The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. GDP per capitaArchived 4 May 2012 at the Wayback Machine grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The Gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before.
After several years of lagging performance, the Ivorian economy began a comeback in 1994, due to the devaluation of the CFA franc and improved prices for cocoa and coffee, growth in non-traditional primary exports such as pineapples and rubber, limited trade and banking liberalization, offshore oil and gas discoveries, and generous external financing and debt rescheduling by multilateral lenders and France.[19] The 50% devaluation of franc zone currencies on 12 January 1994 caused a one-time jump in the inflation rate to 26% in 1994, but the rate fell sharply from 1996–1999.[19] Moreover, government adherence to donor-mandated reforms led to a jump in growth to 5% annually in 1996–99.[19] A majority of the population remains dependent on smallholdercash crop production.[20]
By developing-country standards, Ivory Coast has an outstanding infrastructure.[20] There is a network of more than 13,000 kilometres (8,000 mi) of paved roads; modern telecommunications services, including a public data communications network; cellular phones and Internet access; two active ports, one of which, Abidjan, is the most modern in West Africa; rail links-in the process of being upgraded-both within the country and to Burkina Faso; regular air service within the region and to and from Europe; and real estate developments for commercial, industrial, retail, and residential use.[20] Ivory Coast's location and connections to neighboring countries makes it a preferred platform for foreigners to conduct West African business operations.[20] The city of Abidjan is one of the most modern and liveable cities in the region.[20]
The government's public investment plan accords priority to investment in human capital, but it also will provide for significant spending on the economic infrastructure needed to sustain growth.[20]
In the new environment of government disengagement from productive activities and in the wake of recent privatizations, anticipated investments in the petroleum, electricity, water, and telecommunications sectors, and in part of the transport sector, will be financed without any direct government intervention.[20]
In addition to smaller productions of other agricultural products, like coffee (88 thousand tons) and pineapple (50 thousand tons).[21]
Ivory Coast is among the world's largest producers and exporters of cocoa beans and palm oil.[19] Consequently, the economy is highly sensitive to fluctuations in international prices for these products and to weather conditions.[19] Despite attempts by the government to diversify the economy, it is still largely dependent on agriculture and related activities.[19]Forced labor by children bought and sold as slaves are endemic in cacao production.[22]
Energy
Côte d'Ivoire's energy supply relies on several hydroelectric stations and gas-to-power plants that make use of the country's hydraulic and natural gas resources. Over recent years, the country has also sought to develop its solar industry and is setting up several solar PV plants to diversify its energy mix. [23]
Côte d'Ivoire also holds oil and natural gas resources offshore, although production has remained small compared to other African neighbours such as Ghana or Nigeria. In 2021, it produced less than 25,000 barrels of oil per day (bopd).[24] However, recent discoveries[25] by Eni in 2021 and 2022 have given hope that production could rise in the near future.
Ivory Coast has made progress in diversifying its economy, and since the 1970s, has steadily expanded the facilities offered to tourists. Resort lodgings in coastal areas have been developed. There are numerous hotels in Abidjan, including international chains such as Novotel and Sofitel.
External trade and investment
Ivoirian exports in 2006
Foreign direct investment (FDI) plays a key role in the Ivorian economy, accounting for between 40% and 45% of total capital in Ivorian firms.[20] France is overwhelmingly the most important foreign investor.[20] In recent years[when?], French investment has accounted for about one-quarter of the total capital in Ivorian enterprises, and between 55% and 60% of the total stock of foreign investment capital.[20]
West African Agricultural Market Observer/Observatoire du Marché Agricole (RESIMAO), a project of the West-African Market Information Network (WAMIS-NET), provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Ivory Coast, Guinea, Niger, Mali, Senegal, Togo, and Nigeria. Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.
29,344,847[3]
−$1.86 billion (2017 est.)[5]
$13.07 billion (31 December 2017 est.)[5]
47% of GDP (2017 est.)[5]
