- The IMF Executive Board today completed the Fourth Reviews of Côte d'Ivoire's Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements and the Third Review of the Resilience and Sustainability Facility (RSF) Arrangement. The decision allows for an immediate disbursement of about US$758 million.
- Program implementation has been strong, with all end-December 2024 performance criteria and structural benchmarks met satisfactorily under the EFF/ECF program, and all climate-financing reform measures completed under the RSF arrangement.
- The authorities' ongoing commitment to reforms is expected to support Côte d'Ivoire's sustainable transformation toward upper middle-income status over the medium term, while strengthening economic resilience to climate-induced shocks and maintaining balance of payments stability.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the Fourth Reviews of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements and the Third Review of the Resilience and Sustainability Facility (RSF) Arrangement for Côte d'Ivoire.
The EFF/ECF-supported program approved in May 2023 in the amount of SDR2,601.6 million (equivalent to 400 percent of quota or about US$3.6 billion), has substantially reduced imbalances and safeguarded a moderate risk of debt distress rating, while important reforms under RSF arrangement for a total amount of SDR975.6 million (equivalent to 150 percent of quota or about US$1.3 billion) are contributing to prospective balance of payments stability and economic resilience to climate-induced shocks. The authorities' ongoing commitment to reforms under both programs should support Côte d'Ivoire's sustainable transformation toward upper middle-income status over the medium-term. Program implementation has been generally strong thus far, with all end-December performance criteria met and implementation of structural benchmarks being satisfactory. Moreover, all reform measures under the RSF arrangement for this review with a focus on climate-financing architecture were implemented. The completion of the reviews allows for an immediate disbursement of about US$758 million under the multi-year Fund arrangements.
Côte d'Ivoire's resilient economy has consolidated its role as an anchor of stability in the region against a still difficult global backdrop. Amid a recovery in agricultural production, favorable terms of trade and rising household incomes growth is expected to pick up in the near term. The medium-term outlook also remains favorable as economic fundamentals strengthen further and the hydrocarbon and mining sectors add to broad-based growth. Risks are broadly balanced. For 2025, growth is projected to be 6.3 percent, while average inflation is expected to return to within the 1 to 3 percent WAEMU target range. The 2025 current account deficit is projected to narrow to 3.6 percent of GDP, and the fiscal deficit is expected to meet the WAEMU deficit ceiling of 3 percent of GDP.
The authorities remain firmly committed to boosting tax revenue in the medium term, and to implementing the medium-term revenue strategy (MTRS) approved in May 2024. Sustained effort is expected by the authorities to increase tax revenue to GDP by 0.5 percent of GDP, each year through 2026 and reach approximately 20 percent of GDP over the medium-term through self-sustaining tax policy and tax administration reforms.
Important structural reforms continue to focus on improving the business climate and increasing the involvement of the private sector in the country's development. To this end, enhancements in the transparency and accountability of public enterprises, further strengthening governance and financial integrity (particularly the AML/CFT framework), along with investment in human capital, broader financial inclusion, and climate resilience, to support higher productivity growth will be instrumental.
Following the Executive Board discussion, Mr. Okamura, Acting Chair and Deputy Managing Director, made the following statement:
"Côte d'Ivoire's performance under the Fund-supported programs has been strong, reflecting the authorities' commitment to entrenching macroeconomic stability. Sustained reform efforts will help safeguard fiscal and debt sustainability and consolidate the country's role as an anchor of regional stability.
"Continued fiscal consolidation envisaged in the 2025 budget will be underpinned by high-quality and permanent tax policy measures, as well as tax and customs administration reforms. These measures will support bringing the fiscal deficit to 3 percent of GDP by 2025, in line with the WAEMU ceiling, and help reduce the country's debt sustainability risks.
"Sustaining domestic revenue mobilization over the medium-term remains a priority to generate the fiscal space needed to finance social and development spending and support a deeper economic transformation toward upper middle-income status. To this end, implementation of the Medium-term Revenue Mobilization Strategy (MTRS) will continue to require significant engagement with stakeholders to ensure buy-in for the needed overhaul of the tax system and the streamlining of VAT tax exemptions and other tax expenditures.
"Preserving fiscal space will be aided by the authorities' commitments to enhance the coverage, transparency, and management of public finances. The authorities' continued active debt management remains critical in safeguarding debt sustainability. Sustaining structural reform momentum and continuous improvements in safeguarding financial integrity and governance are important for unlocking the private sector's potential.
"Addressing identified AML/CFT framework deficiencies, and showcasing an implementation track-record on AML/CFT is critical. Further investments in human capital development, especially amongst youth and women, along with the reduction of informality, will make growth more inclusive. Continuing efforts to strengthen resilience to climate shocks will also be important for a sustainable transformation of Côte d'Ivoire's economy."
Table 1. Côte d'Ivoire: Selected Economic and Financial Indicators, 2022–26
