Mauritania: IMF Reaches Staff-Level Agreement On Fourth Review Of Extended Fund And…
Washington, DC: An International Monetary Fund (IMF) team, led by Felix Fischer, visited Nouakchott and Nouadhibou during April 28– May 9, 2025 to hold discussions on the Fourth Review of Mauritania’s economic program under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF), and the Third Review of the RSF arrangement. At the end of the mission, Mr. Fischer issued the following statement:
“The Mauritanian authorities and IMF staff have reached a staff level agreement on policies to complete the Fourth Review of Mauritania’s 42-month blended EFF/ECF-supported program and the Third review of the RSF. Subject to approval by the IMF Executive Board, Mauritania will receive a disbursement of SDR 6.4 million (about $ 8.6 million) under the ECF and EFF arrangements and SDR 14.86 million (about $ 20.1 million) under the RSF arrangement, bringing the total disbursement under the EFF/ECF and the RST to SDR 111 million (about $ 148.4 million).
“Economic activity was stronger than expected, with a growth rate of 5.2 percent in 2024, higher than the initial projection of 4.6 percent. Economic growth rate in 2025 is projected to decelerate to 4.0 percent, due to a contraction in the extractive sector. The medium-term outlook remains broadly positive assuming further reforms will be implemented to diversify the economy and lift non-extractive economic growth.
“Performance under the program is broadly on track— all quantitative targets for end-December 2024 have been met. The fiscal adjustment was in line with the program targets due to higher tax revenue and spending restraint. The authorities’ commitment to a rule-based fiscal policy and exchange rate flexibility serves the country well in the context of heightened global uncertainty, and will help preserve macroeconomic stability and enhance resilience to shocks.
“The authorities committed to maintain the non-extractive primary deficit at MRU 15.4 billion (3.4 percent of GDP) in 2025. Improved domestic revenue mobilization and better spending efficiency will help create fiscal space to meet Mauritania’s significant development needs while preserving the medium-term budget credibility.
“The IMF team welcomed the recent progress in structural reforms, including enacting the central bank and banking laws and the new investment code. They encouraged authorities to move swiftly to finalize the implementing decrees of the laws on SOEs, the investment code, and the free zone of Nouadhibou. Steadfast execution of the homegrown Governance Action Plan, including the laws on the declaration of assets and interests and the anti-corruption authority, in line with the best practices, will foster transparency and accountability and enhance the business climate.
“The authorities continue to advance their climate agenda to strengthen Mauritania’s resilience to climate change. The parliament introduced the climate contribution and adopted regulations allowing access of private energy producers to power transmission infrastructure. The mission discussed next steps towards introducing the automatic fuel price mechanism and stressed the importance of scaling up well-targeted compensatory measures to mitigate the effects on the vulnerable households.
“The team met with His Excellency President Mohamed Ould Ghazouani, President of the National Assembly Mohamed Ould Megett, Prime Minister Mokhtar Ould Diay, Governor of the Central Bank Mohamed Lamine Ould Dhehby, Minister of Economy and Finance Sid’Ahmed Bouh, Minister of Justice Mohamed Boya, Minister of Energy and Oil Mohamed Ould Khaled, Minister of Mining and Industry Thiam Tidjani, Minister of Hydraulics and Sanitation Amal Mint Mouloud, Minister Delegate in charge of the Budget Codioro Moussa N’guénore, other senior government officials, the civil society, the banking association and other representatives of the private sector, and the donor community.
“The IMF team would like to thank the Mauritanian authorities and various stakeholders for the excellent hospitality and cooperation and candid discussions during the mission.”
https://www.imf.org/en/News/Articles/2025/05/09/pr-25138-mauritania-imf-reaches-agreement-4th-rev-of-ef-and-ecf-and-3rd-rev-of-rsf