IMF Staff Completes 2021 Article IV Mission to Côte d’Ivoire

IMF News, June 11, 2021

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Mission led by Luca Antonio Ricci.
Virtual mission held from May 25 to June 10 for the 2021 Article IV consultation discussions with the authorities.
End-of-Mission press release conveying preliminary findings; staff will prepare a report for the IMF's Executive Board, subject to management approval.
Press Release No. 21/171; date: June 11, 2021.
Press officer: Lucie Mboto Fouda. Phone: +1 202 623-7100. Email: MEDIA@IMF.org. @IMFSpokesperson

Côte d’Ivoire showed strong resilience to the pandemic due to swift policy reaction, a decade of macroeconomic and structural policy improvements, and international support including the IMF.
Authorities’ actions: lockdown measures, closing of international borders at the onset of the pandemic, followed by a cautious and gradual reopening; comprehensive health, economic, social, and humanitarian response package; procurement and distribution of Covid-19 vaccines.
Growth:
- 2020 growth is preliminarily estimated at about 2 percent, supported mainly by the primary and tertiary sector.
- IMF staff expects growth at 6 percent for 2021.
Inflation: described as temporarily on the rise, driven by pandemic-induced supply disruptions and recent energy shortages.
Energy shortages noted as a recent adverse factor.

Overall fiscal deficit in 2020: -5.6 percent of GDP.
- Noted as smaller than projected last fall, due to better-than-expected revenue performance.
Revenue mobilization priorities agreed with authorities:
- Rationalize exemptions.
- Broaden the tax base.
- Strengthen tax administration.
Fiscal objective:
- Ensure a gradual fiscal consolidation path back to the WAEMU convergence criterion of a 3 percent of GDP fiscal deficit by 2023.
Policy emphasis: finance productive and social spending to support strong and inclusive growth while preserving macroeconomic and debt sustainability and enhancing resilience to shocks (e.g., fluctuations in commodity prices and international financial conditions).

The economic and financial system remains resilient.
IMF staff highlighted the importance of:
- Continuing to monitor financial sector performance.
- Strengthening the financial health of state-owned banks.

Investment and growth could be stronger with implementation of a strong reform agenda to be defined under the incoming National Development Plan 2021-25 (NDP).
IMF Staff welcomed the draft NDP’s broad objectives, anchored in six essential pillars and leveraging a strong role for the private sector to foster structural transformation, higher growth, and deeper inclusiveness.
Agreed priorities to improve the business environment and deepen structural reforms:
- Enhance the efficiency of public spending.
- Strengthen governance.
- Reduce labor market skills mismatches and informality.
- Safeguard property rights.
- Facilitate access to credit.
- Promote climate resilience.
Specific authorities’ efforts and plans noted as highly welcome:
- Improving the provision of public sector services.
- Broadening professional training programs.
- Rolling out the single tax identification number.
- Promoting digitalization and mobile payment systems.
- Enhancing transport infrastructure.

IMF team held virtual meetings with:
- Prime Minister Patrick Achi.
- Minister and Secretary General of the Presidency Abdourahmane Cisse.
- Minister of Economy and Finance Adama Coulibaly.
- Minister of Budget and State Holdings Moussa Sanogo.
- Minister of Planning and Development Nialé Kaba.
- Minister of Public Service and Modernization of the Administration Anne Désirée Ouloto.
- Minister of Public Health, Sanitation and Universal Health Coverage Pierre Dimba.
- Minister of Mining, Petroleum and Energy Thomas Camara.
- BCEAO National Director Chalouho Coulibaly.
- Other senior government and BCEAO officials, and representatives of the business and donor communities.
IMF team expressed gratitude to the authorities for open and constructive discussions.

Press Release No. 21/171 — IMF staff statement, June 11, 2021