Following discussions with local authorities, Giorgia Albertin, IMF mission chief for Guinea, said mobilising tax revenues and gradually reducing electricity subsidies would create the fiscal space to increase public investment in infrastructure.

Albertin added that prudent borrowing would also help keep debt at sustainable levels.

“To this end, strengthening debt capacity management will be important.”

She also stressed the importance of achieving a basic fiscal surplus “which will contribute to keeping inflation at a moderate level”.

Guinean authorities and the IMF reached an agreement on a programme for economic policies and reforms at discussions this summer and at the 2017 annual meetings in Washington DC, which concluded last week.

The programme supports Guinea’s plan to foster higher and more broad-based growth, as well as reduce poverty.

These policies and reforms could be supported by an IMF loan, subject to management approval, which is expected to be submitted in November.

“The [Extended Credit Facility]-supported programme aims at strengthening the resilience of the Guinean economy, increasing public investments in infrastructure to foster growth while preserving medium-term debt sustainability, bolstering social safety nets to reduce poverty, and fostering the development in the private sector,” Albertin said.

The ECF provides financial assistance to countries with prolonged balance of payments problems.