A Bit More Detail

Bloomberg's Olivier Monnier reports that, at least officially, Côte d'Ivoire has no concerns with potential negative consequences for its exports coming from the pegging of the CFA franc to the Euro.

Ivory Coast’s economy has benefited from the stability of a currency pegged to the euro and has so far escaped any fallout from the economic slowdown in China, Prime Minister Daniel Kablan Duncan said.

“There is no fear” about any major pressures being exerted on the CFA franc, the currency used by Ivory Coast and 13 other smaller African economies, Duncan said in an interview in Abidjan, the commercial capital, on Monday. The common currency “is beneficial for our economies. Those who have tried their own money have had some ups-and-downs with some difficulties.”

The stability from the common currency has made it easier to keep investors in Ivory Coast, avoiding the sell-off in emerging market assets sparked by the surprise decision by China to devalue its yuan in August. The move, which fueled concern authorities are struggling to combat a slowdown in the world’s second-largest economy, prompted Kazakhstan to abandon its currency peg and intensified speculation that African nations would do the same.

China is the nation’s third-largest trade partner, after Nigeria and France.

The CFA franc has depreciated 7 percent against the dollar this year, compared with the 24 percent decline in the Ugandan shilling and 29 percent plunge in the Zambian kwacha, Africa’s worst performers.

Lanciné Bakayoko at Abidjan.net writes about how the Lebanese diaspora in Côte d'Ivoire is going from strength to strength, Lebanese-owned firms even successfully challenging the French firms that long dominated the country.

Treichville et Adjamé, deux marchés populaires pour les tissus, les produits de beauté, les chaussures, le textile, l’électroménager et l’électroni­que. Ce pan fructueux du commerce ivoirien est en passe de chan­ger de main. Il y a quelques années, il était la chasse gardée des libanais. Mais avec le dynamisme de l’informel et surtout la ruée des chinois, ces libanais tentent de réorienter leurs activités vers des secteurs plus porteurs et lourds en investissements que le tertiaire. Selon Roger Dagher, chef d’entreprise et conseiller économi­que et social, aujourd’hui, les activités de la communauté libanaise se sont étendues aux secteurs du transport, de l’immobilier, à la distribution d’hydrocarbure, à la recherche minière ainsi qu’à l’exploitation, et surtout à la création de fonderies pour produire le fer et l’acier. «Je ne pourrai pas citer tous les domaines dans lesquels les libanais se sont investis, mais je voudrais indiquer que suite aux évènements de 2002 et 2004, ces domaines se sont diversifiés suite au départ de certains opérateurs économiques », lance-t-il à Elan, le conclave de la société civile. En effet, ils sont dans l’industrie, l’importation et le conditionnement de produits alimentaires tels le beurre, le lait, les cubes de bouillon, les savons, l’hôtellerie, la restauration. Selon l’hebdomadaire français Le Point, depuis les évènements de 2004 qui a vu des dizaines d’entreprises ravagées par les «Jeunes patriotes », les petites et moyennes entreprises seraient contrôlées à 60% par la communauté libanaise.

Treichville and Adjamé are two popular markets for textiles, cosmetics, footwear, textiles, household appliances and electronics, but this profitable destination for exporters is going to change. A few years ago, it was the preserve of the Lebanese, but with the dynamism of the informal sector and especially the influx of Chinese, the Lebanese are trying to reorient their activities to more important industries than those of the tertiary sector. According to Roger Dagher, business leader and social and economic advisor, the activities of the Lebanese community have expanded into the areas of transportation, real estate, oil distribution of oil, mining exploration and exploitation, and especially the establishment of smelters to produce iron and steel. "I can not mention all the areas where the Lebanese were invested, but let me say that following the events of 2002 and 2004, these areas have diversified after the departure of some traders." Indeed, Lebanese are in manufacturing, importing and packaging of food products such as butter, milk, bouillon cubes, soap, hotels, and catering. According to the French weekly Le Point, since the events of 2004 that saw dozens of businesses ravaged by the "Young Patriots", 60% of small and medium enterprises ware owned 60% by the Lebanese community.