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The Report: Cote d'Ivoire 2022

After achieving a region-leading economic recovery in the decade since political stability was established, future growth and industrialisation strategy will continue to be shaped by the National Development Plan 2021-25, which constitutes a holistic approach to achieving emerging market status and meaningful poverty reduction by 2030.

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Sections

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

Country Profile

Côte d’Ivoire has a range of natural resources and varied landscapes inhabited by a wide variety of peoples speaking different indigenous languages and practising distinct faiths. Despite the country’s complex political climate, Côte d’Ivoire has come a long way in recovering from a period of civil conflict that ended in 2011. Following a contested presidential election in 2020, the National Assembly elections of 2021 took place in relative calm, a pattern that will hopefully be repeated for the local elections of 2023 and the presidential election scheduled for 2025. Ahead of these ballots, the government has prioritised its ambitious reform agenda and worked to address the main roots of conflict in the country. This chapter contains a viewpoint from President Alassane Dramane Ouattara and interviews with Kandia Camara, Minister of State and Minister of Foreign Affairs, African Integration and Diaspora; and Franck Riester, Former Minister Delegate for Foreign Trade and Economic Attractiveness of France.

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Economy

Thanks in large part to renewed political stability, Côte d’Ivoire’s sustained high growth in the last decade ranks it among the best-performing countries in sub-Saharan Africa. The post-2012 period has been marked by ambitious public and private investment programmes, giving the economy substantial resilience. Reflecting global trends, growth was adversely affected by the Covid-19 pandemic; however, the country proved to be one of the most resilient in the region. In 2021 the World Bank and the IMF praised Côte d’Ivoire’s economic performance and pandemic resilience. The institutions noted remarkable pre-pandemic growth and a 7% rebound in GDP in 2021. Recovery efforts are expected to be sustained in 2022, with GDP growth forecast at 6%. This chapter contains a viewpoint from Solange Amichia, Managing Director, Investment Promotion Agency of Côte d’Ivoire.

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Banking

Côte d’Ivoire’s banking sector has played a key role in post-2012 economic recovery and growth, financing large-scale infrastructure projects, private sector industrial expansion, agricultural activity and the services industry. The banking sector has been competitive and this trend is expected to continue in the short term, with both traditional banks and non-bank players increasing their product offerings in an effort to attract customers. Against the backdrop of an enabling regulatory framework, the accelerating adoption of digital and mobile money services could see financial technology companies and non-bank financial institutions expand further into micro-loans, while traditional banks will likely continue to scale down their operational costs, particularly branch networks. This chapter contains interviews with Tiémoko Meyliet Koné, Former Governor, Central Bank of West African States; and Aymeric Villebrun, CEO, Société Générale Côte d’Ivoire.

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Capital Markets

The global inflationary environment is likely to impact monetary policy both in Côte d’Ivoire and across the West Africa region. The relevant authorities are aiming to tame price increases, potentially through tighter monetary policy. A predicted rise in the cost of credit, combined with an increase in prices of raw materials and oil, could negatively impact corporate growth dynamics, and in turn, affect stock market activity. Fortunately, while the first half of 2022 saw signs of stagnation, the momentum that drove market performance in 2021 is expected to continue. In addition to prospects of new company listings and increased transactions on the Bourse Régionale des Valeurs Mobilières, the regional exchange of UEMOA, forecasts are optimistic, projecting that the exchange will close the year with a market capitalisation of $11bn. This chapter contains an interview with Tardy Kouassiblé, Deputy Managing Director, Atlantique Finance.

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Insurance

Although the country’s insurance sector is progressing each year and has a substantial direct and indirect impact on the economy and job creation, the penetration rate – measured as premium relative to GDP – remains low. The factors contributing to the low penetration rate include a lack of public awareness and education about the industry as a whole. However, new opportunities are expected to arise due to economic progress and diversification in Côte d’Ivoire and the larger Inter-African Conference on Insurance Markets area. In order to increase the level of trust in the system, insurance companies will need to reassure consumers by upholding their contractual commitments and expediting claims settlement. This chapter contains an interview with Roland Ouedraogo, General Director, Sanlam Assurance Côte d’Ivoire.

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Energy & Mining

As the country returns to robust economic growth and its population expands, electricity demand is set to rise. At the same time, new offshore discoveries promise a brighter future for the hydrocarbons sector, while the renewables segment will be instrumental in helping Côte d’Ivoire achieve its clean energy goals and improve access in remote areas. Against this backdrop, demand for projects across the sector looks set to continue at a steady pace. Côte d’Ivoire’s mining sector is well positioned to continue its expansion, as a surge in exploration activity is taking place. As only a small fraction of the country’s mining area has been explored to date, there is significant growth potential in the years ahead. The government’s commitment to the sector bodes well for the future, while debate about updating the mining code show a receptiveness to industry and community concerns. Moving forwards, sustainability and awareness of mining’s impact on the environment will remain key priorities. This chapter includes an interview with John van Zuylen, CEO, African Solar Industry Association.

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Agriculture

Côte d’Ivoire’s agriculture sector, responsible for approximately one-fifth of GDP and employing two-thirds of the population, is a key part of the economy, as well as the social, cultural and political fabric. As the country begins rolling out the National Development Plan 2021-25 and pursuing environmental and sustainability goals for 2030 and beyond, the agriculture sector will be key to meeting development targets. The policy goals for the coming years include increasing the use of digital solutions, placing greater emphasis on in-country refining and processing of agricultural commodities, and ensuring more equitable distribution of the sector’s rewards. However, with high fertiliser and fuel prices impacting farmers in the first half of 2022, productivity and profitability are likely to face headwinds in the year ahead. This chapter contains an interview with Massogbé Touré, Group Director, Société Ivoirienne de Traitement d’Anacarde.

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Industry & Retail

By investing heavily in the development of the industrial sector and making national policy more favourable for private investment, the government has helped accelerate the growth of industry. Traditional sectors such as agriculture are being transformed as processing capabilities expand through the development of new industrial zones, adding greater value to the sector. Furthermore, international investment in the oil and gas industry, expected to grow substantially over the next decade, will be complemented by the ongoing development of the renewable energy sector. The country’s retail sector has expanded significantly in recent years, attracting foreign brands and seeing the emergence of a number of national retail companies. Greater formalisation could fuel retail sector growth as urbanisation encourages consumers to spend in supermarkets and shopping malls. However, much of the retail market remains informal, with low interest in formalising due to the high costs. This chapter includes interviews with Christian Schindler, Director-General, International Textile Manufacturers Federation; and Pascal Bordeaux, General Manager, CFAO Retail - Carrefour Côte d’Ivoire.

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ICT

Côte d’Ivoire is one of the most developed telecommunications markets in West Africa. Its mobile phone penetration rate was 162% in 2021 and continues to grow as Ivorians use multiple SIM cards to take advantage of promotional offers. There is strong competition between the existing mobile network operators, each of which has invested heavily in expanding and improving their coverage and services. As more affordable smartphone options enter the market and 4G and 5G services are rolled out, mobile internet usage and mobile money subscriptions will continue to grow. Expanded fixed-line internet infrastructure is also a key development, with a growing number of Ivorians signing up for fixed-line fibre-optic internet services. This chapter contains an interview with Fatoumata Bâ, Founder and Executive Chair, Janngo Capital.

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Construction & Real Estate

Following the outbreak of the Covid-19 pandemic in 2020 and its subsequent economic impact, Côte d'Ivoire's has construction sector helped the economy recover. There has been growing demand for residential properties to house the expanding middle class amid rapid urbanisation. Furthermore, industrialisation has increased the need for larger industrial zones and commercial centres, as well as an expansion of modern transport networks across the country. The real estate sector is growing at pace, with several residential and commercial projects planned for urban areas. However, the lack of housing for low-income families and difficulties in accessing finance have driven the development of informal housing. As the country undergoes urbanisation and industrialisation, there is an opportunity for officials to provide social housing with alternative financing options for informal workers and lower-income populations. The chapter contains an interview with Nicolas de Roquefeuil, General Manager, SETAO.

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Transport & Logistics

Continuing its recovery from the Covid-19 pandemic, Côte d’Ivoire’s transport and logistics sector is set to benefit from a wide range of new projects – from ports to airports, and railways to motorways. The National Development Plan (Plan National de Développement, PND) 2021-25 seeks to almost double the level of economic investment outlined in its predecessor, the PND 2016-20, and the transport sector is slated to assume a crucial role in promoting growth under the plan. With GDP expanding by an average of 8.3% per year between 2012 and 2019 – and the pandemic impacting Côte d’Ivoire less than many of its peers – economic development has occasionally outstripped the capacity of transport and logistics infrastructure. Getting the infrastructure network in-step with the country’s burgeoning needs is more crucial than ever, creating major new opportunities for investors. This chapter contains an interview with Laurent Loukou, CEO, Air Cȏte d’Ivoire.

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Tourism

Côte d’Ivoire aims to establish tourism as the third pillar of its economy, with a target of attracting 5m foreign tourists per year and creating 700,000 jobs in the sector by 2025. These goals seek to build on the substantial gains the sector has made since the political and security situation stabilised in 2012. Tourism has grown steadily in the subsequent years, with international tourist arrivals rising 10-fold in 2011-19. The sector’s contribution to GDP increased from 0.6% to 8.5% over that same period, indicating robust recovery. Despite the Covid-19 pandemic and the imposition of global travel restrictions in early 2020, the government is forging ahead with investment plans to establish Côte d’Ivoire as a regional tourist destination. This chapter includes an interview with Siandou Fofana, Minister of Tourism.

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Health & Education

After the return to political stability and peace in 2012, the health care sector has been an area of focus for the government and the private sector alike. In recent years, the government has worked to expand hospital infrastructure alongside universal access to health care. Greater regulation and integration of private sector players is also a top priority of the government, particularly given continuing gaps in access to care outside of urban centres. There has been significant progress on rebuilding the country’s education system, with various initiatives bearing fruit. This is evidenced by the number of new schools, the recruitment drive for teachers and legislation making school compulsory for children aged six to 16. In the longer run, the government seeks to expand the sector’s capacity by implementing innovative education technology solutions and encouraging students to explore technical and vocational education and training institutions. This chapter contains interviews with Pierre Dimba, Minister of Health, Public Hygiene and Universal Health Coverage; and Moussa Diaby, Director-General, Institut National Polytechnique Félix Houphouët-Boigny.

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Tax

In Côte d’Ivoire, the preparation of finance laws traditionally includes a consultation between the private sector and the tax administration. In this sense, there have been recent developments in the Finance Law 2022, which formalised the state budget for 2022. A tax annex was developed to support the economy and employment, provide a more balanced distribution of the tax burden, and strengthen the means of the state through improved tax mobilisation, governance and accountability. Thanks to the tax exemptions granted, more foreign investors may be able to invest in companies in strategic sectors and infrastructure projects with high growth potential, thus contributing to the modernisation of the economy. This chapter contains a viewpoint from Éric N’guessan, Managing Partner, EY Côte d’Ivoire.

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Legal Framework

The legal system in Côte d’Ivoire has historically proven to be highly adaptive, evolving to offer legal frameworks that facilitate the proper functioning of the economy. The recent introduction of regulations regarding remote work into the legal system illustrates the commitment of the government to amend laws in line with the evolving needs of the business community. Moreover, Côte d’Ivoire has increased its efforts to provide a secure climate for economic activity. The country joined the Organisation for the Harmonisation of Business Law in Africa, which resulted in the acceptance of the jurisdiction of the Common Court of Justice and Arbitration, the apex court for resolving disputes related to business law. This chapter contains an interview with Joachim Bilé-Aka, Managing Partner, Bilé-Aka, Brizoua-Bi & Associés.

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The Guide

The Guide contains listings of accommodation options in Abidjan and other regions of the country for both business and leisure travellers. Helpful information is provided on visa regulations and business etiquette, as well as public and private transport options for navigating the country during your stay.

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Table of Contents

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