Côte d'Ivoire: AfDB releases 28.9 billion FCFA in support of economic governance, growth in Côte d'Ivoire

Abidjan, Cote d'Ivoire (PANA) - The Executive Board of the African Development Bank (AfDB) has approved an African Development Fund (ADF) loan of 36.232 million Units of Account (UA), or CFAF 28.9 billion Côte d'Ivoire to enable the west African country to finance its Economic Governance and Growth Support Program (GAAPP).

The program aims to enhance efficiency and transparency in public finance management and to consolidate the positive trend of fragility indicators, while maintaining strong, sustained and inclusive growth.

According to the media outlet of the AfDB, the two operational components of the program are: (i) support for the effectiveness and transparency of public financial management and (ii) support for the diversification of sources of growth.

It said that over the past five years, Côte d'Ivoire has achieved remarkable economic performance with an average annual growth rate of more than 9%. In addition, significant progress has been made in improving the business environment, as evidenced by the steady rise in the country's rating in the World Bank's "Doing Business" ranking.

However, major challenges must be met to enable the country to achieve its economic and social development goals, the AfDB said, indicating that this includes achieving a more equitable distribution of sources of growth in order to reduce significantly the incidence of poverty that remains very high in the country, strengthen governance of the energy and Coffee and cocoa, to develop value chains to improve the level of processing of local products, to clean up the public banking sector and to reform rural land.

The main expected results of the Program are: (i) protection of expenditure for the most vulnerable sectors (education, health in particular) by fixing a level of implementation in the revised Financial Law 2017; (Ii) the establishment of an electronic procurement system in four pilot ministries; (Iii) the adoption and implementation of a plan for the clearance of arrears owed by the central administration to the Ivorian Electricity Company (IEC); (Iv) implementation of the Quality approach within the Public Procurement Directorate (DMP) and (v) reducing the time required to start a business from 4 days currently to 3 days in 2018. It (Vi) the reduction in technical and commercial losses in the distribution of electric power from 22% in 2016 to less than 20% in 2019; (Vii) strengthening the rural land tenure framework, which will result in an increase of more than 50% in the issuance of land certificates and (viii) improving the governance of the cocoa sector in order to guarantee a stable income for producers .

"The double tax shock (falling budgetary revenues and rising social demand) could jeopardize the sustainability of economic and social gains over the last five years, a situation likely to be a threat to macroeconomic stability or even stability Of the country. This program is the Bank's response to the Government's efforts to safeguard the growth momentum of recent years, "said Abdoulaye Coulibaly, Acting Director of the Department of Governance and Economic and Financial Reforms.

The main donors supporting public finance reforms effectively coordinate and co-operate in economic and financial governance within the Public Finance Management Group. The ECMAP is also supported by a coordinated program of reform measures for technical and financial partners.

The areas of intervention of the ECMAP are in perfect alignment with those supported by other donors such as the World Bank and the European Union (EU) that provide budget support. Thus, certain preliminary measures are decided by mutual agreement.
-0- PANA VAO 18July2018

18 july 2017 14:48:53

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