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RR RUEHMA RUEHPA
DE RUEHAB #0036/01 0161418
ZNR UUUUU ZZH
R 161418Z JAN 08
FM AMEMBASSY ABIDJAN
TO RUEHC/SECSTATE WASHDC 3901
INFO RUEATRS/DEPT OF TREASURY WASH DC
RUCPDOC/USDOC WASHDC
RUCPCIM/CIMS NTDB WASHDC
RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 08 ABIDJAN 000036 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS TO USTR 
STATE FOR EB/IFD/OIA and AF/W 
 
 
E.O. 12958: N/A 
TAGS: OPIC USTR KTDB ECON ETRD
SUBJECT: COTE D'IVOIRE 2008 INVESTMENT CLIMATE STATEMENT 
 
REF: SECSTATE 158802 
 
¶1. OPENNESS TO FOREIGN INVESTMENT 
Despite the ongoing political/economic crisis, the Ivorian 
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. 
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 
-- 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. 
Foreign companies are free to invest and list on the regional stock 
exchange (BRVM), which is based in Abidjan and is dominated by 
Ivorian 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 with extensive histories in Africa 
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. 
The government does not use tax, labor, environment, or health and 
safety laws to impede or distort investment. Well-entrenched foreign 
companies historically have formed relationships with GOCI 
officials, which frequently influence the awarding of tenders. There 
is no sector, however, 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. Free-hold tenure outside 
of urban areas, despite land reform, is difficult and most 
businesses, including agribusinesses and forestry companies, opt for 
long-term leases. 
There are sizable U.S. investments in offshore gas and oil 
exploration and production, petroleum product distribution, cocoa 
and coffee processing and shipping, as well as a more modest 
investment in banking. The petroleum sector will continue to grow in 
2008, despite the global shortage of exploratory rigs. 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 offshore oil fields, a rising production and high 
oil prices. Oil has become Cote d'Ivoire's leading export product, 
outpacing traditional leader cocoa. Another area of commercial 
success is cellular phone service, which has seen the entry of a 
fourth mobile operator in June 2007 and a fifth operator has been 
announced; each company is largely financed by foreign capital. 
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 Ivorian economy, the government has expressed 
 
ABIDJAN 00000036  002 OF 008 
 
 
concern that foreign companies not dominate it. Although the 
government has liberalized the market, it de facto limits the amount 
of cocoa that large foreign exporters can purchase and process to 
approximately 23% of the total harvest via a prohibition of foreign 
companies approaching farmers outside of either government-licensed 
middlemen or co-operatives. The Ivorian 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 Ivorian 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 still not yet been made public.  In October 2007, in response to 
several public accusations of widespread malfeasance in the cocoa 
sector, Ivorian President ordered the public prosecutor to 
investigate the allegations, particularly those concerning 
embezzlement.  The World Bank and IMF have continued their focus on 
the cocoa sector as a key economic bellwether and are pressing the 
Ivorian government commit to a package of specific reforms in this 
sector. 
The World Bank, IMF and the African Development Bank resumed their 
financial operations and lending in Cote d'Ivoire in mid-2007 after 
an accord was reached with the government to pay a negotiated 
percentage of its outstanding arrears to the WB and AfDB.  As a 
consequence of the agreement, the WB and IMF provided an immediate 
post-conflict assistance package and emergency budget support in an 
effort to assist the country cope with the financial demands 
associated with the process of ending the five-year long civil 
conflict. 
¶2. 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 Ivorians 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, Ivorians 
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. 
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 money in and out 
as cocoa is purchased and exported. Companies continue to complain 
that the Government is slow in approving currency conversions. 
¶3. 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, even in the sensitive cocoa sector, 
particularly when the expropriated entity is foreign held and the 
expropriator is Ivorian or is a long-term French or Lebanese 
resident. 
 
¶4. 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 
 
ABIDJAN 00000036  003 OF 008 
 
 
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. As a partial defense, some investors 
stipulate in contracts that disputes must be settled through 
international commercial arbitration.  However, even if stipulated 
in the contract, decisions reached through international 
arbitration, and even through arbitration in the African regional 
arbitration body, are sometimes not honored by local courts. 
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 the expansion of the 
arbitration tribunal's mandate 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 
seven years the Arbitration Board has heard only 51cases (10 in 
2006). In addition to its local arbitration board, Cote d'Ivoire is 
a member of the International Center for the Settlement of 
Investment Disputes. There is also the Abidjan-based, regional Joint 
Court of Justice and Arbitration as an alternative means of solving 
contractual disputes. 
There is political consensus on the need to reform the judicial 
system. However, in 2007, the Ivorian government remained 
preoccupied with the ongoing political crisis and judicial reform, 
like many other legislative initiatives, remained on the back 
burner. Reform efforts are likely to continue to languish until 
after the next presidential elections, tentatively scheduled for 
June 2008.  Under the pending reform plans, the GOCI would dismantle 
the Supreme Court, and divide its authority among several 
independent institutions. The current Judicial Chamber of the 
Supreme Court would become the High Appeals Court (Cour de 
Cassation). It would handle civil, penal, social, and labor cases 
when it deems that a lower court did not adequately apply the law. 
The current Administrative 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. 
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 Harmonization of Business Law (OHADA) is a 
collection of uniform laws on bankruptcy, debt collections, and the 
rues governing business transactions. The OHADA permts three 
different types of bankruptcy liquidation: an ordered suspension of 
payment to permit a ngotiated settlement, an ordered suspension of 
pament to permit restructuring of the company, similr to Chapter 
11, and the complete liquidation ofassets, similar to Chapter 7. 
Creditors' rights, irrespective of nationality, are protected 
equall by the Act. Monetary judgments devolving from a bnkruptcy 
are usually paid out in local currency. 
¶5.  PERFORMANCE REQUIREMENTS AND INCENTIVES 
Coe 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). 
 
¶6.  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 Ivorians. 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 
 
ABIDJAN 00000036  004 OF 008 
 
 
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 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 by the fact 
that the National Assembly's mandate ended in 2005, however, and it 
is unlikely to be passed into law until a new National Assembly can 
be constituted with new elections. For the time being, the Ivorian 
regulatory agency continues to function under the authority granted 
to it by the 1995 telecommunications code. The new rules, as 
drafted, 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. 
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 Ivorian 
partner(s), and appropriate licenses. Foreign companies operate 
successfully in all these service sectors. 
¶7.  PROTECTION OF PROPERTY RIGHTS 
The Ivorian 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 the 
legislation will not be approved until a new National Assembly is 
convened. 
The government's Office of Industrial Property (OIPI)  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 Ivorian market with all types of counterfeit 
goods. Despite enforcement difficulties, the government is working 
to strengthen IPR protection. In 2007, the Ministry of Industry, 
through the OIPI, issued a draft bill on protection of IPR at the 
border to provide legal provisions for addressing counterfeiting. 
The new bill would prohibit the entry and exit of goods infringing 
IPR by Customs. This will allow customs to detain the import and 
export of goods suspected of infringement, to investigate on the 
status of infringement of goods etc. Further, Cote d'Ivoire's law on 
mandatory registration of commercial names came into effect in 
February 2006. 
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.  Since its 
establishment, the new administration has boosted its fight against 
audiovisual piracy including raids against retail outlets and street 
vendors of pirated CDs and DVDs and instituted legal proceedings 
against persons involved in fraudulent copying of audiovisual 
materials.  Additionally, in 2007 BURIDA brokered an accord with the 
Ivorian music industry to reduce prices on locally produced CDs by 
66 percent in an innovative effort to undercut IPR piracy.  BURIDA 
runs regular programs promoting 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 
 
ABIDJAN 00000036  005 OF 008 
 
 
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. 
¶8.  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 
--The reinforcement of auditing in the public procurement process 
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. 
In 1999, 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 its 
report to the President in 2005, but the results have not been made 
public. The World Bank and IMF are pressuring the government to 
institute further reforms to bring greater transparency to the 
sector. 
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. 
 
¶9.  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 following the 2002 coup attempt that turned into an armed 
rebellion that effectively split the country in half  (banks are 
slowly reopening in these regions). 
Due to the financial risk associated with long-term loans because of 
the ongoing political/economic crisis, banks have shifted their 
emphasis to lending to the public sector, to the detriment of small 
and medium size enterprises. Banks continue to offer short-term 
loans, and 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 
 
ABIDJAN 00000036  006 OF 008 
 
 
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 and outright ownership of one medium sized bank (BNI). 
At the end of 2006, total assets of the 18 banks and two credit 
institutions were FCFA 2.2 trillion (about USD 4.9 billion), an 
increase of 10.5 percent from 2005 figures. 
Ivorian 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 shareholding" and "stable 
shareholders" to restrict foreign investment through mergers and 
acquisitions in Cote d'Ivoire. 
¶10.  POLITICAL VIOLENCE 
Politically motivated demonstrations and strikes by workers' unions 
in the health, education, transport, and cocoa sectors have occurred 
and could continue to be potential sources of civil disturbance in 
¶2008. None of the 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 Ivorian 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. 
¶11.  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 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, 
including 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. 
Many U.S. companies view corruption as a major 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 Ivorian government's ability to attract foreign investment. 
Transparency International's 2006 "corruption perception index" 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. 
In December 2007, the GOCI appointed the members of the country's 
financial intelligence unit, Cellule Nationale de Traitement des 
Informations Financieres-CENTIF, to fully comply with the WAEMU's 
directive of September 2002 on anti-money laundering and start 
 
ABIDJAN 00000036  007 OF 008 
 
 
operations about collecting data on suspicious financial 
transactions from financial bodies. 
¶12.  BILATERAL INVESTMENT AGREEMENTS 
There are no bilateral investment or taxation treaties between Cote 
d'Ivoire and the U.S. 
 
¶13.  OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
OPIC insures several U.S. investments in Cote d'Ivoire although the 
overall exposure is relatively small. Since 1999, OPIC has not 
issued any new investment insurance policies in Cote d'Ivoire, and 
in 2003, OPIC withdrew its underwriting agreement for Cote d'Ivoire. 
The African Project Development Facility (APDF) and the African 
Investment Program of the International Finance Corporation (IFC) 
may assist investors now that its parent the World Bank is reengaged 
in Cote d'Ivoire.  Cote d'Ivoire is a member of the Multilateral 
Investment Guarantee Agency (MIGA). 
¶14.  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. 
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 Ivorians 
in private enterprises. The decree states that any position to be 
filled must be advertised for two months. If after two months no 
qualified Ivorian is found, the employer is allowed to recruit a 
foreigner, provided that he informs the Administration of his plan 
for recruiting an Ivorian to fill the position in the next two 
years. The foreign employee must be given a labor contract and must 
have a visa "carte de sejour" that costs USD 300 (CFAF 150,000) for 
non-ECOWAS and USD 30 (CFAF 15,000) for ECOWAS citizens each year 
(the new rates of USD 600 for non ECOWAS and USD 70 For ECOWAS 
citizens adopted  in June 2002 were never applied). 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. On November 8, 2007, Ivorian President 
Gbagbo signed a decree permanently suspending the "carte de sejour" 
requirement for ECOWAS citizens. 
¶15.  FOREIGN-TRADE ZONES/FREE PORTS 
There are no free trade zones in Cote d'Ivoire. In August 2004, the 
Ivorian 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. 
 
¶16.  FOREIGN DIRECT INVESTMENT STATISTICS: 
Foreign Direct Investment inflow by Sector, 2007(USD) 
 
Sectors    Investment  Percentage 
 
Food    67,191,977 9.67% 
Mechanic, Iron & 
Steel Industry  45,350  0.01% 
Health    1,974,624  0.28% 
Tourism & Hotel 306,385  0.04% 
 
ABIDJAN 00000036  008 OF 008 
 
 
Communications  341,386  0.05% 
Fishing   2,686,820  0.39% 
Telecommunications 461,796,648   66.47% 
Trade    1,287,970  0.19% 
Service    73,131,050  10.53% 
Training   143,756   0.02% 
Plastics   253,483   0.04% 
Chemical   236,556   0.03% 
Wood    432,531   0.06% 
Transport   14,804,602  2.13% 
Mining    7,140,847  1.03% 
Oil & Gas   11,040,375  1.59% 
Other Energies  48,998,138  7.05% 
Cosmetics    1,389,803   0.20% 
Breeding    39,748   0.01% 
Paper Industry   1,464,538   0.21% 
Other Industries   15,962    0.00% 
Total     694,722,549  100.00% 
 
Source: Ivoirian Investment Promotion Authority (CEPICI).  Average 
exchange rate CFAF 478 per one USD. 
 
Foreign Direct Investment inflow by Country of Origin, 2007(USD) 
 
Countries   Investment   Percentage 
 
Norway   1,445,533   16% 
Lebanon   4,973,737   54% 
Israel   101,118   1% 
China   2,686,820   29% 
TOTAL   9,207,208   100.00% 
 
Source: CEPICI. Table does not represent all the flow investments by 
origin. 
 
Average exchange rate CFAF 478 per one USD. 
*CEPICI does not include investment from resident Lebanese in FDI 
figures 
 
AKUETTEH