Here is the translation of the provided text into English:
  1. Applicable Texts

Ordinance No. 2018-646 of August 1, 2018, on the Investment Code, as amended by Ordinances No. 2019-1088 of December 18, 2019, and No. 2024-857 of September 30, 2024, as well as the implementing decree No. 647-2018 of August 1, 2018, setting out the modalities for the 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 new activities or the development of existing 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 businesses.
  1. 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 restricted. No restrictions can be imposed 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 their investment property except for public utility reasons and under the condition of fair and prior compensation.
  • Transfers 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 in the 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.
  1. 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 applicable legislation.

  1. Eligible Sectors of Activity

A major innovation of the Code is the classification of eligible activities into two categories:

  • Category 1:
  • Agriculture;
  • Agribusiness activities related to the processing of local agricultural raw materials;
  • Health;
  • Second and third processing of wood;
  • Hospitality for investments of an amount 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 included in Category 1, except those explicitly excluded;
  • The hospitality sector for investments below the thresholds set for Category 1;
  • Agribusiness activities involving the processing of imported raw materials.

According to Article 6 of Ordinance No. 2018-646 of August 1, 2018, on the Investment Code, the following sectors are excluded from the benefits of this Code:

  • The trade sector;
  • The banking and financial sectors;
  • The liberal professions sector;
  • The construction sector for non-industrial use;

According to the new Article 6 of Ordinance No. 2024-857 of September 30, 2024, amending Ordinance No. 2018-646 of August 1, 2018, on the Investment Code, the list of exclusions above is supplemented as follows:

  • The first processing of wood;
  • Cement production;
  • The importation of butane gas bottles for filling centers;
  • The operation of concrete plants;
  • The packaging of imported products;
  • The acquisition and importation of packaging for finished products;
  • The acquisition and importation of used vehicles;
  • The rental of tarpaulins;
  • The construction and rental of various warehouses, including refrigerated or non-refrigerated, for commercial and industrial purposes;
  • The cultivation and processing of tobacco and the production of alcoholic beverages;
  • Activities that have a negative impact on human and animal health, the list of which will be defined by decree.
  1. Eligibility Thresholds

The Code maintains two (02) 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 large companies, reduced to 50 million FCFA for SMEs.
  • For hospitality activities in Category 1:
  • Zone A: equal to or greater than five billion FCFA.
  • Zones B and C: equal to or greater than two billion FCFA.
  • For hospitality activities in Category 2:
  • Zone A: less than five billion FCFA.
  • Zones B and C: less than two billion FCFA.
  • 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): 30 billion FCFA.
  • Zones B and C: 5 billion FCFA.
  1. Customs and Tax Incentives
  • During the establishment phase:
  • Category 1

Exemption from customs duties, temporary suspension of VAT, or exemption from VAT for activities not subject to VAT.

  • Category 2

Exemption of 50% from customs duties, temporary suspension of VAT, or exemption from VAT for activities not subject to VAT.

  • During the operational phase:
  • Exemption granted according to the investment zone and the size of the company in Category 1;
  • Tax credit based on the size of the company and the investment zone granted in Category 2.
  • Structuring Projects: additional benefits granted after signing an agreement.
  1. Investment Zones

Three (03) investment zones:

  • Zone A: Abidjan District
  • Zone B: Regional capitals, Bonoua, and Grand Bassam
  • Zone C: Other urban areas outside Zones A and B
  1. 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 share capital to nationals, and subcontracting.

  1. Sanctions

Non-compliance with the provisions of the Code and its implementing texts is sanctioned.

Sanctions include:

  • The payment of a fine for the investor who, after a formal notice issued by the Investment Promotion Agency, fails to provide proof of their investment within three months;
  • The suspension of benefits in case of non-payment of the above-mentioned fine, not followed by the submission of the documents requested by the Agency responsible for promoting investments, this sanction not exceeding six months;
  • The withdrawal of approval in cases where the investor who has been suspended from benefits fails to regularize their situation. Non-compliance with environmental obligations may lead to consequences for human and animal health.
  1. 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 processing 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 offers 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

Amending ordinance of the investment code

Ordinance No. 2018 - 646 of August 1, 2018, on the text related to the investment code
Texts defining the modalities for implementing the measures of the investment code

 Order on the modalities for implementing the VAT suspension

Decree on the modalities for implementing Ordinance No. 2018-646
List of urban areas Table of urban areas concerned by the 2018 Investment Code.pdf