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Country Commercial Guides FY 1999: Cote d'Ivoire

I. EXECUTIVE SUMMARY

This Country Commercial Guide (CCG) presents a comprehensive look 
at Cote d'Ivoire's commercial environment, using economic, 
political and market analysis.  The CCG's were established by 
recommendation of the Trade Promotion Coordinating Committee 
(TPCC), a multi-agency task force to consolidate various 
reporting documents prepared for the U.S. Business Community.  
Country Commercial Guides are prepared annually at U.S. Embassies 
through the combined efforts of several U.S. Government Agencies.

1. Overview

Cote d'Ivoire has the third largest economy in sub-Saharan 
Africa, after giant South Africa and Nigeria.  Since the 
devaluation of the CFA Franc in 1994, the country has 
demonstrated strong, sustained economic growth, much as it did in 
the 1960's and 1970's, when it was known as one of the region's 
few success stories.  Real GDP growth has been approximately 7 
percent for three years in succession, and the strong growth is 
likely to continue in 1998 and 1999.  


The spur provided by the 1994 CFA devaluation increased aid 
flows. Solid macroeconomic policies, and beneficial international 
commodity prices have brought steady growth and commercial 
confidence.

Cote d'Ivoire has finally turned the corner on its daunting debt 
problem and put its international finances in order:  In the 
first four months of 1998, Cote d'Ivoire reached agreement with 
the IMF and World Bank on a new 3-year program, and the Bretton 
Woods institutions approved Cote d'Ivoire's inclusion in the new 
debt forgiveness initiative for heavily-indebted poor countries 
(the HIPC initiative).  Conclusion of the IMF agreement has 
allowed Cote d'Ivoire's Brady-type debt restructuring with the 
London Club of commercial bank creditors to go forward.  
Likewise, a new Paris Club agreement with the country's official 
creditors was signed in April 1998.  

Inflation continues to be under control.  The post-devaluation 
inflationary spike of 32 percent in 1994 has given way to 
relatively low inflation rates:  3.5 percent in 1996 and 5.2 
percent in 1997.  Absent a precipitous drop in cocoa or coffee 
prices, there is no looming threat to the country's current 
business boom.

2.  Commercial Environment

While Cote d'Ivoire remains open and hospitable to trade and 
investment from the United States, its traditional ties to France 
(and Europe), its almost exclusive use of the French language, 
business laws and practices, the country's relatively small 
market size, and its distance from the U.S. are all factors which 
have limited U.S. business relationships here.

Projected figures for 1997 indicate that the Ivorian import 
market amounted to US 2.71 billion (CFA Franc 1,588 billion).   
U.S. exports were estimated at US 154 million, representing 5.6 
percent share of Ivorian trade, occupying the third place.  
France was the major supplier with a 27 percent share and Nigeria 
was second with 17 percent, consisting almost entirely of crude 
oil.  Principal U.S. exports included telecommunications, oil 
production equipment, agricultural commodities, plastic  
materials and resins, paper and paperboard.  Since  the 
devaluation, many importers are taking a greater interest in 
sourcing from the United States, with Asian countries gaining 
ground in mass consumer goods.

3.  Major Business Opportunities


The sectors which are of major interest to U.S. business include: 
agriculture and food processing; offshore oil and gas 
development; telecommunications; generic pharmaceutical products; 
reconditioned industrial equipment; cosmetics; and used clothing. 
 Currently, U.S. companies participate in all of these sectors.  
Opportunities exist for expanded U.S. exports and investment in 
these and other areas.  Competition will be strong, however, as 
France, and French/Ivorian ventures significantly influence local 
commercial activity.  One breakthrough which is likely to 
facilitate U.S. trade with Cote d'Ivoire is the recent 
inauguration of the first regularly scheduled liner service for 
break bulk cargo between the U.S. and Abidjan.  The service runs 
from Houston and New Orleans to West Africa every two weeks.

4.  Embassy Assistance

The Commercial Service (CS) is represented on a regional basis in 
Abidjan.  CS, the Foreign Agricultural Service and other U.S. 
Embassy elements stand ready to assist U.S. business 
representatives in their efforts to penetrate Ivorian and other 
West African markets

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