The COVID-19 pandemic has come and gone, but it has not dampened the resilience of the Ivorian economy, which is getting back on its feet with investments in strategic sectors.
By Issiaka N’guessan, Abidjan
The country can currently boast political stability after the serious military-political crisis of September 19, 2002 to April 11, 2011. All the major political players are on site after Laurent Gbagbo was acquitted by the International Criminal Court and has even been able to create a new party, the African Peoples’ Party – Côte d’Ivoire (PPA-CI). Internally, heavy investments are underway in several cities across the country. In the health sector, large regional hospitals have been built in Man, Méagui and San-Pedro to relieve congestion in Abidjan. Bouaké is seeing the construction of a new regional hospital center in addition to its university hospital. Renovation and expansion of some hospitals are underway in Korhogo and Abengourou.
« 2023 is a year for youth, who must be mentored, must be accompanied«
Côte d’Ivoire is one year away from hosting the Africa Cup of Nations (AFCON), requiring it to carry out projects that will benefit young people. « But beyond the competition, there have been significant investments, structural investments that have been made in the country to make sports infrastructure and accommodation available. This is an opportunity to strengthen the employability of young people who have contributed their labor to the construction of all these facilities but especially have been trained to ensure the sustainability of these investments, upkeep and especially in the operation of these facilities that will be made in the context of the AFCON, « said Paulin Claude Danho, Minister of Sports Promotion and Sports Economy. He also states that « 2023 is a year for youth, [who] must be mentored, must be accompanied [and] that is why the president has authorized significant investments across the territory with a new territorial coverage in terms of local sports infrastructure.”
« With the investments and reforms provided for in the National Development Plan 2021-2025 (NDP), as well as the socio-political environment that has been stable, growth is expected to rebound to 6.7% in 2023 »
Sékongo Wanvagué, President of the Union of Young Entrepreneurs in Côte d’Ivoire and Managing Director of SNATP said « the economic outlook for the year 2022 has been negatively affected by the impact of the war in Ukraine; inflation has reached 5.4%, » he says. He argues that « This factor has slowed growth to 6.0%; however, with the investments and reforms provided for in the National Development Plan 2021-2025 (NDP), as well as the socio-political environment that has been stable, growth is expected to rebound to 6.7% in 2023 ».
Major investments have been made in agriculture, with the opening of agricultural modernization hubs, such as the one in Sinématiali. This locality near Korhogo (North, Poro region) is home to the northern agropolis, with a total cost of 167.4 billion CFA francs (254 million euros). Investments are also being made in construction and public works, transport, trade and telecommunications.
« The prolongation of the war in Ukraine, a new outbreak of the pandemic, a decline in agricultural commodity prices and poor resource mobilization could jeopardize everything »
Business leader Sékongo Wanvagué says « inflation will be contained at 2.3% in 2023 » and states that « the budget deficit should be gradually kept at 3.8% of GDP in 2023, thanks to a strengthening of fiscal reforms. The current account deficit would worsen to 4.4% in 2023, in line with deteriorating terms of trade. Public debt is projected to be maintained at an average of 51.6 percent of GDP 2022-23. » However, « the prolongation of the war in Ukraine, a new outbreak of the pandemic, a decline in agricultural commodity prices and poor resource mobilization could jeopardize everything ».
According to the African Development Bank (AfDB) Country Report, “to reinforce resilience and accompany the energy transition, the NDP 2021–2025 aims to increase contributions to RE in the energy mix from 39.5% to 42% between 2019 and 2025, accelerate development of the low-carbon strategy, and reduce damages and losses linked to natural disasters. » The country made commitments at COP 15 that were confirmed at COP 26 in Egypt. « At COP26, it committed to reducing its GHGs by 30.4% by 2030 (against an initial target of 28.2% in 2015), » the AfDB argues.
Industrialization efforts are being stepped up by calling on investors to create industrial zones. A 127-hectares plot of land and another with 234 hectares in the industrial economic zone of Akoupé-Zeudji PK24 were inaugurated in Anyama on December 23, 2022. The construction of mango processing plants for women in Sine-Matiali is a response from the State.
« The private sector is committed to creating more decent jobs for youth and women to reduce poverty in our country »
Hamed Cissé, President of the General Confederation of Enterprises in Côte d’Ivoire (CGECI), is hopeful that the government will keep its commitments to make the private sector the driving force of the Ivorian economy. This involves « modernizing the administration and implementing support mechanisms for companies that [must] have better access to public orders and improving the payment period for claims on the State, according to him.
He congratulated Alassane Ouattara « on the actions of your government in favor of SMEs. Indeed, the advent of one-stop shop for the development of SMEs and the ambitious program Nugget Côte d’Ivoire should contribute to their development and the popularization of the entrepreneurial culture in our country, » he said. Hamed Cissé is reassuring on the private sector’s contribution to support the state dynamics. « In support of your efforts, the private sector is committed to creating more decent jobs for youth and women to reduce poverty in our country. It is also committed to maintaining social peace within companies by promoting quality dialogue with all social partners, in particular with the most representative trade unions. It is in this spirit that we have worked on a 25% increase in the minimum wage, » he said on January 5, at the ceremony to present New Year greetings to the Head of State in Abidjan-Plateau.
« We hope to see the improvement of the business environment as well as tax reform, industrialization and especially the promotion of national champions continue. A strong and dynamic national private sector guarantees the acceleration of the structural transformation of our economy to which you are so attached, » wished Hamed Cissé before assuring Alassane Ouattara that, « entrepreneurs in Côte d’Ivoire stand by your side for the success of the NDP 2021-2025. The private sector will always remain an effective partner in the government’s action and in the success of a more prosperous and united nation, in accordance with your 20-30 vision, » said the president of CGECI.
« In this demanding continental and global context, we will have to redouble our efforts »
The Ivorian Prime Minister sets the tone. At the first Council of Ministers meeting of the year on January 4, Patrick Achi said « in 2023, in this demanding continental and global context, we will have to redouble our efforts to move projects forward on the ground and show the utmost rigor in the management of public finances.”
Then, Alassane Ouattara assured the business leaders that « our ambition, as you know, is to continue to promote the private sector which is the foundation of growth in Côte d’Ivoire owing to its strong contribution to job creation and investment in our country. Thus, 75% of the investments of our national development plan 2021-2025 are expected from the private sector. » The Ivorian president said: « to achieve this, the government intends to pursue major reforms aimed at improving the business environment and greater support for SMEs. » He listed « efforts to reduce to less than 30 days the payment terms of invoices of SMEs due by the central government, state enterprises and public companies, because I know that significant efforts have already been made in this area, » he said reassuringly.
