Foreign investors often wonder about the Ivorian fiscal system, most notably concerning the value-added tax (VAT). The most common issues cited are those related to the scope of the tax’s application, the exemptions and deductions, and above all, the refund system. Overview Much like other countries, the Ivorian VAT is a neutral impersonal tax on turnover. In current form, the VAT is an…
The fiscal legislator has instituted a new fiscal obligation through the establishment of Article 15 of the Tax Schedule to the Law No. 2016-1116 of December 8, 2016, concerning the state’s budget for FY 2017. Those concerned by the declarative obligation on transfer pricing are companies established in Côte d’Ivoire which have links, most notably of a capitalistic nature, with companies…
Steady industrial growth coupled with increased spending on infrastructure and modest inflation helped sustain momentum in Côte d’Ivoire’s economy in 2017, balancing out lower returns from the agricultural sector. GDP growth in the country reached 7.6% that year, despite a fall in revenue due to lower cocoa prices and social unrest. In October the IMF said the Ivorian government was on…
Although macroeconomic performance remains robust compared to peer countries, there is clear evidence of a slowdown driven by the 50% fall cocoa prices between the late-2015 peak and early 2018. This puts pressure on tax revenue and the fiscal deficit while slowing GDP growth. The result is a higher debt-to-GDP ratio than anticipated, causing a greater need for the government to raise funds…
Public-private partnerships (PPPs) have a long and varied history in Côte d’Ivoire, dating back to at least 1960. To date, PPP projects have occurred almost exclusively in the infrastructure sector, and have been carried out under a variety of models, such as private sector management, leasing, concession, build-own-operate and build-own-transfer. Early Model According to the World Bank,…
While economic growth has been strong in recent years, it has not always been inclusive. There are significant differences in regional growth rates between the commercial centre of Abidjan and the rest of Côte d’Ivoire, as well as more broadly between the north and south of the country. Interregional redistribution efforts have been insufficient to offset these discrepancies or address broader…
Recent years have seen comprehensive reforms enacted in both public and private-sector pension systems in Côte d’Ivoire, culminating with the establishment of a new regime and institutions. Changes to the overall system included a gradual phasing up of the retirement age from 55 to 60 between 2012 and 2016, moving the base calculation of pension payments from 10 of the employee’s highest…
As the Ivorian economy has powered ahead in the past half-decade, insurance premiums have kept pace, regularly posting double-digit annual gains. According to the Association of Insurance Companies of Côte d’Ivoire (Association des Sociétés d’Assurances de Côte d’ Ivoire, ASA-CI), 2016 was no different with the total value of premiums growing by 9.1% to reach CFA304.4bn (€456.6m),…
Regulators have faced challenges ensuring that all sector players are financially sound, as insurance markets across the Inter-African Conference of Insurance Markets (Conférence Inter-africaine des Marchés d’ Assurances, CIMA) have seen an influx of new competitors. To provide continuous high-quality services to their clients and to avoid undermining the stability of the system, CIMA,…
Côte d’Ivoire has faced a shortage of cement since early 2015, as a result of rapid growth in construction activity when large-scale investment returned to the country after 2011. Demand for cement – and therefore its pricing – is also highly seasonal, leading to particular supply pressures between January and May, the dry season when most construction takes place. The seasonality of…
