Cote d’Ivoire - Building and Construction Equipment and Materials Cote d’Ivoire - Building
For a country still trying to catch up on nearly a decade of neglect of its infrastructure, the construction sector is a very promising sector for U.S. companies. The signing of the Millennium Challenge Corporation’s compact with Côte d’Ivoire provides a possibility for U.S. companies to win contracts in road and school construction and rehabilitation.
Overview
The housing need in Côte d’Ivoire is estimated at 400, 000 to 600, 000 units, with a yearly increase of 50, 000. The Ivoirian government is planning to address the need of 400,000 new homes (200,000 of which are needed in the economic capital of Abidjan). There are 71 construction sites in progress to address this need, but this will only cover a small portion of overall demand. So far, only 12,785 houses have been completed, of which 4,003 have been delivered.
Building and construction has been one of the leading growth sectors since 2011. From 2016 to 2017, 40.5% of the imported construction equipment came from the U.S. The constant demand for cement shows the dynamism of the sector and the need for more suppliers. The four cement producers established in the country struggle to satisfy demand despite their 2.9 million metric tons of production capacity. The Ministry of Industry recently announced that four new cement producers will begin operations soon. The MCC compact with Cote d’Ivoire will fund two main projects: 1) a road construction and rehabilitation project focused on Abidjan, and 2) a school construction project in and around the cities of Bouaké and San Pedro. Please consult the MCC website for more details.
Telecommunications firms, including cellular telephone companies and Internet providers, have continued to make substantial investments in infrastructure, facilities and equipment. The government launched important infrastructure projects such as roads and bridges in the country. The government set up a committee to promote Public-Private-Partnerships (PPP) to invite companies to negotiate and bid on work on a variety of infrastructure projects. In the coming years, the building and construction market is expected to continue to grow, given the government‘s priority of addressing the housing shortage and crumbling infrastructure nationwide. Stronger macroeconomic growth and foreign investment (from private and public lending institutions) suggest there will be a robust construction sector for the foreseeable future.
| 2015 | 2016 | 2017 | 2018 (Jan-April) | |
| Total Local Production | N/A | N/A | N/A | N/A |
| Total Exports | 73,900 | 11,802 | 2,497 | 5,475 |
| Total Imports | 218,100 | 332,384 | 111,638 | 325,775 |
| Imports from the US | 5,300 | 3,222 | 270 | 425 |
(total market size = (total local production + imports) - exports)
NOTE:; N/A =Not Available
Leading Sub-Sectors
The housing market, road construction, and other large-scale infrastructure sectors offer excellent opportunities to promote American-made building materials, heavy equipment, specialized project management tools and related services. U.S.-made large-scale air conditioning units and refrigeration systems could do well in the Ivoirian market. Construction equipment (new and remanufactured) and related spare parts could be attractive in the Ivoirian marketplace, particularly if the U.S. Dollar-CFA exchange rate is favorable.
Opportunities
In addition to the building and construction sector, the Ivoirian home remodeling market has the potential to grow significantly over the long term. Significant opportunities exist in retail providing equipment, furniture and housewares.
Web Resources
Côte d’Ivoire’s Investment Promotion Centre (CEPICI)
Chambre de Commerce et d‘Industrie de Côte d’Ivoire
Bureau National d‘Etudes et de Développement (BNETD)
Ivoirian Customs Office
Ministry of Construction
Public-Private-Partnership Committee