IMF Staff Completes Program Review and Article IV Mission to Niger

IMF News, May 29, 2019

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An IMF staff team led by Christoph A. Klingen visited Niamey from May 15 to May 28, 2019 to conduct the fourth review of the program supported by the Extended Credit Facility (ECF) arrangement and the 2019 Article IV Consultation.
Niger’s program was approved by the IMF Board on January 23, 2017 (Press Release no 17/18).
IMF Mission reached a staff level agreement with the authorities on economic and financial policies that could support the completion of the fourth program review.
Consideration by the Executive Board of the IMF is tentatively scheduled for late June 2019.
Quote: “On the broader structural reform agenda, the IMF mission welcomes the authorities’ efforts to improve the business environment; honing these to address the specific needs of the local formal private sector is the next step. – IMF’s Klingen.”

“Macroeconomic stability remains firmly in place.”
Estimated growth in the preceding year: 6.5 percent.
Growth outlook:
- Growth next year should remain strong, driven by robust construction and services activities, as well as a rebound in oil production.
- It is expected to average just above 7 percent over the next five years, buttressed by new projects, notably a pipeline for crude oil exports, and greater efficiency in agriculture supported by the government’s food security plan, the 3N Initiative.
Inflation expectation: expected to remain safely below the West African Economic and Monetary Union (WAEMU) ceiling of 3 percent in 2019.
Note on benefits: “These projects’ local content and fiscal contributions are the key benefits to the domestic economy.”

“The fiscal situation remains broadly satisfactory.”
Overall deficit: improved to 4.1 percent in 2018 from 5.7 percent of GDP in 2017.
Authorities’ objective: determined to reach the WAEMU convergence criterion of a fiscal balance of 3 percent of GDP in 2020.
Domestic arrears: clearance fell behind schedule due to temporary strain in the regional financial markets and pressing security expenditures.
- Authorities will undertake a strong effort in the coming weeks to pay them down and strengthen cash management to avoid their reemergence.
Reform emphasis: focused on revenue mobilization through widening the tax base and higher quality in public spending.

IMF welcomes authorities’ efforts to improve the business environment and recommends honing reforms to address the specific needs of the local formal private sector.
Policy priorities noted:
- Strengthen incentives to expand the formal private sector.
- Ensure affordable credit.
- Distribute fiscal pressures more equally.
- Jobs training and higher quality education to enable Niger to benefit from jobs generated by foreign investments.
Social measures:
- Recent measures to increase school attendance, especially for girls, will help achieve national objectives for gender equality.
Governance reforms:
- Ongoing reforms of the civil service and public enterprises and establishments to make government more efficient and transparent.
- Mission welcomes Niger’s efforts on good governance and the fight against corruption.

The team met with:
- President of the Republic Issoufou Mahamadou
- Prime Minister Brigi Rafini
- Minister of Finance, Mamadou Diop
- Minister in charge of Planning, Aïchatou Boulama Kané
- Minister in charge of the Budget, Ahmat Jidoud other minister
- National Director of the Central Bank of African States (BCEAO)
- Senior officials in the administration, representatives of the private sector, civil society, and the donor community
Next procedural step: staff will prepare a report, subject to management approval, to be presented to the IMF's Executive Board for discussion and decision.

IMF Press Release No. 19/184 — May 29, 2019.