IMF reaches staff level deal with Côte d’Ivoire on EFF/ECF arrangements
Abidjan, Côte d’Ivoire (PANA) - Ivorian authorities and staff of the International Monetary Fund (IMF) have reached a staff-level agreement on the fifth review under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, as well as the fourth review under the Resilience and Sustainability Fund (RSF).
According to the Fund, the authorities have made significant progress toward key economic objectives, including eliminating macroeconomic imbalances, rebuilding regional reserves, promoting economic transformation for upper-middle income status, and strengthening climate resilience through adaptation and mitigation reforms.
Completion of the reviews by the IMF Executive Board will lead to two disbursements totalling US$843.9 million, comprising about US$509.5 million under the EFF/ECF arrangements and US$334.4 million under the RSF.
An IMF team, led by Mr. Olaf Unteroberdoerster, on Tuesday completed discussions with the Ivoirian authorities after assessing progress on the country's economic and financial programme supported by the EFF and ECF, and the climate reform programme supported by the RSF.
The IMF Executive Board approved the EFF/ECF arrangement for US$3.5 billion on 24 May, 2023, and the RSF arrangement amounting to US$1.3 billion on 15 March, 2024. Upon conclusion of the mission, Mr. Unteroberdoerster issued the following statement:
“Performance of the authorities’ programmes has been strong. Following constructive discussions with the Ivoirian authorities, we have reached a staff-level agreement on future policy measures and structural reforms aligned with the objectives of both programs.
“On the EFF/ECF, continued steadfast revenue mobilisation and expenditure control have supported sizable fiscal consolidation. Since the program’s launch in 2023, the fiscal deficit is on track to meet the West African Economic and Monetary Union (WAEMU) deficit ceiling of 3 percent of GDP for the first time this year.
“The mission welcomes the authorities’ commitment to maintain a prudent fiscal stance through 2026. While the WAEMU fiscal deficit ceiling remains a key anchor for fiscal and debt sustainability, further progress under the medium-term revenue mobilization strategy, including measures to broaden the tax base and strengthen compliance, is expected to raise tax revenue to 15.7 percent of GDP in 2026, up from 15 percent of GDP in 2025.”
According to the IMF official, this additional fiscal space will be critical to support growing spending in priority social sectors and infrastructure, in line with the authorities’ ambitious national development plan.
On the RSF, he said that discussions focused on the implementation of reform measures due for this review, including climate budget tagging, assessing climate-related fiscal risk, integrating climate considerations into public investment management, and operationalizing energy consumption audit system.
Côte d’Ivoire’s economy remains resilient, with growth expected to pick up to 6.3 percent in 2025, driven primarily by the services sector, hydrocarbons, and mining. Inflation has fallen faster than expected and is expected to average around 1 percent this year.
Favourable terms of trade, including higher international cocoa prices and lower imported international prices for key food supplies such as rice and wheat, are expected to contribute to a further narrowing of the current account deficit to about 1½ percent of GDP in 2025.
Combined with fiscal consolidation and successful efforts to broaden access to international financial markets, Côte d’Ivoire’s strong trade performance is reinforcing its role as an anchor of stability for the region. This momentum is further supporting the buildup of regional official reserves, which reached about 5½ months of imports at end-August.
The IMF mission indicated that the medium-term outlook remains generally favourable. Growth is projected to average 6.7 percent, while inflation is expected to remain below 3 percent, within the regional target range.
Despite elevated global policy uncertainty, geopolitical tensions, and Côte d’Ivoire’s vulnerability to weather-related shocks, risks to the economic outlook are assessed to be broadly balanced.
-0- PANA AR/MA 1Oct2025
