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Cote d'Ivoire Infrastructure Report Q1 2010Published by: Business Monitor International Published: Jan. 18, 2010 - 52 Pages Table of Contents
AbstractBMI expects the Ivorian construction industry to expand by 15.81% in real terms in 2009 to reach a value of US$0.8bn. Although growth will slow somewhat in 2010 as a result of the global economic downturn, it will still remain strong. By 2014, BMI expects the sector to reach a value of US$1.67bn. Infrastructure will be a key driver of this expansion as the government attempts to repair the country’s transport network, which was badly damaged during the 2002-2003 Civil War and is hindering the full exploitation of Côte d’Ivoire’s cocoa resources. In addition, BMI believes that it is essential for the country to invest in energy infrastructure in order to avoid power outages. However, foreign investment will be necessary as political instability, endemic levels of corruption and a lack of a coherent legal framework are all factors discouraging the inward flow of capital. Despite this, capital investment should reach US$2.25bn in 2009, an increase of 4.1% year-on-year. After this, investment should pick up, reaching US$3.4bn by 2014.As feared, Côte d’Ivoire’s elections - paramount to a revival of investor confidence - have been delayed yet again. Robert Mambe, president of the electoral commission, broke the news in early November 2009 that an ill-prepared electoral list will force back the November 29 election date by at least two months. Current speculation pegs the elections around late February or early March 2010, although there is little certainty. Meanwhile, Côte d’Ivoire’s poor transport infrastructure, deteriorating road networks and an increasing number of checkpoints are also having a negative impact on foreign investment and are alienating ongoing operations. World Bank official Juan Gaviria highlighted the problem in November 2009, claiming that the cost of road freight in Sub-Saharan Africa is now on average 200% higher than in developed regions. Indeed, according to a recent study of 24 African nations, poor infrastructure is reducing GDP growth in the region’s economies by 2% per year, while it is also reducing business productivity by 40%. The undeveloped road network means that haulage costs are among the highest in the world, which is putting pressure on the margins and competitiveness of African businesses. Further problems can be witnessed in the energy sector. In December 2009, Côte d’Ivoire’s state-owned electricity company disclosed that the power shortfall in the country will continue until the economic climate is conducive for new investments to take place. The general secretary of the power utility, Mathias Kouassi, said that the country currently has a power capacity of just 860 megawatts (MW), although current demand is also a very low 876MW. According to the utility’s estimates, Côte d’Ivoire needs XOF250bn (US$560mn) worth of investments in infrastructure to increase the capacity of the electricity sector. Kouassi further noted that China is a likely partner for the government in tackling the power shortages; a partnership that would also include access to Côte d’Ivoire’s oil and gas sector. Get Full Details About This Report >> |
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