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Republic of Cote d'Ivoire ------------------- Union – Discipline – work CABINET OF PRESIDENT,. NATIONAL SECRETARY FOR RECONSTRUCTION AND REINSERTION. Presentation of the National Secretary at the Toronto Conference 2012.
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Republic of Cote d'Ivoire -------------------Union – Discipline –work CABINET OF PRESIDENT, NATIONAL SECRETARY FOR RECONSTRUCTION AND REINSERTION
Presentation of the National Secretary at the Toronto Conference 2012 Theme of Tuesday, October 2, 2012: Day dedicated to Infrastructure and Natural Resources
Ladies and gentlemen, all your grades and qualities. First of all I would like to thank the organizers of the Toronto Economic Forum 2012, particularly Mr Gil and Nicolas Remillard. My thanks also go to the Canadian people and its Government who have always maintained a good partnership with the Ivorian authorities. Indeed, this platform of expression that you give us is in conformity with the efforts of the Ivorian Government to make clear to all partners and investors in the world and in Americas, particularly in Canada that Côte d'Ivoire is back and intends to consolidate its position as the engine of economic and social development in west Africa
through the operationalization of the economic and social development vision of the President Alassane OUATTARA whose will is to make Côte d'Ivoire an emerging country by 2020. Our contribution will therefore revolve around macroeconomic outlook for the years 2012 to 2015 and the impact of infrastructure and mining on the economic growth. Côte d'Ivoire is a West African country that has come through more than a decade of crisis. Its growth rate was -4.7% in 2011. To meet the urgent needs of the populations and stabilize the macroeconomic framework, the Government has established an emergency program, supported by Fast Credit Facility (RCF), which received significant financial support from the entire international community (WB, ADB, IMF, etc).
The success of its implementation and the consolidation of peace led to the conclusion of a three-year program supported by the Extended Credit Facility (ECF). Taking advantage of reaching the completion point of the HIPC initiative in 26 June 2012, the Government has adopted a strategy of economic recovery based on the restoration of a dynamic, strong and sustainable growth by 2012 with the private sector as a key actor.
STRATEGY FOR ECONOMIC RECOVERY Restoring the sustainability of public finances remains one of the positive aspects of the completion point of the HIPC initiative allowing the country to seek further international financial markets at a lower cost without risk of explosion commitments impact on the state budget and develop economically viable projects, including through public-private partnerships. NB: Specific arrangements have been taken to regulate the debt with the establishment of the National Committee of the Public Debt (CNDP)
Reaching the completion point of the HIPC initiative is a platform of opportunities that must be transformed in order to make effective a second period of economic prosperity in Côte d'Ivoire. • The economic recovery strategy is based on the National Development Plan and is summarized as follows: • Stability of Macroeconomic framework and public finance; • Improving the business climate; • Revival of public and private investment; • Diversification of sources of growth.
Stability of Macroeconomic framework and public finances The macroeconomic stability and consolidation of public finances is the first step in the political economy of sustainable recovery. It involves: • boosting economic growth; • control of the general level of prices; • good performance of external accounts; • controlled management of the monetary situation. • The consolidation of public finances requires that the state monitors its funding, opting for options that do not lead to situations of continued deficits. In other words, the government must manage the resources, that is to say, in accordance with the principles of good governance.. STRATEGY FOR ECONOMIC RECOVERY
Improvement of the business climate Improving the business climate is a central policy of economic recovery. It involves (i) the environmental remediation and (ii) the resolution of structural problems. The remediation of environmental concerns, including : • continuation of ongoing reforms to achieve the competitiveness of key sectors of the economy; • justice reform, with the aim to improve the efficiency, transparency and independence of the judiciary system; • revision of the legislative framework for conduct of business (investment code, hydrocarbons code, electricity code, etc.).. STRATEGY FOR ECONOMIC RECOVERY
Improvement of the business climate(end) The remediation of environmental concerns also : • enhancing the competitiveness of key sectors of the economy, with major reforms such as coffee and cocoa sector, the energy sector, • improving the conditions for the economic activity, with the fight against false charges, fraud, smuggling and counterfeit goods; • creating a business center facility, with the aim of concentrating in one place, those involved in the creation of business to reduce the time to 48 hours, etc.. structural problems to be solved relate to the competitiveness of the sectors, the productivity of internal processes and quality. STRATEGY FOR ECONOMIC RECOVERY
Revival of public and private investment • The National Development Plan provides a level of investment of 11.000 billion CFA francs or 24 billion U.S. dollars over the period 2011-2015. In 2011, the total investment accounted for just over 1.8 billion USD • To achieve this objective, the Government intends to: • make efforts for the public investment (over the period 2012-2015, approximately U.S. $ 9 billion of investment); • promote public partnerships; • encourage the private sector (U.S. $13 billion from 2012 to 2015). STRATEGY FOR ECONOMIC RECOVERY
Revival of public and private investment(continued) Regarding public investment, increase is required to: - rehabilitate infrastructure destroyed during the crisis; - build new infrastructure to meet the deficit related to lack of investment over many years. The rate of public investment is expected to increase and settling at: • 5.3% of GDP in 2012; • 7.1% in 2013; • 9.1% in 2015. STRATEGY FOR ECONOMIC RECOVERY
The increase in public investment includes the implementation of Contracts Debt Relief and Development covering a total of about U.S. $ 2.6 billion, including U.S. $ 0.82 billion from 2012 to 2015 • Mechanisms C2D: • signing between Côte d'Ivoire and France of an agreement with a staggered schedule over time; • registration deadlines annual budget expenditure and payment by the Treasury; • payment restitution received by France to Côte d'Ivoire as a donation, within a maximum period of one month; STRATEGY FOR ECONOMIC RECOVERY Revival of public and private investment(continued)
use of donations received for the implementation of investment projects previously identified by the Government in accordance with the priorities of the NDP. • Revival of private investment through: • By promoting public-private partnerships (PPP) • by promoting the destination Côte d'Ivoire; Note: Selecting priority PPP projects involved in the commercial sector Example to continue: • Henri Konan BEDIE Bridge • Azito and CIPREL(Thermal Power Plant) Thus, private investment would increase from 5.4% of GDP in 2011 to 6.7% in 2012, 11.7% in 2014 and 14.4% of GDP in 2015 STRATEGY FOR ECONOMIC RECOVERY Revival of public and private investment(eNd)
Diversification of sources of growth (sectors of infrastucture and mining). Recent studies have shown that Côte d'Ivoire has a higher growth potential in some areas than others. • Infrastructure sector (Reconstruction in all areas) Public investment has been particularly affected by the long period of crisis, so that the infrastructures could not be maintained or developed because of the low fiscal capacity The rate of public investment is expected to increase and settling at: • 5.3% of GDP in 2012; • 7.1% in 2013; • 9.1% in 2015. STRATEGY FOR ECONOMIC RECOVERY
STRATEGY FOR ECONOMIC RECOVERY Diversification of sources of growth (sectors of infrastucture and mining). • -Roads (5200 km of rehabilitation and 5000 km of new roads to be built) • -Health, education, housing • -Energy, industry, mining (dams, thermal power plant, pipeline) • - Agriculture, ports and airports infrastructure (new terminal in San-pedro and Abidjan) etc. • A portfolio of projects to be implemented within the framework of a public-private partnership is available. • the mining and energy sectors • where a development strategy is underway with the preparation of the new mining and energy code. These sectors represent new sources of incomes in addition to those generated by the coffee and cocoa.
COTE D’IVOIRE – GEOLOGICAL MAP GEOLOGY Sedimentary Granit Green Rocks Archeen Birimien
GOLD BEARING POTENTIAL IN COTE D’IVOIRE Niger Mali Yatela Niamey Sadiola Hill Burkina r e v i R r e g i N Loulo Sabodala Samira Faso Bamako Poura Ouagadougou Morila Siguiri N Syama 50 Tongon MALI Angovia Bibiani Ity 10% 6 Obotan Bonikro COTE D’ IVOIRE 35 % BURKINA Obuasi 7 Abidjan FASO Afema 21% Côte d’Ivoire GHANA GUINEE Atlantic Ocean 19% 11% 15 100 Au tonnes %Birimian
THE MINISTRY OF MINES, PETROLEUM AND ENERGY • THE DIRECTION GENERALE DES MINES ET DE LA GEOLOGIE Technical and administrative body for the implementation of the mining policy. • SODEMI State owned company for Mineral project development, either alone or with interested partners.
MACRO ECONOMICS OBJECTIVES Contribute to lift Côte d’Ivoire to the level of emerging countries by 2020 • Diversify internal revenues by a strong mining sector to withstand agriculture. • Increase the contribution of the mining sector (without hydrocarbons) to 8 % of the Gross Domestic Product by 2025.
OBJECTIVES BY 2025 • Make Côte d’Ivoire: • A great Mining Country;
OBJECTIVES BY 2025 • IMPLEMENT DEVELOPMENT OF A METALLURGICAL INDUSTRY • Inputs supply for ferro alloys plants : • National production; • Sub regional production • Types of ferro alloys plants to be implemented • Ferro manganese alloys • Ferro silicon alloys • Ferro chromium alloys • Ferro Noble alloys (aluminum, titanium, cobalt, nickel magnesium) • Constraints • Availability of energy • Special taxation for the sector
ECONOMIC RECOVRY : RESTORATION OF A DYNAMIC, STRONG AND SUSTAINABLE GROWTH STARTING IN 2012 • The recovery strategy as described should enable a return to growth in 2012, with a projected rate of 8.1%, after an underperformance of -4.7% in 2011. • In 2013, the growth rate is expected to be 9% and 10% in 2014 .
EXAMPLES OF PROJECTS • THE MAHAPLEU GOLD PROJECT; • THE OUELLE GOLD PROJECT • THE FERRO MANGANESE PROJECT
Private investors are invited to take advantage of opportunities offered to them in Côte d'Ivoire NDP • coherent middle term framework • with a very promising growth prospect • Many opportunities in the sectors of energy and mining (investment needs in the sector of energy and mining : 27,3 billion USD for 170 projects)
Côte d'Ivoire a crossroad for regional interconnexion in the sector of energy (electric interconnexion withneighbouring countries, pipeline for distribution of petrolum and gas) Côte d'Ivoire has also the ambition to play a keyrole in Africa in the field of sustainaibleenergy (dams, solarenergy)
Côte d’Ivoire restarted vigorously forward i and is key market in Africa for international investors Côte d’Ivoire economic driving force in West Africa Restoration of economic equilibrium implementation of structural reforms sustained investissement flows strong and sustainable growth national investment plan = coherent stratégic framework for investment policy
Theprivate sector is expected to invest in productive capacity, especially through Public-Private partnerships . • The new investment code adopted by the Government in 2012 aims to promote the industrialization of Côte d’Ivoire through attractive tax benefits, and provisions for guarantees and enhanced protection.It has been developed with the help of the IMF and World Bank • Côte d’Ivoire is eligible at AGOHA and authorities are managing its eligibility at the Millenium Challenge Corporation (MCC) of american Congress • Canadian and Ivorian authorities have been discussing for the signature of an agreement concerning the promotion and protection of canadian investments in Côte d’Ivoire.
Côte d’Ivoire is back • Côte d’Ivoire an emerging country by 2020 • The private sector is encouraged to invest in various developement projects in Côte d’Ivoire particulary in agriculture, mining, roads, petrolum, basic socioeconomic infrastucture. • Côte d’Ivoire a vast work site open to all and in all sectors . • In Côte d’Ivoire the best ones will win the tenders.