Ivory Coast: Economic and Political Overview

Economic Indicators

Côte d'Ivoire’s  economy proved resilient to the Covid-19 pandemic, and is amongst the fastest growing economies in Sub-Saharan Africa. After reaching 6.7% in 2022, GDP growth stood at an estimated 6.2% in 2023, primarily driven by private consumption, the surge aligns with efforts to bolster purchasing power, expand industrial development initiatives, and enhance agricultural output, notably cocoa, with an increased government-guaranteed price set for the 2022-2023 season. In 2024, economic activity is expected to sustain its robust momentum, largely driven by the surge in industrial activities and supported by moderating inflation and increased global demand. Public investment, notably in infrastructure and public facilities, will remain elevated, in line with the objectives outlined in the National Development Plan (NDP, 2021-2025). The IMF forecasts growth at 6.6% this year and 6.4% in 2025.

Despite the gradual narrowing of the public deficit, it is projected to persist above the West African Economic and Monetary Union's (WAEMU) recommended target of 3% of GDP in both 2023 and 2024. To alleviate the effects of increasing prices on household purchasing power, social spending remained substantial in 2023. However, it is anticipated to decrease in 2024 due to easing inflationary pressures and the government's aim to substitute subsidies (primarily on food and fuel) with targeted financial aid for the most economically vulnerable households. Nonetheless, the multitude of public investment initiatives will sustain expenditure levels. Fitch Ratings estimated the budget deficit to have narrowed to 5.3% of GDP in 2023 from 6.8% in 2022, with a further reduction expected this year (4.4%) and in 2025 (3.5%). Public debt remained stable in 2023 (56.8%), still well above its pre-pandemic level of 38%, but should decrease over the medium term amid budget consolidation and strong GDP growth. Inflationary pressure are expected to ease in 2024 to 2.3%, down from 4.3% in 2023, returning below the regional target of 3% set by the BCEAO.

Despite good economic performance, the poverty rate grew sharply compared to its level three decades ago. More than 40% of the population lives under the poverty threshold, and around a quarter of the working population remains unemployed. Unemployment rate was estimated by the World Bank at 2.5% in 2022; however, around 40% of theworkforce is employed in the informal sector.

Main Sectors of Industry

Côte d'Ivoire is the world’s largest producer and exporter of cocoa (30% of the world production), one of the three bigger producer and exporter of cashew, and a major exporter of palm oil, coffee and oil. The country’s economy is mainly based on agriculture: the primary sector contributes to 16.7% of the GDP and employs 46% of the country's active population (World Bank). The government is trying to maximise agricultural output by developing raw material processing units. In recent years, rubber output has increased substantially. The oil sector has also been gaining weight, leveraging a steady growth rate and major investments. Moreover, the country has some mining activities, particularly of precious minerals, such as gold and diamonds, but also others like nickel.

The industrial sector contributes to 22% of the GDP and employs only 10% of active population (World Bank). Key sectors include agro-processing, petroleum refining, and manufacturing. Agro-processing is a cornerstone of the Ivorian industrial landscape, with cocoa processing being particularly significant due to Cote d'Ivoire's status as the world's largest producer of cocoa beans. Additionally, the country's oil refining industry benefits from its status as a regional hub for petroleum products. Manufacturing, including textiles, chemicals, and food processing, is also an important sector, driven by government efforts to diversify the economy and promote industrialization.

The services sector contributes to 53.7% of the GDP and employs 44% of the workforce (World Bank). Like in many other African countries, the tertiary sector has grown at relatively rapid rate in the last several years. The telecommunications sector is booming and is one of the key drivers of services. Côte d’Ivoire has the most developed banking sector in the WAMU area. The banking sector comprises 28 banks and four financial establishments (data Central Bank of West African States).

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	45.2	10.4	44.4
Value Added (in % of GDP)	14.4	23.9	54.6
Value Added (Annual % Change)	-1.7	6.1	9.4

Source: World Bank - Latest available data.

 

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Monetary Indicators	2016	2017	2018	2019	2020
CFA Franc BCEAO (XOF) - Average Annual Exchange Rate For 1 MUR	16.68	16.88	16.38	16.50	14.63

Source: World Bank - Latest available data.

 

 

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Indicator of Economic Freedom

Definition

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:

61,7/100

World Rank:

91

Regional Rank:

7

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

 

Foreign Trade in Figures

The Ivory Coast is the hub of commercial activities in West Africa. The share of foreign trade in the country's GDP is 52% (World Bank, latest available data). Exports are primarily composed of industrial agriculture and exports (40.1%), mining products (17.8%), manufactured products (20%), and first-stage processed products (18.3%). In detail, exports are dominated by cocoa (processed and unprocessed, accounting for 30.2% of total sales), gold (11.9%), petroleum products and crude oil (18.5%), natural rubber (11.4%), and cashew nuts (6%). The main imported products are petroleum products (including crude oil), accounting for 26.8% of imports. Following that are imports of mechanical machinery (6.93%), and iron, steel, and related metal products (5.75%). Among food products, rice (4.65%) and fresh fish (4.23%) are the two main items (data French Ministry of Economy for 2022).

The Ivory Coast is a member of the UEMOA (West African Economic and Monetary Union), which enforces a Common External Tariff (CET). It also belongs to the Free Trade Zone. In 2008, the Ivory Coast signed a stepping stone economic partnership agreement (EPA) with the European Union (EU). This agreement entered into provisional application on 3 September 2016 and essentially aims at maintaining the preferential trade system that exists between the EU and the Ivory Coast (Nigeria is the only country in the region that has is yet to sign the EPA, which is why the agreement is not yet applied). It will be replaced by the regional EU-West Africa EPA. Ivory Coast is also a signatory to the African Continental Free Trade Agreement.  According to Comtrade, the country's main export partners in 2022 were Mali (8.9%), the Netherlands (8.7%), Switzerland (8.1%), the United States (5.3%), Burkina Faso (5.2%), and France (4.5%); whereas imports came chiefly from China (14.4%), Nigeria (12.1%), France (6.7%), India (5.2%), and the United States (4.7%).

The Ivory Coast has a structurally positive trade balance; however, the country’s recorded a deficit in 2022, when it exported USD 16.4 billion worth of goods while it imported for USD 17.9 billion (+7.2% and +28.1% y-o-y, respectively). The raise in imports was influenced by rising energy prices. Concerning services, exports stood at USD 958 million while imports totalled USD 9.8 billion. The World Bank estimated the trade deficit at 2.6% of GDP (from a surplus of 0.1% one year earlier). According to preliminary figures from the Ivorian Customs, exports saw a rapid growth, reaching XOF 12,301 billion in 2023, marking a clear rise compared to the XOF 9,204 billion of the previous year. Similarly, imports also rose, increasing from XOF 10,070 billion to XOF 11,451 billion during the same period. The primary drivers of export growth in 2023 were cocoa beans and their derivatives, petroleum products, crude gold, and natural rubber, collectively representing 70.1% of total exports.

Sources of General Economic Information

Ministries

Ministry of Economy and Finance (in French)

Statistical Office

Côte d'Ivoire National Institute of Statistics

Central Bank

Central Bank of West African States

Stock Exchange

BRVM

Search Engines

Google
Abidjan.net
Africaonline

Economic Portals

Ivory Cost Economic Portal

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