Country risk reference rating: 7 (7/9)
Country Risk Outlook: Stable
Economic and trade risks
In 2012, Côte d’Ivoire’s nominal GDP was US$24.69 billion, per capita GDP was US$1,200, and the real economic growth rate was 9.5%. Agriculture accounts for 27.2% of GDP, industry accounts for 21.2%, and the service industry accounts for 51.6%. The main industrial industries are agricultural product processing industry, cotton textile industry and oil refining industry.
Since President Ouattara of Côte d’Ivoire came to power, his status has been continuously consolidated and the domestic political situation has tended to be stable. However, the unstable situation in neighboring countries has also brought hidden dangers to the security situation in Côte d’Ivoire. After the new government came to power, the economy recovered rapidly, and the current account and balance of payments conditions are expected to improve. After the end of the civil war, Côte d’Ivoire launched a series of development measures. Inflation levels were brought under control, the burden of foreign debt was reduced, and the economy is expected to recover quickly. However, in some areas, the government intends to tighten investment policies, posing certain challenges to foreign investors.
Business environment
The business environment in Côte d’Ivoire is poor. Enterprise public property information is difficult to obtain, power infrastructure is insufficient, and contract execution efficiency is low. However, Côte d’Ivoire’s labor force is of high quality and its urbanization level is one of the highest in West Africa. Côte d’Ivoire is one of the most developed countries in transportation in Africa, especially shipping. More than 98% of Côte d’Ivoire’s import and export trade is transported by sea. The Port of Abidjan is the largest natural port in West Africa and the largest container port in black Africa. It is also the main port of landlocked countries in West Africa. Sea outlet and distribution center for import and export goods. The main railway is the main railway line from Abidjan to Niger, with a total length of 630 kilometers in Côte d’Ivoire. The road system is relatively developed and it is the country with the most developed roads in West Africa. There are 28 large and small airports in the country, and Abidjan Airport is the largest airport in French-speaking African countries.
Bilateral economy and trade
Since China and Côte d’Ivoire established diplomatic relations in 1983, relations between the two countries have developed smoothly. Bilateral trade volume is also rising. In 2012, the bilateral trade volume between China and Côte d’Ivoire was US$940 million, a year-on-year increase of 35.7%. China mainly exports mechanical and electrical products, textiles, etc., and imports mainly cocoa and other agricultural products, manganese ore, and cotton. Currently, many large Chinese companies such as China Geological Engineering Corporation and China Gezhouba Group Corporation are operating in Côte d’Ivoire. The main problem in bilateral economic and trade cooperation between China and Kuwait is trade imbalance. China has a large trade surplus, which reached US$660 million in 2012, the highest in recent years.
Legal risks
The legal environment in Côte d’Ivoire is not ideal, with cumbersome and complicated procedures and poor execution capabilities being its main shortcomings. At the same time, the independence of the judiciary is poor, and the president and senior government officials have great influence on the formulation and implementation of laws.
Since President Ouattara came to power, he has attached great importance to the construction of the legal system, especially the economic and legal system, to attract more foreign investment. Currently, Côte d’Ivoire has established a specialized commercial court and an investment promotion center to provide integrated services. In addition, the Cote d’Ivoire government has also begun to focus on business legislation. It plans to amend the investment law and value-added tax law in the near future, and introduce new electricity laws, competition laws, etc. to provide greater convenience to investors. However, in the fields of mining and oil investment, the Ivorian government intends to raise the bar. Although the investment environment has been relatively stable since President Ouattara came to power, many laws and regulations are still relatively flexible, and the phenomenon of different interpretations of laws by various government departments is still relatively common in Côte d’Ivoire. (Issuing agency: China Export and Credit Insurance Corporation)
