Cote d'Ivoire - a quick chronology of recent events

1970s – Sometimes seen as the golden age of Cote d’Ivoire, it witnessed the boom of the cacao industry of the country. During this time however the political regime remained moderately repressive, with the single-party regime of Houphouet-Boigny

1980s- Signaled the beginning of some turbulent years for the Cote d’Ivoire. This decade saw a sharp drop in the prices of primary commodities (including cocoa which lost 2/3 of its value) and a subsequent crisis for the country.

1993 – The death of Houphouet-Boigny triggered a run of events which culminated in a fierce succession struggle between Bramane Ouattara and Henry Bedié. Bedié excluded Ouattara based on his burkine ancestry. His reign exacerbated ethnic tensions.

1999- Coup by Robert Guei

2000 - Laurent Gbagbo came to power. In this struggle, Ouattara was again left out as its candidacy was seen as non-constitutional on the basis of its Burkine ancestry and its non-Ivoirian origins.

19 September 2002 – Guillaume Soro begins an armed revolt from the North and West. He takes key cities like Bouaké. During the altercations General Guei ended up pursued and executed. By this time as well France deployed Force Licorne in an attempt to bring peace and stabilization as well as in an attempt to protect its large French community in the country.

2003 Seydou Diarra became the head of a divided government, as Prime Minister

4 november 2004 – During Gbagbo’s operation Dignité in the North, 8 French soldiers are killed. France’s retaliation in destroying the country’s air force is met with major anti-France uprisings in Abidjan in particular.

2004- new government with Charles Konan Banny

March 4 2007 – The Ouagadougou accord halts military confrontation and puts Guillaume Soro as Prime Minister of a reconciliation government. Laurent Gbagbo continues pulling the key strings in the country and his position comes out reinforced.

Late 2008, beginning of 2009 – Politics remain considerably antagonistic and tense in the country. There are still considerable amounts of weapons scattered around and the disarmament process has been difficult and controversial to say the least. The elections are on stand by waiting for the census to be finished and for everyone to get their ID but again, the process has been length and riddled with a multitude of problems. Regarding Ouattara, he is in fact running for the elections this times so the constitutional barrier of “Ivorianess” has been thankfully dropped for now.

My hope and wishes remain that everything will go smoothly with the elections and that the country’s potential can be fulfilled to its maximum as it should.

Insights from UNIWAX into doing business in Cote d'Ivoire

UNIWAX was created in 1968, it is part of the Gama Holding Groups as are for example Vlisco and GTP.

UNIWAX’s competition rests of course with the other brands of the GAMA holding groups who target however slightly different market segments. In the last few years the company has felt first hand competition from Chinese imports to Cote d’Ivoire. From all the different Gama holding brands in West Africa, UNIWAX was quickly the brand the most copied by the Chinese. Why? Because it corresponded more to the target-market within the reach of cheaper forgery than it was for example the VLISCO brand, one which targets higher-end consumers. These consumers with greater purchasing power are more copy-adverse. In the case of UNIWAX’s market segment, price competition is more important. When Chinese copies could be purchased by a third or a fourth of the price UNIWAX started running into trouble, even if the quality of these pieces was not so good. The company has even run a campaign against counterfeit products. In this campaign it tried to show consumers the differences between our real wax prints and counterfeit copies.

At the same time African consumers have now started to take notice of this and are becoming more demanding as they realize they can actually save money by buying a product with more quality that lasts for longer. In addition, the trend is for international regulation when it comes to quality standards in exported textiles to be strengthened. Increasingly Chinese businesses exporting counterfeit products will not be able to do whatever they want. Stronger regulation will only favor a company like UNIWAX.

At the end of the 1990s, Cote d’Ivoire went through a crisis, with the fall in cocoa prices, UNIWAX endured through all these stuff conditions, including the crisis in 2002 and the big crisis in 2004. UNIWAX registered positive growth even throughout these tough challenges. The strategy of the company passes through offering the consumer a product of quality loaded with maximum creativity. UNIWAX has the first centre for wax prints design in Western Africa, it creates 2000 designs per year. The company also sees as central to always seek the best price-quality ratio, adapting to the lower purchasing power in Africa. Distribution is also a focus now, Cote d’Ivoire is set to be used as a distribution platform for the region.

Regarding the Economic Partnership Agreement with the European Union, this agreement will not be particularly beneficial to UNIWAX. In fact, there is the risk that some Chinese companies or other unethical exporters and businessmen take advantage of the deal to export zero-tariff to Europe by stopping by Cote d’Ivoire and “trade launder” their goods. This already happens as well the other way around. There are products that arrive to Cote d’Ivoire from China via Germany, with German labels.

From 2006 to 2008 UNIWAX has had a positive outlook with important investments being made. The company’s headquarters is large, well-organized one can tell from visiting it that it looks after its workers; it even has a health center on the factory site exclusive for them.

Societe Ivorienne de Manutention et Transit - SIMAT

Details of SIMAT

Abidjan Rue des Pétroliers, Vridi, 15 B.P. 648 Abidjan 15. Côte d’Ivoire. Tel: (225)21.75.41.01/02/03 Fax: (225) 21.75.41.10/26 / info@simat.ci

San Pedro 01 B.P. 299 San Pedro. Côte d’Ivoire. Tel: (225) 34.71.08.86 Fax: (225) 34.71.08.87 / simatspy@africaonline.co.ci

Abidjan Airport F.H.B. 15 B.P. 648, Abidjan 15 Côte d’Ivoire. Tel: (225) 21.21.62.16 Fax: (225) 21.21.62.19 / aerien@simat.ci

1)Presentation

SIMAT stands for Societe Ivoirienne de Manutention et de Transit. It is a company that was created on May 2001 in Abidjan, Côte d’Ivoire. SIMAT is a limited private company located in Abidjan and in San Pedro and operating in the business of assistance to transport. Its specific areas are: • airfreight • stevedoring and handling • forwarding and transporting assistance • transport and storage • representation

It works with the two main maritime Ports of Côte d’Ivoire but also with the National Airport of Abidjan in assisting transportation, carrying out maintenance activities and consignation
In fact, the work of SIMAT revolves around operations of loading and unloading of ships and those connected to physical services of conventional and containerized goods in custom control areas (warehouses and open air).


• First and only Ivorian Company in the Paris Stock Exchange


After the 2001 crisis the image of Côte d’Ivoire was one of hardship and difficulty, particularly at the political level. At the local level we thought it was, at this point, important for us to try and separate ourselves from such image and show that we were, despite the problems, an extremely reliable partner. When we are talking about the Paris Stock Exchange we are talking about mundialisation, about globalisation. The image we are projecting, by being the first and only Ivoirian company listed in the Paris Stock Exchange, is one of a company with the required strength and capacity to compete against the best of its sector at the regional and international levels.


• Company objectives

The company's central mission is to provide quality service and the most optimal price-quality relation. With such objective in mind SIMAT has invested in specialized handling equipment including forklifts of 4MT, 6MT, 10MT, 35 to 45MT. Such equipment is complemented by advanced computer technology able to provide real time information on the status of goods in stock (computerized management). The business of goods handling has expanded to become a consistent service industry. SIMAT is always attempting to keep up with the most modern service techniques and tendencies in order to remain true to its original goals and aspirations.

• Structure

SIMAT’s capital is 100% Ivoirian and at the level of cadres, gender equality is very important for SIMAT. The company has as many women in the management as men.

• Activities

Stevedoring

The stevedoring /handling activity at SIMAT comprises the loading and unloading of goods, their transfer to warehouses or storage areas by workers accomplishing specific tasks so as to optimize the cadence and reduce the turnaround time.
Due to its important investments in handling equipments and the availability of a staff capable to work 7 days a week, day and night.
Consignation Service

SIMAT Consignment is made up of a motivated team trained to provide a customized service, namely:
1. tankers operations
2. general cargo operations
3. manifest / documentation
4. supervision and coordination of harbor operations
5. disbursement account
6. sea operations
7. operations at lagoon wharfs
8. on platforms
9. crew change

SIMAT Consignment shares with its partners its know-how and its in depth knowledge of harbor and sea operations as well as its knowledge of the market, the receivers, the consignors and ship-owners.

Forwarding

SIMAT offers its clientele a very good level of service. It is fast and efficient and respects the requirements of its field of activity (processes rapidly all orders and cases for all of its customers, respects the terms of delivery, communicates, listens and advises customers…)

Forwarding air

To diversify and develop its activities after having proven itself in the fields of sea, road and rail transit (but also after being urged to do so by some regular customers) Société Ivoirienne de Manutention et de Transit, SIMAT has created an agency at the airport in order to offer its current and future clientele a full range of services.
SIMAT AIR SERVICE works hand in hand with companies based in Abidjan and specialized in the freight processing and transport and owning all kinds of cargo airplanes like “Fokker F27,” “Fairchild,” and “Boeing 727” with loading capacities ranging from 5 Tonnes to 18 Tonnes placed at the disposal of customers at competitive prices.

Warehousing

SIMAT owns warehouses and quay storage areas that permit a smooth rotation during freight unloading operations. SIMAT also owns external warehouses and storage areas covering a surface of approximately 25,000 square meters in Abidjan and 10,000 square meters in San-Pédro.
SIMAT has equipped itself with all the means required to satisfy its clientele for the storage of goods and merchandises. To abide by the laws of the sector, SIMAT has contracted insurance to cover its warehouses as well as its customers’ goods.
Professional and alert people work day and night to manage physically and with the assistance of computers customers’ merchandise inventory (goods receiving – goods delivery). To achieve an efficient real-time monitoring of the inventory SIMAT has developed GESMAN - a software that enables costumers to follow in real time the position of his goods

Consolidation

In order to diversify its activities and for the sake of a permanent search of the satisfaction of the customer, SIMAT, Société Ivoirienne de Manutention et de Transit, set up a consolidation department to enable its customers to import light packages and profit by low freight prices.

• Projects

There are two key ongoing projects being carried out by SIMAT. One is the fertilizer terminal and the other is with the World food program. The project with the World Food program has been going well. The partnership with SIMAT is solid and stable. The fertilizer terminal is in turn a priority for the company. Since the Port of Abidjan is also the natural Port for countries of the hinterland such as Niger, Burkina Faso and Mali there is a real opportunity for us to make the most out of Cote d’Ivoire’s strategic location and its multimodal transport platforms. These are real assets that can allow SIMAT to put its services in the frontline of the current efforts to link these countries to the networks of the international economy and trade in goods. The fertilizer terminal project is in fact one with a great potential given the envisaged evolution of the demographic and economic indicators of the greater regional setting around Côte d’Ivoire that is also being served by the Ports of Abidjan and San Pedro.

APSNET - Abidjan Port Synergie

In Côte d’Ivoire APS deploys a Port Community Network. Focusing on Port Operations, APS has put together the interface for shipping lines, Customs, the Port Authority, Controlling Agencies, Container Terminals, Port gates. Manifests, Arrival Notices and Request for ship movement. APSNet provides a full private network to ensure a rapid, safe and reliable exchange of data.

In conjunction with GCNet, APSNet also provides one of the first Customs-to-Customs interface in order to enable both Ghana Customs and Côte d’Ivoire Customs to exchange transaction data of consignment travelling from one country to the other. One of the important objectives of APSNet is to provide traders located in the northern landlocked countries, real-time information on the clearance status and location of their goods. This will provide importers and exporters in Mali, Burkina Faso and Niger full visibility on the status of their goods thus saving substantial time and money. APSNet is formed by the following shareholders: Port Autonome d’Abidjan (PAA), Fédération Maritime de Côte d’Ivoire (FEDERMAR), Office Ivoirien des Chargeurs (OIC) and SGS.

The signing of the Côte d’Ivoire-European Union Economic Partnership Agreement

The drivers of the economic growth of ECOWAS area are, among others, employment and investment. The potential is there with a market of 300 million people, vast natural riches and considerable geostrategic importance. For now and after some markedly turbulent years with political conflict around the whole region, ECOWAS now seeks above all stability. A stability that is a pre-condition to any attempt at integration. 2009 will be a landmark year for the economic history of the region as free circulation of its citizens is expected to come into place.

It was the final objective of the EU and Cote d’Ivoire officials have worked in the terms of the Economic Partnership Agreement (EPA) with the whole region, such was not possible. Catherine Ashton, European Trade Commissioner was not at the signing of the EPA and it was in fact the French ambassador in Cote d´Ivoire, M. André Janier, signing on behalf of the EU and Mr. Koné Amadou, Minister of Integration and a key player in the success of the negotiation. It remains unclear if the absence of Catherine Ashton was a sign of a certain lack of appreciation by the EU Commission of the significance of the agreement. Messieur André Janier brought attention to three particular points: first that the EU remains, by far, the first commercial partner of the Cote d’Ivoire; secondly, that the deal represented a win-win situation for the two trade partners; thirdly, that all the key forces of the Cote d’Ivoire had participated in the negotiation process, including representatives from Civil Society.

The deal itself will allow Cote d’Ivoire, one of three non-LDC countries in West Africa (Ghana, Cote d’Ivoire and Nigeria), to keep exporting to the EU at zero-tariff. In return the Cote d’Ivoire will be progressively opening its markets over the next 15 years to European products, progressively complying to the guidelines of the World Trade Organization. The deal has been divisive of African political opinion with some considerable voices, such as Cameroon, condemning the deal as being European-dominated. The group of Least Developed Countries however have less to worry about than non-LDC countries since they benefit from the “everything but arms deal”, an accord that circumvents the zero-tariff inclining tendencies promoted by the WTO and gives the opportunity for this group of countries to keep exporting at zero-tariff to the EU market. Koné Amadou, Cote d’Ivoire’s minister of Integration expects the deal to accelerate the sub-regional and regional integration of West Africa but also recognizes that there have been difficulties regarding the implementation of the free circulation of people and products.

Groupe SIFCA - Cosmivoire

The agro-industrial group SIFCA produces three different sub-products:rubber, sugar and oil products (particularly palm-oil). Some of the most important buyers of its rubber for are, among others, groups such as Firestone and Michelin. While rubber production is destined to the world market, sugar and oil are targeting the West African Economic and Monetary Union but the company is also looking for ways to access all the whole ECOWAS market. For sugar the demand is growing slowly while for soap and palm oil, its global presence still pales in comparison to Asian companies. The company has suffered directly from instability in West Africa in general and Liberia in particular. The company at the end of 2008 is also looking for regional and international partners.

Regarding the activities of one of CIFCA’s subsidiaries, Cosmivoire, the company’s CEO, complains about the malpractices of some competitor palm oil exporters in Nigeria. These exporters first import palm oil from Asia or Brazil, then they alter it slightly by mixing it with locally-produced oil or additives. Doing so is cheap and automatically renders the palm oil as a “local product” and from there on entitled to the benefits of being exported from a zone franque to Europe. This process of “trade laundering” is extremely negative for companies which are in fact comprehensively producing and manufacturing a product from start to finish and contributing to the real growth of Cote d’Ivoire’s economy.

Ivoiral – Groupe TIGA

The big challenge for the West African region remains the perspectives for the export of its goods. Strikingly it takes longer for goods to be transported from the hinterland of West Africa to Abidjan (for example, from north Nigeria, Cameroon or Mali), than from Europe and Asia to a company operating in Abidjan. This makes it very hard for a company such as Ivoiral to buy products form Cameroon for example. In addition, logistics, customs bureaucracy and transportation of goods from ports such as those of Luanda and Pointe Noire are often troublesome and detrimental to business. In addition, energy and electricity are extremely expensive in Cote d’Ivoire. This is particularly concerning for the production and manufacturing of aluminum products which consume large amounts of energy.

The company has had problems in Nigeria, and went through a merger in 2005. Nigeria is a competitor. European companies like Arcellor have the know-how. The company in turn makes use of local labor but also takes advantage of cheaper primary goods. The company is now seeking for a greater integration of the regional market in order for economies of scale to be possible. In Africa, Ivoiral needs to adapt the market segment of its sales to lower incomes but is trying at the same time to comply to European standards in order not to lose out in export opportunities. Some problems faced within Côte d’Ivoire are the infrastructure, namely the route system as well as the complexity and bureaucratic nature of the tariff system. In fact, smaller companies competing with Ivoiral are often able to avoid tariff and bureaucratic barriers of trade very easily by informal and often illegal methods but for larger companies such as Ivoiral, such would never be an option given not only its modus operandi but its exposure and cheer size. The company’s year turnover is of 30 billion CFA.