Abidjan- Ivory Coast has cut planned
spending for 2017 by 10 percent due to a sharp drop in world
prices of cocoa, its leading export, President Alassane Ouattara
said, according to Thursday's edition of national newspaper Le
Patriote.
The move is a major concession by a government that has
prided itself on its stewardship of the West African country -
the world's biggest cocoa exporter - during its recovery from a
2011 civil war.
It has since emerged as one of the world's fastest growing
economies, drawing the interest of international investors.
Ouattara, in a speech at the presidency, said the decision
to cut spending was taken during a visit this month by an
International Monetary Fund delegation, according to excerpts
published by the newspaper.
"Excluding salaries, we were obliged to reduce spending by
10 percent. All the ministries will tell you their budgets have
been reduced by 5 to 10 percent," Ouattara said.
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The investment budget was included and would be reduced by
10 percent, or about 200 billion CFA francs ($320 million).
Cocoa futures have plummeted since last year on the back of
bumper crops around the world and stagnant demand.
New York cocoa futures slumped to a 9-1/2-year low on
Wednesday, and the London market dropped to its lowest
since 2013.