After Nigeria, Côte d'Ivoire exceeds Angola in wealth per capita

By Ilyes Zouari, president of CERMF (Center for Study and Reflection on the French -speaking world).

After recently exceeded Nigeria, the first African oil producer of oil, Côte d'Ivoire has just achieved the feat of overtaking in wealth per inhabitant Angola, the second continental oil producer, with a production approximately thirty times, and secondAfrican diamond producer.This performance is the result of the many reforms achieved in the past decade, as well as an active diversification policy.

According to data recently published by the World Bank, Côte d'Ivoire displayed a per capita GDP of $ 2,326 in early 2021, now exceeding Angola whose wealth per capita, down for a few years, was set to 1896 dollars.In addition, Côte d'Ivoire continues to widen the gap with Nigeria ($ 2,097) or even with Kenya ($ 1,838).

Une grande performance due à une croissance record

This evolution constitutes a real feat for Côte d'Ivoire, whose extractive activities (hydrocarbons and mining industries) are still quite modest, in particular compared to Angola.This country, with the comparable population (33 million inhabitants against 27 million for Côte d'Ivoire), is indeed the second African producer of diamonds, after Botswana (and the fourth world), as well as the second producer ofoil with production that is still located, and despite a regular drop in recent years, to around 1.2 million barrels per day, against approximately 35 thousand for Côte d'Ivoire.A low Ivorian production which is also very far behind that of Nigeria (nearly 2 million barrels/day, about 50 times more), which it had also and recently exceeded, and which should also, just like Angola,Be soon preceded by Senegal and Cameroon, which often display growth rates two or three times higher.

The significant increase in Côte d'Ivoire results from the very strong growth that the country has experienced for several years.Over the period of nine years ranging from 2012 to 2020, a period long enough to be able to establish international comparisons, Côte d'Ivoire has achieved the strongest growth in the world in the category of countries with GDP per capita greater than or equal to 1000 dollars, with an annual growth of 7.4 % on average.Even more impressive, it ranks second in all categories, very poor countries included, doing better than 30 of the 31 countries in the world which had a GDP per capita less than 1,000 dollars in early 2012.Côte d'Ivoire is then only exceeded by Ethiopia, which experienced annual growth of 8.9 % on average.A performance that results mainly from the very low development level of this Eastern African country, which was the second poorest country in the world in early 2012, and which remains one of the poorest with a per capita GDP936 dollars in early 2021 (at the start of the current civil war).

For its part, and over this same period of nine years, Angola recorded growth of only 0.9 % on an annual average, while Nigeria posted an annual increase of 2.3 %.Likewise, it should be noted that Ivorian growth has also been much higher than that of South Africa, a mining giant on the continent (first African producer of coal, iron, manganese or nickel, second producer ofHowever ...), and whose average annual increase in GDP was established only 0.4 % over the period.

In addition, it should be noted that Côte d'Ivoire has recently become the first African country in history (and the only one still today) with a globally modest production in non -renewable raw materials, at least until'Now, to go beyond a country of Hispanic America in wealth, namely Nicaragua whose GDP per capita reached 1,905 dollars in early 2021 (excluding very small African countries of less than 1.5 million inhabitants, mainly island).Côte d'Ivoire is on the verge of also ahead of Honduras, whose GDP per capita was at 2,406 dollars.

In another register, it should be noted that the economic performance of Côte d'Ivoire was accompanied by a debt control, with a level of public debt which was only 45.7 % of GDP2021, according to the IMF, against no less than 127.1 % for Angola, the fourth most indebted country in Africa despite its enormous riches.The level of debt of Côte d'Ivoire also remains much lower than that of countries like South Africa (77.1 %), Ghana (78.0 %) or Kenya (68.7 %).

Finally, the strong growth of the Ivorian economy was also accompanied by good inflation control, which was only 0.8 % on an annual average over the 2012-2019 period (8 years),against no less than 16.3 % and 11.6 % for Angola and Nigeria, respectively.Two countries whose most fragile populations have been greatly penalized by the sharp increase in the price of basic products.The serious economic difficulties of Angola and Nigeria have notably resulted in a significant depreciation of their national currency, which have lost approximately 85 % and 60 % of their value respectively against the dollar since 2014 (and, since its creation, more99 % of its value for Nigerian currency).A situation which in particular results in a strong dollarization of the economy of these two countries, that is to say a broad use of the dollar for economic transactions to the detriment of the national currency, considered to be risky.

Réformes et diversification active

The results of Côte d'Ivoire are explained by the deep reforms made by the country in order to improve the business climate and to attract investors, as well as by a policy of diversification of income sources and major works of'infrastructure.

Following numerous administrative, legal and fiscal reforms, Côte d'Ivoire has succeeded in establishing a framework conducive to local entrepreneurship and foreign investments.The country has thus made a considerable leap in the international classification relating to the business climate, published each year by the World Bank, from 167th place in 2012 to the 110th for the year 2020.Even if it remains less well classified than countries like Morocco (53rd) or South Africa (84th), Côte d'Ivoire is now largely better than Nigeria (131st), Angola (177th) orStill Ethiopia (classified 159th, before the start of the civil war).By the way, it should be recalled that control of inflation, an element having a certain impact on the business environment, is unfortunately not taken into account in the development of the World Bank's annual classification, which n'is not to the advantage of Côte d'Ivoire where inflation is much lower than in the countries previously cited.

These reforms were accompanied by the carrying out of major works across the country (roads, bridges, public transport - such as the future Abidjan tram, power plants, telecommunications networks, social housing, etc.), as well as an active policydiversification of sources of income, based in particular on the development of the agricultural sector, processing industries, or even electricity production.Already the leading world producer of cocoa for a long time, Côte d'Ivoire has also risen in the last decade in the first world in the world for the production of cashew nuts, and in the leading African (and fourth world) for theNatural rubber, of which it now provides almost 80 % of continental production, following a quintuplement of national production.The country is also the second African producer of palm oil (behind Nigeria), and has recently become the second continental cotton producer (after Benin).In addition, the country has a fairly large fishery sector, being in particular the first African tuna producer.

In addition to the rise in agricultural production, the country has also paid particular attention to the local transformation of production, a source of much greater added value for the country, which it also contributes to industrialization.Thus, and thanks to the multiplication of processing plants, encouraged by a framework conducive to investment, Côte d'Ivoire now transforms locally (all stages of transformation combined) two thirds of its production of natural rubber andtuna, almost a quarter of its cocoa production and approximately 12 % its production of cashews.The country also aims to further increase these levels of local transformation, and in particular in cocoa and cashews, for which it hopes to reach a 50 % level by 2025.Very recently, last June, the largest of the country's cashew processing factories has just come into production.A factory which is distinguished as being the most modern in the world in its field, with an automation rate of more than 90 %, and which should even become the largest processing plant in the world after the construction of a valuation unitCocks for electricity production.

Electricity production is also one of the areas in which the country has invested strongly in the last decade, with the result of a two -thirds increase in national production (matching on the one hand for renewable energies:Solar, biomass, hydroelectricity, etc.).Now having the third largest electricity production system on the continent, according to the World Bank, the country has even become one of the main exporters in this area on a continental scale, transporting approximately 11 % of its production to six African countrieswest.At the national level, the coverage rate increased from 33 % of Ivorian localities in early 2012 to more than 75 % today, thus covering more than 90 % of the population (even if a minority part of the population of these localities does not benefitnot yet electricity at home).

The electrification of the country is indeed an element of great importance for the success of any policy of economic and social development.In addition to the activities previously mentioned, it is also crucial for the development of the new technologies sector, or even for the establishment of an extended and efficient school network across the country, also two areas in strong progression.For example, the first computer and mobile phone (intelligent) assembled locally were presented to the media last June, which is a fairly rare case in sub -Saharan Africa.As for education, the last five years have seen the opening of as many classes across the country as during the previous twenty years.An acceleration which is explained, in particular, by the schooling made compulsory from the start of the 2015 school year for children aged 6 to 16.

Thanks to the diversification of income sources, activities directly linked to extractive industries (hydrocarbons and mineral industries), and despite the increase in their production in recent years, today only represent 30 % of exports of exportsproperty of the country, whose economy is thus more robust and resilient in the face of international crises than those of Angola, Nigeria or South Africa.Indeed, these activities weigh for approximately 98 % of Angolan goods exports and 93 % of those in Nigeria, or for almost 60 % of South African exports.In other words, activities not directly linked to extractive industries represent approximately 70 % of Ivorian exports of goods, whereas they are at the origin of approximately 40 % of exports from South Africa, andabout 7 % and 2 % only of those in Nigeria and Angola, respectively.Thanks to its greatest solidity, the Ivorian economy thus recorded economic growth of 6.4 % on average over the period of six years 2015-2020, marked in particular by the considerable drop-and probably durable-of the price of hydrocarbons,While Nigeria, Angola and South Africa posted rates of 0.7 % respectively, -1.6 % and -0.5 % (the negative growth of the latter two also explained by the'exhaustion of certain deposits).

Furthermore, it should be noted that the diversification of the Ivorian economy is also accompanied by a diversification of the country's economic partners, of which China is now the first trading partner with a share of 9.4 % of foreign tradein 2019 (ahead of France, second, with a share of 8.1 %).The Chinese presence manifests itself especially in terms of imports of the country, of which it provided 17.2 % of needs that same year, ahead of Nigeria (13.5 %, mainly hydrocarbons), and far ahead of France, which arrives third(10.7 %).However, China remains a very modest customer of Côte d'Ivoire, of which it absorbed only 2.9 % of exports in 2019, thus ranking 14th position, far behind the Netherlands which are placed in firstposition, before the United States and France.

Finally, the diversification of the Ivorian economy should also be strengthened with the expected development of the tourism sector, still embryonic.Indeed, and unlike the French -speaking countries that are Morocco and Tunisia, two of the flagship destinations of tourism on the continent, Côte d'Ivoire and more generally sub -Saharan Africa have largely and lengthly abandoned this sector with high potential,Thus making almost ignore the rest of the world the existence of a fauna, a flora and landscapes exceptional and comparable to what can be observed in certain English -speaking countries of the continent.A very regrettable situation for a country that does not lack assets in this area, in particular thanks to its beaches, its national parks or its Notre-Dame de la Paix de la Paix in Yamoussoukro (the largest Christian building in the world, quasi-Replica of the Saint-Pierre Basilica of Rome, and the very existence of which is ignored by almost all Christians in the North countries, including in France ...).Opportunity to recall, in passing, that Côte d'Ivoire is a much larger country than the majority of geographic cards in circulation indicates (including in Africa), being slightly more extensive than Italy and a third partyVast that the United Kingdom, not two or three smaller ... Cards which generally draw up a terribly distorted representation of the continents, considerably reducing the size of the southern countries.This also leads to recall that Côte d'Ivoire remains fairly weakly populated, since it should count no less than 89 million and 64 million inhabitants, respectively, if it was proportionally as populated as the United Kingdom and theItaly.

Côte d'Ivoire can therefore congratulate itself to have managed to reach this level of economic development, and to be today the most dynamic economy of the continent taking into account both its levels of growth and wealthcurrent (the realization of high growth rates by countries ranking among the poorest, such as Ethiopia or Rwanda, not being an exceptional thing), before becoming an important producer of oil.Indeed, and following the recent discovery of a major deposit off its coast, the country should soon be one of the main oil producers in sub -Saharan Africa, with a level of production comparable to those, current, Ghana andGabon.But in order to be really profitable for it, this new and important manna that is promising should not hamper the continuation of reforms and the efforts to diversify the country's economy, which will notably have to be inspired by the northern oil countries (Norway, United Kingdom, Canada, United States) which have always been able to develop the various sections of the economy, in the name of their national independence, while reaching a high level in terms of good governance and the fight against corruption andembezzlement.