IMF completes reviews with Côte d’Ivoire; disburses $808M

Economics
Webp 1liwalrqlp4ixthvwvsfk31n4qyw
Derek L. Bills Director of the Investment Office | International Monetary Fund

The International Monetary Fund (IMF) Executive Board has completed the third reviews of Côte d'Ivoire's Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, as well as the second review of the Resilience and Sustainability Facility Arrangement (RSF). Additionally, the 2024 Article IV consultation with Côte d'Ivoire has concluded.

Côte d'Ivoire has shown strong performance under its EFF/ECF arrangements, which have a combined access of SDR 2,601.6 million, and its RSF arrangement with an access of SDR 975.6 million. All performance criteria and reform measures scheduled for these reviews were met or implemented satisfactorily. Consequently, an immediate disbursement of approximately US$808.5 million under these arrangements is now possible.

The authorities' commitment to reforms aims to support Côte d'Ivoire's transition towards upper middle-income status while enhancing resilience to climate change. However, structural challenges such as high informality and gender equality gaps remain obstacles to more inclusive growth.

Economic activity in Côte d'Ivoire remains robust despite weaker agricultural production and construction activity in 2024. The economy is expected to continue growing due to recovery in agriculture, increased extractive industries activity from the Baleine oil field coming onstream, and growth in energy production from ongoing investments. Inflation is moderating, with headline annual average CPI inflation projected to decrease from 4.4% in 2023 to 3.8% by end-2024.

Fiscal and external imbalances have been improving since 2023 due to revenue-based fiscal consolidation efforts that have reduced the fiscal deficit from 6.8% of GDP in 2022 to 5.2% in 2023. Further measures are anticipated for additional consolidation reaching a fiscal deficit target of 3% by 2025.

Mr. Okamura, Acting Chair and Deputy Managing Director at IMF stated: “Côte d’Ivoire’s performance under the Fund-supported programs has been strong... Continued and resolute reform efforts will maintain a moderate risk of debt distress amid a still difficult external backdrop.”

He emphasized the importance of sustaining domestic revenue mobilization for economic transformation toward upper middle-income status: “Sustaining domestic revenue mobilization over the medium term remains a clear priority...”

Mr. Okamura also highlighted structural reforms needed for private sector potential: “Sustaining structural reform momentum... are important for unlocking the private sector’s potential.”

These developments come as part of ongoing efforts by Côte d'Ivoire's government in collaboration with international financial institutions and development partners aimed at catalyzing climate finance within the country.