Charles Koffi Diby is one of Africa's most prominent and successful finance ministers. This was acknowledged earlier this year when The Banker awarded him the title of the 'Best Finance Minister for Africa'.
Mr Diby, who is 53 years old, also holds some key positions in the management of African finance, including presidency of the Council of Ministers for the West African Economic and Monetary Union (WAEMU), since 2008, and the presidency of the Council of Governors for the Bank of Investment and Development of the Communaute Economique des États de l'Afrique de l' Ouest, or CEDEAO, since 2009.
Mr Diby has had a long career in the financial administration for Côte d'Ivoire, including serving as director-general for accounting and treasury, and technical counsellor in the Ministry of Economy and Finance.
He has obtained a position of unusual respect among the business and banking community through the seriousness of and dedication to the task of managing the country's finances through a period of turbulence. His commitment to solving outstanding debt issues, coupled with his resolute dedication to restraining inflation and public spending, has won him plaudits. He has written extensively about the problem of managing public services, including a book dedicated to the topic.
Q: Could you please describe your strategic plan for ensuring economic recovery?
A: Very simple. We know we have a number of reforms to conduct at the institutional and sectoral levels to create the conditions for a dynamic, performing and competitive economy. These reforms were begun three years ago and started to bear fruit in 2009.
There has been economic growth for three years, switching the country from an economy in recession to a growing one. Since 1998, gross domestic product (GDP) growth rate has been higher than the population growth. Economic growth has been about 3.8% and the population is growing at 2%.
But we do believe that more can be done by bringing more transparency and rigour in public finance management. Don't forget, the deficit is 1.6% of our GDP. So we've tried to optimise public spending.
Q: Could you describe your policy of reform?
A: Reforms are on the way for the basic commodity sector, which could be translated into substantial income for our population. We've introduced more transparency into the management of the cocoa and the coffee sectors and institutional reforms are also under way. But we have gone further and engaged in the Oil Industry Transparency Initiative. Although we are not a big oil producer, we publish all our production figures.
In short, we want to reorganise and clean up the whole business environment and that's one of the reasons why we are following the Doing Business Programme of the International Monetary Fund (IMF) and World Bank. To increase investment, we're handling the heavy burden of external debt, so heavy that it undermines our budget margin. That's why we really appreciate the assistance of the Breton Woods institutions.
Q: Could you assess your performance in relation to the Heavily Indebted Poor Countries (HIPC) initiative?
A: We reached the decision point in March 2007. Our eligibility to participate in the initiative will substantially boost the economy, increase investment and alleviate public debt. Once we reach the completion point, we will be able to better fight poverty and build infrastructure, schools and hospitals, etc.
Q: Could you indicate the scale of debt reduction expected?
A: That will depend on the upcoming restructuring. We don't know exactly how much we'll get at the completion point; and I think the amount will depend on the nature or the kind of accord and also on complex calculations. But we'll know at the completion point with each creditor.
Q: What are the factors that will decide the reduction?
A: The programme has been reviewed twice. The IMF and World Bank were satisfied with our technical management. We would like to go very quickly to the completion point by hastening the required reforms. But, there are some dates that you can't rush. But we are happy that all macroeconomic indicators are showing green.
Q: What is your anticipated growth rate?
A: The growth rate level is higher than 3% and we plan it to be 4% this year. But because of some temporary problems, for example occasional power outages, we only attained a 3% growth rate.
The inflation rate level here is 2%, while the standard requirement for the WAEMU area is 3%. We're below their level. The major economic sectors are in relatively good health. We are broadly satisfied with our performance.
Q: How did you achieve this lower inflation rate performance?
A: It was very high in 2008 due to the oil and the food crisis. But measures at the community [WAEMU], national and budget levels have helped reduce this inflation rate. And I think the monetary policy of the central bank also contributed to the falling inflation rate.
At the end of 2009, the average inflation rate was 2%. We've made funds available to increase the production of food crops for people. This will enable them to reduce their dependence on imports and this is another contributing factor.
The global market oil price impacts directly on our consumers. And any rise or drop in global price will affect the final consumer. However, we are confident that the recent rise in the oil price will not affect our inflation rate.
Q: What measures have you taken to stimulate levels of growth?
A: The ongoing reforms account for the shift in the growth rate from 3% to 3.9%. We are in discussions with the IMF and World Bank about our plans for expanding growth further.
Our performance in the framework of the Doing Business Programme should get more direct investment into Côte d'Ivoire. We are forecasting a growth rate of 5% by 2011, based on the ongoing reforms, and of 7% to 8% by 2015.
This country has potential and we're working to create the conditions for growth and growing production and efficiency.
Q: You're preparing to launch a large sovereign issue. Could you describe your expectations and your message to investors?
A: This depends on the negotiations with the London and Paris clubs. The conditions have been already exceptional for us. The reforms programme has been satisfactorily reviewed twice by the IMF and the World Bank, so they have trust and confidence in us.
There has been complete transparency during negotiations where we were represented. The reassurance we give to international investors is of good governance; the results are known to everybody and I think the rest is political.
The elections coming very soon will bring political stability. These should occur by the end of the year. The promise of transparency in our business sector coupled with our performance will satisfy investors that this is a well-managed and efficient economy.
Q: Could you assess your plans for your presidency of the Economic Community Of West African States (Ecowas) Bank for Investment and Development (EBID)?
A: We shall direct our efforts towards establishing the Infrastructure and Energy Fund, a venture dear to Ecowas's highest decision-making organs. We shall work with EBID towards making this fund operational quite early.
Regarding the community levy, we make an urgent call to our colleagues, the ministers for finance, to ensure that its resources are transferred to Ecowas in order to enable EBID, the financial arm of the Community, to have 60% of the community levy resources.
The establishment of this fund will enable EBID to address its financing needs effectively for the public and the public commercial sectors, in a context where concessional resources are increasingly scarce.
