Côte d'Ivoire Economy Profile - Doing Business 2019
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Doing Business 2019 Côte d'Ivoire Economy Profile of Côte d'Ivoire Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2
Doing Business 2019 Côte d'Ivoire About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2019 Côte d'Ivoire Ease of Doing Business in DB 2019 Rank Region Sub-Saharan Africa 190 1 Côte d'Ivoire Income Category Lower middle income 122 DB 2019 Ease of doing business score Population 24,294,750 0 100 City Covered Abidjan 58.00 DB 2019 Ease of Doing Business Score 0 100 58.00: Côte d'Ivoire (Rank: 122) 53.50: Mali (Rank: 145) 52.89: Nigeria (Rank: 146) 51.61: Regional Average (Sub-Saharan Africa) 51.57: Burkina Faso (Rank: 151) 51.42: Benin (Rank: 153) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Côte d'Ivoire 1 26 28 44 55 80 82 Rank 106 112 109 136 142 143 149 162 163 175 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Côte d'Ivoire 100 93.70 80 70.00 59.37 58.03 Score 60 56.23 55.74 52.44 46.49 48.00 40.00 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4
Doing Business 2019 Côte d'Ivoire Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a business or to leave the home to register the also collected for the second largest business city. company - The entire office space is approximately 929 square meters (10,000 square feet). - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per • Each procedure starts on a separate day (2 capita. procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits. - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final document is received The owners: • No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5
Doing Business 2019 Côte d'Ivoire Starting a Business - Côte d'Ivoire Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement XOF 25,000 City Covered Abidjan Indicator Côte d'Ivoire Sub-Saharan OECD high Best Regulatory Africa income Performance Procedure – Men (number) 4 7.4 4.9 1 (New Zealand) Time – Men (days) 6 23.3 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 2.7 44.4 3.1 0.0 (Slovenia) Procedure – Women (number) 4 7.6 4.9 1 (New Zealand) Time – Women (days) 6 23.4 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 2.7 44.4 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 2.7 10.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Côte d'Ivoire and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 93.70: Côte d'Ivoire (Rank: 26) 90.60: Benin (Rank: 61) 88.19: Burkina Faso (Rank: 79) 84.05: Mali (Rank: 110) 82.97: Nigeria (Rank: 120) 78.52: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6
Doing Business 2019 Côte d'Ivoire Figure – Starting a Business in Côte d'Ivoire – Procedure, Time and Cost Time (days) Cost (% of income per capita) 6 1.8 1.6 Cost (% of income per capita) 5 1.4 4 1.2 Time (days) 1 3 0.8 2 0.6 0.4 1 0.2 0 0 1 2 3 *4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 7
Doing Business 2019 Côte d'Ivoire Details – Starting a Business in Côte d'Ivoire – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Open a bank account and deposit the minimum capital at the bank 1 day no charge Agency : Bank There are two ways to deposit the start-up capital. Business founders can open a bank account to deposit their start-up capital or deposit the capital with a notary and obtain a statement certifying the deposit. 2 Register at the one-stop shop (CEPICI) and request the publication of the 3 days XOF 15,000 notice of company incorporation Agency : CEPICI Companies can be incorporated with a notarized deed or with a privately signed deed. Most limited liability companies are incorporated with a privately signed document. The company registration is made at the One-Stop Shop (CEPICI). Since December 2012, the CEPICI allows entrepreneurs to register with the commercial registrar (Registre du Commerce et du Crédit Inmobilier), the tax authority (Direction Générale d’Impots) and the social security institute (Caisse Nationale de Prévoyance Sociale). The one-stop-shop also publishes the legal notice of incorporation on their website (http://www.cepici.gouv.ci/). 3 Obtain a company seal 1 day approximately XOF Agency : Seal maker 10,000 Business founders can make a company seal at a sealmaker for approximately XOF 10,000. 4 Notify the company's address to the local Tax Authority 1 day (simultaneous no charge Agency : Local Tax Authority (Centre des Impôts) with previous After the company was registered with the Tax Authority (Direction Générale des procedure) Impôts, DGI), the company's address must be informed to the local tax authorities. A notification of the company's address (demande de rattachement) must be delivered to the local Tax Authority (Centre des Impôts du siège social). Takes place simultaneously with previous procedure. Page 8
Doing Business 2019 Côte d'Ivoire Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any • Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or completion topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery. - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted Cost required to complete each procedure (% of as procedures. income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is • Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9
Doing Business 2019 Côte d'Ivoire Dealing with Construction Permits - Côte d'Ivoire Standardized Warehouse Estimated value of warehouse XOF 46,676,579.80 City Covered Abidjan Indicator Côte d'Ivoire Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 21 14.7 12.7 None in 2017/18 Time (days) 162 145.7 153.1 None in 2017/18 Cost (% of warehouse value) 5.2 8.8 1.5 None in 2017/18 Building quality control index (0-15) 10.0 8.5 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Côte d'Ivoire and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 73.95: Benin (Rank: 51) 73.25: Burkina Faso (Rank: 58) 66.74: Mali (Rank: 109) 59.37: Côte d'Ivoire (Rank: 142) 58.59: Regional Average (Sub-Saharan Africa) 57.84: Nigeria (Rank: 149) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Côte d'Ivoire – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 160 3 140 2.5 Cost (% of warehouse value) 120 2 Time (days) 100 80 1.5 60 1 40 0.5 20 0 0 1 *2 3 *4 *5 *6 *7 8 9 10 11 12 13 14 15 16 17 18 * 19 20 21 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 10
Doing Business 2019 Côte d'Ivoire Figure – Dealing with Construction Permits in Côte d'Ivoire and comparator economies – Measure of Quality 15 12.0 11.8 Index score 10.0 10 9.0 8.5 8.5 5 0 Côte d'Ivoire Benin Burkina Faso Mali Nigeria Sub-Saharan Africa Details – Dealing with Construction Permits in Côte d'Ivoire – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain proof of ownership of the land 10 days XOF 6,000 Agency : Domaine Urbain or Conservation Foncière Only about 30% of landowners have a property title. 2 Obtain technical file from authorized land surveyor 7 days XOF 125,000 Agency : Authorized Land Surveyor In an urban zone, the cost for the technical dossier that will be used to produce six excerpts is fixed at FCFA 710,000.00 by the Order of Land Surveyors. The land surface is taken into account in rural areas. 3 Obtain a geotechnical study 25 days XOF 900,000 Agency : LABOGEM BuildCo will request a soil test for the structural calculations for the foundation. The topographical survey is provided for this test. 4 Obtain approval of the topographical survey by all agencies at the GUPC 10 days XOF 21,000 and the Urban Planning Certificate Agency : Guichet Unique du Permis de Construire (GUPC) The One-stop shop (Guichet Unique du Permis de Construire) is now fully functional. All services are represented on the premises. BuildCo must submit several copies of the topographical survey to obtain the VISA from wastewater, Sanitation and planning Department, Urban Department and Land Registry administration, Water Authority (SODECI) and Electricity Authority (CIE). In addition, the Urban planning certificate is also obtained at the same time. Several copies of the topographical survey must be submitted to obtain the different VISAs. 5 Obtain "notice securité incendie" from the Office National de la Protection 10 days no charge Civile Agency : Office National de la Protection Civile Office Nationale de la Protection Civile (ONPC) gives its opinion on the safety rules. The firefighters will certify that all safety standards were respected. A report is the issued by the firefighters and if necessary the architect adjusts plans based on the firefighters report. Normally, this is done only for large buildings, but a warehouse falls into the category that requires the certificate. 6 Register project with the Order of Architects 1 day no charge Agency : Ordre National des Architectes The architect who designed the plans will register these plans with the National Order of the Architects. It is one way of certifying that the plans were completed by a licensed architect. 7 Hire a bureau de controle technique 1 day XOF 1,166,914 Agency : Private firm According to Article 21 of Decree Nº2016-49 dated February 10, 2016, for Class IV buildings - such as the Doing Business warehouse in the case study assumptions - it is mandatory to hire an independent firm to supervise and conduct inspections during construction. This private firm will be held liable for any defaults in construction. Page 11
Doing Business 2019 Côte d'Ivoire 8 Obtain building permit 30 days XOF 50,000 Agency : Local Municipality (SGUFH - Service du Guichet Unique du Foncier et de l'Habitat) The dossier required to obtain a building permit includes the following documents: • Block plan (scale,1/500, 1/200, 1/100) • Execution plan (scale 1/50) • Summary of technical specifications • Summary of cost estimates • Proof of property ownership • Written approval from the Minister of Urban Planning Six copies of the dossier must be sent to the Building Permit Commission. The Commission is comprised of the Construction Minister, a representative of the Municipality, a representative of the Civil Protection Department, a representative from the Hygiene Department, and a representative from the Order of Architects. The building permit is obtained within 3 months on average if one does not pay bribes. Two weeks after submission, the dossier is sent to the Municipality, where the permit fee is paid. If the total surface is less than 120 sq.m. and the estimated cost of construction is less than FCFA 30 million, there is no need to have the architectural plans designed by an architect, both conditions must be met. However, for any building with a total surface of more than 120 sq.m. or the estimate cost of construction is higher than FCFA 30 million, the plans must be drawn by an architect. 9 Receive random inspection to verify that a building permit has been issued 1 day no charge Agency : Brigade de Contrôle d’Investigation du Ministère de la Construction The Brigade de Contrôle d’Investigation du Ministère de la Construction will inspect the construction site to first verify if a building permit was issued. 10 Receive random inspection during construction - II 1 day no charge Agency : Brigade de Contrôle d’Investigation du Ministère de la Construction In general the Brigade de Contrôle d’Investigation du Ministère de la Construction will inspect the construction site several times during the construction phase (generally about once every 3 weeks). This inspection is only to check if the permit has been issued and it is not a technical inspection. 11 Receive random inspection during construction - III 1 day no charge Agency : Brigade de Contrôle d’Investigation du Ministère de la Construction This inspection is only to check if the permit has been issued. It is not a technical inspection. 12 Receive random inspection during construction - IV 1 day no charge Agency : Brigade de Contrôle d’Investigation du Ministère de la Construction This inspection is only to check if the permit has been issued. It is not a technical inspection. 13 Receive random inspection from Services du District d’Abidjan 1 day no charge Agency : Services du District d’Abidjan The Services du District d’Abidjan is responsible for all of Abidjan and will inspect any construction site, even if it has not issued the building permit for this particular project. This inspection is only to check if the permit has been issued. It is not a technical inspection. 14 Receive random inspection from Services de la Municipalité 1 day no charge Agency : Services de la Municipalité The technical services of the Municipality will randomly inspect the construction site. This inspection is only to check if the permit has been issued. It is not a technical inspection. 15 Receive inspection from the National Security Commission to verify that 1 day no charge the building conforms to security standards Agency : National Security Commission The fire safety inspections are unannounced. The National Security Committee will visit the warehouse to ensure that fire safety standards have been met. 16 Request certificate of conformity 1 day XOF 26,000 Agency : Ministère de la Construction The request to obtain a certificate of conformity is done at the Ministry of Construction and the following documents must be submitted: - application form - approval of the building permit - authenticated plans - different visas The cost of the certificate of conformity is XOF 25,000 + XOF 1,000 for the cardboard folders. Page 12
Doing Business 2019 Côte d'Ivoire 17 Receive inspection to verify the building was built according to approved 1 day no charge plans Agency : Ministère de la Construction The technical services division of the Ministry of Construction will inspect the warehouse after construction is complete to verify that the warehouse has been built in compliance with the approved plans and in conformity with existing regulations. This inspection is required by law. If no issues are found, the 'proces verbal' will be written and the certificate of conformity is sent to the Minister for his signature. 18 Obtain certificate of conformity 73 days no charge Agency : Ministry of Construction and Urban Planning (Ministère de la Construction et de l’Urbanisme Request water connection 1 day no charge 19 Agency : SODECI 20 Receive site inspection by water company 1 day no charge Agency : SODECI The inspection takes place within a week of applying for water. The cost estimate is given a few days after the inspection. 21 Obtain water connection 14 days XOF 130,000 Agency : SODECI It takes 7 days to obtain the connection once the payment is made. The total time from the time of application to the time of final connection may take up to one month if no preliminary installation was made. The water service agency is generally efficient, and the connection can be obtained quickly. Takes place simultaneously with previous procedure. Page 13
Doing Business 2019 Côte d'Ivoire Details – Dealing with Construction Permits in Côte d'Ivoire – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Civil servant reviews plans. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections by 1.0 (0-2) external engineer or firm; Unscheduled inspections; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law or Decennial Insurance)? (0-1) to obtain insurance . Professional certifications index (0-4) 2.0 What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. Page 14
Doing Business 2019 Côte d'Ivoire What are the qualification requirements for the professional who supervises the construction University degree 0.0 on the ground? (0-2) in engineering, construction or construction management. Page 15
Doing Business 2019 Côte d'Ivoire Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 • Does not include time spent gathering kilowatt (kW). information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property income per capita) because the warehouse has access to a road. - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or • Value added tax excluded switchboard and the meter base. The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that • Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest • Regulatory monitoring of utilities’ performance supplier. (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 16
Doing Business 2019 Côte d'Ivoire Getting Electricity - Côte d'Ivoire Standardized Connection Price of electricity (US cents per kWh) 11.8 Name of utility Compagnie Ivoirienne d'Electricité (CIE) City Covered Abidjan Indicator Côte d'Ivoire Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 8 5.2 4.5 3 (25 Economies) Time (days) 53 112.0 77.2 18 (3 Economies) Cost (% of income per capita) 2147.3 3456.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 4 1.6 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Côte d'Ivoire and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 56.23: Côte d'Ivoire (Rank: 143) 51.57: Mali (Rank: 159) 49.00: Regional Average (Sub-Saharan Africa) 42.63: Nigeria (Rank: 171) 33.84: Benin (Rank: 176) 29.42: Burkina Faso (Rank: 181) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 17
Doing Business 2019 Côte d'Ivoire Figure – Getting Electricity in Côte d'Ivoire – Procedure, Time and Cost Time (days) Cost (% of income per capita) 2500 50 Cost (% of income per capita) 2000 40 Time (days) 1500 30 1000 20 10 500 0 0 1 2 3 4 5 6 7 *8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Côte d'Ivoire and comparator economies – Measure of Quality 8 7 6 Index score 5 4 4 3 2 1.6 1 0 0 0 0 0 Côte d'Ivoire Benin Burkina Faso Mali Nigeria Sub-Saharan Africa Page 18
Doing Business 2019 Côte d'Ivoire Details – Getting Electricity in Côte d'Ivoire – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain internal wiring inspection by government agency SECUREL 5 calendar days XOF 200,000 Agency : SECUREL Before applying for a new connection, the customer has to ask for an internal inspection at LBTP/Securel to obtain a certificate of conformity. SECUREL is a government agency that was created to check the internal wiring in buildings of new customers. 2 Submit application to CIE and await external inspection 7 calendar days XOF 0 Agency : Compagnie Ivoirienne d'Electricité (CIE) The application has to be submitted in person. The following documents have to be attached: the certificate confirming the security of the internal wiring, a topographique excerpt or the building permit to justify the quality of the land owner. 3 Receive external site inspection by CIE and await estimate 7 calendar days XOF 0 Agency : Compagnie Ivoirienne d'Electricité (CIE) CIE comes to the site to do an external inspection to determine the cost of the connection and to do a technical study that details what works have to be done. Someone from the customer’s party has to be present. Following the visit, CIE will finalize the estimate. 4 Request authorization of external works from Ageroute and municipality 7 calendar days XOF 0 Agency : Ageroute and municipality For overhead connections, an authorization from Ageroute is necessary for the external connection works. The client also needs to inform the municipality of the works. The client sends geographic maps indicating the location of the works to the Ageroute and waits for the 'validation meeting' to have his project approved. For the Municipality, the client only has to mail a quick description of the works to the technical department of the municipality. 5 Hire electrical contractor and inform CIE of choice 3 calendar days XOF 0 Agency : Compagnie Ivoirienne d'Electricité (CIE) The external works can be performed by the utility or a private contractor licensed by the CIE. The second option is more frequent. The client must then inform the CIE on the choice of contractor - as well as the supplier for the material for the external works. The CIE may be informed by courrier, but some customers prefer to go directly to the office of the CIE and show directly the 'Devis' of the contractor that has been hired. 6 Purchase material and have it tested by CIE 5 calendar days XOF 0 Agency : Electrical Contractor For a requested load of 140kVA, in general an additional transformer needs to be installed. The customer's electrical contractor will buy the material. Before beginning the external works, however, the contractor of the client will need the CIE to come on-site and approve the material. There is usually no wait time to buy a transformer on the local market, although some contractors prefer to save money by importing. The customer pays the full cost for the transformer and the installation. 7 Await completion of external works by private contractor and receive 19 calendar days XOF 19,396,671.5 inspections Agency : Electrical Contractor The electrical contractor does the final connection. The utility is supervising the work of the electrical contractor. Basically, the utility passes by every day to check and supervise the works executed by the contractor. 8 Sign supply contract to receive meter installation and electricity turn-on by 14 calendar days XOF 448,711.61 CIE Agency : Compagnie Ivoirienne d'Electricité (CIE) The customer concludes a supply contract with the CIE. To conclude a supply contract, the customer has to submit the certificate of conformity of the internal wiring. He/she must also pay the security deposit - if it wasn't already settled upon the payment of the 'devis'. CIE will then proceed to install the meter and do the electricity turn-on. Takes place simultaneously with previous procedure. Page 19
Doing Business 2019 Côte d'Ivoire Details – Getting Electricity in Côte d'Ivoire – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 4 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 15.0 System average interruption frequency index (SAIFI) 23.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes exceed a certain cap? Communication of tariffs and tariff changes (0-1) 0 Are effective tariffs available online? Yes Link to the website, if available online http://www.anare.ci/i ndex.php?id=15 Are customers notified of a change in tariff ahead of the billing cycle? No Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 20
Doing Business 2019 Côte d'Ivoire Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past • Each procedure starts on a separate day - 10 years. though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes. online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. • Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of duties and taxes). any kind. - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 21
Doing Business 2019 Côte d'Ivoire Registering Property - Côte d'Ivoire Indicator Côte d'Ivoire Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 6 6.2 4.7 1 (4 Economies) Time (days) 30 53.9 20.1 1 (New Zealand) Cost (% of property value) 7.1 7.6 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 10.5 8.8 23.0 None in 2017/18 Figure – Registering Property in Côte d'Ivoire and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 58.03: Côte d'Ivoire (Rank: 112) 54.19: Benin (Rank: 130) 52.62: Regional Average (Sub-Saharan Africa) 51.51: Mali (Rank: 141) 50.47: Burkina Faso (Rank: 145) 28.89: Nigeria (Rank: 184) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Côte d'Ivoire – Procedure, Time and Cost Time (days) Cost (% of property value) 30 6 25 5 Cost (% of property value) 20 4 Time (days) 15 3 10 2 5 1 0 0 1 *2 *3 4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 22
Doing Business 2019 Côte d'Ivoire Figure – Registering Property in Côte d'Ivoire and comparator economies – Measure of Quality 30 25 Index score 20 15 10.5 11.5 10 8.0 8.8 6.5 7.2 5 0 Côte d'Ivoire Benin Burkina Faso Mali Nigeria Sub-Saharan Africa Details – Registering Property in Côte d'Ivoire – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a Location Certificate 7 days XOF 100,000; (+ VAT Agency : A certified land surveyor (18%) - not included The notary must request a "certificat de localisation," which is generated by a in calculation) government certified surveyor. The certificate will denote the information included on the title, land survey data, and a description of the status of the parcel. After 2015 it is not mandatory to obtain this certificate, however in practice Notaries still request it to be certain of the object of the transaction. 2 The notary solicits the real estate rights record before the Services de la 5 days XOF 769,765.8; Conservation Foncière (3,000 XOF + notary Agency : Land Registry (Conservation de la Propriété Foncière et des fees. Notary fees are Hypothèques ) determined on a The notary will usually perform the entire process on behalf of the parties. In this sliding scale as regard, he will firstly check online the property title "livre foncier" to understand follows: which actions are required prior to drafting the sale and purchase deed. The online information is for informative purposes, but it does not have legal validity 3% for the value as it is not signed or certified by the Land Registry. between XOF 0 and XOF 10,000,000 At the same time, the Notary will request a certificate noting the status of rights 1.5% for the value that affect the property object of the transaction which is delivered in paper between XOF format. 10,000,000 and XOF 30,000,000 1% for the value between XOF 30,000,000 and XOF 90,000,000 0.5% for the value above XOF 90,000,000.) 3 The notary obtains a tax clearance 3 days no charge Agency : Tax Authority The notary should obtain a tax clearance on the property stating that all property taxes related to it have been paid. He can execute the contract on behalf of the parties without the clearance, but must obtain it within one month. After the Loi des Finances of 2017 became effective, it is free to obtain any tax related information from the General Directorate of Taxes. 4 Prepare sale deed 2 days Included in Procedure Agency : Notary No. 2 The notary prepares the sale and purchase deed that both parties will sign. Page 23
Doing Business 2019 Côte d'Ivoire 5 Pay all the registration fees 1 day XOF 2,445,182.15; Agency : Land Registry (Conservation de la Propriété Foncière et des (Registration tax of Hypothèques) 4% of the property The notary files the sale and purchase deed to the Land Registry and pays the value (proportional registration fee (4% of the property value, plus 0.4% for the salary of the registration fees) + Registrar and 0.8% for the territorial budget). 3% for Capital Gains Tax (not included in calculation and paid by the Vendor) and transfer fees of 15,000 XOF (new property certificate) + 1.2% (0.8% general service tax 0.4% salary of the "conservateurs") + 3,000 XOF (2,000 FCFA clerk's fee + 1,000 XOF photocopy fee)) 6 Register the transfer at the Land Registry "Administration de la 20 days Already paid in Conservation Fonciere et du Cadastre" procedure 5 Agency : Land Registry (Conservation de la Propriété Foncière et des Hypothèques ) The notary will submit all the necessary documents to proceed with the inscription of the property transfer (mutation). Takes place simultaneously with previous procedure. Page 24
Doing Business 2019 Côte d'Ivoire Details – Registering Property in Côte d'Ivoire – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 3.0 What is the institution in charge of immovable property registration? Direction de la Conservation Foncière et des Hypothèques In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0 paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Direction du cadastre In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Different 1.0 or mapping agency kept in a single database, in different but linked databases or in separate databases but databases? linked Do the immovable property registration agency and cadastral or mapping agency use the No 0.0 same identification number for properties? Transparency of information index (0–6) 2.5 Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0 property registration in the largest business city? pays the official fee Is the list of documents that are required to complete any type of property transaction made Yes, on public 0.5 publicly available–and if so, how? boards Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available–and if boards so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the official fee Is the applicable fee schedule for accessing maps of land plots made publicly available— No 0.0 and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Page 25
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