The Mauritanian National Assembly has approved a law to promote and develop small and medium enterprises, providing a unified legal framework and converting state employment commitments into practical mechanisms. The law, presented by Minister of Youth Empowerment, Employment, Sports, and Civil Service Mohamed Abdallah Ould Louly, aims to enhance public employment policies, promote competitiveness, and encourage entrepreneurship.
The law consists of 13 chapters and defines small and medium enterprises for the first time. It seeks to facilitate access to financing, reduce tax burdens on companies employing young people and women, and promote entrepreneurship. The law is part of President Mohamed Ould Cheikh El Ghazouani's "Ambition for the Country" program, aiming to support economic growth and job creation.
The law's approval comes amid Mauritania's economic challenges, including inflationary pressures and liquidity shortages. The Central Bank recently raised its main interest rate to 7.25%. Germany has provided €15 million to support financing for small enterprises and youth employment. The law is expected to be published, along with its implementing texts, to come into effect.
The law aims to support small and medium enterprises, considered a key driver of development, poverty reduction, and middle-class expansion. MPs emphasized the need to enable these enterprises to participate in public procurement and protect them from unfair competition with larger companies, particularly foreign firms operating in the same sectors.
The Mauritanian government believes the law will help address employment challenges and promote economic growth. The law's implementation is expected to enhance the business environment, increase access to financing, and reduce tax burdens on small and medium enterprises. This, in turn, is expected to promote entrepreneurship and job creation.
The approval of the law has been welcomed by stakeholders, who see it as a crucial step towards supporting small and medium enterprises and promoting economic development. The law's impact is expected to be significant, particularly in terms of job creation and poverty reduction. Its implementation will be closely monitored to ensure its effectiveness in achieving its objectives.
The law's approval is a significant step towards promoting economic growth and job creation in Mauritania. Its implementation will require effective coordination among government agencies, private sector stakeholders, and civil society organizations. The law's success will depend on its effective implementation and the government's commitment to supporting small and medium enterprises.
Key points
- The law provides a unified legal definition of small and medium enterprises and integrates the informal sector into the national economy.
- The law aims to facilitate access to financing and reduce tax burdens on companies employing young people and women.
- The law is part of President Mohamed Ould Cheikh El Ghazouani's "Ambition for the Country" program, aiming to support economic growth and job creation.
