Action plan
Chapter 2: Continuing structural transformation of the economy
In order to achieve the status of an emergent economy, the country needs to modernise its structures so as to promote greater job creation potential. Industry and services play an important role in the economy but most Ivorians still work in agriculture, a sector which is not growing very fast. The country needs to move towards industrial activities that generate more jobs and more added value, such as more sophisticated goods, and also use the services sector better by bringing it into the formal economy and rendering it more professional.
Structural transformation will depend on how locally and internationally competitive the economy is. Becoming more competitive will require a good investment climate for the private sector and recognised quality standards. Vigorous competition between stakeholders and in all private and public markets is essential. Streamlined trade procedures are vital to help the country join global value chains and reach markets. An emergent Ivorian economy must also make the most of its land and see that all parts of the country benefit.
Expected result |
What? (Recommendations) |
Why? |
How? (Actions) |
Who? |
Country models |
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Diversified and industrialised economy |
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Efficient agriculture drives growth (ER 1) |
Improve strategic planning (1) |
Agriculture lacks inputs and skills, keeping productivity low |
More money for national agricultural investment programme (PNIA):
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Cabinet / Ministry of Agriculture Ministry of Budget Anader |
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Supply quality inputs (2) |
Develop controlled distribution chains (see experimental rice project). Set up integrated agency to ensure quality agricultural inputs and their distribution. Regularly check quality of inputs at sales-points:
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Set up unit in quality-control bodies(DPQN) or Anader |
Nigeria: National Agricultural Seeds Council Morocco: Seed and Plant Inspection Service |
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Supply quality services (3) |
Encourage accessible agricultural services in the provinces:
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Ministry of Agriculture, Anader |
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Support services growth by sector:
Develop policies and measures encouraging more use of modern agricultural techniques and mechanisation. |
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High-potential agro-industries drive growth (ER2) |
Expand processing of raw materials, especially in key sectors (4) |
Agricultural processing does not fully contribute to diversification |
Boost productivity of agricultural items through cross-sector reforms:
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Ministry of Agriculture |
Agroparks: see Malaysia model |
Rice
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Palm oil
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Cashew nuts
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Cashew nuts cluster: see India model |
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Cocoa
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Cotton
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Coffee
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Cassava
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Cereals
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Industry diversified and creating jobs (ER 3) |
Make industrial base more diverse (5) |
Industry still has few products and firms |
See how competitive labour costs are:
Construction products (cement, ceramics, etc.)
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Ministry of Industry Others: CGECI, Ministry of Economy and Finance |
Aggregate production: see Burundi project Ethiopia: textile and leather sectors Mauritius: fast-track cargo initiative |
Chemicals, pharmaceuticals
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Packaging
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Assembly Identify global value chains with opportunities related to Côte d’Ivoire’s comparative advantages and to market structures. For the manufacturing sector, target integration into global value chains through assembly activity:
Use these flagship projects in a communication and marketing strategy to attract more firms. |
China: Haier produces washing-machines with functions adapted to different Chinese markets. |
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Start strategic dialogue with private sector (6) |
Co-operation with private sector does not greatly help strategic planning |
Start systematic consultations to identify industrial diversification opportunities (chemicals, pharmaceuticals, assembly) guided by OECD suggestions.
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CCESP or Economic Management Team |
OECD policy discussion of global value chains and its Productive Transformation Policy Review |
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Industry has access to good production infrastructure (ER 4) |
Improve management and allocation of industrial land (7) |
Manufacturing has poor access to scarce industrial land |
Harmonise allocation procedures:
Improve fee collection to fund investment:
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Ministry of Industry and Mines AGEDI FODI |
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Continue developing new industrial zones (8) |
Consider medium-term privatisation of existing zones to make them more efficient (involving several private partners for different zones to boost competition). Assess potential for setting up specialised agro-industrial free zones:
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Ministry of Industry and Mines AGEDI FODI |
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Mining drives growth (ER 5) |
Increase extraction of natural resources (9) |
The country does not make the most of its natural resources |
Speed up onshore and offshore oil, gas and mineral exploration.
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Expand and diversify mining sector (10) |
Mining still contributes little to economic growth |
Continue the Grand-ouest project:
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Ministry of Industry and Mines |
Chile: world supplier of BHP and CODELCO Mozambique (MOZAL project) Ghana: Enterprise Map Policy dialogue with OECD about creation of local added value |
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Continue transparency about income from natural resources:
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Encourage local suppliers (11) |
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Services sector helps modernise economy (ER 6) |
Highlight key and priority services for development strategy (12) |
The role of services for industry is insufficiently developed. |
Carry out a survey of the services sector to identify services which are a driving force, key factors in productive firms and their potential to contribute as intermediaries to the modernisation of the economy. |
CCESP or economic management team |
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Digital economy
Tourism
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ITC areas and incubators: co-working houses in Europe, Orange FAB scheme to help SME start-ups Tourism campaign: see Colombia model |
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Transport and logistics
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China: logistics centres and regional hubs |
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Commerce
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SMEs are vibrant base of economy(ER 7) |
Make paperwork for SMEs easier with one-stop shop for information (13) |
SMEs have trouble accessing support services |
Setting up the national SME development agency (ANPME) involves:
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Ministry of SMEs, National SME Development Agency (being set up) Other relevant bodies: BSTP, FDFP, Apex-CI, MCF-PME, CNCGA, FDFP, FARE-PME, CGA, CDT, INIE |
Malaysia’s Small and Medium Enterprise Corporation Malaysia, Thailand’s Office of SMEs Promotion (OSMEP). |
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Help private sector find way to pool cost of services (14) |
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Ministry of Commerce ANPME |
Pooling examples: Germany, United States |
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Devise strategy to support high-potential SMEs (15) |
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Innovation creates value (ER 8) |
Encourage innovation adapted to emergence (16) |
Country lacks strategic planning to develop innovation potential. |
Launch national innovation strategy, which requires:
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CNRA, universities, private sector |
Ghana |
Côte d’Ivoire is nationally and internationally competitive |
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Encouraging investment climate for the private sector (ER 9) |
Ensure legal security for investors (17) |
Legal framework is sometimes obstacle for investors |
Monitor national and international competitiveness to try to improve it:
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HITOREZ project in Croatia, which updated hundreds of laws |
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Strengthen legal framework
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Help investors set up operations (18) |
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Cepici Anpme, ministries |
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Quality standards recognised (ER 10) |
Strengthen infrastructure and institutions for quality standards (19) |
Poor quality products limit access to markets |
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Ministry of Commerce, DPQN |
Structural model based on two pillars: see examples of the FDA in the United States, and in Ghana and Nigeria |
Robust competition ensures economic growth (ER 11) |
Strengthen competition regulation bodies (20) |
Ivorian economy not very competitive |
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Ministry of Trade, competition commissions, offices of prime minister and president |
New Zealand, Greece, Tanzania |
Easier trade (ER 12) |
Rise up value-chains (21) |
SMEs take little part in trade |
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Ministry of Commerce Ministry of Agriculture |
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Improve and speed up passage through scanner at Abidjan port (PAA) (22) |
Many obstacles slow down trade, especially in Abidjan port |
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Office of Prime Minister/President |
Fast-track model: Mauritius |
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Make customs more efficient (23) |
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Ministry of Budget (DGD) |
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Continue regional integration (24) |
Sub-regional co-operation insufficient |
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Ministry of Budget (DGD), Ministry of African Integration |
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Economic potential of land fulfilled (ER 13) |
Set up national land capitalisation programme (25) |
Land titles and use of rural land are very unreliable. |
Make land a national priority with national urban and rural surveying programme:
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Ethiopia, Mozambique, Tanzania, Viet Nam (see reports 1 and 2 of Multidimentional Review of Côte d’Ivoire) |
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Encourage long-term investment in agriculture with new land laws (26) |
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Economic development benefits all regions (ER 14) |
Draft nationwide development strategy (27) |
National development very focused on Abidjan. |
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MEMPD, Ministry of Agriculture, Ministry of Industry and Ministry of Mines, and Trade. |
Example: geolocation with Addressing the Unaddressed in India |
Chapter 3: Expand infrastructure to support emergence
Not all Ivorians have access yet to key infrastructure (electricity, transport, telecommunications), which hampers economic growth and development. The government has ambitious plans to invest in infrastructure, much of it with the private sector through public-private partnerships (PPP). The quality and efficiency of this investment must be given greater priority so infrastructure can sustainably support long-term development. Good governance that encourages best practices, such as transparency in project-preparation, solid public finances and competitive tendering, is vital for creating and using good and efficient infrastructure.
Expected result |
What? (Recommendations) |
Why? |
How? (Actions) |
Who? |
Country models |
---|---|---|---|---|---|
Easier access to essential infrastructure for emergence (ER 1) |
Expand capacity of public and private stakeholders (including PPP) to prepare and carry out infrastructure projects (1) |
Infrastructure and PPP are the centre of Ivorian economic development strategy and need good-quality assessment |
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CNP-PPP BNETD |
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Draft energy policy to encourage more investment in renewable energies, backed by institutional and regulatory framework (2) |
Côte d’Ivoire has large renewable energy sources that could increase access to electricity and create energy security |
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MPE CI-Energies ANARE MESUDD |
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Create incentives for private firms to use off-grid solar technology and biomass plants (3) |
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MPE ANARE MESUDD Ministry of Agriculture |
Tanzania |
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Give infrastructure planning a long-term strategic vision (4) |
Poorly conceived and planned infrastructure wastes limited public money |
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President’s office, MEMPD, Ministry of Budget, Ministry of Finance, sector ministries |
Singapore |
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Increase transparency and dialogue in planning, choosing and assessing projects (5) |
Transparency and dialogue make for better decisions in infrastructure development |
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CNP-PPP MEMPD Ministry of Budget Ministry of Finance |
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Make financing of road maintenance fund (FER) permanent and more transparent (6) |
Road network in poor shape for want of regular maintenance |
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Ministry of Economic Infrastructure FER Ministry of Budget or Ministry of Finance |
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Competitive infrastructure (ER 2) |
Tighten public procurement rules (7) |
Not enough competition in infrastructure management |
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Ministry of Budget ANRMP Office of Public Procurement(DMP) |
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Introduce more competition and incentives in electricity sector (8) |
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Ministry of Oil and Energy ANARE |
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Change regulation and structure of ITC sector to reduce prices (9) |
ITC sector not competitive enough and Internet access not affordable for many households |
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MPITC ARTCI ANSUT |
France |
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Governance in Abidjan port must deliver better performance (10) |
Abidjan port not competitive enough |
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President’s office, Ministry of Transport Ministry of Economic Infrastructure, Abidjan port |
Singapore, Netherlands(Rotterdam) |
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Review PAA’s procedures (11) |
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Offices of the president and prime minister, Ministry of Transport |
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Introduce transparent and impartial procedures and practices (12) |
Investment should be good value for money throughout life of infrastructure |
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CNP-PPP MEMPD BNETD Ministry of Finance |
United Kingdom |
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Establish independent monitoring and assessment methods during life of infrastructure (13) |
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President’s office, CNP-PPP, sectoral ministries, Court of Auditors, Ministry of Finance |
United Kingdom |
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Financially sustainable infrastructure (ER 3) |
Control medium and long-term infrastructure costs and risks (14) |
Infrastructure project costs must be anticipated |
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Ministry of Budget, Ministry of Finance CNP-PPP |
United Kingdom |
Chapter 4: Giving business and individuals access to funding
Growth of the Ivorian economy is hampered by lack of funding. The banking sector dominates the financial system but does not offer sufficient loans to businesses. Financial intermediation costs are high because of major credit risk that banks try to offset by requiring substantial collateral. Banks also do not have enough long-term capital to fund the expansion of firms. Alternative funding sources (such as leasing or the stock market) are still very undeveloped.
Expected result |
What? (Recommendations) |
Why? |
How? (Actions) |
Who? |
Country models |
---|---|---|---|---|---|
Less credit risk and better assessed (ER 1) |
Increase coverage of population through credit information office (1) |
Asymmetrical information about solvency of borrowers increases perception of risk by financial institutions |
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BCEAO, Creditinfo Volo, APBEF, large public utilities, MEF |
Singapore, Brazil, Turkey, Egypt, Morocco |
Make credit centres work better with information about firms (2) |
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BCEAO, banking commission, APBEF, MEF |
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Encourage growth of mutuals (3) |
Risk-sharing not diversified enough. |
Step 1: Set up special legal and regulatory framework (to authorise mutual guarantee associations to act as non-profit co-operatives, without much initial funding) and provide tax incentives. Step 2: Work with a sector to create experimental mutual funded by private sector.
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MEF, Ministry of Agriculture, Ministry of Trade, umbrella-organisations, APBEF, Chamber of Commerce and Industry, consular chambers, APBEF |
Italy |
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Limit number of financial statements of firms (4) |
Balance-sheets of firms often not reliable, delaying bank decisions about loans. |
Step 1: Computerise and link systems that handle financial statements (GUDEF at DGI, INS, BCEAO balance-sheet office). Step 2: Let one of these bodies manage this single inventory system. Step 3: Create online platform containing all these financial statements, open to small number of users (such as banks). |
DGI, MEF, INS, BCEAO |
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Improve auditing of SMEs (5) |
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Accountants’ association, National Accounting Council |
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Modernise certified management centres (6) |
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DGI, Accountants’ association, FIPME, MPME |
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System of collaterals works better (ER 2) |
Expand activities of commercial court (7) |
Realising collateral still sometimes a problem. |
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Ministry of Justice |
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Create national register of guarantees / collateral (8) |
Collateral system not transparent enough. |
Step 1: Include all local RCCMs in a national computerised registry of all firms (also helping to confirm their existence). Step 2: Investigate best way to set up and manage a register of collateral:
Step 3: Expand eligible collateral by merging BCEAO and Ohada rules. |
BCEAO, Abidjan court, MEF |
Ghana |
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Complete surveying operations (9) |
Hard to monitor borrowers |
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Ministry of Budget |
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National savings increase with maturity lengthened (ER 3) |
Develop locally adapted savings products (10) |
Banking sector dominated by short-term funding |
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MEF, Ministry of Budget, Ministry of Integration, sectoral ministries |
Morocco, Kenya |
Continue plan to set up deposits and consignments fund (11) |
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MEF |
France, Tunisia, Morocco, Mauritania |
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Better financial inclusion with new bank-use solutions (ER 4) |
Encourage inter-operability between mobile-phone companies for using mobile money (12) |
Financial services and products not sufficiently tailored to local conditions |
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MEF, BCEAO, ART-CI, mobile-phone companies, APBEF, consumers’ association |
Tanzania |
Experiment with system of banking agents (13) |
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MEF, Ministry of posts and ITC, BCEAO banking commission, APBEF, village chiefs |
Brazil, India, Philippines, Kenya, South Africa |
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Give institutional support for innovative financial products (14) |
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BCEAO, banking commission, Ministry of Economy |
Kenya, Philippines |
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Support lasting growth of microfinance (15) |
Financial position of biggest microfinance institution (Unacoopec) is poor. |
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MEF |
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More confidence of individuals in banking system (ER 5) |
Draft national strategy for financial education in partnership with private sector (16) |
Ivorians know little about finance |
Step 1: Assess the public’s knowledge of finance and their needs. Step 2: Formalise discussions between stakeholders, especially in banking and finance, about funding financial education programmes. Step 3: Increase public knowledge of finance, especially targeting:
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Ministry of Education, MEF, BCEAO, APBEF, media |
South Africa, Kenya, Indonesia |
Create observatory to monitor financial services quality (17) |
Banks not transparent enough |
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Senegal |
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Strengthen consumer protection (18) |
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Ministry of Trade parliament, federal consumers’ union |
Morocco, South Africa |
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Alternative funding to bank loans (ER 6) |
Encourage growth of leasing (19) |
Many SME funding solutions under-used |
Encourage firms to raise funds on stock market:
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MEF, Ministry of Budget |
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Encourage use of regional stock market (20) |
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CREMPF, BRVM, MEF |
Tunisia |
Chapter 5: Investing in the workforce through quality education and appropriate skills
Too many Ivorians still leave school without basic skills needed to take part in social and economic life and respond to the economy’s needs. Despite good progress in recent years, pre-school and junior-secondary enrolment is still too low and for those who do enrol, education is often mediocre, with results well below international standards. Teaching conditions are poor and under-qualified teachers in effect prevent acquisition of basic skills, which feeds already very high illiteracy.
To ensure quality education, considerable efforts are needed to speed up training and upgrading of teachers, and ensure good material conditions, especially in rural areas and in technical training. To make sure graduates have skills required by employers, the Ivorian education system must take account of employers’ needs, including in the informal sector. This requires a major effort to improve the status and image of technical education and to shift assessment towards practical skills acquired.
Expected result |
What? (Recommendations) |
Why? |
How? (Actions) |
Who? |
Country models |
---|---|---|---|---|---|
Better primary and junior-secondary education results (pupil enrolment and acquired skills) (ER 1) |
Improve initial teacher-training (1) |
To ensure all teachers have required skills to help all Ivorian schoolchildren consolidate and build on their acquired knowledge. |
Follow the MENET plan:
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MENET CAFOP Private schools University graduates |
Malawi, Guyana, Ghana |
Strengthen on-the-job training and skills development (2) |
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CAFOP / Directorate of schools and colleges Advisory team in each school COGES |
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Ensure geography and socio-economic background of the class do not undermine teaching quality (3) |
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MENET Ministry of Budget Ministry of Civil Service ENS, CAFOP |
Malawi Cambodia |
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Re-equip schools, focusing on sanitary facilities, classrooms and electrical power-points (4) |
Invest in material teaching and learning environment to ensure fairer access. |
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MENET Donor groups Ministry of Finance CPGES |
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Continue building neighbourhood secondary schools (5) |
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MENET |
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Make school attendance more attractive by providing school lunches and maximising range of school subsidies and other social protection (6) |
See that all families have sufficient means to keep their children in school until the end of junior-secondary school. |
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Ministry of Health, Social Affairs and Solidarity MENET Development partners (WFP) Ministry of Health, Social Affairs and Solidarity |
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Technical education supplies workforce with skills needed for economic transformation (ER 2) |
Invest in physical school infrastructure (7) |
Ensure technical education develops the skills needed in labour market |
Continue existing programmes
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MEASFP MEF donors and donor co-ordination groups |
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Involve employers more in designing technical and vocational training programmes (8) |
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MEASFP, MENET private sector, employer groups (CNA-CI, CCI-CI, CNMCI, fipme) technical ministries (Industry and Mines, Energy) Ministry of Crafts Chamber of Trades support from donors: AfDB, Arab countries, World Bank, national budget |
Senegal |
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Take further steps to change society’s image of technical training quality (9) |
Improve perceptions of technical and vocational training and increase interest in enrolling |
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METEP |
Canada, Austria, Germany |
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Ensure entry into technical education is two-way process, rather than being perceived as a dead-end after failure (10) |
Implement plans already developed
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MENET INS MEASFP / AGEPE ANPE |
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Education deficit reduced through adult education (ER 3) |
Strengthen adult literacy programmes adapted to different genders (11) |
Ensure adults who missed out on basic education can acquire it and upgrade their technical and vocational skills |
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MENET, aid donors |
South Africa, Malawi |
Chapter 6: Tax policies to create a dynamic private sector and efficient government
Côte d’Ivoire’s tax revenue is not sufficient to pay for its growing need for public investment in infrastructure, education and healthcare and the tax system is hampered by inefficiency. The government needs to modernise the system and broaden the tax base by gradually reducing dependence on customs revenue, increasing contribution of indirect taxes, eliminating many legal tax exemptions and streamlining the tax administration. Simplifying tax payment is vital to enlarging the tax base. Major long-term investment would make the administration more efficient, for example through greater computerisation and modern staff management. The extent and complexity of the system and its administration requires that reforms be based on thorough analysis.
Expected result |
What? (Recommendations) |
Why? |
How? (Actions) |
Who? |
Country models |
---|---|---|---|---|---|
Tax administration works well (ER 1) |
Modernise procedures (1) |
DGI’s limitations (staff and technical) make it less efficient |
Strengthen and modernise tax administration:
Increase potential of land tax by compiling land database linked to surveying, industrial land data and other sources. |
Ministry of Budget |
Viet Nam, Mozambique |
More transparency and taxpayer confidence (2) |
Poor administration transparency and lack of taxpayer confidence |
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Active campaign against tax fraud (3) |
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Ministry of Budget |
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Tax base broadened and simplified (ER 2) |
Reduce VAT exemptions (4) |
Tax base is narrow |
|
Government |
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Review tax incentives and exemptions (5) |
Various tax exemptions are very costly and create distortions for firms. |
Avoid granting sectors new advantages.
Mining law:
|
Government |
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Simplify and strengthen tax system (6) |
Few private sector stakeholders comply with tax rules and are not in system |
Thoroughly investigate simplifying taxes:
Begin discussions in medium-term with private sector (SMEs and informal firms) to reach balance between tax liability and advantages of joining formal sector. |
Ministry of Budget |
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Review flat-rate tax to strengthen the informal sector and stimulate growth. (7) |
|
Ministry of Budget |
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Tax system works better (ER 3) |
Bigger role for excise taxes (8) |
|
Ministry of Budget |
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Bigger role for land taxes (9) |
|
Ministry of Budget |
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Gradually reduce customs duties (10) |
Tax structure depends heavily on customs duties |
|
Ministry of Budget |
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Review income tax (11) |
Investigate how to simplify scheduler system in several stages:
|
Ministry of Budget |