Economy of the Ivory Coast

The Ivory Coast is the most prosperous country of the free zone of West Africa: it accounts for of them with it only 36% of the money Supply. . Its economy is one of the most prosperous economies of West Africa, although fragile because based on export of raw materials and recently in suffering of the consequences of the civil war. The crisis of the Ivory Coast disturbed it in its dash, GDP knew a fall (the growth rate of the GDP which was of 5,7% in 1998 fell at 1,6% in 1999, then to 2,3% into 2000 before improving to reach -1,8% in 2002).

Forced inherited one period of sociopolitic stability and remarkable economic development, the economy of the Ivory Coast is an economy based on several resources. Occupying of the important places on a world level because of its agriculture diversified enough and effective (food, cultures of revenue, industrial crops), it, since the triangular trade, was always turned towards l exportation.

However, because of the events which have occurred since the year 2000, exports fell of more than 50% passing of 3.456 billion FCFA in 2002 to 1.417 billion in 2003. In same time the imports increased by 10% - 1.813 billion in 2002,2 046.000 in 2003. In addition to its perfomances agricultural, the Ivory Coast has an important industry, contributing to nearly 20% of its GDP.

In addition, the Ivory Coast remains a country with an underdeveloped economy, with a depth and an important severity of poverty. The inequalities remain very noticed. Poverty strongly worsened during the period preceding the crisis. The index of poverty passed from 32,3% in 1993 to 36,8% in 1995. In 2003, it ranged between 42 and 44%2 compared with 38,4% into 20023. The index of poverty in 2003 and 2004, compared to 2002, would be probably higher taking into account internal displacements of the populations, the disturbance of the systems of production and marketing and the degradation of the basic social infrastructures in certain areas. The inequality of the incomes was accentuated in 2002. The 10% of richest cumulated 36% of the national revenue compared with 20% for the poorest 50%.

The currency is the CFA franc whose parity with the Euro is fixed (1 euro = 655,957 F CFA).

History

Natural resources

The Wet Climate of the Ivory Coast, hot and , allows an abundant and varied agricultural production: Banana S, Pineapple, Rubber, Palm oil, Sugar, Cotton, Cocoa, Coffee, Gombo, Yam, Manioc, Cashew nut… country with important reserves of Oil. The Ivory Coast has also important a Production of electricity (it provides some even to its adjoining countries - Co). The country has important mining resources: Gold, Diamond, Iron, Copper… Source: Eco Current events - Ministry for the Economy and the finances

Coffee-cocoa

The Coffee - Cocoa, with the Origin of the " Economique" miracle; Years 1970, remains the symbol of the Pays.

Today after difficult moments of the fall of the courses, the die prepares with new a Départ: reorganized at the time of its liberalization in 1998 - 1999, it could not test the new structures put in Place because of the coup d'etat which struck the Pays at the same period.

The die makes live more than 5 million of the Ivory Coast, with 600.000 exploitations in Activité. It accounts for 40% of the export earnings and 20% of GDP. It constitutes with the Pétrole the pillar which made it possible the country not to sink in spite of the socio-policies difficulties. The challenges which await it are numerous.

The cocoa, whose Ivory Coast produces 40% of the worldwide production, is the economic main resource of the country. For the cocoa, the decision of Europe to authorize the introduction into the Chocolat of fat contents of vegetable origin to a total value of 5% reduced appreciably the demand for cocoa and penalized the producers, of which the Ivory Coast which had already suffered in the past from crises from overproduction.

Since its liberalization various structures were born:

Regulation funds and of Coffee-Cocoa control (FRC - DG Firmin Kouakou - Official site of the FRC)
Stock Exchange of Coffee-Cocoa (BCC)
ARCC
FDPCC

Infrastructures

The infrastructures of the country are developed largely than in the other countries of the under-area, in spite of a crisis which prevented their regular maintenance or their development.

Transport

August 1st

Railway network and truck driver

The road Réseau extends on more than 70.000 kms of classified roads whose 6.500 kms are bituminized and 150 kms Autoroute. It allows a fluid circulation of the Marchandise S, as well within the country as with the adjoining countries (Ghana, Liberia, Mali, Burkina Faso…).

The railway network is long of 1260 kms and connects the country to the Burkina Faso and the Niger. Sitarail exploits the railway line Ivory Coast - Burkina Faso. A vector of essential opening-up for the neighbors of the under-area: 1 million tons of goods thus were convoyed in 2006.

Ports

See also: Port authority of Abidjan, Wearing of San-Pedro

The ports of Abidjan and San-Pedro are competed only by that of Durban (South Africa). They count modern equipment which allows in particular approvisonner the worldwide wedged of the Région.

Telecommunication

See also: Telecommunications in Ivory Coast, RASCOM

Telecommunications are largements developed: Internet (in particular thanks to fiberoptic) and especially the mobile Téléphonie were spread in all the Pays.

Media and Telecommunications

The Téléphonie Mobile remains the Locomotive Secteur: four operators (Orange, MTN, Moov, Koz) are present on the Marché, three others should be established soon. Alone, they cumulate a Sales turnover of more than 800 Million S of Euro.

Internet remains confidential in term of private customers, but the quality of the infrastructures makes it possible to reach a Taux Croissance with two digits.

The Ivory Coast count nearly about fifty Quotidien, several radishes public and private (Fréquence 2, the Main road, Radio Jam, Nostalgie, Africa n°1…). Hertzian television of the Ivory Coast is exclusively public and counts four chains: the First, TV2, RTI Music TV, RTI Sport TV.

The sector of the Publicité , a long time accustomed to a very enviable situation in sub-Saharan Africa, resisted also overall, in particular those which knew to rest on the Réserve S accumulated during good the Année S. a profusion of billboards testifies to a somewhat anarchistic dynamism, on which the Autorité S try to put a Frein.

Structure

the distribution of the GDP in 2006 :

Growth rate by sector :

GDP: 9.172 6 Billion
Growth rate real: 1.2%
Primary sector: 5.3%
Secondary industry: -6.2%
Tertiary sector: 1.9%

The primary sector profits from the rise of Production, while the secondary industry is always in Souffrance, in particular the Industrie Textile, which undergoes the combined effects of the crisis (the Coton was mainly produced in north) and of international competition. The tertiary sector is maintained relatively with a growth positive Faible but.

Primary sector

Agriculture

With nearly 25% of the GDP (in 1998), agriculture is the first activity of the Ivory Coast. Thanks to the effectiveness in this sector, C^te d' Ivoire occupies today the first world producer of Cacao (1,2 million tons), the third of Coconut and the fifth of Café (200 000 T) especially of the robusta. The other important productions for export are the palm oil (250 000 T), the Coton (380 000 T), the rubber (100 000 T), the Banane S (220 000 T) and the Ananas (150 000 T).

The Ivory Coast is also an important exporter of tropical Bois (2 million m3 in 1997), mainly by the port of San-Pedro in the west of the country.

Its economy which depends primarily on the courses of the raw materials suffers from the Dégradation of the terms of trade between north and the south.

The food crops were also developed, in particular the banana plantainle, the corn, the taros, Riz and the Soja, however the country remains an importer Net out of cereals. It is self-sufficing in Manioc and Igname. Except the food crop, its agriculture is present also in the commercial culture: 1,3 million T. of seeds of palm, 1,2 million T. of cane with sugar, 75.000 T. of nut of cola, 21.000 T. of cashew nut, 116.000 T. of natural rubber, 10.000 T. of tobacco, 8.700 T. of mangos.

Secondary industry

Quite naturally industry of the Ivory Coast was born from the will to transform balance a good part of the products of agriculture. Approximately, today manufacturing industry dominates to 80% the secondary industry which provides one year to the other a little less than 25% of the GDP. Construction industry count for 10% while energy and the mines account for 15% of the sector. Industry employs 100.000 people working in some 700 companies. Most important of those raise of the National federation of the industrialists of Ivory Coast.

Of a single diversity and a vitality in this part of the world, industry of the Ivory Coast was very reached - in good and evil - by the effects of the devaluation of January 1994. The companies important much of inputs coming from the countries of North were seriously touched, at the same time by the increase in the imports and the contraction of the inner demand. On the other hand exporting industries - instant coffee, salad oil, fruit and canned fish, cosmetics, drinks, textile etc - knew a durable clearing since, traditionally competed with on the markets of under area by exports of North, the products of the Ivory Coast consequently appeared very competitive, with equal quality.

Oil

The president Felix Houphouët-Boigny always forsook the mining sector thinking mineral l exploitation would cause conflict. In 2007 oil exports became the first financial resource of the country. Oil is extracted at sea by Canadian Société S and of the Ivory Coast (SIR,…).

Recent, the oil production is of 89.000 barrels per day in 2006. Thanks to the exploitation of new sites and with the technical improvement of extration, it is envisaged to reach 110.000 Baril s/jour in 2008. One estimates at 100 million barrels of oil reserves of the Pays. The Europe absorbs more than 50%, the remainder is exported with the the United States and in China. but in spite of that the Ivory Coast for a few years has managed to have some factories like the indistruelle zone of yopougon and vridi.

Mining sector

As for oil this sector was forsaken. The country abounds in raw material layers such as the Gaz, l´ gold (1.5 ton of gold extracted in 2006), l´ Uranium, the Diamant, the Cobalt, the Manganèse, the Cuivre, the Bauxite, the Fer, and the Nickel.

Gas reserves naturalness are estimated at 30 billion m³. In 2004, the country produces 1.5 million m³, exclusively dedicated to the domestic Marché and the electrical production.

The electric production of the Ivory Coast is of thermal origin (60%) and hydraulics (40%). The principal producers of thermal electricity are Azito and Ciprel. The hydraulic sites of origins are Ayame I and II, Kossou, Taabo, Buyo and Grah. In 2006, the Ivory Coast produces 5.507 GWH.

Tertiary sector

More half of the GDP of the Ivory Coast (54% of GDP in 2006 comes Tertiary sector.

Banks

In spite of seven years of strong deceleration, the country always counts on the banking network more developed West Africa, with a score of banking companies. Much slowed down their activities of Crédit S because of an unstable situation, but. Encouraging signs are to be observed side of the BRVM which gathers the countries of UEMOA. It records a rise of 51.5% of its capitalization in 2006, that is to say 4 Mds of Euro S.

Although the economy of the country is not based by on the banks, this economy has a banking structure diversified with several banks, in particular: Company Of the Ivory Coast of bank, Hudson&Cie, SGBCI, BICICI, etc

Insurances

The Assurance S did not suffer from the crisis, the sector releases a sales turnover of approximately 200 million Euro S. the principal insurance companies are the Colina, NSIA, AXA, LMAI, AGF, Honest the…

The company Honest the car its pin of the play by posting the highest rate of Growth of the sector (of which chairman is Bernard ESA Abouo ). This large success of Honest the , the " Yako" product; , insurance Obsèque S, which found an echo unexpected since the foreigner: the Diaspora of the Ivory Coast was interested in the Produit in order to ensure the members of the Famille remained in Ivory Coast.

Real estate

The Ivory Coast is one of the rare countries of sub-Saharan Africa which can be pressed on a true market local, in addition to the Diaspora which represents between 25 and 40% of the purchasers. The Demande is strong, but the financings of Projet S remain insufficient. The largest needs relate to the social Logement, but the middle-classes and easy are also applicants of adapted programs. SICOGI has existed for more than forty years and is one of the leader of the sector.

Tourism

The Stock Exchange

BRVM is the purse of West Africa is based with Abidjan. It is dominated by the companies of the Ivory Coast then sénégalaises.

Abidjan Stock Exchange plays a part regional, since the values of other countries of the West Africa are with dimensions there.

Companies

See also: List of companies of the Ivory Coast

Diaspora

It is estimated that the Diaspora of the Ivory Coast represents a community of approximately 75.000 people in France without counting those of the other countries of Europe (Belgium, Suisse, Germany, Great Britain, Italy…), and those of North America (Canada, the United States). In normal weather, and especially in times of crisis, its role is essential. It provides a true support for the families remained for the Pays, but also for the whole of the economic activity. For certain sectors, it constitutes a considerable Pourcentage of the customers of the companies.

Investors

The Ivory Coast trade with all the countries of the World and acceueille in its Center an impressive mosaic of Culture S and nationalities. But the advantage of the investors is that the Ivory Coast is a regional power which opens the Marché S of under area.

At one time or the Ivory Coast is rebuilt, the needs are enormous, and the authorities more accessible than ever. The structures do not miss for the reception: CEPICI (Center of promotion of the investments in Ivory Coast), the Room commercial and industry (CHAMCO - official site), the Room commercial and French industry in Ivory Coast (CCIFCI - official site).

Foreign influences

Europe fixes the value of the currency, the CFA franc, which has a fixed convertion rate with the euro (1euro= 655.57 FCFA). Although the economy of the country is still mainly held by the French investments, those are much less important than than one could believe: 3,5 billion euros. They have in fact much decreased since Sucden (Sugars and food products) was made supplant by American Philbro for the control of the raw materials of Ivory Coast. The number of French expatriates thus passed from 50.000 to 16.000 of the Années 1980 at the beginning of the Années 2000.

Thus France is nothing any more but the second supplier of the Ivory Coast, behind the Nigeria (26 and 20% of the imports of the Ivory Coast), and if it remains the first customer, it does not absorb nothing any more but 14% of exports of the Ivory Coast.

The Ivory Coast is member of the economic Union and monetarist West African

References

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