Energy Diplomacy in Mauritania: A Delicate Balance
Energy and geopolitics are making Mauritania a more desirable prospective ally for many, opening gates for faster and broader development in the country.
In just two weeks, the Islamic Republic of Mauritania has signed Memoranda of Understanding (MoUs) with both Morocco and Algeria to strengthen its energy sector. Last Thursday, the state-owned Algerian oil company Sonatrach signed an MoU with the Mauritanian Hydrocarbons Company (SMH), following a similar agreement with Morocco one week earlier focused on electricity and renewable energy cooperation. Mauritania has also recently signed agreements with China and the United States, including a historic $27 million U.S. grant for the power sector, adding complexity to its position. These developments allow Mauritania to leverage the rivalry between Algeria and Morocco, as well as the broader China-U.S. rivalry, as both North African powers and global giants vie for access to the vast Sub-Saharan market.
Mauritania's Energy Sector: An Arena for Geopolitical competition
Although Mauritania's oil and gas reserves are relatively modest, global interest is growing, particularly in its offshore fields like Tortue and BirAllah. These fields, being explored by the U.S. and UK, are estimated to hold around 3,100 billion cubic meters of gas, leading many to view Mauritania as a potential future gas giant in Africa. This growing interest aligns with Mauritania’s broader energy strategy, which aims to achieve 30% of its electricity generation from renewable sources by 2030. Mauritania's economy relies heavily on natural resources and has historically lacked the infrastructure to drive growth, as evidenced by a declining economic growth rate over the past few years, according to the African Development Bank and the International Monetary Fund (IMF). Investment in the energy sector, particularly renewables, is seen as crucial for diversifying the economy, creating jobs, and reducing dependence on foreign aid.
The sector is also an important avenue of the Algero-Moroccan rivalry, as both countries compete to strengthen their regional dominance in relation to Western Sahara. Algeria views Mauritania as a new market for energy exports and a way to diversify its investments, while Morocco is focused on Mauritania's renewable energy potential, particularly solar and wind, to support its energy transition and enhance its leadership in clean energy. Similarly, China is investing in Mauritania’s renewable sector as part of its strategy to expand green energy in Africa. In this context, the new memoranda with the North African countries signal growing competition in the region. Mauritania’s agreement with Morocco will focus on sharing expertise in energy security, electrifying rural areas, and establishing an electric interconnection between the two countries. The more recent MoU with Algeria also emphasises expertise exchange, specifically in the hydrocarbons sector, with experts from the Algerian Petroleum Institute (IAP) and Sonatrach Management Academy training SMH personnel.
US Intensifies Anti-BRICS Efforts
On January 8, the former Biden administration signed a $27 million Millennium Challenge Corporation (MCC) Threshold Program agreement with Mauritania to fund power sector development, grid management, electricity regulation, and infrastructure improvements. The agreement includes debt-free grants to support these initiatives, which, although significant, are still small compared to China’s larger investments in the country. Nonetheless, the MCC's initiatives seem to align with recent U.S. sanctions that blocked a €40 million sales contract between Mauritania and the Chinese defence company Poly Technologies for patrol boats, a deal the Biden administration had previously suspended. Taken together, these American actions indicate an intensified focus on undermining Chinese ambitions in the region. However, with U.S. President Trump's cuts to foreign aid, these anti-China efforts may prove limited: aid agreements like the MCC could decrease, and the absence of a strong American alternative to sanctioned Chinese investments may lead to increased Algero-Moroccan engagement in Mauritania, and Africa more broadly.
The US is also seeking to ensure Russia does not gain a foothold in Mauritania and try to turn the country into an ally like Yemen which may threaten narrow shipping routes passing through the region. Such a scenario would endanger the strategic security of the US and the EU and give Russia excess leverage. Hence, the US is interested in ensuring Mauritania is at least neutral if not an ally of the West.
