Press Release No. 24/109

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

April 8, 2024

• The Ivorian authorities and IMF staff have reached a staff-level agreement on both the second semi-annual review of Côte d’Ivoire’s economic reform program supported by the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, and the first review of their climate change reform program supported by the Resilience and Sustainability Facility (RSF) arrangement.
• The EFF/ECF and RSF arrangements are respectively in the amounts of about SDR 2.6 billion (about US$3.5 billion), and SDR 975.6 million (approximately US$1.3 billion).
• The authorities are advancing their reform agendas for safeguarding macroeconomic stability and deeper economic transformation under the 2021-25 National Development Plan and for greater climate resilience through adaptation and mitigation reforms.
• Completion of the reviews by the IMF Executive Board will lead to two disbursements for a total of about US$574 million of which US$493 million and US$81 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 March 25 – April 6 on progress under both the authorities’ economic program supported by the EFF/ECF, and the climate reform program supported by the RSF. The EFF/ECF arrangement for an amount of about US $3.5 billion and the RSF arrangement for an amount of about US$1.3 billion were approved by the IMF Executive Board respectively on May 24, 2023, and March 15, 2024.

“I am pleased to announce that performance under the 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 key policy parameters including further revenue-based fiscal consolidation to reduce the fiscal deficit to 3 percent of GDP by 2025 and on structural reforms which will continue to further strengthen domestic revenue mobilization, public financial management, and governance. On the RSF, the authorities are on track in implementing the reform measures expected to become effective over the coming months in 2024.

The completion of the programs’ reviews and disbursement of the next tranches for a total of about US$574 million will be subject to approval of the IMF’s Executive Board.”

“The economy remains resilient despite a difficult external environment. In 2023, growth remained robust and inflation declined. Despite a sustained current account deficit in part reflecting the impact of adverse weather conditions on cocoa exports volume, the underlying imbalances have begun to shrink as fiscal deficit narrowed by 1.6 ppt over 2022-23 reaching 5.2 percent of GDP. The medium-term outlook remains favorable. Growth is projected to average 6.5 percent supported by stronger private domestic demand, a recovery in cocoa production, capital deepening and gradually improving external conditions. Inflation is projected to decline and remain within the BCEAO target range from end-2024 onwards.

Under the ongoing domestic revenue mobilization (DRM) efforts, the fiscal deficit is expected to further decline from 4 to 3 percent of GDP over 2024-25, converging with the WAEMU target. The recent successful Eurobond issuance and associated liability management operation are expected to contribute to strengthen public debt sustainability. The current account deficit is projected to gradually narrow down from 5.7 to 2 percent of over 2024-26 on the back of favorable terms of trade and more diversified exports, setting the stage for a gradual recovery in international reserves.”

“Discussions also focused on reforms to boost revenue mobilization by 0.5 percent of GDP annually to support the key objectives of the 2021-25 National Development Plan (NDP) and preserve fiscal and debt sustainability to maintain Côte d’Ivoire’s moderate risk of debt distress rating. A comprehensive medium-term revenue mobilization strategy is expected to be adopted by the government in May 2024. It will help advance tax policy and administration reforms for a simpler, more equitable and broader system with a view to gradually achieve the WAEMU tax ratio target of at least 20 percent of GDP.

“Other structural reforms will focus on strengthening public financial management and fiscal data transparency, improving the business climate to support private sector-led and more inclusive growth and financial inclusion, as well as enhancing governance and anti-corruption.

“On the RSF arrangement, discussions focused on the authorities’ implementation of their ambitious homegrown package of reform measures. These comprises a balanced mix of adaptation and mitigation efforts and centered around six key pillars: integrating climate into key aspects of PFM, strengthening governance of climate policies, reinforcing safeguards for the agricultural sector, creating a framework for green and sustainable financing, building resilience to climate hazards, and controlling and reducing greenhouse gas emissions.”

The IMF team met with Vice President of the Republic Tiémoko Meyliet Koné; Prime Minister Robert Beugré Mambé; Minister of State and Agriculture Kobenan Kouassi Adjoumani; Minister of Economy, Planning and Development Nialé Kaba; Minister of Finance and Budget Adama Coulibaly; Minister of Petroleum, Mines and Energy Sangafowa Coulibaly; and other senior government and BCEAO officials, as well as representatives of the business and donor communities.