CDI Sustainable and Inclusive Growth DPF1

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The First Sustainable and Inclusive Growth Development Policy Financing (DPF) to the Republic of Cote d’Ivoire is the first in a programmatic series of two single-tranche DPFs. It includes financing from an International Development Association (IDA) credit in the amount of Euro 54.4 million (equivalent to US60.0 million dollars) and an IDA Scale-Up Facility (SUF) credit in the amount of Euro 126.9 million (equivalent to US140.0 million dollars). In this context, the Government is implementing reforms to sustain high growth while making it more inclusive and sustainable. To sustain private sector-led growth, the authorities improved the business environment (Doing Business ranking improved from 139 in 2017 to 110 in 2019). Significant reforms, including the adoption of the Forest Code, and the requirement to establish a system of standards for sustainable cocoa production, focused on the cocoa sector. As a result, the rate of deforestation is expected to decrease and an increasing share of cocoa will be produced following environmentally and socially sustainable standards, with positive economic impact on cocoa farmers who will be able to produce a more valuable product. Policy reforms in the power sector are expected to attract private investments in renewable energy and energy efficiency. To make growth more inclusive, the authorities are leveraging digital solutions to boost domestic resource mobilization (DRM) and create the fiscal space. To use these resources efficiently and strengthen the social protection system, the authorities are pursuing policy actions to improve the targeting of pro-poor programs.