The International Monetary Fund (IMF) has reached a staff-level agreement with Côte d’Ivoire on the fifth review of its Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, as well as the fourth review of the Resilience and Sustainability Facility (RSF). The discussions took place in Abidjan from September 15 to 30, led by IMF mission chief Olaf Unteroberdoerster.
The EFF/ECF arrangement, totaling SDR 2.6 billion (about US$3.5 billion), was approved by the IMF Executive Board on May 24, 2023. The RSF arrangement, amounting to SDR 975.6 million (around US$1.3 billion), received approval on March 15, 2024.
“Performance of the authorities’ programs has been strong. Following constructive discussions with the Ivoirian authorities, we have reached a staff-level agreement on future policy measures and structural reforms aligned with the objectives of both programs," said Mr. Unteroberdoerster.
He added: “On the EFF/ECF, continued steadfast revenue mobilization and expenditure control have supported sizable fiscal consolidation. Since the program’s launch in 2023, the fiscal deficit is on track to meet the West African Economic and Monetary Union (WAEMU) deficit ceiling of 3 percent of GDP for the first time this year. The mission welcomes the authorities’ commitment to maintain a prudent fiscal stance through 2026. While the WAEMU fiscal deficit ceiling remains a key anchor for fiscal and debt sustainability, further progress under the medium-term revenue mobilization strategy, including measures to broaden the tax base and strengthen compliance, is expected to raise tax revenue to 15.7 percent of GDP in 2026, up from 15 percent of GDP in 2025. This additional fiscal space will be critical to support growing spending in priority social sectors and infrastructure, in line with the authorities’ ambitious national development plan."
Regarding climate-related reforms under the RSF arrangement, Mr. Unteroberdoerster stated: “On the RSF, discussions focused on the implementation of reform measures due for this review, including climate budget tagging, assessing climate-related fiscal risk, integrating climate considerations into public investment management, and operationalizing energy consumption audit system.”
Côte d’Ivoire’s economy continues to show resilience. Growth is projected at 6.3 percent for 2025 due mainly to activity in services, hydrocarbons, and mining sectors. Inflation has decreased more rapidly than anticipated and is forecasted to average around one percent this year.
According to Mr. Unteroberdoerster: “Favorable terms of trade, including higher international cocoa prices and lower imported international prices for key food supplies such as rice and wheat, are expected to contribute to a further narrowing of the current account deficit to about one-and-a-half percent of GDP in 2025. Combined with fiscal consolidation and successful efforts to broaden access to international financial markets, Côte d’Ivoire’s strong trade performance is reinforcing its role as an anchor of stability for the region. This momentum is further supporting the buildup of regional official reserves, which reached about five-and-a-half months of imports at end-August.”
Looking ahead over the medium term, growth is projected to average nearly seven percent while inflation should remain below three percent within regional targets.
Mr. Unteroberdoerster also noted: “The medium-term outlook remains generally favorable. Growth is projected to average 6.7 percent while inflation is expected to remain below three percent within the regional target range. Despite elevated global policy uncertainty, geopolitical tensions, and Côte d’Ivoire’s vulnerability to weather-related shocks, risks to the economic outlook are assessed to be broadly balanced.”
During their visit in Abidjan, IMF officials met with Vice President Tiémoko Meyliet Koné; Prime Minister Robert Beugré Mambé; Minister Kobenan Kouassi Adjoumani; Minister Nialé Kaba; Minister Adama Coulibaly; Minister Sangafowa Coulibaly; senior government officials; representatives from BCEAO; business community members; and development partners.