EXTRACTIVE INDUSTRY IN C?TE D’IVOIRE: Ensuring transparency and fighting criminal networks

Historically, C?te d’Ivoire was considered as one of the political stable and economically successful country in Western Africa. In the 1970s the country experienced economic boom called ‘’the Ivoirian miracle’’. That economic boom was triggered by agriculture revenues. The country is one of the largest producers and exporters of cocoa and coffee and palm oil in the world. The two thirds of the population work in the agricultural sector. Unfortunately, the reputation of the country for its political stability has been severely tarnished by the deadly violent conflict of September 2002. That political turmoil undermined the economic growth with 0.2% between 2000 -2007.

During this last decade, the Ivoirian economy shift from agricultural based economy to extractive one. Indeed, crude oil and the refined products have overtaken cocoa and coffee as the main sources of exportation receipts, the United Nations trade and development conference data shows that 36.9% of wood of exportations in 2006 were extractive products while cocoa represented 25%, rubber 4 % and wood 3. % . By contrast, in 2002 cocoa counted for 45.1 % of exportations. Today oil output has become the main source of foreign exchange earnings. After some years of stagnation (2001-2003), the Ivoirian economy grew slightly, 1.5% per annum between 2004 and 2007 thanks to oil and natural gas. The former ministry of mine and energy forecasted the crude oil growth from 46.000 barrels per day in 2008 to 57,000 barrels per day in 2009. As far as natural gas is concerned, there will be a shift from 140 million to 170 million in the 2009. In 2008, new gold mines have been discovered in Yaouré area (Yamoussoukro, (political capital)), Bonikro (Hiré) and the most important one, the gold mine of Tongo which was discovered by the South African company Randgold resources. That gold mine produces according to officials between 90 and 120 tons by 2010. To ensure transparency in extractive industry, the Ivoirian government decided to endorse the Extractive industry initiative (EITI) in February, 2008. H.E Laurent Gbagbo signed the decree setting up an anti-corruption committee. That committee was mandated to work for transparency in extractive industry field. In 2016, the country received 687 million from extractive in taxation. Over 90% of the revenues came from hydrocarbons, including crude oils.[1] Cote d’Ivoire, reveals itself evermore as he country a leading producer of gold, manganese as well as oil and gas. However, social conflicts around mining operations and criminal networks in the field headed former rebel leaders have undermined safety and security in mining areas. The illegal exploitation of unlicensed gold mine raises questions.

In 2015 UN investigators revealed illegal exploitation of an unlicensed gold mine in Gamina. The former rebel leader Issiaka Ouattara, who has gained strong economic power from engaging in predatory activities, was considered the boss of that artisanal gold mine, and buyers sold gold exclusively to him. In 2014, a buyer who challenged the warlord by offering to buy from the miners at a higher price, was assassinated. The close proximity between former rebels and the Ivoirian incumbent president Ouattara hinders its ability to fundamentally foster justice and hold former rebels accountable for their crimes[2].

The government should stop the criminal networks headed by former rebel leaders’ exploitation of the artisanal diamonds and gold sites. While the EITI underscores satisfactory progress of the Ivoirian government in terms of transparency, there is indication that the distribution of revenues remains problematic. The percentage below poverty line which is 46,3%[3] shows that the majority of the population does not benefit from the so called economic healthier of the country. Additionally, EITI reports that ‘’Oil and gas contracts are required published in the Journal Officiel de la République de C?te d’Ivoire, are not accessible online[4]. It means transparency advocated by the government is merely a political discourse.

[1] https://eiti.org/cote-divoire

[2] OZOUKOU D. Building peace or a fragile future? The legacy of conflict in the Ivory Coast https://www.peaceinsight.org/blog/2014/12/building-peace-fragile-future-legacy-conflict-cote-divoire/

[3] https://www.indexmundi.com/cote_d_ivoire/population_below_poverty_line.html

[4] https://eiti.org/cote-divoire