Press Release No. 15/420

Press Release: IMF Staff Completes Mission to Mali

September 16, 2015

A mission from the International Monetary Fund (IMF), led by Christian Josz, IMF Mission Chief for Mali, visited Bamako during September 2-16, to hold discussions on the 2015 Article IV consultation with Mali and the fourth review of the government’s economic program supported under the IMF’s Extended Credit Facility (ECF) approved in December 2013 (See Press Release No: 13/524).

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

“After an unusually strong growth performance in 2014, when the real gross domestic product (GDP) grew by 7.2 percent, growth in 2015 is expected to be around 4.9 percent, in line with its historical trend. The harvest is turning out well, but manufacturing output weakened in 2015. Inflation in 2015 is expected to reach about 2.4 percent (0.9 in 2014), below the regional ceiling of 3 percent.

“All program targets for end-June were met thanks to the prudent management of public finances. In particular, revenue is well on its way to reach the annual objective, benefiting from new results-based management but also from buoyant revenue from petroleum product taxation as pump prices were largely unchanged while import prices dropped. Tax revenue is projected to increase by CFA 174 billion over 2014, raising the tax/GDP ratio from 14.9 to 16.4 percent. Expenditure execution at end–June stood at one third; in particular the government reined in current spending. But as of mid-September all remaining budgetary allocations have been released. In addition to loans from development partners, the government increased borrowing from the regional market by CFA 42 billion. The cash deficit for 2015 is now projected at 4.3 percent of GDP.

“The mission reached an agreement with the government which will permit proposing the conclusion of the fourth review of the ECF arrangement to the IMF Executive Board. The mission welcomes the draft budget for 2016, to be presented to the National Assembly shortly, which allows for substantial spending in support of the Peace Accord.

“The mission stressed the importance of policies that foster sustained and inclusive medium-term growth and job creation in Mali. These would include accelerating structural transformation, implementing fiscal decentralization at a measured pace, and improving the business environment, including by strengthening governance and reforming the structure of taxation of wages and salaries.

“The mission met with Modibo Keita, Prime Minister; Mamadou Igor Diarra, Minister of Economy and Finance; Abdine Koumare, President of the Finance Commission of the National Assembly; Konzo Traore, National Director, Central Bank of West African States (BCEAO); Amadou Ousmane Toure, Auditor General; staff from the ministries of Economy and Finance, Rural Development, Mining and Justice; and representatives from the National Assembly, civil society, unions, the state electricity company (EDM), the private sector, and Mali’s development partners.”

The IMF Executive Board is tentatively scheduled to consider the 2015 Article IV consultation and the 4^th ECF review in December 2015.