How COVID-19 is impacting Côte d'Ivoire’s economy

The COVID-19 pandemic has been wreaking havoc on economies across the globe, and countries in Sub-Saharan Africa are no exception. Ayalenesh Tafesse, Country Risk Analyst at Rand Merchant Bank, recently discussed how the pandemic is impacting the economy of Côte d'Ivoire. As the virus continues to spread, the economic landscape of the region is rapidly changing. Tafesse mentioned that growth projections for the African continent as a whole have been revised downwards, from an expected 3% to around 2%. This decline signifies a significant challenge for countries, especially those heavily reliant on global trade and single commodity exports, and with limited financial buffers in place. However, Tafesse highlighted that Côte d'Ivoire is in a relatively better position compared to some other high-risk countries. The country's diversified economy and manageable debt levels provide some stability amidst the crisis. Nonetheless, there are still areas of concern for Côte d'Ivoire, such as a drop in demand from key trade partners and the impact on the tourism sector. Tourism, which contributes about 10% to the country's GDP, is already feeling the effects of cancellations and disruptions. Additionally, the government's plans to issue a Eurobond this year are facing challenges due to market volatility. While authorities are keen on raising funds before the upcoming elections, they need to carefully assess the timing to ensure a successful issuance. Despite the current market uncertainties, there is hope that emerging markets like Côte d'Ivoire could attract investor interest as global interest rates decline. Tafesse emphasized the importance of monitoring market conditions and seizing opportunities when they arise. Overall, Côte d'Ivoire's economy is navigating through turbulent waters, and strategic decision-making will be crucial in mitigating the impact of the pandemic on the country's growth prospects.