IMF, Mali agree on $120M emergency financing

By James Tasamba

KIGALI, Rwanda (AA) – The International Monetary Fund (IMF) announced Tuesday that it has reached a staff-level agreement with Mali for about $120 million in emergency financing amid rising food insecurity in the West African country.

Once approved by the IMF’s Management and Executive Board, the funding would support the provision of food and targeted cash transfers to people facing acute food insecurity in central and northern regions of Mali, a statement said.

The money would also cover expenditures on education, shelter, non-food items and access to clean water, health and sanitation facilities for displaced residents.

The IMF noted that Mali’s economy has been hit by multiple external shocks recently, including Russia’s war in Ukraine, shipping disruptions in the Red Sea and a regional funding squeeze.

“These shocks contributed to a rise in import costs for essential goods like food, fertilizers and materials needed to support displaced populations,” it said.

Mali’s economy grew by 4.4% in 2023. The IMF said real GDP growth is expected to slow to 3.8% in 2024, owing to severe electricity outages, lower projected gold production, uncertainty surrounding election delay and the country’s exit from the Economic Community of West African States (ECOWAS).