Importance of Transport and Logistics in the Economy of Ivory Coast

Interview with Stéphane Eholie, Chief Executive Officer of SIMAT (Société Ivoirienne de Manutention et de Transit)

Could you give us your evaluation of what has happened since the electoral crisis in the fifth month of 2011, and now, four years later? What has changed?

We must note that during the crisis we were collateral damage so to speak, since we weren’t able to work for some time. Thus we had to manage that period and the economic effects. We must also recognise that since April 2011 and the end of the crisis when President Ouattara came in; our activity has seen great progress, which is reflected in the macro economic performance results of the port and now the micro economic performance of companies like ours and of the multinationals and others. I think that this sector is developing very well and is a very dynamic sector. I believe there is a saying that when a port is doing well it is a sign that the economy is doing well, much like when the property market is doing well.

Right now the analysis is clear when we look back at the results, I think that during two years of providence we have picked up in terms of investments, etc., and that now private and public companies are investing more and more and there has been the creation of more companies and more jobs. There are some large investments that are currently being undertaken and which benefit everyone. We, as a transport provider, necessary for these businesses to run, inevitably benefit, for example from the import activities and exports.

I can say that the horizons have cleared and we hope that this is going to continue. In the next 5 years I believe we will really be able to compete and come up trumps by continuing to invest and hire more staff to be able to make our company even more durable.

In the past you had to address the initial urgencies but the country has now grown and recuperated. Now we are in a phase of growth so what are the challenges to be faced now?

As I have said previously, I shall always remain within the economic field because I think that when the economy is doing well we can develop much better. With a good economy we can feed ourselves, clothe ourselves, heal ourselves, educate ourselves, etc. For me, the most important challenge is to make this growth permanent and durable. I want to reach double digit growth to really be able to reduce poverty here so that the Ivorian people can have a better income and a better future. When I look at the challenges from an economic point of view, I think that we have to create employment; I want all Ivorians to finish school and find jobs. That is the main challenge for me: reducing unemployment for our young people so that they can enjoy a more secure future and see their future in a more positive light.

All of the policies that are supposed to support companies that create jobs, particularly in terms of local processing of Ivorian products, could attract investors.

Exactly. The creation of companies means the creation of employment. Processing brings with it a certain added value and a certain technicality. I think that anything that helps to increase jobs and reduce youth unemployment is of great benefit and is welcome. I think that Africa is looking for this. If we want to become an emerging country, as I have said before, we need local, dynamic SMEs and once they are earning they will reinvest in our economy.

Additionally, economic growth and the creation of jobs means that the formal sector increases and when you have a more organised formal economy that plays a major role in the real economy, everybody wins. Thus entrepreneurs and employees benefit and even the state benefits as it receives the taxes paid by the formal sector which help support the growth of our country. I believe we have to continue in this direction and support, perhaps with tax or other incentives, those who help the young people here to get a job and help these companies to maintain all of these jobs.

In the transport and logistics sector, what changes are still to be made? What changes could the government implement to help this sector?

The field of logistics is now industrial. There are two important areas to improve: one being the state of the roads. It is clear that roads precede development so we must improve the state of the roads and perhaps build new roads. I think this is happening; but we need even more focus on this area. Another factor that needs to be improved is the customs regulations regarding new equipment that is more productive and secure. In my opinion these are the two main things that need to be addressed so that the transport and logistics sector can be more dynamic and for it to represent a larger percentage of the national GDP.

Do you have any short to medium term projects you would like to tell us about?

For me, my medium term project is to become a national champion in our sector. To do this, we are trying to create logistical bases in Abidjan and San Pedro. We are currently working on this, and we hope that by the end of the year or at the beginning of 2016, both sites will be completed. After that we also want to create a SIMAT site in 2016 in Bouaké. This would include a storehouse and other facilities. Additionally on the horizon in the next 2 or 3 years is the possibility of creating a SIMAT network in African countries such as Burkina and Mali and also on the West African coast. We want it to be known that Ivory Coast is a leader in the WEAMU region. For companies like ours, if we want to last and grow our market share, we must participate internationally. We have to integrate and expand into other countries step by step, either acquiring companies or creating companies where possible. The important thing is to consolidate ourselves on the Ivorian market, which is not in itself that easy and then with economic growth in our niche market we can then expand internationally. Over the next two or three years we aim to expand internationally, within Africa.

The field of logistics is now industrial. There are two important areas to improve: one being the state of the roads, and the other one being the customs regulations regarding new equipment that is more productive and secure. In my opinion these are the two main things that need to be addressed so that the transport and logistics sector can be more dynamic and for it to represent a larger percentage of the national GDP.

Ivory Coast won the Africa Cup of Nations this year and on an economic level there are new developments such as the return of the African Development Bank and there are plans to re-establish certain institutions particularly within the cocoa sector here in Abidjan. Is Ivory Coast trying to change its international image?

As an Ivorian, I perhaps am not all that objective, but I would say that as I travel a lot I can take a step back and I am able to critique what is going on. I was in Istanbul not long ago and the President was saying that in terms of security, Abidjan is on the same level as Geneva, which proves that insecurity here has reduced incredibly and is under control. I have also just come back on an Airbus 380 from Paris which was fully booked with 500 passengers, which proves that there is a good return flow of people coming and going to Ivory Coast, not to mention that the business class area was totally full.

I think that the crisis is behind us. I don´t think that it will happen again. I think that economic growth is doing well according to the strong financial indicators. There are more and more conferences and seminars being held in Ivory Coast and this proves that we have returned to the list of African countries worth being involved in and the list of countries that one can invest in without worrying. For me, I would say that Ivory Coast is back! It is a country worth visiting and worth investing in. Tourism also has great potential; there is a lot to offer. Something that I would say is fundamental and is quite extraordinary about this country is the quality of life in Abidjan and other cities, but above all the Ivorian mentality. People here are welcoming and very open. They like to share and live a communal life. Ivory Coast will and must be reconciled. We may suffer due to globalisation but what I say now to economic operators and foreign investors coming here is that they must try to set up joint ventures with Ivorians. They will see that there are lots of opportunities in Ivory Coast.