IMF disburses $71m for Niger, forecasts 10.6% growth in ’24

The International Monetary Fund (IMF) concluded the fourth and fifth Reviews of Niger’s Extended Credit Facility (ECF) and the first review under the Resilience and Sustainability Facility (RSF). This approval unlocks an immediate disbursement of around $71 million.

According to the IMF review, Niger’s economic situation has been severely impacted by political instability and sanctions since the military takeover in July 2023. Despite this, the IMF expects economy “to rebound briskly in 2024 to 10.6 per cent” driven by the start of oil exports and ensuing spillover effects across the economy – notably in the transport sector – as well as a robust in the production in the agricultural sector, and lifting of sanctions.

The IMF noted that Niger’s programme implementation was on track until mid-2023 but was disrupted by the political crisis, leading to debt service arrears. The authorities have committed to reforms to enhance fiscal stability and climate resilience.

Moreover, priorities include adopting an oil revenue management strategy, revising the General Tax Code, and improving governance and anti-corruption measures. Efforts to boost domestic revenue through digitalisation and rationalising tax exemptions are also emphasised.

Deputy Managing Director Antoinette Sayeh highlighted the importance of rebuilding fiscal buffers, enhancing social safety nets, and fostering private sector development to ensure resilient and inclusive growth. She also stressed the need for continued commitment to fiscal consolidation and prudent debt management. The progress under the RSF is welcomed, with calls for accelerated implementation of climate resilience measures to unlock further finance for related investments.

Attribution: IMF Statement