Press Release No. 23/334

IMF Reaches Staff Level Agreement with Côte d’Ivoire on the First Review of the ECF/EFF Arrangement

October 4, 2023

• The Ivorian authorities and IMF staff have reached a staff-level agreement on the first semi-annual review of the authorities’ economic reform program that is supported by an IMF financial arrangement under the ECF/EFF facilities in the amount of SDR 2.6 billion (about US$ 3.5 billion).
• The authorities are advancing their agenda for deeper economic transformation under the 2021-25 National Development Plan. They have taken measures to strengthen macroeconomic stability and reverse widening fiscal and external imbalances as the economy is facing the triple shock of the Covid-19 pandemic, global financial tightening, and adverse spillovers from the war in Ukraine.
• Completion of the review by the IMF Executive Board will lead to the disbursement of about US$500 million.

Abidjan, Côte d’Ivoire: An International Monetary Fund (IMF) staff team, led by Mr. Olaf Unteroberdoerster, visited Abidjan during September 19 - October 3 to discuss progress under the authorities’ economic program supported by an EFF/ECF arrangement in the amount of SDR 2.6 billion (about US$ 3.5 billion), and approved by the IMF Executive Board on May 24, 2023 (IMF Executive Board Approves US $3.5 billion Extended Fund Facility and Extended Credit Facility for Côte d’Ivoire) .

At the end of the visit, Mr. Unteroberdoerster issued the following statement:

“Discussions at the first semi-annual review of the Fund-supported program have been very productive. I am pleased to announce that performance under the program has been satisfactory so far and that we reached staff-level agreement on all policies, including key parameters of the 2024 fiscal framework and reform measures going forward in line with the program‘s objective. Completion of the program review and disbursement of the next tranche of about US$500 million is subject to approval by the IMF’s Executive Board.

“Following consecutive global shocks and widening imbalances through end 2022, the Fund-supported program aims to safeguard macroeconomic stability and support Cote d’Ivoire’s transformation towards upper-middle income status over the medium-term. Despite a challenging outlook and continued external headwinds, growth has proven resilient in 2023, estimated to reach 6.4 percent, with average annual inflation receding to about 4.7 percent. Improved tax revenue collection is expected to help reduce the fiscal deficit for 2023 to 5.3 percent of GDP. Nevertheless, the current account deficit remains elevated and is projected to decline moderately to 5.8 percent of GDP as strong domestic demand continues to boost imports.

”Discussions focused on boosting revenue mobilization to preserve fiscal and debt sustainability and supporting the key objectives of the 2021-25 National Development Plan (NDP). Continued steadfast program implementation will aim to reduce the fiscal deficit further to about 4 percent of GDP in 2024 while measures estimated to increase revenue by 0.5 percent of GDP will be key in preserving Côte d’Ivoire moderate risk of debt distress rating. A further gradual reduction of the current account deficit should help ease external pressures and allow Côte d’Ivoire to contribute to a gradual recovery of regional official reserves.

“Work on a comprehensive medium-term revenue mobilization strategy is underway and expected to be adopted by the government in May 2024. The strategy will help advance tax policy and administration reforms with a view to gradually achieving the WAEMU tax ratio target of at least 20 percent of GDP. Other structural reforms in the first year under the program will focus on further improving the business climate to support private sector-led and more inclusive growth by strengthening public financial management and financial inclusion, as well as governance and anti-corruption.”

The IMF team met with Vice President Tiémoko Koné; Prime Minister Patrick Achi; Minister and Secretary General of the Presidency Abdourahmane Cissé; Minister of Economy and Finance Adama Coulibaly; Minister of Budget and State Holdings Moussa Sanogo; Minister of Planning and Development Nialé Kaba; Minister of State and Agriculture Adjoumani Kouabenan; Minister of Petroleum, Mines and Energy Sangawofa Coulibaly; and other senior government and BCEAO officials, as well as representatives of the business and donor communities.