Press Release No. 19/361

IMF Staff Team Completes Mission to Côte d’Ivoire

October 1, 2019

• The authorities and the IMF team have reached a staff-level agreement on the sixth review of the ECF and EFF arrangements and one-year program extension, subject to approval by IMF management and the Executive Board.
• Despite a deteriorating external environment, the Ivoirian economy has exhibited resilience and strong economic performance is projected to continue in 2019 and 2020.
• The fiscal budget deficit is expected to converge the WAEMU regional deficit norm of 3.0 percent of GDP in 2019 and 2020.

An International Monetary Fund (IMF) mission led by Céline Allard visited Abidjan from September 18 to October 1, 2019 to hold discussions on the sixth review of the three-year economic and financial program supported by the IMF through arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).

At the conclusion of the mission, Ms. Allard issued the following statement:

“The discussions on the sixth review under ECF and EFF arrangements have allowed the authorities and the IMF team to reach a staff level agreement, subject to approval by IMF management and the Executive Board. Consideration by the IMF’s Executive Board is expected in December 2019.

“Despite a deteriorating external environment, the Ivoirian economy has exhibited resilience and strong economic performance is projected to continue in 2019 and 2020. Inflation should remain subdued well below the 3 percent regional threshold of the Western Africa Economic and Monetary Union (WAEMU).

“Performance under the IMF-supported program was satisfactory in the first half of 2019. All performance criteria and all indicative targets for end-June 2019 were met. All but one of the structural benchmarks on public finance management, public enterprise monitoring, and tax policy and administration were also met. The fiscal budget deficit is expected to converge the WAEMU regional deficit norm of 3.0 percent of GDP in 2019 thereby meeting a key program objective. Revenue should increase and expenditure will remain contained.

“The IMF mission and authorities reached a staff level agreement, subject to IMF Executive Board approval, on a one-year program extension and fiscal policy measures for the 2020 budget to secure key program objectives. These measures should enable the projected fiscal deficit to remain at 3.0 percent of GDP in 2020 and thus continue complying with the regional norm. IMF staff and the authorities also agreed on policies to continue to secure debt sustainability and space to finance the National Development Program (2016-2020).

“IMF staff and the authorities also concurred on continuing domestic revenue mobilization efforts, which are essential to creating fiscal space for ambitious development policies and strengthen debt payment capacity.

“The mission noted improvements in the restructuring and the oversight of public enterprises, and in custom administration. Staff also commended the Ivoirian authorities for the measures taken to strengthen the electricity sector which should underpin an ambitious development strategy.

“Staff noted the progress in strengthening the financial sector in the context of the regional transition to the new regulatory standards aligned with the Basel II/III principles. They also considered that additional efforts are needed to finalize the restructuring of public banks.

“The mission and the authorities concurred that Côte d’Ivoire’s economic transformation program is proceeding, driven by dynamic investment private and export diversification efforts. Continuing the steadfast implementation of policies to reduce poverty levels and promote inclusive growth will continue to be important factors for ensuring the long-term success of government objectives.

“The IMF team thanks the authorities for their hospitality and productive discussions.”

The IMF mission met with President Alassane Ouattara; Prime Minister Amadou Gon Coulibaly; Minister of Economy and Finance Adama Coulibaly; Minister of Agriculture and Rural Development Kobenan Kouassi Adjoumani; Minister of Planning and Development Niale Kaba; Minister of Oil, Energy and Development of Renewable Energies Abdourahmane Cissé; Minister of Public Service Issa Coulibaly; Minister in charge of the Ministry of Budget and State Holdings Moussa Sanogo; and other senior Ivoiren and BCEAO officials.