The advantage of untapped potential
After several lost decades (either for political or commodity prices reasons), Côte d’Ivoire finally enjoys robust growth levels, with about +9% (on average, per year) during the last 5 years. The sudden political change provided an opportunity to pursue a reforms agenda. This, in turn, boosted the ease of doing business as reflected in the World Bank ranking which improved from 167 in 2012 to 142 in 2017 and governance indicators.
The diversification of the economy increased and the investment ratio climbed to acceptable levels (18% of GDP on average during the last 5 years, about +50% from the former 3-decades equilibria), with a sizable effect on growth. The ICOR indicator of investment efficiency stands at 2: Côte d’Ivoire needed only 2% of GDP of investment to deliver 1% of growth, an even better efficiency than China in boom years (ICOR of 3). New sectors are developing amidst a virtuous circle of improved governance and attractiveness for foreign investors.