IMF Reaches Staff-Level Deal With Ivory Coast, Flags Steady Growth Outlook

Mintesinot Niggusie

Ivory Coast's economy is expected to grow by 6 percent in 2026 as the International Monetary Fund confirmed a staff-level agreement with the country following a review of its reform programmes, citing continued resilience despite global headwinds.

The agreement covers the country's arrangements under the Extended Fund Facility, Extended Credit Facility and the Resilience and Sustainability Facility, following discussions led by IMF mission chief Geneviève Verdier with government authorities and other stakeholders.

Fiscal performance has improved, with the budget deficit narrowing to 3 percent of gross domestic product in 2025, meeting the convergence criteria set by the West African Economic and Monetary Union. The IMF attributed the adjustment to stronger domestic revenue mobilisation and tighter expenditure controls, while cautioning that the deficit could exceed the threshold if external conditions deteriorate.

The fund said structural reforms are advancing, including efforts to consolidate the Treasury Single Account to improve public cash management and strengthen governance systems aimed at reducing financial crime risks. Measures under the climate-focused programme include initiatives to cut emissions and develop a carbon taxation framework.

Despite the positive assessment, the external position is expected to weaken. The current account deficit is projected to widen to 2.2 percent of GDP in 2026 from 0.7 percent a year earlier, reflecting less favourable trade conditions. Inflation is also forecast to rise to 3.3 percent from 0.1 percent, driven by higher oil and fertiliser prices and supply disruptions.

At the same time, foreign exchange buffers have strengthened, supported by crude oil and gold exports and improved access to international capital markets. Reserves stood at the equivalent of about eight months of import cover as of March.

Over the medium term, the government plans to increase tax revenue to 18 percent of GDP by broadening the tax base and improving compliance, with the aim of financing infrastructure and social spending under its national development strategy.

The IMF said growth averaged over the medium term is expected to reach 6.7 percent, with inflation stabilising below regional targets. It added that the country remains at a moderate risk of debt distress.