Ivory Coast Economy Overview

Currency

CFA Franc XOF (CFA, F CFA)

Working hours

40 hours/week

Public/bank holidays

14 public holidays

Capital

Yamoussoukro

Languages

French

Population

29.24 million

Minimum hourly salary

468.75 XOF

Tax year

1st Jan – 31st Dec

Date format

DD/MM/YYYY

Misclassification penalties

The following legislative documents regulate worker classification in Ivory Coast:

  • Act #2015-532 dated July 20, 2015 (including the Labour Code)
  • The Interprofessional Collective Agreement.

Fun fact

It is home to the world’s biggest church and it is the world’s biggest exporter of cocoa beans and home to one of the world’s biggest French-speaking cities.

Ivory Coast, or the Republic of Côte d’Ivoire, is a medium-sized West African country bordering Guinea, Liberia, Mali, Burkina-Faso, and Ghana. With a population of 31.983 million, it is one of the most populous countries in West Africa. The country was taken over by France in the 1800s and only recently achieved its independence in 1960.

Since then, both its economy and population have grown considerably. At the beginning of the 21st century, the Ivory Coast’s GDP was just $14.85 billion. As of 2023, this had grown more than fivefold to $79.98 billion.

A strong 6.5% increase is also predicted for 2024. This growth has been driven by increases in both the global prices and increased exports of cocoa beans, hydrocarbons, gold, nuts, and rubber. If you’re considering expanding your business into the Ivory Coast or hiring Ivorians to work remotely, you have many options at your disposal.

This article will focus on the economy, business regulations, and the pros and cons of doing business in the Ivory Coast.

Overview of Ivory Coast's Economy

Ivory Coast shares the regional currency, the West African CFA franc (African Financial Community franc), with seven other countries in West Africa. Coded as the XOF, this currency trades at roughly 600 XOF to 1 USD. It’s used by over 100 million people in the region, which helps to keep it relatively stable.

Key Facts about Ivory Coast’s Economy
Based on services, industry, and abundant agricultural production
World’s biggest cashew and cocoa producer
Main exports: cocoa beans and refined products, refined and crude petroleum, rubber, gold, nuts, oil seeds, and raw cotton
Major export partners: Switzerland ($1.6 billion), Mali ($1.46 billion), the Netherlands ($1.43 billion), the United States ($1.08 billion), and France ($940 million) in 2022

These exports steadily increased throughout the past 20 years and helped increase the wealth of this developing nation. Ivory Coast is a low-middle-income country but one of the wealthiest in its region. However, it’s still an affordable place to hire labor.

The minimum wage in Ivory Coast is 39,960 XOF/month (67 USD) for agricultural workers and 75,000 XOF/month (125 USD) for all other workers. Highly skilled workers in managerial and executive positions, however, can expect salaries from 350,000 to 650,000 per month (585-1,085 USD). Even considering employer contributions of 15.45% of workers’ salaries, labor costs in Ivory Coast are still very affordable.

The Ivorian government encourages foreign investment as has few licensing requirements for foreign companies. According to UNCTAD’s World Investment Report 2023, the country’s foreign direct investment (FDI) stock is $13.67 billion and accounted for 19.5% of Ivory Coast’s GDP in 2022.

FDI is generally aimed at financial services and extractive industries. The main sources of FDI include Burkina Faso (11%), Turkey (7%), China (5%), France (5%), and Togo (5%).

Taxes

Employer Tax: 2.8%-12%

Payroll Tax

2.8% (Local Employees)

12% (Expatriate Employees)

Family Allowance Fund

5.7%

Industrial Accident Insurance

2% and 5%

Pension Fund

7.7%

Employee Tax: 0% – 10%

Salary Tax (IS)

1.5% (applies to 80% of gross income, withheld by employers)

National contribution (CN)

applies to 80% of gross income – rates from 0% to 10%

Income tax

Progressive rate from 10% to 60% (calculated in relation to the national contribution and the number of dependent ratios or “parts” – includes a 15% deduction)

 

Taxable base T = (Gross Income x 80% – (IS + CN)) x 85%

Gross Income (XOF)

From XOF 0 to XOF 300,000

From XOF 300,001 to XOF 547,000

From XOF 547,001 to XOF 979,000

From XOF 979,001 to XOF 1,519,000

From  XOF 1,519,001 to XOF 2,644,000

From XOF 2,644,001 to XOF 4,669,000

From  XOF 4,669,001 to XOF 10,106,000

Over XOF 10,106,000

Tax Rate

 0%

 10%

 15%

 20%

 25%

 35%

 45%

 60%

Business Regulation in Ivory Coast

Doing business in any new country includes challenges to overcome and lessons to be learned. Ivory Coast is, however, very open to foreign investment. If you’re planning to start doing business here, these are some of the regulations you’ll need to know about to make doing business easier:

Registration and Compliance

Starting a business in Ivory Coast is surprisingly easy and the country ranks 29th in the world for ease according to the World Bank. Registering a business here can take as few as four days and as many procedures.

You need to open a bank account and register with the commercial registrar (Registre du Commerce et du Crédit Inmobilier), the tax authority (Direction Générale d’Impots), and the social security institute (Caisse Nationale de Prévoyance Sociale) in a One-Stop Shop called the Investment Promotion Center in Cote d’Ivoire (CEPICI).

Then you need to create a company seal and notify the company’s address to the local tax authority.

Taxes and Investments

The corporate tax rate (CIT) for businesses carrying out industrial and commercial activities in the Ivory Coast is 25%. VAT is 18% on most goods and services. Withholding taxes are 15% for dividends, 18% for interest, and 20% for royalties for non-residents (0% for residents). Social security contributions for employers total 15.45%.

Employment Laws

Workers in Ivory Coast have their rights protected through the use of several statutes. Employees work eight hours a day and 40 hours per week in most jobs, but agricultural workers work up to 48 hours per week. They should receive one full day off per week and an annual paid leave of at least 26 working days per year.

Ivorians are entitled to 9 paid public holidays per year. Maternity leave is granted for 14 weeks and is fully paid by social security. Two days of paternity leave are granted to fathers. Employees are allowed sick leave of up to six months, with the first 1-2.5 months fully paid and extra months paid at half-scale, depending on seniority.

Employees who are terminated for reasons other than gross misconduct are given 8-60 notice, depending on seniority. Severance of 30-40% of a year’s salary is paid, depending on the worker’s total years of service.

Intellectual Property

Ivory Coast protects intellectual property rights through its domestic laws and participation in OAPI, the African Intellectual Property Organization. Copyrights last for 50 years either from their creation or after the life of the creator, depending on the type of material. Trademarks can be registered in for ten years and then renewed and patents receive 20 years of protection by law.

Benefits of Doing Business in Ivory Coast

The advantages of doing business in the Ivory Coast that should be considered when comparing places to set up shop include:

  • Solid economic growth that should continue into the future.
  • Very affordable labor.
  • Government very open to foreign investment and offers Free Zones (0% CIT for 15 years) for IT, Biotech, and fish processing firms.
  • Quick and easy to set up a new business, especially relative to other countries in the region.
  • Broad language skills with French, the official language, and 78 local languages spoken.
  • Politically and economically stable.

Business Expansion Options in Ivory Coast

If you’re thinking of expanding into the Ivory Coast or setting up a new business there, you have several different options to choose from. These include:

Ivory Coast Employer of Record (EOR)

The Ivory Coast EOR becomes the official legal employer of your Ivory Coast team. This method is fast and efficient, making it perfect for companies that need to quickly deploy staff on the ground. 

An EOR handles payroll, benefits, taxes, and compliance with local labor laws, allowing businesses to focus on their core activities. They may also provide additional services, such as Ivory Coast talent acquisition and visa support.

LEARN MORE

Recruitment Agencies

An Ivory Coast recruitment agency can help you source employees in Ivory Coast quickly and cost-effectively. Ivorian recruiters often work in tandem with Professional Employer Organizations or Employers of Record to ensure that your Ivorian team is hired and paid in full compliance with local laws.

LEARN MORE

Ivory Coast Professional Employer Organization (PEO)

If you simply wish to employ Ivorian workers without setting up a business in the country, you can work with a professional employment organization (PEO) or Employer of Record (EOR). These Ivory Coast service providers let you legally hire Ivorians by employing them on your behalf and managing their needs long-term.

LEARN MORE

Subsidiary Incorporation

The first choice for many companies is to open a subsidiary in the Ivory Coast or purchase a local business to create a subsidiary.

A limited liability company (Société à responsabilité limitée or SARL) is a good choice for most smaller organizations. To start a SARL, only one shareholder of any nationality is required. The startup minimum share capital to open a SARL is just 1 million XOF (about 1,675 USD), and liability is limited to the amount contributed to the company.

A public limited company (Societe Anonyme or SA) is a good choice for larger and more liquid enterprises. An SA needs only one shareholder of any nationality and must have a board with at least three directors. The minimum share capital needed for incorporation is 10 million XOF (about 16,750 USD). 

Free Zone SARLs can also be set up in the IT, Biotech, and fish processing industries and may pay no CIT for up to 15 years.

Branch Registration

It’s also possible to open a branch under your parent company. The parent company will have unlimited liability for the branch’s activities. Branches can be fully foreign-owned and can perform business activities such as importing and exporting goods, signing contracts, and issuing sales invoices.

Business Opportunities in Ivory Coast

Ivory Coast presents a range of attractive business opportunities across various sectors, thanks to its growing economy, strategic location, and favorable investment climate. The country’s abundant natural resources, expanding infrastructure, and supportive government policies make it an appealing destination for foreign investors and entrepreneurs.

Business Opportunities Reasons
Agribusiness Ivory Coast is the world’s largest producer of cocoa and cashew nuts, creating significant opportunities in crop production, processing, and exports.

The country’s fertile soil, favorable climate, and growing demand for agricultural products provide a strong foundation for investment in the sector.
Manufacturing Ivory Coast’s strategic location, access to regional markets, and competitive labor costs make it an attractive manufacturing hub.

Opportunities exist in consumer goods, textiles, construction materials, and other industries serving both domestic and regional markets.
Infrastructure The government’s focus on roads, ports, and energy projects creates opportunities for construction, engineering, and project management firms.

Population growth and urbanization continue to drive demand for modern infrastructure.
Renewable Energy Growing interest in sustainable development and expanding energy access creates opportunities in solar, wind, and biomass projects.

Government support and significant untapped clean energy potential make the sector attractive for investors.
Digital Economy Rising internet and mobile penetration are fueling growth in e-commerce, fintech, and digital services.

A young, tech-savvy population and government-backed digital transformation initiatives continue to support expansion in this sector.

These sectors, among others, offer significant potential for businesses looking to tap into Ivory Coast’s dynamic and emerging market. The government’s efforts to improve the ease of doing business, such as simplifying administrative procedures and offering investment incentives, further enhance the attractiveness of these opportunities.

Ivory Coast is a low-middle-income country that is developing at great speed. Investors with the foresight to enter this market now may find that they make large gains in the future when they start doing business in Ivory Coast.