In conclave with the employers with on the menu the partnership between the government and the private sector for the development of Côte d'Ivoire, Prime Minister Hamed Bakayoko wanted to be reassuring, assuring the economic actors as to the maintenance of peace. And for good reason, on the eve of the presidential elections, in a context of fiscal pressure and the crisis linked to the coronavirus pandemic, concern is mounting.

In Abidjan at the moment, it is impossible to talk about business, without mentioning the economic environment weighed down by the coronavirus pandemic, but also (and above all) the socio-political situation in Côte d'Ivoire. During a meeting in the auditorium of the Primature on Wednesday, September 16, Prime Minister Hamed Bakayoko undertook to strengthen the partnership between the government and the private sector and above all wanted to reassure him.

“Trust us, peace, security and stability assured”

“I ask you to continue to invest, to create added value and jobs. Trust us, the government is committed to maintaining peace, security and stability in the country", declared Amadou Gon Coulibaly's successor, assuring that "the government will spare no effort to consolidate the gains made since 2012, particularly in terms of reforms and public investments in infrastructure to support the competitiveness of the private sector, both at national and regional level”.

Temporary exile of certain economic actors

On the ground indeed, the concern is very present. “The situation is tense, especially as companies are going through a difficult period. There is a very strong rise in concern within the private sector, not only because of the health crisis which has had devastating effects on many Ivorian companies, but also tax pressure and harassment and now political uncertainty. approaching the electoral process. Haunted by the memory of the 2010-2011 war, some economic actors have actually started to leave or are planning to leave, just to escape possible unrest,” an economic actor who requested anonymity told La Tribune Afrique. thus confirming recent releases on Twitter .

“Here are big clients who are sending their families abroad because they are afraid of the security situation during this election period. — Tweet from (@YeoKanigui) » ()

“Same observation with customers with whom I speak who all booked their ticket before the election was even held next month - Tweet from (@kyayus)” ()

107 billion CFA francs due, employers claim 39 billion by the end of 2020

In front of Hamed Bakayoko, Jean-Marie Ackah, President of the General Confederation of Businesses of Côte d'Ivoire (CGECI) presented what he described as "urgent concerns" of the private sector "which call on the part of the government to respond urgent”. The head of employers, insisting on taxation, spoke of the collection process initiated by the tax authorities, while the measures to suspend tax and customs controls taken at the beginning of July to help companies in the face of the pandemic crisis, should still be in force. . The private sector is also calling for the cancellation of late penalties payable by holders of State public contracts.

In the short or medium term, employers are demanding payment from the State of at least 107.8 billion CFA francs, including 68.8 billion in debts to the construction and public works sector, private educational establishments and security companies. The remaining 39 billion CFA francs correspond to VAT credits due to companies at the end of August 2020 - "against zero in January". The private sector notes that the measure for accelerated reimbursement of these VAT credits announced at the beginning of July has still not taken effect, while companies are financially strangled. “Almost all of these amounts are now frozen and this reimbursement freeze seriously burdens the cash flow of the companies concerned. This situation is not acceptable, as VAT credits constitute advances made to the State by companies; which justifies their reimbursement. It is therefore urgent that a solution be found with a view to settling these debts, ideally by the end of 2020 and that the reimbursement management be better supplied by an increase in the rate of VAT receipts which are affected", defended Jean-Marie Ackah, calling on the State to prioritize all debts owed to companies.

The CGECI also points out that the 250 billion CFA francs promised to the private sector are struggling to be released. After five months, only 15 billion CFA francs have been collected by a minimal number of companies. All requests from the private sector were recorded in a white paper on the industrialization of Côte d'Ivoire submitted to the Prime Minister.

The more pronounced country risk

The urgency sounded by employers transmits the pulse of the Ivorian business community at this time. And the report on Côte d'Ivoire country risk presented this Thursday, September 17 at the eponymous conference organized in Abidjan by the pan-African rating agency Bloomfield Investment, clearly highlights the impact of political uncertainty on the economy.

Although the management of public finances has made it possible to improve the budget deficit, the document notes, the weakening of the private sector due to a macroeconomic situation deteriorated by the Covid-19 pandemic, would have a negative effect on the solidity of banks. and the financial system in general. Moreover, in an interview ( Click here ) with LTA, Daouda Coulibaly, president of the Professional Association of Banks and Financial Institutions of Côte d'Ivoire (APBEF-CI) expressed it well at the heart of the health crisis: " banks are the receptacle for all the difficulties arising from the economy during the pandemic. Consider sectors like hotels and restaurants that are hit hard by the crisis. [...] All this will affect the profit and loss accounts of the banks”.

In addition, the authors of the report point more the cursor on the socio-political aspect. “The outgoing President's third term, the exclusion of political figures from the electoral list and the alleged shortcomings of the CEI have mainly heightened political tensions in the run-up to the presidential elections. This situation, which has already led to loss of life and material damage, could lead to a major conflict like the post-election crisis that Côte d'Ivoire experienced in 2011", indicates the report led by Stanislas Zézé, CEO of Bloomfield Investment, stressing that such a scenario would inevitably destroy the country's recent achievements.

Over the past eight years, Côte d'Ivoire, the world's leading producer of cocoa and rich in several other resources, has distinguished itself by its flourishing economy and its 8% GDP growth. The star nation of West Africa, whose growth is expected to slow to less than 4% this year, now has a date with history, as the presidential elections scheduled for October 31 are advancing rapidly.

“The fears of the private sector will not go away with a wave of a magic wand or a political speech. Especially since opposite, we do not see signs of appeasement. All the political camps are fighting,” remarks this economic actor from Abidjan. “The signals that companies are waiting for, he continues, are that the State does not put pressure on them in terms of taxation, because they have no resources. But they are also waiting for an appeasement on the political field. Especially since ten years ago, the discourse was the same, we had reassured the private sector”. »