ABIDJAN, 08 December 2023 – The World Bank announced today a significant operation of $300 million for Côte d’Ivoire to accelerate the country’s economic growth. The reforms supported by this budget support financing, the second in a series of three, aligns with Côte d'Ivoire's National Development Plan 2021-2025 and is designed to champion key reforms that will help the country achieve its medium-term goal of becoming an upper middle-income economy by 2030.
Despite being one of the fastest-growing economies in sub-Saharan Africa before COVID-19, Côte d’Ivoire faces persistent growth challenges, further exacerbated by recent global crises. Limited competition in key sectors, such as transport, financial services, and telecom, hinders private sector investment. Additionally, there is a need to improve service delivery and build human capital, reduce spatial disparities, and address environmental concerns, including coastal erosion and deforestation.
The current operation, in the short term, will also provide essential support to maintain fiscal and debt sustainability. This comes at a critical time as the country continues its fiscal consolidation by spending more efficiently and pursues ambitious reforms to improve domestic revenue mobilization.
The Second Investment for Growth financing prioritizes three key reform areas. The first pillar focuses on fostering competition in critical sectors and boosting domestic revenue mobilization. The anticipated reforms target improvements in sectoral competition policies and regulatory frameworks, particularly in network sectors. The second pillar focuses on expanding equitable access to health and education services, improving the quality of basic education, addressing skills mismatches in labor markets, and advocating for inclusive health insurance. The third pillar concentrates on promoting sustainable natural resource utilization, encompassing sustainable cocoa production and forest conservation while reinforcing environmental regulatory frameworks.
“It is crucial for Cote d’Ivoire to continue its path to inclusive growth as it waves against multiple layers of shocks. To that effect, the reforms program supported by this operation is right on spot to accelerate productivity growth and sustain economic growth, including improving public service delivery in health and education, protecting its natural resources, and creating the environment for thriving public and private investments”, emphasized Marie-Chantal Uwanyiligira, World Bank Country Director for Cote d’Ivoire, Benin, Guinea, and Togo.
This operation is aligned with the World Bank's priorities in Côte d'Ivoire, as identified in the Systematic Country Diagnostic update. It supports improved human capital, reduced spatial disparities, and strengthened resilience, as well as private sector-led growth and job creation. It is also in line with the findings of the Country’s Climate and Development Report, emphasizing the importance of sustainable development and climate resilience.
