Guidance

Overseas business risk: Cote d'Ivoire

Updated 22 February 2021

1. Overview

Emerging from a decade of political unrest, Côte d’Ivoire is contributing significantly to the economic development of the West African region due to its geographic location, diverse economy and infrastructure network. Côte d’Ivoire is the largest economy in the West African Economic and Monetary Union – WAEMU (also known by its French acronym, UEMOA) and the third largest in the Economic Community of West Africa States – ECOWAS (also known by its French acronym, CEDEAO) and accounts for more than 30% of the 8-member bloc’s GDP.

The economy has benefitted from prudent fiscal policies, monetary stability, rising public spending and structural reforms aimed at improving the business climate and encouraging public-private partnership.

Challenges remain, however. While the growth spurt – which looks set to continue over the coming years – has led to a modest decline in poverty rate, other human development indicators have been slow to improve, and economic inclusion is limited, particularly outside Abidjan.

In 2015, the World Trade Organization (WTO) ranked Côte d’Ivoire as 82nd largest goods exporter (97th importer) and 133rd commercial services exporter (87th importer).

In 2019, Côte d’Ivoire’s main exports to the UK were coffee, cocoa, crude rubber, fruit and vegetables. The UK’s main exports to Côte d’Ivoire included dairy products, eggs, cars and textile fibres.

Agribusiness (production, processing, distribution), manufacturing, healthcare and energy sectors represent important investment opportunities. The government wants to boost the industrial sector’s share of the economy and is looking into ways to increase raw material processing, as envisioned in the 2016 to 2020 National Development Plan (NDP). The financial sector remains vulnerable to government influence. The state owns or holds shares in several domestic financial institutions and continues to influence the allocation of credit.

In 2020, Côte d’Ivoire’s economic freedom score was 59.7, making its economy the 101st freest in the Heritage Foundation’s 2020 Index. Its score decreased by 2.7 points due to steep drops in scores for judicial effectiveness and government integrity. Côte d’Ivoire is ranked 9 out of 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional average and just below the world average. Its economy fell into the mostly unfree category in 2020 after four years within the moderately free group. Concerns remain over property rights, corruption and labour freedom. Notable successes are related to monetary freedom and management of public finances. However, structural reforms are still needed to improve the dynamism of the private sector.

The country’s ranking on the World Bank’s Doing Business index shows a steady improvement from 177 in 2013, 147 in 2015, 142 in 2017 to 110 in 2020. Major improvements are related to “getting electricity” (connecting businesses to the national grid), enforcing contracts and trading across borders. Dealing with construction permits, protecting minority investors and tax-related issues remain problematic.

The World Economic Forum’s Global Competitiveness Index Report (2015 to 2016) ranked Côte d’Ivoire 91 out of 140 countries, up 24 from 2014 to 2015. Côte d’Ivoire and Ethiopia (109) are the best improvers in Sub-Saharan Africa. Côte d’Ivoire has strengthened its institutions and improved its financial markets and domestic competition; however, problematic factors including access to finance, tax rates, corruption, inefficient government bureaucracy, and the inadequate supply of infrastructure persist.

Côte d’Ivoire’s growth slowed to 1.8% in 2020 due to the COVID-19 pandemic. In 2021, the country’s growth is projected at over 6%.

2. Politics

Côte d’Ivoire is a multi-party democratic Republic. The President is elected by popular vote for a 5-year term. The President appoints a Council of Ministers equivalent to the UK Cabinet, and a Prime Minister heads the government. The National Assembly (equivalent to UK parliament) members are elected by direct popular vote to serve a 5-year term.

79-year-old Alassane Ouattara won a controversial third term victory by a landslide in the October 2020 Presidential elections amid an opposition boycott and fears of post-election violence. Ouattara, who became president in 2011 and is popular amongst international donors, had previously ruled out standing for re-election, but the sudden death of the man he had chosen as his successor changed this. The main opposition parties consider the third term illegal, arguing that the country’s constitution limits Presidents to two terms.

Ouattara claims the 2016 constitution adopted by referendum reset term limits, allowing him to run again. The opposition also question the impartiality of the Independent Electoral Commission and the Constitutional Council, which validated Ouattara’s third term bid while rejecting 40 out of 44 rival applicants, including some of the President’s main challengers.

A series of deadly clashes between supporters of rival parties caused the death of almost a hundred people in the lead-up to the elections. The unrest revived memories of the post-electoral crisis that followed disputed polls in 2010, when around 3,000 people were killed and up to one million displaced as rebels backing Ouattara, the internationally recognised winner, clashed with forces loyal to the outgoing President, Laurent Gbagbo. The conflict ended when Ouattara took office after a military intervention, and Gbagbo was charged by the International Criminal Court at The Hague.

Historically, Côte d’Ivoire elections have always been sources of conflict and instability. However, despite their disagreements, in 2021 government and opposition are set to refrain from stirring up tensions and to engage in dialogue to end the political unrest that has gripped the country for years. The Ivorian Prime Minister, with representatives from the main opposition parties, is leading discussions.

Ex-President Laurent Gbagbo, acquitted by the International Criminal Court in The Hague a few months ago, is seeking to return to Côte d’Ivoire. As part of its peace and reconciliation efforts, the Ivorian government has agreed to let him come back and to lift all judicial proceedings against him.

Since 2011, the President has focused strongly on diversifying the economy. Ivoirian business people and government leaders are seeking new trading partners to grow Côte d’Ivoire’s investment base beyond its traditional trade and business partners of France and Lebanon. Côte d’Ivoire is focusing on infrastructure projects, job creation, and improving its business climate to win back investors after years of political paralysis.

The Ivoirian government understands that high growth rates are not sustainable without foreign investment and a strong local private sector. An improved 2018 Investment Code has replaced the 2012 Investment Code and offers incentives to foreign investors, including tax reductions and in some cases exemptions from value added taxes (VAT) on equipment for private investors. This code also includes planned industrial zones which offer benefits to investors such as special tax treatment for periods ranging from 8 to 15 years, depending on the location of the investment.

There are no significant limits on foreign investment nor are there differences in the treatment of foreign and national investors, either in terms of the level of foreign ownership or sector of investment. The 2018 Code provides an additional tax credit of 2% to any foreign investor with a workforce where 80% of executives and managers are Ivorian nationals.

3. Economics and Trade

3.1 Economics

Côte d’Ivoire is the economic hub of Francophone West Africa and was one of the world’s fastest growing economies prior to the global coronavirus pandemic, averaging close to 7% growth per year over the 2017-19 period. By the end of 2020, the Ivoirian economy decelerated to a 1.8% growth rate due to the global health crisis. According to the World Bank (WB) and the International Monetary Fund (IMF) respectively, growth is projected to revert to between 5.5 % and 6.5 % in 2021 with numerous downside risks, assuming global conditions gradually normalise. Recovery is strongly dependent on stable and booming foreign markets that benefit international trade.

The Ivoirian government’s priority towards increasing fiscal revenue through the newly enacted 2021 Tax Code will be unlikely to promote or boost internal consumption and investment. The pandemic seems to have exposed structural vulnerabilities linked to its low tax to-GDP ratio of 16%, intensifying the country’s reliance on external borrowing through money markets and export revenue. Côte d’Ivoire has developed and diversified its agricultural sector through cultivation of coffee, rubber, fruit, cotton and palm oil, in addition to cashew and cocoa, of which it is the world’s leading producer. Services consist primarily of transportation, travel and trade. Industry includes foodstuffs, beverages, wood related products, oil refining, gold mining, electricity, building materials and textiles.

In 2019, according to ONS, the top five commodities traded by Côte d’Ivoire were cocoa and cocoa preparations, mineral fuels or oils including distilled products, precious stones and metals, edible fruit and nuts, rubber and related articles. The main destinations for Côte d’Ivoire’s exports were the EU, the US, Burkina Faso and India; imports came mainly from the EU, Nigeria, China, and the US.

3.2 Trade

UK investors in Côte d’Ivoire include AgDevCo, Aggreko, British American Tobacco (Côte d’Ivoire), Crown Agents, Diageo, G4S, GlaxoSmithKline, Globeleq Holdings (Azito), Jaguar Land Rover, Price Waterhouse Cooper (PWC), Regus, Rolls Royce Marine, Standard Chartered Bank, Tullow Oil, Unilever, Vitol, Vivo and HMG institutions such as CDC group, PIDG and UKEF.

On 15 October 2020, Minister for International Trade, Ranil Jayawardena MP signed an Economic Partnership Agreement (EPA) with Her Excellency Sara Affoué Amani, Ambassador of Côte d’Ivoire to the United Kingdom in London. The agreement allows businesses to trade as freely as they did before the UK left the EU, without any additional barriers or tariffs - and provides a firm foundation from which both sides can further deepen their trading relationship and pursue common interests.

The total UK trade with Côte d’Ivoire was £401 million in 2019. The top imports from Côte d’Ivoire were cocoa beans and cocoa preparations (£192 million), edible fruit and nuts - mostly bananas - (£22 million). The UK market accounts for 23% of total exports of cocoa butter from Côte d’Ivoire, as well as 6% of bananas. On 1 January 2021, trading began under the Africa Continental Free Trade Area (AfCFTA) for countries that have ratified and submitted tariff offers. It is an epic step forwards in Africa’s regional economic integration.

According to a 2012 study from the UN Economic Commission for Africa, the AfCFTA could lead to a 52.3% increase in intra-African trade flows by 2022 compared to the baseline scenario. As at 15 January 2021, Côte d’Ivoire was among the 35 countries that have submitted their instruments of ratification. According to the World Bank report “The African Continental Free Trade Area: Economic and Distributional Effects”, Côte d’Ivoire has one of the largest trade costs on the continent and the implementation of the free trade zone would increase the nation’s income by 14%, the biggest gain forecast for all countries on the continent.

4. Business and human rights

The law provides for freedom of association. Workers, except members of the police and military, have the right to form or join trade unions, and to strike. The law also provides for the right to collective bargaining. Although child trafficking and child labour are illegal, children continue to be subjected to forced labour and dangerous conditions, particularly in cocoa harvesting.

The press is relatively free, albeit owing its allegiance to the multiplicity of political parties. Civil liberties are constrained by a lack of capacity in the security forces and judiciary.

Discrimination, sexual assault, and violence against women and children, including female genital mutilation, occur. Societal discrimination against the lesbian, gay, bisexual, and transgender community, persons with disabilities, and victims of HIV/AIDS remains. Côte d’Ivoire has signed the Declaration to End Sexual Violence in Conflict and has launched its national strategy to fight against gender-based violence in September 2014.

5. Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership to bribe anywhere in the world. In addition, a commercial organisation carrying on business in the UK can be liable for the conduct of a person who is neither a UK national, resident in the UK or a body incorporated or formed in the UK. In this case, it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

In 2020, Transparency International’s Corruption Perception Index ranked Côte d’Ivoire 104 out of 180 countries. The government appears to be making some progress in putting in place mechanisms to address these challenges. The High Authority for Good Governance has been operational since September 2014.

6. Terrorism and security

The Foreign, Commonwealth and Development Office (FCDO) advises against all but essential travel to within 40km of the northern border with Mali and Burkina Faso, to the Comoé national park area in the northeast border region and to within 20km of the border with Liberia.

Interpol’s Regional Bureau in Abidjan focuses on arms and drug trafficking, terrorism, human trafficking, and maritime piracy. Interpol Abidjan is located in the premises of the Direction de la Police Criminelle. See Interpol - Côte D’Ivoire (Contact: +225 27 20 22 96 21).

Please read the information provided on the terrorism page of the FCDO Travel Advice.

For advice on serious organised crime, visit the National Crime Agency.

7. Cyber security

Over the years, Côte d’Ivoire has developed a reputation for cybercrime and fraud. Specific legislation and regulation related to cyber security has been enacted. The implementation of Côte d’Ivoire’s cybercrime is on-going. The Telecommunication Regulatory Agency is responsible for implementing a national cyber security strategy, policy and roadmap for data protection and audit of information systems.

8. Commercial disputes

In 2012, the Abidjan Commercial Court (Tribunal de Commerce d’Abidjan) was created to handle business cases in order to improve the business climate. In 2013, it was upgraded to become the Commercial Chamber of the Court of Appeals. A plan to extend the court to cities other than the economic capital - Abidjan - has yet to be implemented. Companies operating in Côte d’Ivoire also have access to an arbitration framework, which recognises the decisions made by foreign arbitration centres.The country is a signatory of the New York Convention, which commits it to recognising arbitration decisions completed in other contracting countries.

Côte d’Ivoire is a member of various regional organisations such as the Organisation for the Harmonisation of Corporate Law in Africa (OHADA), ECOWAS, WAEMU, the African Intellectual Property Organisation and the Inter-African Conference on Insurance Markets. The creation and interpretation of laws must be done through the lenses of these organisations.

9. Intellectual property

Although the Ivoirian Civil Code protects intellectual property rights, this does not meet the standards established by the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). Weak law enforcement and the lack of custom checks at porous borders permit trade in counterfeit textiles, pharmaceutical products, consumer goods and vehicle parts. There is a functioning National Committee against Counterfeiting in charge of tackling piracy and counterfeit goods smuggling.

The Office Ivoirien de la Propriété Intellectuelle (OIPI) is the national liaison structure for the African Intellectual Property Organisation (OAPI, in French). It serves as the focal point for applications for patents, utility models and property rights (trademarks, industrial designs and trade names) within Côte d’Ivoire. The main industrial property rights infringements concern trade names. Artistic work is the leading copyright infringement. UK companies planning to export to Côte d’Ivoire are advised to apply for trademark and patent protection before entering into business in Côte d’Ivoire. Companies should seek advice from local experts in Ivoirian law and seek information with OIPI.

The Bureau Ivoirien Du Droit D’Auteur (BURIDA), the Ivoirian Copyright Office, is responsible for the collective management and protection of copyright and related rights in Côte d’Ivoire. Read the information provided on our intellectual property page. For more information on intellectual property fraud, see our fraud and international trade page.

10. Contact

Contact the DBT team in Cote d’Ivoire for further information.

For any query on trade and investments issues, please contact British.Embassy.Abidjan@fcdo.gov.uk.

11. Useful links

• Centre pour la Promotion des Investissements en Côte d’Ivoire
• Exporting to Côte d’Ivoire guide
• Guichet Unique du Commerce Extérieur
• Chambre de Commerce et d’Industrie de Côte d’Ivoire
• Confédération Générale des Entreprises de Côte d’Ivoire
• Tribunal de Commerce d’Abidjan
• Côte d’Ivoire Customs Directorate
• Côte d’Ivoire Tax Directorate