Economy: Chamber of Commerce and Industry of Côte d’Ivoire

Interview with Nicolas Djibo, President of the Chamber of Commerce and Industry of Côte d’Ivoire and Mayor of Bouaké

What changes have occurred in Côte d’Ivoire since the events of 2011? What is the current business climate here in Côte d’Ivoire? What is the current situation for the companies that you represent?

My evaluation of the business climate here in Côte d’Ivoire is positive. We have seen good macro-economic growth indicators since 2011. Growth rates have been at 9% for the last 3 years and we expect to see 10% growth in the coming years. This shows that the Ivorian economy has altogether gained strength and so the business climate here reflects that. The evolution that we have seen since 2011 is a result of the Ivorian authorities´ desire to re-position Côte d’Ivoire as a top performing country in terms of its economy. This is why we have had business and economic reforms put in place in various sectors, for example, the legal sector and sectors linked to competition. We hope that these reforms will position Côte d’Ivoire in a much better standing.

What would you say still needs to be improved? What could the government do to improve the situation for companies here that are still not happy?

In my opinion, I think that companies have two concerns: the main concern is linked to the crisis and the compensation for the companies that were badly affected. I´m sure you have heard from companies that are complaining about the damages that they suffered. The government has put in some new measures in terms of easing taxation for some businesses, but these companies are asking for more. They want to see some real compensation, i.e. some cash, because they really lost huge amounts of revenue due to that crisis.

A problem that we have today and one that the government must face is the problem of domestic debt. The Ivorian economy is still too dependent on the state. The state is both the leading supplier and the leading client of the economy. It is clear that while the state does not take a step back as an economic player there will be problems. Our domestic debt is still significantly large and the promises made to avoid having an outstanding balance for more than 90 days have not yet been fulfilled. However, I believe we are on the right track to be able to achieve our repayment goals and it is time that we do so.

Obviously, the government needs the revenue from the taxes and so the taxes increase and industry costs increase.

Yes, there are real estate costs and taxes. Nevertheless, it must be said that these decisions were necessary for tens of years. It is clear that we need to see an adjustment, but I actually think this could have been too brutal, and we are still discussing the matter with the Minister of Industry.

If you were to talk to a foreign company that wants to invest here, what would you say are the advantages of investing Côte d’Ivoire?

The main attraction is the huge potential in raw materials. Companies in the agro-business sector are sure to find something to do here in terms of interesting business deals. Industrial businesses will also certainly find opportunities here. Côte d’Ivoire has enormous potential both in the agricultural and industrial sectors and Côte d’Ivoire is now seeking to develop the mining sector. It represents huge potential whether in terms of manganese, gold, copper or other different minerals. Thus, the main strength of Côte d’Ivoire is that it is blessed with important raw materials that can be used appropriately in various business sectors.

The second strength is that Côte d’Ivoire is the entry point to the hinterlands. Many countries in the hinterlands do business via Côte d’Ivoire. Therefore, a foreign investor that comes here to Côte d’Ivoire is not just looking at a market of 20 million people, because they can also take on the WEAMU market that represents a hundred million people and if they wish to go even further they can reach the ECOWAS market because Côte d’Ivoire is part of these regional groups. Thus, not only does Côte d’Ivoire have its own strengths and potential, but these are multiplied when you take into account the possibilities that Côte d’Ivoire offers an economic player to open out into these regional markets.

What can the Chamber of Commerce offer to new investors and companies setting up in Côte d’Ivoire?

The Chamber of Commerce has four missions. Our main mission is to be an intermediate between the public powers and the economic players. The second mission is to be a supporting service to companies. Our role is to help every company that wishes to set up in Côte d’Ivoire, particularly with their first steps in our country. We want to reassure these companies as they begin their business here and to support them with any particular anxieties they may have as they take their business in the right direction. We support any company that comes to Côte d’Ivoire after having presented its business plan to the CIPC. This office is a very efficient administration office here in Côte d’Ivoire; in less than 24 hours, you can set up a company. Furthermore, the costs of setting up a company have been cut fourfold. Thus, the Chamber of Commerce is here to offer all of the necessary services for entrepreneurs.

We understand that the Chamber of Commerce would like to increase its interactions with other international Chambers of Commerce. In what way would you like to increase these relations?

The idea behind working with international Chambers of Commerce is to be able to strengthen our capacities and to improve the quality of the services we offer. Beyond that, we aim to create a Business School. The Chamber of Commerce is working towards providing quality human resources for companies; this is one of the main missions of the Chamber of Commerce. In the past, we were lacking in this regard and we have not been able to meet the demands of companies here. Today, we train staff to gain the Advanced Vocational Training Certificate and we want to develop this training further to include Masters Degrees for example. We have projects to create a business school and we are hoping to join with some partners who might be interested in this project. We would like this venture to go ahead in the coming years.

You are the mayor of Bouaké, the second largest city of Côte d’Ivoire. What are the strengths of this city?

Bouaké is a city with at least 1,500,000 inhabitants. The census has just been carried out and we are in a hurry to get the results in order to discover the real dimensions of our city. In 2002, the year when the military-political crisis began here, Bouaké was ranked the second city of the economy of the WEAMU. Bouaké was a city that was more advanced than capital cities like Dakar, and it was ahead of other capital cities in the WEAMU region. Today we have lost this position. There is strong potential in this city; there is lots to be done and lots to be rebuilt. Bouaké was the rebel stronghold for about ten years or so and so it suffered both economically and in an urban context. Now it is building itself up again.The urban infrastructure is being rebuilt. There is going to be large market built on a plot that measures 10 hectares; we are now in the final phase of finding finance for this project. It is a very interesting project and one that can provide many benefits to the population. It is a priority for the municipal authorities. Bouaké is an industrial bastion and it was the textile bastion of Côte d’Ivoire. Today it is also the centre for the development of cashews. Thus, as you can see there is lots of potential in Bouaké.

Côte d’Ivoire is the second producer and the leading exporter in the world of cashews; in fact, it has surpassed India in cashew exports. What would you like potential foreign investors to know about Bouaké? What opportunities are there in Bouaké?

One of the main advantages and opportunities for investors coming to set up in Bouaké is that in terms of real estate, the municipality supplies entrepreneurs and investors with all of the necessary requirements to set up their business problem free. We are currently installing an industrial zone in Bouaké that will be fully equipped and ready to be used by all investors that wish to set up here. The industrial district of Bouaké was conserved during the crisis, and Bouaké offers superior incentives and facilities compared to Abidjan.

To conclude, what is your vision for the future for Côte d’Ivoire in two or three years?

First of all, we need the economy to consolidate, especially after all of the progression that we have witnessed since 2011. On the other hand, I also believe that in parallel, in our politics, we need to see more effort made in improving the stabilisation of Côte d’Ivoire with the inclusion of all of the driving forces of the nation. Today there is still some reticence. I’m confident that President Ouattara will be able to get rid of that reticence and in two or three years, on an economic level, as the reforms continue and we see more development, we shall see a net improvement of the stabilisation of Côte d’Ivoire.

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