Mauritania's informal sector plays a vital role in the country's economy, providing a livelihood for thousands of families through small businesses, transportation, craftsmanship, livestock, fishing, construction, and various services. According to the African Development Bank, this sector employs over 63% of the active population, making it a significant source of income and jobs, particularly for young people and women. However, this economy remains fragile, with most workers lacking contracts, pensions, or health insurance.
The informal sector's workers face significant challenges, including limited access to bank credit, public markets, and support programs. As a result, the state loses a portion of its tax revenue. To address this issue, the Mauritanian government has implemented several measures to support employment and facilitate entrepreneurship. The one-stop shop of the Mauritanian Investment Promotion Agency (APIM) has simplified the process of creating a business.
The government has also launched programs such as PEJ, PNIME, VADAAT, and MEHENTI, which provide training, financing, and support to young people, professionals, and small entrepreneurs. According to the government's report on the implementation of the SCAPP in 2024, these initiatives have contributed to the creation of 4,674 direct jobs, supported 739 entrepreneurs, and provided over 49,000 training and internship opportunities.
The government has announced additional initiatives, including a one-stop shop for entrepreneurship, a "Small Business Act" for Mauritania, and 3,000 loans through the CDD and ROCAPEC. While these initiatives are a step in the right direction, some are still in preparation, and their results need to be regularly evaluated and published. Moreover, these programs are still scattered and do not yet constitute a national policy dedicated to the gradual transition of the informal sector to the formal economy.
Neighboring countries, such as Senegal, Mali, and Morocco, have also implemented programs to address their informal sectors. Morocco, for example, has created a simplified status for solo entrepreneurs. These experiences demonstrate that administrative registration is not enough; small business owners and artisans need concrete benefits, such as access to credit, health insurance, pensions, training, and opportunities to participate in public markets.
To formalize the informal sector, Mauritania should consolidate existing initiatives into a coherent national strategy. This strategy could include a simple status for small businesses, low-cost registration, light taxation during the first years, and progressive access to social protection. The goal is not to combat the informal sector or impose new taxes but to support its transformation into a more productive, organized, and protective economy for its workers.
The informal sector represents a significant reserve of entrepreneurs, skills, and jobs, and its transformation can contribute to reducing unemployment, increasing state revenue, and supporting the country's economic development. A national debate on the future of the informal sector is necessary, bringing together the government, parliament, municipalities, banks, professional organizations, and, most importantly, the traders, artisans, transporters, fishermen, herders, women, and young people directly concerned.
Key points
- The Mauritanian government should develop a national strategy to formalize the informal sector, providing concrete benefits to small business owners and artisans.
