AfDB Approves €30.5M Loan to Boost Côte d’Ivoire’s Economic Growth and Governance

Focus on Tax Reforms, Sustainable Development, and Energy Transition in National Development Plan.

The African Development Bank (AfDB) Board of Directors has approved a €30.5 million loan to Côte d’Ivoire to implement the first phase of an Economic Governance and Growth Support Programme. This initiative is part of the country's National Development Plan (2021-2025), aimed at fostering sustainable economic growth through enhanced financial governance and private sector competitiveness.

The Economic Governance and Growth Support Programme aims to address key challenges in Côte d’Ivoire’s economic landscape by focusing on:

Tax Revenue Mobilization: Supporting the Medium-Term Revenue Mobilization Strategy (SMRT), streamlining tax exemptions in the Investment Code, and implementing electronic billing to enhance tax revenue collection efficiency.

Debt Management: Adoption of a national debt policy and a medium-term debt management strategy for better fiscal control and transparency.

Sustainable Development Goals: Promoting inclusive governance in public finances, advancing environmental sustainability, and reducing carbon emissions in transport and energy sectors.

Joseph Ribeiro, Deputy Director General of the African Development Bank for West Africa, highlighted the significance of the programme, stating:

“This operation aims to structurally transform Côte d’Ivoire’s economy by boosting tax revenue and promoting sustainable governance. Additionally, it will accelerate the country's energy transition and reduce emissions in key sectors like transport and energy.”

Sectoral Focus and Key Initiatives

Transport Sector

Classification and registration of the national road network.

Decentralization of road maintenance to empower local authorities, ensuring better governance and infrastructure management.

Energy Sector

Enforcing the Electricity Code and adopting the Bioenergy Code to encourage renewable energy development.

Conducting public sector energy audits to improve efficiency and reduce waste.

Accelerating Côte d’Ivoire's transition towards cleaner energy sources.

Impact and Broader Context

The programme is expected to significantly enhance the country’s fiscal discipline, promote sustainable development, and ensure inclusive governance across critical sectors. As of October 31, 2024, the African Development Bank's active portfolio in Côte d’Ivoire included 39 operations with a total commitment of $3.05 billion, underlining the bank’s dedication to fostering long-term growth in the region.

Additional Focus Areas

The AfDB also emphasizes creating an enabling environment for private sector investment, with targeted reforms designed to make Côte d’Ivoire more competitive in global markets. These include:

Digitalization of government services to enhance transparency and efficiency.

Strengthening public-private partnerships for infrastructure development.

Supporting small and medium-sized enterprises (SMEs) to drive innovation and job creation.

The €30.5 million loan represents a crucial step in Côte d’Ivoire's journey toward achieving its 2021-2025 National Development Plan goals. With a focus on governance, sustainability, and economic transformation, the initiative underscores the African Development Bank’s commitment to empowering African nations to achieve inclusive and sustainable growth.