IMF poised to release $70 million in funding for Niger

The International Monetary Fund said
Saturday it had reached a preliminary agreement with Niger on periodic
reviews of several aid programs underway in the Sahel country, opening the
door to more than $70 million in funding.

The agreement will require approval by the Fund’s board of directors, which
is set to meet in July, the IMF said in a statement.

This was the fourth and fifth review of the aid program to Niger, allowing
for the disbursement of $26.1 million “to cover external financing needs.”

The agreement also covers the first review of the Resilience and
Sustainability Facility, the IMF’s long-term financing tool to address risks
and challenges linked to climate change, allowing the disbursement of another
$45.3 million.

The IMF noted Niger’s “ongoing efforts to simplify the tax system, promote
the digitalization of revenue administration, and adopt an oil revenue
management strategy aiming at insulating the budget from fluctuations in
international oil prices.”

The Fund is one of the few institutions continuing to provide aid to Niger,
whose elected president Mohamed Bazoum was overthrown in 2023 in a military
coup.

The United States, EU, France and Germany have suspended a number of aid
programs to Niger, one of the world’s poorest countries.

The World Bank announced in mid-May the resumption of several projects in the
country.

Sanctions and difficulties in the agricultural sector led to a slowdown in
growth in 2023, to 2.4 percent, a particularly low level for a country with
an average annual population growth of 3.7 percent.

But the Nigerien economy was expected to grow 10.6 percent this year, thanks
to the lifting of sanctions and strength in the oil sector. (BSS/AFP)