Finance - Ivory Coast News

What went wrong with Daniel Kablan’s Project?

In January 2016, Daniel Kablan, who was the Prime Minister of the Ivory Coast at that told the ivorian population and the World Bank that his “development objective of the Côte d’Ivoire is to transform into “an emerging country by 2020”. Four years after, the country is in a worse situation. So the question is what went wrong?
Mr. Kablan never told his fellow citizens why he did not achieve the promised goal. Instead, the government which was very loud about that vision has become mute. All what is now talked about is how many bridges President Ouattara built.

In 2016, Daniel Kablan’s government said in a presentation meant for the World Bank:

“The development objective of the Côte d’Ivoire is to transform into “an emerging country by 2020”. In order to achieve this, we’ll be relying on a vision of capitalism with a human face, and a coherent strategy for planning development.

To this end, the Côte d’Ivoire is implementing structural and sectoral reforms that have resulted in an average annual economic growth of more than 9% over the past four years. It is therefore in the top five of the most dynamic economies in the world and aims to consolidate its achievements.

These reforms resulted in the stabilization of the macroeconomic framework, with a budget deficit of 2.2% of GDP in 2013 and 2014, below the standard 3% of the Economic Community Of West African States (ECOWAS), a sustainable debt (less than 37%) and a rate of inflation contained at 0.4% in 2014, and that it is expected to reach about 1.7% in 2015. They have also produced some results that deserve to be highlighted, including: a ranking in the Top 10 countries reforming the business climate by the 2014 and 2015 Doing Business Reports of the World Bank Group; a ranking as the 8th most competitive African economy according to the World Economic Forum’s Global Competitiveness Report 2015; acceptance to the “Open Government Partnership (OGP)” international initiative in October 2015; B+ rating by the Fitch Ratings agency and from B1 to Ba3 with a stable outlook by the Moody’s agency; obtaining Threshold in 2014 in the framework of the Millennium Challenge Corporation (MCC) and eligibility in December 2015 of the Côte d’Ivoire to the MCC Compact.

The next four years

During the 2016-2020 period, the government intends to continue structural reforms in order to create the right conditions for strengthening the contribution of the international and domestic private sector in the economy, including in the form of a public-private partnership. This will involve creating new opportunities for diversification based on its comparative advantages and the sustainable integration into regional and global value chains.

A greater impetus will be given to the processing of agricultural products (including cocoa, cashew, and cotton) through the stimulation of industrial production. The industrialization of the country will be supported by private investment, whose share in the overall investment is increasing and should rise from 65% in 2015 to 70% in 2020.

Support measures tailored to Small and Medium-sized Enterprises (SMEs) will be strengthened to enhance their contribution to GDP and to boost the creation of jobs for young people. Innovation and skill development will contribute significantly to this process by making the most of the demographic dividend.

Looking ahead to new sectors of growth

Furthermore, the Côte d’Ivoire will pay particular attention to the birth of new sectors of growth, such as renewable energies, information and communication technologies and the mass retail sector that attracts large international groups.

The continuous improvement of the business environment to make our economy one of the most attractive in Africa, or even worldwide, the enhanced attention to quality standards, the strengthening of competition and the realization of the economic potential of the land capital are areas in which we will be investing relentlessly.

It is therefore pleasing to observe that the conditions essential to the prosperity of our economy and to the wellbeing of our people are growing stronger by the day. The country has re-established political stability and the climate of peace that characterised its past reputation, following the peaceful elections of October 2015.

The Côte d’Ivoire remains very committed to the process of regional integration in order to build a common market, uniting the 15 ECOWAS countries of more than 300 million consumers. It pays particular attention to consolidating peace and security in the sub-region, while ensuring a strong involvement in common efforts to achieve the objectives of sustainable development.

We have faith in the future of our country, in the capacity of the Ivorian people to achieve the economic transformation of the Côte d’Ivoire, in the construction of a modern nation with strong institutions, for its emergence by 2020.

Author: Daniel Kablan Duncan, Prime Minister of Côte d’Ivoire. He is participating in the World Economic Forum’s Annual Meeting in Davos.” (World Economic Forum)

Ivory Coast: Africa’s Most Dynamic Economy (Documentary)

Business, Economy, Finance, Politics

(Arte, 9 août 2023) Delighted to be with you for this new episode of “Dessous des Cartes”. We start this show in Abidjan, the economic capital of Côte d’Ivoire. Abidjan, nicknamed “Baby”, is a booming, bustling, polluted, and chaotic city. A colossal metro project is underway after countless delays. Abidjan also has one of the most important ports on the continent and an airport that handled 2 million passengers in 2021. The Plateau district, known as the African Manhattan, the beaches, and the beautiful houses of Cocody. Côte d’Ivoire, or the land of elephants, the animal and its emblem, would, according to the Prosperity Index, be the country that increased its prosperity the most in the world between 2011 and 2021. According to another ranking, it is the happiest country in West Africa. Of course, without underestimating the structural problems that Ivorians are far from having all overcome—centralism and political clientelism, inequality, regional insecurity—we wanted to visit this Africa of possibilities. Let’s get out our maps, and here is Côte d’Ivoire, this West African country located on the western part of the Gulf of Guinea, bordered on the south by the Atlantic Ocean. Côte d’Ivoire is surrounded by three Francophone countries: Guinea, Mali, and Burkina Faso, and on its flanks, two Anglophone countries: Liberia and Ghana. Covering an area of 322,500 km², the Ivorian territory resembles a quadrilateral split in two, with plateaus in the north and plains in the south, with a more mountainous terrain in the west.

### Climate and Geography
In terms of climate, Côte d’Ivoire is also divided into two. In the south, below the capital Yamoussoukro, the climate is equatorial and very humid, whereas the north has a dry tropical climate with generally higher temperatures. Consequently, the south is the territory of the forest, even though its surface area has significantly decreased. The primary forest has almost disappeared outside of national parks like Taï or Banco in the heart of Abidjan. The north, meanwhile, hosts a savannah landscape with vast expanses of grasslands and scattered trees. In this northern half of the country, you mainly find cereal fields such as millet, sorghum, and cotton. Over the past 20 years, cashew orchards have developed, making Côte d’Ivoire the world’s largest producer today. In the southern half, two major export crops dominate: coffee and, especially, cocoa. Côte d’Ivoire is the world’s largest producer of cocoa beans, accounting for 45% of global production. This raw material alone accounts for 15% of the national GDP. In addition to these large-scale intensive crops, there are other crops such as bananas, pineapples, and palm oil. Côte d’Ivoire also benefits from a rich subsoil with gold mines, iron mines, some bauxite, diamonds, manganese, nickel, and since the 1980s, oil. Although the share of petroleum products in Ivorian exports has remained modest, the company ENI discovered a deep-water deposit in 2021 estimated at 2 billion barrels, equivalent to about a quarter of Angola’s oil reserves.

### Human Geography and Demographics
Côte d’Ivoire is also a country with a complex human geography. The official language of its 22 million inhabitants is French, but there are over 63 ethnic groups spread across four regional linguistic groups: the Akan, the Gour, the Mandé, and the Kru. The Republic of Côte d’Ivoire is also a multi-religious country, with 42% Muslims, 34% Christians, and a significant proportion of animists. The structure of Ivorian society has evolved considerably since the 19th century. In 1902, Côte d’Ivoire was integrated into French West Africa, marking the beginning of development based on the exploitation of coffee, forests, cotton, and especially cocoa, an economy that relied on labor from the entire region. In 1960, Côte d’Ivoire became independent, but this immigration policy continued under President Félix Houphouët-Boigny, who had been a deputy and several times a minister of the French Republic, and who was himself a coffee and cocoa planter. In 1983, he even made his hometown of Yamoussoukro the new administrative capital of the country. Upon his death in 1993, he left behind a country weakened by years of personal power, the fall in commodity prices, and the structural adjustment plans of the IMF and the World Bank.

### Political History and Economic Development
In 1995, Henri Konan Bédié, supported by France, was elected but implemented a xenophobic doctrine called “Ivoirité” to exclude his opponents, feeding discontent in a country where foreigners and descendants of foreigners are numerous. As a result, Côte d’Ivoire gradually plunged into civil war. In 2002, a coup attempt against then-President Laurent Gbagbo divided the country in two: the rebellion supported by Burkina Faso controlled the north, and the presidential camp controlled the south. It wasn’t until March 2007 that President Laurent Gbagbo and former rebel leader Guillaume Soro signed an agreement leading to the country’s reunification and the organization of elections. In 2010, Alassane Ouattara won these elections, but Laurent Gbagbo refused to relinquish power. In 2011, after violent clashes and the intervention of French forces and UN peacekeepers, Gbagbo was arrested and charged by the International Criminal Court for crimes against humanity. However, in 2021, Laurent Gbagbo returned to Ivorian soil after his acquittal by the ICC.

Despite the civil war and persistent North-South inequalities and a precarious security context in the region, Côte d’Ivoire’s macroeconomic indicators have been favorable, with an average GDP growth of 8.2% between 2012 and 2019. After the civil war, Côte d’Ivoire returned to strong growth, even maintaining positive growth at 2% despite the COVID-19 pandemic, rising to 7% in 2021. These performances were made possible by a policy of major works throughout the country. Signs of these changes include the renovation of the University of Abidjan and the inauguration of a third bridge over the Ébrié Lagoon, the Henri Konan Bédié Bridge, in the economic capital in December 2014. In the north, the city of Bouaké, which was the rebels’ capital during the civil war, has been transformed with the reconstruction of economic infrastructure like its grand market and the redevelopment of its surroundings. The ports of San Pedro and Abidjan, essential to the country’s economy, have also undergone extension and modernization projects. The main downside is an inflation rate that reached an average of 5% in January 2023, mainly due to rising food prices. More importantly, Côte d’Ivoire remains marked by significant disparities geographically, always between the North and the South, with the economic capital of Côte d’Ivoire concentrating 80% of economic activity and 21.7% of the Ivorian population. Socio-economically, the country ranked 159th out of 191 in the 2021 Human Development Index defined by the United Nations Development Programme.

### Security Concerns and Foreign Influence
In this context, Côte d’Ivoire has not escaped the geographic expansion of the jihadist threat in the Sahel, particularly in southern Mali and southwestern Burkina Faso. In 2015, a cell linked to the Ansardine group operating on its northern border was dismantled following joint operations between Mali and Côte d’Ivoire. However, a year later, in March 2016, the resort town of Grand-Bassam in the south was hit by a commando from Mali, resulting in the deaths of 19 people. On the night of June 10-11, 2020, Ivorian security forces were directly attacked in Kafolo. The attackers were repelled, but Abidjan was shocked. Other attacks using improvised explosive devices were also carried out by jihadist groups in northern Côte d’Ivoire between 2020 and 2021. In response, authorities have increased investments in the north of the country, particularly in the Comoé National Park. Militarily, France remains a key military partner of Côte d’Ivoire in 2023, with 900 soldiers stationed at Port-Bouët camp in the suburbs of Abidjan. However, instability in neighboring Burkina Faso undermines essential security cooperation in the north of the country. In 2020, the Ivorian and Burkinabe armies conducted joint Operation Comoé to dismantle terrorist bases attempting to establish themselves in the border area between the two states. But in early 2023, the Burkinabe army demanded the departure of the 400 French soldiers based in Ouagadougou as part of its search for new partners. Its security priority remains the north and east of the country, where the terrorist threat is concentrated. In Mali, the arrest in July 2022 of 49 Ivorian soldiers of the UN mission in Mali at Bamako airport by Malian authorities confirmed the persistence of degraded relations. These Ivorian soldiers, labeled as mercenaries, were sentenced before being pardoned in January 2023.

This concludes our journey in Côte d’Ivoire, the Africa of possibilities despite persistent problems—centralism and political clientelism, North-South division, significant inequalities, and a challenging security context. Côte d’Ivoire is courted by various influences, notably Russian. For example, cartoons identified as coming from the Prigozhin universe, the head of the Wagner militia, depicted triumphant African armies against the French invader thanks to Wagner soldiers. Countries cited in the cartoon include Mali, Burkina Faso, and Côte d’Ivoire. To go further, check out “.

NB: IvoryCoast.ci does not necessarily share the view of Arte. They were published to show another perspective of the country. The discussion is open and you are invited to share your opinion with our readers

Tidjane Thiam: The Rise and Fall of a Banking Visionary

Business, Economy, Finance

Tidjane Thiam’s resignation from Credit Suisse after leading the bank to record results has sparked widespread interest and debate. His atypical background and controversial tenure have made him a prominent figure in the financial world. Let’s delve into the intriguing story of Tidjane Thiam and the events that led to his departure from Credit Suisse.

The Record Results and Scandalous Departure

After Tidjane Thiam’s five-year tenure, Credit Suisse achieved record results under his leadership. However, amidst this success, Thiam’s resignation was marred by a high-profile espionage scandal, creating a dramatic backdrop for his departure. This juxtaposition of achievement and controversy has ignited intense speculation and analysis.

The Restructuring and Turbulent Start

Thiam led Credit Suisse through a significant restructuring in 2018, marking a pivotal moment in the bank’s trajectory. The turbulence of his early months in office, evidenced by the halving of the bank’s shares, posed formidable challenges that Thiam navigated with strategic acumen and resilience.

Thiam’s Atypical Profile and Prestigious Education

Tidjane Thiam’s background as the son of a Senegalese minister and nephew of the Ivorian president, combined with his education at prestigious institutions such as the School of Mines and INSEE, shaped his unique perspective and approach to leadership. His unconventional journey to the pinnacle of the banking world is a captivating narrative of determination and distinction.

A Career Marked by Success and Controversy

From serving as minister of planning and development in the Ivory Coast to achieving prominence in the insurance and banking sectors, Thiam’s career has been defined by notable successes and contentious moments. His ascent to the helm of Credit Suisse was preceded by a series of strategic career moves, further enriching the tapestry of his professional trajectory.

Banker of the Year and Espionage Controversy

While Tidjane Thiam was acknowledged as banker of the year, his tenure at Credit Suisse was marred by the shadow of an espionage scandal. The dramatic unfolding of events, including internal upheaval and investigative clearance, added layers of complexity to Thiam’s legacy, fueling widespread interest and speculation.

Speculation and Political Ambitions

The aftermath of Thiam’s resignation has sparked discussions about his possible return to politics and speculation regarding his candidacy in the upcoming presidential election in Ivory Coast. With hints of support groups forming and the enigmatic veil shrouding his plans, Thiam’s potential political trajectory is a subject of intense intrigue and anticipation.

Conclusion:

Tidjane Thiam’s journey at Credit Suisse embodies a confluence of triumphs, controversies, and enigma. His departure amid record results and a high-profile scandal has etched his name in the annals of banking history. The multifaceted nature of his legacy continues to captivate the financial world, leaving a lasting imprint on the industry.

We also recommend: Tidjane Thiam: A Career of Triumphs and Scandals

Ivory Coast Plans To Fight Corruption

Business, Economy, Finance, Politics

In Abidjan, the economic capital city of the Ivory Coast, the Minister of Good Governance Promotion and the Fight against Corruption, Zoro Epiphane Ballo, held discussions with technical and financial partners (TFPs) on Thursday, June 15, 2023, to seek their support in the fight against corruption. This took place on the sidelines of the 5th edition of the International Anti-Corruption Alliance (ICHA) Forum, organized by the World Bank in partnership with the State of Ivory Coast.

The objective of these exchanges was to present the achievements of Ivory Coast in the fight against corruption to the partners. They also aimed to explore possibilities, including the establishment of the Academy of Good Governance and Anti-Corruption, to raise awareness among actors in the public and private sectors as well as civil society.

The Minister emphasized that the Ivorian government has implemented several reforms to strengthen mechanisms for preventing, detecting, and prosecuting acts of corruption, including the SPACIA platform for reporting acts of corruption and related offenses. He urged everyone to support this government platform to become firmly established.

According to Epiphane Zoro, this instrument established by the State of Ivory Coast complements other anti-corruption measures, aiming to make our country a reference in the fight against corruption.

Professor Charles Moumouni, an expert and consultant in the fight against corruption, presented the establishment of the Ivorian Academy of Good Governance, which has both institutional and pragmatic objectives.

The institutional objective will serve to create synergy among stakeholders in good governance and the fight against corruption, making this sustainable structure a reference for best practices in this field.

Furthermore, it will implement a three-part training program, including providing high-quality training to strengthen the capacity of 1,500 stakeholders by 2026, granting a governance proficiency certificate to approximately 700 individuals within the same timeframe, and establishing an executive master’s program in governance and anti-corruption leadership for 300 individuals by 2026.

Also: VEOLIA Granted New Agreement In IVORY COAST

The Rise and fall of the Ivorian Economy by Thomas Sowell

Economy, Finance

Ivory Coast: A Nation Shaped by Colonial History and Independent Progress

The Ivory Coast, like many other African nations, is a product of European colonialism. Its borders divide numerous ethnic groups, with many members of these groups living in neighboring countries. This external fragmentation is mirrored internally, with the country home to 60 ethnic groups, none of which constitutes more than 15% of the population. Additionally, over a quarter of the population originates from outside the Ivory Coast, primarily from other West African nations. While there are many indigenous languages corresponding to the various ethnic groups, French remains the official language. This is a legacy of colonialism, as French is used in education, politics, and urban economy.

Commercial contacts with the region preceded colonial rule by centuries, with trade in gold, pepper, slaves, and ivory giving the region its name. The decimation of the elephant population ended the ivory trade in the early 18th century. French contact with the Ivory Coast dates back to the 15th century, with settlements appearing in the 17th century. These early interactions were vastly different from the colonial rule imposed by the French in the late 19th century.

French colonial rule brought both progress and oppression. Schools were built, the economy modernized, and fatal epidemic diseases were banished by medical science. However, the people were subjected to forced labor and taxation that forced them to work for whites, often to the detriment of their own crops. Thousands died from the rigors of this forced labor. French officials, under pressure to ensure the colonies did not burden France’s treasury, resorted to whippings, hostages, and executions to extract taxes. They also introduced cocoa as a cash crop, altering the indigenous agricultural system.

The Ivory Coast was part of French West Africa, a vast colonial empire that also included Algeria, Indochina, Martinique, and French Guiana. The French conquest of the Ivory Coast began in the late 19th century. By 1920, French West Africa had a population of 12 million, despite being nine times the size of France. Much of the Ivory Coast consisted of largely uninhabited forests, with considerable unused land even in the late 20th century.

Geographically, the Ivory Coast faced significant challenges, including a lack of sheltered harbors and navigable rivers. Seasonal rainfall variations complicated river travel, but modern railroads and canals have since improved travel and shipping conditions. Before European arrival, the people lived in small tribal groups, with their main external contact through long-distance traders. Islamic traders spread the Muslim religion into the northern regions, leaving an enduring legacy.

In the late 20th century, Islam accounted for one-fourth of the population, making Muslims twice as numerous as Christians. The country’s first president, Félix Houphouët-Boigny, was a significant figure in this history. Known for his belief in dialogue to resolve conflict, he emphasized peace, security, and individual liberty as essential for economic progress. Under his leadership, the Ivory Coast diverged from the typical post-independence trajectory of other African nations.

Houphouët-Boigny, a physician and wealthy planter, entered politics in 1944. He spent 12 years in France, representing the Ivory Coast in Parliament and becoming the first African to hold a cabinet position in a European government. His cultural assimilation muted anti-colonialism and co-opted potential indigenous leaders. After World War II, Houphouët-Boigny gained popularity for ending forced labor and introducing new civil and political rights. In 1960, the Ivory Coast became an independent republic with him as its first president.

The Ivory Coast’s post-independence policies avoided the pitfalls of other African nations. It resisted building unprofitable showcase industries, imposed few restrictions on foreign capital, and did not drive out foreigners. By the 1980s, the country had more French nationals than at independence, many in important roles in government and the economy. This pragmatic approach, including utilizing technical experts and improved seeds from other countries, led to significant economic growth.

By the 1980s, the Ivory Coast had one of the highest growth rates in the world, despite its poor natural resource base. Real per capita income grew significantly, and the country remained self-sufficient in food production. However, political pressures in the late 1970s led to economic challenges. Government investment shifted towards state-owned enterprises, financed by favorable export prices and international borrowing. When commodity prices fell and global recession hit, the Ivory Coast’s economic stability faltered.

Despite these setbacks, the Ivory Coast’s earlier successes demonstrated the impact of its pragmatic policies. The country’s economic growth outpaced many others in Africa, and its policies ensured a more balanced budget and fewer balance of payments problems. However, the long period of one-party rule eventually led to corruption and economic issues. After Houphouët-Boigny’s death in 1993, the country experienced political turmoil but continued to privatize and improve its economy.

Under President Henri Konan Bédié, the Ivory Coast saw economic recovery, with GDP growth resuming in the mid-1990s. Despite political repression and opposition crackdowns, the country’s pragmatic approach to economic policy continued to yield results. The Ivory Coast’s history is a testament to the complex legacy of colonialism and the impact of pragmatic leadership in post-independence Africa.