IX. BUSINESS GUIDELINES: TRAVEL AND INFRASTRUCTURE 1. Business Etiquette French is the official language of C te d'Ivoire and is widely used in business and commerce. It is not common or easy to find English speakers locally. Business correspondence, catalogs and advertising materials prepared in French are essential and readily understood by most potential buyers. Business cards or "cartes de visite" are widely used. The range from the simple: black and white, standard 2" x 3.5" cards, to colorful: oversized, multi-colored cards with fancy logos. Academic titles and degrees are frequently used by members of the expatriate community or those who have received their schooling abroad. U.S. business people ordinarily use their firm's name and their title translated into French. As a rule, business customs in Cote d' Ivoire are similar to, but perhaps more formal than, those in the United States. Ivorians in large commercial enterprises tend to follow a western-style business dress code comparable to those in any large U.S. city. Tropical weight suits and clothing are appropriate throughout the year and a raincoat and an umbrella are essential during the June to August rainy season. Ivorian values are more traditional than those of Americans. This tendency extends to business dealings as well. People are extremely polite; it is customary to greet everyone you meet. Even a long term partner or business contact is usually greeted with an exchange of pleasantries, followed by a handshake and inquiries about one's health, family and relatives. While coming to the point directly is admired in American culture, Ivorians, tend to be more laid back and patient and in fact may find the aggressive "American style" disturbing. Unaccustomed to conducting business over the telephone or via the fax machine, Ivorians prefer regular, face-to-face contact. In fact, personal visits are warmly welcomed. While visits may not be the most efficient or inexpensive method, they are generally regarded as the most effective method of leveraging new trade initiatives. For Ivorians, trust in a business relationship is paramount and cannot be achieved sight unseen. The cornerstone of a successful business relationship is to adapt to a pace of business and life that is more moderate than in the U.S. 2. Entry Requirements: Health, Visas, Work Permits Health A valid U.S. passport and international health certificate showing current yellow fever and cholera immunizations are required for entry into C te d'Ivoire. Otherwise, the traveler risks being subjected to inoculation at the point of entry which is highly inadvisable. Inoculation against typhoid, tetanus, diphtheria, typhus is also recommended. Malaria prophylaxis is strongly advised. The traveler is also advised to keep his/her passport on his/her person at all times. Failure to do so may result in detention at a local police station. Entry Visas American citizens do not need a visa to enter or depart C te d'Ivoire if their visit is for less than ninety days. All visitors should ensure their passport is stamped by Ivorian officials at port of entry. A long term visa (Visa de Long Sejour) is required for business people, tourists and diplomats if the visit will exceed ninety days. Visas are issued by the Embassy of C te d'Ivoire, 2424 Massachusetts Ave. N.W., Washington, D.C. 20008 tel: 202-797-0300, fax: 202-387-6381 (and by the French Embassy in Washington on an emergency basis.) Airport visas are not available. Visas may be for either single or multiple entries and must be accompanied by a letter of recommendation from the company represented by the traveler. If the visa expires while in C te d'Ivoire, it is necessary to apply for renewal at the Surete Nationale. Work and Residency Permits Requirements for persons wishing to seek long-term employment in C te d'Ivoire are stringent as the country is emphasizing "Ivorianization" of its work force. In the case of skilled employment, permission is granted only if personnel with comparable skill are not locally available. A Security Bond is required for each alien so employed. American citizens who expect to work and reside in C te d'Ivoire for an extended period of time, must apply for a residency permit (Certificat de Residence) and a work permit (Carte de Sejour) at the Surete Nationale. The following are the basic documents required in support of residence and work permit applications: a. Valid passport b. Completed application form c. Photos (3) and fingerprints (taken at the Surete Nationale) d. Statement by the applicant regarding his/her activities in C te d'Ivoire e. A fee of approximately $85. Your receipt is a permanent record. You will need to show it until the Carte de Sejour is delivered. It is also required for the application for an exit visa. It is also a good idea to register with the U.S. Embassy if the visit will exceed ninety days or if the visitor plans to work in the C te d'Ivoire. Departure/Exit Visas Departure or exit visas are now required of all visitors who have stayed in C te d'Ivoire longer than ninety days. When applying for this type of visa, you will need a photocopy of your Certificate de Residence and its fee receipt. The charge for an exit visa is approximately $35. Visitors who depart C te d'Ivoire prior to ninety days (verified by the entry stamp in the passport) do not need an exit visa. 3. Other Entrance Requirements - Personal/Professional Goods Free entry is permitted of necessary wearing apparel and personal effects that are proved to have been in personal or household used by the traveler and are not for sale, and of instruments and tools for professional use. All other goods including tobacco and alcoholic beverages, whether imported for personal use or sale, including goods intended for residents of the C te d'Ivoire are subject to duty. Travelers deciding to import any vehicle (including trailers or cycles) or other goods intended for their use, convenience or comfort, but not for consumption, must deposit at the time and place of importation a sum equal to the duty that would be imposed. Simultaneously, a claim for temporary exemption should be presented. The vehicle or goods must then be exported at the end of the stipulated period. These conditions also apply to articles imported for exhibition or demonstration and subsequent reexport. If the prescribed conditions are not met, the visitor will be liable for the full duty of the vehicle or goods imported. A guarantee may be made by an authorized organization, however, in which case no deposit is required. The organization thereby assumes the liability for the duty if the vehicle or goods are not reexported within the prescribed period. 4. Public Holidays January 1 (New Year's Day) March (End of Ramadan) April (Easter Monday) May 1 (Labor Day) May (Ascension Day) May (Tabaski) May (Pentecost Monday) August (Assumption Day) August (Prophet Mohammed 's Birthday) October (Houphouet Boigny's Birthday) November 1 (All Saint's Day) November 15 (National Peace Day) December 7 (Independence Day) December 25 (Christmas Day) 5. Business Infrastructure C te d'Ivoire has an outstanding infrastructure by developing country standards and arguably the best in sub-Saharan West Africa: things work most of the time. This includes an excellent system of paved roads, very good telecommunications, two modern seaports, two airports, rail links, modern real- estate developments for commercial, industrial and retail use, modern supermarkets, modern hotels, a number of recognized international banks and a small, national stock exchange. Currency Exchange The CFA franc, the official currency of C te d'Ivoire, is the currency of the Communaut Financi re Africaine, a financial grouping of Francophone African countries. Coins of 5, 10, 25, 50, 100 and 250 CFA and bills of 500, 1,000, 2,500, 5,000 and 10,000 CFA are in circulation. Currently the rate is approximately 560 CFA to USD 1 although any exchange to CFA from dollars will be at the daily prevailing rate. You may exchange funds at local banks, hotels and at the airport. Expect to receive lower than the daily published rates. French francs can be exchanged at the fixed rate of 1 French franc equals 100 CFA. There are no limitations on the importation of dollars and travelers checks as long as they are declared upon entry. Permission from an authorized Ivorian bank is required to export dollars. The importation and exportation of Ivorian currency (the CFA) is strictly prohibited. Labor Costs and Legislation The guaranteed minimum monthly wage (SMIG) in C te d'Ivoire is USD 58. The most recent revision of the wage scale occurred in April, 1994 after the devaluation of the CFA franc. In addition to the basic salary, employers pay social insurance premiums of 9.9% of the base salary and employees contribute 1.6% of salary towards retirement. Numerous mandatory allowances are also paid and include: meal, transportation, housing, and seniority allowances. Health insurance is also required. Employees receive 2.5 days of paid vacation for each month of work. Workers in any company with 10 or more employees have the right to union representation. Beyond the SMIG, there is a scale of monthly base salary for certain occupational categories. Below is a listing of these categories and the approximate monthly salaries including allowances: Unskilled worker: USD 58 Semi-skilled worker: USD 105 Skilled worker: USD 122-140 Bi-lingual Skilled Office Worker: USD 1500 Typist: USD 90-108 Bi-lingual Receptionist: USD 660 Secretary: USD 128 Bi-lingual Accountant/MBA: USD 3000 Overland Transport In 1993, C te d'Ivoire had over 31,000 miles of roads of which 3,750 miles were primary roads and 4,375 miles were paved secondary roads. All major cities can be accessed by paved roads in an ordinary passenger car. Gasoline stations are readily available. Fuel prices are subject to government control and range from 66 cents per liter for regular gasoline to 48 cents per liter for diesel fuel. There is an external rail line that runs to Ouagadougou in Burkina Faso, approximately 700 miles from Abidjan. In general, barring the red tape, large shipments can be accommodated within and external to C te d'Ivoire. Air and Maritime Transport The Port Bouet airport located in Abidjan is the main airport of C te d'Ivoire. In 1993, it handled over 375,000 passengers and over 11,000 tons of freight. About 19 international airlines serve Abidjan. There are twenty-five domestic and regional airports serviced by Air Ivoire, the national airline. The other international airport is located at Yamoussoukro. The C te d'Ivoire has two major ports at Abidjan and San Pedro. Total freight traffic in 1992 for both ports exceeded 11 million tons of which 54% was petroleum products (Abidjan) while San Pedro is used mostly for timber. While the Port of Abidjan is one of the most modern in West Africa, unfortunately, it is not one of the most productive. The main problem is paperwork related delays caused by the monopolistic customs and freight handling system. Use of a freight forwarder (transitaire) is mandatory. There are two national shipping companies Sitram and Sivomar. Sivomar has ventures with France's Delmas line, with Italy's Grimaldi line, and recently with a South African shipping line. Sivomar serves West and Southern African and Mediterranean ports. Communications In 1994, there are over 95,000 telephone subscribers in C te d'Ivoire of which 76% were in the Abidjan region. CI-Telcom, the government controlled telecommunications company, estimates that the number of subscribers will exceed 135,000 by year-end 1995. Other services include mobile radio telephone, telex, telegraph and facsimile services, and an X.25 based packet switched network for large data communications applications and the MINITEL directory. The average wait for a telephone line to be installed is 2 to 3 months. There are over ten regular daily and weekly news publications circulating in C te d'Ivoire. The most widely read daily paper is Fraternity Matin which is controlled by the government. Next in line is La Voie, whose editorial line supports the political views of the principal opposition party, the FPI. Ivorians own approximately 3 million television sets and 7 million radios and are accustomed to consumer oriented commercials and advertising. Electricity In May, 1994, the Ivorian government announced new rates for electricity, but has not yet published a schedule. The increase primarily affects businesses and middle class households and above and will average approximately 19.5%. All subscribers choose a service capacity level and pay a security deposit plus an upgrade charge (for a higher level of capacity) upon initiation of service. This amount has been approximately USD 900 for U.S. Embassy houses which are invariably upgraded to an average of 39.6 KW rating of installed capacity. The deposit is partly refunded upon cancellation of service. Customers receive a bill every two months. Rates consist of a fixed monthly fee, usage fees based on a variable rate per kilowatt hour, community tax (around 1% of the total consumed), a contribution for rural electrification (around 5% of the total consumed) and a government "stamp" tax (around 77 cents). The fixed monthly fee is approximately USD 4.30 per KW of the installed capacity and the variable rates per kilowatt hour are 10.3 cents for the first 8,297 hours and 8.2 cents for the balance. The average Embassy house electrical bill exceeds USD 1,100 every two months. Peak hours: 19:30 until 23:30, Busy hours are: 06:30 to 18:00, Off Peak hours are: 24:00 to 06:30. Business users (factories) pay a fixed charge for an industrial hookup (USD 2.60 per KW of installed capacity), a fee for a transformer (varies), plus 1 month's billing as a refundable deposit. Medium tension rates vary from 4.8 cents to 10 cents (off-peak versus peak hours) and high tension users pay between 1.9 and 3.0 cents per KWH plus USD 7 per month per KW of installed capacity. Water In May, 1994, the Ivorian government announced new rates for water but has not yet published a schedule. The increase primarily affects businesses and middle class households and above and will average approximately 15%. All customers are billed on a quarterly basis. A deposit of approximately USD 53 is required to initiate service. The current rates are 0 to 30 cubic meters at 28 cents, 31 to 60 cubic meters at 46 cents and over 60 cubic meters at 54 cents. Taxes Corporate Taxes: The following taxes are applicable to all legally registered corporations: Tax on corporate profits: 35%; National Contribution Tax: 1%; Personal Property Tax: 6% of the income of subsidiaries of foreign corporations and 12% of the income of Ivorian firms; Payroll Taxes: 2.5% for local workers and 16% for foreign workers; Workers Compensation: 5% for family allowances, 2-5% toward industrial injury costs, and 1.8% pension contribution Personal Income Taxes: Called employee taxes, they are subject to numerous adjustments depending on the number of dependents an individual is responsible for supporting. Taxes come in the form of payroll, unemployment, income, and pension contributions (always 1.2% of personal income). Other taxation: A value-added tax (VAT) of 16.67% is levied on consumers for the purchase of domestic or imported goods. A filing fee is assessed on documents and legal transactions. Additionally, real estate taxes may be levied depending on the nature of the building or property. Rents: Office and Residential With the exception of the industrial zone of Vridi, which is controlled by the Port of Abidjan, the Ivorian government does not set any minimum rates. Rates depend upon the location, use of the property and the length of the tenancy. Current average monthly rates are: Industrial zone of Vridi: USD 1.73 per square meter Office lease-downtown 3 or more years, includes parking: USD 5.26 per square meter plus 15% per year maintenance Residential zones: USD 13.31 per square foot There have been a few long term leases (99 years) negotiated by members of the oil industry. Housing/Business Services/Schools In Abidjan, residential housing is very good and there is a varied selection of apartments, duplexes and single family homes available. Abidjan also offers a wide range of professional business services including but not limited to: accountants, tax advisors, appraisers, architects, lawyers, engineers, computer consultants, real estate managers, and construction contractors. There is an excellent American- cirriculum International school and several excellent French schools. Multinationals prefer to locate their regional headquarters in Abidjan because they are assured relatively trouble free communications and a higher standard of living compared to other West African countries. Security Crime is a major problem in Abidjan as in New York and other major metropolitan areas. Crimes against foreigners have ranged from routine street crime to violent crime resulting in death. - Stay in well-lit areas as much as possible. At all times walk confidently and at a steady pace on the side of the street facing traffic. Walk close to the curb. Avoid crowds, mass transit, doorways, bushes and alleys and any areas with a few people. - If you are going out at night, take a taxi. Especially avoid walking across the main bridges: the Charles de Gaulle and the Houphouet-Boigny Bridges---they are not safe. - Be discreet with your transaction especially if you are on the street in full public view. The normal spending money of Western visitors is extravagant in comparison to that of the average Ivorian. - Register with the U.S. Embassy if your visit will exceed ninety days. Health Precautions Business visitors to C te d'Ivoire find the climate hot and humid. It is advisable to SLOW DOWN - you'll last longer! Increase your non-alcoholic liquid intake - water and juices. Add extra salt to your food to replace what your body loses in perspiration. Keep your diet light - the more you eat, the more heat you generate in digesting it. The looser and lighter your clothing, the better. Avoid excessive exposure to the sun unless you are accustomed to it. Malaria prophylaxes are strongly recommended while in C te d'Ivoire. Mefloquine or Lariam is preferable. Treatment should be started two weeks before arrival and should be continued for six weeks after departure from the country. Water and ice at the two major hotels are considered safe for consumption since these hotels have their own purification plants. Water and ice served in other establishments should be avoided. Drink only bottled water which is available in most restaurants. Beer and soft drinks are safe to consume as long as they are not served over ice. Avoid eating raw fruits (unless peeled), salads and vegetables. Meat, no matter what kind, should be well done. Fish, if fresh, is safe. Milk and milk products from sealed cartons or bottles are considered safe, as are imported cheeses, butter, cream, and ice cream if storage has been adequate. Most dairy items served in restaurants are imported, but if there is any doubt, do not eat them. The inner lagoons of Abidjan are badly polluted and should be avoided. While the salt water at the ocean beaches near Abidjan is relatively clean, the strong surf and treacherous undertow are extremely dangerous. The pools at the large hotels are filtered and cleaned regularly. The salt water pools at the beach hotels are generally safe. Sexually transmitted diseases, including AIDS, are prevalent among the indigenous population. Insurance Visitors are advised to examine their insurance needs prior to their departure from the United States. Several U.S.-based companies provide very reasonably priced accident, sickness, liability, and medical evacuation insurance world-wide. International Mail and Long Distance Telephone Calls International Postage Rates to U.S.: - An airmail letter to the U.S requires a 310 CFA stamp. - A post card without an envelope requires a 155 CFA stamp. - The large hotels sell stamps and accept mail from guests. The international mailing address of the Embassy is: Ambassade des Etats-Unis 5, rue Jesse Owens 01 B.P. 1712 Abidjan 01, C te d'Ivoire For long distance calls to the U.S., use an AT&T calling card if you have one, especially when calling from your hotel. The access code is 00-1111. You may also use an AT&T card from the C te d'Ivoire to access the following countries using their World Connect Service: Cape Verde Islands, Liberia, Gabon, Nigeria, Gambia, Zambia, Ghana, Zimbabwe, Kenya. Sprint and MCI do not provide direct connect service to the C te d'Ivoire at this time. Transportation in Abidjan If you plan to spend a week or more in Abidjan, it is advisable to hire a car and driver for transportation around the city. Inquire about these services through the concierge at your hotel. It is possible to find English-speaking drivers. Buses: It is not advisable to use the city buses for reasons of safety, security and reliability. Taxis: City taxis (orange-red in color) are reasonably priced, numerous, and available on the main streets and boulevards in most sections of the city, day or night. All are metered. These rates are doubled (legally) between midnight and 5:00 AM. Some taxi drivers may not speak much French and may not know the city as well as one would expect. Before taking a taxi, check to see if the driver really knows where you want to go. Abidjan's taxi drivers are notoriously reckless; when taking a taxi, don't hesitate to instruct the driver to drive slow down. If a driver is driving too fast. If you want the driver to stop, tell him to stop here ("Arr tez ici!"). If you plan to spend more than a few days in Abidjan, you may wish to purchase an Abidjan city map at a local book store. Dining Out Abidjan's restaurants are many and varied, and offer international specialties, excellent fish and French cuisine. Luncheon is usually served between 12:00 pm and 2:00 pm and dinner from about 7:30 pm onward. Prices are reasonable by American standards and a wide range (from the inexpensive maquis to elegant Continental restaurants) is available. Opinions differ on the subject of tipping in Abidjan. Some recommend leaving only a nominal amount of change; others suggest leaving at least 10% of the bill where service is not already included in the bill (Service Compris). It is recommended that you tip at least 10% of the bill under reasonable and normal circumstances. Bon appetit! 6. General Advice Visitors to C te d'Ivoire should show respect for the flag, the President, his government and all that he symbolizes. They should stop for a presidential motorcade, stand for the national anthem, and under no circumstances destroy or deface a portrait of the President. The import and unauthorized use of illicit drugs or firearms are particularly serious offenses. 7. Embassy Assistance Prior to their trip, U.S. business visitors are encouraged to contact the U.S. and Foreign Commercial Service at U.S. Embassy in Abidjan and the Embassy of the C te d'Ivoire in Washington, D.C. The U.S. Embassy in Abidjan is located at 5, Rue Jesse Owens on the Plateau. The telephone number is 225-21-09-79 and fax number is 225-22-32-59. The local mailing address is Ambassade des Etats Unis d'Amerique, B.P. 1712 Abidjan 01, C te d'Ivoire. For specific contacts, their U.S. addresses, telephone and fax numbers, please refer to the Appendix, Section C. The Embassy of the C te d'Ivoire in the United States is located at 2424 Massachusetts Ave., N.W., Washington, D.C. 20008, tel: 202-797-0300, fax: 202-387-6381. The C te d'Ivoire Mission to the United Nations is located at 46 East 74th Street, New York, NY 10021, tel: 212-717-5555, fax: 212-717-4492. A useful international guide is the KEY OFFICERS OF FOREIGN SERVICE GUIDE FOR BUSINESS REPRESENTATIVES published by the U.S. Department of State. It is for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, Document: 7877.