Mauritanian businessman Moulay El Arby’s Istithmar to get $54 million backing for $220 million solar project

Mauritanian businessman Moulay El Arby, founder and chief executive of Istithmar West Africa, is seeking financing from the International Finance Corporation (IFC) for a major solar power project in Mauritania, as the country moves to expand electricity supply and reduce its dependence on imported fossil fuels.

The IFC is considering a loan of up to €48 million ($54 million) for the first phase of the development by Istithmar Green Energy S.A., a Mauritanian project company wholly owned by Istithmar West Africa. The proposed investment was disclosed on Oct. 26, 2026, and remains pending approval, with a projected board date of Nov. 30.

Istithmar West Africa, a diversified group spanning energy, industry, agri-food, and mining, with operations across six African countries, is developing the project under a 15-year public-private partnership with the Mauritanian government.

Solar plant to add battery storage and grid capacity

The first phase is expected to cost €197 million ($220 million) and will include a 168-megawatt-peak solar photovoltaic plant, supported by a 185 MW battery energy storage system with 370 megawatt-hours of storage capacity. IFC says it will contribute sector expertise, help mobilize additional financing and support environmental and social risk management. 

The development will also feature a 33/225-kilovolt substation, an approximately 350-metre overhead transmission line connecting the facility to the national grid and an access road linking the site to the Rocade ring road.

The system is designed to guarantee a minimum output of 60 MW between 9 a.m. and 5 p.m., while providing a dispatchable reserve of 60 MW for four hours between 7 p.m. and 11 p.m. The battery system is intended to smooth fluctuations in solar generation and help maintain a more reliable electricity supply. A second phase, excluded from the current IFC financing, is planned to add a 60 MW wind farm comprising 12 turbines, each rated at 5 MW.

IFC proposes $54 million loan for $220 million project

Alongside its proposed €48 million loan, IFC intends to mobilize the equivalent of €23 million in local-currency financing from Banque Populaire de Mauritanie.

The financing would provide longer-term funding in a market where commercial banks typically offer loan maturities of five to seven years. IFC is considering a financing package with an overall tenor of 12 years, potentially including concessional financing to help the project remain viable at a reasonable electricity tariff.

Istithmar West Africa has previous experience in power generation, having developed and operated independent power producer projects in Guinea and Niger. Its portfolio includes three thermal power plants with a combined capacity of 100 MW in Guinea and two plants with a combined capacity of 111 MW in Niger.

Project targets electricity access and energy transition

Initially established in 2016, the diversified Mauritian investment and conglomerate Istithmar West Africa (IWA) was founded and led by businessman M. Baba Ainina Moulaye El Arby (also known as Moulay El Arby) and operates multiple subsidiaries spanning critical sectors such as renewable energy, manufacturing, agri-food, and mining across several West African countries, including Mauritania, Mali, Niger, and Guinea

The project aims to address Mauritania’s electricity-access gap. According to the IFC disclosure, only 50.3% of the population was connected to the grid in 2023, while electricity consumption averaged 336 kilowatt-hours per capita, compared with a global average of 4,063 kWh.

The development is expected to increase electricity supply, improve grid reliability, and reduce greenhouse gas emissions from the power sector. It could also demonstrate the potential for private-sector investment in utility-scale renewable energy supported by large-scale battery storage.