Ivory Coast – Unique amongst African economies and more fun?
Unusually, my ears pricked last week, whilst reading an article in the often rather dry Economist. It contemplated the surprisingly buoyant economy in the Ivory Coast. Situated on the West coast of Africa, Ivory Coast has a population of 31M people. For comparison with a more familiar territory, this is approximately double the population of the Netherlands. Netherlands GDP per Capita $64,572 versus Ivory Coast’s comparatively modest GDP per capita of $2,530. Not particularly astonishing, you may think. However, what makes Ivory coast stand out, is that in comparison to its African neighbours, its GDP per capita stands extraordinarily high (55% higher than the sub-Saharan Africa average). Nigeria’s GDP per capita is $1,596 and the average in sub–Saharan Africa is a modest $1,637.
“So what”, I hear you say... Well, given the recent trading fiasco triggered by Nigeria’s currency collapse, I am very attentive of any signals that the African economy is pulling itself out of its 2023 recession. Ivory Coast stands as a pillar of a well-run economy. It is governed by Alassane Ouattara, a former deputy director of the IMF who has been president since 2010. He has energetically promoted his country abroad. An investment code implemented in 2018 offers tax benefits and customs waivers to investors who spend big and hire locally. Mr Ayitee, an Ivoirian hedge-fund manager and commentator, says the policies have not only boosted growth but also made the country more fun, fuelling investment in tourism and hospitality.
My thoughts naturally turned to my trading territory Nigeria, with a rapidly expanding population of 220 million, anticipated to reach 300 million by 2030. If even some of the Ivoirian policies were replicated, Nigeria’s trading potential would explode if the GDP per capita also grew to that of Ivory coast. Nigeria is an intelligent, resourceful and resilient nation, so why not?
PAXT is committed to expanding its presence in West Africa by delivery world-class pro audio solutions. A key pillar of our growth is the hospitality sector, leveraging our Q-SYS DSP platform and performance audio from JBL and QSC.
I came away from the Economist feeling sufficiently intrigued… We think Ivory Coast is poised for a step change of growth, right in our sector. So now Tokunbo Adebunmi, PAXT’s Nigeria-based Business Development Manager, is heading to Ivory Coast in May to see what we can learn.