Côte d’Ivoire is set to complete a debt-for-development swap with the assistance of the World Bank Group. This transaction aims to improve the country's debt situation and generate fiscal savings, which will be redirected towards enhancing education. This initiative marks the first of its kind supported by the World Bank Group.
The swap will address approximately €400 million of Côte d’Ivoire’s expensive commercial debt due within five years. With partial credit enhancement from a new World Bank Group guarantee platform, Côte d’Ivoire will replace this high-interest debt with a lower interest commercial loan, featuring longer maturity and a grace period. This operation is expected to free up around €330 million in budget resources over five years, achieving lifetime savings of at least €60 million in net present value terms for investments in education.
Robert Beugré Mambé, Prime Minister of Côte d’Ivoire, stated, “Our government has implemented a robust fiscal consolidation reform agenda, resulting in sound debt management. We are proud to be the first country to operationalize the World Bank Debt for Development Swap framework...This pioneering approach reflects our commitment to exploring creative solutions that enhance the well-being of our citizens while contributing to the sustainability of our planet.”
A policy-based guarantee will enable this debt swap. Approximately half of a €500 million guarantee will facilitate it, while the rest allows Côte d’Ivoire to secure a Sustainability-Linked Loan (SLL) to expand its investor base.
Anna Bjerde, World Bank Managing Director of Operations, noted that many countries face rising debt service payments that hinder development spending on priorities like education. She remarked, “Through a pioneering debt-for-development swap...the Government of Côte d’Ivoire is aiming to address these two challenges at once.”
This announced swap differs from other recent ones by avoiding costly structures such as offshore vehicles and trust funds that incur high costs. Instead, it utilizes existing country systems and increases ambition for an ongoing education program supported by a World Bank Program for Results financing instrument.
This swap is part of broader financing under the Third Investment for Growth Development Policy Financing (DPF), supporting competition strengthening in key sectors and promoting equitable access to health and education services while encouraging sustainable resource use.