After decades of crises, Côte d'Ivoire has finally regained its status as West Africa's locomotive with growth that fluctuated between 6 and 11% between 2012 and 2019. In 2020, due to the impact of the COVID-19 pandemic, growth could fall to 2.7%. The IMF expects a strong rebound to 8.7% from 2021, which would make it the most dynamic economy in sub-Saharan Africa. In the medium term, the pace of growth should remain vigorous but gradually decelerate. Inflation remains under control (estimated at 1.6% in 2019 then 1.2% in 2020), below the WAEMU community ceiling of 3%. The World Bank is already anticipating a 5% rebound from 2021.

Despite the global recession, the Ivorian economy wanted to be resilient with the implementation of support funds to fight against the impacts of Covid 19, and also the inauguration of socio-economic infrastructure.

Support measures for businesses, SMEs, the informal sector and populations

To cushion the shock of the pandemic, the government has launched a support plan of 1,700 billion CFA francs (2.6 billion euros), or 5% of GDP, over two years (2020-2021).

Several funds to support the private sector and employability

Several funds have been set up to reduce the impact of COVID 19 on the private sector and enable economic recovery. Given the budgetary constraints, the allocations for the benefit of the support funds, for the year 2020, have been revised.

The Solidarity and Humanitarian Emergency Support Fund (FSS): 60 billion CFA francs against 90 billion initially planned. The Support Fund for Actors in the Informal Sector (FASI): 20 billion CFA francs against 40 billion initially planned. The Support Fund for Large Enterprises (FSGE): 38 billion CFA francs against 50 billion initially planned. The SME Support Fund (FSPME): 40 billion CFA francs against 50 billion initially planned.

The detailed situation of the operations carried out at the end of October 2020 shows:

55 large companies having benefited from direct loans from the FSGE for a total amount of 14.39 billion CFA francs, or 75.7% of the resources available for direct loans.

325 SMEs received support from the FSPME, for a total amount of 13.009 billion CFA francs. For the month of October alone, 168 applications were approved and received an amount of 7.137 billion CFA francs, or 54.8% of all amounts granted to SMEs since the establishment of the Fund.

48,152 actors benefited from FASI support for a total amount of 10.7 billion CFA francs. These beneficiaries come from the sectors of crafts (13.7%), trade (58.5%), catering (15.7%), transport (4.1%), culture, Leisure (3.6%) and services (4.4%).

The total amount of FSS interventions amounts to 24.24 billion CFA francs. The operations carried out focused in particular on cash transfers for the benefit of 143,424 vulnerable households, including 124,285 beneficiaries from greater Abidjan and 19,139 from the interior of the country, support for 15,857 people made redundant or unemployed, on a target of 20,706 workers, i.e. a rate of 76.58% taking into account of the target.

Lots of public support

The State releases 900 million FCFA for the management of water bills to mitigate the impact of COVID 19 on households.

This measure concerned 316,000 households, including 70% in Abidjan and 30% in the interior of the country, ie two million beneficiaries whose consumption is between 1 m3 and 18 m3 of water quarterly.

Similarly, water bills which should be paid in April 2020 have been postponed to July 2020 and those which should be paid by May 06 at the latest postponed to August 31, 2020.

Measures to strengthen the water supply during the fight against COVID 19

To guarantee drinking water supply in Abidjan and in the interior of the country, a crisis committee has been in place since the end of March 2020. It includes the Ministry of Hydraulics, the National Office for Drinking Water ( ONEP) and the Water Distribution Company of Côte d'Ivoire (SODECI). Its mission is to quickly deal with all the challenges caused by the measures taken by the government to counter the disease, from the commissioning of the Saint Viateur production plant which will impact the Djibi, Abatta, Riviera and Djogorobité.

Added to this is the work of the project called "Improving the technical and financial performance of the drinking water sector" (APTF), covering 155 sub-districts of the District of Abidjan and its surroundings at a cost of 47 billion CFA francs. The increase in water distribution tanker trucks in Abidjan from three to seven in order to take over in the event of a break in the continuity of service in hospitals, military camps, prisons and neighborhoods. Finally, raising awareness against the breakage of drinking water distribution pipes and equipping thirty water production plants with return generators.

10 billion FCFA to cover the electricity bills of poor households

The measure of payment of electricity bills for April and May 2020 of subscribers to the social tariff of poor Ivorian households announced by the government to mitigate the social consequences of the Coronavirus disease (Covid-19) in the country cost approximately 10 billion FCFA to the Ivorian State.

This measure in favor of low-income households has benefited 40% of electricity subscribers, ie approximately 6 million of fellow citizens.

One of the measures also concerned the postponement for all households, of the April and May 2020 payment deadlines for electricity bills, for an additional three months to pay these bills.

300 billion FCFA made available to the agricultural sector

The Ivorian government has made 300 billion CFA francs available to agricultural sectors with a view to reducing the impact of COVID 19 on all agricultural raw materials, Côte d'Ivoire's main export products.

This amount is distributed over the 2020 and 2021 budget year due to 150 billion CFA francs per year.

In June 2020, several checks were given to the professional units executing the agricultural emergency program as part of the measures to mitigate the impact of COVID-19 on this sector of activity.

Thus, an amount of 79.54 billion CFA francs was granted to the export sectors, namely the cashew nut sector for a subsidy of 35 billion CFA francs, cotton for support of 5.56 billion CFA francs, rubber for support of 24.98 billion CFA francs, oil palm for support of 3.5 billion CFA francs, dessert banana 4.5 billion CFA francs, pineapple one billion CFA francs and mangoes 5 billion CFA francs.

The food production sectors (food crops, poultry farming, pigs and livestock in development, artisanal fishing and aquaculture) share 39.96 billion CFA francs.

These actions have not undermined the Government's desire to undertake major infrastructure projects.

Many infrastructure projects have been launched despite the pandemic

The Autonomous Port of Abidjan will have a second container terminal (TC2), in the port area of Vridi. The reception capacity of the Autonomous Port of Abidjan (PAA) increases from one million to 2.5 million containers per year, with the construction of the second container terminal (TC2). The President of the Republic, Alassane Ouattara, laid the foundation stone on Monday, October 5, 2020. "This is a project that is close to my heart, given its impact on employment, and also for the fluidity it will allow to have at the PAA, the lung of West Africa", said Alassane Ouattara.

The cost of this new terminal is estimated at 596 billion CFA francs, i.e. 334 billion CFA francs for the infrastructure already completed and 262 billion FCFA for the “superstructure” component. The work will last 18 months. The project will create 450 direct jobs.

Well before January 2020, the first stone was laid for the cereal terminal of the Autonomous Port of Abidjan (PAA). The construction of this terminal is estimated at 59.9 billion CFA Francs, including 58.3 billion provided by the Japanese International Cooperation Agency (JICA). This terminal will be able to receive ships carrying 40,000 to 50,000 tonnes of food bulk instead of 30,000 tonnes at the existing quays, i.e. a 60% increase in capacity.

The constancy, the increase in the selling prices of raw materials

“Faced with economic shocks, Côte d'Ivoire is much more resilient than ten years ago,” observes Youssouf Carius, CEO of Pulsar Partners, an Ivorian investment fund.

To mitigate the harmful effects of covid-19 on agricultural exports, the Ivorian Government has announced 300 billion CFA francs, to support all players in this sector.

Officially opened in February 2020, the price of cashew nuts rose this year to 400 CFA francs per kilogram, compared to 375 CFA francs in 2019. To deal with these difficulties linked to Covid, urgent measures have been taken in view of the removal of cashew nut stocks from the hands of producers. They should enable more than 400,000 disadvantaged households to cope with the financial difficulties accentuated by COVID.19.

Regarding cotton, the development of the season indicates that seed cotton production could reach a new record of 510,000 tonnes. In April, a volume of more than 450,000 tons is recorded in the cotton factories. The kilogram of cotton has been set at 300 FCFA for 2020/2021, a record in West Africa. This price identical to that of the previous season and remains the most attractive in West Africa for the said season, according to specialists.

With regard to cocoa, the sector has anticipated by taking internal measures. For the intermediate season, despite the fall in international prices, the farm gate purchase price of 825 CFA francs per kilogram was maintained, ie an additional effort of 200 CFA francs/kilogram to support producers. For the 2020/2021 campaign, the farm gate price of Ivorian cocoa has risen from 825 FCFA to 1,000 FCFA. However, difficulties loomed on the horizon regarding the implementation of the living income differential (DRD).

The Conseil du Café-Cacao and Ghana Cocoa Board had therefore suspended “all collaboration” with the association of American chocolatiers, the Cocoa Herchants Association of America (CIMA), for their reluctance to apply the DRD. But the suspension was lifted after a return to better sentiments from chocolatiers.

Cocoa farmers in Ivory Coast and Ghana, according to an agreement, should benefit from a better remuneration by granting them a Living Income Differential of $400 for each ton of cocoa sold by the two countries from the 2020 season -2021.

For the rubber industry, the effects of the COVID-19 pandemic have resulted in postponements of contracts or postponements of shipments as well as the drastic drop in world prices. But prices, after experiencing a drop between May and September, have returned to their level at the start of the year, ie 300F/KG. Ditto for oil palm. After the declines between May and September, prices resumed their rise above 50F/KG.

For the rubber and oil palm sectors, the government has taken the decision to support the income of producers, for products whose exports are currently stopped, manufacturers, so that the activities of their agro-industrial units are not interrupted. .

Budget deficit under control despite the pandemic

At the end of September 2020, the budget stood at 1371.8 billion CFA francs, against 594.3 billion CFA francs at the same period of the previous year, i.e. a deterioration of 130.83%. The reason, the adoption of health and economic response plans against the coronavirus disease pandemic.

But this deficit was financed thanks to a record mobilization of nearly 3,000 billion francs on the regional financial market. It is precisely about 2837.7 billion CFA francs including 1623.8 billion CFA francs of Treasury bills, 951.4 billion of debenture loans and 622.5 billion of treasury bonds.

Prospects for 2021: meeting the challenges of inclusive and egalitarian growth

If the country is a good pupil in terms of growth, the development figures remain relatively low in comparison. And inequalities are widening. This year, Côte d'Ivoire is also ranked 171st out of 189 countries in the ranking on the human development index.

For his new term, President Alassane Ouattara has decided to make education, training and youth employment his priority. He is committed to a transformation of the economy that will create more jobs for our young graduates, in particular by multiplying the extent of the national territory, the vocational training centers.

“The development of human capital will be the subject of a special program from the first half of 2021, to make it an instrument for improving productivity, essential to the pursuit of our virtuous dynamic on the economic and social levels. This will take into account, in particular, the dimensions of health, nutrition, social protection and education-training, in particular for young girls,” he assured.