Ivory Coast Country Profile
Country Profile Contents
Country Overview 1
Clearing Systems 5
Foreign Exchange Controls 7
Taxation 8
Investment Opportunities 9
Trade Regulations 10
Citi Solutions and Services 11 Country Overview
Banking Holidays in Ivory Coast
Key Facts
Capital City
Yamoussoukro (political)
Abidjan (economic)
2013
New Year’s Day 1 January
Easter Monday 1 April
Population
21,952 million (2012)
Currency
Communaute Financiere Africaine
(CFA) francs
Labour Day 1 May
Ascension Day 9 May
Currency SWIFT Code
XOF
Whit Monday 20 May
Independence Day 7 August
Exchange Rate
513.1 (2012 est.)
Assumption Day 15 August
Aid-el-Fitr 8 August
GDP
$1,700 (2012 est.)
GDP Growth Rate
8.1% (2012 est.)
Korite Date to be specified
All Saints Day 1 November
National Peace Day 15 November
Exports
USD 10.99 billion (2012 est.)
Imports
USD 8.406 billion (2012 est.)
Cote d’Ivoire is heavily dependent on the agriculture sector, providing roughly 68% of the population with employment. The country is the world’s largest producer and exporter of cocoa beans and a significant producer and exporter of coffee and palm oil. As a result, the economy is highly sensitive to fluctuations in international prices for these products, and, to a lesser extent, in climatic conditions. Cocoa, oil, and coffee are Cote d’Ivoire’ stop export revenue earners, the country also produces gold. Since the end of the civil war in 2003,
Inflation Rate
1.4% (2012 est.)
Source: www.cia.gov and political turmoil has continued to damage the economy, resulting in the loss of foreign investment and slow economic growth. GDP grew by more than 2% in 2008, around 4% per year in 2009–2010 and decreased in 2011 by -5.8%. In 2011 the government should meet all of its future FCY obligations (Paris and London club) going forward, starting with the June payments. It should be noted that the government successfully restructured the missed instalments for the Paris Club (USD 460mn) over a 3 year period. They will only be able to come up with a firm proposal on how to expunge the arrears of the London club once they meet the completion point (Q2/Q3).
However they will be making a symbolic payment towards these arrears with the June payments.
Ivory Coast — Country Profile 1
Country Overview
Banking System
Banks in Ivory Coast
23 Banks are currently operating in Cote d’Ivoire (13 local and 10 foreign including regional banks):
23 banks in the market sharing around USD 400 mn total revenue per year (CIB and Consumer)
There are two major French Banks: Soc Gen, BNP Paribas (30% of the total market share)
There are two non-French international banks (Citibank and Standard Chartered Bank)
Five Government owned banks (BNI, Versus, BFA, CNCE and BHCI)
A Moroccan bank Attijariwafa which recently bought Credit Agricole’s subsidiary SIB
A Libyan regional bank named BSIC. Others are sub-regional banks or local banks
Nigerian banks entered the market in 2008 with UBA, Access Bank
Two banks which recently obtained their License and are operating: Diamond Bank,
BGFI (Gabonese Bank)
Pending agreement for 1 bank: GTB – Guarantee Trust Bank (Nigerian)
The payment system reform in the WAEMU member countries was initiated by the Central Bank of West African States (BCEAO) in a context characterised by the predominance of cash payments, high-cost transactions and legislation unsuited to payment system developments. Its aim is to modernise payment infrastructures in the eight WAEMU member States, which are: Benin, Burkina, Côte d’Ivoire, Guinea Bissau,
Mali, Niger, Senegal and Togo.
The major objectives of the new payment systems in the WAEMU countries can be summarised as follows:
Enhancing payment system efficiency and safety, by reducing transaction processing lags and cost, while respecting international standards and applicable basic principles
Minimising the use of cash in payments, by providing to economic agents modern payment instruments suited to their needs
Enhance the penetration and role of the financial sector by facilitating population access to banking and financial services and also economic and trade relations among economic actors
Consolidating the efficiency of control tools and of Central Bank monetary policy instruments, and promoting the development of the regional financial market
The reform is centred on the three following pillars:
Modernisation of the exchange and settlement system for large value payments with the establishment of a real-time gross settlement system for systemically important payments, particularly cash transfers, money market transactions, stock exchange transactions settlement, public debt payment, etc., known as
Automated Transfer and Settlement System within the WAEMU (STAR-UEMOA)
Modernisation of the exchange and settlement system for small-value transactions and mass payment:
Transfers, cheques, card by putting in place an automated multilateral clearing system known as
Automated Interbank Clearing System within the WAEMU (SICA-UEMOA)
Development of a regional interbank card-based payment system, to be set up by the banking system at the instigation of the West Africa Central Bank, BCEAO
These new payment systems are governed by a new legal framework and management principles consistent with international standards in terms of safety, payment lags, and risk management.
2Ivory Coast — Country Profile Country Overview
They are also based on a region-wide telecommunication infrastructure likely to provide high quality service with high debit and low cost.
Lastly, the Payment Incidents Centre was established by the BCEAO to serve as a tool for ensuring payment with the implementation of a new computer application.
This new mechanism should notably help restore public confidence in bank money.
BCEAO Governor’s instruction on the promotion of bank money instruments and the determination of payable interest in case of payment default defines the modalities under which the Regulation and directive are implemented. Furthermore, the gradual consolidation of the legal framework governing BCEAO payment systems was noticeably improved with the entry into force of the Instruction N°01/SP/2006 of 31 July 2006, on the issuance of electronic money and electronic money institutions.
This text aims at minimising risks relating to electronic money issuance and at protecting populations by favouring the development of new payment instruments likely to preserve financial stability in the Union.
The texts pertaining to the various agreements and contracts to govern, the operation of Automated Transfer and Settlement System within the WAEMU (STAR-UEMOA), the Automated Interbank Clearing System within the WAEMU (SICA-UEMOA) and the WAEMU Interbank Card Processing Centre (CTMI-UEMOA) also came into force.
Location of Financial Investment Centres
Financial investment centres are located in Abidjan.
Citi in Ivory Coast
Citi established a presence in Côte d’Ivoire (CDI) in 1976 with the opening of a branch in Abidjan. Despite the withdrawal of many foreign players in the 1990s, Citi continues to broaden its activities in corporate finance and capital markets offerings.
In 2011, CITI Cote d’Ivoire market share in terms of balance sheet amounted to 3%.
Citi in Cote d’Ivoire offers a broad range of products and services such as Cash Management, Trade Services and Treasury products such as Foreign Exchange, Derivative products, Corporate and Trade Finance.
The branch complements a 16-country presence across Africa, reinforcing Citi’s position as the pan-African
Bank of choice.
The branch is fully manned by 50 staff all located in the corporate branch in Abidjan, leveraging on support from more than 100 Citi branches worldwide to deliver superior products and services to our clients.
Head Office Address
Immeuble Botreau Roussel
28 Avenue Delafosse
01 BP 3698
Abidjan
Tel: 225 20 20 90 00
Fax: 225 20 21 76 85
Ivory Coast — Country Profile 3
Country Overview
Location of Branches
One Citibank International Plc branch located in Abidjan (address as above).
Services Offered to Citi Clients
Treasury
Cash Management
Liquidity Management
Loans
Trade Services
Corporate Finance
4Ivory Coast — Country Profile Clearing Systems
In the UEMOA region comprising of eight West African countries there is only one West Africa Central Bank,
BCEAO. All the banks in specific countries refer to its corresponding main branch that host clearing access points for all the banks. Clearing systems are also implemented uniformly across this region and governed by
BCEAO. The following are the main clearing system available in the region. STAR-UEMOA: “Système de
Transfert Automatisé et de Règlement dans l’UEMOA” – Real Time Gross Settlement (RTGS).
System of BCEAO. This is used for same day value transfers. The branch cut-off time for RTGS transactions is 14:00 hrs.
SICA-UEMOA: “System Interbancaire de Compensation Automatisée de l’UEMOA” – Automated Clearing
House of WAEMU – The branch cut-off time for SICA is 2:00 PM. There is also a limit of XOF 50 mn for transfers initiated through SICA. Clearing used to be decentralised, organised and supervised by the Central
Bank in several cities, distributed all over Cote D’Ivoire. But with the introduction of electronic clearing it has now been centralised in Abidjan. Therefore participants route data and scanned copies of instruments covered such as cheques, trade bills and VIB (local transfers) to the Automated Clearing House in Abidjan. Regional
LCY funds transfers are also available vide the RTGS within the WAEMU region.
Clearing Streams
Clearing Stream/
Payment Type Payment Type Payment Instruments
BCEAO Central Bank Paper
Cheques
Other paper based instruments
SICA Low Value
Domestic Funds Transfer (ACH, DFT, Wire)
Cross-border Funds Transfer
(BCEOA Central Bank)
Payroll, Standing Order
STAR – Banque Centrale High Value Electronic des Etats de I’Afrique des
I’Ouest (BCEAO)
Domestic Funds Transfer (ACH, DFT, Wire)
Cross-border Funds Transfer
RTGS (Real Time Gross Settlement)
Ivory Coast — Country Profile 5
Clearing Systems
Funds Availability Schedule
Funding Date Cut-off Time DR Date CR Date Date
Client Client Client Value
Electronic Transfers
Local Currency D4:00 PM GMT DNA D-1
NA DLocal Currency 4:00 PM GMT DD+1
NA Local Currency– DD2:00 PM GMT D-1
NA Local Currency – DD2:00 PM GMT D+1
Electronic Transfers
Other banks
Other Banks
Local Currency D2:00 PM GMT DDNA
Book-to-book
Local Currency 2:00 PM GMT DDNA D
Book-to-book
Foreign Currency 2:00 PM GMT DAvailability of NA D-1
Transfers Currency
NA DForeign Currency 2:00 PM GMT DD+1
Transfers
Cheque Deposit 2:00 PM GMT DDNA D-1
Cheque Deposit 2:00 PM GMT DDD+2 NA
NA Cheque Deposit D2:00 PM GMT DD-1
(Citi Cheque)
(Citi Cheque)
Cheque Deposit 2:00 PM GMT DNA DD
6Ivory Coast — Country Profile Foreign Exchange Controls
In 1998, within the framework of the implementation of the sub region integration, the West African
Council of Ministers of the Economic and monetary Union (WAEMU or UEMOA) adopted a new regulation in exchange
This new frame, fixed by the regulation N R09 R09/98/CM/UEMOA 98 R09/98/CM/UEMOA
R09/98/CM/UEMOA R09/98/CM/UEMOA of 20 December 1998, translates the efforts of liberalisation of financial transactions with the foreign countries
The major innovation of the new instrument is in the freedom granted to approve intermediaries to execute usual transfers without referring beforehand to the Administration. However, this freedom of action is accompanied by an obligation to provide appropriate documentation related to the transactions, in line with the needs of control at “posteriori”, by the competent services of the Treasury and the Central Bank
A book edited by the Ministry of Finances and Foreign Exchanges, indicates for every type of operation, the modalities of execution of this control and the list of the required documents
Ivory Coast — Country Profile 7
Taxation
Tax in Ivory Coast is strictly regulated by clear rules set by the Tax Office through an official document:
“Code General des Impots – CGI”.
The latest version, dated September 2007, takes into account, all the texts concerning the tax system of the various regional economic sets to which Ivory Coast belongs.
Several types of tax are set by the regulator:
Income Tax
Represents 25% of the company’s income.
Withholding Tax
Mainly collected straight on invoices payable to vendor located abroad.
This tax represents 20% of the amount to be paid to a vendor located outside of the WAMU Zone, except
France and United Kingdom where the rate is 10%.
Other Taxes (List non-exhaustive)
Value Added Tax (VAT) representing 18% of the value of the goods or services
Tax on Bank Operation (TOB) representing 10% of the bank charges
Tax On Transfer out of WAEMU Zone (TTHU) representing 0.6% of amount transferred out of WAEMU zone
8Ivory Coast — Country Profile Investment Opportunities
Commercial Paper
Commercial Paper, also known as Promissory Notes, is an unconditional order to pay a fixed amount on the due date. The paper stands solely on its credit rating and investors will use the credit rating in the investment choice. CP is issued by credit worthy corporations. This instrument is handled by the Central Bank, knowing that a CP can be issued from seven days to 24 months.
Negotiable Certificates of Deposits
A promissory note issued by banks and finance companies is known as a Negotiable Certificate of Deposit (NCD).
Term Deposits
Term deposits are cash dealt to a fixed maturity date, with interest generally paid at maturity.
Stock Market
The West Africa stock market is called, Bourse Regionale desValeurs Mobilieres (BRVM). The Regional Stock exchange is an electronic stock exchange for eight West Africa countries. Its Head Office is in Abidjan – Côte d’Ivoire and it started its activities on 16 September 1998, including activity related to the Central Securities
Depository. Since its creation, the BRVM has recorded 40 listed companies including 34 from Ivory Coast.
Web site:
Instruments Traded
Equities
Interest rate securities
Ivory Coast — Country Profile 9
Trade Regulations
Regulation of the Imports of Goods
The payment to foreign countries for the imports of goods has to be executed through approved intermediate banks.
All imports of goods from countries outside of Zone franc are subjected to domiciliation with an approved intermediate bank, with the exception:
Of imports with a value lower than or equal to XOF 5 mn
Of imports without payment which are however subjected to the visa prerequisite of the Ministry of Finance
Of imports of a particular nature enumerated to Appendix V of the present regulation
The Customs office will make sure of the concordance of the indications mentioned in the administrative document of import and on the invoice, in particular as regards to the nature, quantity, value, and the country of origin of the imported goods. Then it will carry in the frame which is reserved for that purpose:
The number of the customs declaration
The type of statement
The date of customs clearance
The stamp of the Office and the signature of an authorised agent
Any payment for import of goods, taken up residence or not, must be made through an approved intermediary with an accompanying “Authorisation of Exchange” form, subjected by delegation to the visa of the intermediary in charge of Payment.
Exports Bound for the Foreign Country and Repatriation of the Product of their
Export Proceeds
The resident economic operators are anxious to collect and to repatriate in the Country of origin, with the bank paying agent, the completeness of the resulting sums.
If the payment takes place in XOF, it cannot be made by means of bank notes, by the debit of a bank account or a direct deposit account opened in the country, unless it is a foreign account in francs.
The date of playability of the payment is the one planned to the commercial contract. There is a maximum payment deadline of 120 days after the shipping date of the goods.
The paying bank has to ensure the effective repatriation of export proceeds through the Central Bank.
The sale of currencies by the exporters to approved intermediaries other than the paying bank, can be authorised by instruction of the Central Bank.
Exports to foreign countries exceeding XOF 5 mn are subjected to domiciliation with one approved intermediary.
However, this arrangement does not apply for:
Exports against repayment made through the administration of the post offices
Exports of particular character enumerated to Appendix VI of the present Regulation
Exports without payment
10 Ivory Coast — Country Profile Citi Solutions and Services
Account Services
Resident Current Accounts
On-shore accounts are permitted in local currency without any material restrictions. Foreign currency accounts are also allowed but are subject to regulations and approvals.
Off-shore Accounts are permitted; those in foreign currency are subject to approval by the ministry of finance.
Resident Savings Accounts
Cheque books are not allowed for saving accounts.
Non-resident Current Accounts
On-shore Non-Resident accounts are permitted in both local currency and foreign currency. Foreign currency accounts are subject to straightforward regulations and approvals.
Off-shore Non-Resident accounts are permitted in local currency only, and subject to straightforward rules and regulations.
Foreign Currency Accounts
The opening of foreign accounts in currencies for the benefit of non-residents is subject to prior authorisation of the Central Bank (BCEAO).
Currency Convertibility
Local Currency is freely convertible domestically only.
All transfers out with amounts greater than equivalent of XOF 300,000 are subject to authorisation of Ministry of Finance. Documents that justify the transfer will need to be provided.
Interest Overdrafts
On-shore operating accounts in local or foreign currency are interest-bearing. There are no credit interest rates on current accounts. There are a few exceptions based on fixed interest depending on balances.
Overdrafts are available for on-shore accounts in both local and foreign currency with no material restrictions.
Accounts Availability
Current
On-shore Off-shore Savings
XOF FCY XOF FCY XOF FCY
Res YXYY* No Distinction
Non-Res -No Distinction YY* Y
Ivory Coast — Country Profile 11
Citi Solutions and Services
Interest Capabilities – On-shore Accounts Only
Balances Overdraft
XOF FCY XOF FCY
Res YYYY
Non-Res YYYY
Legend
Y – Offered by Citi
X – Regulation disallows
* – Conditions apply
Remittance of Dividends and Profits
Dividend distribution abroad is subject to the Ministry of Foreign Exchange approval as long as the amounts to be distributed exceed XOF 500 mn. A special documentation has to be submitted, which includes the receipt of the tax paid, financial statement and the minutes of the board meeting that include the amount of the dividend.
Repatriation of Capital
There is no repatriation of capital topic covered under the local regulation.
However requirements pertaining to reduction of the capital are clearly set and state the following:
The share capital can be reduced, in the conditions planned by the present uniform Act, by the repayment to the partners of a portion of their contributions or by imputation of the losses of the company.
When the present uniform Act authorises the reduction of the capital, by repayment to the partners of a portion of their contributions, this can be made, either by repayment in cash, or by allocation of assets.
12 Ivory Coast — Country Profile Citi Solutions and Services
Payments
Citi offers clients payment solutions designed for both local and overseas payments. Clients use CitiDirect
Online Banking and CitiConnect for Files for payments and can select any combination of services needed to meet both domestic and international payment needs.
Multibank Transaction Initiation (MBTI)
MBTI enables the concentration of funds into Citi accounts from third party local banks. By using
CitiDirect, clients are able to instruct their local banks to move excess funds to Citi, either for investment purposes or to fund shortfalls. This also achieves the up-streaming required in an overlay structure for a regionalised or centralised treasury. The account statements and balances, upon which client instructions are based, are provided by Data Aggregation.
Instructions are sent to the local bank across the SWIFT network on behalf of the client. Citi utilises message types MT101 for this purpose. The benefit of the dual capability of Data Aggregation and MBTI is that, once established, customers are able to utilise a single banking platform, CitiDirect, to control concentration, investments, and funding.
Domestic Transfers
Citi Abidjan can provide clients with current accounts and access to CitiDirect electronic banking to allow simple initiation of domestic payments, in XOF and other major currencies as required. Clients can initiate payments to beneficiaries who hold their accounts with other banks in Ivory Coast, or make ‘Book-to-book’ payments to beneficiaries who also hold their accounts with Citi Abidjan.