Ivory Coast Rises: Economic Growth, Oil Discoveries, and a Booming Stock Market

The world’s largest producer of cocoa, an annual GDP growth of +6.8% over the past decade, a stable currency pegged to the euro and increasing oil output.

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Ivory Coast, a pillar of the West African Economic and Monetary Union (WAEMU), embodies a model of resilience and economic progress. 

Despite past political challenges, including a civil war in early 2010, the country has strengthened its stability and democratic processes, creating a conducive environment for economic growth. 

With a population of over 27 million, the nation has transformed its economy, showing a steady annual growth of 6.8% and an expanding stock market that has garnered global attention from investors.

Overcoming Economic Challenges

As the world’s leading producer of cocoa, Ivory Coast has maintained impressive economic growth with an annual GDP growth rate of 6.8% over the past decade. Even during the global slowdown caused by the COVID-19 pandemic, the country recorded a growth of 2% in 2020, outperforming many African nations. 

The latest report from the African Development Bank describes it as one of the best-performing economies in the region, with a projected growth of 6.5% in 2024 (according to the IMF).

The Bourse Régionale des Valeurs Mobilières (BRVM), a regional stock exchange shared with other WAEMU countries (Senegal, Burkina Faso, Niger, Togo, Benin, Mali, Guinea Bissau), has seen its market capitalization increase by 40% over the last five years, with significant participation from Ivorian companies. 

In 2022, the BRVM reached a trading volume of over $2 billion, demonstrating the growing interest in the country’s capital market.

Currency Stability, Energy Discoveries, and Positive Economic Projections Attract Investors

The CFA franc pegged to the euro, offers exchange rate stability, countering the volatility affecting other African currencies, such as the Nigerian naira, which lost nearly 70% of its value against the dollar in a year. 

This stability, combined with recent oil and gas discoveries, spurred by a significant find by the Italian company Eni, has intensified investor interest, projecting a future of growing oil production. 

The visit of Italian President Sergio Mattarella underscores the strategic importance of Italian-Ivorian relations, with projections envisioning oil production increasing to 200,000 barrels per day by 2026. 

With a forecasted growth of 6.8% between 2024 and 2025, driven by hydrocarbon production and infrastructure investments, a reduction of the fiscal deficit to 3.5% by 2025 is expected, compared to 5.6% of GDP in 2022. 

This consolidation is supported by effective government commitment recognized by international financial institutions.

Growing Demand for Financial Products

The economic expansion of Ivory Coast is stimulating demand for innovative financial products, leading to the emergence of platforms like Daba Finance. 

“The lack of investment platforms focused on the Francophone West African region and the need to efficiently channel over $5 billion annually sent by the African diaspora to be invested in the continent, have led to the creation of Daba Finance,” says Anthony Miclet, Italian co-founder of Daba Finance.

Recently launched in the American and African markets, Daba Finance is a platform designed to meet the needs of investors seeking exposure to this dynamic market, offering investment opportunities in stocks, bonds, and African startups. 

“The outdated and fragmented infrastructure of African capital markets makes it difficult for anyone to access high-quality investment opportunities on the continent. Daba aims to bridge this gap by providing a unified and user-friendly platform for investors interested in Africa,” adds Anthony Miclet.

With its focus on Francophone West Africa, particularly Ivory Coast, Daba Finance positions itself as a key entry point for investors looking to capitalize on the region’s economic growth prospects, stability offered by the CFA franc, and attractive dividends, ranging from 8% to 10%, offered by large companies listed on the BRVM such as Orange and Sonatel.

Thanks to sustained economic growth, a rising stock market, currency stability, and significant oil discoveries, Ivory Coast remains an excellent investment opportunity in Africa, maintaining its trajectory as a regional economic powerhouse.

This article was first published in Milano Finanza.