Ivory Coast: A Model of Innovative Governance in Sovereign Debt Management
Ivory Coast stands out for its significant advancements in financial governance, illustrated by two recent large-scale achievements. Honored with the award for Best Sovereign Debt Manager in the World, Ivory Coast has also distinguished itself through an unprecedented debt exchange operation with the World Bank. This innovative initiative, a first in Sub-Saharan Africa, has optimized its debt profile while generating substantial savings, redirected towards the educational sector, a key lever for inclusive development.
These notable performances are the result of the strategy deployed by Ivory Coast through the General Directorate of Financing (DGF), a specialized entity established in 2023. This structure, dedicated to mobilizing borrowing resources (both domestic and external) and proactively managing public debt, relies on sharp expertise and standards in line with best international practices. It embodies a commitment to modernization and efficiency in the management of public finances.
One of the flagship achievements of the DGF has been the celebrated return of Ivory Coast to international markets. In January 2024, the country raised USD 2.6 billion (over 1,500 billion CFA francs) in two tranches with respective maturities of 9 and 13 years, at a competitive average rate of 6.61%. This issuance primarily served to refinance existing eurobonds and international loans, contributing to proactive and efficient management of the debt portfolio.
This operation is part of a reform program supported by a USD 3.5 billion financing from the International Monetary Fund (IMF). This program aims to strengthen the resilience of public finances and maintain public debt at sustainable levels. According to IMF forecasts, the debt-to-GDP ratio is expected to remain below 60%, peaking at 57.7% in 2024 before falling back to 56.9% in 2025.
By combining cutting-edge expertise and an innovative strategy, the DGF illustrates Ivory Coast's renewed vision for sovereign debt management. This model, praised by the international community, positions the country as a leader in Sub-Saharan Africa and could inspire other nations in implementing innovative and sustainable financing solutions.
Source : Sika finance, Web Portal Editorial MEPD
