v) developing landing infrastructure.
111 in terms of both sustainable management and fisheries development. Negotiations would focus on the reform processes and access regimes for fisheries resources as well as on protection for the resource. This common vision would give primacy to: i) the formulation, validation, and implementation of management plans; ii) the development of basic infrastructure to ensure the internalization of the total volume of catches; and iii) the development of integrated industries (for processing fisheries products).
C. RECOMMENDATIONS
13.20 A full list of recommendations for this sector is attached to this report as Annex 2. The following recommendations are limited to those considered priorities.
Short-term Recommendations
13.21 With regard to setting targets for catches and the fishing effort for cephalopod fishing (though the approach is applicable to other types of fishing), the emphasis should be on:
Turning observations from studies of surplus fishing into operational recommendations in order to determine fishing capacity; Formulating and assessing various scenarios for allocating fishing capacity while taking into account targets for reducing overall fishing. Medium-term Recommendations
13.22 As regards setting targets for catches and the sustainable management of fishing, the focus should be on:
Drawing up a fishing authorization program through a list of vessels authorized to fish and applying regulations on licensing as well as determining a permitted catch size (PCS); Training and capacity building for all sub-sectors; Promoting and adding value to fisheries products through local processing.
13.23 To improve the management of the sector, it is necessary to put in place core mechanisms and measures, including: i) the compilation of a register of fishing vessels operating in the Mauritanian EEZ; ii) the completion of a technical and statutory audit of the national industrial fleet; and ii) the establishment of rules governing the registration and exclusion of fishing vessels from the national fleet register.
D. CHALLENGES TO IMPLEMENTATION
13.24 Major challenges to implementation are as follows:
Lack of structured dialogue among all stakeholders and development partners, which
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would aim to reach consensus on: i) priority measures; ii) fishing authorization programs; and iii) rules on the registration and exclusion of fishing vessels from the national fleet register: Lack of agreement between government and stakeholders on a sector policy and the program of action needed to implement it; Lack of consensus on a permitted catch size (PCS) for cephalopod fishing; Lack of operationalization of management tools such as the register all fishing vessels operating in the Mauritanian EEZ.
E. ANALYTICAL GAPS
13.25 To promote the development of the fisheries sector, there is a need to:
Update previous feasibility studies, taking into account: i) the future vision for the sector; ii) standardization needs, especially as regards health standards; and iii) improvement in the quality of port infrastructure and services; Conduct a feasibility study to assess improvement needs among landing stages for artisanal fishing and to find a solution to saturation in the Port of Baie du Repos (EPBR); Complete the technical and statutory audit of the national industrial fleet.
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14. THE MINING SECTOR
A. CONTEXT
14.1 Ever since the country’s independence, the mining sector has been the spearhead of the national economy. Iron ore exports have enabled this sector to play a role of paramount importance. The current contribution of the mining sector to GDP is around 12%, which includes the diversification process begun at the end of 2007 with the start of operations by Mauritanian Copper Mines (MCM) and Tasiast Mauritanie Limited (TML). Currently, the sector employs over 11,000 people working for the 50 or so mining operators in the country.
14.2 The mining policy declaration adopted in 1997 set the sector’s development as one of the Government’s priority objectives. It gave the private sector a major role in the development of the mining sector and realigned State actions toward its essential tasks of regulation and promotion. The 1999 Mining Code and its range of related legislation, completed in 2002 by the General Mining Convention, granted credit facilities and incentive advantages to investors interested in the exploration and mining of the mineral resources beneath Mauritanian soil. A review of this code and related legislation42 was initiated in 2008 and 2009, aiming in particular to: i) introduce State equity participation in mining company stock; ii) guarantee the proper execution of commitments made by executives; iii) increase the level of taxes and fees paid by the mining sector; and iv) distribute mining income in such a way as to ensure the sustainability of the new institutions responsible for the sector, which were recently strengthened by the creation of the Directorate for the Policing of Mining (DPM), with responsibility for various types of mining inspections.
14.3 At the institutional level, the creation at the beginning of 2009 of the DPM made it possible to carry out inspections and monitor the commitments made by operators. Care was also paid to ensuring: i) the sustainability of the sector’s institutions; ii) staff in-service training to ensure that staff duties are carried out effectively; and iii) adjustment of staff to changes in techniques and technologies for the handling of data and for promoting these.
14.4 As regards geophysical surveys, 72% of the national territory has been covered, particularly those areas with strong mining potential. Regarding geological mapping, Mauritania's territory is now accounted for by a map on a 1/500,000 scale and partially covered by maps on a 1/200,000 scale in areas with mining potential (almost 56% of the territory). These surveys and maps have created a climate of confidence and stability, which has made it possible for about 50 mining companies, some of international renown, to have a presence in Mauritania and to hold mining rights. These companies are doing a considerable amount of exploration, research, and development, notably in gold, iron, diamonds, uranium, copper, and phosphates.
14.5 The Mauritanian Geological Research Office (OMRG) is the State agency for
42 In particular: Bill No. 99.013 of June 23, 1999 on the Mining Code; the new and favorable Investment Code; Decrees N° 160.99 of December 30, 1999 on mining rights, N° 139.2000 of November 21, 2000 on policing mines, N° 002.2003 of January 14, 2003 setting mining tax rates, and N° 054.2004 of June 6, 2004 on the mining environment, and Bill N° 02.2002 of January 20, 2002 on the General Mining Convention (for mining sector investments).
114 geological and mining exploration. In this capacity, it has done preliminary work in the investigation and identification of mining or mineral deposits and deposits of useful substances. The department is actively planning to strengthen the availability of qualified human resources, equipment, and logistics, especially in testing and analysis. This will enable it to: i) assist mining exploration, currently in full expansion; ii) ensure its autonomy by providing services to operators currently working in the country; and iii) redirect on the State’s behalf part of the investment already amounting to several billion Ouguiyas into the areas of exploration and mining.
14.6 In terms of mining development, the Akjoujt copper mine became operational again at the beginning of 2007 following an investment of more than USD 104 million by MCM. Headed by the Canadian company First Quantum Minerals Limited, this consortium includes the UAE company Wadi El Rawda Industrial Investments and the Australian company General Gold International. It produces 120,000 tons of copper concentrate at 25% and gold at 12 grams/ton. MCM also started producing doré bullion in March 2009 at an annual level of 60,000 ounces, and the consortium is currently working to increase its production level for concentrates thanks to additional reserves found within the area of Mining Concession No. 2 and its outlying areas.
14.7 The country’s first gold mine opened at the beginning of the second semester of 2007 following an investment of USD 80 million. Its annual production, currently at 120,000 ounces (about four tons), will be raised to 275,000 ounces following an agreement signed in April 2009. Following an additional investment of more than USD 50 million, additional reserves were discovered within the El Ghaicha area.
14.8 Feasibility studies for the mining of phosphate in Bofal and for the building of the Southern Railroad were completed at the end of 2005. However, the transport option selected seems to have reached a bottleneck. The department has therefore strongly recommended alternative options to enable phosphate mining to start without delay within the mining rights granted since 1998.
14.9 Until recently, mining was exclusively carried out by the National Industrial and Mining Company (SNIM) as far as iron was concerned, with production reaching 10 to 11 million tons per year. For its part, its SAMIA subsidiary exploits close to 30,000 tons of gypsum per year, part of which is processed into plaster for local consumption and for export. For the past three years, all of these activities have been diversifying in new mines owned by MCM and TML. The results of the mining of iron ore by SNIM over the past three years can be summarized as follows:
Production and sales have remained at a level between 9.6 and 11 million tons per year despite strong global demand. In large part, this can be explained by a fall in demand for siliceous products and by the difficult configuration of the deposits; In the short term, however, ambitious new projects are expected as part of the Development and Modernization Program (PDM), in particular the Guelb II plant and to a lesser extent the underground exploitation of the T1 deposit at Tazadit. To these can be added improvement plans for production in operational areas as well as the possibilities presented by other partnerships. The aim of these projects is to increase SNIM production to a level close to 20 million tons per year;
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Exploration for iron ore has mainly involved delineating the mineralization contours of the TO 14 and M’Haoudat deposits and studying the Kedia mineralized outcrops. Results are promising for increasing reserves of high-grade ore; In addition to renovating some of the mining equipment (trucks, excavators, boring machines, bull blades, shunting locomotives), investments made over this period also include: i) the building up of the TO 14 handling capacity; ii) the building up of gravimetric and wet magnetic separation facilities at the Guelbs plant; iii) an increase in capacity at the Nouadhibou plant; and iv) the purchase of a batch of railroad equipment (wagons, bogies). 14.10 The contribution of mining activities to the national economy for 2008 can be summarized as follows:
Stable employment for more than 11,000 (mining and exploration), with multiplying effects; A contribution to GDP of close to 11% by the three current mining companies (SNIM, MCM, and TML); A contribution to the State budget of about 12 % of total revenue; A contribution to the balance of trade at an average level of over 50%; A contribution to the training of a qualified national workforce thanks to sustained effort in the area of professional training.
14.11 In terms of exploration and search operations, more than 170 search permits have been granted to about 50 mining operators including major players working in a climate of transparency, trust, and stability in their particular sphere of intervention. Currently, mining exploration concentrates on gold and related substances, diamonds, uranium, iron, and ornamental stone.
(i) - Gold and Related Substances There have been encouraging results regarding this substance. Notably, a gold mine has been discovered by TML and is currently being developed. According to forecasts, production could double in the years ahead;
Exploration work carried out by OMRG in the Sfariates region has revealed significant gold content. (ii) - Diamonds Diamond exploration in Mauritania began in 1995. Initial results identified several minerals indicators for kimberlite, which confirmed interest in this substance. However, the first diamond bearing kimberlite was only discovered in 2000 in the North of the country by the Ashton Mining Company, which reports encouraging results in Maqteir and around Bir Moghrein. At present, exploration continues in the hope of discovering an economically exploitable diamond bearing deposit. (iii) - Uranium
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There has been sustained uranium exploration, thanks in part to encouraging results obtained by the Murchison Company and by other operators including Aura Energy and Triton. also included among the operators exploring for uranium in Mauritania is the giant company Areva. (iv) - Iron To sustain its mining activities, SNIM continues to search for new deposits within its mineral rights. In addition, Bumi, TransAfrika, Wadi El Rawda, and Sphere Investments have all carried out significant geophysical and testing work in the context of their exploration licenses. (v) - Ornamental Stone GMM is currently the only operator working in the mining of ornamental stone. However, other local operators are attempting to discover favorable areas for these materials. Although this sector is in increasing demand, it requires adequate infrastructure (roads, railroads, etc.) to optimize extraction possibilities. Almost all licenses granted are close to a railroad while more distant deposits such as the one in Tabatanet, near Bir Moghrein, need additional infrastructure to make their development a reality. (vi) - Search for Other Mineral Deposits OMRG has committed to creating a mining inventory over the period in the Hodh region as well as in Assaba. This has enabled these regions of the country, which have been little surveyed, to be explored, with promising results. In the Hodh region, several prospects for copper and kaolin have been discovered. Results of laboratory analyses support in-depth work being carried out. In Assaba, study results show that this area, which is located near the Mauritanides on the edge of the Taoudeni basin, has great potential for copper and associated minerals as well as for gold and black sand.
B. MAJOR CONSTRAINTS
14.12 The promotion and supervision of the mining sector are still carried out by central Government, with inadequate human and material resources. Despite significant material resources invested over recent years, SNIM’s production remains stagnant, at around 11 million tons. No plan implemented by the company in recent years has had any significant results.
14.13 The institutional instability of the last five years has led to the loss of good buildings. These were built specially for different components of PRISM (Land Registry, SIGM, and SIGE) and to ensure the appropriate operation of the services responsible for the mining sector (meeting rooms, libraries, etc.).
14.14 Diversification activities began with TML and MCM production and will be strengthened further with the implementation of new mining projects for Bofal phosphate, iron (El Aouj, Lebtheyniya, Tifercchai, and Tamagot), and uranium (Bir Ennar and surroundings).
14.15 As regards the social responsibility of companies toward communities affected by their mining activities, a new philosophy is being advocated by the Department. From now on, companies will be urged to contribute to a fund intended to finance socioeconomic projects of
117 their choice while avoiding leakages from direct support being given to individuals or to local institutions.
14.16 As regards environmental monitoring and in conformity with the new provisions of the Mining Code, the Department is working on a Framework Law on the Environment in collaboration with the Department for the Environment.
14.17 Mauritania is part of the Extractive Industries Transparency Initiative (EITI). The first report submitted to EITI dealt with the mining sector. In 2010, Mauritania was granted an extension of the validation due date to September 9 of that year. The Department and the main mining operators are represented on the EITI National Committee (CNEITI). In addition, an inter-ministerial committee for monitoring mining revenues has been established to ensure that payments due to the State are efficiently and accurately made. Furthermore, the department is also working to establish good governance and the transparent management of the sector thanks to clearly defined procedures for providing support on the ground during the exploration phase and for representation at mining sites.
14.18 Following the political events of 2008, mining activity must return to normal. Several allocations and/or renewals of licenses are still awaiting approval by the Council of Ministers.
C. RECOMMENDATIONS
Short-term Recommendations
14.19 The main short-term objective for the development of the sector is to promote mining, which will contribute to strong economic growth by creating value added and employment. In particular, this promotional effort will consist of:
Completing the General Mining Convention and its implementing legislation related to amending the Mining Bill of 2009; Improving the institutional framework by adapting it to new requirements, i.e., promoting private investment and encouraging strong competition to bring in investors. Resources to be deployed are: i) the modernization and computerization of the Mining Registry to ensure the transparent and efficient management of mining rights; ii) strengthening the Environmental Affairs Department (SAE) in the General Directorate for Markets (DGM); iii) improving DGM organization and working procedures; iv) reinforcing the institutional framework for mining administrative structures; v) strengthening and computerizing SIGM; vi) in-service training for staff at these institutions; vii) training the Department’s human resources; viii) improving the social impact of mining in mining areas; and ix) diversifying economic activities in high-impact mining areas; Make efforts to sensitize mining operators and foreign investors. This should be done through effective participation in numerous regional and international trade fairs as well as by supervising those concerned during visits to Mauritania. The aim here is to spread knowledge of the Mauritanian business environment and its mining potential; Strengthening the policing of mines. Developing professional monitoring of operators’
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activities is essential, as much over exploration and mining as over social responsibilities; Encourage potential operators or those already in the country to initiate exploration on national soil; Attract national and foreign private investment to develop the sector.
Medium-term recommendations
Create a Mining School. This would enable: i) the training of Mauritanian engineers in sub-sectors linked to mining; ii) the nationalization of the sector; iii) the maximization of the number of Mauritanian jobs; and iv) a reduction in unemployment; Strengthen coordination with government bodies. In this context, the Minister and government bodies must agree on the regular production of detailed reports on their activities. In addition, periodic meetings should be held to review mining activities and developments to be considered; Prevent negative impacts of mining activities on the environment. Participation in the Environmental Impact Evaluation (EIE) process must be ongoing and monitored. Monitoring environmental management also requires detailed and regular assessment of the environmental impact of mining activities in the country. 14.20 In light of the above, it would be appropriate to continue implementing in both the short and medium terms the 2010-2012 three-year plan (appended to this document). In particular, the following measures should be taken: i) seek out appropriate development partners within the framework of the PRISM III launch in order to improve the geological infrastructure; ii) strengthen OMRG capabilities to enable it through analyses and tests to support mining exploration operators; and iii) consider the option of State participation in new mining companies. The detailed action plan for the mining sector over the next three years is given in Annex 3 of this report.
D. CHALLENGES TO IMPLEMENTATION
14.21 The main challenges are:
Human resources (need for training); Absence of a recruitment policy, especially as regards replacing retiring personnel; Inadequate resources to carry out specific actions included in the action plan; Institutional issues (the sustainability of departmental structures, Land Registry, SIGM, SIGE); Lack of geological infrastructure for some areas of the country; Lack of diversification in mining production; Need to integrate the social dimension in all economic activities linked to the mining sector;
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Lack of training of personnel responsible for mining inspections; Problems linked to the security of people and installations; Deficiencies in current mining exploration; Inadequate hydro-geological resources for areas with strong mining potential; Lack of basic infrastructure, mainly roads.
E. ANALYTICAL GAPS
14.22 To truly promote the mining sector, it is necessary to:
Adapt legal texts to the new Mining Code, including drafted and approved enforcement decrees; Carry out studies on the direct and indirect impact of mining activities on other sectors and on employment; 14.23 Restart and complete PRISM II activities in the Zouerate-Nouadhibou corridor, especially regarding their social aspect. To achieve this, the consultation process and work contracts that were operational before 2008 should be extended.
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15. OIL
A. OVERVIEW
15.1 Mauritania is currently taking its first steps in the oil sector. The first barrel of crude oil was extracted in February 2006 in an oil field named Chinguetti, which was discovered in deep waters in 2001. This generated a significant increase in the Government's budget income. The discovery of offshore oil and gas deposits as well as the use and operation of the country’s first oil field has resulted in the renewed interest of international oil companies. However, the national territory remains largely unexplored and the number of boreholes per square kilometer is low compared to that of several other countries.
Institutional and Organizational Framework
15.2 The Department in charge of hydrocarbons, which is part of the Ministry of Energy and Petroleum Resources, ensures the promotion and supervision of oil-related activities. It operates within the context of economic measures favoring greater liberalization adopted by the Government. In order to attain its objectives, the Department implements a strategy based on three main elements: i) Decree No. 88-151 of November 13, 1988 referring to the juridical and fiscal framework for research and the exploitation of hydrocarbon resources; ii) the contract template for the distribution of oil output established in 1994; et iii) the Extractive Industries Transparency Initiative (EITE), which Mauritania incorporated into its laws in September 2005.
15.3 The Department’s strategy seeks to create an atmosphere that will encourage new domestic and foreign investment as well as concentrate on developing training programs and institutional support. Thus in 2010 the Department will continue deploying its efforts toward: i) achieving the sector’s revival and promotion; ii) improving the existing legal framework regulating activities; and iii) monitoring and supervising operators. The modernization of administrative structures, the strengthening of capacities, and staff development will also be at the core of the Department’s concerns.
15.4 By improving the legal framework, these determined efforts will contribute to the rapid development of oil-related activities. The sector has already benefited from the country’s experience regarding production-sharing agreements and from the allocation of a significant number of oil research permits, which increases the chances of discovering new oil fields. The main objectives to be focused upon are: i) improving the legal and regulatory framework; ii) searching for ways to increase production; iii) accelerating prospective research; iv) promoting exploration in the Taoudeni basin and potential deepwater offshore drilling sectors; v) activating production in new fields; and vi) strengthening the power of the central administration and the Mauritanian Hydrocarbons Agency (SMH) to enable them to fulfill their contribution to optimizing the potential of the oil industry.
Current State of Prospection, Development, and Production Activities
15.5 Foreign companies launched exploration operations between 2001 and 2005
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throughout the coastal basin. Their efforts were rewarded with the successful discovery of seven oil fields. However, exploration of the coastal basin later dropped significantly and only two new exploration wells were drilled between 2006 and 2009, resulting in a reduced number of strikes in the past three years.
15.6 Oil Production in Chinguetti has dropped substantially, falling well below expectations. Increasing oil production is crucial to the future of the oil sector and remains one of the Government’s priorities.
15.7 Exploration operations in the Taoudeni Basin have intensified since 2006 thanks to the acquisition of several thousand kilometers of 2D seismic data by major oil corporations Total and Repsol. Also note the launching of drilling by Total in Block Ta8 as well as an imminent seismic survey to be conducted by Wintershall.
15.8 The Department has not allocated any oil blocks since 2007 while the finalization of the revision process concerning the legal and regulatory framework is still pending. The revision process was launched two years ago and should establish a permit system that will help develop crude oil resources within the country. Permits have already been issued to Petronas and Dana, who are thus allowed to extend their period of exploration, respectively in offshore Block C6 in 2009 and Block 1 in 2010, a move that aims to provide additional opportunities for new oil discoveries in the case of C6 and to confirm existing field conditions in the case of Block 1. It should be pointed out that following the signing of these authorizations, contractual conditions have improved in favor of the Government as contracts are more restrictive for the operator, authorization periods have been shortened, and contracts require the payment of signature bonuses.
15.9 Mauritania has been a member of EITI since September 2005. The national commission in charge of EITI has published a report including a review of the petroleum subsector’s figures for fiscal year 2006. The EITI National Committee has recruited an independent director who will be in charge of the 2007 and 2008 reports as well as a validator who has already submitted a preliminary report. There is a strong possibility that Mauritania will achieve validation in September 2010. In addition, valid production-sharing contracts are published on the Ministry’s website.43
15.10 A National Oil Revenues Fund (FNRH) was created in 2006 and revised in 2008, and has been established to oversee the management of oil revenues by applying the principles of transparency and good governance. Tax revenue generated through oil-related activities and oil sales, contributions from oil companies, and paid fines are all deposited in the FNRH account, which is held by Banque de France. Annual withdrawals from the funds should be limited to amounts specified by the Finance Bill in accordance with an investment plan that has been duly prepared in advance, as with other investments made for the benefit of future generations.
Monitoring Oil Production Operations
15.11 This area of activity is often considered the Achille's heel of the public administration services despite the fact that the legal framework governing these activities
43 See: www.petrole.gov.mr
122 allows the State to control the entire oil chain. It should be pointed out that reports submitted by operators had never been seriously analyzed by the relevant sections within the Ministries. To overcome this weakness, the Department is making a special effort and plans to improve control and monitoring operations especially in terms of assessing compliance with contractual obligations as well as ensuring adequate technical and financial reporting measures. In addition, the institutional reform initiated in 2009 changed the status of the SMH from that of public enterprise to that of national government-owned corporation. This will result in greater involvement throughout the oil production chain and will develop the government’s expertise in terms of auditing and monitoring oil production activities.
B. MAJOR CONSTRAINTS
15.12 Although the oil sector in Mauritania is highly strategic and has strong growth potential, it continues to face many issues that hinder its development. Several factors have slowed exploration activity: i) structural weaknesses in the sector; ii) a drop in production in the Chiguetti field; and iii) a dramatic increase in service costs, particularly those costs related to the leasing of equipment used for drilling in deep waters.
15.13 An adequate oil strategy is currently lacking. To date, the Department has not succeeded in establishing a coherent strategy for the promotion and exploitation of oil blocks, nor has it established control procedures for the monitoring of contractors throughout the country. Thus it is often reduced to managing issues on an emergency basis.
15.14 Operational capacity remains limited and Department officials lack motivation. Despite several attempts, the Department has not succeeded in establishing an operational division that would be efficiently involved in the sector’s various specialties. This failure has resulted in overlapping responsibilities between the Department and the SMH. Moreover, Department pay is low, which leads to difficulties in attracting skilled candidates capable of fulfilling the requirements specified in the Department's organizational flowchart.
15.15 The current legal framework is inappropriate. Legal, tax, accounting, and technical services present inconsistencies. As an example, current energy-related legislation, namely Decree 88.151, does not mention important issues such as oil cost recovery schedules, funding methods for the various options for State participation in the sector, or the fall in oil exploration activity.
15.16 The awarding of oil contracts without competitive bidding has led the Government to allocate blocks to companies that lack the technical and financial skills stipulated in Decree 88.151. The fact that minor companies have been granted contracts in the past is an indicator of the significant risks involved as holders of some oil securities speculate on the value of purchased oil blocks without having fulfilled their financial and material obligations in accordance with the Petroleum Allocation Contracts (CPP).
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C. RECOMMENDATIONS
Short-term Recommendations
15.17 The following actions are recommended in reference to a strategic framework for the sector:
Adopting an Oil Code that will solidify the key provisions of oil contracts, including economic and financial provisions, with a view to limiting the power of State negotiators. In fact, the Government should promulgate the Code only subsequent to the discovery of a new deposit in the Taoudeni Basin as this would improve its negotiating position at the head of an oil producing country; Developing an oil strategy that takes into account the strategic guidelines set by the Government, the domestic situation (and its potential weaknesses), and the international situation; Immediately establishing a transparent system that will force applicants to compete for the acquisition of new oil blocks. 15.18 The following actions are recommended in order to improve performance by the Department in charge of oil resources within the Ministry of Energy and Petroleum Resources:
Developing a targeted recruitment plan that will attract the best talent in the country, with remuneration that is attractive to applicants; Monitoring the operations as well as the human and material resources necessary for carrying out this mission; Reestablishing training options for specific profiles (engineers, petroleum and oil lawyers, economists, and auditors). 15.19 The following actions are recommended in reference to exploration and oil production:
Conducting renewed exploration activity in sedimentary basins in order to raise the country’s reserves. This may be achieved by strictly complying with contractual obligations and by the Government's refusal to grant unjustified permit extensions; Increasing production capacity by increasingly developing the Chinguetti field as well as further developing oil production in the Banda and Tiof fields in the near future; Encouraging a stable business environment by establishing an appropriate working atmosphere that will allow exploration companies to engage in investment and oil producing activities undisturbed. This could help increase the level of investment in oil and gas activities.
Medium-term Recommendations
15.20 The following actions are recommended in reference to exploration and oil production:
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Launching production operations in Mauritania’s first gas-producing field in order to allow the country to play an important role in terms of energy supply for coastal countries in the medium term; Increasing the volume of recoverable reserves through a comprehensive assessment of fields that have already been discovered: Tevet Labeidna, Pelican, Tiof, and Faucon; Encouraging and promoting partnerships between the public and private sectors by: o Defining projects involving the required infrastructure for oil transportation and port facilities; o Developing a strategy that will attract investment in the areas of transportation and port facilities. Concluding audit files for recoverable oil costs connected to specific exclusive exploration permits (EEP).
D. CHALLENGES TO IMPLEMENTATION
Lack of organized task implementation as applications are not being processed in accordance with established procedures; A need for a capacity building program in both the short and medium terms that would help provide the Department with the tools it requires to accomplish its mission; A need to create a working atmosphere among the various operators that will focus on sharing geological and geophysical data. Failure to establish cooperation at this level has made it difficult to share geological information and to raise the success rate of exploration drilling operations; Inadequate coordination between exploration and production companies in maintaining drilling rigs (onshore and offshore). This has had a negative impact on exploration costs in Mauritania.
E. ANALYTICAL GAPS
15.21 Studies that should be performed in priority are:
Oil strategy, including the promotion, training, and monitoring of contractual obligations; Oil mining land registration project that would be publicly available and provide all information required by partners and other operators. This project is currently in progress through Phase II of the Mining Sector Institutional Strengthening Project (PRISM); The GIS project; The Data bank project. This project is included in the 2010 Consolidated Investment Budget (CIB).
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Annex 1: Mauritanian Financial Sector Assessment Program Classification of Action Plan into Immediate, Short, Medium, and Long Term Measures
START OF MEASURES COMPLETION OF MEASURES IMMEDIATE Central Bank Review of BCM Articles of Association Immediate Banks and Financial Adoption of a new banking law Immediate Institutions Ever more rigorous application of prudential standards, especially Ongoing as regards relationships with relatives Strict application of the Trading Code, including penalties Ongoing Publicizing the importance of financial statements Medium Term Increasing competition in the banking sector by: i) encouraging the Medium Term entry of two new independent banks, preferably with a strong foreign partner of choice with proven experience; and ii) supporting the efforts of the two national banks, which are currently negotiating the opening up of their capital to foreign investors A batch of measures aimed at encouraging: i) economic actors to produce more reliable financial statements; and ii) auditors and Medium Term statutory auditors to fulfill their role in this regard Increase banks’ minimum capital
Long Term Microfinance Completion of the review process of legislation including Immediate instructions and accompanying annexes SHORT TERM Central Bank Entrust to the BCM the regulation and supervision of all financial Ongoing institutions including insurance companies and the financial services of the Post Office Introduction of BCM bonds or cash absorption/injection by tender Ongoing offers or other tools to increase BCM influence over the banking system’s cash flow Conducting an impact study of the introduction of BCM bonds on Short term the bank’s operating account and asset balance, using several scenarios, in the context of an active monetary policy Consolidation of the framework for cash projections Improving the operation of the default payment file Short Term Short Term Banks and Financial Strengthen on-site inspections of banks Ongoing Institutions Strengthen the professional code of conduct of auditors and Medium Term statutory auditors for failing accounts and their authorization requirements Introduce a technical assistance program to strengthen the auditing Long Term profession and facilitate the implementation of financial statements by businesses Microfinance Strengthen microfinance supervision within the BCM Ongoing Establish the production of reports on a less frequent basis than for Ongoing commercial banks Increase the ratio of liquidity from 8% to at least 50% Ongoing Strengthen working capital standards Ongoing Provide new amenities for units with a minimum organizational and Short Term professional capacity Withdrawal of amenities from non-viable institutions and Short Term regularization of networks or organizations working in microfinance in Mauritania illegally Short Term Implementation of a study/assessment of microfinance institutions
Establish an accounting plan specially designed for the profession Medium Term Strengthen efforts for the provision of training to create a pool of
experienced professionals and gradually disengage the government Medium Term from the CAPEC network to promote its autonomy as well as
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START OF MEASURES COMPLETION OF MEASURES competition Insurance Promulgation of missing implementing decrees for compulsory Short Term insurance and close supervision of their effective application Increase minimum capital Establish a supervision manual for off-site and on-site inspections Short Term and an insurance chart of accounts Medium Term Social Security Reduce administrative expenses Short Term Legal and Legislative Prohibit bad debtors from having access to tender offers for public Ongoing Framework procurement Realistic ranking of measures included in the Report on the Judicial Short Term Process Establishing a five-year financial plan for judicial reform Short Term Effective application of commercial law and of credit through the Short Term adoption of the necessary legal texts Constitution and registration of mortgages Short Term Establishing a significant allowance for the amount of the reserve Short Term price in a second auction to facilitate the sale of foreclosed assets Adoption of the new law on debt collection (detailed notes on this Short Term task are shown above)
Distribution and broader dissemination of the law Long Term Payment System Adoption of a law on means of payment (covering the entire range Short Term of means) and inclusion of electronic proof in the Trade Code Study on the implementation of a system of electronic compensation with real-time settlement for large amounts Medium Term Promotion of banking by paying civil service and large company salaries into bank accounts and the compulsory payment of large Medium Term amounts by check, bank transfer, or drawdown MEDIUM TERM Central Bank Encouraging the development of the interbank market Medium Term Feasibility study on the creation of a business balance sheet bureau Medium Term at the BCM Banks and Financial Improving the management of banks, internal monitoring, support, Medium Term Institutions and monitoring of credit Encouraging the development of leasing, factoring, and venture Long Term capital Post Office Financial Restructuring the financial services of the Post Office Medium Term Services Microfinance Providing lines of credit without subsidy and as temporary support. Medium Term The proposed regrouping of these within a single agency has merit as long as this agency’s structure is very light Development of computerized management tools and of automated treatment of periodic declarations Long Term Insurance Definition of the broker’s Code of Conduct and issue of pending Medium Term licenses Return legislation regulating RC Auto to international standards Medium Term and review premium rates Separation of general insurance from life insurance Medium Term Social Security Update the actuarial study carried out in 2000-2002 by the Long Term International Labor Organization (ILO) as a precondition of the planned parametric reforms Long Term Computerization of files and procedures for handling CNSS data Increase workers’ affiliation and improve debt collection and Long Term contributions Legal and Legislative Sanitize the legislative sector by applying existing regulations and Ongoing Framework enhancing the status and skills of actors Improve the efficiency of the Codification Commission to help Medium Term formulate an appropriate and harmonized law for the medium term
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START OF MEASURES COMPLETION OF MEASURES Improve the security framework for private property Medium Term Simplify the foreclosure procedure established by the Code of Civil Medium Term Procedures LONG-TERM Legal and Legislative Improve the system of land ownership, facilitating access to land Long Term Framework ownership and the direct acquisition of land without an at-will transition
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Annex 2: Fisheries – Summary of Key Actions Proposed over the Next Five Years
The table below prioritizes the actions that the Government plans to carry out over the next five years. Note, however, that the sector’s strategy and managerial actions are subject to a participatory consensus. Moreover, a number of uncertainties still need to be considered in the negotiation process. Major uncertainties include: i) cephalopod stock recovery time, which depends on reduced fishing pressure; ii) demersal fish recovery time; iii) the impact on the fishing of small pelagics; iv) the feasibility of restructuring the tax system to offset a possible drop in EU financial compensation; iv) the possibility of achieving a negotiated settlement involving all key stakeholders in the fisheries sector; and v) the success of efforts to attract public and private funding as well as donors who would support the proposed actions.
KEY ACTIONS INITIATOR 1. General: Setting up an array of mechanisms and measures necessary for managing the sector: MPEM/DSPCM Create a register of all fishing vessels operating in the Mauritanian Exclusive Economic Zone (EEZ); Complete the technical and regulatory audit of the national industrial fleet; MATEMA Institute registering and deregistering rules for domestic fleet fishing vessels; Create an effective system for monitoring catch data including a social- MPEM/DSPCM/IMROP + economic fishing monitoring mechanism. FNP '' 2. Setting fishing and catch objectives (for cephalopod fishing, through an approach that can be applied to other fisheries): Convert research findings on excess fishing into operational recommendations to identify fishing opportunities; Develop and evaluate various scenarios for allocating fishing opportunities, MPEM + IMROP + FNP taking into account objectives on reducing overall fishing; Develop fishing clearance programs through a register of vessels authorized to MPEM + IMROP + FNP + fish and the application of rules related to the licensing system coupled with the SMCP + MAED determination of a permissible catch size (PCS); Create a mechanism for supporting fishing capacity adjustment measures, '' including:
◦ Establishing fishing licenses and fisheries licenses without working plans and that are fully exploited (demersal fish, small pelagics); ◦ Creating a national fishing register; MPEM/DSPCM ◦ Carrying out the registration of non-industrial boats and maintaining a dedicated register; ◦ Evaluating and adapting zoning regulations based on conservation and development objectives.
3. Improving planning tools and strengthening the capacity of key institutions (cephalopods and other fisheries): Consolidate a monitoring and control system for industrial fishing, notably through the establishment of a notification system for catch landings;
As regards small-scale fishing, strengthen catch control by limiting authorized landing points; Develop a forward-looking resource evaluation method for determining fishing MPEM/DSPCM opportunities from one season to the next;
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KEY ACTIONS INITIATOR Estimate fishing capacity adjustment possibilities; '' Develop a suitable transferable individual quota system (TIQ); MPEM/IMROP + Foreign Assess the current and future role of SMCP; Institute Implement the shrimping development plan; MPEM + Foreign Aid Strengthen economic, fisheries, and oceanographic research; IMROP /MPEM MPEM/MAED Consolidate fisheries monitoring; MPEM Strengthen capacity for health inspections and safety controls; IMROP Strengthen consultation mechanisms and the participatory approach; MPEM/DSPCM MPEM/IMROP/ONISPA Strengthen capacity for the sea fishing profession. Multiple Partners + CCNADP '' 4. Promoting the establishment of a competitive national fishing industry that makes a
larger contribution to the nation’s economy:
Restructure the domestic fishing industry by replacing part of the industrial fleet with customized and more efficient ice-carrying or deep freeze vessels through the acquisition of new vessels or of used ones in good condition possibly in collaboration with foreign partners; FNP + MPEM + MAED + Increase the business climate by focusing on the financing system in the CPI + Foreign Shipyards fisheries sector and on legally securing investments and public-private partnerships (general application); FNP + MPEM + MAED + Control the development of small-scale fishing with the aim of increasing value CPI + Private Credit addition and employment;
Make better use of taxation to collect budgetary revenues by promoting a production-based taxation system (export duties) at a level consistent with the MPEM + MAED resource value (general application); Other development initiatives should include: MPEM + FNP + DSPCM
◦ Formulating a management and development plan for small-scale and coastal fishing (PADPAC); ◦ Promoting selective small-scale and coastal types of fishing; MPEM + FNP + IMROP ◦ Developing inland fishing and aquaculture; MPEM + FNP + IMROP + ◦ Developing fisheries products and pelagic fishing; Development Authority ◦ Studying private investment financing in the sector and defining a robust financial mechanism. '' '' '' 5. Developing port infrastructure: Update previous visibility studies, taking into account the future vision for the sector and upgrading and improving port infrastructure and service quality; MPEM + FNP + SMCP + Develop an optimal organization for port infrastructure; IMROP + MAED + CPI Strengthen the Nouadhibou port infrastructure and current management capacity; Port Authority Carry out a feasibility study to assess the need for improving small-scale fishing landing piers and to find a solution to saturation in the EPBR; MPEM + FNP + MAED '' Strengthen facilities in Nouakchott and Tanit and those along the coast (out of port). ''
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Annex 3: 2010-2012 Three-Year Action Plan for the Mining Sector
Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out
1.1. Collect legal General Mining and regulatory Convention in 1.1. Promote the texts into one Adoption of a review new legal x 2 document and competitive law and
frameworks distribute its subsidiary Subsidiary Place these texts legislation 1. Define sector legislation not up to online policies in the date mining sector and 1.2. Have ensure that the independent expert national mining 1.2. Assess the assess the Evaluation of the code is competitive relevance of legal relevance of the No independent strengths and and regulatory x 1 legal and opinion on the weaknesses of the texts and improve regulatory relevance of the law law in order to make as necessary framework after promulgation necessary changes Number of reviewed texts 2.1. Optimize State revenue by disseminating good governance and transparency 2.1. Share 2. Optimize the regulations and financial impact of Larger contribution mining sector’s by implementing - - 1 mining activities on To be assessed and reduction of contribution to the new mining the State budget exogenous effects State budget projects (see Objective 6) Reduce the impact of the global crisis 3.1. Create jobs 3. Maximize the and ensure 3.1. Number of mining sector’s insertion of - - 1 10% increase in jobs new jobs created Almost 11,000 jobs contribution to the unemployed by 2012 fight against graduates
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out poverty 3.2. Create a
mining school in 3.2. State of Construction and Mauritania to progress of the Feasibility study in equipping of train engineers 1 project progress classrooms and start in branches of classes linked to mining 3.3. Localize job 3.3. Rate of positions in 5% filled by expatriates MCM: 10% mining 1 expatriates by the TML: 17% companies end of 2012 3.4. Develop studies on and monitoring of the 3.4. Impact study direct and of mining on the Study completed
indirect impact of 3 economy and on None and regularly mining on other employment updated sectors and on employment
4.1. Monitor the Reports coming in work of 4.1. Number of irregularly Quarterly reports government 1 reports received and annual technical bodies annually Lack of and financial reports
4. Coordinate with communication government bodies 4.2. Organize periodic meetings 4.2. Number of
to assess work 1 meetings held Minimum of four None and its annually meetings per year development 5.1. Define annually the
nature and 5.1. Exploration Rate of activity: volume of work Rate:
to be done for the Surface explored 5. Develop mining 1 85% in 2012 year, by mining by operator To be defined exploration right, and inspect Volume of work Growth in volume and encourage per year (in MRO) of 10% per year mining exploration work
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out achieved
5.2. Monitor action plans and programs within 5.2. Rate of action Gradual increase, mining plans received reaching 90% in
companies to 1 Coordination and 2012 None achieve greater optimization of coordination and security control over Optimized security security 5.3. Institute a biannual meeting 5.3. Meetings held with exploration Attendance rate for companies to 1 Attendance rate over companies at None assess their work 70% meetings and coordinate actions 5.4. Develop 5.4. Monitor monthly, quarterly, reporting in 1 and annual operators’ Partial introduction Regular reporting reporting periodic reports
5.5. Require communication 5.5. Rate of reports of periodic received, by mining 2010: 60% 1 reports according rights To be assessed 2011: 70% to deadlines and 2012: 80% in French
10 to 15% 5.6. Clear the 5.6. Rate of mining sector of inactive rights holders of 1 Cancellation: Rate of inactive To be assessed inactive mining rights cancelled rights 2010: 30% 2011: 50% 2012: 75%
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out 5.7. Encourage 5.7. Rate of annual new operators to growth in number begin exploration 1 10% annual growth of operators in 50 work on national rate mining exploration territory 6.1. Increase
mining 611: 10.5 MT production of: 6.1. Annual growth 611: 5 to 10% 1 612: 135,000 oz 6.1.1. SNIM rate of production 612: 150% (2012) 613: 120,000 Tcu 6.1.2. TML 613: 100% (2012)
6.1.3. MCM 6.2. Compensate the State for increased 6.2. Signed TML for possible production by 1 memorandum of TML: signed for new increase TML and MCM understanding 275,000 oz over the tax Also MCM holiday 6.3. Mining 6. Develop mining diversification and support for 6.3.1. Restart the mining operators phosphates 6.3.1. None for 11 project in Bofa years 6.3.2. Set up Completion of
Guelb Rhein III projects 6.3.1., 6.3.2. Bidding 6.3.3. Monitor 6.3.2., 6.3.3., and 6.3. Complete documents (DAO) the El Aouj 1 6.3.4. projects to start beginning of project 2010 6.3.4. Develop Progress in 6.3.3. UBS process artisanal mining implementing in progress 6.3.5. Support project 6.3.5.
new projects 6.3.4. None (Lebtheiniya, Gypsum, Uranium) 7.1. Conduct 7.1.1. Number of
airborne linear kilometers 1,250,000 over 1,500,000 7. Develop basic geophysical covered by kilometers covered kilometers covered geological 1 surveys to geophysical infrastructure improve coverage surveys
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out 7.1.2. Territorial coverage (%) 72% 90%
7.2.1. Map 80% coverage at 56% of territory 7.2. Conduct 1/200,000 covered geological 1 7.2.2. Number of surveys maps at 1/50,000 2011: 15 completed 0 2012: 30 7.3. Proceed with the synthesis and assessment of
Mauritania’s 7.3. Complete study Study to be mining potential In progress 1 completed by the US Geological Survey (USGS) 8.1. Finalize over 52 microprojects in the Zouerate- Boulanoir region 8.1. Number of Development of projects completed 21 52 new 3 microprojects in the corridor and beyond 8.2. Renovate 8. Support community populations in infrastructure in 8.2. Number of mining areas the Nouadhibou- 3 renovations In progress 6 Zouerate corridor 8.3. Study 8.3. Identified appropriate ways options for the to transfer the transfer of water
water and and electricity 2 In progress Complete study electricity services currently services currently provided by SNIM provided by to another operator
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out SNIM to another operator
9.1. Prevent negative impacts of mining on the environment by monitoring it and
participating in 9.1. Ongoing 9. Monitor the EIE process participation and Ongoing Environmental Ongoing 9.2. Improve monitoring Management 1 capabilities in the monitoring and assessment of environmental impacts
None 100% protection against piracy 10.1. Protect the land registry 10.1. Level of database database protection 10.2. Protect None 100% protection of against piracy database storage storage 10.2. Level of (stored on hard 1 database storage drives and on the protection Internet) 1 10. Protect data on 10.3. Possible data 10.3. Upgrade 1 mining rights and processing and software to quarries publication of enable systematic statistics analyses and 1
statistical data on 10.4. Access to the payments database via the 10.4. Place land None Possible data Internet registry data processing and online publication of statistical data
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out
None Giving access to the Land Registry database on the Internet
11.1. Conduct 11.1. Complete the 2 mining inventory task Under-explored Exploration drilling
in the Agane area region of the area 11.2. Conduct mining inventory 11.2. Complete the 11. Conduct in the South-East 2 task Under-explored Exploration drilling geological sector of the region of the area exploration drilling Zednes area and mining 11.3. Conduct inventories geological 11.3. Complete the exploration 2 task Lamina poorly Exploration drilling drilling of lamina mapped of the area in the Kankossa area 12.1. Renovate of laboratories for 12.1. Completion analysis and 2 rate for work None 100% provision of 12. Strengthen equipment OMRG technical 12.2. Percentage of 12.2. Acquire capabilities 2 equipment testing equipment None 100% acquired 12.3. Acquire 12.3. Percentage of
materials and 2 equipment None 100% exploration acquired
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Financing Due Date Importance
Actions to be Objectives Secured Mobilizable 2010 2011 2012 Indicators Current Position Target carried out equipment
12.4. Percentage of 12.4. Train 2 planned training personnel None 100% provided
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