IMF Executive Board Approves US$1.3 Billion under the Resilience and Sustainability Facility for Cote d’Ivoire

IMF News, March 15, 2024

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The Executive Board approved a 30-month RSF arrangement for Côte d’Ivoire with total access of SDR975.6 million (approximately US$1.3 billion or 150 percent of Côte d’Ivoire’s IMF quota).
Reviews under the RSF arrangement will coincide with reviews of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in May 2023 for an amount of about SDR2,601.6 million, or 400 percent of quota.
The ECF/EFF arrangements support the government’s economic program over 2023-2026 for macroeconomic stability and structural economic transformation to transition Côte d’Ivoire towards an upper middle-income country.

Côte d’Ivoire is exposed and vulnerable to climate change through:
- rising temperatures,
- rainfall disruptions,
- flooding,
- rising sea levels and coastal erosion.
Economic vulnerabilities are amplified by:
- heavy reliance on agriculture (employs about half of the workforce; contributes about 17 percent of GDP and 10 percent of tax revenues),
- concentration of industrial and services activity in coastal areas.
Greenhouse gas emissions and urban pollution are growing, albeit from a low level.

The RSF arrangement supports the authorities’ homegrown package of reform measures centered around six key pillars:
- integrating climate into key aspects of PFM,
- strengthening governance of climate policies,
- reinforcing safeguards for the agricultural sector,
- creating a framework for green and sustainable financing,
- building resilience to climate hazards,
- controlling and reducing greenhouse gas emissions.
The RSF strategy is based on diagnostics including the World Bank Country Climate and Development Report, Climate-Public Investment Management Assessment, and green public financial management technical assistance, and is complemented by various national plans and strategies.
Strong synergies with the EFF/ECF arrangements — notably in domestic revenue mobilization, public finance management and financial market deepening — are intended to enhance expected outcomes.
Technical assistance from the IMF and development partners (including the World Bank Group, the African Development Bank, the UNDP, and bilateral partners) should continue to play an important role.

Implementation of reforms under the RSF arrangement should:
- improve Côte d’Ivoire’s resilience to climate change over the medium term,
- replace more expensive financing,
- build buffers against climate shocks and related prospective balance of payment needs.
Collaboration with development partners should ensure complementarity of actors’ programs and catalyze financing needs identified in the authorities’ NDC.
The authorities committed to develop a carbon taxation strategy which should create synergies with key policies under the EFF/ECF arrangements such as enhancing domestic revenue mobilization.

Central government finances:
- Revenues (% GDP): 2020: 14.4; 2021: 15.3; 2022: 14.8; 2023: 15.8; 2024 Prel. Proj.: 16.2
- Expenditure (% GDP): 2020: 20.4; 2021: 20.7; 2022: 22.1; 2023: 21.7
- Fiscal balance (% GDP): 2020: -5.4; 2021: -4.9; 2022: -6.8; 2023: -5.2; 2024 Prel. Proj.: -4.0
- Public debt (% GDP): 2020: 46.3; 2021: 50.9; 2022: 56.8; 2023: 58.1; 2024 Prel. Proj.: 57.3

Money and Credit:
- Broad money (% change): 2020: 21.1; 2021: 18.7; 2022: 9.0
- Credit to private sector (% change): 2020: 9.2; 2021: 12.5; 2022: 7.3

Balance of payments:
- Current account (% GDP): 2020: -3.1; 2021: -7.7; 2022: -5.8; 2023: -3.8
- Net FDI Inflows (% GDP): 2020: 1.1; 2021: 1.5; 2022: 1.8; 2023: 1.7
- WAEMU reserves (in months of imports): 2020: 5.5; 2021: 5.1
- External public debt (% GDP): 2020: 29.7; 2021: 30.9; 2022: 34.5; 2023: 35.1; 2024 Prel. Proj.: 34.3

Sources: Ivorian authorities, World Bank, and IMF staff estimates.