AFRICAN DEVELOPMENT BANK GROUP

COTE D’IVOIRE

SUPPORT TO INDUSTRIAL COMPETITIVENESS ENHANCEMENT

PROJECT (PARCSI)

OSGE DEPARTMENT

September 2015

Translated document

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TABLE OF CONTENTS

I. Strategic Thrust and Rationale ............................................................................................. 1

1.1. Project Linkage with Country Strategy and Objectives .............................................. 1

1.2. Rationale for Bank Involvement .................................................................................. 1

1.3. Aid Coordination..........................................................................................................5

II. Project Description ............................................................................................................... 6

2.1. Project Components ..................................................................................................... 6

2.2. Technical Solutions Adopted and Alternative Solutions Considered……… …… 8

2.3. Project Type ................................................................................................................. 9

2.4. Project Cost and Financing Mechanisms ..................................................................... 9

2.5. Project Area and Beneficiaries .................................................................................. 10

2.6. Participatory Approach to Project Identification, Design and Implementation ........ 10

2.7. Bank Group Experience and Lessons Reflected in Project Design ........................... 11

2.8. Key Performance Indicators ...................................................................................... 11

III. Project Feasibility ............................................................................................................... 12

3.1. Economic and Financial Performance ....................................................................... 12

3.2. Environmental and Social Impact .............................................................................. 12

IV. Implementation .................................................................................................................. 13

4.1. Implementation Arrangements .................................................................................. 13

4.2. Monitoring ................................................................................................................. 15

4.3. Governance…………………………………………………………… ………….16

4.4. Sustainability………………………………………………………………………..16

4.5. Risk Management…………………………………………………… ……………16

4.6. Knowledge Building………………………………………………………………. .17

V. Legal Framework ................................................................................................................. 17

5.1. Legal Instrument ........................................................................................................ 17

5.2. Conditions Associated with the Bank’s Intervention ................................................ 17

5.3. Compliance with Bank Policies ................................................................................. 17

VI. RECOMMENDATION ..................................................................................................... 17

Annex I: Comparative Socio-economic Indicators of Côte d'Ivoire

Annex II: Table of Bank Group Operations in the Country

Annex III: Major Related Projects Financed by the Bank and Other Development Partners of

the Country

Annex IV: Map of the Project Area

i

Currency Equivalents MAY 2015

UA 1 = XOF 822.60

UA 1 = EUR 1.25

UA 1 = USD 1.41

Fiscal Year January-December

Weights and Measures

1 metric tonne = 2204 pounds

1 kilogramme (kg) = 2.200 pounds

1 metre (m) = 3.28 feet

1 millimetre (mm) = 0.03937 inch

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

ACRONYMS AND ABBREVIATIONS

ADCI Agency for the Development and Competitiveness of Industries in

Côte d’Ivoire

ADF African Development Fund

AGOA African Growth and Opportunity Act

CACDI Industrial Competitiveness and Development Support Centre

CGECI General Federation of Enterprises in Côte d’Ivoire

CODINORM Côte d’Ivoire Normalisation

CPIA Country Policy and Institutional Assessment

CSP Country Strategy Paper

DDR Disarmament, Demobilization and Reintegration

DITI Directorate for Innovation and Industrial Technology

DPIC Directorate of Industrial Production and Competitiveness

DPIP-MIM Directorate for the Promotion of Private Investments at the Ministry

of Industry and Mines

DPQN General Directorate of Statistics and Economic Forecasting (DGSP)

ECOWAS Economic Community of West African States

EITI Extractive Industries Transparency Initiative

EU European Union

FIPME Federation of Small- and Medium-sized Enterprises of Côte d’Ivoire

FNISCI National Federation of Industries and Services of Côte d’Ivoire

FSF Fragile States Facility

ii

GAP II Strategic Framework and Action Plan for Governance II

GUFE Single Window for Business Formalities

ICB International Competitive Biding

INS National Institute of Statistics

LANEMA National Laboratory for Quality Assurance Testing, Metrology and

Analysis

MC Ministry of Commerce

MDPRPJEJ Ministry Delegate to the President of the Republic, in charge of Youth

Promotion and Youth Employment

MEMPD Ministry of State in charge of Planning and Development

MENPPMEA Ministry of National Entrepreneurship, Promotion of SMEs and

Handicrafts

MIM Ministry of Industry and Mines

MPMEF Minister of State, in charge of the Economy and Finance

NCB National Competitive Bidding

NPI New Industrial Policy

ORWA AfDB Regional Department, West

PARCSI Project to Enhance the Competitiveness of the Industrial Sector

PAREF Economic and Financial Reform Support Program

PARICS Social Inclusion and Cohesion Enhancement Support Programme

PBA Performance-Based Allocation

PMU Project Management Unit

PNRMN National Enterprise Restructuring and Upgrading Programme

PPP Public-Private Partnership

SME Small and Medium-sized Enterprises

SMIs Small and Medium-sized Industries

TFP Technical and Financial Partners

UNIDO United Nations Industrial Development Organisation

WAEMU West African Economic and Monetary Union

WEF World Economic Forum

iii

Project Information Sheet

Client Information

BORROWER: REPUBLIC OF CÔTE D’IVOIRE

EXECUTING AGENCY: MINISTRY OF INDUSTRY AND MINES

Financing Plan

Source Amount (UA) Instrument

ADF

10.000.000

GRANT

Government 1.478.000

TOTAL COST 11.478.000

Key AfDB Financial Information

Grant Currency

UA

Interest Type* N.A.

Interest Rate Margin* N.A.

Commitment Charge* N.A.

Other Charges* N.A.

Tenor N.A.

Grace Period N.A.

FRR, NPV (baseline scenario) N.A.

ERR (baseline scenario) N.A.

*if applicable

Duration – Main Milestones (projected)

Concept Note approval

March 2015

Project approval September 2015

Effectiveness

Mid-Term Review

November 2015

November 2017

Last disbursement November 2019

Completion August 2019

iv

Project Summary

Programme

Overview Project Title/Number: Support to Industrial Competitiveness Enhancement Project

(PARCSI)/ P-CI-KZ0-001

Geographic Scope: Nationwide

Schedule: 48 months, from September 2015 to August 2019

Financing: UA 10 million (ADF Grant); UA 1.478 million (Government)

Operational Instrument: Institution Building Project

Needs

Assessment

The Ivorian industry faces two major challenges. The first challenge is the socio-economic crisis that

shook the country throughout the 2000s. This crisis has severely affected the industrial sector,

inflicted significant damages to property and infrastructure, rolled back economic activity and

destroyed the bulk of the country’s production capacity. The second challenge is trade liberalization

under the framework of the Economic Partnership Agreements (EPAS) with the European Union, the

AGOA agreements with the United States and the Common External Tariff (CET) within ECOWAS.

These agreements are opportunities to strengthen the export potential, but also threats to the survival

and competitiveness of a number of Ivorian industries. Therefore, the country must adapt and

revitalize its industrial base in order to seize new opportunities at the national and sub-regional level.

To this end, it is important to strengthen the processing of products in the priority sectors identified

in the National Export Strategy (NES) and to create the enabling environment that would help the

private sector to fully play its role as the catalyst of economic growth. This can be achieved through

supporting the upgrading and development of industries and capabilities of firms in order to enhance

their ability to harness opportunities in various markets, with particular emphasis on job creation.

Target

Beneficiaries

The entire nation will benefit from the PARCSI project, especially: (i) industrial sector firms whose

competitiveness will be enhanced; (ii) associations of fruits and vegetables producers; (iii) companies

involved in the fruits and vegetables value chain (suppliers of inputs, packaging, transport, etc.); (iv)

youths and women who will have decent job opportunities within the modern Ivorian economy; and

(v) the State whose agencies in charge of supporting the enhancement of the industrial sector’s

competitiveness will be strengthened. Overall, the entire Ivorian population will benefit from this

project directly (job creation; increased budget resources for the Government) and/or indirectly

(availability of locally-produced high quality consumer goods for the domestic market).

Bank’s

Comparative

Advantage and

Value-added

The Bank’s comparative advantage and value-added in the PARCSI project are the result of the

integrated approach and complementarity of its operations with those of other donors. The Bank will

help the Ivorian authorities to operationalize the New Industrial Policy (NIP) prepared with the

support of World Bank and UNIDO, as well as the National Export Strategy supported by the

European Union and UNIDO. The Bank will also help consolidate the work initiated by the European

Union and UNIDO at the inception of the National Enterprise Restructuring and Upgrading

Programme (PNRMN), which targets a sample of 25 Ivorian enterprises. In this regard, the Bank will

play a pioneering and catalytic role by enhancing donors’ intervention in the Ivorian industrial sector.

This is indeed one of the first restructuring and upgrading programmes in the sub-region with the

objective of helping businesses to successfully face the challenges of the upcoming market

liberalization in the context of the Economic Partnership Agreements (EPAs) with the European

Union. Finally, the PARCSI project will create a platform for mobilizing the Bank’s sovereign and

private sector resources to sustainably support access to finance (OFSD) and provide direct financing

to project beneficiary businesses (OPSD).

Knowledge

Building

The project will help to build knowledge and develop skills for industrial sector businesses,

professional associations as well as public and private structures in value chain promotion, exports,

competitiveness, quality, industrial sector productivity and the managerial techniques of industrial

businesses. The knowledge acquired mainly through technical assistance, studies, experience-sharing,

information and access to technical centres as well as the use of equipment will facilitate the

assimilation and dissemination of international best practices.

v

Results-based Logical Framework

Country and Project Title: Republic of Côte d’Ivoire –Support to Industrial Competitiveness Enhancement Project (PARCSI):

Project Goal: The overall project objective is to boost the competitiveness of industrial enterprises with a view to stimulating inclusive, job-creating growth.

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICATION

RISKS/

MITIGATION MEASURES Indicator (including

ISCs)

Baseline

Situation Target

IMP

AC

T

The industrial sector is the

engine of robust, sustained and

inclusive growth

GDP growth rate

Industrial sector

contribution to GDP (in

%)

8.5% in 2014

22% in 2014

10% in 2019

40% in 2019

MEMPD

MPMEF

Risk (i):

Socio-political tensions stemming

from the November 2015

presidential elections could

undermine private investment

promotion efforts in the country.

Mitigation measure (i)

A consensual electoral

commission has been set up and

dialogue among the various

political stakeholders is ongoing,

in addition to the support of the

international community for the

holding of elections under

peaceful conditions.

OU

TP

UT

Output 1: Increased processing

rate for mango and pineapple

Fruit processing rate

(mango, pineapple, etc.)

2% in 2014

10% in 2019

MIM

MEMPD

MDPRPJEJ

Output 2: Increased market

share for the industrial sector

Private investment as a

percentage of GDP

Number of industrial

sector jobs, of which:

- Number of newly-

created jobs for the

youth

- Number of newly-

created jobs for women

10.8% in 2014

750,000 in 2014

0

0

15% in 2019

1,000,000 in

2019

30% (75,000)

15% (37,500)

COMPONENT I: SUPPORT THE PROMOTION AND UPGRADING OF THE FRUITS AND VEGETABLES SUB-SECTOR

vi

OU

TC

OM

ES

Sub-component 1.1: Support

Business Upgrading

Outcome I.1: The

competitiveness of industrial

enterprises is boosted

Outcome I.2: The managerial

capacity of enterprises is

strengthened

Sub-component 1.2: Support

the fruits and vegetables sub-

sector

Outcome I.3 : The fruit and

vegetable agro-industrial sector

environment is improved

Outcome 1.4: The quality of

processed products from the

sub-sector is more widespread

Outcome 1.5: The supply chain

of the fruits and vegetables

processing units is secured

Strategic diagnosis and

technical assistance

under the National

Restructuring and

Upgrade Programme

(PNRMN) are

implemented

Training sessions on

managerial techniques

(including 25% for

women)

“Quality” technical

assistance and training

for the certification and

guidance of 50

enterprises to develop a

“quality-based”

approach.

An action plan on export

opportunities for fresh

and processed mango

and pineapple products

is available.

Reforms to boost the

competitiveness of the

fruits and vegetables

sub-sector are identified

and implemented.

Creation of a “Côte

d’Ivoire Quality Fruits”

label.

Modern fruits and

vegetables processing

units created

A technological platform

for the collection and

dissemination of product

availability information

is established.

Marketing agreements

signed between small

farmers’ cooperatives

and large-scale

processing or

distribution entities.

25 enterprises

benefit from

strategic diagnosis

and technical

assistance in 2014

No training

programme on

managerial

techniques for

industrial

enterprises

No certification

programme for

Ivorian businesses

No available action

plan

0 reform in 2014

Creation of a “Côte d’Ivoire Quality

Fruits” label.

Only one modern

fruits and vegetables

processing unit in

2014

Information not

available

No agreement

signed in 2014

50 enterprises

benefit from

strategic diagnosis

and technical

assistance in 2019

At least 200

corporate executives

trained (including 50

women) in 2019

50 businesses

created obtain the quality certification

An action plan is

available in 2016

At least two

measures

implemented per

year as from 2017

Adoption of a “Côte

d’Ivoire Quality

Fruits” label in 2017

At least two investors approved

under the Investment

Code for the

establishment of

fruit and vegetable

processing plants in

2017

The platform is

prepared and

operational in 2017

At least 2

agreements signed

over the duration of the project

ADCI Annual

Report

ADCI Annual

Report

MIM

MIM

MIM

MENPPMEA

MIM

MIM

MC/SME

Risk (ii):

Reluctance of the banking sector

to finance investment of

companies affiliated to the

programme.

Mitigation measure (i):

The Government and seven local

commercial banks recently signed

a Protocol Agreement under

which these financial institutions

have agreed to support the

industrial enterprises that adhere

to the programme. ADCI will

have enough experts to develop

the business plans of enterprises

that join the program and avail

adequate expertise to help prepare

sound business plans to optimize

the firms’ access to bank

financing. Furthermore, the

Bank’s financial sector

department intends to provide

support to facilitate access to

financing for SMEs/SMIs.

Risk (iii):

Sustainability of State budget

support to structures tasked with

PNRMN implementation

Mitigation measure (iii):

The government created budget

lines in 2015 for the PNRMN and

undertook to provide up to UA

1,478,000 to support project

implementation.

vii

COMPONENT 2: SUPPORT THE ESTABLISHMENT OF CACDI FOR THE AGRIBUSINESS SUB-SECTOR AND CAPACITY-BUILDING

FOR AGENCIES IN CHARGE OF QUALITY AND STANDARDISATION

Sub-component II.1: Support

the operationalization of ADCI

Outcome II.1: ADCI is

reinforced and operational

Sub-component II.2: Support

the establishment of the agro-

food CACDI and capacity-

building for structures

responsible for quality and

standardisation

Outcome II.2: The regulatory

framework for quality

infrastructure is reinforced.

Outcome II.3 : The

certification of enterprises is

reinforced

Outcome II.4: The conditions

for the establishment of the

agribusiness CACDI are met

Provision of assistance

to ADCI

A national quality plan is

available and

implemented

CODINORM is

accredited for the

certification of

enterprises

The feasibility studies

and strategy for the

establishment of the

agribusiness CACDI are

completed

ADCI has no

technical

assistance (an

expert in industrial

upgrading and an

expert in

investment

banking)

No national

quality plan

Less than 3% of

Ivorian enterprises

are certified in

2014

Additional studies

are not available

Technical assistance

is established for

2016

A national quality

plan is adopted and

implemented in

2016

At least 5% of

Ivorian enterprises

are certified in 2019

Additional studies

(regulation;

financial

mechanism; needs

assessment for

equipment and

premises) are

conducted in 2016

ADCI Annual

Report

MIM

MIM

MIM

COMPONENT 3: PROJECT MANAGEMENT

KE

Y

AC

TIV

ITIE

S

COMPONENTS RESOURCES

Component 1: Support the upgrading and promotion of the fruits and vegetables sub-sector

Component 2: Capacity-building for industrial sector support services

Component 3: Efficient project management

Component 1: UA 7 174 000

Component 2: UA 2 951 400

Component 3: UA 753 000

viii

Project Implementation Schedule

Years

Activities/Months J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Prior to start-up

Board presentation

Grant effectiveness

Appointment of the coordinator

Establishment of the PIU

Preparation of the procedures manual

Project launching mission

Equipment and suppliers

Bid invitation for IT and office equipment

Bid invitation for supplies

Delivery of goods and start-up

Consultants

Preparation of BDs and shortlisting

Bid invitation, analysis and contract award

Consultancy services

Direct support to businesses

Support to the fruit and vegetable sub-sector

Support to quality-based infrastructure

Support to the establishment of CACDI

Support to build the capacity of ADCI

Training and miscellaneous

Training

Operating expenditure

Mid-term review

Monitoring/evaluation

Steering Committee meetings

CTC meetings

Audit

Annual audit of accounts

Final audit of accounts

PROJECT IMPLEMENTATION SCHEDULE

20192018201720162015

1

MANAGEMENT’S REPORT AND RECOMMENDATION TO THE BOARD OF DIRECTORS CONCERNING A

GRANT TO THE REPUBLIC OF CÔTE D’IVOIRE TO FINANCE THE SUPPORT TO INDUSTRIAL

COMPETITIVENESS ENHANCEMENT PROJECT (PARCSI)

Management hereby submits these report and recommendations concerning a proposal to award an

ADF grant of UA 10 000 000 to the Republic of Côte d’Ivoire to finance the Support to Industrial

Competitiveness Enhancement Project (PARCSI), aimed at helping the country to enhance the

competitiveness of industrial enterprises and promote the processing of produce from the fruit and

vegetable sub-sector, in an effort to address the challenges of trade liberalization (Economic

Partnership Agreements between ECOWAS and the EU, the ECOWAS Common External Tariff, etc.)

and job creation – a factor for consolidating social cohesion and reducing fragility.

I. Strategic Thrust and Rationale

1.1 Project Linkage with Country Strategy and Objectives

1.1.1 PARCSI is consistent with the strategic objectives of Côte d’Ivoire’s National Development Plan (NDP 2012-

2015). The NDP is articulated around five strategic outcomes: (i) the population lives in harmony in a

safe society where good governance is guaranteed; (ii) the creation of national wealth is increased,

sustained and growth benefits are equitably shared; (iii) the population, especially women, children and

other vulnerable groups, have equal access to quality social services; (iv) the population lives in a

healthy environment and enjoys adequate living conditions; and (v) the repositioning of Côte d’Ivoire

on the regional and international scene becomes a reality. PARCSI is consistent with the strategic

objectives (ii) and (v) of the NDP and is aimed at supporting the implementation of the country’s New

Industrial Policy (NIP) adopted in August 2013. The NIP supplements the Phoenix Programme

adopted in 2014, which specifically targets the promotion of SMEs/SMIs, with specific emphasis on

access to finance.

1.1.2 The project is also consistent with the Bank’ Country Strategy Paper (CSP 2013-2017) through its two pillars:

(i) strengthening of governance and accountability; and (ii) the development of infrastructure to support economic

recovery. The project is also aligned with the Bank’s strategic objectives, the Ten-Year Strategy (2013-

2022) whose purpose is to support the structural transformation of Africa through five pillars, including

private sector development. It also meets the objectives of the Bank’s strategy on Addressing Fragility

and Building Resilience in Africa. PARCSI plugs into the Governance Strategic Framework and Action

Plan 2014-2018 (GAP II) through the third pillar, which seeks to improve the business and investment

climate. It is consistent with the Bank’s Private Sector Development Strategy 2013-2017 and helps to

create a platform for OPSD, OFSD and OSAN operations. The project also aims at ensuring the

economic empowerment of women and youth, which is the second pillar of the Bank’s Gender Strategy

for 2014-2018. Finally, the project supports the policy on equal opportunity, equity and gender adopted

by the Government in 2009, which lays emphasis on access to and control of resources by women.

1.2 Rationale for Bank Involvement

1.2.1 Côte d’Ivoire is characterized by an abundance of resources. However, this potential is yet to be fully tapped:

privileged access to the major markets of the EU, US, WAEMU and ECOWAS; the quality of infrastructure and its

strategic geographic position in West Africa. The country is primed to become the engine of sub-regional

trade. After a decade of sluggish growth (2000-2010), the Ivorian economy bounced back to robust

growth of 10.7% in real terms (2012), sustained at 8.7% and 8% in 2013 and 2014 respectively, and

driven by the construction, manufacturing and energy sectors. This strong recovery can be partly

attributed to the catching-up effect following a protracted crisis that was characterized by the under-

2

utilization of productive capacity and economic slowdown. However, stronger economic growth has

not led to the structural transformation of the economy nor to sufficient employment generation

necessary to address the country’s underemployment and endemic unemployment.

1.2.2 High unemployment, particularly among the youth, is a major cause of fragility in Côte d’Ivoire. The social

context is still marked by unprecedented levels of unemployment due to the closure of businesses and

the slowdown in economic activities, including in the agricultural and informal sectors which are the

job engines of Côte d’Ivoire. The socio-economic instability of the last two decades has aggravated

poverty in Côte d’Ivoire, downgrading it to one of the nations with a low human development index

(UN). Côte d’Ivoire ranks 171st out of 187 countries in 2015, having fallen slightly from its 2012

position (168th

out of 187). Its economic and social precariousness is compounded by the massive

displacement of communities during the crisis. Per capita income has fallen by one fifth over the last

decade. Half of the population (48.9% according to data from 2008) reportedly lives below the poverty

line: the government hopes to slash this level down to 16% by 2015. The youth unemployment rate is

12.2% (of which 39% for young graduates).

1.2.3 The private sector is unable to play a leading role in diversifying sources of growth and creating employment.

As illustrated in the figure below, private investment remains relatively low compared to levels in the more buoyant economies of

the Maghreb and Asia. Credit to the economy as a percentage of GDP (i.e. financial resources granted to the

private sector such as loans, commercial credit, etc.) stood at 20.3% in 2014, whereas this figure was

75.5% and 156% in Tunisia and South Africa, respectively, in 2013. This is compounded by the low

factor productivity inherent in inadequate physical and human capital accumulation, low productivity

of labour and insufficient introduction of basic or advanced technologies into the production processes

of the agricultural, manufacturing and service sectors. These deficiencies have forced the country to

specialize in economic activities that generate neither value-added nor jobs. Such a growth trajectory is

at odds with the requirements of open markets and massive job creation and, for that reason, cannot be

relied upon to reduce under-employment and the endemic unemployment in urban and rural areas.

Figure 1

Comparative Private Investment Trends (% of GDP) in Côte d’Ivoire and a Few Other Countries: 2008-2014

Data source: WEO Database, IMF, April 2015

1.2.4 Upgrading the Ivorian industrial sector and enhancing its competitiveness is compelling for two main reasons.

Firstly, the socio-economic crisis that rocked the country throughout the 2000s has severely damaged

the industrial fabric. Having emerged from the crisis, Côte d’Ivoire needs to make a catch-up effort to

halt the steady decline of the industrial sector and the partial de-industrialisation in some sectors

(textiles, cotton, fruits, etc.) recorded over the past decade. Secondly, while trade liberalization is an

opportunity to develop export potential, it is also a threat to the survival and competitiveness of a

number of Ivorian industries. This is particularly true with the Economic Partnership Agreements

(EPAs) between ECOWAS and the European Union (EU), which will, on the one hand, enable the EU

to export 75% of its goods duty-free to the sub-region and, on the other hand, allow ECOWAS

countries to export 100% of their goods duty free to EU markets. Other trade agreements include the

0

10

20

30

40

2008 2009 2010 2011 2012 2013 2014

Pri

vate

in

vest

me

nt

(% o

f G

DP

)

Maroc

Tunisie

Côte d'Ivoire

Malaisie

Morocco

Tunisia

Côte d’Ivoire

Malaysia

3

African Growth and Opportunity Act (AGOA) and the Common External Tariff (CET) within

ECOWAS.

1.2.5 The main challenges to the development of the industrial sector in Côte d’Ivoire are of three kinds:

1.2.5.1 The structural challenge of competitiveness and industrialization. The Ivorian economy is

vulnerable due to its dependence on non-processed cash crops (coffee, cocoa, timber, banana, etc.) and

the loss of customs revenue due to the EPAs. Its vulnerability is compounded by an increase in the

volume of imported goods and services, which will negatively affect public finance and the balance of

payments in the medium term. For the Ivorian economy to thrive and create jobs, it must adapt to

international competition in a context of market liberalization. Côte d’Ivoire still exports predominantly

non-processed commodities and, in return, imports manufactured goods with value-added. Section A2

of the technical annexes presents details of Côte d’Ivoire’s trade with the rest of the world.

1.2.5.2 The Ivorian industrial sector is plagued by a lack of innovation, failure to adopt new technologies and the low

qualification (higher education and vocational training) of human resources. Action should be taken to improve

quality and innovation in the industrial sector, and promote Ivorian products by consolidating the

national standardisation system. The establishment of efficient quality management infrastructure is

crucial to the promotion and success of the Ivorian industrial sector in various markets. Available

information shows that less than 3% of Ivorian businesses are certified. Without a doubt, the quality of

a product is determined by the formal and informal standards that define its attributes. Considering that

customers from sophisticated markets increasingly demand product certification, it is important to

establish appropriate systems in producing countries to ensure that their businesses acquire the

expertise needed to manufacture products that comply with the quality and standards required by the

market. Compliance with these standards requires an enabling legal and regulatory framework as well

as access to reliable quality control laboratories that comply with high-quality standards in terms of

Metrology-Standards-Quality-Control (MSQC).

1.2.5.3 Based on the international specialization of its economy, Côte d’Ivoire has a comparative advantage in the

agribusiness industry and is relatively more developed compared to the other WAEMU countries.

However, the level of processing for Côte d’Ivoire’s agricultural products remains relatively

much lower than in comparable economies, such as those of Kenya and Egypt. Côte d’Ivoire

processes less than 2% of its output, essentially through artisanal means, even though it is the leading

producer and exporter of fruits and vegetables (banana, pineapple, mango, etc.) in the sub-region.

Consequently, Côte d’Ivoire imports most of the processed fruit and vegetable products sold on the

Ivorian market. The Ivorian agro-industrial sector does not benefit from the growing urbanization (over

4% per year) that has spawned an increase in the number of middle class consumers and the

modernization of distribution channels; neither does it benefit from the increase in global demand for

processed fruit and vegetables, the import volume of which skyrocketed from USD 25 billion to USD

66 billion between 2000 and 2011. As concerns fresh products, Côte d’Ivoire loses the majority of its

tropical fruit yield, estimated at 10% to 80%. On average, post-harvest losses exceed 15% yearly (over

30% for mangoes). Although the mango crop sector has a total production capacity of approximately

140,000 tonnes, only a paltry 8,000 tonnes were exported in 2012. Meanwhile, Morocco and Egypt

have diversified their fresh fruit and vegetable export markets to other countries (United States, Russia,

Netherlands, United Kingdom, etc.). Ivorian fruits and vegetables are still exported mainly to

traditional markets, including France, whose growth rate remains sluggish.

1.2.5.4 The poor performance of the Ivorian fruits and vegetables sub-sector stems from structural problems.

Production is handled by a multitude of poorly organized small farmers. Unlike the large multinational

producers of Latin America who benefit from economies of scale throughout the entire production

4

chain, Ivorian producers are not fully integrated into the national and international value chains and can

barely engage in mass production in compliance with international market standards. Ivorian farmers

face problems relating to logistics, quality, storage, transport, market access, non-compliance with

standards and the lack of domestic fruit and vegetable processing industries. Such limited integration

into high performing value chains reduces the opportunities to structurally transform the economy. It

also sustains the vicious circle of increased importation of products derived from Ivorian raw materials,

persistent underemployment and endemic unemployment. Fruits and vegetables processing provides an

opportunity to create value and jobs tthroughout the value chain in both rural and urban areas.

1.2.5.5 The second challenge is a business environment that is not conducive to the promotion of

investment, growth and employment. Although Côte d’Ivoire has featured among the 10 best

business environment reformers over the last 2 years in the World Bank’s “Doing Business” rankings,

the Ivorian private sector is hobbled by the following weaknesses: (i) a business environment perceived

to be unfavourable to the promotion of growth, investment and increased economic diversification (e.g.

a complex tax system, administrative bottlenecks that are being eliminated, difficulties for formal

sector SME/SMIs to compete for public contracts); (ii) a shortage of modern industrial infrastructure to

boost business competitiveness (high cost of production factors, especially energy,

telecommunications, port and customs, etc.; as well as industrial zones that need to be modernized to

create an adequate platform for the efficient development of priority sectors); (iii) human and

technological capital to be developed (decline in the quality of labour force and ageing equipment in a

number of sectors); (iv) a financial system that is not tailored to sustain investments and access to

finance for SME/SMIs; and (v) a fragmented and poorly resourced institutional support system for the

private sector that requires enhanced strategic coordination to effectively implement the New Industrial

Policy.

1.2.5.6 Thirdly, difficult access to finance for SMEs/SMIs is a major constraint to the development of the Ivorian

industry. Côte d’Ivoire is characterized by a low bank penetration rate (only 14.61% of the population

had a bank account in 2014). Credit to the economy as a percentage of GDP remains lower than in

comparable economies. The mismatch between bank resources, -composed essentially of sight and

short-term deposits-, and the investment needs of SMEs/SMIs is a major constraint. To address this

challenge, the government has established the Business Restructuring and Upgrading Fund (FREMIN)

within the National Investment Bank (BNI) to collect from the government and technical and financial

partners the resources earmarked for the National Enterprise Restructuring and Upgrading Programme

(PNRMN). PARCSI does not provide for any support to FREMIN, whose operational terms and

conditions are still being prepared. However, the Bank’s Financial Sector Department will continue

dialogue with the country on the advisability of future support to FREMIN. Furthermore, the Ivorian

authorities and seven commercial banks have recently signed a Memorandum of Understanding under

which these banks agreed to review with benevolence the loan applications submitted by PNRMN

member businesses for the financing of fixed assets. Additional agreements were signed with guarantee

funds that could cover up to 50% of loans amounting to a maximum of EUR 4 million (ARIZ) and up

to 60% of the loan for the GARI Fund, in case of simultaneous guarantees. However, the proposed

guarantee mechanisms seem to be uncoordinated and more tailored to large businesses. To supplement

this mechanism, the Bank’s Financial Sector Department is preparing a project aimed at facilitating

access to finance for SMEs/SMIs and supporting the project activities implemented under PARCSI.

Under PNRMN, the Bank’s Private Sector Operations Department could also lend direct support to

fruits and vegetables growers, suppliers of inputs and packaging, as well as distribution companies and

other organizations supported by the project.

5

1.2.6 To address these challenges and weaknesses, the government prepared the National

Development Plan 2012-2015, through a participatory process, to lay the foundation for robust

and inclusive growth that would enable Côte d’Ivoire to accede the emerging economy status by

2020. This vision is predicated on the New Industrial Policy (NIP), which essentially seeks to diversify

the economy, substantially increase the local product processing rate and enhance the competitiveness

of the Ivorian industry on the domestic, regional and global markets. The NIP provides for specific

support to the cashew, cocoa, cotton-textile-oilseed, fruits and vegetables, rubber, and oil palm crop

sectors, with quantitative processing targets by 2020. Furthermore, the government has adopted a

National Export Strategy (NES) which identified six priority sectors, namely: (i) rubber and plastics;

(ii) cashew nuts; (iii) cotton, textiles and clothing; (iv) tropical fruits; (v) cassava and derivatives; and

(vi) new information and communication technologies. In response to the increased openness of the

national productive sector to exports from European countries under the Economic Partnership

Agreements (EPA) signed between the European Union and WAEMU, the government has also adopted a

National Enterprise Restructuring and Upgrading Programme (PNRMN). The NIP, PNRMN and NES are

presented in detail in the technical annexes.

1.2.7 The Bank has to intervene selectively to support the implementation of the NIP, NES and PNRMN and thus

assist the authorities to transform the structure of the Ivorian economy by developing a diversified industrial sector

capable of making a significant contribution to the reduction of youth unemployment and poverty. Given the

government’s strategy, complementarities with other donors and the need to maximize impact in terms

of job creation and poverty reduction, the Bank will focus its action on the challenges of

competitiveness and industrialization by supporting the upgrading of businesses and processing of

products from priority agribusiness sub-sectors identified in the National Export Strategy. It will also

build the capacity of the structures in charge of assisting industrial enterprises by enhancing their

competitiveness, productivity and product quality. These operations will enable Ivorian businesses to

take greater advantage of the opportunities on various markets, help massively create jobs for youths

and women in particular and thus reduce economic fragility and social inequality.

1.2.8 PARCSI is complementary with the Bélier Region Agro-industrial Pole Project -2PAI-Bélier1

(being prepared). It will also create a platform for other Bank operations in terms of financing access for SMEs/SMIs

and direct funding of the projects of PNRMN member businesses (inputs, packaging, fruits and vegetables processing

units, etc.). Specifically, the following reasons justify this operation: (i) support government efforts to

implement the National Development Plan and the underlying sector policies (NIP, NSE, PNRMN);

(ii) play a pioneering and catalytic role in the revival of inclusive economic growth; (iii) guide the

resumption of international cooperation and the return of investors; and (iv) consolidate the

achievements of the 2011-2012 interim strategy. The project will support NIP implementation

horizontally, by providing direct assistance to businesses willing to join PNRMN and, vertically, by

supporting the development of a specific priority sector of the National Export Strategy (NES) that has

great potential, in terms of output, value-added (especially through exports) and jobs.

1.3 Aid Coordination

1.3.1 The government and the country’s development partners are fully engaged in aid coordination. The

Ministry of State in charge of Planning and Development is tasked with overall coordination of aid

through biannual meetings with all partners. At the sector level, several working groups structured

around the strategic objectives of the PND, have been established. Most of the working groups have

two lead donors. The AfDB co-chairs the “Infrastructure” sector working group with the EU.

1 The 2 PAI Bélier Project seeks to: structure agricultural sector stakeholders with a view to ensuring their professionalization and greater involvement

in various segments of the private sector; promoting agri-business through consolidation of value chains and the emergence of partnerships between

the stakeholders concerned; and strengthening the resilience of beneficiaries in the face of climate change.

6

Table 1

Aid Coordination in Côte d’Ivoire

Sector Working Groups TFP Lead Donor

General Coordination FR/NU

Governance USA/UNDP Justice/Human Rights FR/EU/UNOCI

Infrastructure EU/AfDB

Business Environment WB/UK Agriculture/Environment FAO/FR

Public Finance Management EU

Health WHO/FR Education UNICEF Key: WB (World Bank); FAO (United Nations Food and Agricultural Organization); FR (France); WHO (World Health Organization); UNOCI (United Nations Operations in Côte d’Ivoire); UNDP

(United Nations Development Program); UN (United Nations); UK (United Kingdom); EU (European Union); UNICEF (United Nations Children’s Fund); USA ( United States).

1.3.2 Project design has taken into account the synergy and complementarity of the support provided by technical

and financial partners to the industrial sector. The European Union supported the development of the NIP

and PNRMN, and has implemented the initial phase of the programme with the technical assistance of

UNIDO. In this context, 25 enterprises have benefited from the program. UNIDO also supported the

drafting of the National Export Strategy (NES) which retained six priority sub-sectors: rubber and

plastics; cashew nuts; cotton, textiles and clothing; tropical fruits; cassava and derivatives; and new

information and communication technologies. PARCSI will consolidate the work initiated by UNIDO

on export promotion and business upgrade. The World Bank supports reforms aimed at improving the

business environment. These reforms led to the establishment of one-stop shops (for business creation

and foreign trade); commercial courts (in Abidjan and San Pedro) and streamlining of customs

clearance procedures. It also supports priority agribusiness sub-sectors of the NES (the entire cashew

nut value chain). The French Development Agency (AFD) is funding an “Energy Efficiency” project

aimed at supporting businesses to optimize their energy consumption - which is complementary to the

activities supported by PARCSI. Japanese Cooperation (JICA) is backing a support project for the

formulation of industrial sector policies focused on innovation and the dissemination of technology.

Lastly, ECOWAS is implementing a West Africa Quality System Programme that will finance the

drafting of the national quality policy of Côte d’Ivoire. In light of these various operations, PARCSI

will focus on enhancing Côte d’Ivoire’s industrial competitiveness.

II. Project Description

2.1 Project Components

2.1.1. The overall objective of the project is to boost industrial competitiveness by adapting Ivorian businesses to

market liberalisation under the free trade agreements, and increase their contribution to the creation of wealth and jobs.

The specific objectives of Component I are: (i) support business restructuring and upgrading by

conducting a strategic diagnosis to identify needs and provide guidance (technical assistance) to 50

member enterprises of the programme, out of the 270 prospected; and (ii) support the industrial

development of the fruits and vegetables sub-sector. This will lead to integrated support for the

promotion of investments in the fruits and vegetables sub-sector (especially pineapple and mango) to

increase the industrial processing rate (2% in 2014), improve storage and conservation capacity, build

capacity for sub-sector stakeholders on storage and conservation best practices; and stimulate exports.

The specific objectives of Component 2 are: (i) support capacity-building for industrial sector support structures

(ADCI; agro-industrial CACDI; LANEMA; CODINORM; etc.) to enable them to more effectively

fulfil their mission of standardisation, quality assurance as well as productivity and competitiveness

enhancement.

7

Table 2

Project Components and Sub-components

Code Components Cost in UA

million Description of Components

I. COMPONENT I: 6,858 SUPPORT TO INDUSTRAL SECTOR DEVELOPMENT

I.1. Support Business Upgrading 4,376

General and strategic diagnosis of businesses with a view to identifying their support needs and developing a restructuring or upgrading plan;

Technical assistance to businesses to boost their competitiveness: studies/consultancy, training,

provision of new management tools, procurement of small equipment, pooling of means of production for farmers’ associations (inputs, packaging stations, refrigerated trucks, freight, national

and regional distribution channels, training, etc. );

“Quality” technical assistance and training for the certification and guidance of 50 enterprises to

develop a “quality-based” approach.

I.2.

Support the development of

processing for the fruits and

vegetables sub-sector

2,482

Establishment and support of the consultative framework between the various public and private structures for the “mango” and “pineapple” sub-sectors with the objective of safeguarding supplies,

eliminating regulatory and administrative bottlenecks and contributing to product processing.

Under this consultative framework, stakeholders may decide to expand processing to other types of fruits and vegetables, depending on market needs and the requirements of sector competitiveness

and profitability.

Securing the supply of fruits and vegetables for the processing units through: (i) support to umbrella organizations and cooperatives, and to technical assistance structures in order to build a

technological platform for the collection and dissemination of information on product availability (quantities, quality), farmers, their location and their training on farming and post-harvest best

practices (quality of raw materials, especially pesticide residue, handling, transport and

safeguarding of the supply chain of processing units); (ii) support and technical assistance to small farmer cooperatives for the supply of industrial processing units for pineapple, mango and other

fruits as well as negotiation of industrial partnerships and marketing agreements with businesses

that have processing plants and/or distribution structures; and (iii) the establishment of mechanisms for technical assistance and pooling of resources under a “shared-cost funding” arrangement (legal

and contractual framework for mutualisation; inputs, packaging stations).

Fruits and vegetables processing and promotion of investments through: (i) the development of local fruits and vegetables processing (feasibility study and business plan for the establishment of

processing units for fruits and by-products and identification of potential investors); (ii) organization of an international forum on investment opportunities in fruits and vegetables processing in Côte

d’Ivoire.

Facilitation of market access for products of the mango and pineapple sub-sectors including: (i) the strategic study on: (a) opportunities to develop the sale of fresh and processed mango and pineapple

products on the national, regional and international markets; (b) the identification of obstacles blocking access to markets and distribution channels (Côte d’Ivoire, European Union; ECOWAS;

North Africa; Middle East); and (c) an action plan to be implemented by the public-private

consultative committee on the development of the fruits and vegetables sub-sector; (ii) the creation and promotion of a “Fruit Quality Côte d’Ivoire” label: logo, terms of reference and dissemination;

and (iii) support to the promotion of fresh and processed mango and pineapple products:

establishment of a market information system, detailed marketing plans for distribution channels, seminars and training of public officials, value chain development, prospecting missions and

participation in fairs, etc.

II. COMPONENT II 2,868 SUPPORT TO BUILD INDUSTRIAL SECTOR SUPPORT CAPACITY

II.1. Support the operationalization of

ADCI 1.645

The recruitment of an expert in business upgrading who will support ADCI in preparing and

implementing the Agency’s medium-term action plan; drafting of the procedures manual for ADCI and the matching cost-sharing matching fund, and the tools for implementing and

monitoring ADCI activities.

The recruitment of an expert in industry financing who will provide support in the structuring of financing applications for fixed assets in

member enterprises.

Support to the consultative technical committee composed of industrialists and bankers, who in an advisory capacity, will review and give an opinion on the viability of the financing files.

Training of ADCI executives in upgrade; monitoring/evaluation; project management and study trips to Senegal, Tunisia and Morocco.

8

II.2.

Support the establishment of the

agro-food CACDI and capacity-

building for structures responsible

for quality and standardisation

1.223

Support for the establishment of the regulatory framework for quality and standardisation infrastructure: (i) implementation of the national quality policy (the national quality policy will be

prepared under an ECOWAS Quality System Programme); and (ii) preparation of a national

strategy for the improvement of quality infrastructure and a system of technical regulations2.

Support to capacity-building for public institutions in charge of quality and standardisation:

CODINORM (i) consultancy support for the accreditation and certification of CODINORM; (ii) support for consolidation of the product standardisation and certification system; (iii) support for the

promotion of the “Ivorian brand” to foster compliance with national standards (with the aim of

encouraging the use of the national mark of conformity (NI) as a competitiveness tool by Ivorian companies);3 and (iv) establishment of a mechanism for the management and implementation of

the National Quality System4; at LANEMA: (i) consultancy support for the accreditation of LANEMA and capacity-building for its executives; and (ii) training and awareness-raising on

quality for stakeholders from the private sector, civil society and government services.

Support for the process of establishing the agribusiness CACDI: (i) recruitment of an international expert in charge of technical assistance for the establishment of the agribusiness

CACDI (2 years); (ii) completion of additional studies to: (a) prepare the statutory texts and by-laws

of CACDI; and (b) define a priority action plan for physical investments.

III. Component III 1,240 Project Management

Coordination 1,240 Operation, procurement of office automation and IT equipment; allowances/fees of executives.

Audit 97 Annual audit of project accounts

Price escalation 415

Total project cost 11,478

2.2 Technical Solutions Adopted and Alternative Solutions Considered

2.2.1 The project chose to provide support, vertically, to the sub-sectors and, horizontally, for the upgrade of

businesses, in order to rally all public and private stakeholders around a process to boost competitiveness with clearly

measurable qualitative and quantitative performance indicators. With regard to its horizontal support, the

project has chosen to contribute to the capacity-building and upgrading of Ivorian businesses to help

them cope with competition in the context of trade liberalization with the EU and the ECOWAS

Common External Tariff. As concerns its vertical support to priority sub-sectors, the project will help

Côte d’Ivoire create more value-added and increase exports on regional and international markets. The

project chose the fruits and vegetables sub-sector among the priority sectors of the National Export

Strategy (NES) based on its processing, export and job creation potential. The adopted approach entails

using the industrial processing requirements and market opportunities as a benchmark to reform the

entire fruits and vegetables supply chain. Regarding the other sub-sectors, the cotton, textiles and

clothing sub-sector was not retained because it has been partially destroyed and substantial resources

are needed to restore its competitiveness. The cocoa sub-sector was excluded because of ongoing

initiatives to increase the cocoa-bean processing rate. As concerns the cashew nut sub-sector, its export

potential is enormous, but it was not retained for programme support because it is already supported by

2 A technical regulation or a standard is a document that outlines the characteristics of a product, service or the production processes and methods for a

given product or service. The difference between a standard and a technical regulation lies in the obligation of conformity inherent in the technical

regulation. While compliance with a standard is optional, compliance with technical regulations is essentially mandatory. In Côte d’Ivoire, various

technical ministries have issued a whole set of technical regulations without consulting one other. These technical regulations are not known to operators and are poorly managed. The aim of this component is to implement a strategy that will enable Côte d’Ivoire to improve its system of

technical regulations. 3 Law No. 2013-866 on standardisation and quality promotion institutes the mark of conformity as one of the proofs of compliance for products

manufactured in Côte d’Ivoire. The national mark of conformity (NI) is intended to be a distinctive mark that enables Ivorian SMEs/SMIs to boost the

competitiveness of their products. However, since this mark is not known by the various parties concerned (Official Control Service, SMEs,

consumers, etc.), it is necessary to conduct promotional actions to popularize its use. PARCSI will help to: raise awareness on the use of the national mark of conformity (NI) as a tool for competitiveness; popularize the brand and its logo to the general public and consumers; and guide a business

pole on the product certification approach to obtain the mark of conformity (NI) for consumer products. 4 Law No. 2013-866 of 23 December 2013 on standardisation and quality promotion, in its Article 4, stipulates that the State shall implement a national

policy on quality in all areas of the public and private sectors. This policy determines the priorities and the adoption of quality promotion measures

that can boost the competitiveness and performance of the national economy.

9

other donors. The project had initially intended to promote SMEs/SMIs through direct support

(including technical assistance) and facilitation of access to finance. However, it was noted that several

technical and financial partners as well as the Government already provide various forms of support to

promote SMEs/SMIs. Furthermore, the project decided to externalize the problem of access to finance

to enable the Bank to provide a more appropriate solution through a separate project. All these

considerations led the team to focus on boosting industrial competitiveness in Côte d’Ivoire. To

enhance the impact of the industrial revitalization programme, it would be appropriate to strengthen

donor coordination and the mobilization of resources for the National Enterprise Restructuring and

Upgrading Programme (PNRNM).

2.3 Project Type

2.3.1 PARCSI is an institutional support project aimed at facilitating the implementation of

PNRMN and the National Export Strategy (NES). It seeks to enhance the competitiveness of Ivorian

businesses in a context of trade liberalization and to promote the fruits and vegetables sub-sector,

which is one of the priority sub-sectors of the NES, because of its high potential for creating value-

added and jobs.

2.4 Project Cost and Financing Mechanisms

2.4.1 The total project cost is UA 11,478,400, comprising a Bank contribution of UA 10,000,000

from African Development Fund (ADF) resources, and a counterpart contribution of UA 1,478,400 (or

13% of total project financing). Tables 2.3 to 2.6 present the estimated project cost by component and

by sub-component, by source of financing, by expenditure category and per year. A detailed table of

costs is presented in Technical Annex A1.

Table 3

Cost Estimates by Component (in UA thousand) Components Cost in Foreign

Exchange

Costs in Local

Currency

Total Cost Foreign

Exchange %

Support to industrial sector development 6,103.62 754.38 6,858.00 89

Support to build industrial sector support

capacity

1,720.80 1,147.20 2,868.00 60

Project management 534.80 802.20 1,337.00 40

Total baseline cost 8,359.22 2,703.78 11,063.00 80

Provision for price escalation/contingencies 369.35 45.65 415.00 89

Total project cost 8,728.57 2,749.43 11,478.00 76

The exchange rates used are indicated in the introduction to this report (page (i)).

Table 4

Sources of Financing [in UA thousand] Sources of Financing Cost in Foreign

Exchange

Costs in Local

Currency

Total Cost % total

ADF 8,462.00 1,538.00 10,000.00 87.12

Government 547.00 931.00 1,478.00 12.88

Total project cost 9,009.00 2,469.00 11,478.00 100.00

10

Table 5

Project Cost by Expenditure Category [in UA thousand] Expenditure Categories Cost in Foreign

Exchange

Costs in Local

Currency

Total Cost Foreign

Exchange %

Goods 352.20 234.80 587.00 60.00

Services 7,636.20 943.80 8,580 89.00

Operation 758.40 1,137.60 1,896.00 40.00

Total baseline cost 8,746.80 2 316.20 11,063.00 79.00

Provision for price escalation/contingencies 369.35 45.65 415.00 89.00

Total project cost 9,116.15 2,361.85 11,478.00 79.43

Table 6

Expenditure Schedule by Component (in UA thousand) Components 2015 2016 2017 2018 2019

Support to industrial sector development 342.90

2,057.40

2057.40

1,371.60

1,028.70

Support to build industrial sector support capacity 143.40

860.40

860.40

573.60

430.20

Project management 133.70

334.25

334.25

334.25

200.55

Total base cost 620.00

3,252.05

3,249.05

2,279.45

1,659.45

2.5 Project Area and Beneficiaries

2.5.1 The project area is the entire territory of the Republic of Côte d’Ivoire. The project will be

particularly beneficial to: (i) companies in the industrial sector whose competitiveness will be boosted;

(ii) fruits and vegetables farmers’ associations, as well as companies operating within this value chain;

(iii) youths and women, who will have decent employment opportunities in the modern sector of the

Ivorian economy; and (iv) the State, whose agencies in charge of supporting the industrial sector

competitiveness will be strengthened to play their role more effectively; and indirectly, transporters,

inputs and packaging suppliers, and consumers, who will benefit from project spinoffs.

2.6 Participatory Approach to Project Identification, Design and Implementation

2.6.1 The project was designed in close collaboration with technical experts from the Ministry of

Industry and Mines, and from other ministries in charge of implementing the economic development

policy and specifically developing the industrial sector, namely: (i) Ministry of State in charge of

Planning and Development; (ii) Ministry of Trade, (iii) Ministry of National Entrepreneurship,

Promotion of SMEs and Handicrafts; (iv) Ministry within the Office of the Prime Minister in charge of

the Economy and Finance; (v) Ministry of African Integration and Ivorians Abroad; and (vi) the OSAN

team, tasked with preparing an agricultural growth development pole project, consulted to ensure

complementarity between the two projects. The main private sector organizations (FNISCI, CGECI,

FIPME, CCI-CI, etc. ) were also consulted as well as the technical and financial partners (World Bank,

European Union, French Development Agency, United Nations Industrial Development Organization,

JICA, ITC) to discuss possibilities for cooperation and synergy between the different partners in order

to guide the Ivorian authorities in implementing this important program to upgrade Ivorian businesses

and support the promotion of priority SNE sub-sectors. Sub-sector farmers (rubber, mango, etc.) and

distributors were also consulted on the difficulties they encounter throughout the value chain (including

packaging, storage, packing, etc.). The key observations relate to greater involvement of the private

sector in project design and implementation, the need for selectiveness in the choice of activities, and

harmonious coordination with the operations of other donors.

11

2.7 Bank Group Experience and Lessons Reflected in Project Design

2.7.1 Project design took into account lessons from international business upgrading experiences and the need to

build the capacity of public institutions to implement development projects/programmes. PARCSI is informed by

lessons from the EU-supported regional business upgrading programmes for WAEMU member States.

Completed in 2013, this programme has not achieved the desired results, mainly because of

administrative bottlenecks during implementation (the project coordination team was located in

Ouagadougou at the WAEMU headquarters and the local relays were not operational) and difficulties

related to lack of funding to support and implement the tangible investments of businesses affiliated to

the program. PARCSI also leverages lessons from the experiences of Tunisia, Morocco and Senegal,

which show that consultation and the commitment of public and private stakeholders to clear

objectives, as well as institutional capacity-building and the establishment of appropriate financing

mechanisms are crucial to the success of business upgrading and restructuring policies.

2.7.2 PARCSI also incorporates lessons drawn following the implementation of institutional support

projects in Côte d’Ivoire. These include: (i) the need for strong political commitment to ensure the

success of projects; and (ii) the importance of good sector knowledge as a basis for designing these

support mechanisms. PARCSI takes account of these lessons because the Government finances slightly

more than 13% of the project and has prepared several analytical papers used to prepare the project.

Furthermore, PARCSI will be executed by a Directorate of the Ministry of Industry and Mines (MIM)

in close collaboration with the Ministry in charge of SMEs, as well as public and private stakeholders,

including associations involved in the promotion of priority clusters and value chains. In this regard,

the competent Directorate within MIM will be reinforced with human and logistical resources.

PNRMN was prepared in consultation with the main donors and Côte d’Ivoire’s banking sector, which

expressed an interest in supporting its implementation.

2.8 Key Performance Indicators

The results-based logical framework details PARCSI’s main performance indicators.

Box 1

Key Performance Indicators Output Indicators

Adoption of a “Côte d’Ivoire Quality Fruits” label in 2017

Technical assistance (expertise in business upgrade and industry financing)

for the operationalization of ADCI is established in 2016

50 businesses benefit from strategic diagnosis and technical assistance under the National Enterprise Restructuring and

Upgrading Programme (PNRMN) in 2019

50 businesses are supported for the establishment of quality certification and a quality-based approach

A technological platform for the collection and dissemination of data on product availability is in place in 2016.

A national quality plan is adopted in 2016

At least 5% of Ivorian businesses are certified in 2019

Outcome Indicators

Private investment as a percentage of GDP rises from 10.8% in 2014 to 15% in 2019

The fruit and vegetable processing rate grows from 2% in 2014 to 10% in 2019.

Industrial sector contribution to GDP surges from 22% in 2014 to 40% in 2019

Impact Indicators

The number of industrial sector jobs increase from 750,000 in 2014 to 1,000,000 in 2020 (including 75,000 new jobs for

youths and 37,500 new jobs for women).

12

III. Project Feasibility

3.1 Economic and Financial Performance

Since PARCSI is an institutional support project, analysis of the rate of return does not apply.

However, the project will contribute to the upgrading of businesses and local processing of fruits and

vegetables, of which Côte d’Ivoire is the leading producer in the sub-region. However, improvement

of the institutional framework for better promotion of private investment will yield an increase in tax

revenue for the State because of the arrival of new investors as well as the creation of direct and

indirect jobs. It will also generate foreign exchange savings owing to a decline in imports of processed

fruit and vegetable products.

3.2 Environmental and Social Impact

3.2.1 Environment: The project has no negative impact on the environment. Consequently, it is

classified under environmental Category III.

3.2.2 Climate change: The project’s activities do not have any negative impact on the environment and

climate change because they focus on human and institutional capacity-building.

3.2.3 Gender: In April 2009, Côte d’Ivoire adopted a policy on equal opportunity, equity and gender. This policy

is essentially aimed at reducing or even eliminating gender disparities in all development sectors in

terms of access to and control of resources. Similarly, the promotion of gender and equity is a strategic

objective of the PND (2012-2015) and one of its goals is to guarantee the economic security and rights

of women. Côte d’Ivoire ratified most of the international conventions, including the Convention on the

Elimination of all Forms of Discrimination against Women. Furthermore, its constitution of 1 August

2000 reaffirmed the country’s commitment to equality for all and combating discrimination in access to

and control of production resources.

3.2.4 In practice, gender inequality persists because of cultural, legal and institutional factors. Differences in the

level of education between men and women also constitute a major constraint to gender equality. For

example, in 2012, 8% of employed men had secondary-level education, compared to an average of

approximately 3% for women. This disparity is even wider in higher education. Women are poorly

represented in decision-making bodies at all levels (government, parliament, senior public service

positions, etc.), accounting for less than 20% of the staff, on average. There is a high concentration of

women entrepreneurs in the informal sector and in small- and medium-sized enterprises. PARCSI

supports industrial sector activities and those related to fruits and vegetables processing. Women will

benefit from managerial training (at least 25% of women executives from member businesses will be

trained) and jobs that will be created in the fruits and vegetables processing units (where there is

generally a significant female presence). At least 37,500 jobs will be created between 2015 and 2019.

3.2.5 Social: Industrial transformation through the smooth implementation of PNRMN in Côte

d’Ivoire will enhance the contribution of the industrial sector to the creation of wealth and jobs, and

reduce the inequalities that constitute a major risk to social cohesion. The emergence of a modern

competitive industrial sector will also have a positive impact by broadening the tax base. The result

will be an increase in additional revenue for the State, which will thus be able to address its significant

need for infrastructure (opening up access between farming areas and markets) and basic social

services for all Ivoirians.

13

3.2.6 Forced Resettlement: Communities will not be displaced during the implementation of this

project.

IV. Implementation

4.1 Implementation Arrangements

4.1.1 Executing Agency: The Ministry of Industry and Mines (MIM) will have supervisory authority

over the PARCSI project. The Directorate for the Promotion of Private Investments (DPIP) at the

Ministry of Industry and Mines (MIM) will be the project executing agency. It will work in

collaboration with the Directorate for Industrial Production and Competitiveness (DPIC), the

Directorate for Innovation and Industrial Technology (DITI), and the Directorate for the Promotion of

Quality and Standardisation (DPQN).

4.1.2 Project coordination: The Project Implementation Unit (PIU) will be supervised by a

Coordinator, assisted by a Deputy Coordinator. The Coordinator of the Project Implementation Unit

and his/her Deputy will be appointed by the Government after Bank approval of their qualifications and

experience. A Supervisory Committee, comprising representatives of all project beneficiaries, will be

set up and composed of 2 (two) representatives of the Minister of State in charge of Planning and

Development (including the Director General for Planning and Poverty Reduction, who will chair the

structure), two (2) representatives of the Minister of Industry and Mines (one of whom will serve as

vice-chair), one (1) representative of the Minister of Agriculture, one (1) representative of the Minister

of National Entrepreneurship, Promotion of SMES and Handicrafts, one (1) representative of the

Minister at the Office of the Prime Minister in charge of the Economy and Finance, one (1)

representative of the Minister at the Office of the Prime Minister in charge of the Budget, chairs of

private sector organizations (CGECI, FNISCI, FIPME), and the President of the Chamber of

Commerce and Industry. The Supervisory Committee will meet once every six months to deliberate

particularly on the project Work Plan and Annual Budget (WPAB). A coordination committee chaired

by a representative of the Minister of Industry and Mines and comprising all project beneficiary

structures will be established. The Coordination Committee will serve as the technical secretariat of the

supervisory committee and will meet at least once every quarter. Section B3 of the technical annexes

presents details of the project’s implementation arrangements.

4.1.3 ADCI: The Agency for the Development and Competitiveness of Businesses in Côte d’Ivoire

(ADCI) will support the project in preparing technical files and implementing activities under the

National Enterprise Restructuring and Upgrading Programme. In this regard, an agreement between the

State and ADCI will spell out the implementation arrangements.

4.1.4 Disbursements: Funds will be withdrawn from the Bank through the special account method

(mainly for operating expenses and small contract amounts), the direct payment method (for the

procurement of goods and services and other relatively high costs) and the reimbursement method in

case of pre-financing of expenses chargeable to the Bank by the national counterpart, “after prior notice

to the Bank". Counterpart funds will be disbursed by the Public Treasury in accordance with the normal

procedure for settlement of expenses.

4.1.5 Since accounting for all ministries is conducted by the General Directorate for the Treasury

and Public Accounting of the Ministry of Economy and Finance (DGTCP/MEF), which also carries out

cash accounting, it was recommended that the Project Implementation Unit be endowed with an

integrated management accounting system that can handle budgetary, cost and general accounting, so

as to comply with Bank requirements and accountability deadlines. In addition to SIGFIP, this system

will produce quarterly financial monitoring reports (FMR) and annual financial statements.

14

4.1.6. Financial management: An assessment of the financial management capacity of the Ministry

of Industry and Mines (MIM) – the project Executing Agency - led to the recommendation that a

Project Implementation Unit would be established within the Directorate for the Promotion of Private

Investments (DPIP/MIM). Placed under the direct responsibility of the Director for Promotion of

Private Investments (DPIP/MIM), this Directorate will be responsible for PARCSI’s financial

management. It will comprise: (i) a coordinator; (ii) a deputy coordinator; (iii) an administrative and

finance officer; (iv) a public accountant - an official from the Ministry of the Economy and Finance

(MEF); and (v) an accounting assistant. The administrative and financial officer and the accounting

assistant will be recruited based on terms of reference approved by the Bank.

4.1.7 The Project Implementation Unit will adopt the budgetary procedure of MIM and will benefit

from the technical support of structures within the Directorate of Financial Affairs of MIM

(DAF/MIM) and of the Ministry of Economy and Finance (MEF), especially the Directorate General

for the Budget (DGB/MEF). The national counterpart budget will be executed and monitored through

the Integrated System for the Management of Public Finances (SIGFIP), by keying the counterpart

budget execution data into the integrated management system developed for the Project

Implementation Unit.

4.1.8 MIM’s internal control mechanism, based on a service organizational structure that describes

the duties of the various officials and a set of instructions on the execution of the expenditure budget of

MIM, will be supplemented by a formal administrative, financial and accounting procedures manual,

detailing the various procedures applicable to the different cycles of management, including the

simplified procedures provided for in Instruction No. 192/MEF/CAB/DGBF/DAS-SDSD of 22

September 2008 setting out the terms for the execution of expenditure on public investment projects

funded with external financing.

4.1.9 Audit: Considering: (i) the limited human and financial resources of the Audit Chamber of the

Supreme Court; (ii) delays by this institution to audit public accounts; and (iii) constraints on deadlines

for the transmission of project external audit reports to the Bank, it was recommended that private audit

firms acceptable to the Bank be used. These audits will be conducted annually, based on terms of

reference approved by the Bank. The fees and related costs will be settled by direct payment after

validation of the corresponding audit report by the Bank. The overall financial management risk,

composed of the inherent risk and the risk of non-control, is deemed to be substantial. These risks, their

mitigation measures and financial management arrangements are detailed in the technical annexes of

the appraisal report.

4.1.10 Procurement Arrangements: All procurement of goods through international competitive bidding

(ICB) and selection of consultancy services under this project will be done in accordance with the

Bank’s Rules and Procedures for Procurement of Goods and Works (May 2008 edition, revised July

2012) or the Bank’s Rules and Procedures for the Use of Consultants (May 2008 edition, revised July

2012), using the Bank’s standard documents, and with the provisions set out in the various financing

agreements. Procurements through national competitive bidding (NCB) will be conducted in

accordance with national public procurement laws (Decree No. 2009-259 of 6 August 2009 defining

the public procurement code and its amendment Decree No. 2014-306 of 27 May 2014), using the

Borrower’s standard bidding documents, and with the provisions set out in the financing agreement.

This provision follows the conclusions of an assessment of Côte d’Ivoire’s national procurement

procedures (NPP) conducted by the Bank in April 2011 and formalized through signature by the Bank

and the Côte d’Ivoire government of a Letter of Agreement to use national procedures in national

competitive bidding from August 2014. The programme’s procurement plan (PP) was prepared over a

period of 18 months, based on the Bank’s model.

15

4.1.11 The resources, capacity, expertise and experience of the Project Implementation Unit were

reviewed and analysed. Given that it is a first experience in coordinating a project funded by a donor,

the Ministry has proposed staff and focal points with proven technical skills to facilitate project

implementation. However, in view of the weaknesses noted, particularly in procurement and financial

management, two individual consultants are scheduled to be recruited on a competitive basis in these

two areas to assist the PIU. On procurement, it is agreed that the Ministry should deploy a State

official, who has expertise in procurements and a good grasp of national procurement procedures. This

official will be supported by the procurement consultant recruited for a period of two years, and will

benefit from the consultant’s experience in the procurement procedures of multilateral development

banks, in general, and of the African Development Bank, in particular. The detailed procurement

arrangements of the project and the PP are presented in Annex B5 of the technical annexes.

4.2 Monitoring

4.2.1 PARCSI will be executed over a period of 48 months, from July 2015 to June 2019. This is

deemed a reasonable timeframe since most of the procurements will be services provided as direct

support to businesses and promotion of the fruit and vegetable sub-sector, and given that the project

will be supported by a procurement expert who will expedite the preparation of procurement files. The

indicators of the project results-based logical framework will serve as a guide to the Project

Implementation Unit to ensure effective monitoring of the implementation of various project activities.

4.2.2 The project launching mission planned for October 2015 will train the various stakeholders

involved in implementation and/or project beneficiaries on the Bank’s financial management,

procurement and disbursement procedures. The project will be supervised twice a year, on average.

With the technical support of the project’s monitoring/evaluation expert, the PIU will produce a

quarterly implementation report which will be transmitted to the Bank within one month after its

preparation. The PIU will be responsible for monitoring project execution, relying on logical

framework indicators. Supervision missions will be organized at least twice yearly. The project mid-

term review is planned for June 2017. Furthermore, quarterly and annual progress reports will also be

prepared and transmitted to the Bank. The table below sums up the key stages of PARCSI preparation

and implementation.

Table 7

Monitoring Stages/Feedback Loop Schedule Stages Monitoring Activities/Feedback Loop

Sept-2015 Approval of the Grant by the Board Notification to the Government

October 2015 Grant effectiveness Signature of grant agreement and fulfilment of conditions precedent to first

disbursement

October 2015 Launching mission Training for project officials

Nov-2015 NGA and NSA UN Development Business; national and regional newspapers

Nov-2015 Fulfilment of conditions precedent to first disbursement Opening of the special account, creation and decision of members of the EPP

Dec -15 Launching of initial activities Preparation of the work programme and creation of the Project Implementation Unit

Dec. -15 Bid preparation and invitation Preparation by the beneficiary structures and Project Implementation Unit

Feb-15 Bid analysis and contract award Evaluation by the Project Implementation Unit and approval by all bodies

2015-2019 Implementation of activities, other project activities Quarterly and annual progress reports

2015-2019 Launching, supervision and mid-term review missions (June 2017) Mission reports

2016 - 2020 Annual project audits Audit reports

August 2019 Project completion Completion report

16

4.3 Governance

The main risks of PARCSI’s implementation reside in the lack of experience in managing of

institutional support projects by the operational directorate (DPIP) tasked with project implementation.

These risks relate to compliance with Bank rules and procedures for financial management,

procurements and the criteria for selecting public and private sector executives who will benefit from

the various training sessions offered by the project, as well as the use of project assets. The

administrative, accounting and financial procedures manual, the preparation of which is a condition

precedent to first disbursement, will help guide the decisions of those responsible for the project.

Furthermore, the Bank will exercise control over the procurement process by giving formal approval at

all the key stages (including the evaluation of technical and financial bids, draft contracts, etc.). The

project will keep separate accounts for ADF resources and national counterpart resources to facilitate

expenditure monitoring. Project financial statements will be audited annually and a quarterly financial

monitoring report will be produced by the project and sent to the Bank within one month after its

preparation. Project audit reports will be submitted to the Bank six (6) months following the end of the

fiscal year; i.e. not later than 30 June of the following year.

4.4 Sustainability

PARCSI provides for sufficient technical assistance to build the capacity of industrial sector support

structures and of other institutions that benefit from project activities. This will ensure the sustainability

of actions that will be implemented under this project through a transfer of skills to the local

stakeholders. The fact that all stakeholders have a good grasp of the problems and the activities

supported by the project means that there will be proper ownership of project objectives by the public

and private sector. The latter is directly involved in project implementation through its umbrella

structures.

4.5 Risk Management

The project will be executed in a fragile State that has made remarkable progress over the past three

years to enhance social cohesion through the reintegration of tens of thousands of former combatants

and the creation of thousands of jobs for youths. The overall risk is moderate, and the following table

presents the significant risks and mitigation measures.

Table 8

Risks and Mitigation Measures

Risks Magnitude of Risk Mitigation Measures

Socio-political tensions stemming from the presidential

elections of November 2015, which could hamper private investment promotion efforts in the country.

Reticence of the banking sector to finance the material

investments of businesses affiliated to the programme.

Sustainability of State budget support to structures tasked with PNRMN implementation

Medium

This risk is mitigated by the establishment of a consensual electoral commission

and the pursuit of dialogue among the various political stakeholders, as well as the support of the international community for the holding of elections under peaceful

conditions.

The Government and seven local commercial banks signed a Protocol

Agreement under which these financial institutions undertook to support the industrial enterprises that join the programme. ADCI will have enough expertise

to develop the business plans of member enterprises and ensure the structuring of

adequate financing to optimize access to bank financing. Furthermore, the Bank’s Financial Sector Department intends to provide subsequent support to facilitate

access to financing for SMEs/SMIs.

The government created budget lines in 2015 for the PNRMN and undertook to

provide up to UA 1,478,000 to support implementation of the project.

17

4.6 Knowledge Building

The project will help to develop knowledge and skills for the benefit of industrial sector businesses,

professional associations as well as public and private structures in fields such as the promotion of

value chains, exports, competitiveness, quality, and industrial sector productivity. The knowledge

acquired mainly through technical assistance, studies, experience-sharing, information and access to

technical centres as well as the use of equipment will facilitate the assimilation and dissemination of

international best practices. The ultimate objective of this knowledge is to build the capacity of

industrial sector enterprises to create more value-added and develop the expertise of industrial sector

support structures to enable them to better fulfil their mission of supporting businesses. The approach

used in this project to provide direct support to enterprises, structure a priority sector (fruit and

vegetables) to increase the processing rate for local produce and develop the capacity of

competitiveness support structures could serve as a model for the implementation of similar projects in

other countries grappling with trade liberalization under the EPAs, AGOA and the CET. The various

studies conducted under this project and the completion report will be disseminated within the Bank

and in the country. The knowledge accumulated through training, technical assistance and study trips

will facilitate the assimilation and dissemination of best practices.

V. Legal Framework

5.1 Legal Instrument

The proposed financial instrument is an ADF grant of UA 10 million. The Grant Agreement between

the Republic of Côte d’Ivoire and the African Development Bank and African Development Fund

(collectively hereinafter called “the Bank”), shall be signed by the parties concerned.

5.2 Conditions Associated with the Bank’s Intervention

5.2.1. Conditions precedent to Grant effectiveness: The Protocol Agreement shall become effective on its date

of signature by the Donee and the Fund.

5.2.2. Conditions precedent to first disbursement of the Grant: Apart from entry into force of the Grant

Agreement, the Bank shall make a first disbursement of the Grant only after the Donee fulfils the

following conditions to the Bank’s satisfaction:

(i) Provide proof of the opening of the special account in a commercial bank, acceptable to the Bank, to receive

ADF grant resources; and

(ii) Appoint a project coordinator whose qualifications and experience are satisfactory to the Bank.

5.3 Compliance with Bank Policies

5.3.1. The project is compliant with all applicable Bank policies.

VI. RECOMMENDATION

Management recommends that the Board of Directors approve the proposed ADF grant of UA 10

million to the Republic of Côte d’Ivoire to finance the Support to Industrial Competitiveness

Enhancement Project (PARCSI) under the conditions set forth in this report.

I

Annex I

civ

Indicators Unit 2000 2009 2010 2011 2012 2013 2014 (e)

National Accounts

GNI at Current Prices Million US $ 10 808 23 252 24 480 23 656 26 585 29 458 ...

GNI per Capita US$ 670 1 250 1 290 1 220 1 340 1 450 ...

GDP at Current Prices Million US $ 10 420 24 335 24 915 25 406 27 117 31 069 33 884

GDP at 2000 Constant prices Million US $ 10 420 11 336 11 609 11 065 12 149 13 206 14 300

Real GDP Growth Rate % -4,6 3,8 2,4 -4,7 9,8 8,7 8,3

Real per Capita GDP Growth Rate % -6,6 1,9 0,4 -6,7 7,3 6,2 5,8

Gross Domestic Investment % GDP 10,8 11,6 14,9 10,5 16,5 17,0 18,2

Public Investment % GDP 2,8 4,1 5,1 3,6 5,9 6,1 6,8

Private Investment % GDP 8,0 7,5 9,8 6,9 10,6 10,9 11,4

Gross National Savings % GDP 8,0 18,0 16,8 21,5 16,2 14,9 15,8

Prices and Money

Inflation (CPI) % 2,5 4,7 1,7 4,9 1,3 2,6 0,6

Exchange Rate (Annual Average) local currency/US$ 712,0 471,1 494,7 471,4 510,2 493,9 493,8

Monetary Growth (M2) % -29,4 21,3 20,0 11,1 0,7 9,4 15,6

Money and Quasi Money as % of GDP % 16,0 24,3 27,2 31,1 27,1 26,7 28,3

Government Finance

Total Revenue and Grants % GDP 17,1 20,7 18,5 14,4 18,9 19,8 19,6

Total Expenditure and Net Lending % GDP 18,3 18,7 19,0 18,4 22,1 22,1 21,8

Overall Deficit (-) / Surplus (+) % GDP -1,2 1,9 -0,5 -4,0 -3,1 -2,3 -2,2

External Sector

Exports Volume Growth (Goods) % -2,8 9,9 -11,5 1,9 2,2 4,8 -2,8

Imports Volume Growth (Goods) % -15,8 6,4 6,4 -14,5 41,9 4,4 11,0

Terms of Trade Growth % -17,0 -0,6 7,3 14,7 4,5 -3,3 12,2

Current Account Balance Million US $ -293 1 622 253 3 114 -310 -486 -1 042

Current Account Balance % GDP -2,8 6,7 1,0 12,3 -1,1 -1,6 -3,1

External Reserves months of imports 2,3 4,5 4,1 5,5 4,2 4,1 3,8

Debt and Financial Flows

Debt Service % exports 1,5 17,2 14,1 22,7 9,7 12,4 8,2

External Debt % GDP 178,3 71,6 66,2 66,7 44,1 40,1 39,1

Net Total Financial Flows Million US $ 715 -2 077 510 2 536 1 089 ... ...

Net Official Development Assistance Million US $ 351 2 402 845 1 436 2 636 1 262 ...

Net Foreign Direct Investment Million US $ 235 377 339 302 322 371 ...

Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2014 and International Financial Statistics, October 2014;

AfDB Statistics Department: Development Data Portal Database, March 2015. United Nations: OECD, Reporting System Division.

Notes: … Data Not Available ( e ) Estimations Last Update: March 2015

Côte d'IvoireSelected Macroeconomic Indicators

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

%

Real GDP Growth Rate, 2003-2014

0

1

2

3

4

5

6

7

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Inflation (CPI),

2003-2014

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2 003

2 004

2 005

2 006

2 007

2 008

2 009

2 010

2 011

2 012

2 013

2 014

Current Account Balance as % of GDP,

2003-2014

II

Annex II

Table of Bank Group Operations in the Country (in UA million) April 2015

Project Title

Loan/Grant

Amount

(UA million)

Approval Date Signature

Date

Amount

Disbursed

(UA million)

Disbursement

Rate Closing Date

PUBLIC SECTOR PROJECTS

1. Targeted Support and Capacity

Building Project 2.00 1-March-10 1-March-10 1.96 98% 31-March-15

2. PURSSAB/RENFCAP 5.5 3-June-11 10-June-11 4.9 89.13% 31-March-15

3. Gourou Basin Integrated

Management Project 23.00 24-Nov-13 10-June-11 10.05 43.73% 30-June-16

4. Agricultural Infrastructure Support

Project in the Indénié-Djuablin

Region (PAIA-ID)

21.60 01-March-12 20-March-12 7.35 34.87% 28-Feb-18

5. Côte d’Ivoire, Liberia, Sierra Leone

and Guinea (CLSG) Electricity

Networks Interconnection Project.

33.00 6 Nov. 13 22-Nov-13 - - 31–Dec. -18

6. Liquid Waste Development Support

Project (African Water Facility) 1.00 4-Sept-13 13-June-14 0.03 2.91% 31–Dec. -17

7. Youth Employability and Integration

Improvement Support Programme

(PAAEIJ).

)

18.8

4–Dec. -13 6–Dec. -13

13.15

70% 31-Sept-15

8. Social Cohesion Support

Programme

30.00

13-June-14 25-June-14

18.00

60%

31–Dec. -15

9. Road Development and Transport

Facilitation Programme within the

Mano River Union

96.63 17–Dec. -14 - - - 30-June-2020

Public Sector Sub-total 232.00 55.44 23.89 %

PRIVATE SECTOR

1. MicroCred Côte d'Ivoire

- Equity Participation

- FAPA (Technical Assistance)

0.95

0.65

16-April-10

16-April-10

11-June-13

11-June

0.95

0.31

100%

46.96%

30-June-16

30-June-16

2. Henri Konan Bédié Toll Bridge

47.9

01-March-12 28-June-12

47.9

100%

31–Dec. -14

3. AZITO Expansion 28.5 19- Dec -12 22-Oct.-13 24.10 84.72% 15 Nov. 15

III

Annex III

Major Related Projects Financed by the Bank and Other Development Partners of the Country

Source: Ministry of Industry and Mines

DONOR PROJECT BUDGET

(in CFAF

million)

SCHEDULE TYPE OF SUPPORT MAIN ACTIVITIES

- UNIDO

- World Bank

- Preparation of the

industrial policy

98.4

300

2011-2012

2012-2014

- Institutional support for the

preparation of the industrial

policy

- Industrial sector diagnosis

- Institutional diagnosis

- Definition of strategic pillars

- Preparation of the policy

- World Bank - Preparation of the

industrial policy

- Industrial

Competitiveness and

Innovation

Programme (CIIP)

603.261 2013-2015 - Institutional support for the

preparation of sector

policies

- Definition of growth pole strategies

- Conduct of sector studies (value chains)

- JICA - Preparation of sector

industrial policies

focused on the

innovation and

popularization of

technologies

1,859 2015-2017 - Institutional support for the

preparation of sector

policies

- SMI capacity building

- Sector studies

- Definition of strategies and formulation of

technology policies

- EU

- Business

Restructuring and

Upgrade Programme

(PRMN) (Pilot

Programme / PACIR)

858.648 2013-2015 - Reinforcement of the

business support

institutional framework

- Direct support to businesses

- Upgrade of businesses

- Restructuring of businesses

- Reinforcement of quality infrastructure

- Establishment of industrial technical centres

- IBRD - Institutional capacity-

building in the mining

sector

250 2012-2013 - Institutional support for

mining sector development

- Consolidation of the legal and statutory

framework

- Reinforcement of the institutional framework

- Capacity-building to increase value-added

- Government

of Austria /

UNIDO

- Support Fund for

Youth

Entrepreneurship

(FAEJ)

600 2013-2014 - Post-crisis reintegration

- Support to youth

employment

- Financing of youth employment projects

- Reconstruction of technical training centre

IV

Annex IV.

Map of the Project Area

This map is prepared by the ADB Group staff exclusively for the convenience of the readers of the report to which is

attached. The denominations used and the boundaries shown on this map do not imply on the part of the Group and its

affiliates, any judgment on the legal status of any territory or any endorsement or acceptance of such boundaries.