The International Monetary Fund (IMF) Executive Board has concluded the 2024 Article IV consultation with Mauritania, alongside completing the third reviews of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), as well as the second review under the Resilience and Sustainability Facility (RSF). These arrangements were initially approved in January 2023 and December 2023, respectively.
With these reviews completed, Mauritania will receive an immediate disbursement of SDR 6.44 million (approximately US$8.4 million) under the ECF/EFF and SDR 29.72 million (around US$39.0 million) under the RSF. This brings total disbursements to SDR 89.7 million (about US$117.7 million). The IMF Executive Board also approved a modification to the quantitative performance criterion on new debt contracted or guaranteed by Mauritania's government for 2024, while maintaining public debt at a moderate risk level.
Mauritania's economy has shown resilience amid ongoing reforms by its government, though economic activity is projected to slow to 4.6 percent in 2024 due to a contraction in extractive activities. Growth is expected to decelerate further in 2025-26 but remain favorable over the medium term, despite risks such as regional instability and climate events.
Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF Executive Board, stated: "Backed by sound policies, Mauritania’s economy continued to grow in 2024, inflation remains contained, and fiscal performance remained in line with the medium-term goal of declining external debt."
The IMF emphasized that prudent fiscal policy supported by revenue mobilization could create space for infrastructure and social spending while preserving debt sustainability. Reforms in banking supervision are seen as crucial for broadening access to finance and strengthening economic growth.
Program performance was noted as strong across its three pillars: fiscal sustainability, exchange rate flexibilization, and governance reforms. All quantitative targets for June 2024 were met.
The IMF highlighted key measures needed for future progress: broadening tax bases, improving tax administration, enhancing public investment efficiency, reducing excess liquidity in banking sectors, and implementing structural reforms aimed at inclusive growth.
Executive Directors welcomed Mauritania's commitment to maintaining macroeconomic stability while acknowledging significant downside risks like security issues in the Sahel region and climate shocks. They stressed continued fiscal discipline to support sustainability goals and encouraged further enhancement of monetary policy frameworks.
Directors also called for more ambitious domestic revenue mobilization efforts while ensuring adequate public investment to support vulnerable populations. Strengthening governance transparency was underscored as essential for fostering private-sector-led growth.
Efforts toward climate change adaptation supported by RSF measures were recognized as vital for addressing long-term challenges facing Mauritania.