The document discusses the current economic environment and drivers of economic growth in Sub-Saharan Africa. It notes that perceptions of risk in Africa have shifted positively in recent years. Strong economic growth across the region over the past decade has been fueled by increasing political stability, strategic development planning, regional integration efforts, and infrastructure investment. Côte d'Ivoire in particular is highlighted as pursuing business-friendly reforms and allocating a large portion of its budget to investments and poverty reduction initiatives to promote continued economic and social development.

1. Presented by:
H.E. Abdourahmane CISSE,
Minister to the Prime Minister in charge of the Budget
« SUB-SAHARAN AFRICA: CURRENT ECONOMIC
ENVIRONMENT, THE MAJOR DRIVERS OF
ECONOMIC GROWTH AND THE ROLE
GOVERNMENTS ARE PLAYING IN PROMOTING
SOCIOECONOMIC DEVELOPMENT ON THE
CONTINENT »

2. CONTENT
2
I. Africa: a new promising economic
environment
II. Shift in African economies:
example of Côte d’Ivoire
III. Conclusion

3. RADICAL SHIFT IN THE PERCEPTION OF AFRICA
3
May 2000 December 2011 February 2013

4. TWO DIFFERENT VERSIONS OF THE STORY (1/2)
4

5. 5
TWO DIFFERENT VERSIONS OF THE STORY (2/2)

6. AFRICA AT A GLANCE
 > $2 trillion, Africa’s collective GDP in 2013;
 122.7 million Africans are now classified as ‘middle class’
(daily per capita expenditure of between $4 and $20), 30%
higher than in 2000;
 629 million, the number of mobile phone subscribers in
Africa in 2014;
 60%, Africa’s share of the world’s total amount of
uncultivated, arable land;
Source: AFDB, McKinsey, IMF, ITU.
6

7. ’04 - ’08 2009 2010 2011 2012 2013
OECD 1.23 -4.1 2.4 1.3 0.7 0.9
Subs. Africa 4.7 1.7 4.5 2.7 1.9 2.6
Cote d'Ivoire -1.5 0.2 -1 -7.2 7.5 6.0
Ghana 3.8 1.4 5.3 12.1 6.1 4,5
Nigeria 6.7 6.6 7.6 2.1 1.5 2,6
Mozambique 4.9 3.6 4.4 4.6 4.6 4.5
Rwanda 6.8 4.1 3.1 5.4 5.7 1.8
 Sub-Saharan Africa has posted impressive economic growth over the past
decade;
 The region is forecasted to maintain similar levels of performance in the
coming years.
STRONG ECONOMIC GROWTH (1/2)
GDP per capita
growth rates (%)
7Source: IMF

8.  Sub-Saharan African countries have outperformed OECD
countries by 420 bps on average over the past decade.
STRONG ECONOMIC GROWTH (2/2)
8
Source: IMF

9. 6
2
2
5
5
6
6
9
10
12
13
24
Other services
Tourism
Utilities
Construction
Real estate
Financial services
Public administration
Manufacturing
Transport, telecom
Agriculture
Wholesale and retail
Resources
6
1
1
2
3
5
7
8
11
12
21
22
Other services
Tourism
Utilities
Manufacturing
Financial services
Real estate
Public administration
Construction
Resources
Transport, telecom
Agriculture
Wholesale and retail
CONTINUOUS DIVERSIFICATION OF AFRICAN
ENCONOMIES
Source: African Development Bank, McKinsey
9
Industries
Industry share of GDP
growth (%) 2002-2007
Industries
Industry share of GDP
growth (%) 2007-2013

10. KEY DRIVERS OF AFRICA’S ECONOMIC GROWTH (1/3)
10
1
Political stability
&
Improvement in
governance
• More democratic institutions (e.g. Nigeria);
• Transparency in the management of public resources;
• Fight against corruption (e.g. performance in the last
transparency report, etc.);
• Risk rating of sovereign African countries (e.g.
Ghana, Cote d’Ivoire, Nigeria, etc.).
2
Strategic
development
planning
• Adoption and execution of strategic development
plans;
• Cote d’Ivoire adopted the 2012-2015 National
Development Plan;
• Kenya launched a development program called
Kenya Vision 2030 to support the country’s
transformation into a new industrialized nation.
3
Regional
Integration
• Mutual agreements between African countries to
facilitate cross-border trade (goods & people);
• Harmonization of legislation within the community
blocks to facilitate trade;

11. 11
KEY DRIVERS OF AFRICA’S ECONOMIC GROWTH (2/3)
4
Ongoing economic
reform and
improvement in
business
environment
• Widespread business-friendly reforms are making it
easier to do business in many African countries (power
sectors reforms in Nigeria, etc.);
• According to the World Bank “Doing Business 2013/2014
report”, five African countries (Cote d’Ivoire, Benin,
Togo, DRC and Senegal) are amongst the top reformers;
• Sub-Saharan Africa accounted for the greatest number of
business facilitation reforms for 2013/2014 – with a tally
of 75 out of a total of 230 reforms registered globally.
5
Access to
international
capital
• FDI flows of USD 56.3 billion in 2013 (up 27% from 2010);
• Between 2007 and 2013, FDI projects in SSA have
registered a CAGR of 19.5%;
• The share in value of intra-African investment moved
from 4.4% in 2003 to 22.3% in 2013;
• Launch of few eurobond products on the international
financial market (none in 2007 except South Africa & now
16 billions $ have been raised in 2014 by 20% of the 48
countries in SSA).

12. 12
KEY DRIVERS OF AFRICA’S ECONOMIC GROWTH (3/3)
6
Investment in
infrastructure
• Strong investment in infrastructures and energy;
• Examples include:
 dam of the Renaissance on the River Nile in
Ethiopia (6,000 megawatts);
 construction of the Soubré hydroelectric dam in
Côte d’Ivoire(275 megawatts);
 Abidjan-Lagos highway.
7
Living standard
improvement
• Development of a middle class in Africa (up 30% from
2000);
• Examples of measures taken in Côte d’Ivoire:
 60% of the CIF price guaranteed to cocoa farmers;
 minimum wage raised by 64%;

13. • The most striking observation from EY’s 2014 «Africa attractiveness
survey» is how much Africa’s perceived attractiveness has improved.
Indeed, in less than five years, Africa dramatically improved its position
and now stands second for best places to invest globally, on par with
Asia
ATTRACTIVENESS OF AFRICAN ECONOMIES
13

14. 14

15. 15
THE GATEWAY TO WEST AFRICA

16. BRIEF OVERVIEW OF COTE D’IVOIRE
16
 1st economy of WAEMU (West African Economic and Monetary Union with
a population of 100 millions habitants) with 40% of the GDP;
 Winner of the Africa Cup of Nation of Football in 2015;
 Estimated population of 24 million inhabitants & 35 B$ GDP;
 Diversified agricultural crop:
 1st cocoa producer in the world;
 1st kola producer in the world;
 1st rubber producer in Africa;
 1st exporting country of cashew nut in the world and 2nd largest
producer;
 2nd banana & palm oil producer in Africa;
 Abundance of natural resources including petroleum & minerals;
 Important infrastructure to support the economic activities (the largest
sub-region road network with 6 500 km paved roads, 1st cocoa port in the
world, etc.)

17. BRIEF OVERVIEW OF COTE D’IVOIRE
1717
Years of prosperity (1960-1980):
 Average growth rate of 7% per
year driven by strong commodity
prices;
 Investors and international
community‘s confidence ;
 The implementation of a
sustained investment policy, with
total investment rate of:
 22% of GDP in 1970;
 27% of GDP in 1980.
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Period of economic, social and
political crisis (1980-2011):
 Significant reduction in the real
GDP growth rate:
 From 1980 to1993: 1%;
 From 1994 to 1999: 5.4%;
 From 2000 to 2011: 0.6%;
 Deteriorating terms of trade;
 Increase in public debt;
 Collapse in investment (in
average less than 10% of GDP).
The return of the Elephant (2012-
now)
 Economy has grown by more
than 25% over the past 3 years;
 Investment move back to 16.2%
of GDP in 2014 (10% private);
 Debt to GDP ratio of 36.3%;
 Budget deficit under control
(around 3% the past 3 years);
 Yearly inflation below the 3%
community norm.
GDP Growth rate %

18. A LARGER PORTION OF THE BUDGET DEDICATED TO
INVESTMENTS
1818
 HE President Ouattara intends to turn Cote d’Ivoire into an emerging market country and
has an ambitious investment program:
 Energy sector: goal is to increase capacity from 1650 MW to 4000 MW in 2020;
 Infrastructure: the modernization and expansion of the railway to join Abidjan-
Ouagadougou and diverse structuring road projects;
 Agriculture: x 4 between 2010 and 2015;
 Health: x 2.5 between 2010 and 2015;
 Education: represents 20% of the budget.

19. A SIGNIFICANT PART OF THE BUDGET
ALLOCATED TO THE FIGHT AGAINST POVERTY
19
% of Total Budget 26,7% 29,6% 28,6% 28,4%
These important budget allocations reflect the Government’s strong
commitment to significantly improve the living standards of populations and
have an inclusive growth.

20.  To achieve its goal, the Government intends to encourage private investment in
the country by creating a business friendly environment;
 Reforms include:
 Creation of a one-stop-shop for business creation => 24 hours max to create a
company;
 Reduction of the fiscal costs associated to starting a business;
 Creation of the Abidjan Commercial Court for faster settlement of trade
disputes;
 Adoption of a new investment code with specific codes for the mining and
electricity sectors ;
 Implementation of an institutional and legal framework for PPPs.
 Doing Business:
 For the second year in a row, Cote d’Ivoire is amongst the 10 greatest
reformers, according to the World Bank’s ‘’Doing Business’’ ranking;
 Côte d’Ivoire moved up 30 spots in the « Doing Business » ranking and 135
spots on the « starting a business » criteria in just 2 years.
A BUSINESS-FRIENDLY ENVIRONMENT
20

21. 21

22. AFRICA: A LARGE POTENTIAL YET TO EXPLOIT
 Does investing in Africa risky? YES like everywhere, BUT the risk is
decreasing day after day;
 Does investing there profitable? YES, very profitable;
 Overall, Africa is now a more stable continent that offers unique
opportunities, including:
 Abundant commodities;
 A workforce poised to become the largest in the world by 2035;
 A big local market with an ever increasing middle class;
 Infrastructures that are constantly improving;
 A new ruling class with a vision that fosters business-friendly
environments.
22

23. TESTIMONY OF EXECUTIVES OF SOME THE
MAJOR U.S. CORPORATES
 « Winning takes bold commitments, a dedicated
team and resilience. In Africa, we are a productivity
partner … growing 30% annually. » Jeff Immelt, CEO, GE,
in his 2013 letter to shareholders
 « Africa is the untold story, and could be the big
story of the next decade, like India and China were
this past decade. The presence and the significance of
our business in Africa is far greater than India and
China, even today. » Muhtar Kent, CEO, Coca-Cola
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