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The Report: Cote d’Ivoire 2019

Côte d’Ivoire has returned to economic growth after stabilising its political situation in 2011. The economy has grown at a rate of 9% per year since 2011, in part due to the emergence of its burgeoning industrial sector. As one of the fastest-growing African economies, with an annual GDP growth rate forecast at 7-7.5% in 2019, Côte d’Ivoire is now promoting sustainable and inclusive growth.

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Sections

  • Country Profile
  • Economy
  • Banking
  • Capital Markets
  • Insurance
  • Energy & Mining
  • Agriculture
  • Industry & Retail
  • Transport
  • Construction & Real Estate
  • ICT
  • Tourism
  • Health & Education
  • Tax
  • Legal Framework
  • The Guide
  • Table of Contents

Country Profile

Once one of Africa’s economic powerhouses, Côte d’Ivoire fell on hard times in the 1980s and entered a period of political instability and civil war at the end of the 1990s. The coun¬try has largely been at peace since 2011, enjoying some of the highest economic growth rates globally, especially during the period 2012-16. Still by far the world’s most important cocoa producer, the former French colony is linguistically, ethnically and religiously diverse, and well on its way to reclaiming its status as a dynamic driving force of the West African regional economy. This chapter contains a viewpoint with President Alassane Dramane Ouattara; an interview with Vera Songwe, Under-Secretary-General and Executive Secretary, UN Economic Commission for Africa; and a viewpoint: Marie-Claude Bibeau, Minister of International Development of Canada.

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Economy

Although economic growth has been slowing since 2016, the outlook remains bright, with the IMF forecasting an annual expansion of at least 6.5% through to 2023. However, there are still challenges that need to be overcome. The country remains highly vulnerable to external shocks, especially the fluctuation of commodity prices. Economic expansion has been greatly supported by the state, but the government is expected to curtail public spending in the coming years to narrow its fiscal deficit, as agreed with the IMF. Despite rising investment, private sector con-tributions remain weak, meaning further efforts are needed to improve governance, tackle corruption and cement the rule of law. This chapter contains interviews with Adama Koné, Minister of Economy and Finance; Emmanuel Esmel Essis, Director, Investment Promotion Agency; Jean-Marie Ackah, President, General Confederation of Businesses of Côte d’Ivoire; and a viewpoint with Abdallah Boureima, President, UEMOA Commission.

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Banking

The banking sector has played a key role in financing reconstruction in Côte d’Ivoire since the end of the decade-long political and military crisis in 2011. With headline economic growth expected to hover around a robust 7% per annum over the next five years, Côte d’Ivoire’s banking sector is likely to remain attractive, with more banks attempting to penetrate the market. However, the progressive implementation from January 2018 of international prudential standards means that banks will have to boost their capital if they want to maintain their level of lending. This in turn is expected to drive consolidation in the sector in the medium term. It is hoped this will have the added benefit of improving banks’ risk management. This chapter contains interviews with Tiémoko Meyliet Koné, Governor, Central Bank of West African States; and Aymeric Villebrun, CEO, Société Générale de Banques en Côte d’Ivoire.

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Capital Markets

After four years of high gains following the end of the political instability in Côte d’Ivoire, the Bourse Régionale des Valeurs Mobilières – headquar¬tered in the Ivorian commercial capital Abidjan – is experiencing challenges marked by a significant drop in indexes, reaching a six-year low in 2018. Increased competition for telecoms companies in Senegal and Burkina Faso, a crisis in the Ivorian banking sector and fears of political unrest do not seem to indicate a short-term recovery in prices. However, bright economic prospects for the UEMOA region and increasingly attractive price-to-earnings ratios present medium-term opportunities for investors. As the bourse’s visibility is increasing and more companies list, interest for the equity market will continue to grow. This chapter contains interviews with Felix Edoh Kossi Aménounvé, CEO, La Bourse; and Niamkey Isidore Tanoé, CEO, Atlantique Finance.

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Insurance

Insurance premium rose by almost 40% be¬tween 2013 and 2017 on the back of econom¬ic expansion, and while the main actors have remained the same, the last few years have seen an influx of foreign and local players to the market. Now, new regulations – particularly min¬imum capital requirements – that will begin to be enforced in 2019 are expected to significantly change the sec¬tor’s landscape, leading to market consolidation and improved services in a country where in¬surance penetration is at less than 2% of GDP. This will provide a strategic opportunity for insurers to both increase the confidence of consumers in products and give a much-needed boost to insurance inclusion. This chapter contains an interview with Mohamed Bah, Deputy Director, Sunu Group.

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Energy & Mining

Côte d’Ivoire has made substantial efforts to increase generation capacity, upgrade infrastructure and expand the electricity network, translating into rising investment. The country is also diversifying the energy mix, which tradition¬ally relied on gas-fuelled and hydraulic power plants. The push into renewables could reshape the energy mix and reduce reliance on gas-fired energy. Additionally, a renewed interest for oil and gas exploration could place the country on the map of hydrocarbon producers. With a largely untapped mining potential, Côte d’Ivoire has become an exploration hotspot in West Africa. While gold remains the primary export, accelerated exploration is necessary to sustain growth. Recovering manganese prices are boosting output and the new focus on rare minerals is diversifying revenues. Effective implementation of the mining code will be key for medium-term growth and the continuance of investor confidence. This chapter contains interviews with Marc Alberola, CEO, Eranove; and Jeff Quartermaine, CEO, Perseus Mining.

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Agriculture

A number of development strategies estab¬lished by the government, notably the Na¬tional Agricultural Investment Programme, are leading the way for Côte d’Ivoire to increase its production in key subsectors and improve its processing capabilities. In the short term, storage capa¬bilities will be essential to ensuring that agricultural products are maintained at a standard of quality on par with buyers’ expectations. The biggest challenge, how¬ever, remains surpassing current low levels of added value and processing. As a result, efforts to encourage local processing substantially through bonuses and direct payments to processors, as well as with tax incentives and programmes directly tackling constraints to processing will remain a state priority for the years ahead. This chapter contains interviews with Yves Brahima Koné, General Manager, Coffee and Cocoa Council; and Christophe Koreki, Managing Director, Palm-CI.

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Industry & Retail

Côte d’Ivoire’s push for local processing provides the opportunity to add value beyond exportation of raw agricultural resources, specifically cocoa and cashews, thereby increasing revenue from the industrial sector. Major infrastructural projects aim to provide the required logistical environ¬ment for the emerging industrial base. Significant efforts remain necessary to increase competitiveness, particularly in tack¬ling energy costs, training the Ivorian workforce and improving access to financing. The modernisation of the country’s retail model and network is primarily based on rising demand driven by the emerging middle class. Retailers are gaining interest in penetrating the interior regions to access the larger population and prepare for expansion into surrounding sub-regions. To accomplish this, retailers will look to partnerships with local players in order to take on the informal play¬ers and improve logistical networks and supply chains. This chapter contains an interview with Jean-Louis Menudier, President, Large Industrial Firms Union of Côte d’Ivoire.

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Transport

Côte d’Ivoire has been undertaking ex¬tensive public infrastructure works with a notable focus on transportation, which accounted for 9% of GDP in 2018. Over €10.7bn is being devoted to roads and the wider transport sector under the National Development Plan 2016-20, yet the great¬est challenge remains developing and maintaining an integrated logistics network. Several projects are under way in air and maritime transportation, such as the continu¬ous development of the national carrier, Air Côte d’Ivoire, and the expansion of the two major ports of Abidjan and San Pedro. These investments are set to secure the country’s position as a regional transit hub. However, the country still needs to address its logistical issues, caused primarily by the fragmented market, though consolidation and investments by international players is starting to address the issue. This chapter contains an interview with Hien Yacouba Sié, General Manager, Autonomous Port of Abidjan.

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Construction & Real Estate

The construction sector has experienced significant growth since 2011 as a result of heavy public and private investment. Foreign investors have helped usher in new infrastructure projects, which contributed to the rise of local cement production. The govern¬ment is focusing on projects to restore the road network and provide affordable housing. The construction industry may witness some slowdown compared to the 2011-17 period, primarily due to factors external to the sector such as the government’s revenue decreasing due to lower cocoa sales and political risk associated with the upcoming 2020 elections. That said, the long list of ongoing and planned projects — including highways, bridges, ports and stadiums — provide cause for optimism. Beyond public works, the social housing programme is likely to sustain the real estate sector, with a healthy growth rate for the short to medium term. This chapter contains an interview with Cheick Sanankoua, Managing Partner, HC Capital Properties.

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ICT

Telecoms firms in Côte d’Ivoire are increasingly tap¬ping into opportunities stemming from increased connectivity. In parallel, the private sector as well as the government are applying tech-driven solutions for socio-economic development, and working to make Abidjan a regional centre in the industry. In 2018 the country’s ongoing growth in mobile money adoption sparked financial innovation, which, along with increased internet capacity, is expected to benefit the development of local content along with value-added services. However, stakeholders will need to dedicate more efforts to digitalising private and public structures in order to optimise the sector’s economic impact going forward. This chapter contains an interview with Serge Kouakou, Director, Orange Business.

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Tourism

The Ivorian government made tourism a priority in its National Development Plan 2016-20, and wants to make it one of the top-three contributors to GDP by 2020, with the goal of attracting up to 5m tourists by 2025. Moreover, the country ranks third in Africa for business tourism, behind Nigeria and Morocco. However, Côte d’Ivoire remains untouched by mass tourism, which could give it a unique advantage compared to other African desti¬nations, and enhance its attractiveness for tourists looking for authentic and preserved places. In this regard, the country is particularly conducive to niche tourism segments such as ecotourism. The improvement of connectivity to the country’s interior, especially via the rehabilitation and construction of a quality road network and additional health infrastructure, is a prerequisite to the development of leisure tourism outside the business district of Abidjan.

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Health & Education

A renewed focus on health has brought with it a number of improvements. The authorities have rehabilitated hospitals and health centres, developed technical platforms for facilities in line with international standards and improved access to services. Although main health indi¬cators have improved significantly over the years, challenges remain with regard to maternal, neonatal and infant health. The universal health care plan is set to improve provision, with commitments to boost operational infrastructure, increase the work¬force and manufacture more local generic pharma¬ceutical drugs. Education has also become a national priority. Despite a demographic boom, the implementation of compulsory schooling and increased federal spending on education testifies to the will to improve the education system. Many challenges remain, however, as educational institutions struggle to absorb a rapidly growing youth population and equip them with the skills needed in the labour market. This chapter contains an interview with Eugène Aka-Aouélé, Minister of Health.

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Tax

In conjunction with EY, this chapter explores the taxation system and Côte d’Ivoire’s efforts to build an investor-friendly environment. It also contains a viewpoint with Jean François Albrecht, Country Managing Partner; and Eric N’guessan, Country and Regional Tax Leader, EY.

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Legal Framework

This chapter introduces the reader to the different aspects of the legal system in Côte d’Ivoire, in partnership with Bilé-Aka, Brizoua-Bi & Associés. It also contains a viewpoint with Joachim Bilé-Aka and Michel K Brizoua-Bi, Founders, Bilé-Aka, Brizoua-Bi & Associés.

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The Guide

This section includes information on hotels, government offices and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress code, business hours and electricity.

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Table of Contents

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