The economic growth, the pace of 8.3 % a year on average in the period 2012-2018, the classroom, the Ivory Coast, among the ten nations that achieve the best economic performance in the world. In addition, the country is placed, three times in the top 10 reformers in the world, in 2014, 2015 and 2019, according to the filing Doing Business the World Bank. Even more, the London Stock Exchange (LSE), class of the Ivory Coast among the countries in pre-emerging, the only country in francophone sub-saharan Africa.

Should it be read, through the outstanding performance, the effect of an economic rebound after more than a decade of crises, as some believe economists ? Or, on the contrary, is the result of a development strategy that is well thought out ? It is evident that seven years of sustained economic growth cannot be explained by a simple rebound effect, for a country that has significant economic potential. It will be recalled, the economy of côte d'ivoire is the first of the UEMOA (economic and monetary Union of west africa), and the third of the ECOWAS (economic Community of the States of the West Africa).

A vision proactive

The vision promoted by the government from may 2011 was « make Côte d'ivoire an emerging country by 2020 ".

 

In accordance with this directive, the Government has made in recent years, a development strategy to rebuild the productive apparatus of the State, while promoting the development of the private sector. The implementation of this strategy has been preceded by the resolution of several issues.

 

Peace, security and sovereign debt restructuring

The action of the Government was intended to meet the conditions of the break with a cycle of more than ten years of socio-political crises and military. The priorities of the first "National Development Plan" (2012-2015) have been oriented to the peace, security, national reconciliation, social cohesion, national reconstruction and economic recovery.

The action of maintaining the peace and security was conducted by the Government in conjunction with the United Nations forces. The involvement of some of the neighbouring countries and the sub-region, including Liberia, Ghana, Togo and Benin has extinguished the hotbeds of tension, the threats of external origin and consolidate the gains of the peace and internal security. Thus, the country was able to arrange, from October 2015, the presidential and legislative elections is open, transparent and peaceful, thus promoting the end of the UN mission in June 2016.

To ensure the sustainability of public finances, factors essential to the conduct of any economic policy, the Government proceeded to the restructuring of sovereign debt. The recovery of the debt ratios below community standards and international has enabled the country to obtain, again, a financial credibility among international institutions and investors.

 

Accelerate the economic growth and national reconstruction

In the aftermath of the post-electoral crisis, the Government has made the choice to reconnect with the policies of inspiration keynesian to rebuild the productive apparatus of the State within the framework of the National Development plan (2012-2015 and 2016-2020).

Through these development plans, the Government emphasizes the contribution of all sectors in the economic dynamic. A prominent place is given to the private sector, considered as the main engine of growth. The development model maintains the ideals of liberalism and openness outdoor, characteristics of the development policy that has made the success of the country during the decades of 1960 and 1970, billed as " ivorian miracle ».

At the level of public finance, the control of the budget deficit is one of the criteria of performance of key Economic and Financial Programmes concluded with the IMF since 2011. It is the sustainability of the public debt, with a debt ratio 48.6% of the GDP, to this day, against a community standard (UEMOA) of 70 %. With a debt ratio of 37 % after the debt restructuring in 2012, the additional indebtedness had been oriented towards the structuring investments and the response to the social demand.

 

Support a dynamic economy driven by the private sector through structural and sectoral reforms

In view of achieving levels of private sector's contribution to the expectations, the Government has put emphasis on the improvement of the business climate. These reforms are implemented through national and international programmes of reference, including the Doing Business, the Initiative for Transparency in the Extractive Industries (EITI), the Millennium Challenge Corporation (MCC)the Open Government Partnership (OPG) and reforms the community of the UEMOA.

These reforms are implemented in the areas of governance and transparency of public action, the liberalization of the economy, the equity of the genre. At sector level, the "investment Code" has been reformed twice, in 2012 and in 2018, in order to take better account of the evolution in the context of investment, in terms of tax incentives, ecosystem and governance.

 

Deploy the full potential of the sectors offers

The contribution of all sectors to offer growth is sought through the implementation of important structural and sectoral reforms. Specifically, the objectives are to ensure the structural transformation through industrialization and the development of value chains in agricultural, as well as the development of the mining potential. The high value-added services, including ICT (information and communication), the transport, CONSTRUCTION and tourism are also the subject of development programs ambitious.

 

The agricultural sector still has significant potential to enhance the level of value chains. The "Programs National Agricultural Investment" (NIPA 1 and 2) are implemented to clean up the environment of the sector and stimulate private investment. One of the essential prerequisite for land reform, including the institutional component has resulted in the creation of the Agency of Land in Rural areas (AFOR).

In regards to the processing of raw materials, the goal is to achieve a rate of 50 % against 33 % for cocoa in the year 2023, and less than 10 % to 100 % for cashew nuts in 2021. Of the sectors of food with a high potential, especially for rice and cassava, are the subject of intent investment for infrastructure projects.

This reflects the existence of growth in the agricultural sector. The industrial policy is oriented in the direction of the transformation in the areas of production of agricultural commodities. It provides, to this effect, the creation of industrial infrastructure in the regions concerned, with the support of the equipment and the transfer of technology, as well as support the financing of companies.

 

The development of the mining potential of the country is one of the pillars of this policy development. With ores such as gold, manganese, bauxite, iron, nickel, mining potential of the Côte d'ivoire is important. Some of these ores are the subject of development programmes, supported by the mining code and attractive.

The Mining Code adopted in 2012 sets out clear provisions concerning, in particular, the award of the mining permit and the relationship between the mining companies and the occupants of the soil.
This Code has earned the Ivory Coast to win the award for best country in regard to the reform of mining in 2014 at the Forum Mines and Money in London. At the level of hydrocarbons, the reform of the code oil has promoted the conclusion of many-sharing contracts petroleum (MPC). The hopes of revival of the oil and gas production are real with the anticipated success of the exploration blocks in ultra-deep offshore.

 

The economic growth is also from the BTP, the subject of major investment programs in the infrastructure development (roads and highways, ports, airports, ICT, hydraulic) and in the housing, economic and social.

 

Raise the demand sectors : investment, exports and final consumption in order to revive economic growth

The leverage of the investment has been used in the dual objective of improving the competitiveness of the economy and respond to the social demand in various areas of public action. The objective was to break with a cycle of investment to fall imposed since the 1980s by the effect of the public debt crisis. The rate of investment is increased from 25 % of GDP in 1980 to 8.9% in 2011.

The recovery of the investment has been used as the main lever of economic growth, with the gradual rise in the rate of investment, which has seen a steady growth to reach 12.8 % of GDP in 2012 and 20.1 % of GDP in 2018.

Public investments have experienced a significant increase over the period, from 2.6 % of GDP in 2011 (about us $ 314 billion FCFA) to a little over 7 % of GDP in 2018 (about 1.677 billion FCFA). The public investment and the involvement of the private sector, through public-private partnerships, have enabled the implementation of an ambitious programme of rehabilitation and development of economic infrastructure.

On both PND, the contributions of the private sector are estimated to average more than 60 % of the total investment. The private investments that were 6.3% of GDP in 2011 (approximately 758 billion FCFA) are passed to 13.1 % of GDP in 2018 (based on approximately 3.120 billion FCFA).

On exports, they have benefited from the effect of production to high levels of cocoa bean, cashew nut and rubber. Côte d'ivoire consolidates its position world's largest cocoa producer, exceeding the threshold of 2 million tonnes per year. She became the first world producer of raw cashew nut with more 761.317 tonnes in 2018. The production of rubber has reached it 624.000 tonnes of rubber sec.

A diagnostic study conducted by McKinsey & Company shows that the increase of the agricultural production was accompanied by an increase of the productivity of the sector. This trend is in favour of a national transformation and increased in line with the objectives. To this effect, special provisions for incentive, beyond those provided by the new investment Code, are in place for these three sectors. Thus, the structure of exports should gradually be favourable to products with higher added value.

The case of the final consumption, it has benefited from the effect of the growth of GDP per capita, which was believed to 49.7 % from 2012 to 2018. The increase in final consumption is also of the effect of social policy, in particular the increase in the minimum wage to 60.000 FCFA, as well as the increase of the salaries of officials and agents of the State.

 

Introduce a growth more inclusive

The ivorian government has made it a point of honour to the improvement of the living conditions of the population in the aftermath of the post-election crisis. Thus, in link with the directions of PND 2012-2015 and 2016-2020, a fiscal effort of accumulated 12.329 billion FCFA has been carried out under the pro-poor expenditure. This effort has yielded significant social achievements in various fields, including :

  • The strengthening of access to education ( primary, general secondary, and technical, vocational training and higher), through major programs and projects for the rehabilitation, construction and equipment, accompanied by recruitment of the masses teachers in the public service.
  • A particular emphasis on the health, social protection and the fight against poverty, with the upgrade of infrastructure and technical facilities of hospitals and health centres, in view of the gradual operational implementation of the Universal health Coverage. In addition, the project social nets productive allowed to make monetary transfers for the benefit of 35,000 households vulnerable.
  • In terms of housing, an extensive program of 150,000 housing and economic has been launched, with support from the State, including in particular, the establishment of a tax incentive, access to land, the achievement of the DIVS, the connecting sites to the networks of electricity, water, sanitation), the bonus of ready buyers. However, this programme has not yet given rise to a mass production of housing.
  • In terms of employment, performance accumulated wear on a staff of approximately 2.635.000 jobs of 2012 to the end of August 2018, of which approximately 635.000 modern jobs and 2,000,000 in the informal sector.

 

These achievements have helped to substantially lower the level of poverty is still very high in the country, from 51% to 46.3%. To accelerate this momentum, the Ivory Coast has established in 2018 with a special program dedicated to the social sector, called "Social Program of the Government" (PSGOUV 2018-2020) cost of 727,5 billion FCFA. This program will help to accelerate the achievement of the twelve projects with strong social impact on the period 2019 and 2020, namely :

  • The strengthening of the Program of Free Targeted
  • Strengthening the Expanded Programme on Immunization
  • The gradual operational implementation of the Universal health Coverage (CMU)
  • The intensification and broadening of the coverage of the programme beneficiaries of social safety nets productive
  • The development of empowerment activities for young people and women
  • The improvement of the conditions for study and supervision of students (recruitment special for young graduates as teachers and equipment in benches tables)
  • The improvement of the living conditions of students in middle school through the construction of latrines in schools in the villages declared an End to open Defecation Free (PLEV-ODF)
  • The Decline of the social Tariff of electricity
  • Accelerating access to electricity by the strengthening of the National Programme of Electrification Rural (ADVOCATE) and the Program of Electricity for All (PEPT)
  • The strengthening of the programme of access to drinking water in rural areas
  • The expenses of transport on the food by the reprofiling of 120 000 km of dirt roads and rural roads on the extent of the national territory
  • The acceleration of the program of social housing

 

 

Play a major role in the process of regional integration

Regional cooperation is one of the levers which could be amplified for the benefit of the socio-economic development of the country and the fight against terrorism, which is a cross-border phenomenon.

In this context, the Ivory Coast has established itself as an important actor in the dynamic economic and political sub-regional, where she is actively involved in the functioning of the organs, and the implementation of sub-regional initiatives of the UEMOA and ECOWAS.

At the political level, the president of the Republic has assumed the role of president of the conference of heads of State and Government of ECOWAS from 2012 to 2014, and since 2016, the current president of the Conference of heads of State of UEMOA. In addition, the Ivorian Jean-Claude Kassi Brou provides, since march 2018, the president of the ECOWAS Commission. The Ivory Coast, across these different organizations, is also heavily involved in the creation of the free trade Area of the continental (CFTA), as well as for the creation of the single Currency of the ECOWAS zone.

At the economic level, the strategy of the Government of Côte d'ivoire a hub sub-regional level, both in energy and road transport, air and sea ports. Major projects are implemented in this direction, including :

  • The supply of electricity to the five countries of the sub-region : Burkina Faso, Mali, Togo, Benin and Ghana. It is envisaged that, in the long term, the supply of electricity to all the countries of the Mano River Union (Sierra Leone, Guinea and Liberia).
  • The upgrade of the international airport FHB d'abidjan and the certification american.
  • The expansion of the autonomous ports of Abidjan and San Pedro.
  • The participation to the major motorway projects, sub-regional, such as highway Abidjan Lagos.

In addition, significant bilateral and multilateral projects are implemented in the framework of sub-regional cooperation, such as the common policy between Ghana and Côte d'ivoire in the field of cocoa, the development of the Special Zone Sikasso–Korhogo-Bobo Dioulasso, between Côte d'ivoire, Mali, and Burkina Faso, the programs of the Treaty of Amity and Cooperation (TAC) between Côte d'ivoire and Burkina Faso.

 

What are the prospects in the medium and long term ?

The strategy espoused and implemented by the Government since 2012, has proven through the results in tremendous economic and social improvements obtained, its effectiveness.

However, she could not pretend to bring in the state all the answers that require the development requirements. It is a strategy that is flexible enough that the Government is continually adapted to the main issues that are surfacing, without forgetting the long-term aim that is to make Côte d'ivoire an emerging country. This flexibility is realized, in particular, by the establishment of the PSGOUV which will provide a boost to the response to social needs.

However, the challenges are many in both the economic and social. For the World Bank, these challenges are the following :

  • Improving the quality of Human Capital
  • Acceleration of the advanced level of the digital economy
  • Further regional integration and, more particularly, the integration of value chains regional
  • Strengthening the resilience of the economy of côte d'ivoire

 

In the framework of the continuation of the implementation of this strategy, the Government has begun, with the support of the office of strategy McKinsey, the development of the " Strategic Plan Côte d'ivoire 2030 ". It is included in the duration and speed up the actions deployed to allow the structural transformation of the economy.

This new plan, which takes into account the key issues of socio-economic development, will focus on four main areas, namely :

  • Build the human capital of the future, by strengthening the systems of education and health
  • Re-energize the motors, jobs and social inclusion
  • To continue with the upgrade of the accelerator of growth (infrastructure, business environment, financing)
  • Upgrade the engines of exports and investment in industrialization and targeted development of a hub tertiary in an approach to sub-regional integration)

 

Strong action to accelerate the economic recovery

In the end, the development strategy implemented by the Government since 2011 is based on a mixed, combining the fundamentals of a liberal economy and the keynesian approach emphasizing strong action at the level of the demand to accelerate the economic recovery.

This joint proved to be indispensable to the extent that the economy of côte d'ivoire, weakened by years of crisis, was in need of a public action consequent to upgrade the socio-economic infrastructure.

In the second phase of the deployment of this strategy, it will be a guide, this time, the national efforts towards the recovery of human capital and employment, strengthening the development of infrastructure and accelerating industrialization, in order to constitute an exporting power sub-regional basis, particularly for the manufacturing products, processed agricultural products and the service sector.