Innovative Finance for Education: How Côte d'Ivoire's Debt Swap is Creating New Opportunities

Côte d'Ivoire faced a dual challenge: managing its high- cost debt while addressing critical gaps in its education infrastructure. Only 10% of children had access to preschool education, well below the Sub-Saharan African average of 28%. The disparity between urbanand rural areas is stark, with urban areas hosting 62% of facilities and enrolling 74% of children, leaving ruralcommunities severely underserved.

The country also struggled with demographic pressures, as population growth of 2.6% annually and a mandatory education policy for ages 6-16 drove increasing demand for education infrastructure, while existing high-interest commercial debt constrained fiscal resources. The World Bank was already supporting Côte d'Ivoire's education sector through an ongoing and well-performing Program-for-Results (PforR) operation. However, additional resources were needed to meet growing demands and expand access to education, particularly in underserved areas.