Za ASG Country Reports Cote DIvoire Repro

Invest in Cte dIvoire
A business guide for Africas

fastest-growing economy
March 2017
Proposal title goes here | Section title goes here
Cte dIvoire is Africas

fastest-growing economy.
The fast pace of growth is due
to a strong macroeconomic
environment, a solid position
in international markets and
a large amount of significant
natural resources.
03
Invest in Cte dIvoire | Table of contents
Table of contents
Executive summary 3
Country overview 5
Cte dIvoires economy 6
Business environment 13
Investment opportunities 21
Challenges and risks 27
References 28
Appendix 29
Contacts 35
2
Invest in Cte dIvoire | Executive summary
Executive summary
Located in the inter-tropical coastal zone sustainable growth. Two development Consequently, Cte dIvoire has improved
of West Africa, the Republic of Cte dIvoire plans have been implemented in Cte its rankings in the World Banks annual
has a population of 22.7 million inhabitants, dIvoire: the National Development Plan Ease of Doing Business index, moving
42.5% of whom are under the age of 14. (NDP) 2012-15 to lay the foundations for an from 177th position in the 2014 report
Yamoussoukro is the political capital, emerging economy; and the NDP 2016-20 (out of 189 countries) to the 142nd
while Abidjan is the economic hub of the to structurally transform the country into position in 2017 (out of 190 countries).
country. The country is a member of the an industrialising nation. The 2014 and 2015 reports ranked Cte
West African Economic Monetary Union dIvoire among the 10 best reformers in
(WAEMU), an eight country customs and With a total investment of 3trn CFAF, the world. The improvements included
currency union in which all members use the NDP 2016-20 aims to improve the the implementation of a single user
the CFA franc (CFAF). well-being of the population by reducing identification number for business creation,
the poverty rate and fostering an online submission of complaints to the
Cte dIvoire is the largest economy in emerging middle class. In April 2016, Commercial Court of Abidjan, publication
French-speaking West Africa and the third donors pledged to fund Cte dIvoires of rulings from the Commercial Court, and
largest in West Africa after Nigeria and NDP with up to US$15.4bn in grants and electronic land registration.
Ghana. Real gross domestic product (GDP) credits and the World Bank committed to
grew on average by 9% per year during the double its support for the next four years The World Bank projects for Cte dIvoire
period 2012-15, reversing a 10-year decline representing approximately US$5bn. an average annual GDP growth rate of 8%
in per capita income. over the 2016-18 period. This is higher
Since November 2012, Cte dIvoire than the sub-Saharan Africa (SSA) and
Agriculture is crucial for the country in has introduced new incentives in its world annual growth averages of 3.2%
terms of revenues and employment, with Investment Code in order to ease the and 2.7% respectively. The fast pace of
the country being the worlds largest private investment regime. This includes: growth is due to a strong macroeconomic
producer and exporter of cocoa beans. promotion of local raw materials policy environment, a solid position in
In fact, agriculture accounted for around production, production of competitive international markets with products like
25% of GDP in 2015. Natural resources goods for domestic market and exports; cocoa and a large amount of significant
play a key role in the countrys economy, and creation of incentives for technology. natural resources like gold and natural gas.
especially fossil energy and ores. The fiscal policy is also moving towards
incentives policies for small and medium- Since February 2017, the last contingent of
Cte dIvoire offers relatively well- sized enterprises (SMEs) with more United Nations (UN) blue helmets left the
developed road infrastructure, the second favourable tax conditions. country after 14 years. While the departure
largest port in West Africa, and a modern marks a lasting return to stability and
airport with a national airline that serves all One of the main pillars for investment peace in Cte dIvoire according to the
of the major capital cities in the region. promotion is the legal framework of UN, some security challenges remain, and
the country, which has experienced a recent uprisings recalled that the security
The countrys investment environment has constitutional transformation in 2016 challenge was not yet fully overcome.
matured over recent years, as the political pointing to better democratic conditions Governance and stability is a major priority.
environment has been stable since the and education rights reinforcement, Moreover, skilled labour is needed as
end of 2011. The government is committed amongst other things. foreign direct investment (FDI) surges and
to implement structural reforms that the availability of land for large industrial
contribute to improve the macroeconomic operations is insufficient to satisfy
environment and set the stage for increasing demand.
3
4
Invest in Cte dIvoire | Country overview
Country overview
Located in the inter-tropical coastal zone of West
Africa, the Republic of Cte dIvoire has a population
of 22.7 million inhabitants1, 42.5% of whom are
under the age of 14.2
Cte dIvoire is the largest economy in French-
speaking West Africa and the third largest in West
Africa as a whole (after Nigeria and Ghana). The
countrys gross national income (GNI) per capita
was estimated at US$1 420 in 2015.
The country has a wealth of natural resources such

as petroleum, natural gas, diamonds, manganese,
iron ore, cobalt, bauxite, copper, gold, nickel,
tantalum, silica sand, clay, hydropower, etc. Natural
resources have played a key role in the countrys
economy, especially fossil energy and ores.
Although decreasing, resources still represent 5%
of the countrys GDP.
Agriculture is also crucial for the country in terms

of revenues and employment. It accounted for
around 25% of GDP in 2015.
The country is a member of the WAEMU, an eight-
country3 customs and currency union in which all
members use the CFAF. The Union includes 112
million inhabitants, and has a common trade policy
and external tariff. The banking sector of member
countries is regulated by the Central Bank of West
African States (BCEAO) which also maintains a fixed
exchange rate with the euro.
Cte dIvoire is also a member of the Economic

Community of West African States (ECOWAS) made
up of 15 countries4 and with almost 360 million
inhabitants in 2016.5 The community promotes
economic integration and regional peace and
stability. ECOWAS has an economic partnership
with the European Union (EU) covering goods and
development cooperation. The country is the EUs
largest trading partner in SSA.
1. World Bank database, 2015. 4. The eight countries of WAEMU plus Cape Verde, the Gambia, Ghana, Guinea, Liberia and Sierra Leone.
5 2. World Bank database, 2015. 5. UNCTAD, 2016.
3. Benin, Burkina Faso, Cte dIvoire, Guinea Bissau, Mali, Niger, Senegal, and Togo.
Proposal
Invest in title
Ctegoes
dIvoire
here| |Cte
Section
dIvoires
title goes
economy
here
Cte dIvoires economy

From independence in 1960 until the end of the
1970s, Cte dIvoire enjoyed what some analysts
called Cte dIvoires miracle.
Snapshot of the past This resulted in sluggish growth over

Over the period, GDP increased fourfold the period. However, throughout all this
at an annual rate averaging 8%. Growth period and even during the civil war, the
was driven by agricultural exports (80% country experienced a low inflation rate.
of total exports), mainly cocoa, coffee and Inflation since 2000 was generally below
wood. Industry and services also grew the regional central banks threshold of 3%,
rapidly, respectively at a pace of 10% and providing stable signals for consumption
13% between 1965 and 1974. Thanks to and investment.
export revenues important investments in
infrastructure and education were made by Figure 1. Annual average GDP growth (%), 1961-2011
the government. 9
9
8
8
The economic miracle ended when 7
7
international cocoa and coffee prices 6
6
collapsed in the 1980s. Cte dIvoires 5
Average %
Average %
5
economy was too exposed to the 4
4
fluctuation of commodity prices. Over the 3
3
next decade, as international cocoa prices 2
2
kept decreasing, GDP declined on average 1
1
by 0.24 percentage points per year. Coffee 0
0
and cocoa prices represented only 30% of -1-1
their peak values at the beginning of the 1961-1979 1980-1989 1990-2000 2001-2011
1990s. Source: World Bank data, 2016
To combat economic difficulties, the

country pursued important structural
reforms from the 1980s. However, Figure 2. Inflation rate (%), 1994-2015
these reforms were insufficient to 30

stimulate strong and sustainable growth. 30
25 26
Throughout the 1990s, Cte dIvoire 25

20
20
carried on with reforms and liberalised 15
%
14
%
15
its economy. This included the launch of 10
10 6
investment programmes, in particular into 5 5
55 2
4
3
4
3 3
4
2 2 3
infrastructure. These reforms stimulated 00
1 1 1 1 1 0 1
growth, but at a lower rate compared to the

2000
2004
2006
2008
2009
2005
2003
2007
2001
2002
1994
1996
1998
1995
1997
2010
2014
2015
2013
2012
2011
1970s. Throughout the 2000s, the civil war

(2002-11) hampered the economic potential
of the country until 2011. Source: World Bank data, 2016
6
Invest in Cte dIvoire | Cte dIvoires economy
A booming economy The services sector is mainly composed

Since 2012, Cte dIvoires economic of commercial activities (11.1%), post and
performance has been impressive, and in telecommunications (7%), transport (3.8),
striking contrast with the last ten years of and banking activities (3.4%).6
political instability. Political normalisation,
budget support policy, debt reduction, By exporting agricultural and mineral
and reforms to strengthen the business products, the country has kept a positive
climate have led to an acceleration of trade balance over the 2000-15 period.
economic activity. Driven by investment
and consumption, GDP grew on average
by 9% per year during the period 2012-15,
Figure 3. Main macroeconomic indicators, averages for 2000-11 and 2012-15
reversing a 10-year decline in per capita
income. The country had a nominal GDP of
2000-11 2012-15
about US$32bn in 2015, making it one of
the largest economies in West Africa. Real GDP growth (%) 0.4 9.0
Inflation rate (%) 3.0 1.4

Although agriculture has lost its central
role in Cte dIvoires economy, its share Overall budget balance (% of GDP) -1.4 -2.7
remains important. The country is still the Current external balance (% of GDP) 2.5 -1.2
worlds largest producer and exporter
Public debt (% of GDP) 74.5 45.7
of cocoa beans, and main producer and
exporter of coffee and palm oil, with 64.8%
of land used for agricultural purposes.7 Source: World Bank data, 2016
In 1960, the largest contributors to Figure 4. GDP disaggregation (%) 1960 vs 2015
GDP were agriculture (48%) followed

by services (39%) and industry (13%). In
100
2015, agriculture represented only 24% 100
of GDP, and services increased to 55% of 8080 39
55
GDP. Industrys share of GDP has almost 6060
%
13
%
doubled during the period (from 13% to 4040

21
21%). There has been a significant change 2020 48
in GDP sector contribution, showing that 24
0 0
Cte dIvoires economy has diversified
1960 2015
over time, reducing its dependence on
Agriculture value added Industry value added Services value added value added
agriculture and exposure to volatility of
international markets.
Source: World Bank data, 2016
Cte dIvoires primary sector is composed of

food crops (12% of GDP), export crops (11%),
and animal husbandry and peaches (2%).
The secondary sector is driven by petroleum
(7.2%), followed by the food industry (7.1%)
and extractive products (6.7%).
6. GDP disaggregation for 2013 from Cte dIvoires National Statistical Institute.
7 7. 2011 estimation; Central Intelligence Agency, 2016.
The Netherlands is the main trade partner Figure 5. Trade balance (US$m), 2000-15
of Cte dIvoire in 2015 (receiving 12% of

total exports, mostly in cocoa), followed 15 000
15 000
by the US and Belgium, with 8% and 7% 10 000
10 000
respectively.
US$m
US$m 55 000
000
Main destination partners of Cte dIvoires 00

petroleum products are the US, Nigeria -5
-5 000
and Burkina Faso, with US$545m in -10
-10 000
exports revenue in 2015.
-15
-15 000
000
Cte dIvoire exports to its partners 2000 2007 2008 2009 2010 2011 2012 2013 2014 2015
mainly agriculture products. Besides the Imports Exports Net Balance
fluctuation (linked to international price Source: UN International Merchandise Trade Statistics, 2016
variations), the contribution of agriculture
to total exports is on average 50% for the
Figure 6. Export products (US$m and %), 2015
2000-15 period.
155m, 1%
As a share of agriculture products, 5 130m, 43%
cocoa makes up 43% of Cte dIvoires 4 481m, 38%
total exports, followed by fruit products
(8%), and oil and petroleum (5%). Cocoa
generated more than US$5bn in revenues
for Cte dIvoire in 2015.
With regard to imports, 65% of Cte 508m, 4%

103m, 1%
dIvoires imported products originate from
545m, 5% 923m, 8%
10 countries of which nine are not in Africa.
Imports are mainly from Nigeria (15%)
Palm oil Cocoa Coffee Fruits Oil and petroleum Rubber Others
followed by France and China, with 14%
and 12% respectively. Source: UN Comtrade, 2017
Figure 7. Main export and import partners, 2015
Exports Imports
Country Value (US$m) Share in % Country Value (US$m) Share in %
Netherlands 1 427.7 12% Nigeria 1 444.2 15%
US 962.1 8% France 1 311.6 14%
Belgium 775.0 7% China 1 113.8 12%
France 762.2 6% US 417.4 4%
Germany 721.4 6% Italy 379.4 4%
Burkina Faso 535.3 5% India 365.7 4%
India 495.7 4% Spain 295.8 3%
Mali 487.8 4% Netherlands 272.6 3%
Nigeria 473.4 4% UK 241.8 3%
Ghana 461.3 4% Germany 240.7 3%
Other 4 743 40% Other 3 689.8 35%
Total 11 844.8 100% Total 9 772.9 100%
Source: UN Comtrade, 2017
8
Outlook for the future The vision of the NDP 2016-20 is built
The World Bank projects an average annual around four main pillars:
growth rate of approximately 8% over the
1. Cte dIvoire, an industrial power
2016-18 period for Cte dIvoire. This is
higher than the SSA and world averages 2. Cte dIvoire, a united nation in its
of 3.2% and 2.7% respectively over the cultural diversity
same period. The fast pace of growth is
3. Cte dIvoire, a democratic nation
on account of a robust macroeconomic
policy environment, a solid position in 4. Cte dIvoire, open to the world.
international markets with products like
cocoa, and a large amount of significant With a total investment of 3trn CFAF, the
natural resources like gold and natural gas. NDP 2016-20 aims to improve the well-
being of the population by reducing the
The NDP 2016-20 poverty rate and fostering an emerging
Since 2011, the government of Cte dIvoire middle class. Secondly, the plan is expected
has committed to implement structural to result in a more dynamic economy,
reforms that contribute to improve the sustained by an industrialisation strategy
macroeconomic environment and set the that promotes employment opportunities.
stage for sustainable growth. The plan is Finally, the plan also aims to reinforce
divided into two steps: the NDP 2012-15 the international and regional economic
which lays the foundation for an emerging integration of the country.8
economy; and the NDP 2016-20 which aims
at structurally transforming the country
into an industrialising nation.
Figure 8. GDP growth outlook (%), 2014-19 forecast
The reforms include:

8.5 8.4
improving the business climate by 8.0 8.1 8.1
7.8
the implementation of a dedicated
Commercial Court for business rulings,
incentives to private investors and 4.7
adopting an appropriate framework
%
3.7
3.6
for physical and financial flows in the 3.1
2.9 2.9 2.9
electricity sector 2.7 2.7
2.3
2.7
ensuring financial stability, greater 1.5
inclusion and response to financing

needs for low-income housing and
agriculture, by restructuring public banks 2014 2015 2016 2017f 2018f 2019f
and privatising financial institutions Cte dIvoire EMDE SSA* World
improving governance and transparency Source: World Bank, 2017 * EMDE SSA refers to emerging market and developing economies in SSA.
of public institutions with public financial
management and debt policy
showing long-standing commitment

to regional integration and mutually-
supportive synergies, which includes
being a member of the African Union
(AU), the Mano River Union, ECOWAS, etc.
9 8. To achieve the NDPs main objective, Table 6 in the appendix shows different areas of intervention, impacts and relative budgets. Table 7 presents the main projects.
Figure 9. CFAF vs major currencies, 2007-16

Focus on the main facts and figures
800
800
and rand
CFAF per US dollar, euro
The official exchange rate has remained
stable since 2004 with an average value 600
600
of 509 CFAF per US dollar and a fixed
rand
400
400
, euro
exchange rate of 655.96 CFAF per euro.
and
200
200
CFAF per US$
Cte dIvoire has experienced the highest 00
GDP growth since 2013 in the region with 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
an average growth rate of 8.9% significantly
Official exhange rate (CFAF per US dollar, period average)
higher than both Senegal (4.8%) and Mali Official exhange rate (CFAF per euro, fixed)
(5.1%). Exchange rate (CFAF per rand)
Cte dIvoire is a member of the Regional Source: World Bank, 2016 and Bank of Canada, 2016
Securities Exchange in West Africa (BRVM),
one of the top-performing African stock Figure 10. GDP growth for WAEMU region (%), 2013-15
markets. In 2015, its composite index grew
by 17.8%. In 2016 its capitalisation reached 10
10 8.8
7 706bn CFAF (about US$12.5bn) in actions, 8
8
and 2 509bn CFAF (about US$4bn) in 5.2
6 5.1 5.3 5.1
obligations.9 6
%
4.6 4.8
%
44 2.7
The largest companies listed on the

22
regional stock exchange are headquartered
00
in Cte dIvoire. Their average rate of return
Benin
Burkina Faso
Cte dIvoire
Guinea-Bissau
Mali
Niger
Senegal
Togo
is estimated at 8% in 2016. Companies like
SAPH and MOVIS experienced a negative
rate of return due to international factors
for the former, and end of contracts for the
latter. On the other hand, companies in the 2013 2014 2015 Average Growth
financial sector have experienced return
Source: World Bank, 2016
rates above 20%, such as the International
Bank for Commerce and Industry or
Socit Gnrale. Figure 11. Rate of return of Ivorian listed companies
Return rate/
Company Sector Year Profitability
ratio*
SOGB Socit des Caoutchoucs de Grand
Agriculture 2015 11%
Bereby
SICOR Socit Ivoirienne de Coco Rp Agriculture 2013 3%
SAPH Socit Africaine des Plantations

Agriculture 2015 -2%
d'Hvas
Bank of Africa Financial 2015 18%
Banque Internationale pour le Commerce et

Financial 2015 24%
l'Industrie de Cte d'Ivoire
Socit Africaine de Crdit Automobile Financial 2014 3%
Socit Gnrale de Banques en Cte d'Ivoire Financial 2015 25%
Bollore Transport & Logistics Cte d'Ivoire Transport 2015 9%
Source: BRVM, 2016

* Calculated as the ratio between revenue and income.
9. BRVM, 2016. Calculated at an exchange rate of 614.72 CFAF per US$ on 16th February 2017. 10
The lending interest rate10 decreased from Figure 12. Lending rate (%), 1990-2014
11% in 1990 to 4% in 2004. Since 2004, the

lending rate increased somewhat to 6.3% 1414
in 2015. According to the regional central 1212
bank, the increase is due to the excess
1010
of reserves that banks hold in BCEAO
accounts, which in 2015 was up to three 88
%%
times the required amount. 66
44
Despite the recent increase of lending
rates, the growth in total investment as a 22
share of GDP has remained positive since 00

2011. According to IMF forecasting, the
2000
2004
2006
2008
2002
1990
1994
1996
1998
1992
2010
2014
2012
indicator will continue growing until 2019
led by both private and public investments. Source: IMF, 2016, IMF estimation for 2013-16 period.
In April 2016, donors pledged to fund the Figure 13. Total investment (% of GDP), 2000-19 forecast
Cte dIvoire NDP with up to US$15.4bn in
grants and credits. The World Bank Group 25
25
22% 22%
committed to double its support for the 20
20 18% 18% 19%
20%
21%
17%
next four years representing approximately
% of GDP
% of GDP
15% 15%
1515 14%
US$5bn. The aim is to provide a sustained 13%
12% 13% 12% 11%
13% 12%
10%
1010
9%
private sector and to achieve an emerging
economy status for Cte dIvoire by 2020.11 55
00
2019f
2018f
2017f
2000
2004
2006
2008
2009
2005
2003
2007
2001
2002
2010
2016
2014
2015
2013
2012
2011
10. The rate reflects the interest at which commercial banks charge individuals and firms to obtain a loan.
11 11. World Bank, 2016.
12
Invest in Cte dIvoire | Business environment
Business environment
Cte dIvoires business environment has matured
substantially over recent years based on a stable
political environment.
One of the main pillars for investment The OHADA treaty has created a
promotion is the legal framework of supranational court to assure uniformity
the country, which has experienced a and consistent legal interpretations across
constitutional transformation in 2016 member countries.
pointing to better democratic conditions,
and education-rights reinforcement, Starting a business
among other things. In line with this, fiscal In order to facilitate and simplify the
policy is moving towards incentives for process for starting a business in Cte
SMEs with more favourable tax conditions. dIvoire, the Investment Promotion Centre
in Cte dIvoire or CEPICI was created.
Political environment CEPICI is a public institution with the main
Since President Alassane Ouattara aim to assure administrative formalities
was elected in 2010, Cte dIvoire has relating to the creation, operation,
experienced a period of political stability transmission or expansion of businesses
leading to his re-election in October 2015 and contribute to the reduction of cost
with 83.7% of votes in the first round. The and time for these procedures. All public
main challenges of his new five-year term services involved in starting a business
are to ensure social cohesion, strengthen have representatives at the CEPICI offices,
civil peace and improve the justice system. at the Guichet Unique de Formalits
dEntreprises. As a result, starting a
In May 2016, the executive appointed a business may take as little as two to
ten member expert panel to draft a new three days.
constitution, which was approved by the
government on 28 September 2016. The
draft has been criticised by members of
the political opposition and civil society
groups for lack of consensus throughout
the process, but the final document was
submitted for a national referendum in
October 2016. The new constitution was
approved with a 93% approval rate and a
42% official turnout.12
Within the new constitution, the period for

parliament members was reduced from
five to four years.
Legal and tax framework

Cte dIvoires business law is governed by
the OHADA code (The Organization for the
Harmonization of Business Law in Africa),
which is a system of business laws adopted
by 17 West and Central African nations and
open to non-members of the AU.
13 12. World Bank, 2016.

Tax Rates Figure 14. Cte dIvoires tax treaties
The Tax Law in Cte dIvoire is governed by

Country Dividend Interest Royalties
the General Tax Code and the Book of Tax
France 12% 15% 10%
Procedures (combined in a single volume).
The country has signed tax treaties with Italy 12% 15% 10%
other countries in order to avoid double Switzerland 12% 15% 10%

taxation. United Kingdom 12% 15% 10%
Germany 12% 15% 10%

Companies without the benefit of a special
Belgium 12% 16% 10%
tax regime are subject to an ordinary one,
which includes direct and indirect taxes. Canada 12% 15% 10%
Direct taxes include corporate income tax Norway 12% 16% 10%
which corresponds to 20% for individual Tunisia 10% 10% 10%
entrepreneurs and 25% for companies,
Morocco 10% 10% 10%
payroll tax, business license and real estate
WAEMU 10% 15% 15%
tax. Most direct taxes are declared in the
first quarter of the year with two payments Source: Deloitte, 2016
per year to be made during the first
semester of the fiscal year. Figure 15. Tax rates in the region
Indirect and withholding taxes are 483

85
composed of VAT (Value Added Tax) with a 85 500
440 500
tax rate of 18% and the special equipment 75
75 73.3 441 400
tax of 0.1% over the turnover subject to 304.2 68.3 400
65
profit
65 270
VAT. Withholding taxes are divided into
prot
270 270 300

300
Hours
55 224
Hours
dividends, interests and royalties with 55 51.3

ofof
47 48.3
45.1 200
200
%%
monthly payment and rates within the 45

45 41.3
range from 15% to 20%. 35 100
100
35 32.7
25
Cte dIvoires total share of taxes as 25 00
Sub-Saharan Africa
Cte dIvoire
Guinea
Burkina Faso
Ghana
Mali
Central African Republic
Senegal
a percentage of profits is 51.3% which

is aligned to the SSA average, and
below countries like Guinea and the
Central African Republic. Time taken for
administrative formalities amounted to 270
hours in Cte dIvoire, the same as Burkina
Faso and Mali. For individuals, income tax is
progressive according to different income Total share of taxes (% of profit) Time taken for administrative formalities (Hours)
levels, from 15% to 60% with allowable
deductions and tax credits including life
insurance premiums, loan interest, etc.13 Source: World Bank, 2016
13. World Bank, 2016. 14

Customs Export tax is defined in Cte dIvoires promotion was put in place at the end of
Imports legislation as Droit Unique de Sortie 2016, with a reform for cocoa exporters
Imports are subject to four duties and (DUS), which is the main source of based on the exoneration of Parafiscal
taxes: customs duty, statistical royalty, governmental revenue from export and registration fees for all national cocoa
value added and community solidarity tax taxes that varies according to the type producers.
(CST). Customs duties are harmonised of exported product and its position in
under the WAEMU regional policy and international markets. For example, coffee
Figure 16. Duties by type of good
the customs rate varies from 0% to 35% is taxed only with 50 CFAF per kilonewton
depending on the nature of the products. while cocoa is taxed with 220 CFAF per
Class Types of goods Custom duties
kilonewton.
Statistical royalties are set at 1% of customs The essential
value of goods. Goods in transit are In 2016, export taxes have been modified social goods under
0 a restrictive list. 0%
excluded from import duties and taxes due in order to support the industry locally. Example: school
to international agreements. Donations are The main changes were the reduction of books and medicines.
also exempt. export tax to cocoa butter from 14.6% to The basic necessities,
basic raw materials,
11%. Cocoa paste decreased from 14.6% to 1 5%
capital goods, specific
VAT is levied by the customs authority 13.2%, and cocoa powder tax saw the most inputs.
according to the rate in which the imported significant reduction from 14.6% to 9.6%. Inputs and
2 intermediate 10%
product falls. The VAT base consists of products.
customs value of goods plus the customs The purpose of the reforms is to
End consumer
duty and statistical tax. Finally, CST tax is make Cte dIvoire a world leader not 3 20%
products.
1% of the customs value of goods imported only in cocoa production but also in Specific goods
from third countries by member states of beans transformation, to displace the 4 for economic 35%
development.
WAEMU. Netherlands as the world leader.15
A concrete action focus on cocoa exports Source: Customs code
Exports
Figure 17. Customs duties by product
The Port of Abidjan is the most important
port in West Africa, especially for export Product Tax
activities. Export taxes represent a high Cola nuts 14% (ad valorem)
contribution to customs revenue in the
Cashew nuts 10 CFAF/kN
country, approximately 80-85%; and 60%
Coffee 50 CFAF/kN
to the overall government budget. Since
2012, exports have increased reflecting an Raw crude cocoa 220 CFAF/kN
increment in export tax as well. Superior raw cocoa 220 CFAF/kN
Other raw cocoa 220 CFAF/kN

Cocoa is the main source of exports tax
income driven by the dominant position Cocoa in mass or defatted cakes 210 CFAF/kN
that the country holds in international Cocoa cake 105 CFAF/kN

markets. However, since 2001 the export Natural cocoa butter 210 CFAF/kN
taxes from cocoa have been decreasing
Deodorised butter 210 CFAF/kN
from an amount of 39.6% to 25.3% in
2009. Tax structure includes direct tax Natural cocoa powder 105 CFAF/kN
rates, registration fees and levies to Wood and derivatives 35% (ad valorem); 18%; 10%; 7%; 5%; 4%; 3%; 2%; 1%
other institutions in charge of sector Scrap (Ord. No 2008-381, 2008) 100 000 CFAF/tonne
administration.14
Source: Cte dIvoires customs entity, 2012 *kN = Kilonewton = 102 Kg
14. IMF, 2010.

15 15. Akinocho, 2016.
Fiscal incentives for investment Article 28: Differed taxation of corporate For investments higher or equal to
General incentives from the General Tax income tax on capital gains from 1bn CFAF, the reduction is 40%. For
Code reinvestment of retained earnings: both categories, an exemption from
The business environment in Cte dIvoire VAT is granted.
prescribed reinvestment period of three
is fiscally supported with the following
years b. operational period: Operational
incentives drawn from provisions of the
incentives are divided according to
General Tax Code; namely two measures to capital gains must stem from a sale
the amount of the investment higher
promote investment: or transfer of fixed assets related to
or lower to 1bn CFAF, which is sub-
common business operations
tax deductions on investment generated divided into the locational zones of
profits for a five-year period (Article 110 acquisitions of shares of at least 30% the investment declaration regime.
of the GTC) capital of another company serves as a For example, in Abidjan the duration
fixed asset for article 28 purposes of tax incentives is five years whereas
tax deductions on capital gains under
for rural areas with a small amount
conditions of reinvestment of retained sums invested must equal or surpass the
of inhabitants the duration increases
earnings (Article 28 of the GTC). capital gain amount plus the sales price
to 15 years. In Table 4 and 5 in the
and associated costs.
appendix a detailed description of
Article 110: Deductions awarded are
both regimes is shown.
dependent upon amounts spent and the Investment Code
nature of investment. The Investment Code approved in June
The exemptions to corporate income tax,
2012 includes two different regimes:
non-commercial income tax and tax on
Conditions:
1. Investment declaration regime: The agricultural profits available through the
minimum investment of 10m CFAF, with economic incentive is granted based on incentives are reduced to 50% for the
a maximum two-year implementation three geographical zones where zone year before last and 25% in the last year.
period A is the Abidjan area, zone B is any area In other words, firms will be liable for
with more than 60 000 inhabitants and corporate income tax and other related
investment must relate to a new activity
zone C an area with less than 60 000 taxes up to 50% for the year before last
or development of an existing activity
inhabitants. The incentives granted and 75% for the last year.
(diversification or innovation)
and duration period increases as the
investments which fall under Article 28 of number of inhabitants decrease. For Firms also have a time limit of 24 to
the GTC and those carried out under the example, in areas with more than 36 months in order to implement the
Mining Codes provisions are excluded 60 000 inhabitants apart from the investments concerned.
from benefiting from the exemptions exemption from corporate income and
cited above business license tax, an 80% reduction Mining sector incentive measures for
of employers contribution is granted. investment
companies must keep accurate, and
Table 5 in the appendix presents a The Mining Code provides several
updated accounting records in order to
detailed description of the regime. incentives in regard to investments in the
benefit from the exemptions.
mining industry and establishes two mining
2. T
he investment approval regime is
regimes:
Incentives: divided into two phases:
regime of mining license (research and
35% deduction on profits earned in a. investment period: 50% reduction
exploration permit)
regard to corporate income liability for of customs duties payable on the
the region of Abidjan import of equipment and material mining authorisation regime (focuses
required for purposes of the project on reconnaissance, semi-industrial and
40% deduction on profits earned in
approved, as well as the first stock traditional exploitation activities).
regardto corporate income liability for all
of spare parts, provided that the
other regions.
amount of the investment is lower
than 1bn CFAF.
16
In regard to incentives offered, the the concession contract involves Other Exemptions:
following apply: the grant of a research permit for
any other tax on profits and dividends
hydrocarbons
a 50% reduction on registration fees paid to shareholders of the oil contract
following a capital increase the production sharing contract allows holder
the state to contract the services of an
customs and tax exemption including VAT any tax, duty, or contribution of any
oil company to carry out research and
on imported tools, parts, spare parts, nature whatsoever, national, regional or
operational activities on its behalf.
materials, machinery and equipment communal striking oil operations and
used in research activities and during the any income thereon or assets, activities
Corporate Income Tax:
exploitation phase. or actions of the oil contract holder or
For the determination of the tax base
its establishment and operation; and
and the corporate income tax, companies
Exclusions: the right to import in Cte dIvoire, tools,
holding oil contracts may deduct
materials, chemical products, machinery
tools, materials, and equipment which indefinitely, the amount not discharged of
and equipment required to carry out oil
can be found in Cte dIvoire are their fiscal deficit due oil operations.
operations of the approved programme,
excluded from these exemptions
exempt from all duties and import taxes,
All interest and premiums served to
vehicles used to transport people and including value added tax.
associates or affiliate companies as capital
goods, furniture, household effects
increases if these amounts are used
and any other equipment not approved The import exemption extends to parts
by the Mining Equipment Accrediting to cover a reasonable share of and spare parts for machinery and
Commission are also excluded from the hydrocarbon deposits development equipment required for oil operations.
above exemptions. expenditure
for the transport of their products

Specific incentives for mining entities
drawn from the General Tax Code: if the interest rates do not exceed the
normal rate used on the international
Article 5 exempts profits from the
financial markets for loans of similar nature.
exploitation of mineral deposits from
corporate income tax for five years from
Tax on Receivables Related Income:
the beginning of their exploitation phase
Interest paid to non-resident lenders
Article 134(3) exempts mining firms from concerning funds for development
social contributions due by the employer investments are exempt from any
during the exploitation phase withholding tax under tax on receivables
related income.
Article 355(23) exempts from VAT, sales
or services rendered to any entity holding
Value Added Tax and Tax on Banking
an exploration permit in the strict
Transactions (VAT and TOB):
framework of its exploration research
activities companies holding oil contracts are
exempt from VAT and TOB under their
Article 280 exempts mining operators
procurement of goods and services
from the business license tax.
directly and exclusively used in the
exercise of their oil activities except
Oil sector incentive measures for
for goods and services excluded from
investment
deduction
General incentives from the Oil Code:
goods and services that do not qualify
provides for three types of oil contracts,
for deduction are excluded from VAT
namely the concession contract, the
exemption.
production sharing contract, and the
contract on services with risks
17
After the AfDBs return, major businesses

Oil sector incentive measures for Free trade zones
became more interested in establishing
investment for service provider In the city of Grand-Bassam the Free
regional offices in Abidjan, including
Petroleum service providers are eligible Zone VITIB (its name in French) and its
Frances Cemoi chocolate plant, Germanys
to the Simplified Tax Regime if all of the Technology Park Mahatma Gandhi are
second largest bank Commerzbank, French
following conditions are met: located. The zone was created under
retail chain Carrefour, etc. The International
Article 8 of Act No. 2004-429 of 30 August
the provider is a foreign entity Cocoa Organization also approved in
2004 establishing the regime of Free
2015 the relocation of its headquarters
the provider signed a service contract Zones for Biotechnology, Information
from London to Abidjan. The relocation
with an exploration and production and Communication Technologies in Cte
will reinforce Cte dIvoires position in
company or a direct contractor of an dIvoire (ZBTIC), with the benefits of the
international cocoa markets.
exploration and production company ZBTIC regime being subject to obtaining
authorisation from the investing company.
the provider uses expensive equipment Consequently, Cte dIvoire has improved
After such an approval, companies receive
and machinery its rankings in the World Banks annual
advantages including:
Ease of Doing Business index, moving from
the provider is registered with the trade
0% customs duty 177th position in the 2014 report (out of
register of Cte dIvoire as an agency or
189 countries) to 142nd position in the 2017
branch 0% tax for the first five (5) years; 1%
report (covering 190 countries). The 2014
from the sixth year with possibility of tax
the provider files a request with the Head and 2015 reports also ranked Cte dIvoire
rebate
of Tax Office within three months after among the 10 best reformers in the world.
the start of operations in Cte dIvoire. 0% of taxes (VAT)
The improvements included the
freedom to transfer funds from salaries
Figure 18. Simplified tax regime implementation of a single user
and dividends distributed
identification number for business creation,
Taxes Rate Taxable basis long-term visa and work permit for online submission of complaints to the
foreigners and their families Commercial Court of Abidjan, publication
Corporate income tax 25% 10% of turnover
of rulings from the Commercial Court, and
no limit on foreign and local investments.
Withholding tax on
15% 50% of profit electronic land registration.16
dividends
Similarly, a regime for companies dedicated
Payroll taxes
to fishery transformation products in
For expatriate
employees
12% 8% of turnover Cte dIvoire realising at least 90% of their
annual turnover abroad, was introduced in
For local
2.8% 2% of turnover 2005. The benefits granted are:
employees
Tax on salaries (due
by employees)
full exemption of taxes
Salary tax 1.5% 8% of turnover full exemption of customs duty.

National
5% 10% of turnover
contribution tax Doing business in Cte dIvoire
General income tax 10% 8% of turnover
With the onset of political stability in Cte
dIvoire, international institutions have
Tax on insurance
premium
0.1% 10% of turnover relocated their headquarters back to
the country in recent years. The African
Source: Deloitte, 2016
Development Bank (AfDB) returned back
The taxpayer must opt to be taxed under to Abidjan in 2014 from Tunisias capital,
this regime if it wishes to operate under Tunis, where it had been headquartered
the Simplified Tax Regime. The choice is throughout Cte dIvoires period of
definitive and is subject to the approval of instability.
the Head of Tax Office.
16. US Embassy, 2015.

18
Reforms implemented have had and are expected to have a Figure 20. Evolution of Doing Business indicators, 2011-16
positive impact on the overall business environment for the next

140
140
few years, especially in fields like dealing with construction permits,
Doing Business indicator

120
Doing Business indicator

getting credit, enforcing contracts and resolving insolvency. 120
100
100
Resolving insolvency and starting a business are the two criteria 80
80
where Cte dIvoire ranks the best (68th and 50th respectively).17 60
The cost to register property has decreased since 2011 6040
(corresponding with the beginning of political stability) but also the 4020
cost and time to start a business (significant decrease in 2013). 20 0
0 2011 2012 2013 2014 2015 2016

Enabled by an improving business landscape and more efficient
investment policies, in 2015 a total of 9 534 businesses were Cost to start a business (% of income per capital)
created in Cte dIvoire, a 47% annual increase. 133 130 44 20 19 19
Time required to start a business (days)

32 32 8 7 7 7
Cost to register p
roperty (% of p
roperty value)
14 14 11 10 8 8
Figure 19. Doing Business 2016-17
Overall
Resolving 200 Starting a
Insolvency Business
50
150
Enforcing 142 Dealing with
100
Contracts 68 182 Construction Permits
101 50
0
Trading Across 150
Getting
132
Borders Electricity
113
175
Paying Registering
Taxes Property
145 139
Protecting Minority Getting

Investors Credit
19 17. World Bank, 2017.

20
Invest in Cte dIvoire | Investment opportunities
Investment opportunities
Cte dIvoire offers relatively well-developed road
infrastructure, the second-largest port in West Africa, and
a modern airport with a national airline (Air Cte dIvoire) that
serves all of the major capital cities in the region.18
Focus on priority sectors Providing decent, affordable housing has

Real estate become a key legislative component of Cte
Reforms in property registration, dIvoires government, especially the need
governmental development programmes to strengthen the financing options for
and efforts to improve the business home buyers and real estate developers.
environment are creating opportunities for The government has prioritised housing
housing finance and housing development development through supporting real
sectors. Although the governments effort estate projects, and providing insurance for
in improving the business environment mortgage loans issued by banks.
and sourcing FDI to develop urban
infrastructure and housing is paying off, The country has the lowest mortgage
there is still a need to innovate housing interest rate (5.5%) in the region. In Ghana
finance to bridge the gap between demand or Nigeria for example, mortgage interest
and supply of adequate and affordable rates are up to more than four times the
houses. rate recorded for Cte dIvoire.
The World Banks 2017 Doing Business

Figure 21. Comparative mortgage interest rates (%), 2015
Report ranks Cte dIvoire in 142nd
position out of 190 countries in obtaining
Ghana 29
construction permits with 23 procedures
and 347 days (one of the worst performing Nigeria 25
in the region). Cte dIvoire has however Sierra Leone 21
improved its score in registering property
Gambia 20
from 120th in 2015 to 113th in 2017, by
digitising its land registry system and Mauritania 18
lowering the property registration tax. Time Cabo Verde 11.5

required to register property decreased 11
Guinea-Bissau
from 389 days in 2005 to 30 days in 2016.
Niger 10.5
The registration cost is estimated at 7.6%
of property value in 2015. These costs are Togo 9.1
decreasing (9.6% of property value in 2014) Mali 8.8
and are among the lowest in the region.19
Benin 8.5
Liberia 8
The legal framework for housing facilities
has changed in recent years, allowing Senegal 6
women to own land since 1998. A building Burkina Faso 7
code was implemented in 1996 which
Cte dIvoire 5.5
defines, for example, house size (100m2)
and maximum height (four floors) for urban 0 5 10 15 20 25 30 35
facilities in the main city of Abidjan. Source: CAHF, 2016
18. U.S. Department of State, 2016.

21 19. CAHF, 2016.
Financial sector Between 2010 and 2015 both long-term this comes from individual subscriptions of
In March 2014, the government developed credit to the economy and total deposits of 59.7bn CFAF.
a strategy to strengthen the stability households and firms in banks have been
of the financial sector and promote its increasing. The insurance sector in Cte To date, the sector includes 34 member
development. The strategy focuses on dIvoire is growing steadily. Macroeconomic companies, with 18 companies operating
restructuring public banks, developing performance remains favourable for the in the non-life sector, 11 companies
private investment, strengthening the creation of new products. The government operating in the life business sector, three
transparency of financial information, encourages financial institutions, including reinsurance companies, the National Social
organising producers associations, micro-credit institutions, to increase the Insurance Fund (CNPS) and the Warranty
rationalising access to guaranty funds rate of banking through innovations and Funds (FGA).
and developing a strategy to finance external partnerships.
subsistence agriculture. The strategy According to government, despite the
is supported by the World Bank mainly The insurance market in Cte dIvoire is the strong growth of the sector, under the
through assistance to leasing institutions, a biggest among the 15 African countries of current system about 90% of Ivorians
financial inclusion support framework and the Inter-African Conference of Insurance do not benefit from any social security
digitising of government payments.20 Markets (CIMA). The market grew by 8.1% coverage. In addition, the country
in 2014 to a turnover of 254.7bn CFAF, still has an important informal sector.
In the past years, trust in the financial according to the Association of Insurance Investments are needed to modernise
system has increased, and households Companies in Cte dIvoire (Asaci). The the sector, and create new insurance
and enterprises have been using more non-life insurance sector recorded the services. Moreover, the upturn in the
financial institutions, which generates strongest growth, representing 9.3% Ivorian economy, the proliferation of major
monetary injections into the national growth, with 144.18bn CFAF (56.6% of total infrastructure projects, and the inflow of
system. The arrival of new regional banks, sales). It benefited from the strength of the private investments and their effect on
and the phenomenon of mobile money and accident and sickness segments (40.52bn employment also create more investment
microfinance institutions have led to an CFAF) and automobile (49.5bn CFAF). opportunities.
increase in bank lending and a better rate Life insurance accounted for 110.52bn
of banking. CFAF, up 6.4% from 2013. Around 54% of Energy infrastructure
Two-thirds of national electricity is
Figure 22. Financial sector developments, 2010-15
produced by thermal power stations and
Total Deposits (CFAF Millions)
25% is generated by hydropower plants.

6 000 000
6 000 000 120 000 The electricity system has been stable
Long-term Credit (Million CFAF)
Total Deposits (Millions CFAF)
5 000
5 000000
000 100 000
with a very low rate of shortages (even
during crisis periods). Cte dIvoire is a net
4 000
4 000000
000 80 000 exporter of electricity to neighbouring
countries in the West African Power Pool
3 000
3 000000
000 60 000
(WAPP).
2 000
2 000000
000 40 000
The country has an extensive electricity
1 000
1 000000
000 20 000
network, moderate electricity prices and
a reliable service. Cte dIvoire was one
0
0 0
2010 2011 2012 2013 2014 2015 of the first countries in SSA to privatise
its electricity sector and to introduce
Long-term credit to the economy
independent power producers (IPPs),
Total deposits of household and enterprises in banks
already in the 1980s.
Source: BCEAO, 2016
20. IMF, 2016.

22
Today IPPs play a leading role in electricity Figure 23. Investment in energy with private participation (current US$), 2010-14
generation based on a regulatory

framework that defines how Cte dIvoire 400
400
regulates its independent producers. The 350

350
cascading structure positions IPPs as first
Current US$m
300
300
in line in payment orders. The total amount
Current US$m
250
of private investments in the energy sector 250
200
represented US$250m in 2014. 200
150
150
As part of NDP 2016-20, Cte dIvoire has 100
set a goal of making the country an energy 100
50
hub in SSA providing quality, cheap and 50
0
abundant energy to national and sub-
0
regional populations. 2010 2011 2012 2013 2014
In response to high economic growth, the

country needs an average of 150MW of Source: World Bank, 2017
additional production capacity per year in

the system in order to meet the increasing Transport infrastructure
demand. Cte dIvoire has a relatively developed road network and the second largest port in West
Africa. By 2015, the Ivorian road network comprised 82 000km of classified intercity roads,
The government is still counting on private including 6 500km of paved roads and 4 000km of urban roads, mostly concentrated in
partners to increase national capacity by Abidjan. Cte dIvoire has three international airports, located in Abidjan, Yamoussoukro
investing in the electricity sector. and Bouak. 14 other cities in the country have regional airports, the main ones being
Daloa, Korhogo, Man, OdinnSetan-Pdro.
Cte dIvoires expects to increase its
current capacity of 1 800MW to 4 000MW The ports of Abidjan and San Pedro are only rivaled in Africa by that of Durban (South
in 2020, using both gas and hydroelectric Africa). The autonomous port of Abidjan is described as the lung of the Ivorian economy,
power. The country plans to invest with modern equipment that can supply all the landlocked countries of the region. The
US$20bn over the next 15 years. railway system is also robust, as witnessed by the surge in volumes of goods transported
by railway since 1994.
Cte dIvoires government adopted in
Figure 24. Goods transported by railway (million tonne/km), 1990-2007*
2016 the following measures to build the
foundation of a new system: 800
800
proper conditions for independent 700

700
producers to be able to sell to the grid
Tonnes/km(Million)
(Million)
600
600
replacement of the current regulatory 500

500
authority 400
Tonnes/km
400
300
300
revision of current power prices
200
200
development of guidelines on power
100
100
marketing and distribution.
00
2000
2004
2006
2005
2003
2007
2001
2002
1990
1994
1996
1999
1998
1995
1997
1993
1991
1992
23
The transport sector presents immediate the construction of the Ouangolodougou- The average monthly turnover per SIM
investment opportunities. The NDP has Niell-Sikasso-Bougouni railway for 80bn (equivalent to the ARPU) amounts to
allocated US$22bn towards transport CFAF approximately 2 800 CFAF in Cte dIvoire
infrastructure. The main areas of transport in 2015, which is the highest in the sub-
the reinforcement and rehabilitation of
investments are in building and restoration, region.
3 916km of intercity bitumen roads, at a
railway construction, and investments in
cost of 1246bn CFAF
urban trains in Abidjan. Cte dIvoire is also one of the countries
the construction of the fifth bridge of in the region where fixed internet access
The Transport Minister of Cte dIvoire Abidjan, connecting the communes of is the most developed with about 110 000
presented in May 2016 in Paris to French Yopougon and Adjam, at a cost of about subscriptions in 2015 (versus 27 000 in
and European private investors as part 200bn CFAF. Niger and 41 000 in Burkina Faso). The
of the NDP 2016-20 several investment mobile internet market contrasts sharply
opportunities, including: Telecoms with the fixed Internet market, reaching 8.5
Cte dIvoires telecommunications sector million subscribers in 2015 accoring to Cte
the design of the new airport of San
is considered to be well-developed. The dIvoires regulatory authority (ARTCI).
Pedro and its Aerocity for 45bn CFAF
number of active SIM cards in Cte dIvoire
the construction, equipment and reached more than 25 million at the end of This makes Cte dIvoire the largest market
operation of the Bouak bus station for 2015. With an average of 1.7 SIM cards per for mobile internet subscribers in West
15bn CFAF person, the country has one of the highest Africa. Its growth rate is estimated at 68%
penetration rates in West Africa. per annum.
the construction of a new cereal terminal
at the Port of Abidjan for 40bn CFAF
Of the five active mobile operators in 2015, An important reform was implemented
the construction of a new mineral two, Comium and Green Network, had by the telecommunications regulatory
terminal at the Port of Abidjan for their licenses revoked in the first quarter authority in 2012 in order to introduce
75bn CFAF of 2016 due to a lack of payment of their mobile banking services. In May 2015, the
debts to the state. Orange, MTN and MOOV Central Bank also mandated an update
the creation of a logistics platform
(Etisalat Group) continue to operate. In the of the regulatory framework in WAEMU
(Autoroute du Nord-PK26) for 25bn CFAF
fixed segment two operators are present, countries in order to allow mobile network
the rehabilitation and operation of the namely Cte dIvoire Telecom (recently operators (MNOs) to provide electronic
Abidjan-Ouagadougou-Kaya railway axis bought by Orange) and Arobase Telecom money services without being necessarily
760bn CFAF (MTN Group). associated to a financial institution.
Figure 25. Telecommunications, 1990-2014 To date most MNOs provide mobile

30 money services, used by 40% of the adult
30 0.40
Number of fixed telephone
population. The sector is moving towards

Number of Mobile Cellular
subscriptions (millions)
Number of Mobile Cellular
25 0.35
25 creating a strong mobile money system

0.30
2020 with the capacity of providing credit lines
0.25
to promote investments. It is forecasted
1515 0.20
that it could generate a direct impact of
0.15
1010 approximately 2.5% on the countrys GDP
0.10
55
growth.
0.05
00 0
As part of the NDP the country plans to
construct 5 000km of fiber optic cable
2000
2004
2006
2008
2002
1990
1994
1996
1998
1992
2010
2014
2012
to reinforce the ICT system and improve

the quality of internet connectivity for
Source: World Bank, 2016 network users.
24
Agribusiness In this agro-polar system, other basic social

Agriculture remains the greatest services (water, electricity, health and
contributor to Cte dIvoires economy, and education) are taken into account, as well
multiple investment opportunities exist. as ICT services and local finance.
Agricultural land has increased by more
than 16 percentage points from 1991 to Already in Yamoussoukro district (in the
2013, which has given the country a strong center of the country), an investment of
position in the national, regional and US$80m was mobilised to set up the Blier
international markets. Agropole around the rice value chain.
Implementation of a second Agropole in
In August 2012, Cte dIvoire established the north of the country is expected to cost
a National Agricultural Investment about US$100m.
Programme (PNIA) as the reference
framework for investment in the sector. The AfDB and the United Nations Industrial
The first phase, PNIA 1, covers the period Development Organization (UNIDO)
2012-16, with a total cost of 2 040.5bn CFAF are supporting the development plan,
(about US$3.2bn) allocated to increase considering that the transformation rate of
agricultural production. For example, cash raw materials, such as cocoa, is estimated
crops have grown from 4.9bn tonnes in at only 20%. This provides investment
2012 to more than 5.9bn tonnes in 2015. opportunities for the development of
processed agriproduct, and also for
This performance has enabled the country associated sectors such as spare parts and
to become the worlds largest producer of packaging services.21
cocoa, cashew nuts and cola. In addition,
the reforms initiated through the PNIA The country is also one of the first
enabled the agricultural sector to benefit agricultural countries that have started
from overall revenues estimated by the to implement an e-agriculture strategy.
Ministry of Agriculture at 5 652bn CFAF It is planned to implement a harmonised
(about US$9.1bn) in 2015 compared to e-platform that gives access to information,
3 362bn CFAF (US$5.4bn) in 2012. services and training for the sector
especially in rural areas.
As in the case of several African
countries such as Cameroon, Cte
dIvoire announced that it will base the Figure 26. Agricultural land use (%), 1991 vs 2001 vs 2013
second phase of its National Agricultural

Investment Programme (PNIA 2) on the 100
establishment of agro-industrial zones, or 100
80
Agropoles. Two pillars have been identified: 80
60
60
%
an upstream pillar, which looks to put in

%
40
40
place all the agricultural infrastructures
20
20
that improves productivity
00
a downstream pillar, which will facilitate 1991 2001 2013
a network of private partners for the Agricultural land (% of land) Non agricultural use of lands
conservation, processing and marketing
of agricultural products. Source: World Bank, 2016
25 21. CEPICI, 2016.

Consumer goods Figure 27. Household final consumption expenditure per capita growth (% annual), 2009-15
The consumer goods sector presents a

number of opportunities with new retail 20
20 17
companies entering the country. Over the
last years, there is an increase in consumer 1515
Annual growth (%)
purchasing power in line with better living

Annual growth (%)
conditions and a lower poverty rate that 1010 9 7

resulted in a rise in consumption and 5
5 5
product diversification. 2 3
0 0
Household final consumption per capita
growth is positive since 2012, with a growth -5 -5
rate reaching 17% in 2015. -8
-10-10
Online purchases and services in Abidjan 2009 2010 2011 2012 2013 2014 2015
are driving the consumer goods sector and
are injecting a level of dynamism in retail Source: World Bank, 2017
transactions. The country is also becoming

an attractive pharmaceutical hub and
companies like GlaxoSmithKline have made
Cte dIvoire their regional base for West
Africa.
26
Invest in Cte dIvoire | Challenges and risks
Challenges and risks

Despite Cte dIvoires promising outlook, the country
will need to address a number of challenges in order to
uphold its high growth and achieve a more sustainable
growth outlook.
One general challenge met by investors, While security challenges remain, after 14 Complexity of the fiscal framework
for example, is the lack of regular statistical years of presence the last contingent of The complexity of Cte dIvoires fiscal
information in Cte dIvoires different UN troops left the country in mid-February framework, specifically in the application
markets, industries and sectors. 2017, marking a return to stability for Cte and administration of its fiscal legislation,
dIvoire. has impacted negatively on its ranking in
Governance and stability doing business indicators. In 2016 Cte
Since the election of President Ouattara, Labour force dIvoire had the highest number of tax
the political environment has improved Skilled labour is required to support payments per year in the WAEMU region,
significantly. Moreover, regional institutions increasing FDI flows to the country. In making tax administration reform one of
and international organisations have comparison to other nations with a similar the governments priorities.
vested interests in strengthening the level of development, Cte dIvoire still
countrys stability not only economically, has a low level of education. However, The government is working on the
but also socially and politically. improvement of education especially in digitalisation of the tax administration
rural areas is part of the governments system with the objective to create a
In 2015 Cte dIvoire joined the Open priorities, with the support of different platform to facilitate payments and provide
Government Partnership (OGP) institutions such as the Global Partnership efficient procedures for firms to meet their
programme an initiative to improve for Education. fiscal obligations.
public governance. The OGP initiative was
launched in 2011 by eight countries (the US, Industrial land
UK, South Africa, the Philippines, Norway, 90% of Cte dIvoires industrial sector
Mexico, Indonesia and Brazil). is located in Abidjan. Industrial zones in
Abidjan represent 885ha. With average
It aims to promote transparency in the industry growth of 8% per annum, the
management of public affairs through availability of land for large industrial
greater accountability and citizen operations is insufficient to satisfy
involvement in order to strengthen the increasing demand.
fight against corruption and improve the
quality of governance. Consequently, the government has
increased the price per square meter
By joining this initiative, Cte dIvoire to lease industrial land from less
undertook, among other things, to make than US$0.20 to over US$8.00. In
information on public management Yamoussoukro, the administrative capital
accessible to all categories of people and to of Cte dIvoire, only two industrial zones
make it more comprehensible for greater are in operation. Moreover transport costs
transparency of public action and for a are high and the distribution network is
greater involvement of citizens in national life. inefficient.
27
Invest in Cte dIvoire | References
References
Akinocho, A. (2016). Cte dIvoire: rduction IMF. (2016). Cte dIvoire, selected issues. WAEMU. (2016). The Amended Treaty. http://
des taxes lexportation en vue pour les https://www.imf.org/external/pubs/ft/ www.uemoa.int/en/amended-treaty
transformateurs de cacao . http://www. scr/2016/cr16148.pdf
agenceecofin.com/gestion-publique/0407- World Bank. (2015). FY16-19 Country
39291-cote-d-ivoire-reduction-des- International Cocoa Organization. (2015). partnership framework. http://
taxes-a-l-exportation-en-vue-pour-les- ICCO HQ to move to Abidjan following Council documents.worldbank.org/curated/
transformateurs-de-cacao decision. http://www.icco.org/about-us/ en/343341467992463270/pdf/96515-CPS-
icco-news/290-icco-hq-to-move-to-abidjan- IDA-R2015-0239-IFC-R2015-0248-MIGA-
BRVM. (2016). Rapports socits cotes. following-council-decision.html R2015-0074-Box393199B-OUO-9.pdf
http://www.brvm.org/fr/rapports-societe-
cotes?field_secteur_emeteur_tid=All Ministry of Industry and Mines. (2016). World Bank. (2016). Cte dIvoire Overview.
Priority Projects of the Ministry of Industry http://www.worldbank.org/en/country/
CAHF. (2016). Housing Finance in Africa. and Mines. http://ppp.gouv.ci/ceoforum2016/ cotedivoire/overview#1
http://www.housingfinanceafrica.org/ presentation-ministere/presentation-en/
wpcontent/uploads/2016/09/CAHF_Housing- Mines%20Industries.pdf World Bank. (2016). Doing Business.
Finance-in-Africa-Yearbook-2016.09.pdf http://www.doingbusiness.org/data/
No author. (2016). Investment Climate exploreeconomies/c%C3%B4te-divoire/
Central Intelligence Agency. (2016). Africa: Statement. https://www.export.gov/apex/ paying-taxes/
Cte dIvoire. https://www.cia.gov/library/ article2?id=Cote-d-Ivoire-Conversion-and-
publications/the-world-factbook/geos/iv.html Transfer-Policies World Bank. (2016). Financial Services.
http://www.worldbank.org/en/country/
CEPICI. (s.d.). Investment Code. http:// OECD. (2016). Multi-dimensional Review cotedivoire/publication/financial-services-
www.cepici.gouv.ci/en/?tmp=image- of Cte dIvoire. http://www.keepeek. in-cote-divoire-banks-set-aside-in-favor-of-
top&p=investment-code com/Digital-Asset-Management/oecd/ mobile-money
development/multi-dimensional-review-
Commission Electorale Independante of-cote-d-ivoire_9789264258501-en#. World Bank. (2017). Ease of doing business
CEI. (2016). Statistique des candidatures WJSa5FUrKpo#page4 in Cte dIvoire. http://www.doingbusiness.
retenues par groupement. https://www.cei-ci. org/data/exploreeconomies/c%C3%B4te-
org/pdf/05-Candidatures-Retenues-par- RECP. (2013). Electricity Generation. http:// divoire
Groupements-15-dec2016.pdf www.africa-eu-renewables.org/market-
information/cote-divoire/energy-sector/ Yembiline, P., Diagne, I., Baguia, E., &
Croix, L. (2015). La Cte dIvoire accueille Traor, B. (2016). Cte dIvoire. http://www.
le premier magasin Carrefour dAfrique Simous, A. (2014). Observatory of Economic africaneconomicoutlook.org/en/country-
subsaharienne. pp. http://www.la-croix.com/ Complexities. http://atlas.media.mit.edu/en/ notes/cote-d-ivoire
Actualite/Monde/Afrique/La-Cote-d-Ivoire- profile/country/civ/
accueille-le-premier-magasin-Carrefour-d-
Afrique-subsaharienne-2015-12-21-1395427. The Heritage Foundation. (2016). 2016
Index of Economic Freedom Cte dIvoire.
Customs institution (2016). Export tax. http://www.heritage.org/index/pdf/2016/
http://www.dgi.cgici.com/indexs.htm countries/cotedivoire.pdf
Deloitte. (2016). Guide to Fiscal Information Toungara, A. (2016). Priority Projects

- Key Economies in Africa 2015/16. https:// in the Energy Sector. http://ppp.gouv.ci/
www2.deloitte.com/za/en/pages/tax/articles/ ceoforum2016/presentation-ministere/
deloitte-fiscal-guide-2016.html presentation-en/Energy.pdf
ECOWAS. (2015). Fundamental Principles. US Department of State. (2016). Investment

http://www.ecowas.int/about-ecowas/basic- Climate Statement. https://www.export.gov/
information/ apex/article2?id=Cote-d-Ivoire-Conversion-
and-Transfer-Policies
ICT. (2013). e-agriculture strategies. https://
publications.cta.int/media/publications/ US Embassy. (2015). Cte dIvoire Investment
downloads/ICT073E_PDF.pdf Climate Statement. https://www.state.gov/
documents/organization/241738.pdf
IMF. (2010). Export Tax and Pricing Power.
http://www.imf.org/external/pubs/ft/
wp/2010/wp10269.pdf
28
Proposal
Invest in Cte
title goes
dIvoire
here | Section title goes here
| Appendix
Appendix
29
Invest in Cte dIvoire | Appendix
Table 1.
Direct taxes
Corporate income tax Payroll tax Business license tax Real estate tax
Taxable basis Corporate income subject The tax due is levied on the Business license tax comprises a The tax is due by the owner of
to tax corresponds to the gross compensation paid to duty based on the turnover and a properties (buildings, land, etc.)
accounting profits increased by employees. This compensation rental value duty. and not by the tenant.
non-deductible expenses less includes salaries, wages, benefits
Companies with turnover of less The tax is determined on the
deductions. in cash and benefits in kind.
than 1bn CFAF are exempted basis of the rental value of the
Hereinafter a few examples of This tax comprises a withholding from the business license, the properties.
non-deductible expenses: tax on the salary supported by first two years of setting up.
The rental value of the properties
the employees and a tax due by
is determined by applying this on
duty allowances paid to the employer.
the original value a rate which
shareholders when their
The withholding tax due by the varies depending on the kind of
amount exceeds 3m CFAF per
employee varies, according to property.
year and beneficiary
revenue, marital status and
royalties paid exceeding 5% of number of children.
the annual turnover and 20%
of the overhead expenses
tax and customs penalties.
Rate 20% for individuals Tax due by the employer Rental value duty: 18.5% The real estate tax is applied at a
of annual rental value of rate of 15%.
25% for companies 2.8% for local employees
professional premises
30% for telephony companies 12% for expatriate employees
Turnover duty: 0.5% of annual
turnover, with a minimum of
300,000 CFAF and a maximum
of 3m CFAF
Filing date On 30 th May, for companies not The payroll tax return is filed and Filing date Filing date
subjected to legal audit paid the 15th of each month. On 15th March On 15th February
On 30 th June, for companies Payment date Payment date

subjected to legal audit On 15th March On 15th March
On 15th July On 15th June
30
Table 2.
Indirect taxes and withholding taxes
Value added tax Special equipment tax WHT on dividends WHT on interests WHT on royalties
Taxable basis VAT is levied on imports Companies subject to VAT Withholding tax applies WHT on interest applies A withholding tax is
and on transactions are also subject to the on dividend payments on interests, arrears, applied on gross payment
carried out in Cte Special Equipment Tax. by local entities including deposits, guarantees, made to non-residents
dIvoire by companies subsidiaries or foreign current accounts and for services supplied to
The tax applies at the rate
that, either habitually or corporations to their other interest income. companies established in
of 0.1% on the turnover
occasionally, purchase shareholders. Cte dIvoire.
subjected to VAT. The tax is assessed on
goods for resale or carry
Dividend tax is not the amount of interest, A company which has
on industrial, commercial
deductible from the arrears, deposits, no business installation
or artisan activities,
corporate tax basis. guarantees, current in Cte dIvoire is
including services as well
accounts and other considered as non-
as imports.
interest income. resident for withholding
The companies are tax purposes.
The tax on interest is
allowed to deduce from due either by interest Fee payment to such
the VAT collected on their payments or by entity is subject to a
sales, the VAT supported registration at the debit withholding tax on
on their purchases of or credit of an account. royalties.
goods and services.
Rate 18% 0.1% 15% 18.5% 20%
Filing date 15th of each month for 15th of each month for 15th of January, April, July The tax is payable the 15th 15th of each month for
commercial companies commercial companies and October for function of each month following commercial companies
allowance. the payment of interest.
10 th of each month for 10 th of each month for 10 th of each month for
industrial, mining and industrial, mining and 30 days following the industrial, mining and
oil companies oil companies distribution of the oil companies
dividends or at the latest
20 th of each month for 20 th of each month for within three months after 20 th of each month for
service companies service companies the meeting deciding service companies
the distribution of the
dividends.
31
Table 3.
Declaration regime
Investments realised in Zone A Investments realised in Zone B Investments realised in Zone C
(Abidjan area) (Area with more than 60 000 inhabitants) (Area with less than 60 000 inhabitants)
Exemption from corporate income tax or the tax Exemption from corporate income tax or the tax Exemption from corporate income tax or the tax
on non-commercial profits (as the case may be) on non-commercial profits (as the case may be) on non-commercial profits (as the case may be)
Exemption from business license tax Exemption from business license tax Exemption from business license tax
The duration of tax incentives granted is five years. An 80% reduction of the employer contribution, A 90% reduction of the employers contribution,
with the exception of the apprenticeship tax and with the exception of the apprenticeship tax and
the additional training tax the additional training tax
The duration of tax incentives granted is eight Exemption from real estate tax
years.
Exemption from any registration duty on
increase of capital
The duration of tax incentives granted is 15 years.
Table 4.
Operational period of approval regime, incentives for an
investment of less than 1bn CFAF
A 50% reduction of the employer contribution, A 75% reduction of the employer contribution, Exemption from real estate tax
with the exception of the apprenticeship tax and with the exception of the apprenticeship tax and
A 90% reduction of the employer contribution,
the additional training tax the additional training tax
with the exception of the apprenticeship tax and
The duration of tax incentives granted is five years. The duration of tax incentives granted is eight the additional training tax
years.
Exemption from the tax on rental income for
accommodations put at the disposal of the staff
members.
32
Table 5.
Operational period of approval regime, incentives for an
investment of at least 1bn CFAF
Exemption from real estate tax Exemption from real estate tax Exemption from real estate tax
A 50% reduction of the employer contribution, A 75% reduction of the employer contribution, A 90% reduction of the employer contribution,
with the exception of the apprenticeship tax and with the exception of the apprenticeship tax and with the exception of the apprenticeship tax and
the additional training tax the additional training tax the additional training tax
The duration of tax incentives granted is five years. The duration of tax incentives granted is eight Exemption from the tax on rental income for
years. accommodation put at the disposal of the staff
members
33
Table 6.
The NDP 2016-20
Quality improvement Acceleration of human Acceleration of the Harmonious Improvement of
of institutions and capital development economy, structural infrastructure regional integration
governance and promotion of social transformation through development and and international
welfare industrialisation environment protection cooperation
Area of Peace and social Education Business environment Transportation and International
intervention harmony road infrastructure cooperation
Higher education Agriculture
Defense and security Hydraulic Regional integration
Professional training Animal and fisheries
infrastructure
Rule of law and resources
Employment
democratic culture Housing and living
PTIC
Social protection environment
Governance
Commerce
Health Environment
Industry and sustainable
Nutrition development
Electricity
Population
Impact Rule of law reinforced Population skills Competitive and Sustainable Enhancement of
developed and attractive business development of quality economic insertion
Governance
aligned with social and environment infrastructures and international and
improvement and
economic development regional integration
reduction of regional Competitive agriculture Preserved environment
differences Access to productive, that ensures food and healthy living
appropriate safety and supplier conditions
and sustainable remuneration
employment
Development of
Improvement of industrial and mining
population health activities
Adequate living Development of craft,

conditions cultural, tourist and
commercial services
Budget 2 937 4 968 12 455 9 244 278
(CFAF billions)
34
Table 7.
Main projects of the NDP
Quality improvement Acceleration of Acceleration of the Harmonious Improvement of
of institutions and human capital economy, structural infrastructure regional integration
governance development and transformation through development and and international
promotion of social industrialisation environment protection cooperation
welfare
Main projects Acquisition of Construction of 10 107 Accelerate the Reinforcement and Implementation of
equipment for the classrooms for primary construction and renovation of paved economic development
Gendarmerie, the schools the renovation of roads centres
Army and the central infrastructure for the
Construction and Development and Construction
administration of supply and storage
fitting of universities asphalting of the of a dry port at
Defense (rolling and of petrol and gas
Yamoussoukro Ferkssdougou
computer equipment) Construction, products
Bouak highway
renovation and fitting Enlargement of
Construction and Construction of
of health facilities Development and sustainable community
renovation of infrastructure for
in accordance with asphalting of roads development
infrastructures electric energy supply
standards programmes
for the Army, the Construction and
Development of (agriculture,
Gendarmerie and the Fight against HIV/AIDS, exploitation of a
electric energy environment, water
central administration malaria, tuberculosis mineral terminal
transport and and forest)
of Defense (military and others
distribution Construction of
structures, brigade and Approval of a
Facilitate access to infrastructure 5 000km of fiber optics
company) regulatory and
energy services by
Exploitation of mining institutional framework
Management and reducing access costs
deposits (located west for the promotional
coordination of the
of the country and service of the foreign
budget administration
other locations) economy
Development and
Facilitate access to Improvement of the
implementation of the
technologies and working environment
state budget within
factors of production (acquisition,
timeframes
for agricultural construction,
Construction and producers renovation of
renovation of chancelleries,
structures for the residences and
reinforcement of housing)
the operational
capacities of financial
and microeconomic
management actors
35
36
Invest in Cte dIvoire | Contacts
Contacts
Dr Martyn Davies
Managing Director
Emerging Markets & Africa
Deloitte Africa
mdavies@deloitte.com
Marc Wabi
Managing Partner, Consulting and Audit
Deloitte Afrique Francophone
mwabi@deloitte.fr
Sidy Diop
Director, Economic Consulting
Deloitte France
sidiop@deloitte.fr
Hannah Edinger
Associate Director
Deloitte Africa
hedinger@deloitte.com
37
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Invest in Cte dIvoire

A business guide for Africas

Cte dIvoire is Africas

The country has a wealth of natural resources such

Agriculture is also crucial for the country in terms

Cte dIvoire is also a member of the Economic

Cte dIvoires economy

Snapshot of the past This resulted in sluggish growth over

To combat economic difficulties, the

these reforms were insufficient to 30

Throughout the 1990s, Cte dIvoire 25

growth, but at a lower rate compared to the

1970s. Throughout the 2000s, the civil war

A booming economy The services sector is mainly composed

Inflation rate (%) 3.0 1.4

GDP were agriculture (48%) followed

doubled during the period (from 13% to 4040

Cte dIvoires primary sector is composed of

of Cte dIvoire in 2015 (receiving 12% of

Main destination partners of Cte dIvoires 00

mainly agriculture products. Besides the Imports Exports Net Balance

With regard to imports, 65% of Cte 508m, 4%

Figure 7. Main export and import partners, 2015

Netherlands 1 427.7 12% Nigeria 1 444.2 15%

US 962.1 8% France 1 311.6 14%

Belgium 775.0 7% China 1 113.8 12%

France 762.2 6% US 417.4 4%

Germany 721.4 6% Italy 379.4 4%

Burkina Faso 535.3 5% India 365.7 4%

India 495.7 4% Spain 295.8 3%

Mali 487.8 4% Netherlands 272.6 3%

Nigeria 473.4 4% UK 241.8 3%

Ghana 461.3 4% Germany 240.7 3%

Other 4 743 40% Other 3 689.8 35%

Total 11 844.8 100% Total 9 772.9 100%

Source: UN Comtrade, 2017

The reforms include:

ensuring financial stability, greater 1.5

inclusion and response to financing

showing long-standing commitment

Figure 9. CFAF vs major currencies, 2007-16

The largest companies listed on the

SICOR Socit Ivoirienne de Coco Rp Agriculture 2013 3%

SAPH Socit Africaine des Plantations

Bank of Africa Financial 2015 18%

Banque Internationale pour le Commerce et

Socit Africaine de Crdit Automobile Financial 2014 3%

Socit Gnrale de Banques en Cte d'Ivoire Financial 2015 25%

Bollore Transport & Logistics Cte d'Ivoire Transport 2015 9%

Source: BRVM, 2016

11% in 1990 to 4% in 2004. Since 2004, the

times the required amount. 66

share of GDP has remained positive since 00

Source: World Bank, 2016

Within the new constitution, the period for

Legal and tax framework

13 12. World Bank, 2016.

Tax Rates Figure 14. Cte dIvoires tax treaties

The Tax Law in Cte dIvoire is governed by

other countries in order to avoid double Switzerland 12% 15% 10%