The Report: Cote d'Ivoire 2013
The country is a member of ECOWAS and the Economic and Monetary Community of Central Africa, as well as party to several international trade agreements. Agriculture, manufacturing and services are key contributors to GDP and important sources of employment, though the mining of vast mineral reserves and ongoing energy diversification are likely to play a significant role in the transformation the economy over the next few years.
Country Profile
Traditionally one of West Africa’s most dynamic economies due to strong growth and development in the early decades of its independence, Côte d’Ivoire is famous for being the world’s largest producer of cocoa and, less felicitously, its recent history of political instability and civil strife. However, the country, which was divided between a rebel-held north and the government-controlled south, is now reunited and there has been no large-scale violence since a conflict over the 2010 presidential election was brought to an end in April 2011. Côte d’Ivoire also stands out for having some of the best transport infrastructure in West Africa and for its ethnic, religious and linguistic diversity, with over 60 languages and dialects being spoken throughout the country.
Explore chapterEconomy
It is amazing the difference a few years can make. Over the course of 2012, Côte d’Ivoire has seen a significant improvement in both its current performance and its outlook for short-, medium- and long-term growth. While there remains plenty to be done, the improvement marks something of a return to form for the world’s largest cocoa producer.
Explore chapterBanking
After decades of turbulence, the Ivoirian banking sector is experiencing something of a renaissance. Like the economy, Côte d’Ivoire’s banking sector was growing robustly until a crisis brought on by enthusiastic lending struck in the early 1980s. Bank defaults during this period cast a long shadow, paving the way for a steady increase over the years in cash transactions. The subsequent unrest of the early millennium slowed banking growth, and in the beginning of 2011, during the most acute period of upheaval, banks closed for several months, with a number of banks temporarily nationalised by the government at the time. This was compounded by financial complications, with balance sheets deteriorating as the economy contracted.
Explore chapterCapital Markets
Regionalism is a feature not only of Francophone West Africa’s monetary regime and banking sector, but also of its financial markets. The bond market is dominated by sovereign issues from Côte d’Ivoire and Senegal, the two largest economies in the region. The equity market has two capitalisations – Sonatel and Ecobank Transnational Incorporated – while most of the companies listed from Côte d’Ivoire. Although traded volume and market capitalisation have been on the rise in recent years and financial performance has been impressive, the regional financial markets remain a marginal source of funding, except for governments. Unlike some of Africa’s larger, more dynamic exchanges, the Bourse Régionale des Valeurs Mobilières (BRVM) has been stagnant in recent years, with few new equity listings. The markets are limited to trading of shares and bonds, although moves are afoot to open up the exchange to smaller businesses, and to the development of derivative products and commodities.
Explore chapterInsurance
An overhaul of the regional insurance regulations in the West African CFA zone is expected to yield its best results in Côte d’Ivoire, the largest market in the sub-region. With a penetration of about 3%, according to the country’s insurance association, the Association des Sociétés d’Assurances de Côte d’Ivoire (ASA-CI), insurers are only just scraping the surface of the market’s potential.
Explore chapterIndustry & Retail
Once the industrial engine of post-colonial West Africa, Côte d’Ivoire still retains a commercial and manufacturing fabric that is enviable by regional standards, although its lead over its neighbours has all but disappeared recently. As with other areas of the economy, industry has suffered from the years of political turmoil and economic stagnation from 1999 to 2011. Recovery has been rapid and impressive since 2011, however, and Ivoirian industrialists are optimistic about a return to sustained growth.
Explore chapterEnergy & Mining
To meet 10% growth in local electricity demand and benefit from the rising regional need for power, Côte d’Ivoire will have to make significant investments in all parts of the power supply chain as well as prioritise increasing natural gas and oil production. With an advanced power infrastructure by regional standards and ample energy resources for electricity production, the country is well positioned to become a power-producing centre for the area, particularly within the framework of the West African Power Pool (WAPP).
Explore chapterAgriculture
After years of underinvestment and mismanagement, the government has launched a series of reforms and initiatives aimed at putting the agricultural sector back on track towards profitability and sustainability. Indeed, Côte d’Ivoire has a vibrant agricultural sector that has played an integral part in its national economy since the country gained independence in 1960. The sector accounted for 27.7% of GDP in 2012, or CFA3.5trn (€5.3bn) out of CFA12.5trn (€18.8bn). It also generates around 40% of export earnings and provides jobs for 68% of the labour force.
Explore chapterTransport
More than any other sector, the Ivoirian government has placed transport and infrastructure at the centre of its plans to revitalise the national economy after a decade of political instability and under-investment. The improvement of Côte d’Ivoire’s transport network is essential to increasing growth in its export-led agriculture sector and the nascent mining industry, as well as capitalising on the country’s role as a transit and transshipment centre for the sub-region.
Explore chapterConstruction & Real Estate
After a decade-long crisis, donor funds are set to provide the Ivoirian government with enough capital to kickstart a series of public-private partnerships (PPPs) meant to re-launch its weakened economy. The government’s roadmap, including billion-dollar infrastructure projects, and a deficit of about 400,000 homes offer many opportunities in the construction sector.
Explore chapterTelecoms & IT
As with many emerging markets, data is playing an ever more important role in Côte d’Ivoire’s telecoms sector. While many subscribers have multiple SIM cards, the mobile market is nonetheless rapidly nearing saturation, which means the country’s six operators are looking to sustain high growth rates by both expanding the uptake of value-added services and improving network quality.
Explore chapterTourism
Following a period of minimal activity due to political unrest, Côte d’Ivoire’s tourism sector is now showing signs of recovery. According to the World Travel & Tourism Council (WTTC), in 2012, the travel and tourism industry directly contributed CFA285.4bn (€428.1m), or 2.4% to GDP, with the figure set to rise by 3.6% to CFA295.6bn (€443.4m) in 2013. By 2014, growth in direct and total contributions to GDP is expected to average 5.2% per year until 2023, generating an estimated CFA488.6bn (€732.9m) and CFA963.5bn (€1.45bn) in 2023, based on constant 2012 prices. Meanwhile, direct and total jobs created in 2012 accounted for 2.1% and 4.2% of total employment, or 102,000 direct jobs and 208,500 total jobs, according to WTTC figures.
Explore chapterHealth & Education
In the 1980s Côte d’Ivoire’s health care system was a model for the region, but population growth, waning state revenues and conflict eroded the capacity of public institutions, leading to material and facility shortages and declining health for citizens. Major killers today are largely preventive diseases, such as malaria and HIV/AIDS, demanding the establishment of national programmes to coordinate and implement efforts to fight them. Yet, after decades of eroding health budgets, the Ivoirian government has declared 2013 as the “Year of Health”, pledging to greatly increase state expenditures to modernise and expand the public health care system, inspiring hope for improvements in key indicators such as maternal and child mortality rates.
Explore chapterMedia & Advertising
Although sporadic conflict over the past 15 years has complicated development efforts in Côte d’Ivoire’s media sector, more recently new opportunities for growth in each form of media have emerged. The print media faces serious financial constraints, yet the return to relative stability is set to enable vendors to sell publications to areas previously isolated by fighting, while the expected liberalisation of the state-dominated television sector will stimulate competition and growth in the audio-visual segment. Unexploited niche areas within print and audio-visual media will also likely offer opportunities for new entrants into the market.
Explore chapterTax
The tax system in Côte d’Ivoire is based on the legislation that existed at the time of the country’s independence in 1960. It has since undergone several amendments intended to take into account the country’s economic and social evolution and budgetary constraints. A powerful and qualified tax authority enforces taxpayers’ obligations.
Explore chapterLegal Framework
I. GENERAL LEGAL ENVIRONMENT: undefined A. Sources of Law: Côte d’Ivoire has a civil law system where laws are compiled in codes and establish what is legal and what is illegal. The higher law is the version of the Constitution adopted by referendum on July 23, 2000. The Constitution includes laws that are adopted by the National Assembly, ordinances and decrees issued by the President, and, at the bottom, ministerial decrees and orders.
Explore chapterThe Guide
Abidjan and its surrounding areas present visitors and locals with a host of activities for their enjoyment, leaving no excuse for those on business trips from abroad to remain in their hotel rooms. Although the crisis-ridden decade that came to an end in 2011 certainly hampered Abidjan’s vibrant nightlife, the security situation has been largely stabilised since President Alassane Dramane Ouattara came to power. The economic capital’s infamous roadblocks were dismantled in March 2013 as a new force – known as the Coordination Centre for Operational Decisions and comprising officers from the police, gendarmerie and the military – was established to maintain security. As security improves and economic growth has resumed, the “Pearl of the Lagunes” is once again flourishing. WHAT’S IN A NAME?: Legend has it that the name Abidjan resulted from a misunderstanding, when the first colonists asked a local man the name of the place. He replied “min-chan m’bidjan,” meaning “I just cut the leaves” in the Ebrié language, thinking he had been asked what he was doing. Today, visitors with a firm grasp of French are not hindered by such misunderstandings when out on the town, though it is often possible to get by with English, owing in part to the influence of neighbouring Ghana and Liberia. In any case, getting around this cosmopolitan city and finding the best places to wine, dine and have a good time is quite easy and very enjoyable.
Explore chapterTable of Contents
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