AfDB NEWS & EVENTS
18-Feb-2020
The African Development Bank launched, on Friday, February 14 in Abidjan, an unprecedented country diagnostic report on long-term financing for Côte d'Ivoire.
This report, the first of its kind in Africa, was prepared by the Bank in collaboration with the Financial Sector Deepening Initiative in Africa (FSD Africa), German Cooperation (GIZ) and the “Finance Finance for Africa” (MFW4A) partnership.
The Bank report diagnoses long-term financing for infrastructure, housing and businesses in Côte d'Ivoire and presents recommendations to help the country meet the challenges of long-term financing.
Charles Leyeka Lufumpa, Chief Economist and Acting Vice-President of the Bank, responsible for economic governance and knowledge management, officially launched the report, in the presence of the Ivorian Minister of Economy and Finance, Adama Coulibaly, diplomats, senior government officials and officials from the Bank, subregional organizations and the Central Bank of West African States (BCEAO).
"Côte d'Ivoire plays an important role in the region and this is one of the reasons why we chose it for this type of diagnosis," said Charles Leyeka Lufumpa in the preamble. The development of long-term financing deserves our attention because it allows growth in key areas of the economy and this is necessary to catch up in Africa in infrastructure, housing and energy. "
Adama Coulibaly praised the African Development Bank for this unprecedented initiative: “this report is of great interest to the government of Côte d'Ivoire (…). The recommendations it contains will enable our government to put in place the policies necessary to meet these challenges. The minister stressed that Côte d'Ivoire, with an annual growth rate of 8% per year since 2012, has already started reforms to encourage funding.
According to the report, long-term financing covers a period of 20 to 30 years in the key sectors of the economy - infrastructure, housing - and spans 5 years for businesses.
The report notes several challenges to be taken up by Côte d'Ivoire linked, among other things, to the lack of financing for businesses, which is a major obstacle to the growth of SMEs, and to the scarcity of funding for housing, which is also very short term.
The Bank report indicates that the infrastructure financing deficit in Côte d'Ivoire represents 13.7 billion US dollars until 2040 (annual deficit of 540 million dollars). The long-term financing gap for water infrastructure is the largest. Côte d'Ivoire also has significant needs in the transport sector (roads, railways, airports, ports) and telecommunications.
The Minister of Economy and Finance of Côte d'Ivoire, Adama Coulibaly praised the Bank for having devoted this first report to his country.
This report will serve as a reference tool for policy makers, investors, the private sector, development actors and academics. It will also serve as a comparison tool between African countries.
The FSD Africa Initiative, launched in 2017, is currently hosted by the African Development Bank in Abidjan.
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