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Country risk 2021: Bloomfield investment rates Côte d'Ivoire as broadly stable

14/06/2021
Categories: Economy/Forex

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The assessment of the five parameters, namely: the business climate, macroeconomic performance, public finance management, the soundness of the financial system and the socio-political risk classifies Côte d'Ivoire as globally stable. The economic performance rating agency, Bloomfield investment has released its 2021 ratings on Côte d'Ivoire. The Ivorian economy has shown resilience in the face of various national and international shocks with a growth rate of 1.8 % in 2020. The business environment in Côte d'Ivoire has deteriorated due to the uncertainty aroused among investors in a context of health, socio-political and economic crises. The growing level of insecurity and crime could undermine the business climate.

Ivorian public finances were severely tested during 2020 by the negative impact of the covid-19 pandemic. The budget deficit thus worsened, going from 2.3% of GDP in 2019 to 5.6% of GDP in 2020. For the year 2021, the authorities anticipate an improvement in the deficit, thanks among other things to the continuation of the reforms initiated in the area of public finance management.

Debt service remains a medium-term concern for the rating agency. Also, the position of the Ivorian opposition parties on the possibility of a third term for the outgoing president in 2020 has exacerbated an already fragile political situation. However, the post-electoral situation seems stable and reconciliation efforts are increasing. The internal and regional security situation is putting great pressure on the business climate.

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