Côte d’Ivoire, once one of Africa's fastest-growing economies with an annual growth rate of 8% from 2012 to 2019, is taking steps to reshape its debt management strategies. The nation aims to invest in human capital through a new initiative supported by the World Bank Group. This innovative debt-for-development swap allows Côte d’Ivoire to exchange existing costly debt for a loan with better terms. The savings from this swap will be reinvested in constructing over 30 schools, thereby easing fiscal pressures and improving access to education.
Despite national achievements, disparities remain between urban and rural areas. For instance, Assoum 2, a village near the Burkina Faso border, recently saw improvements with the inauguration of a new school building and facilities. Nationwide challenges persist as only one in ten children has access to preschool education, significantly below the Sub-Saharan African average of 28%. Urban areas currently dominate preschool access.
The government has been addressing these educational demands since implementing compulsory education for children aged 6 to 16 in 2015. A partnership with the World Bank in 2022 led to a $350-million Education Sector Program for Development focused on efficiency and regional equity.
The recent progress in Assoum 2 illustrates potential nationwide improvements. Enrollment at the local school increased from 136 to 290 students following infrastructure enhancements.
The debt-swap operation aims not only to meet growing educational demands but also to improve fiscal resilience and strengthen Côte d’Ivoire’s debt profile. Supported by a €500 million policy-based guarantee, half will facilitate the debt swap while the rest secures a Sustainability Linked-Loan targeting environmentally and socially conscious investors.
Through these measures, Côte d’Ivoire is setting an example that could inspire other nations across Africa by transforming its debt into opportunities for development.