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Country Commercial Guides FY 1999: Cote d'Ivoire

IV.  MARKETING U.S. PRODUCTS AND SERVICES

1. Distribution and Sales Channels

In Cote d'Ivoire, there are 15 million people.  The ten major 
population centers are: Abidjan (2.5 million), Bouake (453,000), 
Korhogo (387,947), Daloa (361,472) Man (286,860), Yamoussoukro 
(284,613), Abengourou (214,162), Bondoukou (175,632), Odienne 
(169,433), and San Pedro (168,174), the second seaport.  Many 
banks, insurance companies, wholesale distributors and 
supermarkets maintain branch operations in these centers.  Inter-
city buses service these cities through a modern road network.  
Most financial transactions are undertaken in these urban centers 
through the banking network and postal service. 
  

The principal method of selling are: wholesale, retail outlets 
(either in the local market or an established chain), a direct 
sales force, an agent or distributor, selling through established 
wholesalers or dealers, and selling direct to the government, 
cooperatives, and other indigenous organizations.  The common 
forms of business organizations adopted in Cote d'Ivoire are 
discussed in Section 6 below.  It would be wise for the exporter 
to consider the requirements of the product and its potential 
market before choosing a distribution channel.

2.  Use of Agents/Distributors; Finding a Partner

There are no laws requiring the retention of a local agent or 
distributor for a foreign company exporting to Cote d'Ivoire.  
However, it is strongly suggested that a company attempting to 
penetrate the market retain a person or persons resident in Cote 
d'Ivoire.  An agent or distributor should possess a thorough 
understanding of the economy and be fluent in French.  If the 
exported product requires servicing, qualified personnel and a 
reasonable inventory of spare parts must be considered.  
Exporters should be aware that agents and distributors commonly 
represent several product lines, therefore need to have 
appropriate literature and document in French for better 
communication with potential customers.  European competitors 
inevitably market their geographic proximity as a competitive 
advantage; they are often able to provide a technician or part on 
a short notice.  Failure to adequately address the issue of after 
sales support has limited U.S. marketing success in Cote 
d'Ivoire.

Prior to committing to a long-term relationship, exporters should 
visit Cote d'Ivoire to gain first-hand knowledge of the country. 
 The U.S. Commercial Service can help exporters locate agents and 
distributors through the Agent Distributor Service (ADS) program 
and Gold Key.  Information regarding this program is available 
through the Commercial Service Export Assistance Centers located 
in all 50 states and Washington, D.C.

3.  Franchising

Franchising is not commonly practiced, except for car rental and 
fast food restaurants.  There is a strong potential for other 
franchising arrangements as Ivorian consumers are getting 
accustomed to modern lifestyles. The latest example of 
franchising occurred recently  with the opening of the French 
Tati store, a French store specialized in low-income clothing and 
garments.  Other franchising arrangements are expected in the 
near future.

4.  Direct Marketing: Wholesalers and Retailers


Many of the goods sold in the Cote d'Ivoire pass through 
wholesale organizations, some of which are oligopolies.  Examples 
include: alcohol and tobacco products, pharmaceuticals, and wheat 
and flour.  Wholesale establishments and modern retail outlets 
are concentrated in Abidjan.  These include the company 
headquarters, branch banking and insurance operations, 
supermarkets, car dealerships and speciality stores.  Both within 
and outside of Abidjan, most of the small-scale retail outlets 
are individual proprietorship operations that lack 
specialization.  The "general store" concept, stocked with a wide 
variety of goods, is common outside of Abidjan.  The Lebanese 
community for the most part dominates importation, wholesale 
distribution and medium/large scale retail outlets.

5.  Joint-Ventures/Licensing (See section 6 below).

6.  Steps to establishing an office

One of the goals of the newly created Ivorian Investment 
Promotion Center (Centre de Promotion des Investissements en Cote 
d'Ivoire, CEPICI) is to guide the entrepreneur through the local 
business registration process. This includes handling the 
necessary formalities of registering, incorporating, and 
modifying or dissolving a local company.  CEPICI was established 
in February 1995 as a one-stop shop for economic, commercial and 
investment information for entrepreneurs interested in starting a 
business or investing in Cote d'Ivoire.  The Center's mission is 
two-fold: 1) to promote investment in Cote d'Ivoire and 2) to 
facilitate and highlight any economic activity likely to 
contribute to the development of Cote d'Ivoire.  The CEPICI also 
monitors Cote d'Ivoire's program of scheduled privatizations.  

Prior to establishing a business entity in Cote d'Ivoire, it is 
advisable to consult a local attorney.  There are four common 
forms adopted by businesses in Cote d'Ivoire.  In any of these 
forms, the non-Ivorian may hold 51 percent or more of the 
company's assets.  Exceptions to a non-Ivorian holding occur on 
an ad hoc basis and are usually mandated by government decree. 
The four common forms adopted by businesses are:
 
Joint Venture (Association et Participation): Joint ventures are 
allowed in Cote d'Ivoire and may take any of the forms listed 
below.

Branch of a Foreign Company (Succursale):  Branches of foreign 
companies may not be established until they are registered with 
the Tribunal de Premiere Instance.  Once registered, the branch 
is regarded as an Ivorian judicial entity and is legally 
independent of the parent company.


Limited Liability Company (Societe A Responsabilite Limitee - 
SARL):  All SARLs must have a minimum capital of approximately 
USD 900 (CFA/F 500,000) and at least two shareholders.  No share 
certificates are issued.

Stock Corporations (Societe Anonyme - SA): In order for a 
corporation to be formed, it must have at least seven 
shareholders.  Each share must have a value of at least 
approximately USD 10 (CFA/F 6,000) and a minimum capital 
requirement of approximately USD 2,000 (CFA/F 1,200,000).  
Directors' meetings are required on a regular basis.  If a 
corporation has share capital below approximately USD 4.2 million 
(CFA/F 2.5 billion), there is a stock registration tax of one 
percent of the value of the stock for the company.  For 
corporations with capital valued above CFA/F 2.5 billion, the 
registration tax is less than one percent.

Other business forms include regional offices, sole 
proprietorships, local agency or distributorship arrangements, 
and various entities which are similar to limited and general 
partnerships and state-owned or partially government-owned 
companies.  

All business entities must register with the Commercial Registry 
within 30 days of commencement of activity.  If the SARL or SA is 
the chosen form, the following must be filed with the Commercial 
Registry:  a copy of the company by-laws, the minutes authorizing 
the establishment of the company (SA form only), and the name of 
the manager (SARL) or director (SA).  Companies must submit an 
annual balance sheet and profit and loss accounts to the Ministry 
of Economy and Finance.  Other periodic filings are required as 
is publication of specific information in the local press.

Business entities must file a Declaration of Commencement of 
Business with the Tax Department of the Ministry of Finance and 
the Economy, the Labor Department and the National Social 
Security Fund.  If the entity contemplates the importation or 
exportation of goods or materials, it must register as an 
importer or exporter with the Department of External Trade of the 
Ministry of Commerce and Industry.

The prior permission of the Office of External Credit and Finance 
in the Ministry of Finance and the Economy must be obtained for 
all equity investments and loans which originate from a country 
outside the CFA franc zone.  Approval is routinely granted, 
generally within a few weeks.

7. Selling Factors/Techniques

Cote d'Ivoire maintains strong historical, cultural and economic 
links with France and Europe in general.  The Ivorian attitude 
toward conducting business with U.S. firms is best described as 
tentative, mostly due to language and cultural barriers.  It is 
critical, therefore, that U.S. companies establish and maintain a 
high level of personal contact within Cote d'Ivoire; it is 
generally not possible to mount a successful enterprise via 
telephone or fax contact alone.  Yet despite a differing business 
style, Ivorians appreciate the role the U.S. plays in world 
affairs, welcome U.S. products and wish to encourage U.S. 
investment in Cote d'Ivoire.  There is a clear desire, however, 
for business to be conducted with Ivorian partnership in mind, as 
there is still some residual suspicion of large foreign 
businesses which is rooted in the excesses of the colonial and 
neo-colonial past.  Increasingly, young Ivorians are now 
considering a U.S. university education versus a European one.  
Young generations are exposed to the American culture (sports, 
films, technology, general consumer goods, and business).  
Exposure of the future work force to U.S. culture, business and 
English will help to further U.S. business interests in the near 
term.

Ivorian values are more traditional than those of Americans. This 
tendency extends to business dealings as well.  People are 
extremely polite; it is customary to greet everyone you meet.  
Even a long term partner or business contact is usually greeted 
with an exchange of pleasantries, followed by a handshake and 
inquiries about one's health, family and relatives.  While coming 
to the point directly is admired in American culture, Ivorians, 
tend to be more laid back and patient and in fact may find the 
aggressive "American style" disturbing.  Ivorians prefer regular, 
face-to-face contact; in fact, personal visits are warmly 
welcomed.  While visits may not be the most efficient or 
inexpensive method, it is generally regarded as the most 
effective method of handling new trade initiatives.  For 
Ivorians, trust in a business relationship is paramount and 
cannot be achieved sight unseen. The cornerstone of a successful 
business relationship is to adapt to a pace of business and life 
that is more moderate than in the U.S. 

The Lebanese community plays an important role in Ivorian 
business.  They are receptive to U.S. products and company 
representatives and are generally more conversant in English.  
However, French is still their preferred language for business 
transactions. 

8. Advertising/Trade Promotion

Cote d'Ivoire's increasing role in business in the region has 
resulted in a more active center for marketing and advertising 
with more than ten major advertising agencies headquartered in 
Abidjan offering a full range of publicity and sales promotion 
services. Three agencies including Lintas, Nelson McCann 
Erickson, and Young and Rubicam are U.S. affiliates.  Lintas also 
has offices in 20 African nations.  Several agencies offer 
marketing research and video production services as well.  The 
Ivorian government has established a regulatory body called the 
Conseil National de la Communication Audio-Visuelle,(CNCA). This 
regulatory body  supervises all issues pertaining to ethics in 
audio-visuals particularly on advertising and message issues.  
Another regulatory body is established for all media, including 
newspapers, called Commission Nationale de la Presse, CNP.  This 
committee examines all applications for foreign advertising 
companies interested in doing advertising on Cote d'Ivoire.  

Advertising lineage has increased over the last two years with a 
diversity of advertising products and services including 
billboards for advertising messages, films, and video 
productions.  Paid TV stations such as Canal Horizons and TV5, 
and TVRO antenna programs (CNN, CFI, and others) are also 
offering TV programs. This year, the Ivorian government  
announced that it will privatize the second TV channel (TV).  
Other FM stations will soon be licenced to operate as well as 
several nearby rural and city radios throughout the country.

There are 18 regular daily and weekly news publications 
circulating in Cote d'Ivoire.  The most widely read daily papers 
are "Fraternite Matin", controlled by the Ivorian government and 
 "le Jour", controlled by private interests.  Although precise 
figures are impossible to produce, "Notre Voie", "Soir Info", and 
"Ivoir Soir" have roughly the same circulations and battle for 
third place behind "Fraternite Matin" and "Le Jour".  Ivorians
own more than 3 million television sets and 7 million radios. 
They are accustomed to consumer-oriented commercials and
advertising and public service announcements.  Contact
information for Ivorian media (print, radio and TV) is listed in
the Appendix E: Section 2  


Suppliers of imported products are expected to provide 
advertising and promotional support, particularly if it is a new 
product or brand.  Radio and television spots are commonly used 
as are posters, point of sale displays, coupons, and billboards. 
 Short films run at local cinemas is another popular medium for 
automobile and tobacco products.  Because of the lack of an 
exhibition center, trade fairs are sporadic but are a popular 
medium in reaching the Ivorian buyer.

Packaging is important to the Ivorian consumer.  Colorful 
designs, blister packs and small, reusable containers appeal to 
the consumer.  Extended shelf life in a humid climate are also 
important requirements.

9. Product Pricing and Credit

U.S. exporters will find that pricing in French Francs, 
especially repeat sales for deliveries over a six to 12 month 
period, will provide a substantial commercial advantage over 
quoting prices in U.S. dollars.(Major U.S. banks can provide 
foreign exchange services allowing the exporter to purchase 
forward options in order to effectively remove foreign exchange 
risk from the transaction.) C.I.F. quotations to an Ivorian port 
are more useful to Ivorian buyers than EX WORKS quotations.

Payment via confirmed irrevocable letter or credit is very 
desirable for U.S. exporters, particularly at the beginning of a 
commercial relationship. However, insistence on L/C payment terms 
may limit market penetration of the U.S. firm and may not provide 
for aggressive market growth vis a vis the competition. European 
suppliers effectively use buyer financing in the Ivorian market 
to accommodate customers and capture market share. Competitive 
credit terms are an important factor in purchasing decisions and 
may be part of an effective marketing strategy in the Cote 
d'Ivoire. 

Foreign competition often grants credits of 60 to 90 days for 
consumer goods and 24 months for machinery and equipment.  
European banks often quote liberal terms and may discount paper 
for their exporters who are pursuing long-term credits.

U.S. exporters may offer competitive terms to buyers while 
effectively mitigating commercial and country risk by insuring 
foreign receivables. The U.S. Export Import Bank (EXIM) will 
extend coverage for qualified buyers in the private sector of 
Cote d'Ivoire. Firms should contact EXIM bank or the nearest 
Export Assistance Center of the U.S. Department of Commerce to 
obtain information on financing of short term and medium term 
transactions.  Finance costs, based on U.S. rates, can usually be 
folded into the sale price and passed on to the buyer. Financing 
at U.S. rates is attractive to buyers in Cote d'Ivoire who would 
have to pay much higher rates to obtain commercial credit 
locally. Many private firms offer insurance policies for foreign 
receivables in addition to EXIM bank.

The Commercial Service can help exporters formulate sound credit 
policies applicable to local markets and credit information on 
individual Ivorian firms through the International Company 
Profile (ICP) program.  Information regarding this program is 
available through the Commercial Service Export Assistance 
Centers.  The cost of one report is US 100. Each report includes 
credit information on the foreign buyer and recommendations of 
the Commercial Service concerning the suitability of the firm for 
sound business relationships.  

10. Sales Service/Customer Support

Lack of after-sales support and service have been a principal 
reason for limited U.S. marketing success in Cote d'Ivoire.  It 
is especially critical for high-tech or heavy industrial 
equipment such as: computer hardware and software, 
telecommunications equipment, photocopiers, automobiles, and air 
conditioning/refrigeration units.  A central service telephone 
number and radio-dispatched technicians are commonly used by 
local firms.  French-language service manuals, frequent personnel 
training and a reasonable inventory of spare parts are also 
crucial.

11. Selling to the Government

The Ivorian Government periodically issues procurement tenders 
that are published in local newspapers and sometimes in 
international journals.  The tender board is usually the 
responsible ministry making the request.  Mostly, the "Bureau 
National d'Etudes Techniques et de Developpement" (BNETD) has 
acted as a "super ministry" on behalf of other ministries for 
World Bank and the African Development Bank (AfDB) financed 
projects. The procurement is typically financed by a multilateral 
lending institution such as the World Bank, the African 
Development Bank.  There is a charge to purchase the bid 
documents which are normally in French.  CS Abidjan provides a 
"Fast Track Service" for U.S. companies bidding on foreign 
government tenders.  This service helps them obtain bidding 
documents in a faster way. 

12. Protecting Your Product from Intellectual Property Rights 
Infringement


Cote d'Ivoire has signed two treaties: one in 1977 called the  
Bangui Treaty which provides for a regional system for the 
protection of intellectual property rights in the predominantly 
French-speaking countries of West and Central Africa; it is an 
extension of the Libreville Treaty of September 13, 1962, which 
focuses on industrial property rights including, patents, 
trademarks, industrial designs and models, commercial names, 
licenses, captions, and unfair competition. Each country with the 
 autonomous regime, can manage the creation, individualization 
and development of their products both internally as well as 
internationally. 

The African Organization for Intellectual Property ("OAPI") is 
the regional institution which handles all matters, other than 
judicial proceedings, arising out of or in connection with the 
application or interpretation of the Bangui Treaty.  Judicial 
actions are to be brought in the national courts of the member 
countries.  All rights to industrial property are filed with 
OAPI, whose headquarters are located in Yaounde, Republic of 
Cameroon.  Each of the member countries have local offices which, 
in theory, are capable of receiving filings of registrations, 
which are then valid for the entire region.

The member countries of OAPI are Benin, Burkina Faso, Cameroon, 
the Central African Republic, Chad, Congo, Cote d'Ivoire, Gabon, 
Guinea, Mali, Mauritania, Niger, Senegal and Togo.

In order to protect their trade marks, patents, American firms 
must take into account the above regulations and apply to the 
OAPI.

13. Need for a Local Attorney

It is advisable to consult a local attorney to ensure that the 
company is following all the appropriate laws and procedures with 
regards to employment  and other matters. Lawyers, "huissiers", 
and "notaires" are utilized very often for commercial matters.  
They are part of the judicial system.

The Ivorian legal system originates directly from the French 
system.  Pursuant to article 76 of the Ivorian Constitution, 
enacted by Law No. 60-204 of November 3, 1960, all legislation in 
effect in Cote d'Ivoire during the colonial period remained in 
effect in the new republic to the extent that it was not 
inconsistent with the provisions of the Constitution.  
Nevertheless, if there has been subsequent legislation passed in 
Cote d'Ivoire, then the French law in question is no longer 
applicable.  French  treaties, legal articles, and books are 
instructive and informative on general principles of law and are 
often used as a reference to determine points of Ivorian law.


All official documents, papers, contracts, court papers, 
corporate documents, must be in the French language. 

The labor laws in force in Cote d'Ivoire are considerably more 
burdensome than those that an American employer may be accustomed 
to practicing in the United States.  For example, expatriate 
labor contracts must be registered with the labor authorities and 
approved before such employees can be hired.  The law defines 
expatriate employees as any non-Ivorians.  In addition, all 
employees accrue, during the time with the company in question, 
certain statutory benefits and entitlement which may not be 
waived by contract.  The Ivorian courts have historically been 
viewed as favoring the employee in labor disputes.  Recent 
decisions, however, have demonstrated a retreat from harsh 
judgments against the employer.

While there have been some changes in the legislation, (such as 
the recently established right of a married woman to carry on a 
commercial operation without the approval of her husband), the 
commercial and corporate laws of Cote d'Ivoire are for the most 
part those that were in force in France prior to independence in 
1960.  Establishing a presence in Cote d'Ivoire for an American 
company is generally a more costly and involved procedure than 
that of the United States.  In addition, the law requires a 
business to provide certain corporate information on all its 
papers, letterheads, invoices, etc.  Again, consult a local 
attorney with regards to these matters.