Press Release No. 18/58

Statement by IMF Deputy Managing Director Mitsuhiro Furusawa at the Conclusion of a Visit to Mauritania

February 16, 2018

• The authorities’ new program supported by the IMF provides an opportunity to accelerate reforms and invest in education and infrastructure to improve the living standards of the population
• A prudent investment strategy is needed to ensure debt sustainability.
• Improving the business environment and economic governance is needed to spur private sector development

Mr. Mitsuhiro Furusawa, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today in Nouakchott at the end of his visit to the Islamic Republic of Mauritania, which followed the approval on December 6, 2017 by the IMF Executive Board of a three-year arrangement under the Extended Credit Facility (ECF) for an amount of about US$163.9 million:

“I would like thank Prime Minister Yahya Ould Hademine, Governor Abdel Aziz Ould Dahi, Minister of Economy and Finance El Moktar Ould Djay, as well as the other ministers and senior officials for their warm hospitality and for the productive meetings during my stay in Mauritania. I would also like to thank all the other authorities and civil society and private sector representatives for very constructive meetings.

“During our meetings, we discussed recent economic developments in Mauritania, which have been positive, and the favorable international environment. We agreed that the time is right—given the global recovery and sustained metal prices—to undertake broad-based structural reforms to accelerate inclusive growth, transform the Mauritanian economy, and create the jobs needed to durably lift living standards and generate a more prosperous future.

“Our discussions took place in the wake of last month’s regional conference which called on Arab governments to take decisive action to promote accountability, competition, and technology and trade, while pursuing fairer fiscal policies, ensuring strong social safety nets, and investing in people and education reforms. [1]

“I welcomed the launch of the IMF-supported economic program, and the authorities’ commitment to its implementation, following the considerable adjustment already achieved over the past two years. The Extended Credit Facility (ECF) approved by the IMF last December, for an amount of $163.9 million over three years, will support the inclusive growth strategy and encourage continued reform efforts.

“We discussed the authorities’ new growth strategy based on the three pillars of inclusive economic growth, human capital development, and improving governance.

“I emphasized the need to develop a prudent, disciplined investment strategy to increase infrastructure and create jobs while preserving public debt sustainability. Given the significant financing needs and already high debt, non-concessional loans must be avoided and debt management improved.

“I underscored the importance of strengthening the fight against corruption and improving the business environment to promote private sector development, investment, and job creation.

“Lastly, I very much appreciate the excellent, long-standing relations between Mauritania and the IMF, and look forward to our continued partnership through the ECF-supported economic program.”