Press Release No. 24/50

IMF Staff and Côte d’Ivoire Reach Staff-Level Agreement on Resilience and Sustainability Facility (RSF)

February 16, 2024

• The Ivorian authorities and IMF staff reached a staff level agreement on a reform program to fight climate change supported by the Resilience and Sustainability Facility (RSF) for an amount of SDR 975.6 million (approximately US$ 1.3 billion).
• Côte d’Ivoire is exposed and vulnerable to climate change. Rising temperatures, rainfall disruptions, flooding, rising sea levels and coastal erosion are major challenges and represent recurring risks for resilient, sustainable and inclusive economic growth.
• The RSF will support the actions of the Ivorian authorities to strengthen adaptation and mitigation, particularly in the areas of agriculture, transport, infrastructure, and public financial management.
• The staff level agreement will be subject to final approval by the IMF Executive Board.

Abidjan, Côte d’Ivoire: A virtual International Monetary Fund (IMF) mission led by Mr. Olaf Unteroberdoerster was held from January 23 to February 14, 2024, to discuss a new climate reform program that would be supported by the Resilience and Sustainability Facility (RSF). At the end of the mission, Mr. Unteroberdoerster issued the following statement:

“Discussions for a new financial arrangement under the RSF to support the authorities’ climate adaptation and mitigation reforms agenda have been very productive. I am pleased to announce that we have reached a staff level agreement on a package of reform measures for 2024-26 in line with the RSF program objectives for an amount of SDR 975.6 million (about US$ 1.3 billion, or 150 percent of quota). The RSF program request will be submitted for approval to the IMF Executive Board in the coming weeks.

“The RSF program reviews will coincide with reviews of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in May 2023 (for an amount of about SDR 2,601.6 million, or 400 percent of quota) to support the government's economic program over 2023-2026 for macroeconomic stability and the structural economic transformation to transition Côte d’Ivoire towards an upper middle-income country.

“Côte d'Ivoire and its economy are exposed and vulnerable to climate change, especially in the agricultural sector and other economic activity sectors in coastal areas. At the same time, greenhouse gas emissions and pollution in urban areas are increasing and pose additional challenges. Based on these findings, the authorities are committed to reducing the harmful effects of climate change and have implemented several government initiatives.

“Discussions focused on the importance of mitigating climate change, by strengthening adaptation and mitigation efforts, particularly in the areas of agriculture, transport, and infrastructure, and public financial management.

“The RSF program will aim to improve resilience to climate change by implementing a set of ambitious reform measures to address the identified challenges, which are: (i) the integration of climate into public financial management; (ii) strengthening the governance of climate policies; (iii) reducing exposure and vulnerability of the agricultural sector; (iv) increasing green and sustainable financing; (v) reducing vulnerability to flooding and coastal erosion, and (vi) reducing greenhouse gas emissions.” Technical assistance from partners including the IMF, the World Bank Group, the African Development Bank, the European Unions, and bilateral partners should continue to play an important role in meeting these challenges.

“The IMF team met with Minister of State for Agriculture, Rural Development and Food Production Kobenan Kouassi Adjoumani; Minister of Finance and Budget Adama Coulibaly; Minister of Economy, Planning and Development Nialé Kaba; Minister of Petroleum, Mines and Energy Sangawofa Coulibaly; the Minister of the Environment, Sustainable Development and Ecological Transition Konan Jacques Assahoré and other senior government officials.”