IMF reaches staff level agreement with Côte d’Ivoire

Abidjan, Côte d’Ivoire (PANA) - An International Monetary Fund (IMF) team led by Ms. Geneviève Verdier met with the Ivorian authorities from 22-30 April to assess progress under their EFF/ECF and RSF-supported programmes. 

The mission is part of the sixth and final review under the EFF/ECF arrangements approved by the IMF Executive Board on 24 May, 2023, for a total amount of SDR 2.6 billion (about US$3.5 billion). 

It also takes place in the context of the fifth and final review under the RSF arrangement, which was concluded on 15 March, 2024, in the amount of SDR 975.6 million (about US$1.3 billion).

In a statement at the end of the mission, Ms. Verdier stated that performance under the EFF/ECF and RSF programmes has been “remarkable”. 

She said following in-depth and constructive discussions with the Ivorian authorities, a staff-level agreement was reached on both the evaluation of programme performance and the short- and medium-term economic policy objectives to preserve macroeconomic gains. 

Thanks to enhanced revenue collection and controls on public spending, the fiscal deficit was reduced to 3 percent of GDP in 2025, in line with the West African Economic and Monetary Union (WAEMU) convergence criterion. 

The statement said the authorities have also made significant progress in implementing structural reforms, notably the consolidation of the Treasury Single Account, which contributes to improving cash management, as well as strengthening the governance of public entities to reduce money laundering and terrorism financing risks.

Regarding the RSF, Ms. Verdier said discussions focused on the implementation of the reforms planned for this review, in particular the introduction of a climate hazard insurance system for the cotton sector, the reduction of greenhouse gas emissions and the development of a carbon taxation strategy.

On the outlook, she said the war in the Middle East and spillovers from shifts in trade policies represent a major exogenous shock, with potentially long-lasting increases in international and several commodity prices, slowing global demand and a further tightening of financial conditions.

“Notwithstanding an uncertain global environment, the Ivoirian economy remains resilient.”

Growth is projected to be 6 percent in 2026 from 6.5 percent in 2025, reflecting weaker demand and investment due to uncertainty. 

However, inflation is expected to accelerate to 3.3 percent in 2026 from 0.1 percent in 2025 due to the combined effects of higher international prices for oil and fertilizers, as well as supply chain disruptions. 

The current account deficit is also expected to widen to 2.2 percent of GDP in 2026 from 0.7 percent in 2025, due to the war in the Middle East and worsening terms of trade. 

Thanks to strong export performance, particularly of crude oil and gold and broadened access to international financial markets, regional official foreign exchange reserves continued strengthening to about 8 months of imports at end-March 2026.

“Depending on the evolution of the conflict, the budget deficit could widen beyond 3 percent of GDP. In this context, introducing measures to support tax revenues, as well as implementing temporary and targeted measures to protect vulnerable populations will be essential to contain its impact,” Ms. Verdier said. 

“The authorities stand ready to take all necessary measures to preserve the gains of the past years and reduce the fiscal deficit to the WAEMU norm of 3 percent of GDP by 2028,” she added. 

Ms. Verdier said the medium-term outlook remains “broadly favorable” despite a difficult international context marked by geopolitical tensions. 

Growth is expected to average 6.7 percent, while inflation is expected to return to below the regional target of 3 percent. 

"Côte d’Ivoire remains at a moderate risk of debt distress. Nevertheless, global policy uncertainty, geopolitical tensions, regional insecurity, and Côte d'Ivoire's high vulnerability to climate shocks call for enhanced vigilance on the part of the authorities," Ms. Verdier said.

-0- PANA MA 1May2026