The International Monetary Fund (IMF) Executive Board has completed the fourth reviews of Mauritania's Extended Credit Facility (ECF) and Extended Fund Facility (EFF), as well as the third review under the Resilience and Sustainability Facility (RSF). The completion of these reviews enables an immediate disbursement of SDR 36.16 million, approximately US$ 49.8 million, with SDR 6.44 million allocated under the ECF/EFF and SDR 29.72 million under the RSF. This brings total disbursements to SDR 125.9 million or about US$ 166.5 million.
Mauritania's economy has shown resilience despite global uncertainties and regional security risks, with economic activity slowing slightly to an estimated growth rate of 5.2 percent in 2024. A further deceleration to 4 percent is expected in 2025, but medium-term growth prospects remain favorable due to government infrastructure projects and private investment initiatives.
"Program performance under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements has been strong," stated Mr. Okamura, Deputy Managing Director and Chair of the IMF Executive Board. He highlighted that Mauritania's fiscal performance supports its medium-term goal of stabilizing debt despite a widened current account in 2024.
Mr. Okamura emphasized that "the authorities’ prudent fiscal stance... helps insulate public spending from commodity price volatility." He suggested that continuing this policy while reforming tax policies could create fiscal space for social spending and public investment.
With inflation easing, Mauritania's Central Bank has begun lowering interest rates to manage liquidity effectively while fostering domestic debt market development. Mr. Okamura noted that continued reforms would enhance exchange rate flexibility and strengthen banking sector resilience through close monitoring of financial trends.
He also stressed that "decisive implementation of structural reforms is essential" for inclusive growth driven by the private sector, highlighting priorities such as governance reforms, accountability enhancement, human capital development, financial inclusion promotion, and business climate improvement.
Effective execution of ECF/EFF arrangements alongside intensified RSF reform efforts will help Mauritania tackle medium- and long-term challenges while securing additional financing opportunities aimed at maintaining international reserves, strengthening macroeconomic frameworks, promoting sustainable growth, supporting climate agendas, developing human capital, and reducing poverty.