BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORK FOR INVESTMENT IN CTE - - PowerPoint PPT Presentation

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BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORK FOR INVESTMENT IN CTE - - PowerPoint PPT Presentation

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SEPTEMBER 15, 2017, London BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORK FOR INVESTMENT IN CTE DIVOIRE Presented by: M. Emmanuel ESSIS , Chief Executive Officer of CEPICI Summary 1 Cte d'Ivoire macro economic overview 2 Business

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BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORK FOR INVESTMENT IN CÔTE D’IVOIRE

SEPTEMBER 15, 2017, London

Presented by: M. Emmanuel ESSIS, Chief Executive Officer of CEPICI

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22/05/2017 2

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

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His Excellency Mister Alassane OUATTARA President of the Republic of Cote d’Ivoire

« The reforms undertaken in the context

  • f

improving the business climate are beginning to produce some

  • utcomes

and result in the confidence

  • f

domestic and international investors. Côte d'Ivoire has become

  • ne
  • f

the most attractive economies in Africa »

  • Speech to the nation - 31.12.2016

COTE D’IVOIRE, LAND OF INVESTMENT

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MACRO ECONOMIC OVERVIEW

10.7% 9.2% 8.5% 8.4% 9.0% 2012 2013 2014 2015 2016 (Projections)

Government Ambitions: to make Côte d'Ivoire an emerging country by 2020 with the private sector as a pillar of economic growth Most attractive country in Africa: >> Improved Business Environment

>> Investment incentives offered by different codes

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 :

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  • 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

Gateway to the West African Market:

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  • 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

MACRO ECONOMIC OVERVIEW

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SLIDE 7

Source of FDI in flow to Côte d’Ivoire :

2012-2015

51% 30% 16.5 % 2.47% 0.03 %

1.73 billion USD

Africa Oceani a Asia Europe America

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PRIVATE INVESTMENT SECTORS

8

Sources of economic growth between 2012-2016

 Attractive investment sectors registered by CEPICI : $5 billion

IT 21% Agri Business 17% Construction 19% Tourism 8% Transport 10% Chemical and cosmetic Industry 7% Manufacturing industry 4% Other sectors 14%

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 character of the economy

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REGION % FDI from UK

Period of 2013-2016

Europe (UK) 24% 257

At the CEPICI One-Stop Shop for the 2013-2016 period 2013 - 2016

UK PRIVATE INVESTMENT IN CÔTE D'IVOIRE

European private Investments UK private investments 2013-2016 Number of projects

190 15

Amounts invested (millions d’Euros)

1 070 257

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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)

PRIVATE INVESTMENTS IN CÔTE D’IVOIRE

42 Billon € (100%) 8,4 Billion €

PND 2016 - 2020 Part of CEPICI (30% from the private sector) Share of FDI (51% of CEPICI Goals)

29 billion € (62%) 4,284 Billion € 1,071 Billion €

Private sector (62% of the PND 2016 - 2020 expected by the private sector) Western Europe (including UK) (25% of FDI expected at CEPICI)

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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
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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.

BUSINESS ENVIRONMENT IN COTE D’IVOIRE

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INCENTIVE FRAMEWORK FOR INVESTMENT

AUTHORIZATION SCHEME FOR INVESTMENT

ZONE A (District of Abidjan) ZONE B (+ de 60.000 Hbts) ZONE C (- de 60.000 Hbts) 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 Industrial and commercial profit (1st year)

  • before last year
  • last year

100% 50% 25% 100% 50% 25% 100% 50% 25% Exemption from business licence and permits TAX (1st year)

  • before last year
  • last year

100% 50% 25% 100% 50% 25% 100% 50% 25% Reduction in the amount of the contribution paid by employer 50% 75% 90% Exemption from TAX on property income for housing made available to staff 0% 0% 100%

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CREATION

  • Decree No.

2012-867 of September 6th, 2012

  • CEPICI is a

National Public Administration

MISSIONS

Be the One-Stop Shop for Investment in Côte d'Ivoire. Federates, coordinates and streamlines all initiatives and government actions to promote investment and private sector development

TOP MANAGEMENT

Management Board

  • Private sector

( 3 members )

  • Public sector

( 5 members) General Management

Presentation of CEPICI

INCENTIVE FRAMEWORK FOR INVESTMENT

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  • 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

PRESENTATION OF CEPICI

INCENTIVE FRAMEWORK FOR INVESTMENT

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PRESENTATION OF CEPICI ONE-STOP-SHOP

Starting Business Service 24 Hours Industrial Land Service

The One- Stop-Shop

  • f the

CEPICI

Investment Code Service

Supporting investors in

  • btaining land for

industrial use Receiving and processing investor applications to benefit from the Investment Code. Follow-up of the implementation

  • f the provisions of the

Investment Code. Facilitation of administrative formalities relating to the creation,

  • peration, transmission or

extension of enterprises. Contribution to the reduction of the costs and deadlines relative to these formalities (creation within 24 hours).

INCENTIVE FRAMEWORK FOR INVESTMENT

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Industrial agriculture Livestock / Pisciculture Production of food crops Market gardening Agro industry / Agro business Real Estate, Construction, Construction Mechanical engineering / electronics / automotive industry Economic Infrastructure / Sport Infrastructure Pharmaceutical industry / Health Transportation / Mobility / Civil Aviation Ports / Logistics Technologies / ICT / Biotechnology / Telecommunications Tourism / Hospitality Professional training Health / Retail

Objective of the Government: Structural transformation of the Ivorian economy through industrialization

Primary sector Secondary sector Tertiary sector

INVESTMENT OPPORTUNITIES In Côte d’Ivoire: 2016-2020

The priority sectors: 2016 - 2020

Government objective: Structural transformation of the Ivorian economy through industrialization.

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Major Projects / Opportunities for Emerging Economy  Agricultural development; including rice, maize, vegetable crops, etc.  Processing and industrialization of agricultural products (cocoa, coffee, cashew nuts)  Development of production of animal and fish resources.  Construction of school, university and health facilities.  Construction of road infrastructures, creation and development of industrial and port areas.  Construction of hydroelectric dams.  Construction of commercial complexes.  Construction of hotel and tourist infrastructures

INVESTMENT OPPORTUNITIES

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  • Constantly improving business climate
  • A range of investment opportunities
  • CEPICI is willing to assist you in

achieving your investment projects in Côte d’Ivoire

  • www.cepici.gouv.ci

Côte d'Ivoire remains a country with :

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THANK YOU FOR YOUR ATTENTION

www.c .cepici.gouv.c .ci