Abidjan, Côte d’Ivoire:
An International Monetary Fund (IMF) staff team, led by Mr. Olaf
Unteroberdoerster, visited Abidjan during September 19 - October 3 to
discuss 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), and approved by the IMF Executive Board on May 24, 2023
(IMF
Executive Board Approves US $3.5 billion Extended Fund Facility and
Extended Credit Facility for Côte d’Ivoire) .
At the end of the visit, Mr. Unteroberdoerster issued the following
statement:
“Discussions at the first semi-annual review of the Fund-supported program
have been very productive. I am pleased to announce that 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. Completion of the program review and disbursement of the next
tranche of about US$500 million is subject to approval by the IMF’s
Executive Board.
“Following consecutive global shocks and widening imbalances through end
2022, the Fund-supported program aims to safeguard macroeconomic stability
and support Cote d’Ivoire’s transformation towards upper-middle income
status over the medium-term. Despite a challenging outlook and continued
external headwinds, growth has proven resilient in 2023, estimated to reach
6.4 percent, with average annual inflation 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. Nevertheless, 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.
”Discussions focused on boosting revenue mobilization to preserve fiscal
and debt sustainability and supporting the key objectives of the 2021-25
National Development Plan (NDP). Continued steadfast program implementation
will aim to reduce the fiscal deficit further to about 4 percent of GDP in
2024 while 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 should
help ease external pressures and allow Côte d’Ivoire to contribute to a
gradual recovery of regional official reserves.
“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 further improving the business climate to support
private sector-led and more inclusive growth by strengthening public
financial management and financial inclusion, as well as governance and
anti-corruption.”
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; and other senior
government and BCEAO officials, as well as representatives of the business
and donor communities.
