## Cote d'Ivoire: Sustaining Its Economic Transformation

_IMF News, June 30, 2018_

## Source details

**Canonical URL:** [Cote d'Ivoire: Sustaining Its Economic Transformation](https://www.imf.org/en/news/articles/2018/06/29/na-062918-cote-d-ivoire-sustaining-its-economic-transformation)

## Other formats

- [Markdown version](/en/news/articles/2018/06/29/na-062918-cote-d-ivoire-sustaining-its-economic-transformation/index.md)
- [Structured JSON version](/en/news/articles/2018/06/29/na-062918-cote-d-ivoire-sustaining-its-economic-transformation/index.json)
- [Bundle manifest](/en/news/articles/2018/06/29/na-062918-cote-d-ivoire-sustaining-its-economic-transformation/bundle-manifest.json)

## Bibliographic details
- Published: June 30, 2018

---

### Highlights and context
- The IMF completed its annual health check of the Ivoirien economy.
- Political normalization and good implementation of reforms have contributed to the country’s strong economic performance since 2012.
- Going forward, bold structural reforms are needed to sustain the pace of development and ensure that the benefits are shared by all.

### Fast facts
- Population: 24.3 million (2016)
- Capital: Yamoussoukro
- Languages: French (official); 60 other languages, including Baoulé and Dioula
- Currency: West African Communauté Financière Africaine (CFA) franc (XOF)
- Life Expectancy: 51.2 years
- Adult literacy rate: 43.1% (2015)
- Real GDP growth: 8.3% (2016)
- Nominal GDP per capita: US$1,495 (2016)
- Poverty ratio: 46.3% (2015)

### Growth performance and inclusiveness
- Strong economic performance since 2012 reflected:
  - recovery following political normalization,
  - improved business environment,
  - sound program of reforms,
  - supportive fiscal policy.
- Growth averaged about 9 percent annually, but:
  - decline in poverty has been modest,
  - underemployment remains high.
- Government objectives to address inclusiveness:
  - upgrade public infrastructure,
  - further improve the business climate,
  - expand coverage and targeting of social safety nets.

### Private sector and structural reform priorities
- Sustaining robust and inclusive private sector-driven growth amid fiscal consolidation is a key policy challenge.
- Bold structural reforms are needed to foster more private sector-led growth as supportive factors may taper over the medium-term, including due to fiscal consolidation.
- Actions to improve the business climate are gaining momentum, including in agriculture.
- Progress noted:
  - reduced processing time for building permits,
  - introduced electronic payment of taxes,
  - established a credit bureau.
- Scope for improvement:
  - improve credit access through stronger legal rights for borrowers and creditors,
  - deepen credit information on borrowers to catch up with sub-Saharan African frontier market countries.

### Agriculture and rural employment
- Half of the Ivoirien workforce is employed in agriculture, and the majority are from rural areas.
- About 60 percent of families headed by an agriculture employee are poor.
- Women account for 40 percent of agricultural workers.
- More than half of all agricultural workers are unschooled.
- Agriculture contributed one-fourth of the growth in 2017.
- Government actions to boost inclusive growth in agriculture:
  - improve market access for crops by upgrading transportation infrastructure,
  - extend electricity provision,
  - develop strategies to enhance value-added from cocoa and cashews,
  - improve business and regulatory environment for agriculture.

### Debt, financing, and fiscal consolidation
- Côte d’Ivoire’s frontier market status and favorable international capital market conditions have expanded financing options, but debt needs to be firmly anchored on a sustainable path.
- Sound policies and commitment to reforms helped secure good terms on Eurobonds issued in 2017 and 2018.
- External public debt is projected to reach nearly 30 percent of GDP in 2018 and is currently assessed to be sustainable in the medium-term.
- Risks from increased reliance on international market financing:
  - higher rollover risks,
  - reduced policy space to buffer future shocks.
- Fiscal targets and regional importance:
  - Government committed to reduce the budget deficit to the West African Economic and Monetary Union (WAEMU) ceiling of 3 percent of GDP by 2019.
  - Côte d’Ivoire’s fiscal consolidation is critically important for regional macroeconomic and monetary stability.

### Revenue mobilization and public expenditure
- Building fiscal space for priority infrastructure investment and social safety nets requires additional revenue mobilization and prioritization of public expenditure.
- To facilitate public consultation and improve implementation, the government set up a committee that includes private sector representatives to work on fiscal reforms.

### Public financial management and revenue administration reforms
- Building on past structural fiscal reforms, the government is improving revenue administration and public financial management by:
  - upgrading information-sharing protocols across revenue collecting agencies,
  - instituting electronic payment of taxes,
  - improving tracking of imports,
  - advancing human resources management and risk analysis.
- Measures to improve spending efficiency:
  - restructuring public enterprises,
  - modernizing the system of government tenders for acquiring goods and services from private companies,
  - improving fiscal risk management,
  - upgrading cash management and treasury operations.

### Banking sector stability and supervision
- New prudential rules aligned with the 2018 Basel II/III principles have been introduced to reinforce banking sector oversight and market discipline.
- Reforms include:
  - higher minimum capital adequacy requirements,
  - stricter loan concentration requirements.
- Further action needed:
  - stringent application of prudential rules for the few remaining noncompliant banks to further improve the soundness of the banking system.

*International Monetary Fund*

---


## References

- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [report's](http://www.imf.org/en/Publications/CR/Issues/2018/06/25/Cote-d-Ivoire-Staff-Report-for-the-2018-Article-IV-Consultation-and-Third-Reviews-Under-the-46008)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/06/29/na-062918-cote-d-ivoire-sustaining-its-economic-transformation_