President of Republic Receives IMF Delegation
On 10 March, in Nouakchott, His Excellency Mr. Mohamed Ould Cheikh El Ghazouani, the President of the Republic, received a delegation from the International Monetary Fund (IMF), led by its Deputy Managing Director, Mr. KENJI OKAMURA.
At the end of the meeting, Mr. OKAMURA made a statement to the Mauritanian news agency in which he expressed his thanks to the President of the Republic, the Prime Minister, the Ministers of Finance and Economic Affairs and the Governor of the
Central Bank of Mauritania for the generous hospitality and fruitful discussions he received during his stay in Mauritania.
He added: “As part of our discussions, we reviewed recent economic developments in Mauritania and the risks it is facing.
I commended the authorities for their resolute response to the COVID-19 pandemic, which, combined with substantial international financial support, has put Mauritania on the path to recovery”.
However, Mr. OKAMURA pointed out that a confluence of shocks, notably the war in Ukraine and regional tensions, has reduced the room for maneuver of the public authorities, while Mauritania still faces considerable needs in terms of
human development and infrastructure.
Regarding the rise in international commodity prices, the IMF official clarified that it has led to inflationary pressures and caused food insecurity.
Speaking of fluctuations in commodity prices, the head of the delegation said that they had also deteriorated Mauritania’s external position.
“According to preliminary data, the current account deficit doubled to 16.4% of GDP in 2022, driven by international food and energy price pressures and lower iron ore prices, while international reserves declined slightly in 2022. An acceleration in growth is expected, to 5.3% in 2022, mainly driven by the recovery of the extractive sector”.
He welcomed the launch of Mauritania’s economic reform program, supported by agreements with the IMF of around 87 million dollars. This program aims to preserve macroeconomic stability, strengthen fiscal and monetary policy frameworks, consolidate the foundations for sustainable and inclusive growth, and reduce poverty.
On investment, Mr. OKAMURA said he had discussed with the Mauritanian authorities the need to preserve investment in infrastructure and social spending to achieve higher and greener growth.
“This strategy must respect budgetary discipline to contain the debt. Maintaining a tight monetary policy, in close coordination with budget execution, will help reduce inflation.”
He said he highlighted the importance of resolute implementation of structural reforms, including improving governance, transparency, business environment, and financial inclusion, as well as mitigating challenges relatingto climate change.
“In conclusion, I commend the excellent and long-lasting relations between Mauritania and the IMF, and I look forward to the continuation of our partnership within the framework of the economic program supported by the Extended Credit Mechanism and the Extended Credit Facility.
“, as he put it.