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Country Commercial Guides for FY 2000: Cote d'Ivoire Report prepared by U.S. Embassy Abidjan, released July 1999

CHAPTER I:   EXECUTIVE SUMMARY

This Country Commercial Guide (CCG) presents a comprehensive look at Côte d'Ivoire's commercial environment, using economic, political and market analysis. The CCG's were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force to consolidate various reporting documents prepared for the U.S. Business Community. Country Commercial Guides are prepared annually at U.S. Embassies through the combined efforts of several U.S. Government Agencies.

1.   Overview

Côte d'Ivoire, with a population of 16.4 million, ranks in the top six African markets for U.S. exports and has the third largest economy in sub-Saharan Africa, after giant South Africa and Nigeria.

Leading U.S. Export Markets in Africa:

 					1998 Export Value 
	Country			  (USD millions)
	South Africa			3,626.1
	Nigeria				  819.6
	Angola				  354.3
	Ghana			  	  223.4
	Kenya				  199.0
	Côte d'Ivoire			  151.6
	Zimbabwe			   93.1

As part of the Central and West African region, Côte d'Ivoire is situated in one of the faster growing regions in the world. Since the devaluation of the CFA franc in 1994, the country has demonstrated strong, sustained economic growth, much as it did in the 1960's and 1970's, when it was known as one of the region's few success stories. Real GDP growth has been approximately 7 percent for four years in succession. However, it is likely that real GDP for 1999 and the first part of 2000 will slow due to several factors. First, a major part of Côte d'Ivoire's economy is supported by cocoa, coffee, palm, and rubber export earnings which have dropped significantly (30 percent for coffee and cocoa) in the first half of 1999. Second, the liberalization of the coffee and cocoa sector will disrupt, to some degree, the marketing of the 1999 - 2000 crop. These factors will most likely slow growth in the short-term (particularly if international coffee and cocoa prices fall further). Third, the upcoming election in fall 2000 may have an adverse short-term affect as the election is expected to be hotly contended. Fourth, the International Monetary Fund's suspension of its structural adjustment program to Côte d'Ivoire will weaken growth in the short term. Nevertheless, Côte d'Ivoire has a good chance of returning to the 6 or 7 percent growth rate in 2000 or 2001 assuming that the Government's strategy of diversifying the economy is working. Overall, solid macroeconomic policies by the Government continue to reinforce commercial confidence. Inflation continues to be under control with relatively low inflation rates: 3.5 percent in 1996, 5.2 percent in 1997, and 2.1 percent in 1998. Finally, with the exception of concessional rice exports, U.S. exports to Côte d'Ivoire have continued to hold their share in the Ivorian marketplace.

2.   Commercial Environment

While Côte d'Ivoire remains open and hospitable to trade and investment from the United States, its traditional ties to France (and Europe), its almost exclusive use of the French language, its business laws and practices, the country's relatively small market size, and its distance from the United States are all factors which have limited U.S. business relationships.

Figures for 1998 indicate that the Ivorian import market amounted to USD 3 billion, up from USD 2.71 billion in 1997 (CFA franc 1,764 billion for 1998). In 1998, U.S. exports were estimated at USD 152 million, representing a 5 percent share of Ivorian trade. This is down from the 1997 figure of USD 165.7 million for U.S. imports. The U.S. slipped back to fourth place behind France, the largest supplier at around 28 percent of the market and Nigeria, the second largest supplier, with a market share of around 19 percent, and Germany, at slighty more than five percent. Note that Nigeria's share of the market consisted almost entirely of crude oil to the Ivorian refinery (much of it re-exported to Nigeria). Principal U.S. exports included telecommunications, oil production equipment, agricultural commodities, plastic materials and resins, paper and paperboard. Since the devaluation of the CFA franc, many importers have taken a greater interest in sourcing from the United States, with Asian countries gaining ground in mass consumer goods.

3.   Major Business Opportunities

Sectors of major interest to U.S. business include: agriculture and food processing; offshore oil and gas development; telecommunications; pharmaceutical products; reconditioned industrial equipment; cosmetics, franchising, and used clothing. Currently, U.S. companies participate in all of these sectors except franchising. Opportunities exist for expanded U.S. exports and investment in these and other areas. Competition will be strong, however, as France, and French/Ivorian ventures significantly influence local commercial activity. However, the first regularly scheduled, weekly liner service for break bulk (containers or bulk) from the U.S (Houston, Newark, Philadelphia, Charleston, Long Beach, Oakland, Miami or Jacksonville) has begun to facilitate U.S. trade with Côte d'Ivoire since its inception a year ago.

4.   Embassy Assistance

The Commercial Service is represented on a regional basis in Abidjan. The Commercial Service, the Foreign Agricultural Service, and other U.S. Embassy elements stand ready to assist U.S. business representatives in their efforts to penetrate Ivorian and other West African markets.

COUNTRY COMMERCIAL GUIDES ARE AVAILABLE FOR U.S. EXPORTERS FROM THE NATIONAL TRADE DATA BANK ON CD-ROM OR VIA THE INTERNET. PLEASE CONTACT STAT-USA AT 1-800-STAT-USA FOR MORE INFORMATION. CS ABIDJAN NOW HAS A WEB SITE: WWW.AFRIBIZ.COM. COMMERCIAL GUIDES CAN BE ACCESSED VIA THE WORLDWIDE WEB AT HTTP://WWW.STAT-USA.GOV; AND HTTP://WWW.STATE.GOV. THEY CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE NATIONAL INFORMATION SERVICE (NTIS) AT 1-800-533-NTIS. U.S. EXPORTERS SEEKING GENERAL EXPORT INFORMATION/ASSISTANCE AND COUNTRY-SPECIFIC COMMERCIAL INFORMATION SHOULD CONTACT THE U.S. DEPARTMENT OF COMMERCE, TRADE INFORMATION CENTER BY PHONE AT 1-800-USA-TRADE. THE TRADE INFORMATION CENTER CAN PROVIDE A REFERRAL TO THE APPROPRIATE EXPORT ASSISTANCE CENTER SERVING CLIENTS THROUGHOUT THE U.S.