IMF approves US$1.3 billion under RSF for Cote d’Ivoire
Abidjan, Côte d’Ivoire (PANA) - The International Monetary Fund (IMF) has approved a 30-month Resilience and Sustainability Facility (RSF) arrangement for Côte d’Ivoire for US$1.3 billion to support reforms undertaken to strengthen adaptation and mitigation in agriculture, transport, infrastructure, and public financial management.
Côte d’Ivoire is exposed and vulnerable to climate change. Rising temperatures, rainfall disruptions, flooding, rising sea levels and coastal erosion are major challenges and represent recurring risks for resilient, sustainable, and inclusive economic growth.
According to the IMF Executive Board, the Ivorian authorities have made strong commitments to reducing the adverse effects of climate change and have developed several government initiatives with development partners’ involvement.
Agriculture employs about half of the workforce and contributes about 17 percent of GDP and 10 percent of tax revenues. At the same time, greenhouse gas emission and pollution in urban areas are growing, albeit from a low level.
The country’s strategy is based on strong diagnostics including the World Bank Country Climate and Development Report, Climate-Public Investment Management Assessment and green public financial management technical assistance and complemented by various national plans and strategies.
Technical assistance from the IMF and development partners, including the World Bank Group, the African Development Bank, the UNDP, and bilateral partners should continue to play an important role in meeting challenges from climate change.
Following the Executive Board’s discussion, IMF Deputy Managing Director, Mr. Kenji Okamura, remarked that Côte d’Ivoire’s economic vulnerabilities to climate change are exacerbated due to the country’s heavy reliance on agriculture and the concentration of industrial and services activity in coastal areas, while greenhouse gas emissions are rising.
“Addressing the impact of climate change is a key priority for the country as reflected in its National Development Plan and multiple national strategies and plans, including the country’s leadership in organising the UNCCD COP15 in 2022 to combat desertification.
“Built on strong diagnostics, the reforms under the Resilience and Sustainability Facility (RSF) arrangement are centred around six pillars to address the key challenges related to climate change,” he said.
Mr. Okamura suggested that the implementation of reforms under the RSF arrangement should improve Côte d’Ivoire’s resilience to climate change over the medium term, replace more expensive financing, build buffers against climate shocks and related prospective balance of payment needs.
“The strong collaboration with development partners should ensure complementarity of all actors’ programmes to support the country’s reform agenda. It should also encourage the catalytical effect of the RSF to finance the large financing needs identified in the authorities’ Nationally Determined Contributions,” he emphasised.
-0- PANA AR 16Mar2024
