1. Applicable Texts
Ordinance No. 2018-646 of August 1, 2018, establishing the Investment Code, amended by Ordinance No. 2019-1088 of December 18, 2019, as well as Decree No. 647-2018 of August 1, 2018, setting the terms of application of the said Code.
The Investment Code is a legal framework designed to encourage investment by granting tax and customs benefits to any natural or legal person investing in sectors targeted by the State of Côte d'Ivoire for a new activity or the development of activities.
Its purpose is to promote:
- sustainable development through productive and socially responsible investments in Côte d'Ivoire;
- regional development;
- local content;
- the competitiveness of enterprises.
2. Guarantees Granted to Investors
The Code maintains several essential guarantees for investors:
- Freedom of Investment: investors can freely choose their sectors of activity without excessive restrictions.
- Stability of Benefits: tax and customs benefits are guaranteed for a specified period, ensuring essential predictability.
- Fair Treatment: subject to bilateral, regional, and multilateral agreements signed by the State, foreign natural and legal persons receive fair and equitable treatment regarding the rights and obligations attached to their investments.
- Access to Foreign Currency: access to foreign currency is not limited. No restrictions can be placed on investors for obtaining the foreign currency necessary for their activities.
- Protection of Private Property: property rights are protected by law, providing legal security. No investor can be deprived of ownership of their investments except for public utility reasons and under the condition of fair and prior compensation.
- Transfer of Remunerations: investors can freely transfer their profits and other remunerations, facilitating the financial management of international investments.
- Freedom of Access to Raw Materials: the freedom of access to raw or semi-finished materials produced on national territory is guaranteed to all investors. If necessary, the State takes the necessary measures to ensure the effective exercise of the freedom of access to raw materials.
3. Obligations
The benefits granted by the Code are subject to the company's compliance with all its tax, social, and environmental obligations, in accordance with the legislation in force.
4. Eligible Sectors of Activity
A major innovation of the Code is the classification of eligible activities into two categories:
- Category 1: Agriculture, agro-industry, health, and hospitality (investment equal to or greater than 5 billion in Zone A; equal to or greater than 2 billion in Zones B and C). These sectors are prioritized due to their direct impact on the local economy and their job creation potential.
- Category 2: All other sectors not falling under Category 1, except those explicitly excluded such as trade, the banking and financial sector, non-industrial construction, and liberal professions.
The list of activities in the excluded sectors (see Article 3 of the implementing decree of the ordinance).
5. Eligibility Thresholds
The Code maintains two incentive regimes: the declaration regime and the investment approval regime.
- Declaration Regime: no investment threshold is required, facilitating the entry of small and medium investors. The incentives offered apply only to the operational phase.
- Approval Regime: the minimum required investment thresholds are defined as follows:
- General Investment: 200 million FCFA for all companies, reduced to 50 million FCFA for SMEs.
- Structuring Projects: Investment thresholds set according to geographical zones:
- Zone A (Abidjan District): 100 billion FCFA.
- Zone B (Regional capitals including Bonoua and Grand-Bassam): 50 billion FCFA.
- Zone C (Other urban areas outside Zones A and B): 15 billion FCFA.
- Large Shopping Centers: Investment thresholds set according to geographical zones:
- Zone A (Abidjan District): 10 billion FCFA.
- Zones B and C: 5 billion FCFA.
6. Customs and Tax Incentives
- During the Implementation Phase: exemption from customs duties, suspension or exemption from VAT aimed at reducing the cost of investment.
- During the Operational Phase: exemptions in Category 1, in favor of companies operating in the priority sectors of the National Development Plan (PND) and tax credits in Category 2. These incentives aim to improve the profitability of projects.
7. Local Content
The Investment Code encourages local content. As such, it provides additional benefits to investors meeting these criteria. Indeed, large foreign companies eligible for the benefits of the code, belonging to Categories 1 and 2, are entitled, in addition to these benefits, to tax credits provided they implement a local content policy focusing on job creation, opening up capital to nationals, and subcontracting.
8. Sanctions
Non-compliance with the provisions of the code and its implementing texts is sanctioned. The sanctions include notably:
- the payment of a fine;
- the suspension of benefits;
- the withdrawal of approval.
9. Perspectives and Impact
This legal and fiscal framework reflects Côte d'Ivoire's commitment to enhancing its attractiveness to investors by creating a favorable business environment. By supporting productive and green investments, as well as the transformation of local raw materials, the country aims to stimulate sustainable economic growth and diversify its economy. Furthermore, the creation of sustainable jobs, technological innovation, and the production of competitive goods for domestic and foreign markets are among the strategic priorities of the current Investment Code.
In summary, the Investment Code of Côte d'Ivoire is an essential tool for energizing the national economy, attracting foreign capital, and promoting the development of key sectors. It provides a transparent and stable framework for investors while supporting the country's sustainable development and economic transformation objectives.
|
Documents |
Download |
|
Texts related to the current investment code |
|
|
Ordinance No. 2018 - 646 of August 1, 2018, concerning the text related to the investment code |
|
|
Texts defining the terms of application of the measures of the investment code |
|
|
Decree on the terms of application of Ordinance No. 2018-646 |
|
|
List of urban areas |
Table of urban areas concerned by the 2018 Investment Code.pdf |