Thursday 29 August 2024 - 12:00

Dynamic and Growth of the Telecom Market in Côte d'Ivoire

In Côte d'Ivoire, the telecommunications sector stands out as one of the most dynamic and profitable in the national economy. Since 2020, the cumulative revenues of the sector have surpassed 1,000 billion FCFA. This market, structured around nine (09) major players, includes three (03) mobile operators: Orange, Moov, and MTN, as well as six (06) telecom infrastructure providers: VIPNET, GVA, KONNECT, AWALE, MAINONE, and IHS. In 2023, the overall revenue of the sector reached 1,219 billion FCFA, marking a slight increase of 2% compared to the previous year, with total investments amounting to 244.4 billion FCFA, according to data from ARTCI. The three (03) main mobile operators continue to dominate the market, together representing 91% of the total revenue of the sector. Orange remains the leader with a revenue of 578.9 billion FCFA, a slight increase of 0.8%. The breakdown of its revenue is as follows: 205.8 billion FCFA for telephony, 208.1 billion FCFA for the internet, and 10 billion FCFA for mobile money. MTN maintains its second position with stable revenue of 333.3 billion FCFA, distributed as follows: 118 billion FCFA for telephony, 78.5 billion FCFA for the internet, and 25.8 billion FCFA for mobile money. Moov recorded the highest growth among the three major operators, with a 5% increase, totaling a revenue of 217.2 billion FCFA. Its revenues are divided into 104.1 billion FCFA for telephony, 94.5 billion FCFA for mobile internet, and 6.3 billion FCFA for mobile money. Regarding infrastructure providers, GVA stands out with exceptional growth of 316.5%, reaching a revenue of 4.2 billion FCFA. KONNECT AFRICA also showed a strong increase of 141.9%, with a revenue of 387.2 million FCFA. VIPNET experienced a rise of 114.2%, totaling 4.5 billion FCFA. AWALE recorded a growth of 22.6%, with a revenue of 3.4 billion FCFA. IHS, a key player in the sector, slightly improved its revenue, increasing from 71 billion FCFA in 2022 to 74 billion FCFA in 2023. Finally, MAINONE observed a decrease of 2.7%, with a revenue of 3.1 billion FCFA. These results highlight the strength and resilience of the segments of telephony, mobile internet, and mobile money. It is important to note that the figures related to mobile money only cover transactions made via telecommunications, not representing the entirety of the revenue generated by this service. Source: Sika finance, Web Portal MEPD Editorial Team

Monday 26 August 2024 - 12:00

The BCEAO forecasts a growth of 5.4% in the second quarter of 2024.

The report from the BCEAO, published on Monday, August 5, 2024, forecasts that the West African Economic and Monetary Union (UEMOA) is expected to experience an economic growth of 5.4% in the second quarter of 2024, a slight increase from the 5.1% rate recorded in the previous quarter. This performance is largely attributed to robust domestic demand, supported by significant advancements in strategic sectors such as food agriculture, trade, both market and non-market services, transportation, as well as construction and public works (BTP). In particular, the sectors of trade, manufacturing and extractive industries, as well as financial services have stood out for their substantial contribution to this growth dynamic.

This economic improvement occurs in a favorable context marked by the launch of new natural gas operations and an oil pipeline in several UEMOA countries, notably Senegal, Côte d'Ivoire, and Niger, thereby strengthening the region's development potential. The figures from May 2024 corroborate this trend with a 0.7% increase in industrial production and a 0.5% rise in retail sales. Market services recorded a growth of 2.3%, while financial services progressed by 0.8%.

However, the construction sector, although progressing, has experienced notable slowdowns in Mali and Niger. Nevertheless, the BCEAO expects this positive dynamic to continue with a projected growth of 5.7% in the third quarter of 2024 and an annual average of 6.1% for the entire year. However, these favorable prospects remain marred by persistent uncertainties related to security and political crises that continue to weigh on the economic stability of the region.

Source: Ecofin Agency, MEPD Web Portal Editorial Team

Wednesday 28 August 2024 - 12:00

Microfinance in the UEMOA: Increase of 64.5 billion FCFA in collected deposits despite a contraction in loans.

The BCEAO report on Decentralized Financial Systems (SFD) within the UEMOA at the end of March 2024, published on July 15, 2024, reveals several important trends, with a particular focus on the situation in Côte d'Ivoire, a key player in the sector.

In the first quarter of 2024, the SFD recorded a notable increase of 64.5 billion FCFA in the outstanding deposits, representing a rise of 2.8% compared to the previous quarter, bringing the total deposits collected to 2,356.4 billion FCFA. Year-on-year, this growth is even more pronounced, reaching 16.4%. In Côte d'Ivoire, deposits grew by 6.1 billion FCFA, an increase of 1.1% compared to the previous quarter, illustrating the continued confidence of depositors in microfinance institutions.

However, Côte d'Ivoire also experienced a slight contraction in the outstanding loans, which decreased by 25 billion FCFA, a drop of 3.9% compared to the previous quarter. This decrease is part of a regional trend influenced by a seasonal decline in household spending following the year-end festivities. Nevertheless, the outstanding loans remain in annual growth, demonstrating the resilience of the sector.

The continuous increase in deposit collection in Côte d'Ivoire reflects a growing trust among clients, as evidenced by the rise in the average amount of deposits per client. This positive dynamic, despite the contraction in loans, reinforces Côte d'Ivoire's central role in the microfinance sector within the UEMOA.

The report also highlights a crucial challenge: the deterioration of the quality of the loan portfolio. In Côte d'Ivoire, as in the rest of the Union, this deterioration calls for increased vigilance and strengthened measures to manage credit risks, an essential condition to ensure the sustainability and stability of the sector.

In summary, while Côte d'Ivoire shows solid performance in deposit collection, the need to strengthen risk management strategies remains paramount to consolidate gains and support the future growth of the microfinance sector.

Source : BCEAO, MEPD Web Portal Editorial Team

Wednesday 28 August 2024 - 12:00

Côte d'Ivoire: Mobilization of budget revenues by the end of April 2024

The tax revenues of the Ivorian state showed a robust dynamic during the first four months of 2024, reaching 2,292.6 billion FCFA (3.49 billion euros). This amount represents an increase of 8.5% (+179.7 billion FCFA) compared to the same period of the previous year, according to official figures. This level of collection corresponds to 37.45% of the projected tax revenues for the year, estimated at 6,121.40 billion FCFA in the 2024 budget. It is worth noting that in the first quarter of 2024, the Ivorian tax authorities mobilized 913.1 billion FCFA against a target of 931.2 billion FCFA.

This performance is partly attributed to an effective collection of non-tax revenues, which grew by 22% to reach 346.8 billion FCFA. As a result, total budget revenues increased by 8.9% (+224.4 billion FCFA) to reach 2,743.8 billion FCFA by the end of April 2024, despite a significant decrease in donations, which fell by 14.5% to 104.4 billion FCFA.

At the same time, budget expenditures saw a notable increase, linked to the rise in personnel expenses (+43.6 billion FCFA), operating expenses (+92.3 billion FCFA), interest on public debt (+106.3 billion FCFA), investment expenditures (+76.1 billion FCFA), and subsidies and transfers (+3.9% to 338.1 billion FCFA).

To cover the budget deficit resulting from these increased expenditures, the Ivorian government resorted to a significant loan of 3,001.3 billion FCFA (approximately 4.57 billion euros) on the financial markets.

Source: Sika finance, Editorial Team MEPD Web Portal