Most people know Ivory Coast or Côte d’Ivoire as the world’s largest producer of cocoa, but it is also one of the fastest-growing economies in Africa. The country has shown remarkable resilience despite global and regional challenges, maintaining an impressive 6.5% average GDP growth between 2021 and 2023. 

Ivory Coast’s economic outlook remains strong, with the same growth rate projected for 2024. The momentum is fueled by significant public and private investments, as well as a thriving domestic market.

Over the past few years, Ivory Coast was best known as the world’s top exporter of raw cashew nuts, supplying over a quarter of the global market. The country has since stepped up its game. In just a decade, processed exports have skyrocketed from 9% to 30% of total production, now surpassing 330,000 tons.

Ivory Coast has a workforce of over 11 million, which works in various sectors, including but not limited to agriculture, industry, and services. The labor force participation in the country is pretty high, with 65.79% of the population aged between 15 and 64 being employed. Over the years, the cumulative participation of the population in economic activities is expected to take Ivory Coast’s GDP to USD 133.76 billion.

Here’s how the three main segments (industry, agriculture, and services) contribute to the country’s GDP:

Sector Percentage of GDP
Agriculture (mainly cocoa and cashew nuts) 14.36%
Industry (including oil refining, mining, and construction) 23.89%
Services (tourism, telecommunications, banking, etc.) 54.56%

For businesses planning to expand their operations in the Ivory Coast, another good news, besides the active workforce and a growing GDP, is the country’s export partners.

Switzerland is the main importer of Ivory Coast goods, comprising 9% of the country’s total exports. It is followed by Mali (8%), the Netherlands (8%), the United States (6%), and France (5%). The country has a decent export volume with a valuation of around USD 20.26 billion.

While there’s no denying the business opportunities that Ivory Coast has to offer, establishing a business in the country still comes with its fair share of challenges. Among them is the complexity of administrative compliance in terms of business registration, tax payments, payroll management, and labor regulations.

A PEO in Ivory Coast can help you in this aspect by acting as your local employer of record. Below, we explain how this works.

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Why Work With a PEO in Ivory Coast?

Ivory Coast, due to its strategic location in West Africa, enjoys the benefits of being a trade hub. The World Bank calls Ivory Coast the “economic engine” of the region since it contributes over 39% to the West African Monetary Union (WAEMU) GDP.

WAEMU is one of the largest economies in Sub-Saharan Africa, which makes Ivory Coast’s geographical location a competitive advantage for businesses looking to access other West African markets. That’s why international companies use the country as a base for their operations and regional headquarters.

However, these companies usually need assistance from a PEO in Ivory Coast for the following reasons.

Penetration Into the Local Market

A PEO in Ivory Coast would be familiar with the country’s cultural norms, laws, and regulations, making it easier for foreign companies to understand them. They can also assist in market research and catch you up to speed on recent partnerships and other ventures.

Ivory Coast actively encourages foreign investment by offering attractive tax incentives aligned with its 2021-2025 National Development Plan (PND). The government is also working hard to improve its global ranking to make doing business easier.

Plus, the Investment Promotion Agency (CEPICI) has launched a help center and one-stop shop to assist English-speaking investors in entering the Ivorian market. Key focus areas for growth include the digital economy, expanding electricity generation through hydro, solar, and thermal energy, and creating more job opportunities for the country’s youth.

There’s also a massive potential for entering agribusiness, particularly in value-added processing. Some of the most promising sectors include cash crops such as cocoa, cocoa, cashews, rubber, cotton, palm oil, rice, and tropical fruits like mangoes. Regardless of the sector you’re interested in as a business, a locally-versed PEO can help you throughout the process.

For example, they can help you set up a local entity. They may also help you benefit from federal tax incentives and other initiatives for foreign direct investors. As a result, your company saves a lot of time and resources otherwise spent on navigating the local bureaucracy.

Compliance With Local Labor Laws

The Labor Code (Act 2015-532) governs the rules for employees, including standard work week, minimum wages, working hours, and leave entitlements. It’s imperative for both local and foreign companies to comply with the labor laws to avoid legal consequences.

To start, the standard work week in the country is set at 40 hours per week, spread across 5 days. There are two minimum wages in Ivory Coast, namely Salaire Minimum Interprofessionnel Garanti (SMIG) and Salaire Minimum Agricole Garanti (SMAG). The SMIG applies to non-agricultural workers, while the SMAG applies to those in agriculture.

As for December 2022, the minimum wage stands at 75,000 CFA francs (approximately USD 118.6) per month for the SMIG and 36,000 CFA francs (approximately USD 56.9) per month for the SMAG (unchanged since 1994). Every three years, the amounts are reviewed by the Consultative Labor Commission.

Then, there are additional labor laws like maternity and paternity protections. Women get 14 weeks of maternity leave at full pay, while men have no such entitlements. Employers may offer anywhere from 3 to 10 days of paternity leave.

All these laws can get overwhelming for businesses, especially foreign companies, who already have a lot on their plates. A PEO in Ivory Coast can handle these administrative tasks on behalf of the company. Besides advising businesses on labor laws and compliance, a PEO can also handle benefits administration.

Payroll Management

Possibly, the most critical role of a PEO is payroll management. As mentioned, the minimum wages for employees in Ivory Coast differ across sectors. You want to make sure you’re meeting the legal requirements of your industry with the right amount on every pay stub.

A PEO can keep track of employee hours, calculate wages, distribute salaries, and create reports for compliance purposes. Plus, they can manage tax withholdings and contributions to social security and healthcare funds on behalf of the company. Payroll taxes are levied at 12% for expat employees and 2.8% for local employees on the taxable salary.

Both employers and employees also have to contribute to Ivory Coast’s social security system, called the Caisse Nationale de Prévoyance Sociale (CNPS). While the employer has to pay 7.7% of the taxable salary, the employee contributes 6.3%. Other contributions include work injury insurance (2% to 5%) and family allowances of 5.75% of gross salary.

If the employer fails to meet the deadline for these contributions and taxes, they can face a penalty of 10% of the amount due. The charges increase by 3% for every additional quarter.

As a new business, the last thing you want is the extra hassle and the risk of penalties. A PEO will accurately calculate and manage all these payments and remit them on time. They will also handle any disputes or issues with the Social Security office, saving you time and stress.

Access to Local Talent

Like most countries in West Africa, the Ivory Coast also has a relatively low literacy rate, with 55.5% of girls and 60.2% of boys completing secondary education. The English proficiency rate in the country is also quite low. Ivory Coast ranks 23rd out of 24 countries in Africa.

Due to these reasons, it can be hard to locate and recruit top talent in Ivory Coast. A PEO can assist with this process by using their local knowledge and resources to find the best candidates for your business needs. Some PEOs also offer training and development services.

So, they train your employees in the skills and knowledge necessary for your business. With the PEO managing everything from recruitment and onboarding to training and payroll management, you have sufficient time to focus on core business operations.

How to Choose the Best PEO in Ivory Coast?

Despite its growing popularity due to the European Union’s partnerships like the Economic Partnership Agreement and the Global Gateway Strategy, Ivory Coast is still a relatively new market for PEOs.

So, it may be a bit challenging to find the best PEO for your business needs here. Consider these factors to make an informed decision.

1

HR and Additional Services

Some basic services that most PEOs provide are payroll and benefits administration, recruitment and onboarding, compliance management, and risk management. Make a list of all the services you need. Then, as you narrow down your PEO options, make sure that they offer all the services you require.

If you need additional services that are not standard among PEOs, such as employee training or performance management, inquire if the PEO can provide them. You may also ask for references from other businesses that have used their services.

2

Industry Experience

Ivory Coast is known for its agricultural sector. However, that doesn’t mean every business is in agriculture. The country is focusing on other industries like energy and manufacturing, too.

It is also a popular venue for international events like the 2024 African Cup of Nations and the Africa-CEO Forum. So, there is room for business growth in non-traditional industries, too.

If your business operates in one of these industries, select a PEO whose experience goes beyond agribusinesses. You can share your business goals with the PEO and ask them if they can help you achieve them. If they have prior experience in your industry, they may also share relevant case studies with you.

3

Support for Payment Methods and Languages

The primary language of the Ivory Coast is French. However, English is also widely spoken in the business community. If your company operates in different languages, your PEO should be able to adapt and provide support in those languages.

Also, make sure that the PEO can accommodate different payment methods, such as direct deposit or paper checks. It’s even better if they can pay your employees in different currencies to avoid conversion fees.

4

Tools and Technologies

Modern PEOs automate payment processing and reporting with dedicated software. Many of them have centralized platforms where you can view and manage all employee information across countries.

In simple words, if you have employees in multiple countries in West Africa, you can manage all of them using one platform. Some PEOs also use cloud-based HR management systems to streamline the onboarding process for new employees. The software also keeps a record of important documents like contracts and certifications.

Ask the PEO about their technology suite and whether it can integrate with your existing system (if needed). It’s best if they can give you a demo before you commit.

5

Pricing Structure

Besides services and industry experience, one of the most important things to keep in mind when selecting a PEO is the pricing structure. Typically, PEOs charge a percentage of your total payroll. For example, if the PEO charges 4% and your monthly payroll is USD 10,000, you’ll pay an additional USD 400.

However, some PEOs may offer a flat fee per employee or a combination of both percentage and flat fees. A per-employee pricing structure can be more cost-effective for small businesses compared to a percentage-based fee.

Review the PEO’s pricing structure before signing a contract. You should also ask which services are included in the fees. Some PEOs offer add-ons at an additional cost, so it’s important to know what you’re getting and how much you’ll be paying.

Set Up Your Business in Ivory Coast With a PEO

The current interest in West Africa as a business destination has led to an increase in foreign investments and the demand for global expansion solutions. However, starting a business in Ivory Coast requires a thorough understanding of the country’s payroll, tax, hiring, and labor laws.

A PEO in Ivory Coast is the ultimate solution for businesses that want to make their mark in the country without spending too many of their in-house resources on navigating the complex labor laws. However, finding a reliable PEO that aligns with your business objectives can be difficult.

Unsure which PEO to pick in the Ivory Coast? Contact Remote People, your trusted PEO, to be the best solution for your business. We provide top-rated PEO services that help unlock your business potential in the Ivory Coast. Reach out today to get started!

Frequently Asked Questions

Many PEOs assist in sourcing bilingual talent, especially for roles in international business, customer service, and managerial positions. They can also train these employees to make them proficient in English and other necessary business skills.

Onboarding can be completed in a few days, as the PEO already has the legal framework. Many of them also have pre-employment checks to make sure the candidates are qualified and suitable for employment.

A PEO helps lower overhead costs by eliminating the need for a local entity, an in-house HR team, payroll software, and a complex legal setup. They can also minimize the risk of penalties due to non-compliance, which further saves costs in the long run.