IMF Staff Team Completes Mission to Côte d’Ivoire

IMF News, October 1, 2019

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An IMF mission led by Céline Allard visited Abidjan from September 18 to October 1, 2019.
Purpose: discussions on the sixth review of the three-year economic and financial program supported by the IMF through arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).
Outcome: The authorities and the IMF team reached a staff-level agreement on the sixth review and on a one-year program extension, subject to approval by IMF management and the Executive Board. Consideration by the IMF’s Executive Board is expected in December 2019.

"Despite a deteriorating external environment, the Ivoirian economy has exhibited resilience and strong economic performance is projected to continue in 2019 and 2020."
Inflation: "Inflation should remain subdued well below the 3 percent regional threshold of the Western Africa Economic and Monetary Union (WAEMU)."

"Performance under the IMF-supported program was satisfactory in the first half of 2019."
Compliance:
- "All performance criteria and all indicative targets for end-June 2019 were met."
- "All but one of the structural benchmarks on public finance management, public enterprise monitoring, and tax policy and administration were also met."
Fiscal deficit:
- "The fiscal budget deficit is expected to converge the WAEMU regional deficit norm of 3.0 percent of GDP in 2019 thereby meeting a key program objective."
- The mission and authorities agreed on fiscal policy measures for the 2020 budget intended to enable "the projected fiscal deficit to remain at 3.0 percent of GDP in 2020 and thus continue complying with the regional norm."
Revenues and expenditures: "Revenue should increase and expenditure will remain contained."

Program extension: Agreement on a one-year program extension under ECF and EFF arrangements, subject to IMF Executive Board approval.
Fiscal policy measures: Agreed measures for the 2020 budget to secure key program objectives and keep the fiscal deficit at 3.0 percent of GDP.
Debt sustainability and financing space: Policies agreed to "continue to secure debt sustainability and space to finance the National Development Program (2016-2020)."
Domestic revenue mobilization: "IMF staff and the authorities also concurred on continuing domestic revenue mobilization efforts, which are essential to creating fiscal space for ambitious development policies and strengthen debt payment capacity."

Public enterprises and customs:
- "The mission noted improvements in the restructuring and the oversight of public enterprises, and in custom administration."
Electricity sector: Staff "commended the Ivoirian authorities for the measures taken to strengthen the electricity sector which should underpin an ambitious development strategy."
Financial sector:
- "Staff noted the progress in strengthening the financial sector in the context of the regional transition to the new regulatory standards aligned with the Basel II/III principles."
- Additional effort needed: "They also considered that additional efforts are needed to finalize the restructuring of public banks."
Economic transformation and inclusion:
- "The mission and the authorities concurred that Côte d’Ivoire’s economic transformation program is proceeding, driven by dynamic investment private and export diversification efforts."
- Continued focus: "Continuing the steadfast implementation of policies to reduce poverty levels and promote inclusive growth will continue to be important factors for ensuring the long-term success of government objectives."

Press Release No. 19/361 — October 1, 2019. IMF Communications Department.