IMF Board Completes Mauritania Facility Reviews

Washington, DC: The IMF Executive Board completed today the Fifth Reviews under the 42‑month blended Extended Credit Facility arrangement (ECF) and the Extended Fund Facility arrangement (EFF), and the Fourth Review under the Resilience and Sustainability Facility arrangement (RSF). The ECF/EFF were approved by the IMF Executive Board in January 2023 (see PR 23/15 ) and the RSF was approved in December 2023 (see PR23/465 ). The completion of the reviews allows for the immediate disbursement of SDR 65.88 million (about 91 US$ million) of which SDR 6.44 million (about US$ 9 million) under the ECF/EFF and SDR 59.44 million (about US$ 82 million) under the RSF, bringing the cumulative disbursements to SDR 191.8 million (about US$ 258 million).

Following a strong economic growth performance of 6.3 percent in 2024, economic activity in 2025 is expected to have decelerated to 4.2 percent, due to a contraction in the extractive sector, notwithstanding a continued solid performance of the non-extractive activities. Amid heightened global uncertainties and growing regional security risks, the medium-term outlook remains favorable, supported by the government infrastructure drive and private investment. The reforms in the areas of governance, monetary and financial sector, investment policies, and vocational training are expected to support efforts to diversify the economy away from the extractive industries.

Program performance has remained on track, with all end-June 2025 quantitative targets met, and most of the structural benchmarks under the ECF/EFF implemented. Reforms under the RSF are also progressing, albeit at slower pace.

At the conclusion of the Executive Board's discussion, Mr. Okamura, Deputy Managing Director and Chair stated:

"Despite an expected slowdown in growth in 2025, Mauritania's economy continued to show resilience, supported by prudent and well-calibrated policies. Prudent fiscal management, including the implementation and planned institutionalization of a fiscal anchor, continues to support the authorities' medium-term goal of stabilizing debt. The current account is expected to have narrowed in 2025 with international reserves that remained at comfortable levels.

"Program performance under the current Extended Credit Facility and Extended Fund Facility arrangements is on track with all end-June 2025 targets and end-September 2025 indicative targets for quantitative performance criteria met, and all but two of nine structural benchmarks through end-December 2025 met, with a third implemented with delay. Program implementation under the Resilience and Sustainability Facility is also broadly on track with four of the five RMs assessed at this review completed.

"The authorities' prudent fiscal management, underpinned by the adoption of a fiscal anchor, helps insulate public spending from commodity price volatility and contributes to stabilizing debt. Continuing with such a prudent fiscal policy, complemented by reforms in tax policy and administration, would also raise the fiscal space for public investments necessary to meet pressing development needs while safeguarding the credibility of the medium-term budget framework.

"The BCM's policy framework modernization, including improved liquidity management and monetary policy instruments, helps anchor inflation expectations while fostering the development of domestic debt markets. Continued reforms to deepen the foreign exchange market would support greater exchange rate flexibility and enhance resilience to external shocks. Strengthening the resilience of the banking sector will require consistent enforcement of prudential regulations.

"Decisive implementation of structural reforms, including governance reforms, is key to supporting higher, more inclusive and diversified, private-sector-led growth. Priorities include strengthening accountability and transparency, developing human capital, promoting financial sector development and inclusion, and enhancing the business climate.

"Sustained and effective implementation of the ECF/EFF—alongside a stepped-up pace of climate adaptation and mitigation reforms supported by the RSF—will be instrumental in addressing Mauritania's medium- and long-term challenges and in mobilizing additional financing. These programs help strengthen macroeconomic Mauritania's policy frameworks and foster sustainable growth. They also support Mauritania's climate agenda and poverty reduction efforts."

Mauritania: Selected Economic Indicators, 2021–26