Long-Term Finance in Côte d’Ivoire Country Diagnostic Report

The report identifies significant long-term financing gaps in Côte d’Ivoire's infrastructure, housing, and SME sectors, driven by a reliance on short-term bank lending and government borrowing that crowds out the private sector. Key hurdles include the lack of registered real estate for collateral, inadequate PPP frameworks, and a fragmented regional capital market. The document recommends structural reforms to land titling, the diversification of institutional investor mandates, and the strengthening of the national PPP unit to mobilize domestic and private capital.

• Côte d’Ivoire faces a substantial absolute infrastructure investment gap until 2040, estimated to exceed USD 50 billion, with the most critical shortfalls in the electricity (USD 21.9 billion) and water (USD 22.1 billion) sectors.
• The housing sector suffers from a deficit of 600,000 units, with an annual gap of 50,000 units. Financing is constrained by low household incomes and short loan maturities, typically 8 to 10 years, making homeownership unaffordable for over 80% of urban households.
• SMEs experience a significant annual financing gap, estimated between USD 3.9 billion and USD 4.2 billion for 2017. Approximately two-thirds of their financing needs remain unmet by the formal financial sector, forcing a reliance on informal funding from family and friends.
• Government borrowing creates a 'crowding out' effect, as banks prefer investing in risk-free sovereign securities over private sector lending. This is facilitated by the BCEAO, which provides liquidity to banks against government securities.
• The transition to Basel II and III prudential frameworks (2018–2022) is expected to constrain long-term lending in the short term as banks adjust to higher capital requirements and stricter liquidity and interest rate risk management.
• Lending against real estate is severely limited because only a small portion of properties are formally registered. High registration and transfer fees, combined with a slow judicial process for enforcing liens, deter the use of real estate as collateral.
• The domestic capital market is fragmented and lacks liquidity. Government securities are split between the BRVM platform and Agence UMOA-Titres auctions, which limits competition and hinders the establishment of a liquid benchmark yield curve.
• Institutional investors, such as pension funds and insurance companies, contribute to 'reverse maturity transformation' by investing long-term savings into short-term bank deposits rather than corporate bonds or project finance.
• The Public-Private Partnership (PPP) framework is hampered by the limited capacity and resources of the CNP-PPP unit, weak institutional support from line ministries, and the lack of independence of infrastructure utilities regarding tariffs and funding.

APA

Fuchs, M., Hassler, O., Le Lesle, F., Rudo, D., & Witte, M. (2020). Long-Term Finance in Côte d’Ivoire Country Diagnostic Report. FSD Africa. https://fsdafrica.org/wp-content/uploads/2025/05/CIV_LTF_CountryReport_EN_20200211_WEB.pdf

Chicago

Fuchs, Michael, Olivier Hassler, Franz Le Lesle, Dianne Rudo, and Makaio Witte. Long-Term Finance in Côte d’Ivoire Country Diagnostic Report. FSD Africa, 2020. https://fsdafrica.org/wp-content/uploads/2025/05/CIV_LTF_CountryReport_EN_20200211_WEB.pdf.

Wikipedia

{{cite report |last1=Fuchs |first1=Michael |last2=Hassler |first2=Olivier |last3=Le Lesle |first3=Franz |last4=Rudo |first4=Dianne |last5=Witte |first5=Makaio |title=Long-Term Finance in Côte d’Ivoire Country Diagnostic Report |publisher=FSD Africa |date=2020 |url=https://fsdafrica.org/wp-content/uploads/2025/05/CIV_LTF_CountryReport_EN_20200211_WEB.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fuchs2020longterm, author = {Fuchs, Michael and Hassler, Olivier and Le Lesle, Franz and Rudo, Dianne and Witte, Makaio}, title = {{Long-Term Finance in Côte d’Ivoire Country Diagnostic Report}}, institution = {FSD Africa}, year = {2020}, url = {https://fsdafrica.org/wp-content/uploads/2025/05/CIV_LTF_CountryReport_EN_20200211_WEB.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }