Financing a farm or a herd in Mauritania
In Mauritania, agricultural credit mainly serves irrigated rice farming in the Senegal River valley and, to a lesser extent, livestock. The main sources are the Caisse de Dépôts et de Développement, a few banks, rural microfinance funds and input murabaha.
The river valley, heart of irrigated farming
The Chemama, from Rosso to Boghé, Kaédi and Gouraye, concentrates the country's irrigated farming, mainly rice but also market gardening and sorghum. These schemes need fertiliser, fuel for pumping and ploughing services every season.
Seasonal credit for rice growers
Seasonal credit finances inputs at the start of the season and is repaid after the harvest and sale of the paddy. The rainy season and the hot off-season follow two separate calendars, which must be respected to obtain the next loan.
The CDD's role with rice farmers
Since its creation in 2011, the CDD has taken over from the former agricultural credit body to finance many rice farmers. Repayment arrears led to legal action in Rosso in 2016, a reminder that these public loans remain due.
SONADER and irrigation scheme development
SONADER, the state rural development company, develops and rehabilitates irrigated schemes. A developed plot that has been allocated and farmed regularly is a strong argument when a farmer applies for seasonal or equipment financing.
Financing camels, sheep and cattle
Livestock, the rural backbone of Mauritania, receives little bank financing, because mobile herds are hard to take as collateral. Herders rely instead on savings held as animals, on family or on microfinance funds for their needs.
Dairies and fattening before Tabaski
Milk collection around Nouakchott, Boutilimit or Rosso and fattening sheep before Tabaski offer short cycles well suited to microcredit. The terms of these small loans are set out in microcredit in Mauritania.
Murabaha for inputs and equipment
Islamic banks can buy fertiliser, seed, motor pumps or rice hullers and resell them to the farmer with a margin payable after harvest. This arrangement avoids interest and ties the financing to concrete equipment.
Collateral accepted in rural areas
Since most farmland has no land title, lenders rely on the joint guarantee of cooperatives, a pledge over the harvest or a sales contract with a rice mill. Customary ownership remains difficult to mortgage in practice.
Cooperatives and village groups
Producer cooperatives in the valley pool applications, buy inputs together and organise repayment. For a smallholder, belonging to a solid group makes access to seasonal credit much easier and often lowers input costs too.
Climate risks and insurance
Drought, an insufficient flood, attacks by grain-eating birds or locusts all threaten harvests. Agricultural insurance remains rare, so a poor rainy season can make repayment difficult, which is why a prudent loan amount matters.
The wider picture and a Malian comparison
Rural credit fits into the landscape described in our general guide to credit in Mauritania. In Mali, Office du Niger rice relies on other institutions, presented in our page on loans for Malian farmers.
Oases of Adrar and Tagant
In the palm groves of Atar, Chinguetti or Tidjikja, growers finance boreholes, solar pumps and the upkeep of date palms. These investments often go through family, the diaspora or small loans from local savings funds.
Getting an agricultural loan in Mauritania
- Join a recognised cooperative or producer group in your area, for example around Rosso or Kaédi.
- Work out the season's needs in ouguiyas: area, inputs, fuel, ploughing and labour.
- Ask the CDD, a bank or a rural fund about the calendar for submitting applications.
- Provide proof that you farm the plot and, if possible, a sales contract with a rice mill.
- Use the funds for the planned inputs and repay as soon as the harvest is sold.
Components of farm financing in MRU
| Item | Content | What makes it vary |
|---|---|---|
| Cost of credit | Interest or murabaha margin | Institution, length of season |
| Inputs financed | Fertiliser, seed, treatments | Area, crop, market prices |
| Fuel and pumping | Irrigation of the schemes | Distance from river, equipment |
| Cooperative contribution | Membership fee and group guarantee | Group's statutes |
Supporting documents for a farm loan application
- Biometric ID card with NNI
- Certificate of allocation or use of the plot
- Certificate of cooperative membership
- Season budget and list of inputs
- Purchase contract or commitment from a rice mill
- Repayment record from previous seasons
Missteps that ruin a season financed on credit
- Using fertiliser credit for other household spending, which cuts yields and makes repayment after harvest difficult.
- Not repaying a season's loan in the belief that a public loan will be written off, when the CDD has already taken legal action.
- Sowing late in the valley and missing the season's window, exposing the crop to birds and cold.
- Selling the harvest on credit to an unreliable middleman just as the loan falls due.
- Borrowing to enlarge the herd without planning animal feed in case of a poor rainy season.
Lenders to contact
- Banque pour le Commerce et l'Industrie (BCI Mauritanie): Mauritanian commercial bank providing banking services and financing to individuals, professionals and companies operating within the country.
Questions from Mauritanian rural producers
Which body finances rice farmers in the valley?
The Caisse de Dépôts et de Développement has played an important role since 2011, alongside banks, microfinance funds and rice mills. Conditions vary from one season to the next, so farmers should enquire before the season begins.
Can you get a loan to buy livestock?
Banks rarely finance traditional herding. Microfinance funds sometimes offer short loans for fattening or dairy production, and some Islamic banks can finance the purchase of animals through murabaha.
Do you need a land title for an agricultural loan?
Usually not for seasonal credit: the group guarantee, the certificate of use and the harvest sales contract serve as collateral. For a large investment, however, the bank will ask for stronger security such as a mortgage.
Is crop insurance available in Mauritania?
Agricultural insurance remains very underdeveloped. Farmers should therefore limit their borrowing, diversify their crops and ask their cooperative about any support mechanisms available in the event of a loss.