Business
IMF Approves New Extended Credit Facility Arrangement for Mali and US$9.2 Million Disbursement
BAMAKO – The Executive Board of the International Monetary Fund (IMF) today approved a new arrangement under the Extended Credit Facility (ECF) for Mali for an amount equivalent to SDR 30 million (about US$ 46.2 million or 32 percent of quota). The approval enables the immediate disbursement of an amount equivalent to SDR 6 million (about US$9.2 million).
The authorities’ program is designed to reduce balance-of-payments vulnerabilities and lay foundations for stronger, more inclusive growth. Reform efforts are focused on tax policy and revenue administration, public financial management and improving the business environment.
The new Fund-supported program builds on the success of the authorities’ policies supported by disbursements under the Rapid Credit Facility in 2013
Following the Executive Board’s discussion, Mr. Min Zhu, Deputy Managing Director and Acting Chair issued the following statement:
“Mali’s authorities have succeeded in maintaining macroeconomic stability in very difficult circumstances. The economy is recovering and the outlook is improving with the resumption of donor support and a gradual return of investor confidence. However, significant challenges remain. Against this background, a new Fund-supported arrangement under the Extended Credit Facility will help support the authorities’ economic program to sustain growth, maintain fiscal sustainability, and reduce poverty.
“Higher domestic revenue mobilization and increased efficiency of public spending will create fiscal space for needed development spending. Limited government recourse to domestic bank borrowing will safeguard credit to the private sector. Improved public financial management will ensure that donor funding is put to effective use, and improved internal expenditure controls will help prevent the accumulation of domestic arrears. More broadly, a prudent debt management centered on concessional borrowing will be needed in the period ahead.
“Far-reaching reforms will help improve the business environment, promote economic diversification, and boost Mali’s growth prospects. Priority areas include increasing financial development, combating corruption, streamlining tax procedures, improving infrastructure, and increasing labor productivity through improved education and health spending. Well communicated reforms in the production and pricing of energy are also important for fostering durable growth and reducing poverty.”
Annex
Recent economic developments
Mali is emerging from the most serious security and political crisis in its recent history.
The recent arrival of a UN security force (MINUSMA) is helping the government restore law and order in the north. Political normalization is well under way with the successful presidential and parliamentary elections. International financial support has been successfully mobilized: in May 2013, at the international donor conference in Brussels, donors pledged €3.25 billion ($4.4 billion) in financial assistance.
In the meantime, the economy is recovering and inflationary pressures have abated. After a 0.4 percent GDP decline in 2012, the improvement in the security situation and the resumption of donor assistance has helped revive business confidence. Activity is picking up in the service sectors hardest hit by the crisis (commerce, hotels, and restaurants). Favorable rainfall has boosted agricultural production. Average inflation declined from 5.3 percent in 2012 to negative 0.1 percent by October 2013 as food prices declined following the good harvest.
Prospects for the remainder of 2013 and for 2014 are generally favorable. The nascent recovery should gather strength as donor support builds up and credit to economy picks up. Real GDP is projected to increase by 5.1 percent in 2013 and 6.6 percent in 2014 supported by the rebound in agricultural output, the establishment of a third mobile phone operator, recovery in the service sector, and restart of construction projects. After 2014, growth is projected to settle in the 5–6 percent range. Average inflation is projected to remain close to zero in 2013 and reach 2 percent in 2014, below the 3 percent West African Economic and Monetary Union’s (WAEMU) ceiling.
The positive outlook is subject to several risks. Agricultural output is vulnerable to adverse weather conditions. Because of strong export concentration on gold (70 percent of the total) and cotton (15 percent of the total), export revenues depend to a large extent on volatile international gold and cotton prices. The security situation remains fragile despite recent improvements. Any setbacks in peace consolidation could weaken consumer, investor, and donor confidence and derail the incipient recovery. On the other hand, Mali is not significantly exposed to negative risks in the euro area because its exports are inelastic toward traditional trade partners’ growth. The banking sector is mostly financed by local deposits and is not directly exposed to the ongoing deleveraging of European banks.
Program Summary
The authorities’ programs aims at promoting policies that: (i) maintain macroeconomic stability, while allocating sufficient resources to poverty-reducing and other priority spending, including in the North; (ii) mobilize more government revenue;
(iii) strengthen public financial management; and (iv) improve the business environment, including by implementing anti-corruption measures.
Public spending will support national reconciliation, growth and poverty reduction. Budgetary allocations will be in line with the Growth and Poverty Reduction Strategy (G-PRSP) and the Plan for Sustainable Recovery (PRED). To that end, the authorities are committed to giving priority social spending—health, education and social development.
To increase tax revenue and lighten the administrative burden on the taxpayer, the Government will implement ambitious tax policy and administration reforms. Transparency will be used to build political support for a reduction of tax exemptions. In that context, the authorities intend to reform fuel pricing. Starting in 2013, the budget law has begun presenting estimates of the cost to the budget of the failure to adjust fuel prices to international oil price movements. To stem, and ultimately reverse, the erosion of tax revenue from petroleum products, the authorities will abandon the practice of setting the administrative value (used for tax calculation) below the market value. In order to improve the business climate, the government will take steps to address the most problematic factors for doing business. Investors consider access to financing, corruption, poor infrastructure (including electricity), tax regulation are key ingredients. The state electricity company will be reformed with the view of putting it on a sound financial footing.
The authorities have also stated their deep commitment to combating corruption. They will put in place concrete actions, one of which is a systematic follow up of all recommendations of varying control agencies, with regular reports on judicial or administrative actions taken. Another is the publication of judicial decisions.
Given the early stage of Mali’s recovery from the recent political and security crisis, reforms will be implemented progressively. The initial phase—through mid–2014—focuses on strengthening institutional capacity and developing strategies to address the most pressing issues. The following phases of the program will involve rolling out policy actions in these areas. These actions will be specified at the time of the first and subsequent reviews of the arrangement.
A call has gone to the political leadership across the Economic Community of West African States (ECOWAS) for the institution of a regional pricing benchmark for oil and gas to address rising concerns of uneven pricing.
Making the call on Wednesday in Abuja, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, noted that a standard pricing formula across the region would promote cross-border trade and attract investment into the downstream petroleum sector.
He expressed concern that Africa still relies on international markets to determine the prices of petroleum products produced within the continent despite its abundant resources.
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He used the media briefing to disclose that Nigeria, in partnership with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF), would organise the second West Africa Refined Fuel Conference from 11 to 12 August in Abuja.
The theme of the conference is: “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”
According to him, the event is aimed at developing a formidable regional marketplace where petroleum products can be traded competitively.
He said: “The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently and competitively.
“By strengthening infrastructure, harmonising regulations and improving market data, the region can enhance price discovery, facilitate cross-border trade and attract greater investment.”
Umar said progress had been recorded since the maiden edition of the conference in 2025, including the establishment of the West Africa Regulators Forum, the publication of West African reference prices, and the opening of S&P Global Commodity Insights’ regional office in Abuja.
He said the 2026 edition would focus on infrastructure financing, regional cooperation, market transparency, logistics development, and expanding refining capacity to improve energy security and reduce dependence on imported petroleum products.
He identified pipelines, storage facilities, marine terminals, ports, rail infrastructure, digital commodity exchanges, trading platforms, strategic petroleum reserves, LNG infrastructure, and logistics corridors as critical investments needed to create an integrated regional energy market.
Umar stressed that regulators have a key role to play in ensuring fair competition, investor confidence, consumer protection, and regional cooperation through harmonised standards and regulations.
He cited the Amsterdam-Rotterdam-Antwerp (ARA) trading hub in Europe as an example of a benchmark that considers supply, demand, transportation, and logistics costs.
He said: “The more we are able to produce, the more relevant it becomes to have our own reference pricing.”
In line with its corporate vision, Summit Bank has reinforced its commitment to opportunities and business expansion, entrepreneurship, and Nigeria’s growing digital economy through its support of the newly-commissioned Hajaj-Zoec Digital Market in Kano. Established as a landmark commercial initiative, the digital market will enhance ecommerce and economic opportunities for the African market. It is projected to create more than 100,000 jobs and generate an estimated N50bn annually in economic activity.
Summit Bank joined government officials, industry leaders, and initiative stakeholders on Saturday for the official commissioning of the market. Among the dignitaries were Barr. Abdulkarim Kabiru Maude, Kano State Commissioner of Justice; Yusuf Ata, Minister of State for Housing and Urban Development, represented by his Special Assistant (Technical), Kabir Aminu Dutse; Ahmed Idris, former Accountant General of the Federation; Dr. Mansur Muhtah, Chairman of Bank of Industry; and Alhaji Jamilu Abdussalam, CEO, Hajjaj Real Estate.
In his remarks, Dr. Sirajo Salisu, Summit Bank’s MD/CEO, reaffirmed the bank’s belief that access to ethical finance and a thriving commercial ecosystem remain key drivers of sustainable economic growth.
Developed under a public-private partnership (PPP) involving Kano State Government, Hajjaj ZOEC Real Estate, and ZOEC Construction, with Summit Bank as a proud sponsor, the digital market was inaugurated in Tudun Wada, Sabon Gari, Kano. As a transformative project, the bank’s support reflects a commitment to supporting businesses, deepening financial inclusion, and building a more connected digital economy. “We believe this market is not only an opportunity for Kano State or Northern Nigeria but for the entire African continent. Instead of travelling all the way to China to purchase goods in bulk, traders will be able to come to Kano and place their orders here,” Alhaji Abdussalam said, during his remarks.
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While speaking during the ceremony, Dr. Salisu said the significance of the digital market goes beyond its physical infrastructure. “Markets have always been at the centre of enterprise. What the Hajaj-Zoec Digital Market represents is the next stage of evolution that blends physical and digital commerce into a modern ecosystem where businesses can grow, technology can thrive, and entrepreneurs can unlock new opportunities,” he said.
Dr. Salisu said supporting enterprise is a core purpose of Summit Bank as a non-interest financial institution. “We believe banking should do more than provide financial services; it should help create the conditions that allow businesses to flourish,” adding that when entrepreneurs have access to the right ecosystem, markets become stronger, jobs are created, families earn better livelihoods, and communities prosper. He said this is the kind of impact that Summit Bank supports.
Hajaj-Zoec Digital Market is designed as the largest, purpose-built modern business hub for electronic dealers, tech entrepreneurs, wholesalers, retailers, and investors across Nigeria and West Africa. It will provide more than 1500 trading spaces, according to Abdussalam, with state-of-the-art amenities and digital infrastructure. This development strengthens Kano’s longstanding position as a frontline commercial center in Nigeria, and a hub other region can feed into.
For Summit Bank, the development aligns closely with its broader mission of supporting productive enterprise through ethical, transparent and customer-focused banking solutions. The Bank believes that sustainable economic development is built not only through access to finance but also through meaningful partnerships that drive business growth.
The commissioning also reflects Summit Bank’s growing engagement with Nigeria’s SME sector. Through initiatives such as its recent Market Storm activations across key commercial centers in Kano, Kaduna and Abuja, the Bank has continued to deepen relationships with traders, entrepreneurs and small business owners, taking financial education and banking solutions directly to the communities where commerce happens every day.
Summit Bank said it remains committed to supporting initiatives that advance entrepreneurship, expand financial inclusion and strengthen Nigeria’s digital economy, while helping businesses build lasting value for themselves, their customers and their communities.
As an innovative non-interest financial institution, the bank continues to champion a banking model rooted in ethics, transparency, partnership, shared prosperity and responsible growth, connecting finance with real economic activity and contributes meaningfully to national development.
The Dangote Cement Plc grew cement and clinker exports from Nigeria by 62.3% to 1.1 million tonnes in the first half of 2026, reinforcing the country’s position as a regional manufacturing and export hub while also reporting a 22.7% rise in profit after tax to ₦638.5 billion.
The company said it dispatched 20 clinker ships from Nigeria to Ghana, Cameroon and Côte d’Ivoire during the period, reflecting rising demand for its products across West Africa and the growing contribution of exports to its pan-African growth strategy.
The unaudited results for the six months ended 30 June 2026 also showed that Group revenue increased by 21.4% to ₦2.514 trillion, while Group EBITDA rose by 25.8% to ₦1.188 trillion, reflecting a margin of 47.3%. Earnings per share advanced by 24.3% to ₦38.22, as the company closed the period with a strong net cash position of ₦215.2 billion.
Overall Group volumes grew by 11.8% to 14.9 million tonnes, supported by resilient demand in key markets. Nigeria continued to anchor earnings, with EBITDA from the domestic market rising by 28.4% to ₦1.086 trillion and margins improving to 60.1%.
Operational efficiency remained a key focus, with the company reporting a strong reduction in Nigeria cash costs, supported by a more favourable energy mix. It also commissioned the Okpella mobile refuelling unit and added 300 compressed natural gas trucks in Tanzania as part of efforts to improve logistics efficiency and reduce operating costs.
Commenting on the results, Chief Executive Officer, Arvind Pathak, said the first-half performance reflected the strong momentum the company had built since the start of the year, supported by disciplined execution, higher sales volumes and sustained demand across key markets.
“Our performance in the first half of 2026 reflects the strong momentum we have continued to build since the start of the year. The business delivered another solid set of results, supported by higher sales volumes, disciplined execution, and sustained demand across our key markets,” Pathak said.
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He noted that revenue growth, stronger EBITDA and the ₦215.2 billion net cash balance underscored the resilience of Dangote Cement’s business model and its capacity to invest in future growth while maintaining disciplined capital allocation.
Pathak said the company’s export strategy continued to deliver encouraging results, adding that the growth in shipments to regional markets reflected rising demand for its products across West Africa.
On expansion, he said construction and commissioning activities at the company’s new 6Mta Itori plant were at an advanced stage, with completion expected before the end of the year. The plant is expected to strengthen Dangote Cement’s production footprint, expand export capacity and support its long-term ambition of reaching 80Mta in
installed production capacity by 2030.
“Looking ahead, market fundamentals remain favourable and our strategic investments continue to strengthen the business. Combined with our unwavering focus on operational excellence and cost discipline, these factors position us well to sustain our growth trajectory and continue creating lasting value for our shareholders,” he added.
The Dangote Cement is Africa’s leading cement producer, with 55.0Mta capacity across the continent. The company operates a fully integrated quarry-to-customer model and has 35.25Mta production capacity in Nigeria, including plants in Obajana, Ibese, Gboko and Okpella.
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