Côte d'ivoire

The 7 hottest sectors in Côte d’Ivoire

Côte d’Ivoire wants to become the reference in the UEMOA / ECOWAS region, especially regarding the French speaking countries, where Côte d’Ivoire has almost half of the economic weight among those countries. These are the most uprising 7 sectors Còte D’Ivoire at the present moment.

AGRICULTURE:

The Government has drafted a National Plan of Agriculture Investment (PNIA 2012-2015) which aims to triple production and increase processing units to export in the sub-region and creating opportunities in the sector. Furthermore agriculture will be a tool in the socio-economic development of the country.Agriculture in Côte d’Ivoire is the most important sector, employing almost three-quarter of the population (70%), largely on an informal basis as the sector is dominated by a majority of small-scale farmers. A few agricultural aggregators are settled in the country.The contribution of Agriculture to the GDP represents almost 28%-35% of the GDP. Côte d’Ivoire is the world largest producer and exporter of cocoa beans accounting for 40% of the global exports.

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Cocoa beans account for 40% of the global exports in Còte d’Ivoire

ICT:

This sector is the second largest contributor to GDP, at around 7%. The country is equipped with modern telecommunications services, including a public data communications network, cellular phones and Internet access. Côte d’Ivoire is one of the continent’s most vibrant mobile markets with five competing telecom operators: Incumbent Côte d’Ivoire Telecom / Orange, MTN CI, Comium (KOZ), Moov (Société du groupe Etisalat), and Green Network.The mobile penetration rate in Côte d’Ivoire is close to 83%; there are 19.3 million mobile subscribers compared to 300,000 fixed-line subscribers, accounting for 1.2% penetration rate, according to L’Agence de Régulation des Telecommunications de Cote d’Ivoire (ARTCI). The market leader is Orange claiming the lion’s share of customers, 7.49 million – 40.1% of the market. Submarine infrastructure improves Ivorian international bandwidth, encouraging broadband development.

The arrival of up to four new international submarine optic fibre cables has finally brought greater competition to a sector that was previously dominated by Ghana telecom. In July 2013, Côte d’Ivoire’s Minister of Technology, Information and Communication Bruno Nabagne Koné announced a US$210mn government-funded fibre rollout project. According to Kone, the planned 6,700km fibre network will bring coverage to 30% of the population by 2018. Although Internet user penetration is still low at around 2.5% of the population, developments are now accelerating following the introduction of wireless 3G mobile broadband technologies such as ADSL, WiMAX, HSPA and EV-DO.  The first 3G licences were awarded in March 2012 and the first 3.5G mobile broadband service has been launched, offering up to 42Mb/s using HSPA+ technology. With a national backbone network including more than 20,000km of fibre optic cable, Cote d’Ivoire is in a good position to translate these improvements in competition and infrastructure into a booming broadband market and digital economy.

 

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Iinternational submarine optic fibre cables has brought greater competition to the telecom sector

ENERGY AND PETROL:

Cote d’Ivoire is a net exporter of electricity and currently has installed electric generation capacity of 1 390 MW. BeninGhanaBurkina FasoMali, and Togo are among the countries connected to Ivory Coast’s power grid. Ivory Coast uses hydroelectric (38%) and thermal (62%) generating facilities to provide all of its electrical power.  The installed capacity includes 604 MW generated by 6 hydroelectric facilities and 210 MW and 288 MW respectively generated by the gas-fired plants from existing independent power producers (“IPPs”), CIPREL and AZITO (From AKFED) which use Ivorian domestic natural gas. Azito is the largest private sector power plant in Sub-Saharan Africa. In July 2012, Aggreko, global leader in temporary power service and temperature control, announced the expansion of its power plant in Côte d’Ivoire with the addition of a production capacity of 100 MW, raising the total output of the project to 200 MW. Côte d’Ivoire’s current priority is to enhance its transmission infrastructure in an attempt to connect to West Africa’s grid under the auspices of the West African Power Pool.

To deal with the demand for electricity from households and industry, supported by population growth and the growth of the secondary and tertiary sectors, the country will not only improve the delivery and access to the network, but also increase it. Oil production is increasing during the last few years with the discovery in the border with Ghana, in the Jubilee Oil Field. The production of Oil and Gas is expected to increase in the next years, as the country is currently using gas to produce electricity and they plan to become an oil exporter by 2020. The country currently produces 30,000 barrels of oil per day but the short-term goal is to produce about 200,000 barrels of oil per day and 300 million cubic feet of gas. Côte d’Ivoire offers very promising opportunities for deep-sea exploration and drilling. The deep-sea oil rich basin is only 20% explored. Its recoverable oil reserves have been estimated at 100 million barrels and recoverable gas reserves at 1.1 Tcf.

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Cote d’Ivoire is a net exporter of electricity

FINANCE:

 Cote D’Ivoire is currently a member of the African Union, West African Economic and Monetary Union, ECOWAS and the Council of Entente Communauté Financière Africaine. It also has membership with the European Investment Bank and the African Development Bank, and is an associate member of the European Union. There are 23 banks in Côte d’Ivoire (mostly foreign-owned bank), including international banks, regional banks, and private banks. There is a huge potential for growth at the banking services penetration rate in Côte d’Ivoire and UEMOA is close to 8%.

The market is still dominated by cash transactions, but the future trend is leading towards electrification of the Ivorian banking sector. Achievement of the HIPC Completion Point, which reduced external debt by 24%, helped the country normalize its relations with donors and gradually regain the confidence of both public and private domestic and international investors. The GOCI recently reached an agreement with banks to its stock of short-term securities. Cote d’Ivoire has been able to return to the regional market with longer term securities. In September 2011, the government of Cote d’Ivoire launched a new 5-year bond. The Regional Stock Market (BVRM) returned to Abidjan in 2011, after temporarily relocating as a result of the post-electoral crisis.

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The Regional Stock Market (BVRM) now returned to Abidjan

TRANSPORT:

After some stagnation due to the economic and socio-political roller-coaster rides of the last decade, the transport industry in Ivory Coast is starting to make a turn for the better. According to regional analysts Côte d’Ivoire’s infrastructure and transport industry achieved strong growth during 2012, driven by a renewed focus on government construction projects. It is estimated that the construction industry grew by 13% year-on-year and reached a value in excess of $1bn. The Government investment in the transport sector will double in the next 3 years to rehabilitate the damaged roads and create new infrastructure in all branches: sea, air, roads and railways. The maritime transport is the backbone of the Ivorian economy. The Port Autonome d’Abidjan is the second largest Port in Africa after Durban and the Port Autonome of San Pedro is developing very quickly.

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The maritime transport is the backbone of the Ivorian economy

TOURISM:

According to the World Travel and Tourism Council (WTTC), tourism in Abidjan represents 1.6% of GDP, and is expected to reach 4.6% by 2017. As a sign of tourism’s importance to the economy, the industry has created more than 181,000 jobs, or 4.2% of total employment in the country. Nevertheless, the numbers are still poor, as the infrastructure is still not ready to attract a big number of tourists. The tourism industry generated an estimated $345 million during 2010. A quarter of a million tourists are visiting Côte d’Ivoire every year, the government wants to double this figure. Tourists come from everywhere, Europe, US, but more and more from Africa and Asia. The travel and tourism industry in Côte d’Ivoire is another area with tremendous room for new investment. This is especially true of the country’s vast potential for eco-tourism and adventure-seeking travellers interested in exotic and pristine environments. Ivory Coast has made progress in diversifying its economy, and since the 1970s, has steadily expanded the facilities offered to tourists. Resort lodgings in coastal areas have been developed as there are not enough hotels in Abidjan for the current demand.

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The country’s vast potential for eco-tourism and adventure-seeking travellers has yet to be developed

CONSTRUCTION: 

By emerging-market standards, Ivory Coast has outstanding infrastructure, some of Sub-Saharan Africa’s most advanced transportation infrastructures. There is a network of more than (13,000km) of paved roads. This sector is managed by big French groups such as Bouygues, but the Ivorian state is carrying many social real estate projects through SICOGI, the national construction company.Socoprim, a consortium led by Boygues Travaux Publics, signed finance agreements for the design, construction, maintenance and operation of a EUR232mn (US$292.2mn) highway in Côte d‘Ivoire.

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There are not enough hotels in Abidjan for the current demand.

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