Overview

Country Overview

Côte d'Ivoire's economic performance has been impressive over the past four years with robust GDP growth that resulted in a decline in poverty. For the 2016-2020 period, the Government adopted a new National Development Plan (NDP) designed to transform Côte d'Ivoire into a middle-income economy by 2020 and substantially reduce the poverty rate. In an April 2016 meeting of the consultative group formed to fund the NDP, donors pledged to provide assistance in the amount of US$15.4 billion in grants and loans. The World Bank Group committed to doubling its support over the next four years to approximately US$5 billion.

Political Context

Political stability was restored with the smooth re-election of President Ouattara in October 2015 for a second five-year term, and with a referendum, held in October 2016, which established the country's Third Republic. In December 2016, Ivorians cast their votes peacefully to elect deputies to the National Assembly. In early 2017, however, social demands and mutinies led the Government to enter discussions with the main trade unions and the mutineers. In addition, Simone Gbagbo, the country's former first lady, was acquitted of "crime against humanity" and "war crime" charges that had been brought against her.

 

Economic Overview

The economy of Côte d'Ivoire continues to prosper. Most of the country's economic and financial indicators are positive. A minor decline in the growth rate in 2016 (to slightly under 8 percent) has been due to a contraction of the agricultural sector as a result of unfavorable weather conditions. The other sectors, including telecommunications, finance, transport, energy, and trade, performed well. Prospects for the next three years are bright, with a growth rate expected to converge toward 7.5 percent in 2019. 

Social Context

In order to diversify its economy successfully, Côte d'Ivoire must build its human capital so as to meet labor market needs more effectively. Indeed, modern product processing methods and services require skills that are still scarce among local workers.

 

The key social challenge will be to reduce inequalities significantly by keeping the country's economy on a strong growth path. In 2014, Côte d'Ivoire ranked 172nd among 188 countries on the United Nations Human Development Index (HDI). Between 1985 and 2011, the depth and severity of poverty increased considerably, as the poverty rate rose from approximately 10 percent to 51 percent. However, the findings of the last Living Standards Monitoring Survey carried out by the World Bank indicate that poverty decreased to 46 percent in 2015 as a result of the recent economic recovery.

Last Updated: Apr 17, 2017

World Bank Group Engagement in Côte d'Ivoire

 

The new Country Partnership Framework (CPF) for Côte d'Ivoire was approved by the World Bank Group on September 29, 2015. The CPF covers a four-year period and will support Côte d'Ivoire in creating a competitive, equitable, and inclusive economy. Overall, the World Bank and the International Finance Corporation (IFC) have each planned a US$1 billion lending and investment program, and the Multilateral Investment Guarantee Agency (MIGA) is open to analyzing new guarantees.

 

The CPF pursues mainly the following two goals: (i) creating better quality jobs, particularly in agriculture and agribusiness, through sustainable growth led by the private sector; and (ii) building human capital to generate inclusive growth and improve the quality of social expenditures so as to enhance access to basic services. In order to attain those goals, the following five prerequisites must be met:

•     Social and political stability;

•     Macroeconomic stability and public debt sustainability;

•     Land reform;

•     The development of an inclusive financial sector;

•     Improved governance.

 

As of March 31, 2017, the World Bank Group was financing 16 active projects in Côte d'Ivoire. Taking into account the projects still in preparation, financial commitments exceed US$2.3 billion. The Group recently approved the largest loan ever granted to Côte d'Ivoire (US$325 million), for the purpose of expanding access to power, particularly in the rural areas.

 

International Finance Corporation (IFC)

 

Of the US$1 billion invested in Côte d'Ivoire by IFC over the past four years, one half has consisted in equity financing. In particular, IFC provided guarantees for the Azito III and CIPREL IV power plants, which increased the country's power generation capacity by 370 megawatts. Currently, IFC and its partners finance almost 50 percent of the energy produced in Côte d'Ivoire. In the financial sector, IFC, through the Global Trade Finance Program (GTFP), helps banks increase their support for small and medium enterprises, cooperatives, farmers, and smallholders.

 

Multilateral Investment Guarantee Agency (MIGA)

 

While Côte d'Ivoire was still regarded as a high risk country, MIGA helped attract private investments in the energy sector. Since the end of the post-election crisis in 2011, a total of US$2 billion has thus been invested, particularly in the conversion of the simple-cycle power plant at Azito into a combined-cycle plant, thereby making it possible to double its power generation capacity without increasing gas consumption.

 

MIGA also covers a loan to finance the extension of the FOXTROT International LDC gas- and oil-production platform. In Abidjan, the Agency has provided guarantees for the Henri Konan Bédié toll bridge and the Azalaï Hotel. MIGA plans to expand its business portfolio over the next four years.

Last Updated: Apr 17, 2017

The World Bank Group's strategy aims to increase investments and growth as well as improve the population's standard of living, in particular through the projects described below.

 

The West Africa Agricultural Productivity Program (WAAPP)

 

Launched in 2011, this project has enabled thousands of rural women to improve their standard of living. In addition to agricultural produce processing equipment, the project disseminated technologies that help increase plantain, cassava, and corn yields significantly.  Cassava varieties such as Bocou 1 and Yavo are a source of pride for many cooperatives, whose yield per hectare increased from 25 to 35 metric tons, compared to an increase from 8 to 10 metric tons using traditional cassava varieties.

 

The project's first phase, completed in 2016, allowed rural population groups, particularly in forest zones, to shift from food crops, such as plantains and cassava, to cash crops, which are financially more advantageous.

 

The Emergency Youth Employment and Skills Development Project (PEJEDEC)

 

Shortly after the post-election violence of October 2010, the World Bank and the Government of Côte d'Ivoire sought to set up a job creation program that would offer thousands of unskilled young people their first employment opportunity. Those persons were direct victims of the political unrest that had rocked the country for more than 10 years. The goal was to enable young persons seeking employment and recognition to aspire to a better future. Such considerations led to PEJEDEC in 2012, with an initial grant of US$50 million (circa CFAF 25 billion), which by June 2015 had benefited approximately 27,500 young persons. Subsequently, additional financing in the amount of US$50 million enabled the project to broaden its scope by targeting, in particular, women and rural inhabitants.

 

The Post Conflict Assistance Project (PAPC)

 

Closed on June 30, 2016 after eight years of implementation, the PAPC provided Côte d'Ivoire with solid experience in managing the needs of communities and in local governance, thereby enabling it to narrow the gap with adjacent countries, such as Burkina Faso. Through an exceptional US$60 million grant from the World Bank, the PAPC supported the Government's efforts to end the country’s protracted crisis.

 

Last Updated: Apr 17, 2017

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

Welcome