The Malian authorities and IMF staff reached a staff-level agreement on a new economic and financial program supported by the Extended Credit Facility (ECF). The new program is aimed at fostering strong and inclusive growth and poverty reduction through investment in infrastructure and social sectors, and stimulating jobs creation, notably for the youth. Key objectives of the program include strengthening fiscal discipline and tax revenue mobilization through further revenue administration reforms. IMF Staff encourages reforms aimed at strengthening the governance and efficiency of the public sector and improving the business climate.

A team from the International Monetary Fund (IMF), led by Boriana Yontcheva, visited Bamako during June 12-25, 2019 to hold discussions on a new economic and financial program supported by the IMF under the ECF.

At the end of the discussions, Mrs. Yontcheva issued the following statement:

“The Malian authorities and IMF staff have reached a staff-level agreement on a new economic and financial program supported by the IMF under the ECF, for an amount of about US$ 200 million, subject to approval by IMF management and Executive Board. Consideration by the IMF’s Executive Board is tentatively scheduled for end-August 2019.”

“The new program will be anchored on Mali’s new development strategy (CREDD 2019-23), aimed at fostering strong and inclusive growth and poverty reduction through investment in infrastructure and social sectors, and stimulating jobs creation, notably for the youth.”

“The fiscal deficit is expected to meet the West African Economic and Monetary Union (WAEMU)’s convergence criteria of 3 percent of GDP in 2019. To this end, key objectives of the program include strengthening fiscal discipline and tax revenue mobilization through further revenue administration reforms. The authorities have started implementing corrective measures to address the sharp decline in tax revenue collection experienced in 2018. The efforts to modernize revenue administration should be accompanied by measures to improve mining sector, petroleum products and property taxation, streamline tax exemptions (including those granted to the mining sector), and accelerate the digitalization of tax payments.”

“The implementation of these policies will allow Mali to create fiscal space for restoring the State presence in Central and Northern Mali and investing in social sectors and infrastructure.”

"The authorities are also committed to reforming the energy sector, to bring the state-owned electricity company (EDM.SA) to cost-recovery over the medium term, while ensuring a better supply of electricity to the population.”

“More broadly, this new program will help the Government to strengthen the foundations for a strong and inclusive growth, which will enable further poverty reduction. Finally, the mission encourages reforms aimed at strengthening the governance and efficiency of the public sector and improving the business climate, particularly through further improvement in public finance management and a better follow-up of governance issues flagged by the control and verification bodies (including the General Control of Services and the Office of the Auditor General), as well as pursuing the revision of the Law against Corruption and Illicit Enrichment to widen the scope of officials subject to the asset declaration obligation.

“The team would like to thank the authorities, various stakeholders, and technical staff for their support and constructive discussions.”

The team met with the Prime Minister, Head of Government, Minister of Economy and Finance, Dr. Boubou Cissé, the Deputy Minister in Charge of Budget, Mrs. Aoua Sylla Barry, and other members of the Government; the National Director of the Central Bank of West African States, Mr. Konzo Traoré, senior officials, representatives of civil society and the private sector, and development partners.