IMF and Mali Agree On $120 Million Rapid Credit Facility.

Mali recently reached a staff-level agreement with the International Monetary Fund (IMF) to obtain emergency financing through the Exogenous Shock Window of the Rapid Credit Facility (RCF).

Why is this important: The agreement will provide Mali with $120 million (approximately 0.6% of GDP) to support its urgent balance-of-payments (BOP) needs. The new credit facility is essential because Mali is facing some economic challenges, such as food insecurity, higher living costs, and increased import costs due to the Russia/Ukraine war.

The bottom line: Despite these challenges, Mali has shown remarkable resilience. Its inflation rate reached an all-time high of 13% in August of 20232 and has been steadily decreasing in recent months. This resilience not only underscores Mali's ability to weather economic storms but also positions it as one of the promising African economies with the potential to overcome its economic challenges and foster growth.