Overview

Country Overview

Côte d’Ivoire’s economic performance has been impressive over the past four years with a robust GDP growth which resulted in a decline in poverty. The government adopted a new National Development Plan (NDP) for the 2016-2020 period, to follow its previous development plan for 2012-2016, which encompasses major structural reforms to achieve a sustained private sector and inclusive growth. The NDP 2016-2020 aims at achieving an emerging economy status for Côte d'Ivoire in 2020, with a substantially reduced poverty rate. In April 2016, donors pledged to fund Côte d’Ivoire’s NDP up to $15.4 billion (in grants and credits) during a consultative group held in Paris. The World Bank Group committed to double its support for the next four years representing approximately $5 billion.

Political Context

The political situation in Côte d’Ivoire has evolved positively in recent months. The peaceful reelection of President Alassane Ouattara at the end of October 2015 confirmed the country’s stability since the end of the political crisis in 2011. In May 2016, President Ouattara appointed a 10 member experts panel to draft a new constitution, whose changes include the amendment of a controversial nationality clause and the creation of a vice-president position. Approved by the government on September 28, 2016, the text has been criticized by members of the political opposition and civil society groups for lack of consensus throughout the process. The final document will be submitted for a national referendum by the end of October 2016, amidst fears that the turnout may be weak as opposition parties are campaigning for a boycott of the pool. It’s also expected that Ivoirians will go to the polls at the end of December 2016 to renew the current national assembly members.

Economic Overview

Côte d’Ivoire’s recent economic growth performance has been strong with unprecedented GDP growth and a controlled fiscal and external balance. There has been a robust recovery of Côte d’Ivoire’s economy in the wake of its 2010 post-elections crisis, with the average real growth rate reaching 8.5% annually between 2012 and 2015. This has been one of the highest rates in Sub-Saharan Africa. Economic growth has been driven by agriculture, services, industry, increased domestic demand, and rising investment. Despite a slowdown in agricultural production in 2016, the strong economic growth rate reported in previous years should be sustained in 2016 and 2017, as real GDP growth is projected to reach 7.8% and 8% respectively.

Social Context

The poverty incidence in Côte d’Ivoire slightly diminished from an estimated 51% in 2011 to 46% in 2015 in response to the recent rebound of economic growth. Between 1985 and 2008, the estimated share of the population living below the poverty line increased from around 10% to about 49%. During this period, the increase in the depth and severity of poverty was dramatic. The findings of the 2015 Living Standards Monitoring Survey (LSMS – ENV2015) indicate that poverty has decreased to 46% in 2015 as the economy rebounds as a result of improved conditions in both rural and urban areas. Poverty continues to be overwhelmingly rural with disparities in access to basic services, and gender disparities across wealth and urban-rural groups.

Last Updated: Nov 02, 2016

World Bank Group Engagement in Côte d’Ivoire

The Country Partnership Framework (CPF) for Côte d’Ivoire was approved by World Bank Group Board of Executive Director’s on September 29, 2015. The CPF proposes a World Bank lending program of up to $1 billion and International Finance Corporation (IFC) financing of up to $1 billion over a four-year period. It will support Côte d’Ivoire in creating a competitive and inclusive economy, while MIGA is open to analyzing new guarantees. The CPF reflects two pathways and five prerequisites identified in the Systematic Country Diagnostic (SCD) to achieve the goal of eliminating extreme poverty and boosting shared prosperity. The first entails the creation of better quality jobs through sustainable private sector-led growth in agriculture, agribusiness, and the non-agribusiness sectors. The second pathway to attain inclusive growth is to build human capital by improving the efficiency and quality of spending in education, health and social protection and improving access to basic services, while strengthening the quality of labor needed for private sector growth. The five main prerequisites are: (a) continued social and political stability; (b) macroeconomic stability and debt sustainability; (c) land market reform; (d) financial sector development and inclusiveness; and (e) improved governance.

As of August 31, 2016, Côte d’Ivoire has nine national active projects totaling $526 million.

International Finance Corporation (IFC)

Since the end of the crisis in 2011, IFC has expanded its support to the financial sector, the agribusiness sector, and the infrastructure sector. Over the past four years, IFC has invested $1 billion in Côte d’Ivoire, half of which came from its own account. IFC and its partners notably invested in the Azito III and CIPREL IV power plants. These projects increased grid capacity by a total of 370 megawatts. Currently, IFC and its partners finance almost 50% of the energy produced in Côte d’Ivoire.

Multilateral Investment Guarantee Agency (MIGA)

MIGA played an instrumental role in attracting private sector investment in a country that was still perceived as high risk. Currently, MIGA has $823 million of gross exposure in the country, covering a number of critical energy and infrastructure projects.  In 2012, MIGA issued $145 million in guarantees for the Henri Konan Bédié Bridge project. This is a high-profile and high-impact project that is expected to have significant benefits, including creating jobs, easing severe traffic congestion, and reducing fuel consumption as well as costs. In addition, MIGA is supporting the upstream expansion of the oilfield Block CI-27 through improvements to the existing Foxtrot offshore platform with system enhancements and the addition of a new platform, Marlin, to ensure a reliable and continuous supply of natural dry gas for local market consumption. MIGA is also covering the conversion and expansion of the Azito power plant and the Azalai hotel project.

Last Updated: Nov 02, 2016

The World Bank Group’s assistance strategy aims to increase investments and growth as well as improve social indicators.  Below is a snapshot of selected programs that have been able to improve lives in Côte d’Ivoire.

At the end of February 2016, under the Côte d’Ivoire Emergency Infrastructure Renewal project, more than 3.6 million people in the targeted urban areas had access to an all-season road, compared to about 3.1 before the start of the project. Thanks to the electricity household connection component of the project, 16,600 people in two targeted urban areas (Yamoussoukro and Korhogo) have access to electricity. In addition, 100,000 more people in the targeted urban areas are protected against periodic flooding, and 1.4 million people have been provided with access to rehabilitated health centers. 22,000 children have access to rehabilitated primary schools, and more than 3.5 million people are provided with access to improved water sources.

The Emergency Youth Employment and Skills Development Project (PEJEDEC), is currently being implemented.  PEJEDEC launched in 2011 with an initial $50 million IDA grant, as Côte d’Ivoire emerged from a decade of violent conflict culminating in one of the worst post-electoral crisis in Africa. An additional funding of $50 million has been approved by the Board in March 2015 to scale up successful activities. At the completion of the initial phase in June 2015, PEJEDEC created new employment opportunities for about 27,000 vulnerable youth, 35% of whom were women. It also supported professional skills training aimed at improving the employability of youth and provided them a chance to gain experience through on-the-job-training program. This also represents an opportunity for wage earning.

Last Updated: Nov 02, 2016

Donors are currently organized around 14 sectorial working groups, which include mechanisms and technical teams to ensure their functioning. These working groups collaborate well, especially during project preparation, and are complemented by cooperation around specific instruments. For example, the World Bank Group, the International Monetary Fund (IMF), and the European Union (EU) have coordinated closely in the design of policy-based operations since 2011. The World Bank Group has also coordinated closely with the European Union, the French Development Agency (AFD), and other key donors such as the Government of France in the design of investment programs in the agriculture and youth employment programs.

Last Updated: Nov 02, 2016


LENDING

Côte d’Ivoire: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments