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.
- The World Bank Group supported Côte d'Ivoire in implementing a first-of-its-kind debt-for- development swap, an innovative financing solution that improves debt terms while funding critical development needs.
- The World Bank Group provided a €240 million Policy-Based Guarantee to support a €400 million commercial loan with favorable terms, including a 15-year maturity and a six-year grace period.
- By securing better financing terms, the swap will generate €330 million in budget resources over five years, with at least €60 million in net present value savings.
- The money saved will support education investments through the construction of over 30 new schools that will benefit 30,000 students.