Ivory Coast's second port San Pedro re-opens after mutiny

The second port of San Pedro in Cote d'Ivoire has reopened today after being closed for two days due to a mutiny within the country's army. Stephanie He, Head of Asset Management at Hudson and Co, provided insights on the impact of these recent events on the country's economy. Despite concerns about stability, Stephanie highlighted the challenges faced by the B.I.V.I. markets, which have seen a downward trend following a strong performance in previous years. The regional stock market recorded a negative USD adjusted return of minus 4%, signaling a correction after several years of exceptional returns. While some companies in sectors like banking and agro-processing have reported good financial results, many listed companies have not seen their stock prices affected significantly. The recent mutiny has further strained the economy, with banks, stores, and transportation services being disrupted for 48 hours. The government agreed to pay $100 million to the mutinous soldiers to resolve the situation. This, along with a 35% drop in cocoa prices in the international market, will likely impact the government budget. Additionally, the country's plan to release a Euro bond may face challenges in attracting favorable rates due to recent events. Despite these challenges, Stephanie remains optimistic about the country's strong growth foundations and believes the economy will recover. The broader Francophone West African region may also feel the impact of the events in Cote d'Ivoire, but the overall economic environment in the region, including low inflation and measures to stabilize financial stability, remains favorable. While the stock market has experienced declines in recent years, Stephanie views this as a correction from previous highs and expects a potential rally towards the end of the year as stocks reach their intrinsic value. It is essential to monitor how these developments will continue to shape Cote d'Ivoire's economy in the coming months.