- IMF staff and The Ivorian authorities have reached a staff-level agreement on both the third review of Côte d'Ivoire's economic reform program supported by the EFF and ECF arrangements, and the second review of their climate change reform program supported by the RSF arrangement. Discussions were also held in the context of the 2024 Article IV consultation.
- The authorities are advancing their reform agendas for safeguarding macroeconomic stability, deepening economic transformation towards meeting upper-middle income status, and building greater climate resilience through adaptation and mitigation reforms. In addition, to boost inclusive growth, they are advancing reforms in reducing informality and social inequality and tackling gender disparities.
- Completion of the reviews by the IMF Executive Board will lead to two disbursements for a total of about US$825 million of which US$498 million and US$327 million will respectively be on account of the EFF/ECF and RSF arrangements.
Abidjan, Côte d'Ivoire: An International Monetary Fund (IMF) staff team, led by Mr. Olaf Unteroberdoerster, held discussions with the Ivoirian authorities during Sept. 23 – Oct 9 on progress under both the authorities' economic and financial program supported by the Extended Fund Facility (EFF) and Extended Credit Facility (ECF), and the climate reform program supported by the Resilience and Sustainability Facility (RSF), as well as on the 2024 Article IV consultation. The EFF/ECF arrangement for an amount of SDR 2.6 billion (about US$3.5 billion) and the RSF arrangement for an amount of SDR 975.6 million (about US$1.3 billion) were approved by the IMF Executive Board respectively on May 24, 2023, and March 15, 2024.
"After constructive discussions with the Ivoirian authorities, I am pleased to announce that performance under the two programs has been satisfactory so far and that we reached staff-level agreement on all policies and reform measures in line with the programs' objectives. On the EFF/ECF arrangement, the authorities and staff agreed on additional revenue measures to meet 2024 fiscal targets, on the 2025 key policy measures including further revenue-based fiscal consolidation to reduce the fiscal deficit to 3 percent of GDP by 2025, and on structural measures to further strengthen domestic revenue mobilization, public financial management, and governance.
"On the RSF, understandings were reached on the timely implementation of reform measures falling due in the remainder of 2024, focusing on strengthening climate policies governance , reducing greenhouse gas emissions, and increasing green and sustainable financing for private and public companies. Discussions also focused on the coordination between stakeholders and national development plans, and the next steps following the Climate Financing Round table of July 2024 with a view to announcing specific financing and technical assistance pledged at the COP29 in mid-November 2024.
"The completion of the programs' reviews and disbursement of the next tranches for a total of about US$[825] million will be subject to approval of the IMF's Executive Board.
"Côte d'Ivoire's economy remains resilient, notwithstanding a slight moderation of growth in 2024 to 6.1 percent from 6.2 percent in 2023, in part reflecting weaker agricultural production and construction activity in first half of the year and a challenging regional and external environment. More favorable terms of trade, led by higher cocoa prices, is expected to narrow the current account deficit to less than 5 percent of GDP in 2024. The budget deficit is expected to fall to 4 percent of GDP in line with program targets. The medium-term outlook remains favorable. Growth is projected to average 6.7 percent over the period 2025-2029 supported by a recovery in cocoa production and higher hydrocarbon and mining production. Inflation is projected to average 4 percent in 2024 and continue to decline over the medium term within the BCEAO target range by end 2025.
"Thanks to continued strong domestic revenue mobilization (DRM) efforts under the government's comprehensive medium-term revenue mobilization strategy (MTRS) adopted in May 2024, the fiscal deficit is expected to further decline to 3 percent of GDP in 2025, converging to the WAEMU target. Prudent fiscal and debt management will also help safeguard a moderate risk of debt distress rating for public and external sector debt. The current account deficit is projected to decline further to average about 2 percent of GDP on the back of favorable terms of trade, a rebound in agricultural exports, and further increases in hydrocarbon exports. As a result, Côte d'Ivoire is expected to contribute significantly to the recovery of regional official reserves.
"In the 2024 Article IV consultation, discussions highlighted the links between informality, socio-economic and gender disparities, growth, and the tax system. Reducing informality across the economy could help deliver higher and more inclusive growth, support poverty reduction, boost human capital, sustain domestic revenue mobilization, and steadfast efforts to reach upper-middle income status."
The IMF team met with His Excellency Mr. Tiémoko Meyliet Koné, Vice President of the Republic; His Excellency Robert Beugré Mambé, Prime Minister; Mr. Kobenan Kouassi Adjoumani, Minister of State, Minister of Agriculture, Rural Development and Food Production; Mrs. Nialé Kaba, Minister of Economy, Planning and Development; Mr. Adama Coulibaly, Minister of Finance and Budget; Mr. Sangafowa Coulibaly, Minister of Mines, Petroleum and Energy; Mr. Souleymane Diarrassouba, Minister of Trade and Industry; Mr. Moussa Sanogo, Minister of Assets, the State Portfolio and Public Enterprises, and senior officials of the Government and the BCEAO, as well as representatives of the business community and donors.
