STAR Program

Cote d'Ivoire is among the world's largest producers and exporters of coffee, cocoa beans, and palm oil. Consequently, the economy is highly sensitive to weather conditions and to fluctuations in international prices for these products. Despite government attempts to diversify the economy, it is still heavily dependent on agriculture and related activities, engaging roughly 68% of the population. Growth was negative in 2000-03 because of the difficulty of meeting the conditions of international donors, continued low prices of key exports, foreign divestment and civil war. Political turmoil has continued to damage the economy since 2004, with a rising risk premium associated with doing business in the country, foreign investment shriveling, transportation costs increasing, French businesses fleeing, and criminal elements that traffic in weapons and diamonds gaining ground. The government will continue to survive financially off of the sale of cocoa, which represents 90% of foreign exchange earnings, but the government will probably lose between 10% and 20% of its cocoa harvest to northern rebels who smuggle the cocoa they control to neighboring countries where cocoa prices are higher. The government remains hopeful that ongoing exploration of Cote d'Ivoire's offshore oil reserves will result in significant production that could boost daily crude output from roughly 33,000 barrels per day (b/d) to more than 200,000 b/d by the end of the decade. (Source:Central Intelligence Agency Internet resource.)