Critical issues for American investors in Cote d"Ivoire

Today, however, the country"s investment climate is deteriorating. Profitability is diminishing, taxation has increased, and there is a growing likelihood that the CFA franc may be devalued in the near future. Political unrest has also increased, although this is considered to be a predictable side effect of opening the political process rather than evidence of serious instability. This report summarizes the pros and cons of U.S. investment in Cote d"Ivoire, with regard to the country"s political background, economic performance and outlook, investment climate, infrastructure, foreign trade and balance of payments, external debt and aid, labor, financial sector, inflation and price controls, public finance, and intellectual property protection. Three characteristics are identified as crucial to the success of an American venture: (1) partnership with a local firm, (2) finding a niche market where American technology is regarded as superior, and (3) sufficient local demand. Opportunities appear especially strong in the areas of tropical food processing, computer electronics and telecommunications, horticulture, cosmetics and health-care products, agricultural chemicals, and industrial equipment. Major constraints to doing business in Cote d"Ivoire include the enormously high cost of living and the growing exodus of U.S. service firms (accountants, banks) from the country.