Political risk weighs on Cote d' Ivoire's growth outlook - Analysts

Cote d'Ivoire's economy is projected to grow by approximately 7.9% in 2017, making it one of the fastest-growing economies in Africa. However, analysts warn that prolonged political uncertainty could hinder investments and negatively impact economic growth in the region. Charles Kie, CEO of EcoBank Nigeria, recently discussed the economic prospects for the West African nation in an interview with CNBC Africa. Kie highlighted the challenges facing Cote d'Ivoire, including recent political turmoil and social unrest, such as the resignation of the Prime Minister, skirmishes with mutinous soldiers, and civil servants protesting unpaid salaries. These issues have raised concerns about the country's ability to sustain its economic growth momentum. Kie emphasized the importance of managing public expectations, as the population's patience is wearing thin due to years of crisis and slow progress in addressing poverty and inequality. He noted that economic growth driven by investments and infrastructure development takes time to translate into tangible improvements in living standards for the population. Kie drew parallels with Nigeria's past experience of high growth rates without significant development impact, underscoring the need for effective communication and strategic policies to bridge the gap between economic growth and social progress. While acknowledging that Cote d'Ivoire has made strides in economic recovery, Kie stressed the importance of long-term stability and peace for sustainable growth. He highlighted the need for the government to create an enabling environment for businesses and address security concerns to attract investment and foster economic diversification. One key area of focus is the agriculture sector, particularly the cocoa industry, which has traditionally been a primary driver of the country's economy. Kie urged Cote d'Ivoire to adopt a strategic approach to economic diversification and value chain development to reduce its reliance on cocoa exports and enhance competitiveness in other sectors. He emphasized the potential for regional integration within the Economic Community of West African States (ECOWAS) to boost inter-regional trade and collaboration, calling for more concerted efforts to leverage the region's economic potential. Overall, Kie remains cautiously optimistic about Cote d'Ivoire's economic prospects, citing the country's historical resilience and diversified economy as key strengths. However, he underscored the importance of addressing political risks, promoting good governance, and implementing targeted policies to drive sustainable and inclusive growth in the long run.