For Côte d'Ivoire, expanding renewable energy sources beyond hydropower is crucial to ensure energy resiliency against climate change. Also, the depletion of 90% of the country’s forest cover over the last 60 years has created a major economic vulnerability. As the world’s top cacao exporter, this is critically important for the country. To address this, the government has renewed its focus on Forest Preservation, Rehabilitation and Expansion.
Against this backdrop, the government faces a financing dilemma: how to secure resources for enhancing resilience of its energy systems and protecting forestry, while upholding fiscal sustainability.
After issuing labeled bonds in 2024 ($1.1 billion sustainability bond in 2024, and ESG Samurai Bond in 2025), Côte d’Ivoire explored complementary financing approaches beyond use‑of‑proceeds instruments to address economy-wide environmental challenges. The government sought financing structures that are more flexible and could incentivize systemic behavioral change rather than fund discrete eligible projects.
The World Bank Group supported the government in developing a Sustainability-Linked Financing Framework that links financing terms to the achievement of clearly defined key performance indicators: (i) renewable energy production (excluding hydropower), and (ii) deforestation prevention and reforestation. The Framework enabled the structuring of Côte d’Ivoire’s first sustainability-linked loan (SLL, €433 million) backed by World Bank Group guarantees.
PROJECT HIGHLIGHTS
- Côte d'Ivoire launched its Sustainability-Linked Finance Framework, establishing itself as a leader of sustainable finance innovation in Africa.
- The Framework ties Côte d’Ivoire's cost of borrowing to ambitious targets: (i) increase share of non-hydro renewable energy, (ii) restore forested land and limit forest cover loss.
- Using the Framework, the country secured West Africa's first sustainability-linked sovereign loan, €433 million ($505 million), with private financing supported by World Bank Group guarantees, combining MIGA and IBRD products for the first time.