Mauritania is grappling with a significant increase in the cost of living, as the country's annual inflation rate reached 9.3% in September 2026. The prices of food items rose by 1.1% within a month. A simple calculation shows that a family spending 20,000 ouguiyas per month needs an additional 22,320 ouguiyas per year to maintain their consumption if prices rise by 9.3%.
The surge in living costs is not unique to Mauritania, as global events such as wars, international tensions, and supply chain disruptions have driven up energy, transportation, and insurance costs, ultimately affecting food prices. This is particularly challenging for economies heavily reliant on imports. While the government cannot control global crises, it can mitigate their impact on citizens.
The Mauritanian government, led by Prime Minister Moukhtar Ould Aje, has implemented measures to alleviate the burden on citizens, in line with President Mohamed Ould Cheikh El Ghazouani's directives. The government has allocated 340 billion ouguiyas, over 26% of the 2026 budget, to social programs. These initiatives include assistance worth 30,000 ouguiyas to 124,000 families and 45,000 ouguiyas to low-income employees.
Additionally, the government has introduced support for fuel and household gas, maintained electricity prices, and launched the "Aoun" program with a 1.2 billion ouguiya budget to aid vulnerable groups. These interventions are crucial, but sustaining their impact requires addressing factors that erode citizens' income, such as the costs of financial services.
The 2026 tax framework introduced a 0.1% tax on certain electronic transfers exceeding 5,000 ouguiyas and increased the tax on some electronic payment service commissions to 20%. The International Monetary Fund estimates that the transfer tax will generate around 500 million ouguiyas in revenue annually. However, this move may affect financial inclusion.
To protect citizens' purchasing power, experts recommend reviewing taxes and fees on basic consumption and services, reducing the cost of small transfers, and promoting competition to combat monopolies and unfair speculation. The government should also develop programs to support vulnerable families and regularly review minimum wages and pensions.
Other proposed measures include reducing transportation, energy, and production costs, encouraging agriculture and food industries, and diversifying import sources. Establishing a purchasing power observatory to track the cost of living and implementing an "impact test on purchasing power" before introducing new taxes or fees can help ensure that economic growth benefits citizens.
Key points
- The Mauritanian government has allocated over 26% of its 2026 budget to social programs
- The country's annual inflation rate reached 9.3% in September 2026
- Experts recommend reviewing taxes and fees on basic consumption and services to protect citizens' purchasing power
