The International Monetary Fund (IMF) announced a $71 million disbursement to Niger on Wednesday, offering a financial lifeline to the West African nation struggling with political instability following a military coup in July 2023.
This disbursement comes after the IMF completed positive reviews of Niger’s economic programs under two separate facilities.
However, the IMF acknowledged that progress was hampered by the coup, leading to a buildup of unpaid debts.
Niger’s military regime, led by those who ousted President Mohamed Bazoum, has distanced itself from traditional Western allies and embraced closer ties with Russia.
This regional shift adds further tension to West Africa, where military leaders from Burkina Faso, Mali, and Niger recently formed their own alliance, separate from the established regional bloc.
“Niger’s economy has been undeniably impacted by the political upheaval and sanctions imposed after the coup,” stated IMF Deputy Managing Director Antoinette Sayeh.
Despite these challenges, Sayeh noted signs of improvement in Niger’s economic outlook due to factors like the start of oil exports, the lifting of sanctions, and increased agricultural production.
The IMF urged Niger’s leadership to focus on rebuilding financial reserves, improving debt management, and strengthening anti-corruption measures.
Notably, the IMF remains one of the few institutions continuing to provide aid to Niger, with projections indicating a potential economic rebound of 10.6% this year.
