(Ecofin Agency) - In recent years, the Ivorian government has introduced several measures to protect household purchasing power and curb the rising cost of living. According to the National Statistics Agency, per capita gross disposable income reached CFA1.03 million in 2022.

Household purchasing power in Côte d’Ivoire grew by 22.2% between 2015 and 2022, according to the National Statistics Agency (Anstat). The report, released on March 11, highlights how rising incomes and economic policies have shaped consumer spending in recent years.

Despite this growth, the report notes a 0.4% drop in purchasing power in 2018, followed by a steeper 3.6% decline in 2019 before recovering in 2022. However, when adjusted for the dollar, the increase is less pronounced, standing at 15.9% over the same period.

One key factor behind this shift is the rise in gross disposable income (GDI)—the money households have left after taxes and social contributions. GDI surged by 66.7% during the period, reaching CFA31.376 trillion ($52.08 billion).

Inflation played a major role in shaping purchasing power. The World Bank estimates that inflation in Côte d’Ivoire was just 1.3% in 2015, dropping below 1.1% in 2019. But from 2020 onward, rising demand fueled by economic recovery pushed prices higher. By 2022, inflation had climbed to 5.3%, driving up food costs. Efforts to curb inflation in 2022 and 2023 were met with mixed results, as energy and food prices remained high, according to the country’s open data portal.

Since 2017, the Ivorian government has taken steps to shield consumers from the rising cost of living. Measures include partial fuel subsidies and temporary price caps on essential goods like cooking oil, sugar, rice, and meat. The minimum wage was also increased, going from CFA60,000 in 2013 to CFA75,000.

Over the past decade, Côte d’Ivoire has been one of Africa’s fastest-growing economies, averaging 7.8% GDP growth between 2013 and 2019. Despite global economic turmoil, real GDP growth remained steady at 6.5% between 2021 and 2023, according to the World Bank.

However, not everyone has benefited equally. The poverty rate fell from 46.3% in 2015 to 39.4% in 2020, but rural poverty actually rose by 2.4% over the same period.

The UNDP’s Inequality-Adjusted Human Development Index (IHDI) shows steady progress. Between 2015 and 2022, Côte d’Ivoire’s score improved from 0.275 to 0.318, while the overall loss due to inequality dropped from 45.1% to 40.4%. Income inequality also declined, falling from 54.2% to 43.4%, though disparities remain.

The Gini index, which tracks income inequality, also reflects this progress. Between 2015 and 2021, Côte d’Ivoire’s Gini score dropped from 41.5% to 35.3%, signaling a reduction in wealth gaps.

With elections approaching, economic conditions and the cost of living are set to be major concerns for voters. While Côte d’Ivoire has made impressive economic strides, many—especially in rural areas—still struggle with inequality.

The government aims to raise per capita income to $4,000 within the next five years. In 2022, gross disposable income per capita climbed 40.5%, reaching CFA1.03 million. Whether this momentum can be sustained will be a key issue in the years to come.