Ouagadougou: Niger, which has started to sell its oil itself, will experience a significant increase in its gross domestic product, to 10.6% in 2024, according to an announcement from the International Monetary Fund in mission to Niamey.
In a statement on Saturday June 1, 2024, during a meeting chaired by the Prime Minister of Niger, Ali Mahaman Lamine Zeine, the head of the Fund’s mission to the Niamey authorities, Antonio David, announced double-digit growth of Niger’s GDP which stood at 4.2% in 2023.
‘Economic growth slowed down (…) in 2023, mainly due to the effects of sanctions, as well as a relatively unfavorable agricultural season’, observes Mr. David Antonio.
According to him, ‘the economic outlook is favorable in the short and medium term. Real GDP growth is projected at 10.6 percent in 2024 due to the start of oil exports and the resulting knock-on effects on the economy, the lifting of sanctions, as well as the expected increase in agricultural production”. ‘
The latter two factors should al
so contribute to containing inflationary pressures in 2024,’ he adds, while warning that ‘nevertheless, this positive outlook is subject to risks, particularly those related to the security situation and vulnerabilities to climatic shocks
. percent of GDP, was slightly higher than the program target partly due to the fall in the level of revenue,’ regrets the head of the mission of the Breton institution Wood, while remaining confident that ‘the trajectory of the deficit will be controlled to enable compliance with the authorities’ commitment to achieving the WAEMU regional convergence criterion of 3 percent of GDP by 2025.”
‘Due to the sanctions imposed after the events of July 26, 2023, Niger has accumulated external and internal debt service arrears,’ explains the expert who also mentions that ‘the Nigerien authorities are continuing laudable efforts to fully pay off these payment arrears.
Financing of more than 43 billion CFA francs has been announced.
This visit by the IMF team, which began on May 20
, is sanctioned by an agreement concluded between the Nigerien authorities and the IMF team, at the service level on the fourth and fifth reviews of Niger’s economic program supported by the extended credit facility and on the first review of the program supported by the Resilience and Sustainability Facility, according to information provided by Mr. Antonio.
The figures he put forward concerning this financing are around 43 billion and more than 100 million CFA francs.
‘The staff level agreement will be subject to approval by the IMF Management and Board of Directors. The Council meeting is scheduled for July 2024.
The completion of the FEC reviews would allow the disbursement of 19.7 million SDRs (approximately 26.1 million US dollars [approximately 15.7 billion CFA francs, editor’s note], or 15 percent of Niger’s quota) for cover external financing needs. In turn, the completion of the first review of the FRD would allow the disbursement of 34.2 million SDRs (approximately 45.3 million US dollars [more
than 27 billion CFA francs, editor’s note], or 26 percent of the Niger quota).
‘The program supported by the Extended Credit Facility aims to strengthen macroeconomic stability and lay the foundations for resilient, inclusive and private sector-led growth,’ he explains before adding that ‘most of the quantitative objectives at the end of June, the end of December 2023 and the end of March 2024 were achieved, despite the difficult context that Niger faced last year.
‘However, a delay was recorded in the implementation of certain structural benchmarks, in particular that relating to the adoption of the oil resources management strategy,’ underlines Mr. Antonio.
The head of this IMF mission informs that his delegation meets more officials from Niger in addition to Prime Minister Ali Mahaman Lamine Zeine.
This is particularly the case of Mr. Bakary Yaou Sangaré, Minister of Foreign Affairs, Dr Soumana Boubacar, Minister Director of Cabinet of the President of the National Council for the Protection of the Fat
herland (CNSP), the Minister Delegate to the Prime Minister, responsible for Finance, Mr. Moumouni Boubacar Saidou, the national director of the BCEAO, Mr. Maman Laouali Abdou Rafa, as well as representatives of the private sector and development partners.
Source: Burkina Information Agency