IMF releases $70 million to support Niger’s economic recovery

The International Monetary Fund has provided $70 million in financing to Niger, a strong signal of support for the country’s post-coup economic transformation through 2023. The assistance aims to strengthen macroeconomic stability and finance Niger’s ecological transition.

Coup curbs ambitions

The IMF’s assistance program, which will begin in 2021, aims to stimulate growth and ecological transformation in Niger. July 2023 Coup The economy is weak, leading to a buildup of debt and international sanctions. Growth in 2023 is expected to barely exceed 2%.

In recent months, there have been positive developments. In fact, the Economic Community of West African States (ECOWAS) lifted most of its sanctions in February. On the other hand, the World Bank has resumed financing certain projects in this Sahel country. Not to mention that the oil sector is performing well.

IMF Deputy Managing Director’s Optimism

Against this favorable backdrop, the IMF expects Niger’s economy to grow strongly by 2024, with inflation under control and growth likely to exceed 10%. As IMF Deputy Managing Director Antoinette Sayer noted, the signal is green.

« LargeNiger’s economy has been severely affected by political instability and sanctions since the military took over in July 2023. However, between the lifting of sanctions, oil exports and improved agricultural production, the short- to medium-term outlook has improved. », the IMF manager assured him.

Uranium export dependence

Niger is a landlocked country in West Africa that has been facing severe financial difficulties for many years. These difficulties are caused by a series of interrelated factors. Niger happens to be one of the poorest countries in the world, with a GDP per capita of $1,200 in 2022. More than 40% of the population lives below the national poverty line. This poverty limits government tax revenue and hinders economic growth.

In addition, Niger’s economy is heavily dependent on uranium exports, which account for about 50% of the country’s export revenue. Fluctuations in the price of raw materials on the international market have weakened public finances. Niger faces terrorist attacks and conflicts in some parts of the country. Insecurity has disrupted economic activities, including agriculture and mining.

Limited access to basic services

Security expenditures take up a large portion of the national budget. This limits the resources available for other important sectors. Niger It is one of the most dynamic countries in Africa, with an annual growth rate of 3.3%. Rapid population growth This has put a strain on the country’s already limited resources, particularly in education, health and infrastructure.

Niger is particularly vulnerable to the impacts of climate change, such as droughts and floods. These extreme events have a negative impact on agricultural production and food security, exacerbating the country’s economic difficulties. Niger’s financial difficulties have serious consequences for the people, including limited access to basic services.