CÔTE D’IVOIRE

The Republic of Côte d'Ivoire is a unitary state with a presidential regime and a multiparty political system. Constitutional Law 2020-348 of 19 March 2020 amending that of 8 November 2016 establishes the current constitution of the Republic of Côte d'Ivoire.

The president of the Republic is elected by direct universal suffrage for five years and is assisted by a vice-president elected at the same time. The president appoints the prime minister and members of the government. Legislative power is exercised by parliament, based on a bicameral system consisting of the National Assembly and the Senate. The National Assembly is composed of 255 members elected for five years by a first-past-the-post system. The last parliamentary elections took place on 6 March 2021. The Senate represents subnational governments and citizens of Côte d'Ivoire living outside the country. It is composed of 99 senators, two-thirds of whom are elected indirectly by the members of the municipal, regional and arrondissement councils and the National Assembly, and the remaining third of whom are appointed by the president of the Republic. Senators are re-elected every five years. The last Senate elections took place on 24 March 2018. Laws relating to subnational government are first brought before the Senate and then voted on. If there is disagreement between the Senate and the Assembly on the texts, the president of the Republic may call a meeting of a joint parliamentary committee to reach a definitive text (Articles 109 and 110 of the Constitution).

The Ivorian decentralisation process took place in several phases. In 1960, the decentralised territorial administrative organisation of the colonial era was restored with its three full-function communes (Abidjan, Bouaké and Grand-Bassam) and fourteen medium-function communes. In 1978, Law 78-07 of 9 January on the establishment of fully functioning communes in Côte d'Ivoire was adopted. Decentralisation effectively began in 1980 with the adoption of Law 80-1180 of 17 October 1980 on municipal organisation, which subjected the communes to a common regime, and Law 80-1182 of 17 October 1980 on the status of the city of Abidjan was adopted. From 2001 onwards, a new organisation came into force with Law 2001-476 of 9 August 2001 on the general organisation of local and regional government: the department and the district were added to the former entities (commune, city and region). In 2011, with the adoption of Ordinance 2011-262 of 28 September 2011 on the orientation of the general organisation of the national administration of the State, the provisions of which were confirmed by Law 2014-451 on the orientation of the general organisation of the local and regional administration, the number of local and regional authorities was reduced once again: two types of local and regional authorities were retained, the region and the commune (Article 170 of the 2016 Ivorian Constitution).

Since then, the general organisation of subnational government has been established by Law 2014-451 of 5 August 2014. This law precisely defines the contours of deconcentration, decentralisation and the particular local entity that constitutes the autonomous district. There is no hierarchical or supervisory relationship between the bodies of the region and those of the communes. The law determines the fundamental principles of the autonomous administration of local and regional authorities, their responsibilities and their revenues. They receive revenues which they may use freely under the conditions laid down by the law (Articles 172 and 173).

The General Directorate of Decentralisation and Local Development (DGDDL or Direction Générale de la Décentralisation et du Développement Local) of the Ministry of the Interior and Security (MIS or Ministère de l'Intérieur et de la Sécurité) is responsible for the implementation and monitoring of the national decentralisation policy. As such, it is in charge of organising the operation of decentralised authorities and exercising the State's powers of control, monitoring and evaluating the transfer of powers from the State to decentralised authorities, organising international co-operation, providing support and advice in the fields of local development, decentralised co-operation and economic and financial matters, and strengthening the capacities of local and regional authorities.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2020)
Municipalities (communes)		Regions (régions)
Average municipal size: 67 810 inhabitants
201		31	232

OVERALL DESCRIPTION: The general organisation of local and regional authorities is set out in Law 2012-1128 of 13 December 2012. Law 2014-451 of 5 August 2014 on the General Organisation of the Local and Regional Government distinguishes between the deconcentrated administration, the decentralised administration and the particular subnational entity that constitutes the autonomous district (Article 1).

The deconcentrated administration (Articles 2 to 31) is ensured through hierarchical administrative jurisdictions: regions, departments, sub-prefectures and villages. They are created, modified or abolished to bring the government closer to the citizens, to structure it for uniformity of division and to correct regional disparities.

Decentralised government (Articles 32 to 37) is carried out through the local and regional authorities (regions and communes). These have the following duties, within the limits of their powers: organising community life in the local or regional authority, involving the population in the management of local affairs, promoting and carrying out local development, modernising the rural areas, improving the living environment and managing the land and the environment. They are established as regions or communes by decree of the Council of Ministers, which indicates the name and determines the boundaries. They have legal personality and financial autonomy. The last combined regional and municipal elections took place in October 2018.

The autonomous district (Articles 47 and 48) is a particular type of subnational authority governed by the rules of deconcentration and decentralisation. It groups together either a set of regions or a set of departments, communes and sub-prefectures. The way in which the autonomous district is created, its attributions, organisation and functioning are set by Law 2014-452 of 5 August 2014. The autonomous district is headed by a governor appointed by decree of the president of the Republic. This governor holds the rank of minister. On 18 June 2021, 12 new autonomous districts were established by decree, in addition to Yamoussoukro and Abidjan, bringing the total number to 14.

REGIONAL LEVEL: To date, the country has 31 regions created by Decree 2013-294 of 2 May 2013. They are governed by elected regional councils, composed of 25 to 60 members depending on the number of inhabitants in the region. The head of the winning party list in the elections is by right president of the regional council. The regions are united in the Association of Regions and Districts of Côte d’Ivoire (ARDCI or Associations des Régions et Districts de Côte d’Ivoire). Regions are made up of at least two departments. The creation and organisation of regions must not undermine the unity of the nation, the secularity of the State and the integrity of the national territory. Any merger or division of regions shall automatically result in the dissolution of the regional councils concerned.

MUNICIPAL LEVEL: Communes are groupings of neighbourhoods and/or villages. The country has gone from 197 communes in 2013 to 201 communes since May 2018 with the establishment of the departmental capitals of Attiegouakro and Gbélégban, and the sub-prefectural capitals of Assinie Mafia and N'Douci (South). Communes are governed by a municipal council of 25 to 50 members, depending on the number of inhabitants of the commune, headed by a mayor. The mayor and his deputies are elected by the municipal council. The Ivorian communes are grouped together in an umbrella organisation: the Union of Cities and Communes of Côte d'Ivoire (UVICOCI or Union des Villes et Communes de Côte d'Ivoire). Regional and municipal councillors are elected for five years by direct universal suffrage according to a system combining proportional representation with a majority vote on complete lists without preferential voting or panachage. The party list with the most votes cast shall obtain half of the seats. The other half of the seats is distributed among all the parties, including the majority party, on a proportional basis with the largest remainders.

HORIZONTAL COOPERATION: According to Law 2014-451, local and regional authorities may enter into decentralised co-operation agreements with other local and regional authorities, public or private, foreign or international organisations, within a general framework defined by the State without contravening the principles of the unity and secularity of the State (Article 45). This co-operation may take various forms: i) the creation of a grouping or several local authorities, or any other appropriate structure for the promotion and co-ordination of development actions in specific areas; and ii) the support of a less affluent local authority by a more affluent one, to carry out a specific development project, after approval by the deliberative body of the local authority providing the support (Article 46). On these foundations, some inter-communal bodies have been set up within the framework of specific projects or programmes such as the Services Platform (PFS or Plate-Forme de Services) in 10 inter-communal bodies bringing together 10 departments and 36 communes since 2011, or the Youth Employment and Skills Development Project (PEJEDEC or Projet Emploi Jeunes et Développement de Compétences), co-financed by the World Bank, which has benefited 12 communes, nine regions and the Autonomous District of Yamoussoukro since 2017.

Law 2003-208 of 7 July 2003 on the transfer and distribution of powers from the State to the local and regional authorities, specifies 16 duties for which the State has made them responsible: land-use planning; development planning; urban planning and housing; communications and various networks; transport; health, public hygiene and quality; environmental protection and management of natural resources; security and civil protection; education, scientific research and vocational and technical training; social, cultural and human promotion; sport and leisure; promotion of economic development and employment; promotion of tourism; communication; hydraulics, sanitation and electrification; promotion of the family, youth, women, children, the disabled and the elderly.

This law reinforces the classic duties of the communes (civil status, tax collection, public order, etc.). A process to revise this law has begun, but has not yet resulted in new provisions.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Municipal level
1. General public services (administration)	General Government Services and General Planning and Statistics Services (shared)	General Government Services and General Planning and Statistics Services (shared)
2. Public order and safety	Security and civil protection (shared)	Security and civil protection (shared)
3. Economic affairs/transport	Agriculture, Road transport, Fishing, Manufacturing, Distribution, warehouses and shops, Research and development in agriculture, forestry, fishing and hunting, Tourism, Hotels and restaurants (shared)	Agriculture, Road transport, Fishing, Manufacturing, Distribution, warehouses and shops, Research and development in agriculture, forestry, fishing and hunting, Tourism, Hotels and restaurants (shared)
4. Environmental protection	Research and development in environmental protection, waste and wastewater management (shared)	Waste and wastewater management, Preservation of biological diversity and nature protection (shared)
5. Housing and community amenities	Housing, Community facilities, Water supply, Street lighting (shared)	Housing, Community facilities, Water supply, Street lighting (shared)
6. Health	Public hygiene and safety (shared)	Public hygiene and safety (shared)
7. Culture and leisure	Sport, recreation, culture and religion (shared)	Sport, recreation, culture and religion (shared)
8. Education	Education (preliminary, primary, secondary), Scientific Research and Vocational and Technical Training (shared)	Education (preliminary, primary, secondary), Scientific Research and Vocational and Technical Training (shared)
9. Social welfare	Social action, combating unemployment, protection of families, children, women, the disabled, the elderly and young people, (shared)	Social action, combating unemployment, protection of families, children, women, the disabled, the elderly and young people, (shared)

Scope of fiscal data: Regions and communes

State Budget Information System (SIB) and Integrated State Budget Operations System (SIGOBE)

Availability of fiscal data: High

Quality/reliability of fiscal data: High

GENERAL INTRODUCTION: Decentralised authorities are financed by external aid (donations or loans), transfers and subsidies and own-source revenues. Law 2020-885 of 21 October 2020 on the Financial System of Autonomous Local and Regional Authorities and Districts establishes the fundamental rules and principles governing their financial and accounting framework. Their supervisory authority (DGDDL) sits on the National Committee for Monitoring the Implementation of the Public Finance Reform Master Plan (CONAFIP or Comité national de suivi de la mise en œuvre du schéma directeur de la réforme des finances publiques).

Reliable financial data are provided by various tools: the Information and Management System for Local Authorities (SIGCOT or Système d'Information et de Gestion des Collectivités territoriales); the Integrated Management System for Decentralised Authorities (SIGESCOD or Système Intégré de Gestion des Collectivités Décentralisées); the Consolidated Treasury Account (CUT or Compte Unique du Trésor) and its management application (SyGACUT or Système Intégré de Gestion du Collectivités Décentralisées); the “Net Collect Services” electronic debt collection system; the Integrated Management System for State Budgetary Transactions (SIGOBE or Système Intégré de Gestion des Opérations Budgétaires de l'Etat); and the previous systems (SIB and SIGFiP).

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% public spending	% subnational government
Total spending	33	0.6%	2.4%	100.0%
Current spending	23	0.5%	2.3%	70.3%
Staff spending	7	0.1%	2.4%	21.5%
Intermediate consumption	13	0.2%	5.6%	40.8%
Social spending	0.04	0%	0.2%	0.1%
Subsidies and current transfers	-	-	-	-
Financial charges (including interest)	-	-	-	-
Other current spending	3	0.1%	2.2%	8%
Capital spending	10	0.2%	2.4%	29.8%
Capital transfers	-	-	-	-
Direct investment (or GFCF)	10	0.2%	2.44%	29.8%

EXPENDITURE: In 2020, local and regional authority revenues amounted to USD 33 PPP per capita. They represent 0.6% of GDP and 2.4% of total public revenue. These revenues are dominated by current spending (70.3% at USD 23 PPP per capita) fuelled by intermediate consumption spending (40.8% at USD 14 PPP per capita). At USD 7 PPP per capita, staff expenses account for 21.5% of their overall spending. Capital spending accounts for just under a third of overall subnational government spending, amounting to USD 10 PPP per capita.

DIRECT INVESTMENT: Direct capital investment is the only component of capital spending. It represents 29.8% of subnational government spending with USD PPP 10 per capita. Compared to previous years, direct capital investments have increased due to Côte d'Ivoire changing over to a programme-base budget system and the transfer of several projects previously managed by other ministries to the DGDDL for the benefit of decentralised authorities. These capital investments are made according to the 16 areas of duty identified by Law 2003-208 of 7 July 2003 on the Transfer and Distribution of Powers from the State to the Local and Regional Authorities, for which the State has made them responsible.

Subnational government revenue by category
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	39	0.7%	3.4%	100.0%
Tax revenue	15	0.3%	2.2%	38.4%
Grants and subsidies	8	0.2%	-	21.6%
Tariffs and fees	-	-	-	-
Income from assets	-	-	-	-
Other revenue	16	0.3%	-	40.0%

OVERALL DESCRIPTION: In 2020, local and regional authority revenues amounted to USD 39 PPP per capita. They are made up of tax revenues (38.4% at USD 15 PPP per capita), grants and subsidies (21.8% at USD 8 PPP per capita) and other revenues (40% at USD 16 PPP per capita). Tax revenues represent a very small share of GDP (0.3%).

The tax system of decentralised authorities includes: State taxes, local taxes levied by assessments and local taxes collected on business revenues.

In accordance with Law 2003-489 of 26 December 2003 on the financial, fiscal and property regime for local and regional authorities, the State contributes to the budgets of local and regional authorities by granting them a share of the proceeds of certain taxes (earmarked revenue) and annual budget allocations for their operation and investments. This State support is a complement to their own-source revenues. All these revenues feed into the budget drawn up by each of these entities and approved by the Ministry of the Interior and Security before it is implemented.

TAX REVENUE: Tax revenues include taxes shared between the State and local and regional authorities in accordance with the law. They include the business tax (patente), the property tax, the composite tax and the vignette. Before 2014, the law defined a distribution key on the basis of which each local and regional authority received its share directly. Since 2014, the shares of all the local and regional authorities have been merged, as part of the single till system, and each LRA's share is paid back to it according to the procedures defined by inter-ministerial order of the same year. Since 2016, this share is included in the Finance Act as earmarked revenue.

According to Articles 149 to 166 of the General Tax Code (CGI or Code Général des Impôts), the property tax is broken down as follows:

GRANTS AND SUBSIDIES: In 2020, grants and subsidies from the General State Budget accounted for 21.6% of the revenue of the decentralised authorities for an amount of USD 8 PPP per capita.Almost one-third of these grants and subsidies are current transfers (transfers for the purchase of goods and services) and just over two-thirds are capital transfers. These revenues are allocated to all local and regional authorities with the exception of the ten communes of the District of Abidjan. This exclusion is linked to their capacity to mobilise own-source revenues and the size of the share of shared taxes that they receive.

OTHER REVENUE: Other revenues are made up of own-source revenues collected by local and regional authorities (excluding tax revenues) and a number of other products including: i) withdrawals from investment funds, ii) earmarked funds for projects underway, iii) withdrawals from ordinary reserve funds, iv) external aid, etc. In 2020, the shareof own-source revenues is 9.4% for an amount of USD 3.7 PPP per capita. In order to increase this share, an electronic collection system “Net Collect Services” was instituted by Decree 2019-918 of 6 November 2019 establishing the methods for collecting the own-source revenues of decentralised authorities. It is gradually being rolled out. In 2020, it covered 56 of the country’s 232 communes and regions.

Subnational government fiscal rules and debt
2020	Dollars PPP / inhabitant	% GDP	% general government debt	% SNG debt	% SNG financial debt
Total outstanding debt (consolidated)	10.7	0.2%	3.5%	100.0%	-
Financial debt	10.7	0.2%	3.6%	100.0%	100.0%
Currency and deposits	-	-	-	-	-
Bonds / debt securities	-	-	-	-	-
Loans	10.7	-	-	100.0%	100.0%
Insurance, pensions	-	-	-	-	-
Other accounts payable	-	-	-	-	-

FISCAL RULES: The revenues and spending of decentralised authorities are managed in accordance with the rules set out in Organic Law 2014-337 of 5 June 2014 on the Code of Transparency in the Management of Public Finances. According to Law 2020-885 of 21 October 2020 on the financial regime of the local and regional authorities and autonomous districts, the financial and accounting operations arising from the implementation of their budget are the responsibility of the authorising officers, financial controllers and public accountants in the same way as other public administrations.

The budgetary principles applicable to these entities are: annuality, unity, universality, anteriority, sincerity, balance, legality of taxation and speciality of credit. The principles of accounting law applicable to them include: the separation of the functions of authorising officer and public accountant, the single till principle, the single treasury account principle, the accrual principle, the intangibility of the opening balance sheet, the principle of consistency of accounting methods, the principle of transparency, the principle of prudence, the principle of the independence of financial years and the principle of historical costs.

The Minister of Economy and Finance appoints public accountants from the Treasury administration to each local and regional authority. At the local level, these accountants are responsible for the collection of revenues and the spending of these authorities (regional paymaster, autonomous district paymaster and municipal treasurer for the commune). At central level, transfer operations are carried out by the Delegated Authorising Officer for Spending (the DGDDL) and then submitted for approval to the Financial Controller at the supervising ministry. Once approved, these operations are forwarded to the Paymaster General of the Parapublic Sector (PGSP or Payeur Général du Secteur Parapublic), who then accepts and pays them. Upon receipt by the beneficiaries, these funds are subject to the rules defined at the local level.

DEBT: Decentralised authorities may resort to debt (assistance funds, loans, donations and bequests, etc.) within the limits and conditions set by decree adopted by the Council of Ministers, without prejudice to the application of the provisions of the law which organises the authorities involved. However, in order to preserve debt sustainability and the sustainability of public finances, the central government implements a national debt policy, which limits the ability of local and regional authorities to mobilise these funds. In 2020, the amount of debt incurred by the decentralised authorities (regions and communes) amounted to USD 10.7 PPP per capita, corresponding to a little less than 4% of total public debt, with 37% of this debt being incurred by the regions and 64% by communes.

TERRITORIAL MANAGEMENT OF THE CRISIS: As soon as the first cases of COVID-19 were confirmed, the Ivorian government set up a Coronavirus Disease Watch Committee (COVID-19). The Committee's recommendations were acted upon through a series of measures taken nationally, including the distribution of hospital and intensive care beds and health kits in the regions.

At the local level, as a rule, local and regional authorities established local (communal) response committees, most often by bylaw. The main functions of these committees were to co-ordinate and monitor the implementation of central government measures, mobilise the private sector to provide protective kits and distribute them in collaboration with the Neighbourhood Management Committees (NMCs or Comités de Gestion des Quartiers), and raise awareness of immunisation since this option became available.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: In addition to the government measures, the LRAs have developed different types of measures, including: regulating the functioning of markets and voting special budgets to carry out their daily disinfection; distributing protective kits in public spaces and communal transport; providing tailors with fabrics to make and share free washable mufflers; installing hand-washing kits in large gathering places, etc. They also cancelled many gatherings or other ceremonies open to the general public at peak times. Finally, they have given taxpayers greater flexibility in the collection of local taxes and introduced staggered payment of certain taxes.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: In 2020, the Ivorian economy suffered the negative consequences of the pandemic. This has resulted in a reduction in the overall State revenue and has led to a decrease of an estimated 20% in transfers and subsidies to the decentralised authorities.

Furthermore, the containment measures taken from mid-March 2020 onwards have had a negative impact on the own-source revenues collected by local and regional authorities. The slowdown in economic activity, as evidenced by the (permanent or temporary) closure of many businesses subject to local taxation, has led to a reduction in the collection of local taxes, resulting in a decrease of an estimated 30% in own-source revenues.

ECONOMIC AND SOCIAL RECOVERY PLANS: To limit the negative impact of the pandemic, the Government has implemented a Health Response Plan (PRS or Plan de Riposte Sanitaire) and an Economic, Social and Humanitarian Support Plan (PSESH or Plan de Soutien Economique, Social et Humanitaire). These two plans include social measures and provisions to support the economy by allowing companies weakened by the health crisis to benefit from tax reductions and moratoria on the payment of tax and social security contributions.

Four funds to support the socio-economic structure were set up in 2020, for a total amount of CFAF 158 billion (~USD 645 million PPP): i) the Large Enterprise Support Fund (FSGE or Fonds de Soutien aux Grandes Entreprises), ii) the SME Support Fund (FSPME or Fonds de Soutien aux PME), iii) the Informal Sector Support Fund (FASI or Fonds d'Appui au Secteur Informel), and iv) the Humanitarian Emergency Solidarity and Support Fund (FSSUH or Fonds de Solidarité et de Soutien d'Urgence Humanitaire). An Agricultural Emergency Programme (PURGA or Programme d'Urgence Agricole) of CFAF 95 billion (~USD 388 million PPP) has also been established to support the agricultural sectors affected by the pandemic.