The International Monetary Fund said it has approved the second and final review of Mali’s Staff-Monitored Program, citing strong implementation despite a difficult security and economic backdrop, and pointing to a gradual recovery driven by improving stability and a rebound in gold output.
The IMF said management signed off on the review on March 18, marking the completion of the programme launched a year earlier to restore fiscal discipline, strengthen governance and protect vulnerable households.
“Mali’s performance under the programme has been solid,” the Fund said in a statement, noting that all quantitative and indicative targets were met, with some exceeded, alongside the delivery of key structural reforms.
The West African nation’s economy is emerging from a turbulent period in late 2025, when security tensions, fuel shortages and disruptions to mining activity weighed on growth.
Economic activity was hit particularly hard in the fourth quarter after attacks disrupted fuel supply chains and contributed to a decline in gold production — a critical pillar of Mali’s export earnings and public finances.
But the IMF said conditions have since begun to stabilise.
“As security tensions ease and gold production recovers, the economy is expected to strengthen further in 2026,” the statement said, adding that inflation remained contained at below three percent last year.
The Fund pointed to several factors supporting the outlook, including efforts to restore fuel distribution, the repayment of domestic arrears and progress towards resolving disputes in the mining sector.
Mali’s authorities also maintained transparency in the use of emergency funding disbursed in April 2025 under the IMF’s Rapid Credit Facility, publishing quarterly reports and procurement details, including information on beneficial ownership.
Under the programme, the government met targets covering priority social spending, tax revenue mobilisation, limits on domestic and external arrears, and the primary fiscal deficit.
Reform efforts included the digitalisation of tax receipts, improved coordination across tax administration systems and the preparation of an action plan to better account for public sector finances.
Looking ahead, the IMF said fiscal policy remains broadly appropriate but warned of the need for caution as global commodity prices — particularly gold and lithium — remain elevated.
Higher prices could generate additional revenues, but the Fund urged authorities to manage any windfalls prudently to avoid pro-cyclical spending that could undermine stability.
The 2026 budget targets a fiscal deficit within the three-percent-of-GDP ceiling set by the West African Economic and Monetary Union, supported by stronger domestic revenue mobilisation and tighter control of current expenditure.
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However, the IMF cautioned that Mali continues to face limited fiscal space due to high borrowing costs and significant spending pressures linked to development priorities and security needs.
It called for continued reforms to broaden the tax base, strengthen customs and tax administration, improve public financial management and address vulnerabilities in state-owned enterprises.
Preserving room for public investment while safeguarding social spending will also be critical, the Fund said.
Despite the challenges, the IMF praised the authorities’ commitment to reform, describing the programme as an important platform for policy dialogue and institutional strengthening.
“The programme has supported macroeconomic stability and laid the groundwork for more sustainable and inclusive growth,” it said.
The Fund added it would continue to engage closely with Mali as it advances its reform agenda and navigates a shifting economic landscape.
