An International Monetary Fund (IMF) staff team, led by Antonio David, conducted meetings from October 28 to November 9, 2024, to review Niger's economic program under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF). Discussions also included the 2024 Article IV Consultation.
Antonio David stated, "The Nigerien authorities and the IMF team reached a staff-level agreement on the sixth review of Niger’s economic program under the Extended Credit Facility, on the second review of the arrangement under the Resilience and Sustainability Facility and the 2024 Article IV consultation." The agreement awaits approval from IMF Management and Executive Board. A board meeting is anticipated in December 2024. Completion of these reviews could result in disbursements of SDR 13.16 million (approximately US$17.4 million) for ECF and SDR 25.66 million (about US$34 million) for RSF.
Despite challenges such as recent floods, banking sector liquidity tensions, and tight financing conditions, economic activity in Niger is expected to recover strongly this year. Growth is projected at 8.8 percent in 2024 due to oil exports, a favorable agricultural season, and lifting sanctions. Economic growth is expected to remain robust next year at 7.9 percent with inflation decreasing to 3.7 percent. However, risks remain due to potential security issues and tightening regional financing conditions.
"The arrangement under the Extended Credit Facility aims to strengthen macroeconomic stability," said David. Deviations from fiscal targets were noted but efforts are underway to address them. The authorities aim to meet a fiscal deficit target of 3 percent of GDP by 2025 while implementing tax reforms.
RSF financing supports climate change-related reforms aimed at building resilience and safeguarding livelihoods. Significant progress has been made in tracking climate-related expenditures and analyzing fiscal risks linked to natural disasters.
Discussions also focused on efficient resource use, expanding fiscal space, managing fiscal risks, strengthening private sector growth contributions, transparency enhancement, and anti-corruption measures.
The mission engaged with Prime Minister Ali Mahamane Lamine Zeine; Deputy Minister Moumouni Boubacar Saidou; National Director Maman Laouali Abdou Rafa; other officials; private sector representatives; civil society; and development partners.
David concluded by thanking "the authorities for their excellent cooperation and constructive discussions during the mission."