Executive Summary

Cote d’Ivoire offers fertile soil for U.S. investment, and the Ivoirian Government is keen to deepen its economic cooperation with the United States. The investment code is considered generous with incentives and few foreign investor restrictions. According to the most recent numbers available, in 2016 U.S. direct investment in Cote d’Ivoire rose by 68.2 percent to 185 million. The most fruitful areas of investment for U.S. businesses are in oil and gas exploration and production; agriculture and value-added agribusiness processing; power generation and renewable energy; and infrastructure. Improvements in the business environment include a one stop shop for registering businesses and the implementation of a single user identification number for business creation. Legally, complaints to the Commercial Court of Abidjan, rulings from the Commercial Court, and electronic land registration are now available online.

Following a credible and peaceful election in 2015, in which President Ouattara was overwhelmingly reelected to a second term, a new constitution was adopted in 2016 and a new Senate was established in April 2018. Legislative and municipal elections are planned for the last quarter of this year. The country‘s political stability will face serious challenges as the 2020 presidential elections approach. Economically, Africa’s second fastest growing economy since 2012 is experiencing rapid progress in all sectors. As the largest economy in francophone Africa, Cote d’Ivoire attracts migrants and outside investors. The IMF expects GDP growth to continue at 7.3 percent in 2018, led by growth in the industrial and service sectors.

Despite the country’s progress, challenges remain for investors. Although foreigners and foreign interests were not targeted, soldier mutinies in January, February, and May 2017 paralyzed the country, renewing worries about political stability. To resolve the crisis, the government acceded to most of the soldiers’ demands for bonuses and back pay, and by promising to refocus its efforts to reform the military. Despite these promises security sector reform remains incomplete. The government has been slow to make real progress on national reconciliation and impartial justice, undermining the full consolidation of democracy. Cote d’Ivoire suffered its first terrorist attack in March, 2016 on the beaches of Grand Bassam, for which Al Qaeda in the Islamic Maghreb claimed responsibility. Ivoirian security forces responded quickly, however, demonstrating the capacity of the country’s special operations units has improved over the past few years.

According to accounts from investors, doing business with the government remains a significant challenge. The government has awarded a number of sole source contracts without competition, at times disregardingevaluations on competitive tenders. A complicated tax system requiring numerous individual payments, and the slowness and lack of transparency in government decision-making hinders investment. In August 2017, the Appeal Court of the Commercial Court of Abidjan was created, and other commercial jurisdictions will be progressively established throughout the country. The Office of Taxation has established online declaration and payment of taxes in order to expand the tax base, decrease opportunities for corruption, and improve fiscal transparency.

Legally, women do not face restrictions on investment development, but have historically faced discrimination and a lack of access to credit that has hindered their extent of ownership.

Table 1

Measure Year Index/Rank Website Address
TI Corruption Perceptions Index 2017 103/175 http://www.transparency.org/
World Bank’s Doing Business Report “Ease of Doing Business” 2017 139/190 http://www.doing
Global Innovation Index 2017 112/127 https://www.globalinnovation
U.S. FDI in Partner Country (M USD, stock positions) 2016 USD 185 http://www.bea.gov/
World Bank GNI per capita 2016 USD 1,520 http://data.worldbank.org/

Policies Toward Foreign Direct Investment

The government actively encourages Foreign Direct Investment (FDI) and is committed to doubling foreign investment over the next several years. Foreign companies are free to invest and list on the regional stock exchange (BRVM), which is based in Abidjan and dominated by Ivoirian and Senegalese firms. With the inception of the regional exchange, the West African Economic and Monetary Union (WAEMU) members established the Regional Council for Savings and Investment, a regional securities regulatory body.

In most sectors, there are no laws that limit foreign investment. There are restrictions on foreign investment in the health sector, law and accounting firms, and travel agencies. Although there are regulations designed to control land speculation, in urban areas foreigners own significant amounts of land. Free-hold tenure in rural areas is difficult to negotiate and inhibits outside investment. Land tenure disputes exist all over the country, owing to the lack of formal private land ownership in most areas. Most businesses, including agribusinesses and forestry companies, circumvent this by acquiring long-term leases. Companies that wish to purchase land must have the property surveyed before obtaining a title. Surveying is tightly controlled by a small group of companies, and can often cost more than the value of the parcel of land.

Cote d’Ivoire’s investment promotion agency, the Centre for the Promotion of Investment in Cote d’Ivoire (CEPICI), facilitates foreign investment, and its services are available to all investors. CEPICI provides its services through a one-stop shop to facilitate business creation, operation, and expansion; requests incentives in the investment code and for access to industrial land; promotes and attracts national and foreign investments; has an action plan to improve the business climate; and serves as an exchange platform for the public and private sectors. More information is available at http://www.cepici.gouv.ci/ 

Cote d’Ivoire maintains an ongoing dialogue with investors through various business networks and platforms, such as CEPICI, the Ivoirian chamber of commerce (CCI-CI), the association of large enterprises (CGECI), and the bankers’ association (APEBF-CI).

Limits on Foreign Control and Right to Private Ownership and Establishment

Foreign investors generally have access to all forms of remunerative activity on terms equal to those enjoyed by Ivoirians. The government encourages foreign investment, including in the privatization of state-owned and public firms, although in most cases the state reserves an equity stake in the new company.

There are no significant limits on foreign investment, nor are there legal differences in the treatment of foreign and national investors, either in terms of the level of foreign ownership or sector of investment. There are no laws specifically authorizing private firms to adopt articles of incorporation or association that limit or prohibit foreign investment, participation, or control, and no such practices have been reported.

Banks and insurance companies are subject to licensing requirements, but there are no restrictions designed to limit foreign ownership or to establish subsidiaries of foreign companies in this sector. Investments in health, law and accounting, and travel agencies are subject to prior approval and require appropriate licenses and association with an Ivoirian partner. Nevertheless; foreign companies operate successfully in all of these service sectors.

The government does not have an official policy to screen investments, and its overall economic and industrial strategy does not discriminate against foreign-owned firms. There are indications in some instances of preferential treatment for firms from countries with longstanding commercial ties to Cote d’Ivoire.

Other Investment Policy Reviews

Cote d’Ivoire has not conducted an investment policy review (IPR) through the OECD.

A Trade Policy Review was last done by the WTO in July 2012 and can be found athttps://www.wto.org/english/tratop_e/tpr_e/tp366_e.htm .

UNCTAD does not provide an IPR report for Cote d’Ivoire, though there are statistics on FDI in the country profile athttp://unctadstat.unctad.org/CountryProfile/GeneralProfile/en-GB/384/index.html  .

The Government of Cote d’Ivoire provides information about sector policies and business opportunities in various reports. More information can be found at: http://www.cepici.gouv.ci/en/  or at: www.gcpnd.gouv.ci/ .

Business Facilitation

The government has engaged in business facilitation efforts through a series of reforms using the World Bank Doing Business index as a reference to improve the business environment. These include the acceleration of business creation to 24 hours, the issuing of a construction permit in 26 days, the establishment of a one-stop shop for external trade, the establishment of a single tax declaration form, the protection of minority shareholders, and insolvency resolution.

Cote d’Ivoire’s online information portal containing all documents dedicated to business creation and registration (https://cotedivoire.eregulations.org/ ) is managed by CEPICI. All the necessary documentation for registration is available online. The one-stop shop for business registration takes between 24-48 hours and has all the agencies under a single roof, allowing for a more simplified approach to business creation. Businesses have noted the one-stop shop has been very successful in speeding up registration.

The registration process is generally equitable toward women and underrepresented nationalities, and there have not been any reports of discrimination.

Outward Investment

Cote d’Ivoire does not promote or incentivize outward investment. The government does not restrict domestic investors from investing abroad.

There is no bilateral investment treaty between Cote d’Ivoire and the United States in force. Cote d’Ivoire has signed Bilateral Investment Treaties (BITs) with the following countries: Belgium, Luxembourg, Canada, China, the EU, Germany, Ghana, Italy, the Netherlands, Singapore, Sweden, Switzerland, Tunisia, and the United Kingdom. The Ivoirian government ratified the Economic Partnership Agreement (EPA) with the EU in September 2016, allowing it to access the European market with no tax.

Cote d’Ivoire does not have a bilateral taxation treaty with the United States, though Cote d’Ivoire has concluded tax treaties with Belgium, Canada, France, Germany, Italy, Norway, and Switzerland. For FY 2017 fiscal measures, the government exonerated from research fees all documents provided by the Tax and Treasury Office. For leasing, the depreciation period of the item is now aligned with the period of the contract and not the lifespan of the item for accounting purposes. A special tax incentive for equipment has been adopted to help business development.

Businesses and foreign investors have expressed some concerns about the level of taxation, but there are currently no U.S. firms involved in ongoing systemic tax disputes.

Transparency of the Regulatory System

The government has taken steps to encourage a more transparent and competitive economic environment, and the IMF, World Bank, EU, and other large donors continue to urge the government to make further reforms. The government aims for transparency in law and policy to foster competition and provide clear rules of the game and a level playing field for domestic and foreign investors. Transparency of the regulatory system, however, is a concern in Cote d’Ivoire, as companies complain that regulations are issued with little warning and without a period for public comment.

In general, regulatory authority exists at the national level and is the most relevant for foreign businesses. For most industries or sectors, regulations are developed through the relevant ministry. In the telecommunications, electricity, cocoa, coffee, cotton, and cashew sectors, the government has established control boards or independent regulatory agencies sto regulate the sector and establishes prices. Regulation is reviewed on data-driven assessments, as regulatory bodies regularly publish and promote access for the business community and development partners to their data. Quantitative analysis and public comments are made available.

There are no informal regulatory processes managed by non-governmental organizations or private sector associations.

Cote d’Ivoire’s accounting, legal, and regulatory procedures are consistent with international norms, though businesses often complain about the system’s lack of clarity and the government’s poor communication. Cote d’Ivoire is a member of the Organization for the Harmonization of African Business Law (OHADA), which is common to 16 countries and adheres to the West African Economic and Monetary Union’s accounting system. In accounting, companies use the SYSCOA system. SYSCOA complies with international norms in force and is a source of economic and financial data.

Draft bills and regulations are not published and made available for public comment. Still, the National Assembly debates most legislation, and the government often holds public seminars and workshops to discuss proposed plans with trade and industry associations.

Key regulatory actions are published in the Journal Officiel de la Republique de Cote d’Ivoire and each regulatory body provides regulatory actions (laws, decisions, and sanctions) on its website. The regulatory enforcement mechanisms are made accountable to the public through the private and public institutions tasked with controlling and regulating these sectors. There is no centralized online location where regulatory actions or their summaries are published similar to the Federal Register. The website abidjan.net makes the Journal Officiel available for purchase online.

The regulatory body ANRMP ensures transparency and compliance with administrative processes. Consumers, trade associations, private companies, and individuals have the right to file complaints with ANRMP to ensure that the government follows administrative processes.

Post does not have knowledge of any recent regulatory system, including enforcement reforms, that has been announced since the last ICS report. Regulatory reforms announced in prior years have been fully implemented, with the goal to create an enabling business environment, foster competition, and build investors’ confidence in the economy.

International Regulatory Considerations

The Ivoirian government accounts for regional bodies in public procurement by incorporating directives 4 and 5 from the WAEMU into bidding processes and auditing, as well as into the regulation of public procurement within the Union. The public procurement code harmonizes public procurement policy and is in compliance with WAEMU directives. Changes include the separation of auditing and regulating functions, the transformation from a national to a regional system of procurement for intellectual services, and an increase from 25 to 30 percent of advance payment for the initial procurement of goods and services. The ANRMP regulates public procurement with a view to improve governance and transparency. It may sanction entities which do not comply with public procurement regulations.

Cote d’Ivoire’s laws, codes, professional association standards, and regional directives are incorporated in the country’s regulatory system. European norms are often followed due to Cote d’Ivoire’s free trade agreement with the EU.

Cote d’Ivoire has been a WTO member since 1995 but has not notified all draft technical regulations to the WTO Committee on Technical Barriers to Trade. Cote d’Ivoire signed the Trade Facilitation Agreement (TFA) in December 2013 and ratified it in December 2015. There have been notable efforts to implement the TFA requisites with the establishment of the TFA National Committee to coordinate its implementation. Other efforts include the USAID trade facilitation support program which has helped in the national implementation of the TFA.

Legal System and Judicial Independence

Cote d’Ivoire’s legal system is based on the French civil law model. The law guarantees the right to own and transfer private property. While this right is respected in most instances, the law regarding rural land tenure make it prohibitively difficult to do so. The court system enforces contracts.

Cote d’Ivoire is signatory to the Organization for the Harmonization of Corporate Law in Africa (OHADA) that provides common corporate law and arbitration procedures for the 16 member states.

The Commercial Court of Abidjan handles business cases. Mediation is also available through the Ivoirian legal framework in addition to the Commercial Court and the Arbitration Tribunal. Following the recommendations of business associations and commercial law experts, in August 2017, the government established the Court of Appeals of the Commercial Court of Abidjan. The IMF has recommended the creation of other commercial jurisdictions in the interior of the country.

Cote d’Ivoire’s judicial system is ostensibly independent, but magistrates are sometimes subject to political or financial influence. Judges sometimes fail to base their decisions on the legal or contractual merits of the case and are seen to rule against foreign investors in favor of entrenched interests. The greatest complaint from investors is the slow process. Cases are often postponed and appealed without a reasonable explanation, moving from court to court for years or even decades. With international assistance, the government is making an effort to reform the judiciary system to make it more efficient and transparent.

Regulations or enforcement actions are appealable and adjudicated in the national court system.

Laws and Regulations on Foreign Direct Investment

The major law affecting foreign investment is the 2012 Investment Code. The code is considered generous as it has no restrictions on foreign investment or the repatriation of funds. The code offers incentives, including tax reductions and in some cases exemptions from value added taxes (VAT) on equipment for private investors. The 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 also incentives to promote sectors, such as low-cost housing construction, factories, and infrastructure development, which the government considers key to the country’s economic development. In mining, the 2014 Mining Code allows a period for holding permits for ten years with a possibility to extend for two more years on a limited permit area of 400 square kilometers. The code has spurred investment in the sector.

CEPICI provides a one stop shop website for investment. More information on Cote d’Ivoire’s laws, rules, procedures, and reporting requirements can be found at: www.apex-ci.org/  www.cepici.gouv.ci/ 

Competition and Anti-Trust Laws

The Ministry of Commerce, Handicraft and Small Business Promotion through the Commission on Anti-Competition Practices is responsible for reviewing competition–related concerns under the 1991 competition law, which was updated in 2013. The National Authority for the Regulation of Public Tenders is responsible for reviewing the awards of contracts.

No significant competition cases were reported over the past year.

Expropriation and Compensation

There is no history of public expropriations. Private expropriation to force settlement of contractual or investment disputes continues to be a problem. Local individuals or local companies, using what appear to be spurious court decisions, have challenged the ownership of some foreign companies in recent years. On occasion, the government has blocked the bank accounts of U.S. and other foreign companies because of ownership and tax disputes.

In cases of illegal expropriations, Cote d’Ivoire law affords claimants due process. Even so, perceived corruption and lack of capacity in the judicial and security services have resulted in poor enforcement of private property rights, particularly when the entity in question is foreign and the plaintiff is Ivoirian or a long-established foreign resident.

Dispute Settlement

ICSID Convention and New York Convention

Cote d’Ivoire is a signatory to the International Center for Settlement of Investment Disputes (ICSID) and a signatory to the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral awards.

In cases where the firm does not meet the nationality conditions stipulated by Article 25 of the Convention, the code stipulates that the dispute be resolved within the provisions of the supplementary mechanisms approved by the ICSID.

Investor-State Dispute Settlement

Cote d’Ivoire is a signatory to investment agreements subject to binding international arbitration of investment disputes. Cote d’Ivoire recognizes and has been known to enforce foreign arbitral awards, but enforcement is inconsistent.

Cote d’Ivoire does not have Bilateral Investment Treaty (BIT) or a Free Trade Agreement (FTA) with the United States.

In the past 10 years, foreign investors have had investment disputes, which are often resolved through arbitration or an amicable settlement. One U.S. firm was involved in tax and customs disputes over its investment in the cocoa sector. As a result, the U.S. firm chose to divest its holdings. One U.S. dispute still ongoing involves the decision of the government to nullify a memorandum of understanding with a U.S. company to fulfill sanitation work.

As a signatory to the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards, local courts are obliged to enforce foreign arbitral awards.

Post is not aware of any history of extrajudicial action against foreign investors, including U.S. firms.

International Commercial Arbitration and Foreign Courts

The Abidjan-based regional Joint Court of Justice and Arbitration (CCJA) provides a means of solving contractual disputes. The arbitration tribunal has the ability to enforce awards more quickly, but the use of the tribunal in lieu of the court system has been limited.

Cote d’Ivoire is a member of OHADA, whose provisions of 1999 have replaced domestic law on arbitration. The unified law is based on the UNICITRAL model law.

Judgments of foreign courts are recognized but difficult to enforce in local courts. To avoid working through the Ivoirian legal system, some investors stipulate in contracts that disputes must be settled through international commercial arbitration. Yet, even if stipulated in the contract, decisions reached through international arbitration or through the African regional arbitration body are sometimes not honored by local courts.

Cote d’Ivoire’s domestic courts have no preferential treatment for state-owned enterprises involved in investment disputes.

Bankruptcy Regulations

As a member of the Organization for the Harmonization of African Business Law (OHADA), Cote d’Ivoire has both commercial and bankruptcy laws that address the liquidation of business liabilities. OHADA is a regional system of uniform laws on bankruptcy, debt collection, and rules governing business transactions. OHADA permits three different types of bankruptcy liquidation: an ordered suspension of payment to permit a negotiated settlement; an ordered suspension of payment to permit restructuring of the company, similar to Chapter 11; and the complete liquidation of assets, similar to Chapter 7. Creditors’ rights, irrespective of nationality, are protected equally by the Act. Bankruptcy is not criminalized. Monetary judgments resulting from a bankruptcy are usually paid out in local currency. Cote d’Ivoire is ranked 77 out of 190 countries for ease of resolving insolvency, according to the World Bank’s Doing Business Report.

The joint venture Credit Info -Volo West Africa manages regional credit bureaus in the WAEMU.

Investment Incentives

Cote d’Ivoire’s 2012 Investment Code offers incentives, including tax reductions and in some cases exemption from VAT on equipment for private investors. Under this code, new industrial zones are planned, and investors will benefit from special tax treatment for periods ranging from 8 to 15 years, depending on the location of the investment. The code provides incentives to promote sectors that are key to the country’s economic development, such as low-cost housing construction, the creation of factories, and infrastructure development. The Investment Code, the Petroleum Code, and the Mining Code delineate incentives available to new investors in Cote d’Ivoire.

Foreign Trade Zones/Free Ports/Trade Facilitation

Created in 2008, the free trade zone for information technology and biotechnology (VITIB) is located in the city of Grand Bassam. In 2014, VITIB inaugurated the Mahatma Gandhi technology park at Grand Bassam with a loan of USD 20 million from India’s EXIM bank. Current plans are to develop a technology corridor on VITIB land in Grand Bassam. Bonded warehouses do exist, and bonded zones within factories are allowed. High port costs and maritime freight rates have inhibited the development of in-bond manufacturing or processing, and there are consequently no general foreign trade zones.

Performance and Data Localization Requirements

Employment and Investor Requirements

The Government strongly encourages investors and firms to hire Ivoirian employees, but this is not a requirement. The 2012 Investment Code (Article 14) guarantees the freedom to designate senior management and board members.

Citizens of Economic Community of West African State (ECOWAS) countries can legally work in Cote d’Ivoire. For other nationalities, visa/work and residence permits are required and the investment agency CEPICI facilitates their acquisition. The process is not onerous and does not inhibit the mobility of foreign investors and their employees.

There are no government-imposed conditions on permission to invest, including tariff and non-tariff barriers.

Goods, Technology, and Data Treatment

The government does not generally place conditions on location, local content, equity ownership, import substitution, export requirements, host country employment, and technology. But, the KFC restaurant that opened in April 2018 was required to use locally-sourced chicken. The government also makes use of a number of tax exemptions and customs exonerations to incentivize companies to do more value-added processing in-country.

Cellular telephone companies must meet technology and performance requirements to maintain their licenses. Cote d’Ivoire does not have any known requirements for foreign IT to turn over source code or provide access to encryption. There are no requirements that prevent or unduly impede companies from freely transmitting customer or other business related data. Data transmission or transfer is subject to prior authorization of the telecom regulatory board ART-CI. Cote d’Ivoire’s law on data protection requests prior declaration or authorization by ART-CI for any data processing. ART-CI is responsible for the oversight of local data storage.

Investment Performance Requirements

There are no performance requirements for investments.

Real Property

The Ivoirian civil code provides for enforcement of private property rights and the government has undertaken reform efforts to secure property rights. Mortgages and liens exist. Secured interests in property are enforced by the Land Registry Office of the Ministry of Finance. In the World Bank’s Doing Business report, Cote d’Ivoire is ranked 113 out of 190 countries for registering property.

Foreign and/or nonresident investors who wish to lease land must obtain a permit for the development of the site, as well as a bylaw from the prefecture or sub-prefecture for the occupation of the site.

In Cote d’Ivoire, 96 percent of land does not have a clear title. The government has committed to securing the remaining portion within 10 years. The government has made efforts to raise awareness on land titling throughout the country and to streamline procedures for obtaining land titles. In 2018, the World Bank approved a program to build the capacity and institutions to support implementation of the national rural land tenure security program and register customary land rights in selected rural areas. All land that is to be titled must be professionally surveyed. The surveying, which must be performed by one of the few companies allowed to execute surveys in Cote d’Ivoire, can cost more than the value of the land. The status of the land from which thousands of refugees were forced to move during the 2011 post-election conflict has not been resolved. Much of that land is now occupied by squatters, many of whom are immigrants or descendants of immigrants from neighboring countries to the north of Cote d’Ivoire, particularly Burkina Faso. A lack of titles and an overlap of modern land-tenure law and common practice hinder resolution of the land tenure issue.

If property legally purchased is unoccupied property, ownership cannot be reverted to other owners (such as squatters).

Financial mechanisms are available for the securitization of properties for lending purposes. Post does not have knowledge of any federal, regional, or local authorities working with any international bodies to develop secured lending capabilities for investors. The lack of clear title for most land restricts the ability of lenders to support many projects.

Intellectual Property Rights

The Ivoirian Civil Code protects Intellectual Property (IP) rights; the government’s Office of Industrial Property (OIPI) is charged with ensuring the protection of patents, trademarks, industrial designs, and commercial names. Patents are valid for ten years, with the possibility of two five-year extensions. Trademarks are valid for ten years and are renewable indefinitely. Copyrights are valid for 50 years. The Ivoirian Copyright Office has a labeling system in place to prevent counterfeiting and protect audio, video, literary, and artistic property rights in music and computer programs. In general, protection of intellectual property rights in Cote d’Ivoire is weak and the government has limited resources for IPR protection. While Ivoirian IP law is in conformity with standards established by the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), enforcement is weak due to a lack of custom checks at the country’s porous borders, which limit the law’s impact.

No IP related laws or regulations have been enacted in the past year.

Legally the government must protect intellectual property on exported and imported goods. Customs has the power to seize products imported with equipment installed, detained, marketed, or illegally supplied. Such seizures, generally of counterfeit consumer goods, are routinely publicized on government websites and media outlets, although statistics on seizures are unavailable. BURIDA’s police unit has sometimes held raids against retail outlets and street vendors to confiscate pirated CDs and DVDs and also instituted legal proceedings against counterfeiters. IPR violations are prosecuted and sanctions vary from three months to two years of imprisonment and from USD 163 to USD 8,000 fines.

Cote d’Ivoire is not listed in USTR’s Special 301 report.

Cote d’Ivoire is not listed in the notorious market report.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/ 

Capital Markets and Portfolio Investment

Government policies generally encourage foreign portfolio investment.

The Regional Stock Exchange (BRVM) based in Abidjan covers the eight countries of the WAEMU and trades equity securities. An effective regulatory system exists to facilitate portfolio investment through the West African Central Bank (BCEAO) and the Regional Council for Savings Investments (CREPMF). There is sufficient liquidity in the markets to enter and exit sizeable positions.

Government policies allow the free flow of financial resources into the product and factor markets.

The central bank BCEAO respects IMF Article VIII on payment and transfers for current international transactions.

Credit allocation is based on market terms and has increased to support the private sector and economic growth, specifically for large businesses. Banks lend to the private sector, offering short-term and long-term loans and overdraft facilities. Foreign investors can acquire credit on the local market.

Money and Banking System

The banking sector is composed of twenty-eight commercial banks and two credit institutionsBanks are expanding their networks, especially in the secondary cities outside Abidjan as domestic investment has increased upcountry. The total number of bank branches has increased from 324 in 2010 to 666 branches in 2017.

Cote d’Ivoire’s banking sector is improving with all but four banks complying with the minimum capital requirements. Some public banks have had large numbers of nonperforming loans. The government is privatizing the commercial banking sector in order to reinvigorate the banks and remove low performers from government accounts.

The estimated total assets of the five largest banks are around USD 9 billion.

The central bank BCEAO is common to the eight member states of the West Africa Economic and Monetary Union (WEAMU) and manages regulations.

Foreign banks are allowed to establish operations in Cote d’Ivoire. They are subject to prudential measures and regulations of the Banking Commission of the WAEMU. Cote d’Ivoire lost no known correspondent banking relationships in the past three years. No known correspondent banking relationships are in jeopardy.

Post is not aware of the implementation of blockchain technologies in banking transactions.

Alternative financial services available include mobile money and microfinance for payments, transfers, and finances. Mobile money has become a very popular way to make payments and more Ivoirians prefer mobile money over banking, but it has yet to expand to offering full financial services.

Foreign Exchange and Remittances

Foreign Exchange Policies

There are no restrictions on the transfer or repatriation of capital and income earned, or on investments financed with convertible foreign currency. Once an investment is established and documented, the government regularly approves remittances of dividends and/or repatriation of capital. The same holds true for requests for other sorts of transactions (e.g. imports, licenses, and royalty fees).

Funds associated with investments funded with convertible currency are freely convertible into any world currency.

Cote d’Ivoire is a member of the WAEMU which uses the West African Franc (XOF), known as the CFA, a convertible currency. The French Treasury continues to hold the international reserves of WAEMU member states and supports the fixed exchange rate of 655.956 CFA to the Euro.

Remittance Policies

There are no recent changes or plans to change investment remittance policies that either tighten or relax access to foreign exchange for investment remittances.

There are no time limitations on remittances. Remittances for Ivoirians were about USD 386 million in 2017 or 0.9 percent of GDP.

Sovereign Wealth Funds

Cote d’Ivoire does not have a sovereign wealth fund.

Companies owned or controlled by the state are subject to the laws and tax code. The Ivoirian government still holds substantial interests in many firms, including the refinery SIR (49 percent), the public transport firm (60 percent), the national television – RTI (98 percent), the national lottery (80 percent), the national airline Air Cote d’Ivoire (58 percent), and the land management agency – AGEF (35 percent). Of the SOEs, 28 are wholly government owned, 15 are majority owned, eight are with a blocking minority, and 30 are minority owned. Each SOE has an independent board. The government has begun the process of divestiture for some state-owned enterprises, and had targeted 15 for sale during 2015, but the program has not been completed. The Ivoirian government is an active participant in banking, agri-business, mining, and the telecom industry.

The list of SOEs can be found here: http://budget.gouv.ci/fr/publications/situation-economique-et-financiere-des-societes-du-portefeuille-de-l-etat-rapport-au 

There are no laws or rules that offer preferential treatment to SOEs. They are subject to tax burdens and policies as private companies, though sometimes SOEs develop large arrears on items such as electricity bills. The Corporate Governance of SOEs in Cote d’Ivoire does not meet the standards of the OECD, but the government has made some efforts to improve it. Private and public enterprises compete under the same terms and conditions, and senior management of SOEs may report to a ministry or board of directors, whose seats are allocated to senior government officials, political leaders, representatives of civil society, and other public entities. SOEs are required to publish annual reports, hold regular meetings of the board of directors, and have financial statements reviewed by certified accountants and private auditors.

Privatization Program

In 2014, the Government proposed a program to privatize a quarter of public enterprises, including approximately 15 public or semi-public enterprises, banks, the sugar company Sucrivoire (SIFCA), and USD 232 million of investments the government holds in Industrial Promotion Services (IPS)-Aga Khan Foundation projects. At the urging of the IMF, the government is continuing the privatization of banks including Versus Bank, NSIA Bank, and the housing finance bank BHCI.

Foreign investors are encouraged to compete.

These programs have a public bidding process in French. No website on privatizations is available.

The private sector, the government, NGOs, and local communities are becoming progressively aware of the importance of Responsible Business Conduct (RBC) regarding environmental, social, and governance issues in Cote d’Ivoire.

Investment projects in energy, infrastructure, agriculture, forestry, waste management, and extractive industries are required by decree to provide an environmental impact study prior to approval. Foreign businesses, particularly in mining, energy, and agriculture, often provide social infrastructure, including schools and health care clinics, to communities close to their sites of operation, often at the request of the government. Some companies complain that these requests can be quite numerous. Companies are not required under Ivoirian law to disclose information relating to RBC, although many companies, especially in the cocoa sector, publicize their work. Cocoa companies publicize efforts to improve sustainability and combat the worst forms of child labor. As part of public procurement reform, the Ministry of Budget plans to include social needs in public procurement contracts to support job creation, fair trade, decent working conditions, social inclusion, and compliance with social standards. On the environment, suggested reforms include the selection of goods and services that have a smaller impact on the environment.

There have not been high profile instances of a private sector impact on human rights or resolution of such cases in the past year.

The government, through the Ministry of Employment and Social Protection, sets workplace health and safety standards and is responsible for enforcing labor laws.

The uniform Act of Organization for the Harmonization of Business Law in Africa (OHADA), which is common to 17 countries including Cote d’Ivoire, outlines corporate governance standards that protect shareholders.

There are government-funded agencies in charge of monitoring business conduct. Human rights, environmental protection, and consumer NGOs report misconduct and violations of good governance practices.

While international firms are aware of OECD guidelines and international best practices in RBC, most local firms have limited familiarity with international standards.

Cote d’Ivoire is EITI compliant and discloses revenues and payments in the oil, gas, and mineral sectors. More information can be found at: www.cnitie.ci/ .

Corruption is a concern for businesses in Cote d’Ivoire. Cote d’Ivoire endorsed ordinance no. 2013- 660 related to the prevention and the fight against corruption. The High Authority of Good Governance covers corruption issues and requires that all public officials submit asset declarations at the beginning and end of their tenures in office. The country’s financial intelligence office CENTIF has broad authority to investigate suspicious financial transactions, including those of government officials. Despite the establishment of these bodies there have been no prominent public corruption cases despite credible allegations of widespread corruption. These watchdog agencies are generally regarded as lacking the power and will to actively combat corruption.

The laws extend to family members of officials and to political parties.

The country’s Code of Public Procurement No. 259 and the associated WAEMU directives cover conflicts-of-interest in awarding contracts or government procurement.

Under the Ivoirian Penal Code, a bribe by a local company to a foreign official is a criminal act.

Some private companies use compliance programs or measures to prevent and detect bribery of government officials. U.S. firms underscore to their Ivoirian counterparts that they are subject to the Foreign Corrupt Practices Act (FCPA).

Cote d’Ivoire ratified the UN Anti-Corruption Convention, but the country is not a signatory to the OECD Anti-Bribery Convention. In 2016, Cote d’Ivoire joined the Partnership on Illicit Finance, which obliges it to develop an action plan to combat corruption.

There are no special protections to NGOs involved in investigating corruption.

Corruption in many forms is deeply engrained in public and private sector practices and remains a serious impediment to investment and economic growth in Cote d’Ivoire. Many companies cite corruption as the major obstacle to investment in Cote d’Ivoire. It has the greatest impact on judicial proceedings, contract awards, customs, and tax issues. Lack of transparency and failure to follow the government’s own tender procedures in the awarding of contracts lead businesses to conclude bribery was involved. Businesses have reported encountering corruption at every level of the civil service, with some judges appearing to base their decisions on bribes. Clearance of goods at the ports often require substantial “commissions,” and the Embassy has heard anecdotal accounts of customs agents rescinding valuations that were declared by other customs colleagues in an effort to extract bribes from customers. The demand for bribes can mean that containers stay at the Port of Abidjan for months, incurring substantial demurrage charges, despite having the proper paperwork in order.

No local industry or non-profit groups offer services for vetting potential local investment partners.

Resources to Report Corruption

These contacts at agencies are responsible for combating corruption:

Inspector General of Finance
(Brigade de Lutte Contre la Corruption)
Lassina Sylla
Inspector General
TELEPHONE: +225 2252 9797
FAX: +225 2252 9798
HOTLINE: +225 8000 0380

High Authority for Good Governance
(Haute Autorité pour la Bonne Gouvernance)
N’Golo Coulibaly
TELEPHONE: +225 22479 5000
FAX: +225 2247 8261

Police anti-Racketeering Unit
(Unite de Lutte Contre le Racket –ULCR)
Alain Oura
Unit Commander
TELEPHONE: +225 2244 9256

President Alassane Ouattara was elected to a second term in 2015. In 2016, a new constitution was adopted through a referendum creating the position of Vice-President, and a Senate, which convened in April 2018. Cote d’Ivoire‘s security situation has significantly improved since the 2010-2011 post electoral dispute that led to civil conflict. There continue to be small-scale security incidents, primarily along Cote d’Ivoire’s western borders. The government lacks proper command and control over much of the armed forces. In January, February, and May 2017 soldiers mutinied, demanding payment of bonuses. The government responded by largely acceding to their demands and pledging to improve living and working conditions for armed and security forces. Cote d’Ivoire suffered its first terrorist attack in March, 2016 on the beaches of Grand Bassam, for which Al Qaeda in the Islamic Maghreb claimed responsibility. Ivoirian security forces responded very quickly, however, demonstrating that the capacity of the country’s special operations units has improved over the past few years.

During electoral periods, demonstrations and protests by political parties occur often and occasionally lead to vandalism and clashes with security forces. Unions also engage in protests that sometimes become violent. Still, social unrest has not had an appreciable economic impact.

Political tension in Cote d’Ivoire is increasing as the next presidential election in 2020 approaches, leading some observers to express concern about the possibility of increasing social unrest or potential electoral violence.

The official unemployment rate is 11 percent with higher unemployment in urban areas. The unemployment rate among those aged 14-35 is 8.6 percent. The percentage of the non-agricultural workforce in the informal economy is 47 percent. Foreign workers from neighboring countries make a significant part of the work force, especially in agriculture. The numbers fail to fully account for the large informal economy throughout the country, and do not accurately portray the general lack of well-paying employment opportunities. Despite the government’s efforts, child labor remained a widespread problem in rural and urban areas, particularly on cocoa and coffee plantations, artisanal gold mining areas, and urbanized regions.

There are significant shortages of skilled labor in higher education fields including information technology, engineering, finance, management, health, and science. The Ivoirian government is working with the Millennium Challenge Corporation (MCC) to build and develop four technical and vocational training centers.

Labor laws favor the employment of Ivoirians in private enterprises, and states that any vacant position must be advertised for two months. If after two months no qualified Ivoirian is found, the employer is allowed to recruit a foreigner provided that s/he plans to recruit an Ivoirian to fill the position in the next two years. The foreign employee must be given a labor contract.

There are no restrictions on employers adjusting employment to fluctuating market conditions. Employees terminated for reasons other than theft or flagrant neglect of duty have the right to termination benefits. Unemployment insurance and other social safety programs exist for employees laid off for economic reasons, but for the 85 percent of workers employed in the informal sector, this is not an option.

Labor laws are not waived to attract or retain investment.

Collective bargaining agreements are in effect in many major business enterprises and sectors of the civil service.

Labor disputes are submitted to the labor inspector for amicable settlement before engaging in any legal proceedings. If this attempt to settle the dispute fails, then the labor court can be engaged to resolve the dispute.

No strike has posed an investment risk during the last year.

There are no gaps in law or practice with international labor standards that may pose a reputational risk to investors.

In 2017, the government passed a law forbidding most forms of child labor for children 12 and under while restricting it for children aged 13 to 17. The law’s passage put Ivoirian law on par with ILO standards for child labor.

There are currently no OPIC projects in Cote d’Ivoire, but OPIC continues to look for opportunities, particularly in energy and infrastructure.

In 2017 the Ivoirian government ratified its investment incentive agreement with OPIC.

The Ivoirian government finds Chinese projects attractive as the Chinese government often brings its own debt financing in the form of loans, thereby requiring little Ivoirian contribution. The French government provides debt forgiveness to the Ivoirians in a form known as Debt Reduction Development Contract, or C2D financing, which directs debt forgiveness to fund specific projects that usually involve French firms. The Ivoirian government finds this an appealing way to reduce its debt burden, though it must still find the financing.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

Host Country Statistical Source USG or International Statistical Source USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other
Economic Data Year Amount Year Amount
Cote d’Ivoire Gross Domestic Product (GDP) (M USD) 2017 USD 40,000 2016 USD 36,400 https://data.worldbank.org/
Foreign Direct Investment Host Country Statistical Source USG or International Statistical Source USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other
U.S. FDI in Cote d’Ivoire (M USD, stock positions) 2017 N/A 2016 USD 185 BEA data available at
Host Country’s FDI in the United States (M USD, stock positions) 2017 N/A 2016 -USD 1.0 BEA data available at
Total Inbound Stock of FDI as % host GDP 2017 N/A 2016 12.9% (USD 4.7B) IMF

Table 3: Sources and Destination of FDI

Direct Investment from/in Counterpart Economy Data
From Top Five Sources/To Top Five Destinations, 2016 (US Dollars, Millions)
Inward Direct Investment Outward Direct Investment
Total Inward 4,761 100% Total Outward 281 100%
France 1,320 28% Mali 30 11%
South Africa 319 7% Benin 28 10%
Belgium 295 6% Niger 25 9%
Great Britain 292 6% Burkina Faso 24 8%
Mauritius 289 6% Senegal 20 7%
“0” reflects amounts rounded to +/- USD 500,000.

Table 4: Sources of Portfolio Investment

Data not available.

Jeremy Chen
Economic and Commercial Officer
B.P. 730 Abidjan Cidex 03, Cote d’Ivoire
Tel: +225 2249 4416

2018 Investment Climate Statements: Cote d’Ivoire
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