“Strategic plan ‘Vision 2040’ adopted in 2011 with main objective for Cote d’Ivoire to become an industry-driven economy, united in its cultural diversity and democracy and open to the rest of world.”
~ President A.Ouattara
Yesterday we hosted one of our hugely successful monthly webinars and this month’s topic is about “Starting as an independent Power Producer in Cote d’Ivoire”. The guest host for this session was Mr. Toure Sultan Abdoul Karim, who is the Directory of Programming of Public Investments for the Ministry of Planning and Development, Cote d’Ivoire.
In today’s article, we will outline what was discussed. If you are business owner looking to invest in Africa, this is very much for you.
The Cote d’Ivoire Government has an ambition to become an industry-driven economy that is open to the rest of world.
Cote d’Ivoire new energy policy has the following objectives:
Investments in the energy sector are at the centre of the strategy for Cote d’Ivoire to become an emerging market.
- To generate sufficient electricity and demand side management
- To increase installed capacity by approximately 150 MW each year
- To diversify the generation mix, which currently depends heavily on domestic natural gas
- To increase participation of independent power producers (IPPs)
- To improve the institutional framework
- To restore the financial viability of the energy sector – tariff adjustments and loss reduction
A new energy policy, adopted in 2013 aims to:
- Increase renewable energy share in national energy mix from 1% in 2015 to 16% in 2030
- Diversify energy production sources from 80 % fossil fuel and 20 % renewables in 2015, to 66 % fossil fuel and 34 % renewable in 2020
- To 58 % fossil fuel and 42 % renewable energy in 2030
Foreign companies are invited to participate via tender process submission and direct approach:
The Public Tender process:
Company independent project submission:
This procedure is mainly used for electrification projects.
In order for you to make a spontaneous proposal to the Ministry of Energy for a planned project, you will need to:
- Submit a technical and financial offer to Management of the structure of the project
- The offer will be assessed by the relevant authorities
- Once approved, a discussion regarding possible clarification and or negotiations will be held
- From here, a signature of approval by the authorities will mean your project has been approved
Cote d’Ivoire Investment Zones & VAT:
In order to boost investments, an attractive investment regime has been developed.
There are 3 investments zones regimes that have been created with benefits granted for each of them
- In the investment phase, there is between 40-50% reduction in the amount of custom duties that are paid for equipment, materials as well as first batch of spare parts
- There is also total exemption from VAT – see below:
Cote d’Ivoire’s Investors Protection:
There are sixteen specific guarantees when you invest in Cote d’Ivoire. The key guarantees (by Law) we would like to highlight are:
- You are offered the freedom to invest
- You have equal rights
- You have freedom to access foreign currencies
- You have stability of benefits
- You will not need to be nationalised and there is no risk of expropriation
- Your private property is protected
To see full list of investment guarantees, see our full presentation here.
Thank you for your interest in Africa Business Venture, we welcome any questions or enquiries so please do not hesitate to contact us now.
Co-Founder & CEO, ABV