VZCZCXRO0772
RR RUEHMA RUEHPA
DE RUEHAB #0014/01 0051639
ZNR UUUUU ZZH
R 051639Z JAN 07
FM AMEMBASSY ABIDJAN
TO RUEATRS/DEPT OF TREASURY WASHDC
RUCPCIM/CIMS NTDB WASHDC
RUCPDOC/USDOC WASHDC
RUEHC/SECSTATE WASHDC 2402
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 08 ABIDJAN 000014 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/IFD/OIA 
 
E.O. 12958: N/A 
TAGS: OPIC USTR KTDB ECON ETRD
SUBJECT: COTE D'IVOIRE 2007 INVESTMENT CLIMATE STATEMENT 
 
¶1.  Summary:  Cote d,Ivoire,s economy is projected to 
increase by 2 percent in 2007, slightly higher than 1.8 
percent in 2006.  The main contributors of the growth are 
higher export earnings from oil and refined products, cocoa 
revenues and proceeds from the telecommunications sector. 
Despite these growth prospects, the environment for business 
and investment in Cote d,Ivoire is still hampered by the 
lack of progress in the peace process. In November 2004, the 
World Bank declared CI in non-accrual status, and halted its 
few remaining projects in country; until the arrears with the 
Bank are cleared, all World Bank and IMF projects will remain 
frozen, including vital support for the implementation of the 
Disarmament, Demobilization and Reinsertion (DDR) program 
associated with the peace process. The GOCI has also fallen 
behind in paying premiums to the police and military and 
recurring administrative expenses. However, thus far, thanks 
to a steady world price for its main export crop, cocoa, and 
earnings from oil exploration leases, the government has 
managed to pay basic salaries each month and basic operating 
expenses.  To support business recovery, the GOCI has 
introduced new fiscal measures including the reduction of 
corporate income tax and tax exemptions for companies that 
left the country as a result of the crisis.  The government 
has also made institutional changes in the public bidding 
process.  Nonetheless, the steps towards an enabling business 
environment in Cote d,Ivoire are interlinked with the peace 
process momentum, which encompasses DDR, the civil 
identification process and the return of the civil 
administration that are key to the holding of elections. 
 
¶2.  OPENNESS TO FOREIGN INVESTMENT:  Despite the ongoing 
political/economic crisis, the Ivoirian government actively 
encourages foreign investment through mergers, acquisitions, 
joint ventures, takeovers, or startups. There are no 
significant limits on foreign investment nor are there 
generally differences in treatment of foreign and national 
investors, either in terms of the level of foreign ownership 
or sector of investment. The government does not screen 
investments and has no overall economic and industrial 
strategy that discriminates against foreign-owned firms. The 
investment code was designed to boost private sector 
investment and increase national production. The code 
includes incentives, such as tax breaks, for larger 
investments and for investments outside of Abidjan and other 
urban industrial areas. There is also a Petroleum Investment 
Code and a Mining Investment Code, which were revised to 
encourage foreign investment in these sectors by making 
investments in them eligible for exemption from income tax 
and other taxes, and exemption from the value added tax on 
equipment, materials and the first consignment of spare 
parts, except when there are equivalent products either made 
in Cote d'Ivoire or available in country at similar cost. 
 
¶3.  As part of the 2006 new tax schedule, the GOCI 
introduced, on August 26, 2006, fiscal measures to reduce 
company tax burden and stimulate economic activity. These 
measures include:  The reduction of the corporate income tax 
from 35 to 27 percent, effective December 31, 2006, and the 
awarding of three-year corporate income tax exemption and 
free tax registration for the relocation of companies that 
left the country as a result of the crisis.  Cote d'Ivoire 
has an investment promotion center called CEPICI, (Centre des 
Promotion des Investissesments en Cote d,Ivoire located at 
www.cepci.net), which provides investment information and 
assistance for entrepreneurs interested in starting a 
business or foreign enterprises interested in investing in 
Cote d'Ivoire. CEPICI provides a "one-stop-shop" for 
investors, an outreach program to match opportunities with 
potential investors, and a public-private liaison program. 
CEPICI also maintains a file of projects seeking foreign 
investment. 
 
¶4.  Foreign companies are free to invest and list on the 
regional stock exchange (BRVM), which is based in Abidjan and 
is dominated by Ivoirian and French companies. With the 
inception of the regional exchange, the West African Economic 
and Monetary Union (WAEMU) members established the Regional 
Council for Savings and Investment, a regional securities 
regulatory body.  In past privatizations, such as for 
management of the Port of Abidjan and for management of the 
electric and water companies, well-entrenched French 
companies won, which led to allegations of corruption on the 
part of losing investors. Bids are not always made public, 
the government sometimes simply chooses from among companies 
that have proactively contacted it about an investment 
opportunity rather than proceeding through a public bid 
process. 
 
 
ABIDJAN 00000014  002 OF 008 
 
 
¶5.  The government does not use tax, labor, environment, or 
health and safety laws to impede or distort investment. 
Well-entrenched companies historically have formed 
relationships with GOCI officials, which frequently influence 
the awarding of tenders. There is no sector where American 
investors have been formally refused the same treatment as 
other foreign investors. There are some limitations on 
foreign investment worth noting. As a means to monitor 
foreign exchange flows, for example, the external finance and 
credit office of the Finance Ministry must approve 
investments from outside the West African Franc (FCFA) zone. 
Despite regulations designed to control land speculation, in 
urban areas, foreigners own significant amounts of land in 
Cote d'Ivoire. Free-hold tenure outside of urban areas, 
despite land reform, is difficult and most businesses opt for 
long-term leases. 
 
¶6.  There are sizable U.S. investments in offshore gas and 
oil exploration and production, petroleum product 
distribution, cocoa and coffee processing and shipping, and 
banking. The petroleum sector will continue to grow in 2007. 
There is a need for oil-servicing companies, oil exploration 
equipment and for experienced ex-patriot engineers and rig 
managers.  The oil and gas sector has particularly grown, 
supported by the development of new oil fields, a rising 
production and higher oil prices. Oil has become Cote 
d,Ivoire,s leading export product ranking cocoa at the 
second place.  Another area of commercial success is cellular 
phone service, which has seen the entry of a third mobile 
operator and a fourth is due to start operation soon; each 
company is largely financed by foreign capital. 
 
¶7.  The cocoa sector still remains significant to the 
economy.  It contributes up to 40 percent of export revenues 
and 20 percent of government fiscal revenues. Because of this 
sector's critical importance to the Ivoirian economy, the 
government has expressed concern that foreign companies not 
dominate it. Although the government has liberalized the 
market, it limits the amount of cocoa that large foreign 
exporters can purchase and process to approximately 23% of 
the total harvest. The Ivoirian government has also 
established several private and public control agencies to 
regulate the industry. After two years of disruptive strikes, 
in the fall of 2004, the Ivoirian President established a 
"Blue Ribbon Commission" to review the coffee and cocoa 
sectors and recommend accelerated reforms. The commission's 
report, which was provided in May 2005, has not yet been made 
public. The World Bank and IMF have focused on the cocoa 
sector as a key economic bellweather and will likely insist 
that the Ivoirian government commit to a package of specific 
reforms in this sector if these institutions restart programs 
in Cote d'Ivoire. 
 
¶8.  CONVERSION AND TRANSFER POLICIES:  Cote d'Ivoire is a 
member of the West African Economic and Monetary Union 
(WAEMU), which uses the Franc CFA (FCFA), a convertible 
currency. The French Central Bank continues to hold the 
international reserves of WAMEU member states and maintains a 
fixed rate of 655.956 CFA to the Euro. The WAEMU has unified 
foreign exchange regulations. Under these regulations, there 
are no restrictions for transfers within the community and 
designated commercial banks are able to approve routine 
foreign exchange transactions inside the community. The 
transfer abroad of the proceeds of liquidation of foreign 
direct investments no longer requires prior government 
approval.  Despite the ability to freely transfer funds 
within the WAEMU zone, when Ivoirians and expatriate 
residents are traveling from Cote d'Ivoire to another WAEMU 
country, they must declare the amount of currency being 
carried out of the country. When traveling from Cote d'Ivoire 
to a destination other than another WAEMU country, Ivoirians 
and expatriate residents are prohibited from carrying an 
amount of currency greater than equivalent of two million CFA 
francs (approximately $4,000). Larger amounts of require the 
approval of the Ministry of Finance, and must be in travelers 
or bank checks. 
 
¶9.  The Government must grant prior permission for 
investments coming into the WAEMU zone from outside and 
routinely does so. Once an investment is established and 
documented, the Government regularly approves remittances of 
dividends and/or repatriation of capital. The same holds true 
for requests for other sorts of transactions -- e.g., 
imports, licenses, and royalty fees. Multi-national firms in 
Cote d,Ivoire have complained that temporary liquidity 
shortfalls sometimes occur in the banking system. These 
problems are particularly of concern during the main cocoa 
harvest when companies are trying to transfer large sums of 
 
ABIDJAN 00000014  003 OF 008 
 
 
money in and out as cocoa is purchased and exported. 
Companies continue to complain that the Government is slow in 
approving currency conversions. 
 
¶10.  EXPROPRIATION AND COMPENSATION:  Cote d'Ivoire's public 
expropriation law includes compensation provisions similar to 
those in the United States. Historically, expropriation has 
not been an issue in Cote d'Ivoire and the Embassy is not 
aware of any cases of government expropriation of private 
property.  Private expropriation as a means to force 
settlement of contractual or investment disputes has 
continued to be a problem, particularly for American 
investors in recent years. Investors should be aware that 
local individuals or local companies using what appear to be 
spurious court decisions have challenged the ownership of 
some foreign companies in recent years. On occasion the 
Government has blocked the bank accounts of U.S. and other 
foreign companies because of ownership and tax disputes. 
Corruption in the judicial system and security services has 
resulted in poor enforcement of private property rights, 
particularly when the expropriated entity is foreign held and 
the expropriator is Ivoirian or is a long-term French or 
Lebanese resident. 
 
¶11.  DISPUTE SETTLEMENT:  The judicial system is 
dysfunctional and in need of reform. Enforcement of contract 
rights is often time-consuming and expensive as court cases 
move slowly. Judges sometimes fail to base their decisions on 
the legal or contractual merits of the case and tend to rule 
against foreign investors in favor of entrenched interests. 
In addition, cases are often endlessly postponed and appealed 
again and again, moving from court to court, in some cases 
for decades. It is widely believed that magistrates are 
sometimes subject to political or financial influence. Some 
investors stipulate in contracts that disputes must be 
settled in the international commercial arbitration court in 
Paris or the Hague. However, even if stipulated in the 
contract, international or regional arbitration decisions are 
sometimes not honored by local courts. 
 
¶12.  Given that the average time from filing to resolution of 
a contract dispute is eight years, in 1999, the Government 
established an arbitration tribunal for businesses to settle 
commercial disputes without going to court. The arbitration 
court is supposed to provide alternative modes of conflict 
resolution including arbitration, conciliation, mediation and 
expertise.  In July 2004, the business community welcomed 
revision of the Board to include participation of local 
chambers of commerce. The business community was also pleased 
at the Board,s ability to more quickly enforce awards. 
However, use of the Board, in lieu of the court system has 
been limited: in the past six years, the Arbitration Board 
has heard only 55 cases (10 in 2006). In adition to its 
local arbitration board, Cote d'Ivire is a member of the 
International Center for he Settlement of Investment 
Disputes. There is alo the Abidjan-based Joint Court of 
Justice and Abitration as an alternative means of solving 
conractual disputes. 
¶13.  There is political consenus on the need to reform the 
judicial system. Hoever, in 2006, the Ivoirian government 
remained peoccupied with the ongoing political crisis and 
any other legislative initiatives, including judical 
reform, remained on the back burner. Reform eforts are 
likely to continue to languish until ater the next 
presidential elections, currently scheduled to take place by 
October 2007. Under the pending reform plans, the GOCI would 
dismantle the Supreme Court, and divide its authority among 
several independent institution. The current Judicial 
Chamber of the Supreme Court would become the High Appeals 
Court (Cour de Cssation). It would handle civil, penal, 
social, nd labor cases when it deems that a lower court di 
not adequately apply the law. The current Adminstrative 
Chamber of the Supreme Court would become the Council of 
State (Conseil d'Etat), which would hear cases involving the 
State or public authorities or cases against the Government. 
The current Account Chamber of the Supreme Court will become 
a separate and independent Account Court (Cour de Comptes), 
examining the accounts of the State and of local government, 
and hearing financial cases. 
 
¶14.  Further reform plans call for deciding more cases by 
three-judge panels, instead of by a single judge; publishing 
decisions more quickly; enhancing computerization in the 
court system; training judges in commercial law; and 
increasing the number of appeals courts to reduce the backlog 
of commercial cases.  Cote d'Ivoire has both commercial and 
bankruptcy laws that address liquidation of business 
liabilities. The Uniform Acts for the Organization and 
 
ABIDJAN 00000014  004 OF 008 
 
 
Harmonization of Business Law (OHADA) is a collection of 
uniform laws on bankruptcy, debt collections, and the rules 
governing business transactions. The OHADA permits three 
different types of bankruptcy liquidation: an ordered 
suspension of payment to permit a negotiated settlement, an 
ordered suspension of payment to permit restructuring of the 
company, similar to Chapter 11, and the complete liquidation 
of assets, similar to Chapter 7. Creditors' rights, 
irrespective of nationality, are protected equally by the 
Act. Monetary judgments devolving from a bankruptcy are 
usually paid out in local currency. 
 
¶15.  PERFORMANCE REQUIREMENTS AND INCENTIVES:  Cote d'Ivoire 
does not maintain any regulations inconsistent with WTO 
Trade-Related Investment Measures (TRIMS). There are no 
general performance requirements applied to investments, nor 
does the Government or the investment authority generally 
place conditions on location, local content, equity 
ownership, import substitution, export requirements, host 
country employment, technology transfer, or local financing. 
Cellular telephone operating companies must meet technology 
and performance requirements to maintain their licenses. The 
Investment Code, the Petroleum Code, and the Mining Code 
define the incentives available to new investors in Cote 
d'Ivoire (see section A.1. above). 
 
¶16.  RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT:  Foreign 
investors generally have access to all forms of remunerative 
activity on terms equal to the terms enjoyed by Ivoirians. 
The government encourages foreign investment in the 
privatization of state-owned and parastatal firms, though in 
most cases the state reserves an equity stake in the new 
company.  Under its previous IMF Poverty Reduction and Growth 
Facility, the government committed to privatizing 30 
parastatal enterprises by the end of 2003. While some 
privatizations occurred, the government has yet to sell the 
majority of its shares in a major local bank, a cotton 
company, and sugar company, and its remaining shares in the 
telecommunications company. Plans to complete these 
privatizations are likely to remain on hold until after the 
2006 elections.  In January 2005, the Council of Ministers 
approved measures to liberalize the telecommunications 
sector, which had been postponed since February 2004. The 
legislation remains blocked in the National Assembly, 
however, and it is unlikely to be passed into law before the 
end of 2006. For the time being, the Ivoirian regulatory 
agency continues to function under the authority granted to 
it by the 1995 telecommunications code. The new rules will 
end France Telecom's fixed-line monopoly through its 
subsidiary, Cote d'Ivoire Telecom. A new regulatory agency 
would also be created to manage the fully competitive market. 
 
¶17.  Banks and insurance companies are subject to licensing 
requirements, but there are no restrictions aimed at limiting 
foreign ownership or the establishment of subsidiaries of 
foreign companies in this sector. There are no restrictions 
on foreign investment in computer services, or education and 
training services. However, there are restrictions on foreign 
investment in the health sector, law and accounting firms, 
and travel agencies. Investments in these sectors are subject 
to prior approval, require association with an Ivoirian 
partner (s), and appropriate licenses. Foreign companies 
operate successfully in all these service sectors. 
 
¶18.  PROTECTION OF PROPERTY RIGHTS:  The Ivoirian Civil Code 
protects the acquisition and disposition of intellectual 
property rights. Legal protection for intellectual property 
may fall short of TRIPS standards due to uneven law 
enforcement and the lack of custom checks in porous borders, 
which do not allow law enforcement action on trade of 
counterfeit products in the textile, pharmaceutical and 
vehicle parts areas. Cote d'Ivoire is a party to the Paris 
Convention, its 1958 revision, and the 1977 Bangui Agreement 
covering 16 Francophone African countries in the African 
Intellectual Property Organization (OAPI), which has been 
TRIPS compliant since 2002. Under OAPI, rights registered in 
one member country are valid for other member states. Patents 
are valid for ten years, with the possibility of two 
five-year extensions. Trademarks are valid for ten years and 
are renewable indefinitely. Copyrights are valid for 50 
years.  In 2001, Ivorian experts drafted a new law in an 
effort to bring Cote d,Ivoire into conformity with TRIPS. 
The new law adds specific protection for computer programs, 
databases, and extension of author,s rights with regard to 
rented films and videos. However, the National Assembly has 
not yet approved this legislation and will not likely  take 
action by the end of the year. 
 
 
ABIDJAN 00000014  005 OF 008 
 
 
¶19.  The government's Office of Industrial Property is 
charged with ensuring the protection of patents, trademarks, 
industrial designs, and commercial names. The office faces 
many challenges, including insufficient resources political 
will and the distraction of the ongoing  political crisis. As 
a result, enforcement of IPR is largely ineffective. Foreign 
companies, especially from East and South Asia, flood the 
Ivoirian market with all types of counterfeit goods. 
Government efforts to combat piracy are modest. The Ivoirian 
Office of Author's Rights (BURIDA), put into effect a new 
sticker system in January 2004 to prevent counterfeiting and 
protect audio, video, literary and artistic property rights 
in music and computer programs. BURIDA's operations remain 
hampered by a long-running dispute between the management and 
the board  over policy and leadership issues. To resolve the 
crisis at BURIDA, on March 15, 2006 the Minister of Culture 
took a ministerial bylaw to establish a temporary 
administration and a commission to study and propose a global 
reform of this organization.  Despite these challenges, it 
does help to promote IPR enforcement with lawyers and 
magistrates.  Outside of urban areas, private individuals or 
entities usually cannot obtain freehold tenure because the 
traditional property rights of villages and ethnic groups 
prevent the land from being sold. In urban areas where land 
is not held as a "tenancy in common" by a tribal or village 
head but is considered to be owned individually, it can still 
be difficult to obtain a free-hold deed to a property even 
years after a closing. For that reason, most individuals and 
business tend to sign long-term leases. Although the legal 
system recognizes the right to contract for leaseholds in 
both urban and rural areas, there is not a clear 
understanding by traditional tribal land-owners of property 
rights. This complicates the enforcement of property rights 
in rural areas. In addition, because free-hold tenure by 
individuals is not generally permitted in rural areas, 
would-be borrowers often have difficulty using real estate as 
collateral for loans. Even in urban settings, in general, the 
mortgage market is not well developed. As part of the 
legislative reforms mandated by the Linas-Marcoussis Peace 
agreement, in July 2004 the National Assembly adopted 
amendments to the law on rural-land ownership. This new law 
provides very limited free-hold ownership for rural lands, 
which had been traditionally held as a tenancy in common by 
villages. Rights are only protected, however, if the owner 
can document proof of ownership through an assignment deed or 
purchase contract. 
 
¶20.  TRANSPARENCY OF REGULATORY SYSTEM:  The Government has 
taken some steps toward encouraging a more transparent and 
competitive economic environment. In addition, the IMF, World 
Bank, European Union, and other large donors have pushed the 
Government to take further steps towards reforms by placing 
conditions on future loans and grants. A centralized office 
of public bids in the Finance Ministry was designed to ensure 
compliance with international bidding practices by providing 
a neutral body to make bidding decisions in a transparent and 
objective fashion based on clear criteria. In 2005, the 
Ministry of Finance introduced institutional changes in the 
new public procurement code. They are:  The decentralization 
of operational functions to make ministerial departments, 
local governments and other government structures accountable 
for the management of public resources, the creation of 
consultative public procurement commissions in charge of 
examining extraordinary decisions, the reinforcement of 
public procurement coordination through new regulations, 
training, procedural controls and more open and transparent 
communication with the interested public, the establishment 
of an appeals mechanism, and the reinforcement of auditing in 
the public procurement process. 
 
¶21.  In addition to the office of public bids, there is also 
an Inspector General's office and regulatory bodies for the 
liberalized electricity and telecommunications sectors. 
Customs and other officials can be obstructive for all 
businesses operating in Cote d,Ivoire.  Several years ago, 
under pressure from the Bretton Woods institutions, the GOCI 
dissolved the cocoa and coffee marketing board and replaced 
it with a supposedly more market-oriented system regulated by 
several private and public institutions with producer, 
industry, and government representation. The results of the 
sector's liberalization are decidedly mixed. The new agencies 
tasked with the control and regulation of the sector have 
worked neither efficiently nor transparently and have become 
the subject of controversy regarding their fiduciary 
mismanagement. In the Fall of 2004, the President bowed to 
pressure from the international community and the planters, 
and created a steering committee to review the coffee and 
cocoa sectors and recommend reforms. The Committee submitted 
 
ABIDJAN 00000014  006 OF 008 
 
 
its report to the President in 2005, but the results have not 
been made public. The World Bank and IMF will likely include 
reform of the cocoa sector as requirements for any future 
lending. 
 
¶22.  The Finance Ministry has been known to change tax 
regimes overnight via ministerial decree, rather than working 
through the Council of Ministers and the National Assembly. 
The government sometimes levies large tax bills, which 
companies say have little basis in law or standard accounting 
practices. It then negotiates a lower bill with the company. 
 
¶23.  EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT: 
Cote d,Ivoire commercial banking sector is sound, despite 
the closure of 50 bank branches in the Northern, Center and 
Western zones.  Due to the financial risk associated with 
long-term loans because of the ongoing political/economic 
crisis, banks have begun to limit funding to the private 
sector, particularly for small and medium size enterprises. 
Banks continue to offer short-term loans. Banks generally 
make lending and investment decisions on business criteria. 
Portfolio investment is emerging. Government and private bond 
issuances are available for purchase by individuals or 
companies. The Regional Council for Savings Investments and 
regulates the WAEMU securities exchanges market. Government 
policies generally encourage the free flow of capital. Aside 
from restrictions previously listed, there are no private 
sector or government efforts to restrict foreign investment, 
participation, or control of local industry. Credit for 
business expansion is difficult to obtain. The government 
relinquished its interest in smaller banks and retains only a 
small minority share in several large banks.  At the end of 
2005, total assets of the 17 banks and two credit 
institutions were FCFA 2.0 trillion (about USD 4.0 billion), 
an increase of 1.7  percent from 2005 figures.  Ivoirian 
accounting systems are well developed and approach 
international norms. A WAEMU-wide accounting system, under 
which all member countries follow the same accounting rules, 
is firmly in place.  The FCFA exchange rate is pegged to the 
Euro at 655.957 FCFA to one Euro. As a consequence, the 
FCFA/USD rate fluctuates freely with the Euro/USD rate. 
There is no evidence of &cross shareholding8 and &stable 
shareholders8 to restrict foreign investment through mergers 
and acquisitions in Cote d,Ivoire. 
 
¶24.  POLITICAL VIOLENCE:  Politically motivated 
demonstrations and strikes by workers, unions in the 
education, transport, banking and cocoa sectors have occurred 
and could continue to be potential sources of civil 
disturbance in 2007. None of these protests have been 
directed against American or foreign businesses.  The after 
effects of the political violence in November 2004 are still 
being felt. Many of the more than 9,000 foreign nationals who 
fled have not returned, and many of the businesses that were 
destroyed by street mobs have not reopened. The Ivoirian 
government has not made good on its promise to compensate 
victims of the violence.  Businesses that remain are 
installing additional security measures to protect their 
property and staff. 
 
¶25.  CORRUPTION:  Cote d'Ivoire signed the UN Anti-corruption 
Convention on December 10, 2003 but has not yet ratified it. 
The country is not a signatory to the OECD Convention on 
Combating Bribery. There are domestic laws and regulations to 
combat corruption but they are neither generally nor 
effectively enforced. Penalties can range from incarceration 
to payment of civil fines. State employees can be convicted 
of either passive or active corruption or bribery in the 
performance of their duties. The law also punishes state 
employees who receive directly or indirectly benefit from 
private or parastatal companies related to contracts, markets 
or financial payment under their purview. Managers of 
companies who are complicit in the corrupting act are treated 
as accomplices.  Racketeering by security and defense forces 
is often denounced in the media and constantly receives wide 
attention from the authorities and the population. In 2005, 
security forces and police officials launched media 
advertisements to stop corruption. The ads entitled "that,s 
enough" focused on citizens as the corrupters. There was a 
loud outcry from civil society and the ads were quickly 
pulled off the air. Sporadic unrest in the country has led to 
an increase in the number of police, military and gendarme 
checkpoints on the roads, and consequently an increase in the 
solicitation of bribes at these checkpoints. Transport 
companies have been particularly hard hit. Trucks moving 
cargo from the western agricultural belt to Abidjan and 
between Abidjan and the rebel-controlled Northern region 
range pay a total of $100 to $400 at the various checkpoints 
 
ABIDJAN 00000014  007 OF 008 
 
 
they must pass through, depending on the cargo. There are 
several governmental entities in charge of fighting 
corruption: the General Secretariat in charge of good 
governance, which has been changed into the Secretary of 
State to the Prime Minister for Good Governance, since the 
cabinet reshuffle in September 2006 , the Board of State 
General Inspectors, and the Finance Ministry's Inspector 
General's Office. None have been effective in stamping out 
this growing problem. Neither Transparency International, nor 
any regional or local non-governmental "watchdog" 
organization operates in Cote d'Ivoire. 
 
¶26.  Many U.S. companies view corruption as an obstacle to 
investment in Cote d'Ivoire. Corruption has the greatest 
impact on judicial proceedings, contract awards, customs, and 
tax issues. It is common for judges to base their decisions 
on financial influence. Corruption and the ongoing 
political/economic crisis have affected the Ivoirian 
government's ability to attract foreign investment. 
Transparency International s 2006 &corruption perception 
index8 has ranked Cote d,Ivoire 153rd of 163 countries. 
Businesses have reported corruption at every level of the 
civil service. Stamps, copies, and an official act to 
register a birth, death, automobile, carry a supplemental 
"commission." If the commission is refused, the application 
is not processed. The size of the commission varies with the 
cost of the service or investment. Some U.S. investors have 
raised specific concerns about the rule of law and the 
government's ability to provide equal protection under the 
law. A poor record in enforcing the rule of law was one 
reason cited for the country's loss of eligibility for 
benefits under the African Growth and Opportunity Act (AGOA) 
at the end of 2004. 
 
¶27.  BILATERAL INVESTMENT AGREEMENTS:  There are no bilateral 
investment or taxation treaties between Cote d'Ivoire and the 
U.S. 
 
¶28.  OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS:  OPIC 
insures several U.S. investments in Cote d'Ivoire although 
the overall exposure is relatively small. The African Project 
Development Facility (APDF) and the African Investment 
Program of the International Finance Corporation (IFC) may 
assist investors. Since 1999, OPIC has not issued any new 
investment insurance policies in Cote d'Ivoire. Since 2003, 
OPIC has withdrawn its underwriting agreement for Cote 
d,Ivoire. Cote d'Ivoire is a member of the Multilateral 
Investment Guarantee Agency (MIGA). 
 
¶29.  LABOR:  The Constitution and the Labor Code grant all 
citizens, except members of the police and military, the 
right to form or join unions, and workers exercise these 
rights. Registration of a new union takes three months. 
Despite these protections, only a small percentage of the 
work force is actually organized, and most laborers work in 
the informal sector (i.e. small farms, small roadside stands, 
and urban workshops). Anti-union discrimination is 
prohibited. There have not been reports of anti-union 
discrimination, and as a consequence there have been no known 
prosecutions or convictions under this law. Unions were free 
to join international bodies, and the General Workers Union 
of Cote d'Ivoire (UGTCI) was affiliated with the 
International Confederation of Free Trade Unions. The 
Constitution additionally provides for collective bargaining, 
and the Labor Code grants all citizens, except members of the 
police and military services, the right to bargain 
collectively. Collective bargaining agreements were in effect 
in many major business enterprises and sectors of the civil 
service. In most cases in which wages were not established in 
direct negotiations between unions and employers, the 
Ministry of Employment and Civil Service established salaries 
by job categories. The Constitution and statutes provide for 
the right to strike, and the Government generally protects 
this right. However, the Labor Code requires a protracted 
series of negotiations and a six-day notification period 
before a strike may take place, making legal strikes 
difficult to organize. 
 
¶30.  On February 19, 2004, the Minister of Employment and 
Labor and the Minister of Economy and Finance signed a decree 
aimed at promoting national employment. This decree favors 
the employment of Ivoirians in private enterprises. The 
decree states that any position to be filled must be 
advertised for two months. If after two months no qualified 
Ivoirian is found, the employer is allowed to recruit a 
foreigner, provided that he informs the Administration of his 
plan for recruiting an Ivoirian to fill the position in the 
next two years. The foreign employee must be given a labor 
 
ABIDJAN 00000014  008 OF 008 
 
 
contract and must have a visa that costs the equivalent of a 
month's salary each year. Representatives of the West African 
Economic and Monetary Union harshly criticized the decree and 
claimed that it violated Article 91 of the West African 
Economic and Monetary Union Treaty, which permits the free 
movement of persons for employment within the union. In 
response to the criticism, the Minister released a statement 
to the press indicating that the decree was a guideline, not 
an obligation, and that it was not meant to discriminate 
against West Africans seeking employment in Cote d'Ivoire. 
 
¶31.  FOREIGN-TRADE ZONES/FREE PORTS:  There are no free trade 
zones in Cote d,Ivoire. In August 2004, the Ivoirian 
government adopted a plan to create free trade zones for 
information technology and for biotechnology. This project is 
dormant. Another free trade zone project, which was planned 
for the port of San Pedro, also remains dormant. Bonded 
warehouses do exist, and bonded zones within factories are 
allowed. High port costs and maritime freight rates have 
inhibited the development of in-bond manufacturing or 
processing, and there are consequently no general foreign 
trade zones. 
 
¶32.  FOREIGN DIRECT INVESTMENT STATISTICS: Foreign Direct 
Investment inflow by Sector, 2006 (USD) 
 
Sectors Investment Percentage 
 
Food  20,754,610  13.09% 
Mechanic, Iron    0     0.00% 
& Steel Industry  1,112,183   0.70% 
Health      2,444,917   1.54% 
Tourism & Hotel   356,380     0.22% 
Communication     117,843     0.07% 
Agriculture       16,316      0.01% 
Telecommunication       94,889,023  59.85% 
Textile     18,147      0.01% 
Service     2,257,452   1.42% 
Training    302,405     0.19% 
Plastics    2,389,454   1.51% 
Chemical    1,383,685   0.87% 
Wood  33,013      0.02% 
Transport   8,450,418   5.33% 
Mining      3,718,024   2.34% 
Oil & Gas   19,722,242  12.44% 
Glass 206,061     0.13% 
Cosmetics   380,917     0.24% 
Total 158,553,090 100.00% 
 
 
 
Source: Ivoirian Investment Promotion Authority (CEPICI). 
Average exchange rate CFAF 500 per one USD. 
Foreign Direct Investment inflow by Country of Origin, 2006 
(USD) 
Countries Investment Percentage 
France      4,312,401   3.35% 
Netherlands 21,209,452  16.46% 
Great Britain     186,413     0.14% 
Lebanon*    1,211,232   0.94% 
China 196,391     0.15% 
India 522,521     0.41% 
U.S.A 2,230,814   1.73% 
Panama      4,017,078   3.12% 
British Islands   29,208      0.02% 
Senegal     242,107     0.19% 
Togo  94,528,018  73.35% 
Central African Republic      73,326      0.06% 
Algeria     110,000     0.09% 
Total 128,868,961 100.00% 
 
Source: CEPICI. Table does not represent all the flow 
investments by origin. 
Average exchange rate CFAF 500 per one USD. 
*CEPCI does not include investment from resident Lebanese in 
FDI figures 
Hooks