The objective of the Business Environment Enhancement Project for Mauritania are to enhance the business climate through improvement in the financial, legal and judiciary sectors, and regulatory environment for business, and the support of measures to restructure selected Public Enterprise (PEs). This will facilitate private sector led growth investment in the economy and improve the services of the PEs that directly impact private sector growth and development. There are two components to the project. The first component is for the improving the business climate to foster private sector development. The first component supports Government of the Islamic Republic of Mauritania (GIRM's) efforts to: (a) strengthen the financial sector and thus improve access to finance; (b) improve the legal and judicial framework for business and financial activities; and (c) streamline the regulatory environment and reduce the administrative barriers for commercial activities. There are three sub components to the project. The first subcomponent is underpinned by recommendations from the Financial Sector Assessment Program (FSAP) and supports GIRM's efforts to develop a solid and efficient financial sector and to increase access to financial services. The second subcomponent, based on recommendations from GIRM's Report on Justice and Judicial Reform as well as those of the FSAP, will finance activities that support improvements to Mauritania's legal and judicial environment for business and credit-related activities. The third subcomponent addresses streamlining the regulatory environment for business, including through: (i) the preparation of reforms to improve the business climate such as to facilitate business start-up, simplify corporate taxation, improve trading across borders; and (ii) the development o f an incentive system for private investments and assistance in establishing and maintaining appropriate institutional arrangements for investment promotion. Finally, the second component is for the building public-private partnerships and productivity enhancement. In order to sustain its economic performance and reduce poverty, a deeper and more ambitious public sector reform program is envisaged by GIRM. This component, therefore, will support improving corporate governance in a select group of PEs and several reform measures in the Mauritanian electricity sector to attract increased private sector investments and participation in the local power market.
