Floods in Mali. Photo credit: Al Jazeera.
The Executive Board of the International Monetary Fund (IMF) has approved a disbursement of US$129 million (SDR 93.3 million) to Mali under the Rapid Credit Facility (RCF) to support urgent relief and recovery efforts following devastating floods that struck the country in 2024.
The funding is intended to help the West African nation address pressing balance of payment needs caused by the natural disaster, including the financing of essential imports and critical infrastructure repairs.
In a statement issued, the IMF noted that the RCF disbursement is accompanied by an 11 month Staff Monitored Program (SMP) a non financial arrangement designed to support Mali in re establishing a record of reform implementation and economic stability.
“Mali is facing significant challenges from severe flooding in 2024, which caused extensive damage to infrastructure, agriculture, and livelihoods,” the IMF said, adding that the floods have intensified existing hardships caused by persistent insecurity and food shortages, putting further pressure on the country’s economic growth.
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Under the SMP, the Malian authorities have committed to a series of reforms focused on restoring fiscal governance and ensuring transparency and accountability in the use of funds.
“The authorities are committed to strengthening fiscal governance, improving public financial management, and protecting the most vulnerable through reinforced social safety nets,” the statement added.
The program also outlines structural reforms to improve economic resilience. These include enhancing domestic revenue mobilization by broadening the tax base and strengthening tax and customs administration.
Additionally, the government is expected to improve spending efficiency, particularly by addressing weaknesses in state-owned enterprises such as the national electricity provider, Energie du Mali (EDM).
“Reinforcing oversight of state enterprises, safeguarding public investment, and protecting vulnerable households are key pillars of the reform agenda,” the IMF emphasized.
