Mauritania Unlocks Access to Additional IMF Loans
Mauritania has unlocked access to a $28.7 million loan from the International Monetary Fund (IMF) following the completion of its credit review. The Mauritanian authorities and IMF staff reached a staff-level agreement on the Fourth Review of Mauritania’s economic program under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF), and the Third Review of the Resilience and Sustainability Facility (RSF).
In an official note, IMF said economic activity was stronger than expected in 2024 and is projected to decelerate slightly in 2025, reflecting a contraction in the extractive sector.
The Fund added that pursuing the authorities’ rule-based fiscal policy and exchange rate flexibility will help support the economy’s resilience amid heightened global uncertainty, and executing the national governance action plan, in line with best practices, will foster the role of the private sector in the economy.
An IMF team, led by Felix Fischer said at the end of the meeting that, “The Mauritanian authorities and IMF staff have reached a staff-level agreement on policies to complete the Fourth Review of Mauritania’s 42-month blended EFF/ECF-supported program and the Third Review of the RSF.
Subject to approval by the IMF Executive Board, Mauritania will receive a disbursement of SDR 6.4 million, or about $8.6 million, under the ECF and EFF arrangements and SDR 14.86 million, or about $20.1 million, under the RSF arrangement.
This brought the total disbursement under the EFF/ECF and the RST to SDR 111 million, or about $148.4 million.
“Economic activity was stronger than expected, with a growth rate of 5.2 percent in 2024, higher than the initial projection of 4.6 percent. Economic growth rate in 2025 is projected to decelerate to 4.0 percent due to a contraction in the extractive sector.
“The medium-term outlook remains broadly positive, assuming further reforms will be implemented to diversify the economy and lift non-extractive economic growth. Performance under the program is broadly on track— all quantitative targets for end-December 2024 have been met.
“The fiscal adjustment was in line with the program targets due to higher tax revenue and spending restraint. The authorities’ commitment to a rule-based fiscal policy and exchange rate flexibility serves the country well in the context of heightened global uncertainty, and will help preserve macroeconomic stability and enhance resilience to shocks.
“The authorities committed to maintaining the non-extractive primary deficit at MRU 15.4 billion (3.4 percent of GDP) in 2025. Improved domestic revenue mobilization and better spending efficiency will help create fiscal space to meet Mauritania’s significant development needs while preserving the medium-term budget credibility.
“The IMF team welcomed the recent progress in structural reforms, including enacting the central bank and banking laws and the new investment code. They encouraged authorities to move swiftly to finalize the implementing decrees of the laws on SOEs, the investment code, and the free zone of Nouadhibou.
“Steadfast execution of the homegrown Governance Action Plan, including the laws on the declaration of assets and interests and the anti-corruption authority, in line with the best practices, will foster transparency and accountability and enhance the business climate.
“The authorities continue to advance their climate agenda to strengthen Mauritania’s resilience to climate change. The parliament introduced the climate contribution and adopted regulations allowing access of private energy producers to power transmission infrastructure.
“The mission discussed next steps towards introducing the automatic fuel price mechanism and stressed the importance of scaling up well-targeted compensatory measures to mitigate the effects on the vulnerable households”. #Mauritania Unlocks Access to Additional IMF LoansNGX lists Nigeria’s First Telecom Company, Legend Internet Plc
