In the past few weeks, we have been enlightened on some important aspects of the country cote d'Ivoire. In this week’s edition, we are going to talk about the economic aspect of the country. As we know, Côte d'Ivoire is one of the world's largest cocoa producers and exporters (30% of world production), one of the world's three largest cashew producers and exporters, and a significant exporter of palm oil, coffee, and oil. The economy of the country is based mainly on agriculture. The primary sector accounts for nearly a fifth of GDP and employs less than half ( 48 percent) of the active population of the country. By building raw material processing units, the government is attempting to increase agricultural production. It introduced a 5-year plan (2018-2023) sponsored by the World Bank, valued at XOF107 billion, in January 2019. Over the past few years, the oil sector has been gaining weight, exploiting a steady growth rate, and large investments. There are some mining activities in the country, particularly precious minerals, such as gold and diamonds, but also others, such as nickel. The manufacturing sector also accounts for a quarter of the GDP, but just 6% of the active population is working. The major manufacturing sectors in the country include food processing, textiles, building materials, fertilizers, tuna canning, motorcycles, assembly of vehicles, and bicycles.

 As in many other African countries, in the past few years, the tertiary sector has expanded at a relatively rapid pace. The telecommunications industry is booming and is the main driver of services, along with other industries. The service industry accounts for approximately 42% of GDP and hires 46% of the workforce. The economy keeps reporting positive figures. In 2018 and 2019, real GDP growth was 7.4 percent. The service sector, contributing 3.4 percentage points to growth in 2018, remains the main engine of the economy. Thanks to a competitive agro-food industry and the construction and public works market, the industry contributed 1.5 percentage points in 2018. Thanks to agriculture, which benefited from good precipitation and seed distribution by the nation, the primary sector contributed 0.8 points. Because of the slump in oil production, the contribution of extractive industries dropped. Export taxes and duties are expected to make up about 10 percent of overall tax revenues in 2019. More than 40 percent of the country’s overall imports are now imports of petroleum products and food products. Public debt rose to 52.0 percent in 2018 from 49.8 percent of GDP in 2017. Owing to the fall in cashew and rubber prices, the current account deficit deepened to 4.7 percent in 2018 but improved to a projected 3.9 percent in 2019. The fiscal deficit was 3.9 percent of GDP in 2018, funded largely by bonds, and an estimated 3.1 percent of GDP in 2019. Côte d'Ivoire's growth in 2019 was 6.9 percent, guided by sustainable investment, higher cocoa sales, and higher social spending, according to the IMF Côte d’Ivoire’s economic growth is now expected to be 1.8% due to the impact of the coronavirus on the economy. Speaking during the opening of the AfDB annual meetings on August 26, the Ivorian President, Alassane Ouattara , said the weakest performances will come from Agriculture, construction, transport, and tourism, which are the most affected sectors. The new growth outlook is close to that envisaged by the “median” scenario prepared by the country’s authorities concerning the impact of Covid-19 on the economy. Growth under this plan was seen at 1.6% of GDP in case the pandemic is controlled at the end of September 2020. Better forecasts were however made by the International Monetary Fund (IMF), which sees the Ivorian economic growth at 2.7% for 2020, against 6.9% in 2019.

In keeping with the WAEMU(West Africa Economic and Monetary Union) norm, the government sets a budget deficit target of 3 percent of GDP. To maintain strong development, ensure macroeconomic stability, reduce poverty, and foster inclusiveness, the Ivory Coast has adopted a program of macroeconomic policies and structural reforms. The National Development Plan 2016-20 focuses on diversifying production, improving the processing of raw materials, and establishing primary sector value chains. Following the previous one, the 2020 State budget prioritizes the systemic transformation of the economy and the enhancement of the living conditions of the population. To accelerate the initiatives of the National Development Plan (NDP) that have the greatest social impact, the authorities will follow the PSGouv program launched at the beginning of 2019. These programs include rural electrification and social electricity tariffs for poorer families, and the October 2019 introduction of a universal health care system. The government will increase its project expenses from 1 % of GDP in 2019 to 1.5 % of GDP this year. In 2019, the debt to - GDP ratio was 52.7% while inflation was sustained at 1%, well below the WAEMU criterion (3%). In December 2019, under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), authorized three years earlier, the IMF completed its sixth review and found the country's performance satisfactory. According to the IMF, fluctuations in agricultural and mining exchange rates, climate conditions, security threats, and the tightening of financial markets are among the challenges facing the region. Some volatility can also be applied to this overall favorable economic outlook by the political background ahead of the October 2020 presidential elections. Finally, the inflation rate increased to 0.8% in 2019 and this trend should continue in the next two years, reaching 1.2% in 2020 and 1.4% in 2021 (April 2020 World Economic Outlook IMF).