Côte d'Ivoire

1

One Of the west african regiOn’s most important economies is well suited tO fOrm

greater symbiOtic relatiOnships with One Of the wOrld’s strOngest lenders

the china shift: from loans to business

4

PROJECT TEAM: florencia arenaza, marketing; edouard malgras, Journalist; and santiago fernández Ordieres, publisher

Côte d’Ivoire

Over the past decade, China has been steadily building a more visible presence throughout Africa, and Côte d’Ivoire is no exception to this trend. Last year, the Asian country pledged $10 billion in low-rate loans over the next six years to fund infrastructure development in the country, which was left in a critical state after Côte d’Ivoire’s decade-long political crisis.

This is in line with the African country’s national de-velopment strategy, which calls for $20 billion in investment over the next five years to achieve emergent status by 2020. The funds from China’s Exim Bank will be used to finance port expansions, railways and roadways.

As the world’s top exporter of cocoa and cashew nuts, a net exporter of oil, and with a significant manufacturing sec-tor, Côte d’Ivoire is the largest economy in the West African Economic and Monetary Union and the second largest in the entire West African region after Nigeria. Emerging from a post-election crisis in 2010 and 2011, it surged ahead in 2012,

registering one of the highest growth rates in the world at 9.4 percent. Last year, it grew by another 8.2 percent.

Prime Minister Daniel Kablan Duncan, who is also economy minister, says the country’s recent growth has been driven by consumption (which saw a double-digit increase in 2012), exports and investment. Boosting the latter, and by extension, putting the infrastructure in place to do so, is now priority. “In 2012, 62 percent of investment was taken by the private sector, and our goal is to ensure that by 2015, the share has increased to 70 percent,” says the Prime Minister.

Deputy Economy Minister Nialé Kaba adds that in-frastructure development, along with recent reforms to the investment code, are the enablers that are allowing Côte d’Ivoire to post the highest growth rates in its history. China’s loan provides the next step. “We are a developing economy that needs financing and China is now a major provider,” he comments.

In Côte d’Ivoire today it is hard to say if infrastructure is driving growth, or vice versa. While the government is investing heavily in transport infrastructure to accompany its bid to attract higher foreign direct investment (FDI) levels, Minister of Transport Gaoussou Toure says that demand, current and future, is behind modernization projects like Abidjan’s port expansion.

“If we are building a second container terminal in Abidjan today, it’s due to development. Our needs are increasing because of our growth and once the work is done, it will enable us to accommodate a much higher number of ships,” comments Toure. He adds that containerization is not only the leading mode of cargo transport today, but that it is one that is expected to grow even further in the future. “Therefore, it is important that we don’t limit ourselves only to what we have today.”

Abidjan, the country’s main port, is building a second container terminal, deepening the docks and widening the canal to accommodate ships of 25,000 to 50,000 tons. In San Pedro, the world’s largest cocoa port, 150

côte d’ivoire The China shifT

China is also behind a number of large-scale projects in the coun-try, including the construction of roads, bridges and a hydro-electric dam in Soubré, says Emmanuel Essis, CEO of the investment and promotion agency CEPICI. “China has an aggressive trade policy in Africa. Chinese companies need to expand abroad, and apart from the country’s consumption needs, it also requires raw materials, which it finds in Africa,” Essis points out. But, he adds, “There is much to be done to make this cooperation smoother so that we can work together in a win-win situation.”

France’s Emerging Capital Partners, an investment fund dedicated to Africa, has more than $50 million invested in Côte d’Ivoire. Co-CEO Vincent le Guennou says that he sees China’s arrival in the country “in a very positive way.” In addition to natural resources, Chinese companies have shown interest in a range of sectors, including construction, finan-cial services, energy, infrastructure and oil. “Generally speaking they are interested in all sectors, and Côte d’Ivoire has a lot of opportunities to offer,” says Guennou.

roundabout growth frOm sea pOrts and air

pOrts tO rOads and

railways, côte d’ivOire

is pursuing myriad

ways to improve and

expand its transport

infrastructure and

private sectOr investment

is warmly welcOmed

Abidjan Port is undergoing major expansion works

efforts to improve safety and services in the air transport

sector have contributed to a

doubling of air traffic over the last

four years

Prime Minister Daniel Kablan Duncan

4

2


Originally, the port of San Pedro is one of the main economic infrastructures built to reduce regional disparities by creating a development pole in the Southwest of Ivory Coast, and serves as a transit port for the adjacent regions without a coastline (Mali, forested Guinea, eastern Liberia) And as a mission, the Autonomous Harbour of San Pedro (PASP) is responsible for all port functions including operating activities, services to ships, maintenance opera-tions, renewal and extension of port infrastructure operations. However, most opera-ting activities and pilotage and towing functions are carried out by the private sector. In terms of the actual running of the port, smooth operations have been recorded in recent years. Indeed, freight traffic which was around a million tons from the creation of the port until 2010, has reached a record of 3 230 398 tons, nearly double the one reached a year earlier. Around 4 000 000 tons of goods are expected by the end 2013. These peak performance records are the result of our efforts and our managerial policy based on strategic management and a participatory approach. Moreover, the Autonomous Harbour of San Pedro is now geared towards the fu-ture. In 2012, the blueprint for the Autonomous Harbour of San Pedro up to the year 2035, in accordance with national strategic documents including the National Development Plan (NDP) 2012-2015 for Ivory Coast, was developed. This master plan establishes the broad options for short, medium and long-term development of the Port of San Pedro with integrated projects, especially the new container terminal, the servicing of 150 hectares of the port area, the ore dock, the big ore terminal, the logistics platform (dry port) in Odienné, the logistics and oil platform, the oil terminal and the semi-industrial fishing port. These projects aiming to “make the port of San Pedro a geo-strategic development pole for Ivory Coast and a tool for regional integration with terminals operated by a public-private partnership”, have benefited from the credit of funders during the work of the Advisory Group put in place by the Ivorian government to mobilize the necessary resources for the implementation of public investment projects under NDP funding 2012-2015 And this year already, the implementation of this blueprint began through the execu-tion of the three-year Corporate Plan 2013-2015 which encompasses four main aims: (i) strengthening existing infrastructure (ii) optimizing operations (iii) setting the groundwork for the master plan (iv) consolidating the organization of the Port of San Pedro and initiating cooperation with the actors of the port environment ( Cities/Regional/Port relationship) As you can observe, the emergence of both the port and the region begins with readability and optimism; the fu-ture is ours and we invite you to believe in it with us. The Port of San Pedro is more than ever the Ivory Coast which is exported.

Hilaire M. LAMIZANA Managing Director

Headquarters: San Pedro , P.O.Box 339 & 340 Tel: + 225 34 71 72 00 . Fax: +225 34 71 72 15 . E-mail: [email protected] Abidjan Branch : Old Monoprix Building opposite the Railway Station South Plateau , 1rst Floor, Commerce Street side Tel: +225 20 30 29 29 . Fax: +225 20 30 29 30

TOWARDS EMERGENCE

hectares in the port area are being developed and construction has begun on an ore dock, oil logistics platform, and new container terminal. The port will soon be receiving 50,000 tons per day of iron ore from the two large mines nearby at Mount Gao and Mount Klahoyo.

San Pedro’s expansion is aimed at converting it into “a geo-strategic pole of development in Côte d’Ivoire and driving force for regional inte-gration, a main and indispensable player in the development of the region and the hinterland industries,” says Hilaire Lamizana, the port’s CEO.

Improvements in the country’s air transport sector have included

not only airport upgrades but also a concentrated effort to improve safety and security, says head of the nation’s civil aviation authority, Silué Sinaly. “To become a hub, we must pursue the policy of opening up the country, driven by the government, improve airport services, create the conditions for healthy competition which allows cutting costs, and give Ivorians the opportunity to travel by air,” he adds. The results have been a doubling of the country’s air traffic over the last four years, with the arrival of new airlines and a spike in flight frequencies.

Bigger ports and higher volumes of cargo have led to the need for investment in road and railway infrastructure. The highway from Abi-djan to Yamoussoukro is now complete, and the country is extending that to the border with Burkina Faso, which will then continue roadway construction onto Ouagadougou. A $2 billion railroad line between the towns of Man and San Pedro that will be used to carry iron ore is also under construction.

Much of this is to be financed by loans from China’s Exim Bank. China’s Sinohydro Corp. began construction on a 275-megawatt hydro-electric power plant in Soubré last year financed by a $500 million loan from the bank, and the country has also been involved in the construc-tion of hospitals, bridges and expressways, including a 35-km, six-lane highway linking Abidjan to Grand Bassam in the south.

Minister Toure says that private sector investment will drive new projects on the drawing board including the development of a 3,700-hectare “aerocité” near Abidjan airport where multinationals can set up business, as well as multimodal urban transport plans for the capital, including train and lagoon transport. PPPs are out, BOTs are in. “Whether it is for railroad, airport or port infrastructure, the choice we have made is to really rely on the private sector to achieve this, and this is what we are doing today,” Toure explains.

roundabout growth

3

Telecoms is being taken very seriously in Côte d’Ivoire these days. The fact that the government has three sector agencies and introduced a new telecoms law is proof positive of its belief in the importance of telecommunications infrastructure in development. This, along with a firm strategy to provide Internet coverage throughout the entire territory, forms the backbone of a comprehensive policy aimed at not only providing business readiness, but also at stimulating economic growth in a country that relies heavily on agriculture, and hence, has a rural economic base thinly spread throughout its territory.

Minister of Post and ICT Bruno Nabagné Koné says designing a country-specific sector plan revolving around the use of mobile telephony is key on the continent in general. “We encourage the creation of contents adapted to the needs of our countries because that is what we believe will develop the Internet in Africa. A farmer who goes on the Internet can see

the ivOrian ministry Of pOst and ict

encOurages the creation of contents

specific tO africa’s needs

The government is working to ensure complete Internet coverage

the growth app

CDMA, 3G, optical fiber and satellites will provide greater connectivity

4


things that affect his field and his life, like cultivation techniques and com-modity prices. He must learn to read and write in order to communicate with his son who is on the other side of the world. He can call the nurse and the midwife, who may be miles away, without having to brave the degraded state of roads. Our ambition is to work on applications in all sectors and highlight the needs of the population that we can cover from the mobile phone,” says Nabagné.

In addition to Nabagné’s ministry, Côte d’Ivoire’s telecoms sector now benefits from the support of the recently created National Agency of Universal Telecommunications Services (ANSUT) and ARTCI, the regulatory body. A telecoms law was introduced in 2012, as well as laws to govern electronic data, personal data protection, and cybercrime. Bilé Diéméléou, ARTCI’s CEO, comments, “We are on the watch for cyber crime; we have teams working day and night, observing the network and

securing it. CI-CERT carries out studies, watches networks and often pursues cyber criminals.”

Internet coverage throughout the country will be provided through four av-enues: optical fiber in urban areas, 3G for smartphone holders, CDMA in villages and remote areas, and satellite connectivity for the most remote areas. “Our current major project is to cover the entire territory in 7,000kms of optical fibre. It is a project that started with China,” says Euloge Soro-Kipeya, CEO of ANSUT.

A stretch of 1,400kms of the optic fiber was laid by Huawei, while a second phase is now being constructed by another Chinese firm, CITCC, a subsidiary of China Telecom. Huawei is also providing the cost-effective, cable-less CDMA technology, installing 80 antennas to cover 1,000 localities.

“The funds that the Chinese grant are already a major asset. We are a country emerging from a crisis, and we are a country that does not have enough resources. A country like ours, which still has primary health problems, schools, health centres, roads to build, needs telecommunications that support the country’s development,” adds Soro-Kipeya.

There are still opportunities for new Chinese companies to come on board. There are more than 5,000kms of fiber optic pending, in addition to CDMA coverage of 4,000 additional communities. Further, investors are sure to recover their expenses. “ANSUT has captive resources. A company like Huawei or ZTE is at ease doing business with us because it is sure to be reimbursed as the telecommunications sector pays us 2 percent of its turnover,” says Soro-Kipeya.

Huawei has also been a major provider to the private mobile company Koz. A division of Lebanon’s Comium Group, which has an extensive presence in West Africa, Koz set up operations in the country in 2007. Huawei helped it quickly establish itself as a quality provider with the construction of a “turnkey network of excellent quality,” according to CEO Michel Hebert.

“Huawei came in with a great team of engineers, of highly trained specialists, who were familiar with the situation of telecommunications in Côte d’Ivoire. This gave us a very good start,” he adds. Koz was able to take advantage of both the Lebanese diaspora in the region and the explosion in mobile demand, offering a competitive pricing policy that has seen it grow by 10 percent per year since then.

Now, demand for new apps is keeping Koz’s relationship with Huawei close. “They are our sole network provider and ZTE has begun to approach us also. These two Chinese giants are determined to penetrate the Ivorian market by working with all the mobile operators. This is all the more interesting as there is a need for new platforms for the develop-ment of apps in order to make the network and services smarter, as well as terminals,” says Hebert.

Of the future total of 7,000kms, a 1,400km stretch of optic fiber was laid by huawei, and a second phase is being completed by china telecom’s subsidiary, citcc

huawei has worked with lebanese company Koz in buil-ding a high-quality turnkey network that has allowed the latter to establish itself as a wireless provider

5


The face of Côte d’Ivoire is changing, says Jean-Louis Billon. The Minister of Commerce, Crafts and SME Promotion says that emerging from a 10-year crisis in which “focus was uncer-tain, commerce was restrained, and growth was hampered,” and which brought development to at a standstill, has unleashed pent-up potential. With stability restored, growth has exploded, registering some of the highest rates in the world.

“When we came out of the crisis, matters looked brighter for us: political stability, the return of international institutions, the return of the World Bank, and of the IMF. The resumption of all these relationships allowed us to start all the projects we had put aside and so investments were made. There was

a trigger that has boosted growth, combined with public investment, and all that increased growth to nearly 10 percent,” he explains.

This growth rate could be even higher, says Billon, but the foundations for it must first be built. “We are making significant headway regarding the institutional, legislative and business environment to attract and boost investment. Our infrastructure is ageing so we are doing a lot of overhauling and investing,” he comments.

Billon adds that the very appearance of Abidjan is transforming with the construction of a third bridge and the expansion of the port, as well as within Côte d’Ivoire with the Northern and East-ern highways and new bridges being developed. “All this will bring about a much more dynamic and favorable environment for commerce within two to three years that will boost growth further.”

Creating the right conditions for private sector growth is important to Billon. It’s his job

to see that Côte d’Ivoire’s thrives. Promotion of SMEs forms an integral part in this. In addition to the drafting of framework legislation inspired by the United States’ Small Business Act, his ministry is working on a project entitled Phoenix that aims to consolidate and strengthen Ivorian SMEs that were weakened by the crisis through training and financing.

Loyalty, proximity, innovation, honoring one’s commitments…such are the values of the group La Loyale.

La Loyale Vie and La Loyale Assurances constitute a team of professionals which prizes honoring its commitments, and ooffers you its skills, and innovative abilities to provide you with a greater safety net.

AIRPORT AGENCYSIMAT Airport Air Service FHB -15 POBOX 648ABIDJAN 15 IVORY COASTTel: (225) 21 21 62 16/ 18 – Fax: 21 21 62 [email protected]

ABIDJAN VRIDIZ.I.VRIDI - Rue des Pétroliers – 15 POBOX 648 – Abidjan 12. Ivory Coast

Tel : (225) 21 75 41 01 /02/03 - Fax : (225) 21 75 41 [email protected]

SAN PEDRO AGENCY01 POBOX 299 San Pedro 01 Ivory Coast

Tel: (225) 34 71 71 10 Fax: (225) 34 71 08 87

Transit

� Express

� Hinterland

� Logistics

� Air Freight

Consignments

� Storage

Ligherage Maintenance

Soc ié té I vo i r i enne de Manuten t ion e t de Trans i t

a quickening economic pulsewith pOlitical stability and

greater ecOnOmic grOwth

cOmes greater OppOrtunities

fOr côte d’ivOire’s small and

medium-sized businesses to

thrive and cOntribute tO the

cycle Of expansiOn

Jean-Louis Billon, Minister of Commerce, Crafts and SME Promotion

6


KoZer, bringing people closerWith Comium, millions of smiling faces are comingcloser together in Côte d’Ivoire. This year, we areeven more devoted to bringing you a widerselection of products and innovations that providegreater opportunities to share experiences andemotions with those you love.

PART OF

www.koz.ci We are together

New construction and steadily growing Internet and insurance penetration are signs of Côte d’Ivoire’s economic renaissance

Stéphane Eholié, CEO of Côte d’Ivoire-based marine and air handling services and transit company Simat, agrees that the country’s SMEs will be pivotal in its next stage of growth. “Today the State must play its role in areas like education, infrastructure and health, and this is exactly what they have been doing. But in the economy, the private sector must be the engine of growth. And what is the engine of growth? When you look at the emerging countries, you can tell that the activity that pulls the economic growth most in these countries are the dynamic small and medium-sized companies that are emerging and creating added value and employment,” he states.

Ivorian companies are taking advantage of the country’s favorable economic climate to grow their businesses. Insurance provider La Loyale has increased its turnover 106 percent since it was established in 2005, while net profits have tripled. CEO Bernard Abouo says that the country provides fertile ground for greater growth now. “The outlook for the insurance market is bright. The socio-political situation is getting more stable and will pave the way to a genuine economic recovery,” he says, adding that covering new investments will provide opportunities in the near term.

“The creation of new businesses, new activities, the increase in the active workforce, and the improvement in income of the population are all factors that will lead to a stronger demand for insurance products and services,” states Abouo.

Michel Hebert, CEO of one of Côte d’Ivoire’s leading mobile telephony groups, says the upturn in the country’s economy has been obvious in his sector as well, and he says that things are moving even faster now. “The telecoms sector is expanding rapidly and it continues to do so today. We exceed a penetration rate of 85 percent, which was 72 percent a year ago, and it is still growing. We see that people who have limited means can now afford access to telecoms,” Hebert says.

Inward investment flows are the other element that will pull the Ivorian economy upwards, lifting the country’s private sector along with it. The IMF has predicted a 17 percent increase in investment for 2015, and a close relationship with China will help secure this.

Minister Billon says the government is pleased with its relationship with the Asian nation. “We are one of the African countries that very early

on had relations with the People’s Republic of China. We are delighted with its economic position in the world today; it is undeniable that China is set to become the leading economic power in the world. That is why it is extremely important to deal with them. They represent a key economic partner for us, and hopefully a destination for our exporters in the end.”

the international monetary fund has predicted a 17 percent increase in investment for 2015, and a close relationship with china will help secure this

7


WORLD-CLASS CUSTOMS AT YOUR SERVICEAt the Ivoirian Customs Office (DGD), our substantial investments in digital tech-nology, streamlined procedu-res and the latest geo-posi-tioning systems are part of an ambitious modernisation program designed to create the simplest, safest and most efficient customs service in the region. By applying the highest international stan-dards of ethics, governance and best practice, we are on track to achieving our goal of full-scale automation with total professional excellence.

how to make a transit huba transparent and efficient customs authority can certainly maKe fOr better pOrt OperatiOns

The Port of Abidjan is Africa’s second largest after Durban, and with expansion under way to double capacity and transport links in place to carry higher volumes both to and from the African hinterland, it will soon become an even more important West African transit route. This is just as Côte d’Ivoire planned.

Yet there is more to the story. While state-of-the-art facilities are a central spoke in a port’s wheel of success, a crack customs team provides the support to keep that wheel greased and spinning effectively. Côte d’Ivoire’s general approach to the provision of infrastructure is comprehensive, and its customs authority is another example of this.

Tasked with the collection of port taxes, the agency is also responsible for supporting the compe-tiveness of local industries, part of which is promoting international trade, and ensuring that business as nor-mal is carried out speedily and securely at the nation’s ports. In short, the Ivorian customs authority works to ensure the country’s credibility as a professional and efficient transit hub.

The man heading this crack team is Colonel Major Issa Coulibaly. He says that the customs’ automated infrastructure was relatively unscathed in the country’s 10-year political crisis, allowing it to bounce back quickly once his team took over. Since then, procedures have modernized, control of transit systems and customs’ clearance strengthened. They have also

facilitated the fast release of goods by simplifying the bureaucracy, including increasing the swiftness of delivery orders (now down to less than 48 hours), and introducing modern, non-intrusive monitoring tools like scanners to examine cargo containers without the need to open them.

The result has been a decrease in handling, fewer incidences of fraud and more revenue for the govern-ment coffers. The Customs Authority now provides more than 40 percent of the state budget, posting a record profit of 129.6 billion CFA francs last year. “All these reforms as well as the work of customs officers contributed to achieving this result,” says Coulibaly, “something that has always been sought by every direc-tor of customs, but which we managed to achieve with our current team.”

The team was recently recognized for the ex-cellence of its services in Paris, an award that was especially meaningful given that Côte d’Ivoire was the only public economic operator in the running. “It is the fruit of several years of reforms which were effectively

carried out and our determination in implementing them,” says Coulibaly. “It is also a vindication of the quality of the work done in Côte d’Ivoire

where both the international Félix Houphouët Boigny Airport and the Port of Abidjan, which handles over 80 percent of customs transactions, have been certified ISO 9001. It confirms our role as leader in the sub-region,” he adds.

New monitoring tools at the ports allow for non-intrusive container examination

8


Documents

Côte d'Ivoire