The country holds the third-largest electricity generation system in Africa and has rapidly become one of the leading electricity exporters in West Africa. The country constitutes 94 percent grid connectivity, allowing it to fully meet domestic demand and export generation surplus to the sub-region. Despite Côte d’Ivoire undergoing a post-electoral crisis in 2011, the country was able to maintain energy sector success, sustaining economic recovery, and alleviating risk through private sector involvement and industry focused policy. Accordingly, the energy sector’s viability was maintained. A $116 million guarantee by the World Bank’s Multilateral Investment Agency helped insure investors against political risk. Success of Côte d’Ivoire’s energy industry can be accredited to the significant levels of private sector participation, driven by the privatization of the electricity sector, as well as the implementation of regulations that aim to further expand the market and establish market competition.
Côte d’Ivoire’s national utility has been managed by a private operator. According to the World Bank Group, private operators in Côte d’Ivoire are currently responsible for 70 percent of energy production and 100 percent of energy distribution. The country’s decision to privatize part of the electricity sector resulted in significant investment which drove production and distribution on a regional basis. Accordingly, the success of Côte d’Ivoire’s energy sector, and its ability to fulfil domestic and regional demand, is largely due to the reliance on Independent Power Producers (IPP). In its 2030 Roadmap, the International Finance Corporation notes that through the utilization of private sector participation, Côte d’Ivoire has made substantial progress in improving the existing transmission and distribution network and restoring the energy sector’s financial viability. The new Investment Code has been successful in attracting further investor interest in Côte d’Ivoire, ensuring increased energy security, and granting investors greater confidence in the sector. The country’s regulatory framework, as well as private sector participation, have established it as a regional leader in power.