Ivorian debt: state of supplier mandates at the end of October

Posted on 11.16.2022 at 19:18 by APA News

The Private Sector/State Consultation Committee (CCESP) has launched a national workshop to build the capacity of private sector actors on public spending. Opening the session this Wednesday, at the Maison de l’Entreprise, the employers’ headquarters Ivorians, located in Plateau , the Business Center of Abidjan, the Deputy Director of the Cabinet, Vassogbo Bamba, representing the Minister of Economy and Finance, made the state of the supplier debt.

According to Vassogbo Bamba, as of October 31, 2022, all supplier mandates for 2022 management covered by the public treasury represented a total amount of 713.18 billion CFA francs, including 503.38 billion CFA francs of payments already made, which is a rate by 68.84%.

The average supplier debt settlement period, he will say, is reflected in the Central Administration’s supplier debt payment terms, at the end of October 2022, by an average of 17 days compared to 30 days for mandates of less than 30 million CFA francs with a total of 93.21 billion CFA francs.

In addition, the payment term for trade payables averaged 22 days versus 60 days for mandates ranging from 30 to 100 million CFA francs for a total of 66.60 billion CFA francs; and 28 days on average versus 90 days for a total of 277.64 billion CFA francs of paid mandates.

The executive secretary of the CCESP, Ms. Mariam Fadiga Fofana, explained that it is a national seminar on public spending for the benefit of private sector actors to allow them to “better control the spending loop” in the execution of the state budget.

He noted on the sidelines of the seminar that it is up to the CCESP executive secretariat to address private sector concerns regarding “the payment deadline which is not always in line with what the state is anticipating”. The private sector denounces “very long payment terms, which generate many financial costs” especially in the case of bank loans.

For her part, “public administrations also complain about the non-compliance with the deadlines that must be observed in the documents by private operators”, added Mariam Fadiga, insisting that it is a question of strengthening the capacities of private actors on spending public sector and create synergy between the state and the private sector.

Mr. Paul Koua, head of fiscal policy coordination, representing the Minister of the State Budget and Portfolio, noted the considerable efforts made by the State, recalling that the private sector is the main contributor to the economy with 80 % of government revenue.

The support of the State of Côte d’Ivoire to finance the promotion activities of the private sector, according to Paul Koua, for the year 2022 amounts to 10.23 billion CFA francs of credits included in the budget of the Ministry of Commerce, Industry and Promotion of SMEs.

The ambition of the government of Côte d’Ivoire is to allow private investment to reach 75% of the total investment volume and 30% of GDP in 2030. The private sector now accounts for more than 2/3 of investment and more than 80% of formal jobs in the country.

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