Mali’s government has announced plans to significantly reduce its internal debt burden.
Economy Minister Alousseni Sanou revealed on state television that the country will repay 200 billion CFA francs (approximately $332 million) of its domestic debt by the end of the year.
The move comes as Mali faces mounting economic challenges, exacerbated by political instability and ongoing conflicts with militants.
The nation has been grappling with the repercussions of two military coups and subsequent regional sanctions, which have strained its economy.
Minister Sanou acknowledged the “increasing difficulties” Mali is confronting, emphasizing the need to address the country’s debt situation.
While he did not disclose the total amount of Mali’s internal debt, the announcement highlights the government’s efforts to alleviate financial pressures.
The International Monetary Fund (IMF) had previously raised concerns about Mali’s debt trajectory, warning that the “direction and pace of debt accumulation” were “worrisome.”
The Fund reported that the country’s domestic debt had surged from 8.1% of gross domestic product in 2015 to 22.1% in 2021.
The government’s decision to repay a significant portion of its internal debt is a step towards improving Mali’s economic stability and enhancing its ability to attract foreign investment.
However, the country will continue to face significant challenges as it navigates the complexities of its political and security landscape.