Capacity-building and Institutional Support for the Nouadhibou Free Zone Authority

Unlocking the full potential of Nouadhibou Free Zone using the Jordanian expertise

Challenges

Mauritania, mostly a desert country with a population of 3.5 million, has reached a robust economic growth of 6.7% in 2013 and an estimated rate of 6.5% in 2014. The Gross National Income per capita stood at $1,060 in 2013 making it a lower-middle-income country.

In general, European countries remain the main economic partners of Mauritania with 48% of imports origin, whereas the Asian countries become the main destination with 57.1% of exports value. Minerals and metallic products remain the main components of exports in Mauritania.

Nouadhibou Free Zone (NFZ) was launched in June 2013 In line with the national vision to develop Nouadhibou Bay as the leading economic pole for the national economy, a trade logistical hub and a commercial gateway for the export of fishery and mineral products.

Mauritania, through Nouadhibou Free Zone, has a great potential to reach multi-sectorial development, which can have the positive needed impact on exports and employment. Fisheries industries, but also car/ parts industries, furniture industries among several sectors can be developed in NFZ, which will have dedicated industrial zones. To play its leading role, NFZ needs support for both capacity and institutional  development

Toward a Solution

On the 18 August 2014, a tripartite Memorandum of Understanding (MoU) was signed in Aqaba, Jordan,  by the Islamic Corporation for the Development of the Private Sector (ICD), the Nouadhibou Free Zone Authority (NFZA) and the Aqaba Special Economic Zone Authority (ASEZA). The MoU’s objective was to channel a series of capacity building and institutional support programs from the ASEZA to the NFZA that would enable the NFZA to deliver its challenging mandate for the region and the country throughout the emergence phase of the Zone. 
 
Through preliminary discussions, the following areas were identified as the current priorities for NFZA:
  1. Organizational Structure and Human Resources Management, 
  2. Financial Management, 
  3. Information Technology, and 
  4. One-Stop-Shop Systems (OSS) 

The Capacity Building and Institutional Support project itself consisted of a consortium of various operators, national authorities and international developmental associations who, over time, helped bring the project to fruition. At its core, the project was designed as a knowledge-transfer between ASEZA and the NFZA, in the domains of Human Resource Management, Finance, IT and (OSS). The choice for the knowledge partner  itself stemmed from a previous study on behalf of the NFZA for the establishment of a Special Economic Zone in the Nouadhibou region . The study had pre-selected various economic zones across the globes and cross-compared these on basis of similitude to that of Nouadhibou. ASEZA was selected as the optimal choice of reference and a model on which to deduce a set of best practices that would be transferable to the NFZA.  

During the project, 21 senior staff from the NFZA’s various corporate support departments were impacted by the ASEZA’s training and Centre of Excellence, with a total of 240 training days. The training consisted of 2 missions, one in the fourth quarter of 2017 and another in the first quarter of 2018. The listed departments were, respectively, those of HR, IT, Finance and ASEZA’s OSS. 

The project aimed to enable Nouadhibou Free Zone Authority (NFZA), to adopt international practices in organization design, human resources management, financial planning and management through a twinning program with the successful model of Aqabah Special Economic Zone. 

The achievements of this project can be listed as follows: 

  • At the end of the project, a complete strategy to enhance revenue and reduce costs was completed and staff were trained on financial planning and optimization.  
  • The NFZA HR core team was fully trained under the program “Modern Trends in Human Resources Management (org. structure, job description, performance appraisal, training needs & plan). 
  • The NFZA Finance staff was trained on new financial and accounting policies & procedures manual under the program Financial affairs staff training: Development of Financial and Accounting Policies & Procedures Manual”. 
  • IT skills of endusers and IT team were improved via capacity building, in order for them to interact with the planned technology upgrade. 
  • The current OSS Solution  was upgraded via capacity building 

In terms of sustainability, the involvement of the Government of Mauritania from the beginning shows the level of ownership and commitment and not only to implement this important project but also to continue benefiting from it in the future. This would ensure benefiting from the knowledge acquired with the support of the Jordanian counterpart and also continuing to develop them to stay in line with international best practices. Furthermore, the MoU signed among ICD NFZA and ASEZA is another strong element to ensure the continuity of cooperation between Jordan and Mauritania in continuing to work for the development of Free Zone authorities. 

This project is a real manifestation of the availability of technical knowledge and know-how in the Global South and also the willingness of developing countries to share their home-grown solutions to help each other solve development challenges through South-South Cooperation. This type of support can be replicated to other countries in the Global South to build the capacities of other Free Zone authorities. 
 
CONTACT INFORMATION
Mr.Lassaad Ben Hassine, Manager of AfTIAS Program, ITFC
SDG
17 - Partnerships for the Goals
SUPPORTED BY
Islamic Development Bank (IsDB)

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