IMF Praises Ivory Coast’s ‘Stronger Than Expected’ Economic Performance

 Onyedimmakachukwu Commodities & Currencies, Investing

inShare6

VENTURES AFRICA – The International Monetary Fund has described Ivory Coast’s macroeconomic performance in the first half of 2014 as solid, praising its strong strong economic activity, particularly in the construction, public work and service sectors. Inflation remained subdued.
IMF said Ivory Coast’s macroeconomic prospects for the remainder of 2014 and 2015 are encouraging. Real Gross Domestic Product (GDP) growth is expected to reach about 8 percent in 2014 and 2015. The draft 2015 budget aims at
supporting near and medium-term growth through a further expansion of public investment.
The IMF had held discussions on the sixth review of Côte d’Ivoire’s economic and financial program supported by an arrangement under the Extended Credit Facility (ECF). An IMF team led by Michel Lazare had visited Abidjan for the discussions which were held from September 17 to October 2, 2014.
According to the team’s analysis, Ivory Coast’s “Inflation remained subdued. Budget execution was also satisfactory with stronger-than-expected revenue performance and expenditures contained to budgeted amounts. As a result, the basic primary balance recorded a small surplus compared to a deficit projected under the program. All performance criteria and indicative targets for end-June 2014 under the ECF arrangement were met”.
In July, Ivory Coast, spelt the French way as Côte d’Ivoire, successfully issued a Eurobond, raising $750 million to help finance its budget, extend average debt maturities and repay some domestic debt.
“Progress has been made in accelerating public procurement processes with a view to reducing sole-source contracting, the IMF said, adding that the mission welcomes the authorities’ plans to set up a single Treasury account and further restructure public banks.
The mission also said it welcomed the authorities’ intentions to reinforce the financial position of the energy sector and clear the stock of domestic arrears. However the fund added that discussions will continue in coming weeks on the financial modalities needed to achieve these objectives which are essential to keep public finances on a firm footing in the years ahead.
Ivory Coast has rode on the back of stability since the 2001 political turmoil to achieve a meteoric economic growth that has it performing better than the government even expected. Yesterday, British Miner Amara Mining disclosed that it will invest $400 million over the next two years to build a mine in the country’s Ivory Coasts’s largest Gold Deposit.
French West Africa’s largest economy and world leading exporter of Cocoa, Ivory Coast is seeking to grow its long-neglected mining sector in a bid to diversify its budding economy.