According to the International Monetary Fund (IMF), growth prospects have been favourable for the Ivorian economy in 2018. After number of difficult years, business is back on track in Abidjan. On an international scale, the IMF even predicted, back in 2017, that following that trend, the country would be the fastest economy in Africa. Let us see what helped Ivory Coast to get back to economy.
Achieving political stability
Without political stability, there can be no economic stability. Indeed, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic growth. It is clear that for the good governance and growth of the country, there should be political permanency. The Ivory Coast has proved it during the last 3 years. And this has had direct effect on its economy. Political stability led to direct investments. A prediction of a GDP growth of 7.4% has been notified by the IMF from 2017 to 2020.
A sustained economic transformation! This is how the IMF describes the remarkable economic reform that has allowed the Ivory Coast to maintain a fiscal discipline and reduce inflation, since 2014. Consequently, during the last few years, the Ivory Coast has been able to position itself in various economic ranking. For instance, the country was ranked 122th, out of 190 nations, by economists of “Doing Business” 2018. Furthermore, the Ivorian economy is part of the Top 10 reformists countries.
The golden chocolate
Despite experiencing a fall in its main crop production, the cacao, now estimated at 1.985 million tons, against 2000 million ton during the previous year, the Ivory Coast can still be considered as the king of cocoa. With the dry season drawing to an end in February, the country expects boosted fund inflows, though supply is now picking up.
A trustworthy client for funders
During 2018, the Ivory Coast has proved to be a reliable client when it comes to funders. The African Development Bank has granted to the Ivorian economy 802,729 billion CFA Francs, which represents more than 1 billion Euros. Meanwhile, the World Bank has allowed a loan of about 638 billion CFA Francs. The financing of the “Grand Abidjan”, which will cost around 315 million Dollars, is part of the many projects to be implemented.
Ivory Coast is starting a new chapter of its economy in 2019, hoping that it will bring about more challenges and positive outcomes.