In Côte d'Ivoire, small and medium-sized enterprises (SMEs) account for 98% of formal businesses, yet they face significant challenges due to payment delays from clients. To address this issue, the Comité de Concertation État-Secteur Privé (CCESP) has recommended reforms aimed at establishing payment deadlines, automatic penalties, and the creation of a National Observatory. These proposals were presented on October 29, 2026, in Abidjan, with the goal of strengthening SME cash flow and facilitating access to financing.
Payment delays have a profound impact on SMEs in Côte d'Ivoire, forcing them to finance client activities while awaiting payment for their invoices. This situation can weaken their cash flow, threatening their development and survival. The CCESP, in collaboration with the German Federal Ministry for Economic Cooperation and Development (BMZ), conducted a diagnostic study and benchmarked international best practices to develop a roadmap for reform.
According to Dr. Moussa Élias Farakhan Diomandé, president of the Confédération patronale unique des PME (CPU-PME), SMEs provide involuntary credit to clients without interest or guarantees. He emphasized that "the cheapest bank in Côte d'Ivoire is the SME." The study, led by consultant Katoh Hamadou Koné, gathered responses from 97 SMEs, large enterprises, banks, financial institutions, and support structures, revealing significant discrepancies between contractual and actual payment deadlines.
The study found that 16 out of 48 SMEs surveyed reported waiting over 90 days for payment, with delays in the construction sector reaching six to twelve months. As a result, over seven out of ten SMEs experience recurring cash flow tensions, and 28 out of 49 have refused contracts due to insufficient resources. Furthermore, 29 SMEs have faced or narrowly avoided cessation of payment.
The study also highlighted an imbalance in commercial relationships, with 38 out of 49 SMEs never receiving late payment penalties. Additionally, 41 out of 49 SMEs have never used factoring, despite eight out of thirteen banks estimating that reform could increase client financing by over 10%. The proposed reforms include negotiated payment deadlines, automatic penalties, and the publication of good and bad payers.
Based on a benchmark of international best practices, the study recommends a sectoral regulatory approach, combining incentives and accelerated arbitration. Proposed measures include payment deadlines of 90 days in construction, 60 days in agro-industry, and 30 days in private healthcare. A general deadline of 60 days would be established after a one-year adaptation period. The reforms also propose the creation of an Observatoire des délais de paiement and a national register of invoices.
The implementation of these reforms is expected to reduce SME payment delays to 60 days within 12 to 36 months and potentially triple the volume of factoring within three to five years. According to Georges Copré, Conseiller technique en chef, representing the Secrétaire exécutive du CCESP, Côte d'Ivoire has an opportunity to become a pioneer in the sub-region in regulating payment deadlines. The CPU-PME advocates for a law on interprofessional deadlines, a targeted revision of the Code des marchés publics, and the creation of a national observatory.
Key points
- The CCESP proposes reforms to address payment delays affecting SMEs in Côte d'Ivoire.
- The reforms aim to establish payment deadlines, automatic penalties, and a National Observatory to support SMEs.
- The implementation of these reforms is expected to reduce SME payment delays and increase access to financing.
