The IMF praises Côte d'Ivoire's efforts to mobilize revenue and upgrades its credit rating.

Côte d'Ivoire has distinguished itself by becoming the first country in sub-Saharan Africa to issue eurobonds since 2022. This resource mobilization effort was confirmed by Moody's during its review in March 2024, which upgraded Côte d'Ivoire's credit rating from Ba3 in 2023 to Ba2 in 2024. This improvement is largely attributed to the government's sustained efforts in mobilizing domestic revenues.

Mr. Olaf Unteroberdoerster, head of the International Monetary Fund (IMF) mission for Côte d'Ivoire, emphasized the crucial importance of these efforts in a "Country Focus" published on January 14, 2025. He noted that increased mobilization of fiscal resources is essential for financing priority investments in social protection and infrastructure, while also providing the state with greater budgetary flexibility. Indeed, Côte d'Ivoire continues to rely on borrowing to finance its projects, both in regional and international markets.

According to Mr. Unteroberdoerster, the progress made in domestic revenue has significantly advanced the goal of reducing the budget deficit to 3% of GDP by 2025, in line with the standards of the West African Economic and Monetary Union (WAEMU). He also specified that these efforts have been crucial in preserving the country's credit rating, which remains at a "moderate" risk level regarding over-indebtedness, and in keeping Côte d'Ivoire among the highest-rated countries in sub-Saharan Africa.

In March 2024, Moody's raised Côte d'Ivoire's credit rating from Ba3 to Ba2, with a stable outlook, placing the country in second position among the best credits in sub-Saharan Africa, after Botswana and on par with South Africa. This improvement reflects the progress made in budgetary consolidation and rigorous management of fiscal deficit targets.

The Minister of Finance and Budget, Mr. Adama Coulibaly, also highlighted that the adjustments made under the program supported by the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) since 2023 have helped preserve the country's macroeconomic stability. These adjustments have facilitated Côte d'Ivoire's return to international financial markets, a first since 2022 for a sub-Saharan African country. Furthermore, Standard and Poor's recently upgraded the country's sovereign rating to BB, one of the best in Africa.

However, despite these successes, Côte d'Ivoire remains below its fiscal potential. The tax revenue-to-GDP ratio is expected to increase from 13.6% in 2023 to 14.4% in 2024, but it still falls short of the 20% target set by WAEMU. Although better ranked than the regional average in terms of tax efficiency, Côte d'Ivoire still lags behind countries such as Benin, Cape Verde, and Senegal.

As part of its national revenue mobilization strategy for the period 2024-2028, the Ivorian government has identified several areas for improvement, including an upward revision of the corporate tax, currently set at 6%, which is lower than those in Ghana, Morocco, and South Africa. It also plans to reduce the VAT compliance gap, currently at 35%, and to strengthen the contribution of property tax, which accounts for only 4.6% of national tax revenues.

Source: Ecofin Agency, MEPD Web Portal Editorial Team