Press Release No. 13/389

Press Release: Statement at the Conclusion of an IMF Mission to Mali

October 4, 2013

A mission from the International Monetary Fund (IMF), led by Christian Josz, visited Bamako from September 23 to October 4 to discuss the government’s request for support of its economic program under the IMF’s Extended Credit Facility (ECF).

The mission met with Oumar Tatam Ly, Prime Minister; Ms. Bouaré Fily Sissoko, Minister of Economy and Finance; Cheikna Seidy Diawara, Minister of Plan; Franc Aly Keita, Minister of Energy; Madani Touré, Deputy Minister for Budget; Moustapha Ben Barka, Deputy Minister for Investment Promotion; Konzo Traore, National Director, Central Bank of West African States (BCEAO); and representatives from the National Assembly, civil society, unions, the private sector, and Mali’s development partners.

At the conclusion of the mission, Mr. Josz issued the following statement:

“The year 2013 marked a turning point for Mali, with as most memorable events: the liberation of the North: a successful international donor conference; the arrival of a UN security force (MINUSMA) to facilitate the peace and reconciliation process; and transparent and credible presidential elections. These favorable security and political developments are having a positive economic impact: Gross Domestic Product (GDP), which contracted in 2012 by 0.4 percent, will grow by an estimated 5.1 percent in 2013. Thanks to a good harvest, the primary sector will turn in nearly 6 percent growth in 2013, while the secondary sector is stable with the decline in mining offset by growth elsewhere. Most importantly, the tertiary sector is recovering buoyantly with nearly 7 percent growth. Since the full effect of the aid boost from the donor conference is expected in 2014, growth next year might be better yet. Average inflation for 2013 will be down to almost zero.

“Mali’s performance under the program supported by the IMF’s Rapid Credit Facility (RCF) was good. Most targets derived from the 2013 Revised Budget were observed and the government continued to make progress with improving public financial management.

“The 2014 budget about to be sent to the National Assembly reflects the policy priorities of the Plan for the Sustainable Recovery of Mali (PRED), including the costs of reconciliation and development in the North. It is fully financed, using prudent revenue projections and counting on CFAF 540 billion (US$ 1.1 billion) in foreign aid—CFAF 180 billion (US$ 360 million) more than in 2011, before the crisis—to cover one third of spending. “This budget will be the basis for a new three-year program which the government has requested under the Extended Credit Facility. Key objectives of the structural reforms underpinning the program are to increase tax collection, strengthen public financial management, fight against corruption, and enhance the business climate, including with improved access to finance and a more reliable electricity supply.

“Discussions are well advanced and will continue next week in Washington during the IMF-World Bank Spring Meetings. The IMF Executive Board is tentatively scheduled to discuss the new program in December 2013.

“The mission would like to thank the authorities for the excellent organization, the provision of ample information, and the frank and fruitful discussions.”