IMF Reaches Staff-Level Agreement with Côte d’Ivoire on a $3.5 billion EFF/ECF Arrangement

IMF News, April 5, 2023

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A staff-level agreement was reached between the Ivorian authorities and IMF staff on economic policies and reforms to be supported by a new 40-month arrangement of about US$ 3.5 billion under the Extended Fund Facility (EFF)/ Extended Credit Facility (ECF).
The staff-level arrangement includes access to Fund resources of 400 percent of quota (equivalent to about US$ 3.5 billion).
The final program arrangement is subject to approval by the IMF’s Executive Board.

Aim: preserve fiscal and debt sustainability and advance the authorities’ reform agenda for deeper economic transformation under the 2021-25 National Development Plan (NDP).
Focus on anchoring the 2021-25 NDP in key structural priorities to promote more inclusive growth led by the private sector and facilitate Côte d’Ivoire’s transition towards a middle-income country.
Support measures to strengthen macroeconomic stability and reverse widening fiscal and external imbalances.

The economy was hit hard by a triple shock: the Covid-19 pandemic, global financial tightening, and adverse spillovers from Russia’s war in Ukraine.
In 2022, indirect and direct subsidies to curb price pressures, higher security spending, worsening terms-of-trade amid robust domestic demand contributed to widening macroeconomic imbalances.
The Ivorian economic rebound softened due to adverse spillovers from Russia’s war in Ukraine and global monetary tightening.

An IMF staff team, led by Mr. Olaf Unteroberdoerster, visited Abidjan during March 1-14.
The team agreed with the Ivorian authorities on all policy objectives and reforms for an economic reform program that could be supported by an IMF financial arrangement under the EFF/ECF.
The IMF team met with Vice President Tiémoko Koné; Prime Minister Patrick Achi; Minister of State and Agriculture Kobenan Adjoumani; Minister of Planning and Development Nialé Kaba; Minister of Petroleum, Mines and Energy Sangafowa Coulibaly; Minister of Economy and Finance Adama Coulibaly; Minister of Budget and State Holdings Moussa Sanogo; Minister of Commerce and Industry Souleymane Diarrassouba; Minister and Secretary General of the Presidency Abdourahmane Cissé; other senior government and BCEAO officials; and representatives of the business and donor communities.

Staff fully supports the authorities’ reform agenda and welcomes their deep commitment to fiscal and debt sustainability, and to building a more prosperous and inclusive society amid rapid demographic change and significant external challenges.
The IMF-supported program would aim to preserve fiscal and debt sustainability and advance structural reforms to support economic transformation in line with the 2021-25 NDP.

Press Release No. 23/110 — IMF Reaches Staff-Level Agreement with Côte d’Ivoire on a $3.5 billion EFF/ECF Arrangement (April 5, 2023).