by Mr. Guy M'Bengue, Chief Executive Officer, APEC-CI
and
Mr. Assoumou N'Goran, Manager, Trade Information, APEC-CI
(Not edited by ITC)

Following the devaluation of the CFA Franc in 1994, the competitiveness of the ivorian economy improved significantly between 1994 and 1997. In the same period, the part of exports in GDP increased from 29% to 43%.

However it became apparent that economic reforms were necessary to turn this incidental growth into a sustainable trend.

The reform process initiated then, focused on:

• Liberalisation of Imports and Exports;
• Dismantling of price controls;
• Fiscal reforms to further improve competitiveness ;
• Privatisation;
• Export development.

2. EXPORT DEVELOPMENT STRATEGY

The export development strategy was based on:

• Institutional reform:

• Appointment of a Minister of Foreign Trade;
• Creation of a Trade Promotion Agency (APEX-CI) led by the private sector.

• Capacity building:

• Export and customs procedures streamlining (simplification);
• Measures to improve product quality through support to the national standard organisation;

• Developing high value added products for export;

• Developing intra-regional trade, namely with ECOWAS countries (Economic Community of West African States).

Unfortunately, the institutional reform process, which relied on multilateral financing (World Bank), took much longer than anticipated. Many projects were delayed; among them :

• The Trade Promotion Agency (APEX-CI) created in 1996 to refine and implement the government's strategic export development plan;

• The Abidjan Trade Point, initiated after the 1994 Columbus world wide ministerial Trade Point meeting, as a major component of the government's trade efficiency program.

This delay accounts, at least in part, for the absence of electronic commerce capability in the government's export competitiveness strategy.

3. ROLE OF APEX-CI

APEX-CI, the Trade Promotion Agency in charge of implementing the national export development strategy, became fully operational in march 1999. It is now spearheading efforts to gain market shares for ivorian companies.

As an Export Promotion Agency, jointly created by the Government of Côte d'Ivoire, the World Bank and the ivorian private sector, APEX-CI's objectives are

• To foster a sustainable growth of ivorian exports, through:

- The reduction of the country's dependency on the traditional export products (coffee cocoa, lumber);

- The increase of the volume of high value added products;

- The diversification of the export markets for ivorian products.

• To promote products and services "made in Côte d'Ivoire" on foreign markets.

• To foster dialogue between the private sector and the government in order to improve the export business climate and dismantle barriers to trade.

• To provide information on foreign markets to Ivorian companies.

• To re-inforce the expertise of national consultants that can in turn assist local companies with their export strategies.

To meet these objectives, APEX-CI has developed an export strategy based on the following initiatives:

• Financial assistance to export activities through an Export Development Fund (FADEX);
• Promoting a business climate favorable to exports through an Export Business climate improvement Fund (FAMEX)
• Capacity building through a consultancy data bank (APEX-BASE) ;
• Trade Information Center on foreign markets (Trade Point and WTO / UNCTAD / ITC Reference Center);
• Foreign trade consultative Council;
• Foreign trade Counsellors network;
• Internet access program for SME.

3.2.1 Financial Assistance to export activities

APEX-CI manages the Export Development Fund known as FADEX (Fonds d'Appui au Développement des Exportations) established to enhance the ivorian entreprises export capacity; Any private company or professional association registered in Côte d'Ivoire is eligible to the fund.

The maximum amount granted is 30 millions CFA francs (approximately US$ 45000) for private companies and 50 millions CFA francs (approximately US$ 70 000) for professional associations. 50 to 65% of the total approved expenditures are reimbursed to the beneficiary after completion of the approved project.

Eligible activities include, information gathering and measures to improve competitiveness and to build Export-oriented production capacity, quality improvement, international marketing, management and finance, Export logistics, Research and Development and other export related services.

The beneficiary is required to produce evidence of positive and directly measurable impact of the grant on his export business (such as an increase in market share or turn over, distribution agreements signed with foreign partners etc.)

3.2.2 Promoting a business climate favorable to exports

FAMEX is a fund established to help improve the Export business climate. Mainly dedicated to solving Export related sectorial problems and help dismantle various obstacles and red tape, that hinder exports. Industry sectors or professional organisations identify problem areas and bring them to the attention of APEX-CI, which takes the appropriate measures to address the issue.

3.2.3 Capacity building through a consultancy data bank

APEX-CI makes available to the export business community a databank of national and international consultants, experienced in solving export related problems.

These consultants can be hired by APEX-CI or directly by the eligible enterprise. These services are paid for by APEX-CI and the eligible company through a cost-sharing scheme.

3.2.4 Trade Information Center on foreign markets.

APEX-CI has set up a trade Information Center on foreign markets to meet the information needs of current and prospective exporters. The center also provides guidance on business opportunities and offers information on:

• Importers and potential suppliers ;
• the multilateral trade system (WTO /UNCTAD /ITC);
• customs tariffs, standards.

Access to the trade Information Center is free and only a modest fee is charged for specific information.

This Center is the focal point of APEX-CI's electronic -commerce strategy.

3.2.5 Foreign Trade Counsellors Network:

Foreign Trade counsellors are all top corporate Executives with proven record in International Business Management. They have been individually selected and appointed for a two years renewable term by the Minister of Trade. The Network has 32 members.

3.2.6 The Foreign Trade consultative council:

The Foreign Trade Consultative Council is a new forum where issues on Côte d’Ivoire's foreign trade are permanently discussed.

The council's missions are to:

• Raise awareness in the business community and in social circles on the challenges facing our foreign trade.
• Contribute to the implementation of the ivorian government's strategic export plan with the support of the private sector.
• Assist the Ministry of Trade on issues such as:

-Trade Expansion Strategies

- Promotion of products and services "Made in Côte d’Ivoire"

- Participation of Côte d’Ivoire to foreign Trade shows and exhibitions.

- Development of export culture.

- International Trade Intelligence.

Technical commissions are set up within the Trade Council to deal with specific issues:

• Policies, strategies, capacity building;

• Public and Private sector Assistance scheme;

• Trade shows and exhibitions;

• Information / Communication /statistics.

3.3.1 Internet in Côte d'Ivoire

• International links

The first Internet Service Provider (Africa On Line) arrived on the ivorian scene in 1996.

The only international link then available was the so-called Leland line 128 KB which has recently been upgraded to 512 KBS.

• Internet services

There are now 5 Internet Service Providers and 15 Internet service companies in the whole country.

All ISP's are targeting business rather than individual accounts.

There are altogether close to 8000 Internet subscribers and 180 Web sites.

• Local telephone network

Over the past few years the national telephone network has expanded rapidly and line quality has improved somewhat. The number of telephones in use is still highly insufficient (approximately 150 000 for a population of 1, 5 million.)

The major constraint to the expansion of Internet in Côte d'Ivoire is high cost of equipment and services.

3.3.2 APEX-CI's Electronic-commerce strategy: APEX-WEB

APEX-CI has recommended to the government a joint public / private sector Electronic-commerce working group that will propose a national Electronic – commerce strategic plan and also tackle issues such as:

• Connectivity and telephone network quality;
• Legal framework for Electronic – commerce transactions;
• Online payment and money transfer;
• Internet access for government services;
• Certification and authentication to bridge the credibility gap;
• Delivery logistics for business to consumer transactions;
• Improvement of Internet literacy (special awareness building and education programs.)

However, the present political situation has considerably delayed any action on the subject by the government.

In the mean time APEX-CI has moved ahead with it's own Internet access plan, dubbed APEX-WEB. It is directed towards Internet as a Trade promotion tool.

The major initiatives of this plan are designed to:

• Foster greater use of Internet based tools by small businesses, schools and public administration;
• Encourage the emergence of a competitive, skilled information technology labour force, to attract software industry or develop internet services for export;
• Bridge the credibility gap plaguing small businesses;
• Disseminate timely market information and trade leads to help match local exporters to foreign importers.

3.3.2.1 Introductory Internet course

The Trade Information Centre conducts 3 hour practical courses covering navigation and information gathering on the Internet. Two levels have been identified (beginners and advanced).

Participants are essentially small business owners and students majoring in international business (during the holidays).

It is designed to encourage small enterprises to use Internet as a sales, marketing and communication tool.

3.3.2.2 Electronic- commerce seminars

Nation wide two day Electronic commerce seminars, targeted to exporters, are organised or sponsored by APEX-CI. The last one was jointly organised by APEX-CI with the International Intellectual Property Organisation in June 2000 on the subject: "Electronic – commerce; opportunities and threats for developing countries".

Participants came from the eight member countries of the West African Economic and Monetary Union (UEMOA).

Specific recommendations were made by the participants, for a regional approach to legal issues raised by Electronic commerce.

3.3.2.3 APEX CI's Institutional Web site

APEX-CI's WEB site, is a source of useful and practical data such as:

• Freight rates;
• Shipping schedule in ivorian ports;
• Export and import statistics.

It also provides an online directory highlighting products manufactured by member firms.

APEX-CI provides both the financial assistance and technical assistance.

3.3.2.4 Internet access platform

The Trade Information Center provides a platform with 4 desk top computers, in open access for exporters. This platform is connected to the principal Internet Service Provider of the country by a 64 KB dedicated line.

3.3.2.5 Financial assistance for Web site implementation

A special WEB access program has been set up to encourage companies to integrate Internet based tools and E-commerce in their strategic plan.

Financial assistance is made available under the cost sharing scheme of the Export Development Fund (FADEX).

Under present procedures, up to 65% of the cost of implementing a Web site is reimbursed by APEX-CI to the company.

Furthermore, APEX-CI can recommend experienced Web service providers registered in its consultants' data bank.

3.3.2.6 Electronic – Commerce incubator

Very small companies and artisans, unable to qualify for the cost-sharing scheme, still benefit from the Web access program. Their products are exhibited in the "APEX Gallery" virtual shop (under construction), for a modest monthly fee. The gallery constitutes an incubator for these companies, which, it is hoped within 12 months, will have acquired sufficient expertise to implement and manage their own commercial Web sites.

3.3.2.7 Export listserv

APEX-CI disseminates information useful to the export community through the export Listserv, based on a list compiled through a survey conducted by APEX-CI.

As less than 35% of small businesses in Côte d'Ivoire have an electronic address, APEX-CI makes available to exporters and potential exporters a free E-mail address through which trade leads are selectively distributed.

The electronic version of the APEX-NEWS monthly newsletter is also distributed through this listserv.

3.3.2.8 Export Newsgroup

APEX-CI hosts an Export Newsgroup. Only export related subjects are discussed:

• Administrative procedures;

• Port and shipping information;
• Etc.

3.3.2.9 Certification of online merchants

Small businesses, particularly those from third world countries and more specifically from Africa, suffer from a credibility gap in the eye of western customers.

To bridge the credibility gap and raise confidence in online purchases by European and American buyers, APEX-CI is working with potential online merchants to implement consumer protection procedures. APEX-CI will endorse those merchants who meet specific criteria and are registered with APEX-CI.

APEX-CI will visit factories and warehouses to verify the merchants' ability to deliver the goods they offer on the net, live up to their claims and fulfil all their obligations under the sales contract.