IMF Approves $71 Million Aid to Niger

Emmanuel EjioforJuly 18, 20241 Mins read320

Niger's head of state, Abdourahamane Tchiani.

The International Monetary Fund (IMF) Executive Board has approved the disbursement of $71 million to Niger on Wednesday. This payment is part of the IMF’s ongoing aid programs with the junta-led country.

This approval followed an agreement last month between the Nigerien government and IMF regarding periodic reviews of the existing aid programs.

The payment includes $26.1 million from the fourth and fifth reviews of the current aid programme and $45.3 million from the Resilience and Sustainability Fund – IMF’s long-term financing tool to address climate change risks and challenges.

“The Nigerien economy has been severely affected by political instability and sanctions following the military’s takeover in July 2023,” said IMF’s Deputy Managing Director, Antoinette Sayeh, in a press release. “However, the short- and medium-term outlook has improved with the lifting of sanctions, oil exports and enhanced agricultural production.

“The authorities must rebuild budgetary margins, improve debt management, and strengthen social and governance frameworks,” she added.

IMF has continued to provide aid to Niger despite the 2023 coup, while France, Germany, the European Union, and the United States have suspended their aid programs since the coup. In May, the World Bank said it would resume financing several projects in Niger after initially suspending its support.

Sanctions and agricultural challenges slowed Niger’s economic growth to 2.4% in 2023, a low rate for a country with a 3.7% annual population growth. However, with sanctions lifted and strong performance in the oil sector, the economy is expected to grow by 10.6% this year, IMF said.

Nevertheless, the IMF warned that if the security conditions in the country worsen, this could impact the economy’s growth.

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