Steadfast Economic Growth Amidst Global Uncertainties
Ivory Coast’s economy continues to dazzle with its thriving performance as highlighted in the latest report by the African Development Bank (AfDB). The West African powerhouse is projected to maintain a robust real GDP growth rate of 6.1% in 2024, with forecasts predicting stability around 6.3% for 2025-2026. This news was unveiled during a thought-provoking seminar in Abidjan, focusing on ‘Harnessing Ivory Coast’s Capital for Sustainable Development.’ Kadio Lionel Kouao, an AfDB country economist, articulately credited the nation’s economic dynamism to strategic fiscal measures and investments.
Inflation Eases as Fiscal Deficits Shrink
The inflation rate is estimated to fall to 3.5% in 2024 from 4.4% in 2023, a promising sign of economic stabilization. Concurrently, the fiscal deficit has narrowed to 4% of GDP compared to the previous year’s 5.2%, showcasing the government’s efforts to realign fiscal policies efficiently. However, despite these advancements, Kouao underscored the persistent issue of insufficient resource mobilization which dims the overall financial potential.
The Tax Conundrum: Push for Better Revenue Generation
Despite the optimistic outlook, challenges abound, particularly in tax collection. The tax pressure rate has reached only 13.8% of GDP, falling short of the 20% mark set by regional standards, a gap attributed to the pervasive influence of the informal sector and underutilized fiscal levers like property taxes and e-commerce. The AfDB report urges the nation to better exploit these streams to bolster revenue.
Investments in Human and Natural Capital: The Way Forward
Ivory Coast is encouraged to allocate more resources towards human capital, with a particular focus on health, education, and harmonizing skills with market demands. Despite possessing significant renewable natural capital—95% of which remains unexplored due to ineffective environmental accounting—there’s a strong call for improved governance. Fighting corruption, ensuring land security, and boosting the business climate are deemed vital for attracting sustainable investments, as per the report.
Strategic Goals and International Support
To achieve sustainable development objectives by 2030, Ivory Coast must mobilize $3.2 billion annually, equating to around 3.5% of its GDP. The Ministry of Economy, spearheaded by Marcelin Cissé, emphasizes cultivating a stable socio-economic environment and increasing the rate of bancarization, aiming for inclusivity in financial services. Meanwhile, Joseph Ribeiro, Deputy Director-General for West Africa at the AfDB, reiterates the bank’s crucial role in Ivory Coast, highlighting its extensive investment in the rural sector and advocating for a digitized system to boost youth employment.
A Collective Endeavor for Economic Resilience
The unveiling of the AfDB country report was a grand affair, attended by political decision-makers, economists, technical and financial partners, and leaders from the private sector. Their participation underscores a shared commitment to addressing economic challenges head-on while capitalizing on growth opportunities to ensure Ivory Coast’s continued ascent on the economic stage.
