JOHANNESBURG (Reuters) – The International Monetary Fund (IMF) said on Tuesday it had reached a staff-level agreement with Mali for about $120 million in emergency financing, as the West African country is struggling with rising food insecurity.
Import costs for essential goods such as food and fertilizers in Mali have risen due to a regional funding squeeze and recent geopolitical shocks, the IMF said in a statement.
Upon approval by IMF Management and Executive Board, Mali would receive a disbursement that is expected to cover food provision costs, provide access to clean water, sanitation facilities and shelter for displaced people.
The Fund also said that the country’s near-term outlook was uncertain due to severe electricity outages, security concerns, lower projected gold production and an election delay.
Mali’s economy grew by 4.4% last year, the IMF said, adding that it expects real GDP growth to slow to 3.8% in 2024.
In conclusion, the IMF Mali deal represents a significant milestone in Mali’s efforts to address its economic challenges and build a more resilient and prosperous future. With the support of the IMF and the international community, Mali can overcome immediate financial pressures and lay the foundation for sustainable growth and development. As Mali continues on its path towards recovery, the IMF stands ready to provide further assistance and support as needed.
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