(Bloomberg) -- Mali reached a staff level agreement with the International Monetary Fund for $120 million of emergency financing.

The funding via the lender’s Rapid Credit Facility will help offset multiple shocks to Mali’s economy, including the impact of Russia’s war in Ukraine, the Red Sea shipping disruptions and a regional financing squeeze that have led to a rise in import costs for essential goods like food and fertilizers, the IMF said in a statement on Tuesday. The decision is subject to IMF board approval.

Economic growth in the West African is expected to slow to 3.8% in 2024, before rebounding to 4.4% in 2025, the IMF said.

Downside risks to the outlook include continued “power outages, security concerns, growing financial stability risks amid escalating government financing needs and volatile international commodity prices,” it said. 

©2024 Bloomberg L.P.