Ivory Coast: $825 million in aid from the IMF in sight thanks to satisfactory economic performance
Background to the IMF Agreement
Since May 2023, Côte d’Ivoire has benefited from an agreement with the International Monetary Fund (IMF) through the Extended Credit Mechanism (ECM) and the Extended Credit Facility (ECF). This agreement is supplemented by specific financing, intended for climate reforms, via the Resilience and Sustainability Facility (RSF). From September 23 to October 9, 2024, an IMF mission assessed the reforms underway, with a view to new financial assistance.
IMF’s positive assessment of reforms
According to Olaf Unteroberdoerster, head of the IMF mission to Côte d’Ivoire, the country’s economic performance was deemed satisfactory. The IMF’s Executive Board is expected to approve a new tranche of financial assistance, estimated at $825 million, shortly as part of the assessment of Ivorian reforms. These reforms are supported by the MEC, FEC and FRD programs, which aim to strengthen the country’s economic and climate resilience.
Objectives of economic and climate reforms
One of the main objectives of these reforms is to reduce the budget deficit to 3% of GDP by 2025. To achieve this objective, additional tax revenue measures have been agreed for the year 2024, with an outlook for 2025. As regards the FRD, actions have been defined to improve climate governance, reduce greenhouse gas emissions and increase green financing by the end of 2024.
A strong commitment to inclusive growth
The IMF reiterated the importance of continuing efforts to reduce poverty, strengthen climate resilience, and promote more inclusive growth, including by further integrating the informal sector into the formal economy. These reforms are part of Côte d’Ivoire’s ambitions to become an upper-middle-income economy by 2030.
Conclusion
With economic performance deemed satisfactory, Côte d’Ivoire could receive an additional $825 million in aid from the IMF. This financial support is part of an ambitious reform strategy aimed at stabilizing public finances, accelerating growth and strengthening climate resilience, while working towards a significant reduction in poverty and better inclusion of the informal sector.
