IMF staff, Côte d’Ivoire reach deal on resilience, sustainability support
Abidjan, Côte d’Ivoire (PANA) - The Ivorian authorities and IMF staff reached a staff level agreement on a reform programme to fight climate change supported by the Resilience and Sustainability Facility (RSF) for US$ 1.3 billion.
According to the IMF, Côte d’Ivoire is exposed and vulnerable to climate change. Rising temperatures, rainfall disruptions, flooding, rising sea levels and coastal erosion are major challenges and represent recurring risks for resilient, sustainable and inclusive economic growsupporth.
The RSF will support actions of the Ivorian authorities to strengthen adaptation and mitigation, particularly in the areas of agriculture, transport, infrastructure, and public financial management.
The staff level agreement will be subject to final approval by the IMF Executive Board.
A virtual IMF mission led by Mr. Olaf Unteroberdoerster was held from 23 January to 14 February, 2024, to discuss a new climate reform programme.
At the end of the mission, Mr. Unteroberdoerster said in a statement that discussions for a new financial arrangement to support the authorities’ climate adaptation and mitigation reforms agenda had been very productive.
“I am pleased to announce that we have reached a staff level agreement on a package of reform measures for 2024-26 in line with the RSF programme objectives for an amount of US$ 1.3 billion. The RSF programme request will be submitted for approval to the IMF Executive Board in the coming weeks,” he said.
According to the official, the RSF programme reviews will coincide with reviews of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in May 2023 to support the government's economic programme over 2023-2026 for macroeconomic stability and the structural economic transformation to transition Côte d’Ivoire towards an upper middle-income country.
“Côte d'Ivoire and its economy are exposed and vulnerable to climate change, especially in the agricultural sector and other economic activity sectors in coastal areas. At the same time, greenhouse gas emissions and pollution in urban areas are increasing and pose additional challenges. Based on these findings, the authorities are committed to reducing the harmful effects of climate change and have implemented several government initiatives,” Mr. Unteroberdoerster stated.
He explained that the discussions focused on the importance of mitigating climate change, by strengthening adaptation and mitigation efforts, particularly in the areas of agriculture, transport, and infrastructure, and public financial management.
The RSF programme will aim to improve resilience to climate change by implementing a set of ambitious reform measures to address the identified challenges, which are the integration of climate into public financial management; strengthening the governance of climate policies; reducing exposure and vulnerability of the agricultural sector; increasing green and sustainable financing; reducing vulnerability to flooding and coastal erosion; and reducing greenhouse gas emissions.
Technical assistance from partners including the IMF, the World Bank Group, the African Development Bank, the European Union, and bilateral partners should continue to play an important role in meeting these challenges, Mr. Unteroberdoerster added.
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