IMF injects millions into West Africa - CNBC Africa

IMF injects millions into West Africa

Western Africa

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Ouagadougou, Burkina-Faso. PHOTO: Open Travel

 The board of IMF concluded its third review of Liberia’s economic performance under its Extended Credit Facility (ECF) which resulted in an 11.4 million US dollars pay out to the country. In total, the IMF’s three-year arrangement with Liberia has totalled 45.7 million US dollars.

“Liberia’s growth performance remains strong. Real GDP [gross domestic product] growth is estimated at 8.7 per cent in 2013, reflecting increased iron-ore production. Output is projected to continue to expand at a healthy pace over the medium term as new mining projects come on stream and non-mining activities pick up, supported by the implementation of large public infrastructure projects,” said David Lipton, first deputy managing director and chair of the IMF.

(WATCH VIDEO: Liberia established itself as an investment destination)

However, he added that while Liberia’s government continues to make progress in their economic programme implementation, more efforts are needed to strengthen revenue collection, improve compliance by large tax-payers and state entities as well as keep public road projects within budget.   

On the other hand, the IMF has also approved a 3.9 million US dollars disbursement to Burkina Faso after it completed its first review of the landlocked country under the ECF arrangement.

 “Burkina Faso has a long track record of strong macroeconomic policy management, supported by IMF programs. Structural reforms to improve productivity and resilience in agriculture and increased spending for poverty reduction and food security have resulted in robust growth rates and progress toward the Millennium Development Goals,” explained Lipton.

(WATCH VIDEO: Burkina Faso economic recovery)

“Burkina Faso’s performance under the new ECF-supported program has been satisfactory, with all structural reforms implemented and most quantitative targets reached. Growth has remained robust and the fiscal deficit has been contained.”

He stated that the country also faces a number of challenges due to unfavourable terms of trade in the near term however its fiscal deficits should remain around three per cent of GDP due to spending adjustments and increased grants.

(READ MORE: Economic progress for Africa promising: IMF)

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