La banque algérienne en Mauritanie ouvrira sa 3e agence à Zouerate en juin prochain
Summary of the Algerian Union Bank’s Expansion in Mauritania
Overview of the Algerian Union Bank (AUB)
The Algerian Union Bank (AUB) is actively expanding its presence in Mauritania, with plans to open its third branch in Zouérate in June 2024, as announced by Commercial Director Mohamed Zerrouki. Currently, the bank operates two branches in Mauritania, located in Nouakchott and Nouadibou, and has been operational since late 2023. AUB aims to enhance economic cooperation between Algeria and Mauritania by facilitating investment opportunities and export financing.
Upcoming Branch Openings
The upcoming agency in Zouérate, around 700 km northeast of the capital Nouakchott, is part of a broader strategy to further establish AUB in the region. Zerrouki indicated that additional branches would be opened in Nouakchott and other economically active regions of the country in the future.
Strategic Goals for 2025
Looking ahead, AUB has set ambitious targets for 2025 that include increasing its financing activities and improving transaction processing times for international operations. The bank aims to support its clients in connecting with Algerian businesses, facilitating cross-border economic activities.
Project Financing Initiatives
Currently, AUB is assessing several ‘interesting projects’ proposed by Algerian and Mauritanian economic operators. The bank prioritizes projects that demonstrate viability and profitability, contributing to the strengthening of economic collaboration between the two nations. In 2024, the bank is focused on establishing organizational structures and operational procedures while studying the unique features of the Mauritanian market.
Economic Potential of Mauritania
Mauritania offers significant economic potential, particularly in mining, fisheries, and energy sectors. It serves as a strategic gateway for Algeria to access West African markets, acting as a launchpad for exporting Algerian products. This aligns with AUB’s mission to promote Algerian exports through effective economic ties with Mauritania.
Capital Structure and Shareholders
With a capital of $50 million, AUB features a diverse ownership structure consisting of four public banks: CPA holds 40% of the shares, while BNA, BEA, and BADR each possess 20%. The strengthening of economic ties between Algeria and Mauritania has resulted in increased trade across various sectors, evidenced by numerous cooperation agreements and successful projects.
Infrastructure Projects
A notable initiative is the construction of the Tindouf-Zouérate road (840 km), which is expected to significantly impact economic and commercial relations between Algeria and Mauritania. This project has been managed by Algerian study offices, demonstrating cross-border collaboration in infrastructure development.
Algerian Products Exhibition in Mauritania
Zerrouki emphasized the importance of the upcoming Algerian products exhibition in Nouakchott, scheduled for May 22-28, as a catalyst for boosting trade between the two countries. AUB’s participation in previous editions has shown increased interest in Algerian products, aiming to facilitate trade and highlight the expertise of Algerian companies.
Conclusion
The Algerian Union Bank is on a promising trajectory to enhance economic cooperation between Algeria and Mauritania through strategic branch openings, project financing, and participation in trade exhibitions. With a focus on fruitful partnerships and a robust capital structure, AUB is well-positioned to leverage Mauritania’s economic potential for mutual benefit.
