20231211-IMF-Cote_d_39_Ivoire_Poverty_Reduction_and_Growth_Strategy_38页_6mb

CÔTE D'IVOIRE: POVERTY REDUCTION AND GROWTH STRATEGY SUMMARY

Core Content

The IMF Country Report No. 23/407 provides an overview of Côte d'Ivoire's Poverty Reduction and Growth Strategy (PRGS), highlighting the country's economic progress, structural reforms, and future development plans. The report outlines the implementation of the 2021-2025 National Development Plan (NDP), which aims to continue the transformational growth and ensure inclusive and sustainable development.

Main Points

Economic Performance

• Côte d'Ivoire has implemented two previous national development plans (2012–2015 and 2016–2020), which led to average annual growth of 8% between 2012 and 2019, placing it among the fastest-growing economies in Africa and the world.
• Despite the global and regional impacts of the COVID-19 pandemic, the economy recorded a positive growth of 1.7% in 2020, while the global economy contracted by 3%.
• Per capita income increased by 13.6% between 2016 and 2019, reaching above $1700 at constant prices.
• Real GDP growth in 2021 was 7.4%, and in 2023 was 6.7%, with real per capita income at $2,520.8 in 2023, up by 13.4% from 2020.
• Expected average growth rate for 2021–2025 is 7.65%, driven by the secondary and tertiary sectors.

Development Goals

• The 2021–2025 NDP is structured around six pillars:
  1. Acceleration of structural transformation through industrialization and cluster development.
  2. Development of human capital and promotion of employment.
  3. Strengthening of the private sector and investment.
  4. Promotion of inclusion, national solidarity, and social action.
  5. Balanced regional development, environmental preservation, and climate change mitigation.
  6. Modernization of governance, the state, and cultural transformation.

Social Development

• The Government Social Program (PSGouv2) is being implemented to address fragility in the North-East, improve access to education, water, electricity, and healthcare, and support social protection and youth employment.
• Poverty rate has decreased by over 16 percentage points since 2011, with 2.7 million people lifted out of poverty.
• Per capita income is expected to reach $2,415 in 2025 and $3,444 in 2030, doubling from 2020 levels.
• Life expectancy is projected to increase by 10 years by 2030.

Structural Reforms

• The government is committed to fiscal consolidation, aiming to reduce the budget deficit from 6.8% of GDP in 2022 to 5.2% in 2023, with a target of 3% by 2025.
• Inflation is expected to be contained at 4.8% in 2023, following an average of 4.7% in 2021–2022.
• The current account deficit is expected to be 5.8% of GDP in 2023, down from 6.9% in 2022, due to resurgent trade surplus.
• The risk of debt distress remains moderate.

Industrialization and Inclusiveness

• The NDP aims to accelerate industrialization through seven priority industrial clusters, including agro-industry, chemicals, building materials, pharmacy, textile, packaging, and spare parts.
• The government is focusing on increasing productivity, promoting decent jobs, especially for youth and women, and enhancing the business climate.
• Private sector development is central to the strategy, with reforms to improve public finances and tax efficiency, while maintaining macroeconomic stability.

Climate and Sustainability

• Côte d'Ivoire is committed to a green trajectory, with a goal of achieving carbon neutrality by 2030.
• The country is implementing climate-resilient measures in water, agriculture, livestock, forestry, and health sectors.
• A Resilience and Sustainability Facility will support balance of payments financing needs linked to climate change impacts.

Governance and Social Cohesion

• The government is focused on strengthening governance, modernizing the state, and promoting cultural transformation.
• The 2030 Strategic Plan aims to build "An United Côte d'Ivoire", with a vision of inclusive and sustainable growth.
• The 2040 Vision envisions Côte d'Ivoire as an industrial power, united in cultural diversity, and democratic and open to the world.

Institutional and Regional Integration

• Côte d'Ivoire is playing a leading role in regional integration, particularly within ECOWAS, UEMOA, and the African Union.
• The country is actively participating in major infrastructure projects and the preparation of the common currency "Eco" for 2027.
• It is also a key player in the African Continental Free Trade Area (AfCFTA).

Key Information

• The 2021–2025 NDP has an overall cost of FCFA 59,000 billion, expected to be funded largely by the private sector.
• The Government Youth Program (PJ-Gouv) was launched in 2023, aiming to address youth concerns and enhance employability.
• Infrastructure improvements have been significant, including road development, healthcare expansion, and electrification.
• Education access has improved, with primary net enrollment reaching 92.1% and lower secondary at 50% by 2020.
• Access to safe drinking water has increased to 90% of the population.
• The business environment has improved, moving from 142nd out of 183 countries in 2016 to 110th out of 190 countries in 2020 in the World Bank's Doing Business rankings.
• The digital economy is a priority, with 3G coverage at 94.62% and 4G at 59.99% in 2020.
• The government is committed to achieving gender equality and improving the quality of life for all Ivorians.

Conclusion

The 2021–2025 NDP represents a continuation of Côte d'Ivoire's economic transformation and poverty reduction efforts, with a focus on sustainable growth, inclusiveness, and resilience. The strategy is built on six pillars that cover industrialization, human capital development, private sector growth, social inclusion, environmental protection, and good governance. The government remains confident in the successful implementation of the plan and is committed to collaborating with all stakeholders to achieve its goals.