- Basic data
- Public finances and the state budget
- Banking system
- Tax System
The government will focus on stimulating economic development and supporting real GDP growth back to pre-coronavirus levels through the implementation of the 2021-25 National Development Plan (NDP). Domestic investment will increase, with fixed investment rising to 25.3% of GDP by 2026 ( compared to 22.4% in 2020). FDI inflows are also expected to increase from 1.1% of GDP in 2020 to 1.4% of GDP in 2026. Much of this is likely to go into the agricultural sector, and the growing mining and hydrocarbon extraction sector. Deficits will be financed by a mixture of concessional loans from donors and domestic bank finance and international bond issues. Public debt is expected to peak at 49.4% of GDP at the end of 2021 and fall to 40.5% of GDP in 2026 as the economy continues to expand. Check ebizdir for economical facts of Ivory Coast.
|GDP growth (%)||6.2||-1.9||5.7||6.2||6.6|
|Export of goods (billion USD)||12.5||11.3||15.3||15.7||16|
|Import of goods (billion USD)||10.8||10||14||14.2||14.2|
|Trade Balance (Billion USD)||1.7||3||3.3||3.5||3.8|
|Industrial production (% change)||ON||ON||ON||ON||ON|
|OECD export risk||06.VII||06.VII||06.VII||ON||ON|
Source: EIU, OECD, IMD
Public finance and state budget
|State budget balance (% of GDP)||-5.1|
|Public debt (% of GDP)||49.4|
|Current account balance (billion USD)||-3.2|
In 2022-26, the trade surplus in relation to GDP will gradually decrease with the growth of nominal GDP. Export earnings will rise steadily as commodity export earnings rise. The primary income deficit relative to GDP will gradually widen as a result of rising debt service costs and higher repatriation profits from foreign companies operating in the country. The deficit of secondary income due to the growing remittances of foreign workers decreased. The current account deficit will decrease steadily, from 4.1% of GDP in 2022 to 1.9% of GDP in 2026. Deficits will be financed by external borrowings and, to a lesser extent, extent, according to flows of foreign direct investment. Public debt is expected to peak at 49.4% of GDP at the end of 2021 and fall to 40.5% of GDP in 2026 as the economy continues to expand.
The banking sector in Cote is regulated by the Central Bank of West African States (BCEAO). The BCEAO is the joint bank of issue for the WAEMU member states, charged in particular with the management of their common currency, i.e. the African Financial Community Franc (CFAF), their foreign exchange reserves and the implementation of their common monetary policy. Ivory Coast has the lion’s share of banking assets owned by eight UEMOA members: ahead of Benin, Burkina Faso, Guinea-Bissau, Mali, Niger, Senegal and Togo. The country’s commercial banking sector is undergoing privatization as the government seeks to revive the sector. Foreign banks may conduct operations in Côte d’Ivoire. They are subject to the prudential measures and regulations of the WAEMU Banking Commission. Despite the large number of players and significant concentration of leverage among top institutions, new players continue to enter the market. Mansa Bank, which focuses on corporate customers, was licensed in February 2019 and opened its branches in Abidjan later that year with a total capital of CFA$12 billion (CZK 20.6 million). French telecommunications operator Orange was another entrant in the Ivorian banking segment in 2019 and plans to offer microfinance services. By April 2020, there were a total of 130 banks and another 20 financial institutions in eight UEMOA countries. Côte d’Ivoire remained the country with the highest number of such banks, at 29.
Value added tax, the usual value added tax (VAT) in Cote d’ivoire is 18% Exempt from VAT are: exports, butane gas, feed for livestock and farm animals, books, newspapers and magazines, medicines, fertilizers, seeds and grains. A reduced rate of 9% applies to products made from durum wheat, milk, petroleum products and solar energy production equipment. Excise duty applies to the import of cigarettes, alcoholic or non-alcoholic beverages and petroleum products. Corporate Taxes, Company Tax, The standard corporate tax rate for businesses in Côte d’Ivoire is 25%. The corporate income tax rate applies to income from company profits. For telecommunications, information and communication companies, the rate was increased by 5%. Tax rate for foreign companies Non-resident companies with a permanent establishment (PE) are subject to the same tax rates as resident companies, but only on their local income. Non-resident companies without a permanent establishment are subject to a withholding tax of 20% of their local income. Taxation of capital gains Capital gains are included in taxable income and are taxed at the standard corporate income tax rate. The depreciation rate can be double for new equipment and facilities in the first year of use. Goodwill from the transfer of assets is included in taxable profit, but positive goodwill can be deducted if the taxpayer agrees to reinvest the amount within three years following those profits. Start-up costs must be amortized over a period of two to five years. Interest charges can be deducted if it is interest on a loan, the amount of which does not exceed the company’s share capital. Interest expense may not exceed 30% of the company’s profit before interest, taxes, depreciation and amortization.