Finally, the services sector, particularly transport and finance, are growing at very fast rates thanks to the positive spillovers from the primary and secondary sectors. It currently accounts for 47% of GDP, indicating a positive degree of economic diversification.
African powerhouse
From the 4.7% GDP contraction in 2011, the economy has witnessed a rapid expansion with rates of growth higher than the continental average. As one of the economic powerhouses of the Economic Community of West African States (ECOWAS), the increase in exports and industrial capacity has spurred FDI.
In addition, its membership to the West African Economic Union (WAMU) has provided significant monetary policy stability by reducing exchange rate and transfer risks amid benign inflation.
With relatively low fiscal and external account deficits, Ivory Coast will be able to continue borrowing on international capital markets at much more favourable rates than peers like Kenya, Ghana or Zambia.
Added to the IMF’s extended credit facility (ECF) in the past years, Ivory Coast’s prospects to continue boosting capital expenditure through international loans and credit lines has improved its capacity to invest in growth-enhancing economic sectors, raising its hopes of attaining emerging market status by 2020.
All in all, the economic prospects for the West African country are upbeat and will improve if stability materializes nationwide.
Progress ahead
President Ouattara’s re-election should set the ground for a second mandate marked by progressive democratic consolidation to ensure political and economic stability.
Although there has been significant progress made in the post-conflict reconciliation process and the demobilisation, disarmament and reintegration (DDR) of former combatants, some important issues like insufficient financial compensation for victims and DDR shortfalls continue to undermine national social cohesion. The incoming elected President will have the arduous task of addressing the grievances and reconcile the differences that have for long divided country.
Having already pledged to change the constitution’s article 35 regarding the controversial nationality clause, this has garnered support for Ouattara’s progressive stance in eliminating a discriminative law that caused much confrontation in the past.
Moreover, his intentions to respect the two term presidential limits sheds some encouraging light on his commitment to democratic alternation amid waves of protests across the continent sparked by Presidents attempting to cling on to power.
Ouattara’s ostensible resolve to strengthen democratic modes of governance, promote reconciliation and stimulate economic growth bodes well for the country’s future prospects. Time will tell if he can walk the talk.
