World Bank launches Compacts initiative

The World Bank, led by president Ajay Banga, has introduced a new program called Compacts to support the development of mining resources in four African countries, including Mauritania. This initiative is part of a larger strategy to ensure that local communities benefit more directly from mining activities.

Compacts focus on partnerships and planning

Launched during the World Bank's annual meetings in Bangkok on October 16, the Compacts program involves working with governments to create detailed roadmaps. These plans outline necessary reforms, infrastructure improvements, and skill development to support the mining sector's growth, with clear goals and deadlines set for implementation.

Zambia targets copper industry expansion

Zambia, the second-largest copper producer in Africa, is aiming to boost its underused copper wire and cable manufacturing sector. The country hopes to increase its production capacity by 2029, but challenges such as low production levels, dependence on copper prices, and electricity reliability remain significant obstacles.

World Bank supports Zambia's mining goals

The World Bank is working to help Zambia by attracting financial partners and supporting local suppliers in accessing credit and improving their skills. A new 80 million dollar support operation for the mining sector is currently being planned in Lusaka to assist these efforts.

Mauritania's focus on iron ore production

Mauritania's efforts under the Compacts initiative center on the National Industrial and Mining Company (SNIM), which played a major role in the country's GDP and exports in 2023. The nation aims to produce 10 million tons of iron ore pellets annually by 2035 and build a hot-briquetted direct-reduced iron facility by 2040.

Mauritania needs infrastructure and funding

Achieving these goals requires additional energy, water, and logistical infrastructure. The World Bank's DREAM project, approved in 2025, supports these efforts. Additionally, the IFC, a private sector arm of the World Bank, signed an agreement with SNIM in July 2026 to prepare projects and secure funding.

Malawi targets mineral processing improvements

Malawi, which has a smaller mining sector contributing less than 1 percent to its GDP, is focusing on developing its resources such as graphite, rutile, rare earths, and niobium. The government plans to specify mineral processing requirements by 2027 and improve geological data and permit management with a 70 million dollar World Bank project.

Malawi aims to increase local economic benefits

The goal of this project is to increase the share of mining expenditures that benefit local communities from less than 5 percent to 15 percent by 2030. This would help ensure that more of the economic benefits from mining stay within the country.

World Bank addresses employment and funding challenges

Ajay Banga emphasized the need to address shrinking government budgets and the rising demand for jobs, particularly as the region is expected to need 400 million new jobs in the next ten to fifteen years. The World Bank aims to use its funding and support to attract private investors and develop these industries.

Future of the Compacts initiative uncertain

While the initiative includes twenty potential countries, the final list has not been disclosed. It remains unclear how much funding will be allocated to support local transformation in the affected African countries, highlighting the ongoing challenges in implementing such large-scale development programs.