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Mining sector drives economic growth in Côte d’Ivoire

Mining sector drives economic growth in Côte d’Ivoire
Category: Analysis
Date: May 25, 2024
Author: Admin

Côte d’Ivoire’s mining potential is rich and diversified: gold, diamonds, manganese, nickel, bauxite, iron and many others. The mining sector has been growing steadily for more than ten years, and the government’s ambition is to strengthen this sector.

Since 2014, Côte d’Ivoire has established a legal environment to control the development of its mining sector. With the Mining Code adopted on March 24, 2014, the country has been able to significantly increase its gold production in a decade, from five tonnes in 2010 to 42 tonnes in 2022. The country has also diversified its mining resources, with the Foungbesso-Moyango nickel mine starting production in 2017, the Bénéné bauxite mine in 2020 and the Issia coltan mine in 2022-2023.

This growth is set to increase even further. In 2022, nickel production stood at 1,840,795 tonnes, rising to 2,100,000 tonnes by 2024. Manganese production, which stood at 929,705 tonnes in 2022, should pass the one million tonne mark in 2024, thanks in particular to the return of production at the Odienné mine, which had been closed for a certain period. With the reopening of the Bongouanou mine in the last quarter of 2022, bauxite mineral production should reach 210,000 tonnes in 2024.

In 2022, all mining companies declared sales of 1,422.55 billion CFA francs to the Mining Administration, compared with 1,154.191 billion CFA francs in 2021, representing an increase of 23.25%. In terms of economic benefits, the sector’s strong growth has boosted tax revenues and the number of jobs created. For example, tax revenues generated by mining activities have risen from 33.96 billion CFA francs in 2016 to 314 billion CFA francs in 2022. Similarly, the number of direct jobs in the mining sector rose from 8,291 in 2016 to 20,762 in 2022.

Forecasts for the next years

Côte d’Ivoire’s government aims to increase the contribution of the mining sector (excluding oil and gas) to the country’s GDP from around 3% in 2018 to 6% by 2025. A Mining Policy and Strategic Action Plan have been elaborated and adopted covering the period 2022-2026.

Action is also being taken to revise the 2014 Mining Code, with the aim of confirming the mining sector’s position as a major driver of economic growth in Côte d’Ivoire. This ambition will be reflected in the intensification and diversification of mining production over the coming years.

In June 2023, at the launch of the review of the Ivorian Mining Code, Mamadou Sangafowa-Coulibaly, the country’s Minister of Mines, Petroleum and Energy, told the press: “The first thing to take into account is how to make our country more attractive for mineral exploration. I consider that all the facilities that can be granted to encourage companies to come and explore our subsoil should be included. The second thing is to take steps to ensure equity in the distribution of wealth, once a discovery has been made. We need to see how the country can benefit more from these discoveries, without of course ignoring the fact that those who have invested must ensure a return on their investment”.

Reform work on the Mining Code of March 24, 2014 is currently in progress.

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