SEPTEMBER 15, 2017, London BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORK FOR INVESTMENT IN CÔTE D’IVOIRE Presented by: M. Emmanuel ESSIS , Chief Executive Officer of CEPICI
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 22/05/2017 2
COTE D’IVOIRE, LAND OF INVESTMENT « 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 His Excellency Mister Alassane OUATTARA President of the Republic of Cote d’Ivoire
MACRO ECONOMIC OVERVIEW to make Côte d'Ivoire an Ambitions : Government emerging country by 2020 with the private sector as a pillar of economic growth 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 : 10.7% 9.2% 9.0% 8.5% 8.4% 2012 2013 2014 2015 2016 (Projections) Most attractive country in Africa: >> Improved Business Environment >> Investment incentives offered by different codes
MACRO ECONOMIC OVERVIEW Gateway to the West African Market: 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 partnership ECOWAS, 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 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
Source of FDI in flow to Côte d’Ivoire : 2012-2015 1.73 billion USD 30% Asia Europe 16.5 % America 2.47% 51% Oceani a 0.03 Africa %
PRIVATE INVESTMENT SECTORS Sources of economic growth between 2012-2016 Attractive investment sectors registered by CEPICI : $5 billion Other sectors 14% Manufacturing IT 21% industry 4% Chemical and cosmetic Industry 7% Transport Agri Business 10% 17% Tourism 8% Construction 19% 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 8 character of the economy
UK PRIVATE INVESTMENT IN CÔTE D'IVOIRE At the CEPICI One-Stop Shop for the 2013-2016 period 2013 - 2016 European private UK private Investments investments 2013-2016 Number of projects 190 15 Amounts invested (millions d’Euros) 1 070 257 FDI from UK REGION % Period of 2013-2016 Europe (UK) 24% 257
PRIVATE INVESTMENTS IN CÔTE D’IVOIRE Projections for 2016 - 2020 8.4 billions Euro of private investment targeted by CEPICI including 1.071 billion expected from Western European countries (including UK) 42 Billon € (100%) 29 billion € (62%) 8,4 Billion € 4,284 Billion € 1,071 Billion € Western Europe PND 2016 - 2020 Private sector Part of CEPICI Share of FDI (including UK) (62% of the PND (30% from the (51% of CEPICI (25% of FDI 2016 - 2020 private sector) Goals) expected at expected by the CEPICI) private sector)
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
BUSINESS ENVIRONMENT IN COTE D’IVOIRE 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.
INCENTIVE FRAMEWORK FOR INVESTMENT AUTHORIZATION SCHEME FOR INVESTMENT ZONE A (District of ZONE B (+ de 60.000 Hbts) ZONE C (- de 60.000 Hbts) Abidjan) 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 100% 100% 100% Industrial and commercial profit (1 st year) 50% 50% 50% - before last year - last year 25% 25% 25% Exemption from business 100% 100% 100% licence and permits TAX (1 st year) 50% 50% 50% - before last year - last year 25% 25% 25% Reduction in the amount of the contribution paid by 50% 75% 90% employer Exemption from TAX on property income for housing 0% 0% 100% made available to staff
INCENTIVE FRAMEWORK FOR INVESTMENT Presentation of CEPICI MISSIONS TOP CREATION MANAGEMENT Be the One-Stop Shop for Investment in Côte • Decree No. Management d'Ivoire. 2012-867 of Board September 6 th , Federates, coordinates - Private sector 2012 and streamlines all ( 3 members ) • CEPICI is a initiatives and National Public - Public sector government actions to Administration ( 5 members) promote investment and private sector General Management development
INCENTIVE FRAMEWORK FOR INVESTMENT PRESENTATION OF CEPICI 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
INCENTIVE FRAMEWORK FOR INVESTMENT PRESENTATION OF CEPICI ONE-STOP-SHOP Facilitation of administrative Contribution to the reduction of formalities relating to the creation, the costs and deadlines relative operation, transmission or to these formalities (creation extension of enterprises. within 24 hours). Starting Business Receiving and processing Service investor applications to benefit 24 Hours from the Investment Code. Supporting investors in Follow-up of the implementation The One- obtaining land for of the provisions of the Stop-Shop industrial use Investment Code. of the CEPICI Investment Industrial Code Land Service Service
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