Fafede: Corruption, election risks & debt near-term challenges for Cote D’Ivoire

Cote d'Ivoire, a country with a positive economic outlook for 2025, is not without its challenges. The President of FAFEDE, Samuel Mathey, recently shared insights on the critical issues that need to be addressed in the near term. These challenges include corruption, election risks, and the growth of the local private sector. Despite the International Monetary Fund (IMF) projecting a 6.3% GDP growth for the country, concerns linger over these pressing issues. Corruption has been a persistent problem in Cote d'Ivoire, with recent cases of embezzlement surfacing in various sectors. A notable scandal involved the embezzlement of around two million U.S. dollars by a managing director in one sector. While the government initially established a ministry to combat corruption, it was later dismantled, leaving only a less influential agency to address the issue. The decrease in anti-corruption efforts poses a significant threat to the country's economic stability. Another major challenge highlighted by Mathey is the looming election year in 2025. President Ouattara's decision to seek a third term by amending the constitution has sparked controversy. Questions arise about the possibility of a fourth term, which would violate the constitution. Additionally, concerns persist over the exclusion of key candidates from the electoral list, potentially leading to protests and violence in the country. The uncertainty surrounding the upcoming elections poses a substantial risk to Cote d'Ivoire's political stability. In addition to corruption and election risks, strengthening the local private sector emerges as a top priority for the country. Mathey emphasized that local businesses have been grappling with challenges such as corruption, high corporate taxes, and limited access to contracts and markets. Addressing these issues is crucial to creating a conducive environment for local enterprises to thrive and contribute to the country's economic growth. To bolster the local private sector, the government must take decisive actions to tackle corruption, reform tax policies to alleviate the burden on businesses, and facilitate easier access to contracts and markets. By addressing these key areas, Cote d'Ivoire can foster a more vibrant and competitive business environment, paving the way for sustainable economic development. Despite the challenges ahead, the country has the potential to leverage its resources and harness opportunities for growth in the coming years. As Cote d'Ivoire navigates through these critical challenges, stakeholders must remain vigilant and proactive in addressing issues of corruption, election integrity, and private sector development. The success of the country's economic trajectory in 2025 hinges on effectively managing these obstacles and fostering a conducive environment for sustainable growth and prosperity.