IMF Reaches Staff Level Agreement with Côte d’Ivoire on the First Review of the ECF/EFF Arrangement
IMF News, October 4, 2023
Source details
- Canonical URL
- IMF Reaches Staff Level Agreement with Côte d’Ivoire on the First Review of the ECF/EFF Arrangement
Other formats
Bibliographic details
- Published: October 4, 2023
Mission visit and staff-level agreement
- IMF staff team, led by Mr. Olaf Unteroberdoerster, visited Abidjan during September 19 - October 3.
- The visit discussed progress under the authorities’ economic program supported by an EFF/ECF arrangement in the amount of SDR 2.6 billion (about US$ 3.5 billion), approved by the IMF Executive Board on May 24, 2023.
- The Ivorian authorities and IMF staff reached a staff-level agreement on the first semi-annual review of the program.
- Completion of the review by the IMF Executive Board will lead to the disbursement of about US$500 million.
- The mission statement notes: “performance under the program has been satisfactory so far and that we reached staff-level agreement on all policies, including key parameters of the 2024 fiscal framework and reform measures going forward in line with the program‘s objective.”
Macroeconomic developments and projections
- Growth in 2023 is estimated to reach 6.4 percent.
- Average annual inflation in 2023 is receding to about 4.7 percent.
- Improved tax revenue collection is expected to help reduce the fiscal deficit for 2023 to 5.3 percent of GDP.
- The current account deficit remains elevated and is projected to decline moderately to 5.8 percent of GDP as strong domestic demand continues to boost imports.
Fiscal and external policy measures under the program
- The Fund-supported program aims to safeguard macroeconomic stability and support Côte d’Ivoire’s transformation towards upper-middle income status over the medium-term.
- Continued program implementation will aim to reduce the fiscal deficit further to about 4 percent of GDP in 2024.
- Measures estimated to increase revenue by 0.5 percent of GDP will be key in preserving Côte d’Ivoire moderate risk of debt distress rating.
- A further gradual reduction of the current account deficit is expected to help ease external pressures and allow Côte d’Ivoire to contribute to a gradual recovery of regional official reserves.
Revenue mobilization and structural reforms
- Work on a comprehensive medium-term revenue mobilization strategy is underway and expected to be adopted by the government in May 2024.
- The strategy will help advance tax policy and administration reforms with a view to gradually achieving the WAEMU tax ratio target of at least 20 percent of GDP.
- Other structural reforms in the first year under the program will focus on:
- improving the business climate to support private sector-led and more inclusive growth;
- strengthening public financial management and financial inclusion;
- strengthening governance and anti-corruption.
Meetings and stakeholders
- The IMF team met with:
- Vice President Tiémoko Koné;
- Prime Minister Patrick Achi;
- Minister and Secretary General of the Presidency Abdourahmane Cissé;
- Minister of Economy and Finance Adama Coulibaly;
- Minister of Budget and State Holdings Moussa Sanogo;
- Minister of Planning and Development Nialé Kaba;
- Minister of State and Agriculture Adjoumani Kouabenan;
- Minister of Petroleum, Mines and Energy Sangawofa Coulibaly;
- other senior government and BCEAO officials, as well as representatives of the business and donor communities.
Source: Press Release No. 23/334, IMF — October 4, 2023.
References
- PRESS CENTER
- [IMF
Executive Board Approves US $3.5 billion Extended Fund Facility and Extended Credit Facility for Côte d’Ivoire](https://www.imf.org/en/News/Articles/2023/05/24/pr23178-imf-executive-board-approves-extended-fund-facility-and-extended-credit-facility)