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BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORK FOR INVESTMENT IN CÔTE D’IVOIRE
SEPTEMBER 15, 2017, London
Presented by: M. Emmanuel ESSIS,
Chief Executive Officer of CEPICI
22/05/2017 2
Summary
1 Côte d'Ivoire macro economic overview
2 Business Environment in Cote d’Ivoire
3 Incentive framework for investment
4 Investment opportunities
5 Conclusion
His Excellency MisterAlassane OUATTARA
President of the Republic of Cote d’Ivoire
« The reforms undertaken in the context of
improving the business climate are beginning to
produce some outcomes and result in the
confidence of domestic and international
investors.
Côte d'Ivoire has become one of the most
attractive economies in Africa »
- Speech to the nation - 31.12.2016
COTE D’IVOIRE, LAND OF INVESTMENT
MACRO ECONOMIC OVERVIEW
10.7% 9.2% 8.5% 8.4% 9.0%
2012 2013 2014 2015 2016 (Projections)
Government Ambitions: to make Côte d'Ivoire an
emerging country by 2020 with the private sector as a
pillar of economic growth
Most attractive country in Africa:
>> Improved Business Environment
>> Investment incentives offered by different codes
Setting up a national development plan for the period
2016-2020, costed to 42 billion euros, 29 billion euros
(62%) expected from the private sector
Country with strong economic growth :
ECOWAS: Market of 300 millions consumers
WAEMU : Market of 80 millions consumers
Composed of 100 million middle class
Single currency Franc CFA for 8 countries of the WAEMU Zone;
Fixed exchange rate Franc CFA - Euro (655,56 FCFA = 1 €)
Existence of a common system of tax law (CET);
Benefits to trade:
free trade or preferential tariffs and economic partnershipECOWAS, WAEMU, AGOA, APE, SGP
Côte d’Ivoire is the :
# 1 economy in the Economic and Monetary Union of West African States (WAEMU / UEMOA), representing 40% of its GDP;
#2 economic power behind Nigeria for intra-regional exports.
MACRO ECONOMIC OVERVIEW
Gateway to the West African Market:
1. Abundance of agricultural raw materials : Cocoa, rubber, palm oil, cashew nut
2. Good infrastructure network
• Ports with direct links to Europe and the United States
• Railway connections to domestic markets around the country and the West African region
• Important Highway network, with new sub-regional roads under construction
• Regional and global airline network for exports of high value-added products
3. A reliable energy supply :
• An energy surplus allows the country to export to neighboring countries• Various power plant projects and several hydroelectric projects are underway to meet future
demand
4. Skilled and competitive workforce :
• Labor costs close to those in the Asia region
• Fair cooperation between employee and employer (adequate labor code)• A strong level of education and training
MACRO ECONOMIC OVERVIEW
Source of FDI in flow to Côte d’Ivoire : 2012-2015
51%
30%
16.5%
2.47%
0.03%
1.73 billion USD
Africa
Oceania
Asia
Europe
America
PRIVATE INVESTMENT SECTORS
8
Sources of economic growth between 2012-2016
Attractive investment sectors registered by CEPICI : $5 billion
IT 21%
Agri Business17%
Construction19%
Tourism 8%
Transport10%
Chemical and cosmetic Industry
7%
Manufacturing industry
4%
Other sectors 14%
Other sectors: Energy (gas - water), other services, education / formation / health, extractive industry, livestock, petroleum products, fisheries, agriculture for export, commerce
The diversity of investment sectors justifies the general and multidimensional character of the economy
REGION % FDI from UKPeriod of 2013-2016
Europe (UK) 24% 257
At the CEPICI One-Stop Shop for the 2013-2016 period2013 - 2016
UK PRIVATE INVESTMENT IN CÔTE D'IVOIRE
European private
Investments
UK private
investments
2013-2016
Number of projects 190 15
Amounts invested
(millions d’Euros) 1 070 257
Projections for 2016 - 2020
8.4 billions Euro of private investment targeted by CEPICIincluding 1.071 billion expected from Western European countries (including UK)
PRIVATE INVESTMENTS IN CÔTE D’IVOIRE
42 Billon €(100%)
8,4 Billion €
PND 2016 - 2020 Part of CEPICI
(30% from the
private sector)
Share of FDI
(51% of CEPICI
Goals)
29 billion €(62%)
4,284 Billion € 1,071 Billion €
Private sector
(62% of the PND
2016 - 2020
expected by the
private sector)
Western Europe
(including UK)
(25% of FDI
expected at
CEPICI)
BUSINESS ENVIRONMENT IN COTE D’IVOIRE
Improving competitiveness
A Secure Business Environment• Commercial Court of Abidjan
• Resolution of minor disputes
• Protecting Minority Investors
• Instituting alternative mechanism of conflict resolution
Facilitating and simplifying procedures
• Digitalization of administrative acts and services
• Creation of One stop shops (Foreign Trade– Building Permit – CEPICI)
• Incorporating a company within 24 hours at CEPICI’s one-stop shop GU
• Investment agreement delivered within 21 days
Business Tax Incentives• Adoption d’un Code Général des Investissements
• Sectoral codes (Electricity, Mining, Petroleum, Telecommunication
• VITIB (Free Trade Zone in Biotechnology and Information Technologies)
Establishment of institutional framework• Public Private Partnership (PPP)
• Public Contracts Code
• SME/SMI’s Development Program (PHOENIX)
• Authority for the Regulation and Management of Public Procurement,(ANMRP)
• National Competition Commission
An attractive Investment Code
Guarantees given to investors:
• Freedom of Investment, Equal Treatment, Stability of Benefits• Free access to currencies and full repatriation of operating profits• Protection of private property• Freedom of access to raw materials, managed industrial areas and agricultural land• Freedom to appoint company directors• Work visas and visas• Transfer of assets
Eligible sectors of activity: All sectors of activity, with the exception of non-industrial buildings, trade and banking and financial services
Two incentive schemes under the Code: the reporting regime and the investment approval regime
Tax incentives valid for the first 2 years of investment :
• Exemption from VAT on purchases and imports of equipment• Reduction of customs duties on imports of equipment, supplies and spare parts from 40% to 50%
Tax incentives for investment valid 5, 8 and 15 years depending on location:
• Exemption from taxation of profits, exemption from licensing fees and licenses• Partial reduction of social contributions paid by the employer• Depending on geographic location, other exemptions granted on property tax, capital gains,
etc.
BUSINESS ENVIRONMENT IN COTE D’IVOIRE
INCENTIVE FRAMEWORK FOR INVESTMENT
AUTHORIZATION SCHEME FOR INVESTMENT
ZONE A (District of Abidjan)
ZONE B (+ de 60.000 Hbts) ZONE C (- de 60.000 Hbts)
BENEFITS GUARANTED INVESTMENT STEP ( Start-up or development business)
Reduction from 40% to 50% in the amount of customs duty payable on equipment and raw materials on the first batch of spare parts Total exemption from VAT
Duration Two (2) years with one year extension if 66% of the Investment amount has started
BENEFITS GUARANTIES IN INVESTMENT OPERATING LEVEL)
Duration 5 years 8 years 15 years
Exemption from TAX on Industrial and commercialprofit (1st year)- before last year- last year
100%
50%
25%
100%
50%
25%
100%
50%
25%
Exemption from businesslicence and permits TAX(1st year)
- before last year- last year
100%
50%
25%
100%
50%
25%
100%
50%
25%
Reduction in the amount of the contribution paid by employer
50% 75% 90%
Exemption from TAX on property income for housing made available to staff
0% 0% 100%
CREATION
• Decree No. 2012-867 of September 6th, 2012
• CEPICI is a National Public Administration
MISSIONS
Be the One-Stop Shop for Investment in Côte d'Ivoire.
Federates, coordinates and streamlines all initiatives and government actions to promote investment and private sector development
TOP MANAGEMENT
Management Board
- Private sector
( 3 members )
- Public sector( 5 members)
General Management
Presentation of CEPICI
INCENTIVE FRAMEWORK FOR INVESTMENT
Business creation
Assistance and facilitation for
investment
Access to benefits of the Investment
Code
Development of business partnerships
Organization of economic events
Improving the business environment
Promoting National Entrepreneurship
and Startup
Monitoring of approved investments
PRESENTATION OF CEPICI
INCENTIVE FRAMEWORK FOR INVESTMENT
PRESENTATION OF CEPICI ONE-STOP-SHOP
StartingBusiness Service
24 Hours
IndustrialLand Service
The One-Stop-Shop
of the CEPICI
Investment Code
Service
Supporting investors in
obtaining land for industrial use
Receiving and processing
investor applications to benefit
from the Investment Code.
Follow-up of the implementation
of the provisions of the Investment Code.
Facilitation of administrative formalities relating to the creation, operation, transmission or extension of enterprises.
Contribution to the reduction of the costs and deadlines relative to these formalities (creation within 24 hours).
INCENTIVE FRAMEWORK FOR INVESTMENT
Industrial agriculture
Livestock / Pisciculture
Production of food crops
Market gardening
Agro industry / Agro businessReal Estate, Construction,
ConstructionMechanical engineering / electronics / automotive
industryEconomic Infrastructure / Sport
InfrastructurePharmaceutical industry / Health
Transportation / Mobility / Civil Aviation
Ports / LogisticsTechnologies / ICT /
Biotechnology / TelecommunicationsTourism / HospitalityProfessional training
Health / Retail
Objective of the Government: Structural transformation of the Ivorian economy through industrialization
Primary sector Secondary sector Tertiary sector
INVESTMENT OPPORTUNITIES
In Côte d’Ivoire: 2016-2020
The priority sectors: 2016 - 2020
Government objective: Structural transformation of the Ivorian economy through industrialization.
Major Projects / Opportunities for Emerging Economy
Agricultural development; including rice, maize, vegetable crops,
etc.
Processing and industrialization of agricultural products (cocoa,
coffee, cashew nuts)
Development of production of animal and fish resources.
Construction of school, university and health facilities.
Construction of road infrastructures, creation and development of
industrial and port areas.
Construction of hydroelectric dams.
Construction of commercial complexes.
Construction of hotel and tourist infrastructures
INVESTMENT OPPORTUNITIES
Constantly improving business climate
A range of investment opportunities
CEPICI is willing to assist you in achieving your investment projects in Côte d’Ivoire
www.cepici.gouv.ci
Côte d'Ivoire remains a country with :
