Karachi, The International Monetary Fund (IMF) has concluded the first reviews under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements for the Islamic Republic of Mauritania. Alongside, the IMF Executive Board has approved a significant Resilience and Sustainability Facility (RSF) arrangement, marking a substantial stride in Mauritania’s efforts toward economic stabilization and climate resilience.
According to International Monetary Fund, the conclusion of these reviews under the EFF and ECF arrangements enables Mauritania to draw SDR 16.10 million (approximately US$21.52 million). Furthermore, the IMF Executive Board’s approval of a 31month RSF arrangement for Mauritania, totaling SDR 193.2 million (approximately US$258.21 million), highlights the IMF’s commitment to supporting the nation’s adaptation to climate change and transition to cleaner energy sources.
Mauritania’s economic growth is expected to slow down to 4.8 percent in 2023 from 6.4 percent in 2022, with inflation continuing its downward trend. The IMFsupported ECF/EFF arrangements aim to preserve macroeconomic stability, strengthen fiscal and monetary policy frameworks, and foster sustainable and inclusive growth. These arrangements include a focus on mediumterm budgeting, monetary and foreign exchange policy frameworks, and structural reforms for better governance, transparency, and private sector development.
The newly approved RSF arrangement will support Mauritania in building resilience to climate change and strengthening policy frameworks to synergize with other official financing and catalyze private financing. This includes incorporating climate issues into public financial management and public investment management, social protection against climate shocks, decarbonization, and strengthening the institutional framework for water management.
Mr. Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF Executive Board, commended Mauritania’s strong economic growth and declining inflation in 2023. He emphasized the importance of disciplined fiscal policy, increased domestic revenues, and rebalancing public expenditure. Okamura also highlighted the necessity of tight monetary policy, careful monitoring of financial sector developments, and continued improvements in the antimoney laundering and countering financing of terrorism (AML/CFT) framework.
He further stressed the crucial role of structural reforms in promoting higher, more inclusive, and diversified private sectorled growth. Okamura noted that the continued implementation of the ECF and EFF arrangements, along with the ambitious climaterelated reforms supported by the RSF, will address Mauritania’s medium and longterm challenges. These programs are expected to contribute to human capital development, private sector growth, poverty reduction, and adaptation and mitigation of climate change.