Ivory Coast

As sub-regional power, Côte d’Ivoire displays solid economic assets. It contributes to more than 1/3 of UEMOA's GDP and represents 60% of its agricultural exports. It has infrastructures rehabilitated and consolidated by massive investments: 2nd port in sub-Saharan Africa, important road network, international airport, etc.
23.10.2023
Category : Country reports Country : Ivory Coast

POLITICAL AND ECONOMIC DATA

The world's leading producer of cocoa and cashew nuts, Ivory Coast has recorded one of the fastest and sustained rates of economic growth in sub-Saharan Africa for more than ten years. With real GDP growth of 8.2% on average over the period 2012-2019, Ivory Coast managed to contain the COVID-19 pandemic to keep the pace of positive growth in 2020 at 2%.

In 2021, the country returned to its strong growth trajectory and continues to play a central role as a regional economic hub and host land for many nationals of the Economic Community of West African States countries. (ECOWAS) and elsewhere.

Political situation

Ivory Coast organised municipal and regional elections in September 2023, largely won by the RHDP [Rassemblement des Houphoutistes pour la Démocratie et la Paix], the party in power since 2011. This double election serves as a test for the main political parties. of the country in view of the 2025 presidential election, was unanimously hailed as inclusive, open and peaceful by all national and international observers.

Since the resolution of tensions linked to the 2020 presidential election, after which President Ouattara was re-elected for a third consecutive term, Ivory Coast has experienced notable political and social stability. However, the country faces a humanitarian challenge in its northern part, bordering Burkina Faso, due to the influx of refugees. These people are mainly fleeing jihadist violence in the neighboring country.

Economic situation

In 2022, Ivorian economic activity remained robust, although it faced challenges arising from Russia's invasion of Ukraine, global monetary tightening, and increasing political instability in the country. West African Economic and Monetary Union (UEMOA). Despite rising import prices, rising global and domestic interest rates, as well as falling external demand, economic growth fell from 7% in 2021 to 6.7% in 2022.

Growth was largely driven by sustained public investment and strong domestic consumption. The industrial and service sectors as well as the government's fiscal measures aimed at controlling price increases also contributed to this economic performance during the first half of the year.

Inflation averaged 5.2% in 2022, marking its highest level in a decade, driven by rising food, transport and energy prices. Nevertheless, the short- and medium-term economic outlook remains positive, although slightly below pre-COVID-19 levels. This optimism is based on a strong commitment to macroeconomic stability and ongoing structural reforms in accordance with the National Development Plan (PND 2021-2025).

Perspectives and challenges

Looking ahead, real GDP growth is expected to average 6.5% in 2024-25. Continued investment in network infrastructure, particularly in the digital and transportation sectors, as well as the exploitation of recent oil discoveries, combined with prudent macroeconomic policies, are expected to strengthen business confidence and increase productivity. Projects aimed at developing value chains have the potential to improve agricultural productivity and boost manufacturing, which will support long-term growth prospects.

Ivory Coast aims to accelerate its economic and social transformation, and to rise to the rank of upper middle-income countries by 2030.

AGREEMENTS

WTO (World Trade Organization)

Member of the WTO since January 1, 1995 and member of the GATT since December 31, 1963.

UEMOA (West African Economic and Monetary Union)

UEMOA member countries share a common currency, the African Financial Community Franc or CFA Franc (XOF) which has a fixed parity with the euro (1 EUR = 655.957 FCFA). The BCEAO, the central bank of the UEMOA states, has the main functions of centralizing foreign exchange reserves, monetary management of member countries, maintaining the accounts of the treasuries of member states and defining the banking laws applicable in each country. . The 8 member countries of UEMOA are Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, Togo and Guinea-Bissau.

APE

The Interim Economic Partnership Agreement (iEPA) between the EU and Ivory Coast, ratified in August 2016, effectively entered into force in December 2019. It provides duty-free access for all Ivorian exports to the EU and the liberalization of 80% of imports from the EU within a period of 10 years extending until 2029, on the principle of immediate and non-progressive abolition of rates. With the establishment of this agreement, the EU and Ivory Coast are aiming to double their trade by 2029, to reach EUR 15 billion.

AfCFTA

Ivory Coast is one of the 44 states that have ratified the agreement on the African Continental Free Trade Area (AfCFTA), signed in March 2018 and entered into force in May 2019. These agreements provide in particular for the elimination of tariff lines and simplification of administrative formalities and customs procedures. The challenge is to promote intraregional trade and the integration of African companies into global value chains. The AfCFTA, which brings together 54 of Africa's 55 countries, could become the largest free trade zone in the world, with 1.2 billion consumers and a combined GDP of around USD 2.5 trillion.

Debt reduction and development contract (C2D) with France

The third C2D was signed in October 2021 for an amount of EUR 1.145 billion over the period 2021-2025.

AGOA (African Growth and Opportunity Act) with the USA

Passed by the American Congress in May 2000, this law supports the economy of African countries by facilitating their access to the American market. 38 African countries have benefited from it, including Ivory Coast since 2012.

PROMISING SECTORS

Agriculture

Agricultural production of cocoa, cashew nuts, cotton, sugar cane, oil palm, rubber trees, fruits and tomatoes are manufactured by Cargill, Barry Callebault, CEMOI, Nestlé... SITA-CI, SNTC, CITA, OLAM...COTIVO, UTEXI, FTG, Sucrivoire, SUCAF-CI… PALMCI, Palmafrique… SAPH, SOGB, ITCA, CTCI-SA… fruit company, GBH, ATOU… TOMACI, among many others!

Construction

Public and private investments focused on: road infrastructure: +3,700 billion FCFA between 2016 and 2020 Sports infrastructure: +40 billion FCFA for three new stadiums. The hotel industry for the construction and renovation of hotel establishments + 500 billion FCFA Port infrastructure, Port of Abidjan and San Pedro + 1,000 billion FCFA…

Health

More than 300 health establishments have been built, including the National Center for Radiotherapy and Oncology, and 371 other establishments have been rehabilitated. The population lives less than 5 kilometers from health centres. In order to optimise the quality of service of the various medical establishments, the State has recruited 1000 health workers, notably doctors, nurses, pharmacists, midwives, etc. However, despite the efforts made, certain constraints remain: high concentration of centres of specialised care in Abidjan, low availability of medicines and inputs in health structures at the peripheral level.

Mining

Ivory Coast is a country with strong mining potential. This sector is considered by the Ivorian State as a pillar of economic growth. Several actions have been carried out including the improvement of mining governance, the intensification and diversification of production... The mining resources are: iron, bauxite, nickel, diamond, manganese and gold. The main players in the sector are: Endeavor Mining, Persus Mining, Sodim-Terranga, CML, BMSA, LEB… According to the Society for the Mining Development of Ivory Coast (SODEMI) more than 2/3 of the Ivorian territory is covered by formations known to be rich in mineralization.

BUSINESS ENVIRONMENT

In a market economy, improving the business climate constitutes a major element in creating an attractive framework for private investments and promoting the competitiveness of the private sector.

Thanks to the efforts made, Ivory Coast was able to significantly improve its ranking in the World Bank Group's 2020 Doing Business Report. Thus, since the start of the reform process in 2013, Ivory Coast has improved its score by 67 places, going from 177th place (in 2013) to 110th.

Ivory Coast is working to consolidate its achievements and continue the momentum of reforms. It is therefore engaged in a three-year program 2020 – 2022 with 14 major projects which will significantly impact the performance of Ivory Coast and its attractiveness. This program includes structural and structuring projects such as:

FOREIGN DIRECT INVESTMENT (FDI)

Ivory Coast's foreign exchanges are characterised by a structurally surplus trade balance. This particularity is all the more interesting since Ivory Coast is not considered, like many of its neighbours, as a real oil producing country. Its strength lies in its agricultural, agro-industrial, mining and industrial potential.

In 2020, the leading partner is CHINA with 25.1% of imports in value and an annual growth rate of 10% in imported values ​​between 2016 and 2020. FRANCE occupies second place with 13.8% of imports and a growth rate of 1% in imported values ​​between 2016 and 2020. Next come NIGERIA with 9.2%, INDIA 5.4%, the NETHERLANDS 4.1%, Belgium 3.9%, TURKEY 3.4 %, MOROCCO ranking in 10th place with 2.7%. This ranking demonstrates the growing importance and diversity of supplier countries to Ivory Coast and therefore competing practices in this market which has inspired confidence for around ten years.

Among the products with the highest imported values: cereals, pharmaceutical products, machines, appliances and mechanical devices and tobacco appear in the first places. In terms of foreign investments, France would remain the leading foreign investor. The sectors benefiting from these investments are, in order of importance: the manufacturing industry, the financial sector, the extractive industry, wholesale and retail trade, construction and the hotel industry.

Among the contracts recently won by France we can cite: the Abidjan urban train, the expansion of Abidjan airport, the construction of the Exhibition Center, the Abidjan – San Pedro coastal road and even a manufacturing plant. drinking water which will supply approximately 30% of the daily water consumption of the capital city with 28km of pipeline and two water towers of 5,000m3 each…