Ivory Coast is one of the most dynamic countries in the world. It has an economic growth averaging 8% since 2012, a growth forecast of around 7% until 2023, and control inflation at around 1%, according to the IMF.

With a population of nearly 25 million, Ivory Coast is the WAEMU’s cornerstone (West African Economic and Monetary Union). The WAEMU is a single market of eight countries and 110 million people, with a common currency CFA franc. It’s linked to the euro and eliminates exchange rate risk for exporters and investors from the eurozone.

The energy and electricity sector in Ivory Coast

Ivory Coast is the main electricity producer in the WAEMU zone. It is engaged in an ambitious infrastructure programme to become the energy hub of ECOWAS (Economic Community of West African States). This includes Ghana and Nigeria among its 15 member states.

Ivory Coast currently exports 14% of its production to Togo, Benin, Ghana, Mali, Burkina Faso and Liberia. Not surprisingly, Ivory Coast is one of the main drivers behind the creation of the West African Power Pool (WAPP), a regional electricity market that will allow it to increase its exports to the 14 interconnected countries.

With its installed capacity of 1,383 MW in 2010, which increased to 2,199 MW in 2017, the government plans to reach 4,000 MW in 2020 and 6,000 MW in 2030. It focuses on the increasing use of renewables, which are expected to account for up to 42% of the global energy mix in 2030 (16% if hydropower is excluded).

However, despite recent significant investments, the imbalance between supply and demand is high and access to electricity remains structurally low due to the inadequacy of the transmission system and barriers to grid interconnection.

To address these problems, various programmes funded by the Ivorian government, multilateral organisations, international development agencies and the private sector included:

• The National Rural Electrification Programme (PRONER in french), which aims to electrify all towns and villages in the country
• The Electricity For All Programme (PEPT in french): facilitating access to electricity for one million households by subsidising their connection to the electricity network.
• The Ivorian Electricity Network Development and Rehabilitation Project ( PRODERCI in french): launched in July this year for €700 million and funded by China.
• ENERGOS (I and II):  worth €310 million financed by the European Bank and the European Development Fund (EDF). This project aims to promote the legal framework of the electricity sector, strengthen the connection of low-income households to the network, improve dispatching facilities, extend the electricity transmission network and improve public lighting.

Ivory Coast has been a pioneer in sub-Saharan Africa by liberalising its electricity sector and granting the Ivorian Electricity Company (CIE in french). The CIE is a monopoly over the transmission, distribution, marketing, export and import of electricity in the country.

On the other hand, there are currently three independent power producers (IPPs) responsible for almost 75% of the country’s total production, through thermal power plants fuelled mainly by natural gas. 

In order to meet the growing national and international demand for electricity, estimated at +10% per year, the Government is increasing agreements for the construction of at least two new combined cycle power plants.

 In addition to the expansion of two existing plants for a total of almost 1. 000 MW, there will be the construction of seven hydroelectric power plants and several biomass (agricultural waste) power plants. For example, the Biovea project (2 x 23 MW) led by the agro-industrial group SIFCA, several photovoltaic solar energy projects, and the construction of a liquefied natural gas (LNG) import and regasification factory. This will guarantee the supply of existing and future thermal power plants.

Hydrocarbons in Ivory Coast

Considering hydrocarbons, Ivory Coast currently produces 40,000 barrels per day of crude oil and about 240 million cubic feet of natural gas.

All of the natural gas is used for electricity generated by existing thermal power plants, making it a captive market, ideal for investors.

Ivory Coast’s sedimentary basin is still rich in exploration opportunities, which the government is trying to promote internationally. The Ministry of Petroleum and Energy has signed several agreements for the exploration, exploitation and distribution of hydrocarbons with various foreign and Ivorian companies. Investments exceeded one billion euros until 2020.

Business and investment opportunities in the energy sector in Ivory Coast

In its commitment to boost the country’s economic growth and consolidate its role as the economic engine of West Africa, there is no doubt that Ivory Coast offers enormous business and investment opportunities for companies in the energy and power sector. In fact, following the 2016 Paris Agreement, the Ivorian government was one of the first to identify private sector investment opportunities in this area. The World Bank Group’s International Finance Corporation (IFC) estimating them to be worth a total of US$23 billion, which it will help cover.

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