Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Ivory Coast Crisis Hurting Economy, Ouattara Says

Ivory Coast Economy Facing ‘Catastrophic’ Effect
Ivory Coast’s post-election crisis is having a “catastrophic” effect on the West African nation’s economy, said President-elect Alassane Ouattara. Photographer: Sia Kambou/AFP/Getty Images

Ivory Coast’s post-election crisis is having a “catastrophic” effect on the gross domestic product and may spark food shortages, President-elect Alassane Ouattara said, calling for “legitimate force” to oust his rival, Laurent Gbagbo.

“It’s clear that the GDP is going to decrease, exports are going to slow down, and imports as well,” Ouattara said yesterday in an interview in Abidjan, the commercial capital. “How about the local foodstuffs sector? If this continues we are going to have shortages.”

The Nov. 28 election was meant to boost economic growth and investment in the world’s biggest cocoa producer by unifying the West African nation, which was divided by a civil war in 2002 into a government-controlled south and rebel-held north. Instead, the country is gripped by a deadlock, with Ouattara, 69, recognized internationally as the victor, and Gbagbo, 65, refusing to cede power.

“The effects of the post-electoral stalemate will most likely come to the fore in the coming months,” said Standard Bank Plc analysts including Samir Gadio and Stephen Bailey-Smith in an e-mailed report yesterday.

Economy Contracting

Ivory Coast’s economy will contract 5 percent in the three months to March and 3.1 percent in the second quarter, after expanding 2.6 percent in 2010, according to the bank. Inflation in the first quarter may reach 12.1 percent, from 4.3 percent in the last three months of 2010.

Kenyan Prime Minister Raila Odinga, the African Union’s envoy in the crisis, said his meetings yesterday with Gbagbo and Ouattara failed to reach a settlement. Ouattara offered to give 25 percent of the positions in the Cabinet to Gbagbo’s allies, he said.

“I regret to announce that the breakthrough that was needed did not materialize,” Odinga said in an e-mailed statement today in Nairobi, the Kenyan capital. “Time is running out for an amicably negotiated settlement.”

After a visit to the Ghanaian capital Accra, Odinga said in a second statement today President John Atta Mills agreed to the use of force to oust Gbagbo “only as a last resort.” Odinga will also visit Mali and Burkina Faso today before heading to Angola and South Africa, according to the statement. The Economic Community of West African States, or Ecowas, supports Ouattara’s election victory and said on Dec. 24 that it would use force to oust Gbagbo if he refused to leave office.

Rejecting Odinga

Gbagbo rejected Odinga as mediator because he took Ouattara’s side in the impasse, Reuters reported today, citing Alcide Djedje, Gbagbo’s foreign minister.

“After this mission I think that the AU and Ecowas will understand that we will have to rely on other measures, including legitimate force,” Ouattara said.

West African military leaders plan to tour Bouake, a town in northern Ivory Coast controlled by rebels who support Ouattara, as a possible site to launch an intervention, Ouattara said.

Ouattara, a former deputy director of the International Monetary Fund, is holed up in the Golf Hotel in Abidjan, surrounded by troops loyal to Gbagbo and protected by United Nations peacekeepers. Visits to the 300-room hotel are made by helicopter, and Ouattara’s Cabinet holds meetings in an air-conditioned tent on an adjacent soccer field.

Invited to Botswana

Botswana’s President Ian Khama invited Ouattara to visit the southern African nation on a state visit, according to an e-mailed statement from the country’s Foreign Affairs and International Cooperation Ministry.

As the crisis continued, Ivory Coast’s $2.3 billion Eurobonds fell to the lowest since they were issued in April, amid concern over whether the country would make a missed $29 million interest payment by the end of a grace period Jan. 31. Ouattara cast doubt on whether Gbagbo would make the payment.

“We think that if they wanted to pay, they would have done so,” he said.

Gbagbo’s administration has withdrawn 80 billion CFA francs ($163 million) from the country’s account at the Dakar-based Central Bank of West African States “to pay salaries, to pay mercenaries and to take money out of the country instead of paying what they have to pay to the London Club, so clearly they have no intention of paying,” he said, referring to the group of creditors that hold Ivory Coast’s bonds.

The debt due 2032 rose for the first day in six today, adding 1.6 percent to 37.458 cents on the dollar as of 7:11 p.m. in Abidjan, according to data compiled by Bloomberg. That pushed the yield to 16.985 percent, from a close yesterday of 17.197. On Nov. 26, the last day of trading before the election, the bond’s price was 59.125 cents on the dollar, with a yield of 11.005 percent.

At least 247 people have been killed in violence that broke out after the vote, according to the UN, including 11 people who died last week in Abobo, an Abidjan suburb that supported Ouattara in the election.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.