Lively fishing fishing villages lining the shores of the lagoons surrounding Abidjan, Côte d'ivoire (Ivory Coast), West Africa

Lagoon Transportation

Photo by Shutterstock / LouieLea

Lagoon Transportation

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Transportation
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Marine Transportation
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Sustainable Cities and Communities (SDG 11)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)

Business Model Description

Focusing on the Abidjan region, build, acquire, or use existing port terminals in the Ebrié lagoon, especially in Abatta, Bingerville, and Yopougon, to provide lagoon transportation services. Acquire boats, and offer individual as well as vehicle transport services to attract different income groups.

Expected Impact

Constitute a greener and affordable alternative compared to personal vehicles and minibuses, contributing to alleviate traffic congestion and the damage it causes in terms of life quality, also improving access to economic opportunities.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: District Autonome d'Abidjan
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: Comoé
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Transportation

Development need
The transport sector is responsible for 40% of the country's total CO2 emissions, which are expected to increase by 6% until 2030. Atmospheric pollution is responsible for 34,000 premature deaths a year in Côte d'Ivoire (1, 5, 11).

Policy priority
Côte d'Ivoire's Nationally Determined Contributions (NDCs) and its National SLCP Action Plan promote key strategies to reduce transport-related emissions, including the promotion of mass transport, fleet renewal, and the adoption of cleaner fuels. The National Development Plan aims to increase public investment to fund major infrastructure projects, including in the lagoons (3, 6, 5, 12, 13).

Gender inequalities and marginalization issues
In Côte d'Ivoire, transport infrastructures are unevenly distributed as 30% of the population, spread over almost 50% of the country's total surface area, is not directly connected to the paved road network. The public transport network is concentrated in Abidjan and remains inadequate, leading to extensive use of informal means of transport. The sector employs less women, they represent only 8% of Société des Transports Abidjanais' (SOTRA) workforce (2, 4, 18).

Investment opportunities introduction
Transportations is among the most important sectors in Côte d'Ivoire, weighing 7% of GDP. The Abidjan region accounts for 60% of the country's GDP and is experiencing rapid economic and demographic growth, resulting in a sharp increase in demand for mobility (16).

Key bottlenecks introduction
Rapid urbanization, alongside informality, may pose challenges in terms of planning and market access. The swift growth of urban areas, particularly in Abidjan, has outpaced the development of adequate transport infrastructure and services. For instance, the Abidjan metro has been delayed due to environmental and social compliance. This has led to increased congestion, pollution, and inefficiencies that may deter investment (1, 17).

Sub Sector

Marine Transportation

Development need
The city of Abidjan accounts for over 70% of Ivorian vehicles, and the population is heavily dependent on individual vehicles, minibuses (Gbâkas) and shared taxis (wôrô-wôrôs), which emit high levels of CO2 and contribute to accidents' average annual growth of 4%. There are pressing needs for alternative modes of transportation, especially lagoon, which is crucial to curb traffic jams. Those are a major source of emissions and impact welfare and access to jobs (1, 5, 8, 11, 12).

Policy priority
Ministry of Transportation's "Feuille de Route de la Mobilité Durable en Côte d'Ivoire 2020" sets out the objectives for low-carbon mobility. It includes increasing the use of lagoon transportation for both passengers and for goods. The National Logistic Plan aims to develop lagoon and river freight transportation to improve supply chains efficiency (4, 10, 12).

Gender inequalities and marginalization issues
In Abidjan, the poorest households spend an average 20-30% of their income on transport, as well as 200 minutes commuting or waiting for public transport. Children are particularly vulnerable to air pollution in Abidjan with high prevalence rates of asthma (7, 12, 14).

Investment opportunities introduction
In Abidjan, approximately 40% of the 13.6 million daily journeys are made on foot, and only 2% via lagoon transport, indicating significant growth potential. In 2020, the three lagoon operators carried 109,000 passengers daily against an estimated demand of 225,000 passengers (1, 2, 12, 15).

Key bottlenecks introduction
Upfront investments in marine transportation are significant, entailing docks, terminals, and access roads. In addition, ongoing maintenance of vessels and infrastructure in a saline water environment can be costly (9).

Industry

Marine Transportation

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Lagoon Transportation

Business Model

Focusing on the Abidjan region, build, acquire, or use existing port terminals in the Ebrié lagoon, especially in Abatta, Bingerville, and Yopougon, to provide lagoon transportation services. Acquire boats, and offer individual as well as vehicle transport services to attract different income groups.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

Since the liberalization of the sector, the number of passengers using the lagoon transportation services increased from 8.4 million in 2017 to 17.7 million in 2023. The prospects for further expansion of terminals and boats vouch for a market size of more than USD 380 million (24).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

Based on a financial feasibility study of ferry services with the viability gap funding, in East Africa, investments would generate an IRR of 13% over a period of nine years (38).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Based on a financial feasibility study of ferry services with the viability gap funding, in East Africa, investments would generate an IRR of 13% over a period of nine years (38).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Market - Highly Regulated

Market entry requires the acquisition of multiple licenses, both to construct infrastructure and to operate on the river. Authorisation to operate a lagoon line must be granted by the Direction Générale des Affaires Maritimes et Portuaires (DGAMP) (40).

Market - High Level of Competition

Currently, three companies operate within this sector, which faces constraints due to logistical challenges, particularly limited space for constructing stations.

Business - Business Model Unproven

Although Abidjan's transport company (SOTRA) has been operating in lagoon transportation since the 1980s, the sector's liberalization is recent, dating back to 2015, offering limited historical perspective (20).

Capital - CapEx Intensive

Taxes on construction material represent 15 to 30% of their value, which can negatively impact costs in construction-intensive activities such as the building of port terminals (35).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

The World Bank estimates that traffic jams cost the Ivorian economy 5% of GDP in 2017. Time spent in traffic jams has a negative effect on productivity and access to economic opportunities (26).

In Abidjan, households spend on average three hours per day in transportation, a direct consequence of traffic jams. Some traffic axes are overexposed, particularly the bridges linking the communes separated by lagoons due to and corridors linking the communes, with dense commuting fluxes between residential areas and employment areas, located across the lagoon. This negatively impacts life quality (26, 36, 41).

Between 2013 and 2018, the number of accidents on the Ivorian road network rose by an average of 3.87% per year. Accidents are concentrated in Abidjan, and over half are caused by individual cars, followed by minibuses (gbâkas) (1, 42).

Gender & Marginalisation

The concentration of greenhouse gases in Abidjan is largely superior to the standards of the World Health Organization, and poses peculiar threats to the women and the elderly, which are more vulnerable to pollution. This problem is exacerbated by traffic jams (28).

Traffic congestion and extended commuting times lead to increased fuel expenses, placing an additional financial burden on low-income households (41).

Expected Development Outcome

Lagoon transportation can help reduce the economic toll of traffic jams by carrying dozens of people at once. As traffic is particularly heavy at bridges and between neighbourhoods separated by lagoons, this is a crucial solution to traffic jams (22, 36).

Lagoon transportation can prove much faster than personal vehicles as they are exempt from jams and slow-downs related to roadworks. A user reported taking 30 minutes by boat for a journey that would take one to two hours by road (22).

Increased traffic on the lagoon reduces road accidents, as it is a safer means of transport compared to cars and minibuses, and it reduces congestion on the road (22).

Gender & Marginalisation

Lagoon transportation constitutes a solution against pollution as they release much less energy per capita. Carbon dioxide emissions per unit from river transport are two to four times lower than those from road transport (37).

Lagoon transportation can help reduce congestion, thereby lowering fuel expenses. It can also decrease commuting times by providing shortcuts compared to land transportation, especially in areas where bridges are distant or heavily congested (22).

Primary SDGs addressed

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.1.2 Passenger and freight volumes, by mode of transport

Current Value

In 2023, the number of daily passengers through lagoon transportation was 48,500 (24).

Target Value

The government aims to reach 500,000 daily passengers through lagoon transportation (39).

Sustainable Cities and Communities (SDG 11)
11 - Sustainable Cities and Communities

11.2.1 Proportion of population that has convenient access to public transport, by sex, age and persons with disabilities

Current Value

In Côte d'Ivoire, the proportion of the population with convenient access to public transport in cities was 49.56% in 2020 (31, 44).

Target Value

The long-term objective for this indicator is a value of 100% (31).

Secondary SDGs addressed

Good health and well-being (SDG 3)
3 - Good Health and Well-Being
Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production
Climate Action (SDG 13)
13 - Climate Action

Directly impacted stakeholders

People

The population of Abidjan benefits from a means of transport that is more affordable, safer and more environmentally friendly than road transport.

Gender inequality and/or marginalization

The poorer segments of the population, who cannot afford personal vehicles, would benefit the most, as alternative modes of transportation tend to be more time-consuming.

Planet

Nature and animals benefit from lagoon transportation, which emits less per capita compared to other modes of transportation (21).

Corporates

Companies in the boat and terminal construction and maintenance sector benefit from an increase in activity.

Public sector

The government benefits from an improvement in public health and road safety, as well as the development of a formal, and therefore taxable, means of transport.

Indirectly impacted stakeholders

People

People benefit from the development of lagoon transport, as it reduces travel times and improves access to employment opportunities, making daily commutes more efficient and convenient.

Gender inequality and/or marginalization

Women and children, who are particularly vulnerable to air pollution and effects of climate change, including droughts, would benefit from a reduction in road traffic and its emissions (5, 14).

Planet

Nature and animals benefit from lagoon transport as it helps alleviate urban traffic congestion, leading to a reduction in greenhouse gas emissions and a less polluted environment, contributing to the protection of ecosystems.

Corporates

Firms enjoy improved supply chains due to lower traffic jams. This could result in faster supply and lower transport-related costs.

Outcome Risks

Lagoon transportation may cause negative externalities such as water pollution or waste disposal. Without proper environmental management, it could exacerbate pollution in the already fragile lagoon ecosystem.

Without proper oversight, there is a risk that the infrastructures and the boats are not maintained adequately, constituting a potential source of accidents (48).

There is a risk that a significant increase in lagoon transportation further fragilizes ecosystems in the Ebrié lagoon, which are already vulnerable due to pollution, industry-related contamination, and pesticides (47).

Impact Risks

Compared to other means of transportation, lagoon transportation may be more exposed to external risks such as extreme weather events (e.g., flooding, storms) as well as erosion, which are increasingly common due to climate change. This could affect the construction and operation of infrastructures (45, 46).

There is a drop-off risk that the positive effects of the lagoon transportation system, such as reduced traffic congestion and lower emissions, may be limited if the service proves more costly than alternative means of transportation, such as buses and minibuses.

Gender inequality and/or marginalization risk: If companies enforce tariffication strategies to attract higher-end customers, benefits may be limited to wealthier segments of the population.

Gender inequality and/or marginalization risk: If new lagoon transportation lines are opened in area which are already serviced, the impact on less-connected communities may be small.

Impact Classification

C—Contribute to Solutions

What

Scaling up lagoon transport reduces the pressure on road transport, offering an affordable and safer mode of transport.

Who

The general population benefit from improved transportation and lower emissions, especially commuters residing far away from their workplace.

Risk

Lagoon transportation faces risks from extreme weather due to climate change, which could disrupt infrastructure, and may fail to deliver long-term benefits if ridership declines or costs are too high.

Contribution

Lagoon transportation replaces alternative transportation modes, such as shared taxis, individual vehicles and scooters. They are more sustainable and contribute to tackling traffic congestion in Abidjan.

How Much

The government aims to increase lagoon traffic in Abidjan targeting 500,000 daily passengers, the construction of 20 new lagoon stations and the acquisition of 150 new transportation boats (39).

Impact Thesis

Constitute a greener and affordable alternative compared to personal vehicles and minibuses, contributing to alleviate traffic congestion and the damage it causes in terms of life quality, also improving access to economic opportunities.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Côte d'Ivoire's Nationally Determined Contributions include strategies for promoting clean public transportation, reducing vehicle emissions, and integrating low-emission vehicles into the transportation network, of which lagoon. Passenger boats represent an example of such low-emission public transport vehicles. These measures are part of the country's efforts to reduce emissions by 30.41% by 2030​ (5).

The Sustainable Mobility Roadmap of Côte d’Ivoire 2020 (Feuille de Route de la Mobilité Durable en Côte d'Ivoire 2020) outlines the national strategy for sustainable transportation. It aims to develop low-carbon public transportation systems, promote electric vehicles and non-motorized transport, and enhance freight logistics through lagoon and river systems (12).

The Abidjan Urban Mobility Project aims to develop an East-West BRT line and support urban mobility in Abidjan, funded by 380 million USD from the World Bank and PPPs. It purports to improve public transport efficiency and cut CO2 emissions by 100 tons/year (33).

Côte d'Ivoire National Logistics Plan (Plan National de la Logistique de Côte d’Ivoire), under preparation, seeks to identify the required investments to improve the passenger and freight transport sector, notably in Abidjan and along the sub-regional corridors linking Burkina Faso, Côte d'Ivoire, Ghana, and Mali. Lagoon transportation is mentioned as a key mode of freight transport (4).

The National Short-Lived Climate Pollutant (SLCP) Action Plan (2019) aims to reduce emissions of black carbon and other pollutants, notably through cleaner diesel, renewing the vehicle fleet and facilitating the transition to cleaner fuel for public transport, which includes lagoon-based transport systems (13).

Financial Environment

Financial incentives: In 2023, the Greater Abidjan Urban Mobility Authority (AMUGA) announced the provision of around one hundred boat-buses for the three companies (SOTRA, STL and CITRANS) operating on the lagoon to facilitate commercial activities (29).

Other incentives: The Ivorian government offers BOT (Build-Operate-Transfer) concessions to operate lagoon passenger transport by bus boats (19).

Other incentives: In 2018, the World Bank allocated USD 300 million to support the Greater Abidjan Port-City Integration Project. This initiative includes the rehabilitation of lagoon passenger transport stations (43).

Regulatory Environment

Loi No 2014-812 "d’orientation du transport intérieur" is a key legislative framework governing internal transportation in Côte d'Ivoire. It outlines the legal framework for organizing and regulating the transport sector, covering all modes of internal transport, including road, rail, lagoon, and air transport within national border. The law also establishes an independent authority in charge of regulating domestic transportation, arbitrating for conflicts, and overseeing conventions. The State can set indicative prices for various modes of transport and may allocate subsidies (20).

Law No. 2014-812 "d’orientation du transport intérieur", amended by ordinance No. 2018-09, opened up the transport market to competition, thereby ending SOTRA's monopoly on lagoon transportation in Abidjan. Private actors can freely offer lagoon transportation services, subject to government's approvals (20, 25).

Private actors are required to obtain an authorization from the "Direction Générale des Affaires Maritimes et Portuaires (DGAMP)" to operate in the lagoon. In addition, approvals are required at the district level, including from the Agence d'Urbanisme et de Prospective du District d'Abidjan (1, 40).

Loi no 2017-442, "Maritime Code" covers various aspects of maritime transport, safety, environmental regulations, and economic activities. It applies to all commercial maritime operations in Ivorian waters, including lagoons, and contain pollution control and safety measures (23).

Decree No. 2019-243 defines the procedures for delimiting and managing Côte d'Ivoire's maritime and fluvio-lagoon public domain, including coastal and inland waterways. It outlines responsibilities for protecting these areas and rules regarding the issuance of permits for activities. This restricts lagoon transportation to designated areas (32).

Marketplace Participants

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Private Sector

Société des Transports Abidjanais (SOTRA), Société de Transport Lagunaire (STL), and Compagnie Ivoirienne de Transports Lagunaires (CITRANS).

Government

Ministry of Transportation, Comité de Concertation Etat-Secteur Privé, Agence d'Urbanisme et de Prospective du District d'Abidjan, Autorité de la Mobilité Urbaine dans le Grand Abidjan, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI), Direction Générale des Affaires Maritimes et Portuaires (DGAMP).

Multilaterals

World Bank, African Development Bank (AfDB), United Nations Environment Programme (UNEP).

Non-Profit

Climate Chance, French Development Agency (AFD), Japan International Cooperation Agency (JICA).

Public-Private Partnership

In 2014, CITRANS was awarded a 25-year BOT (Build-Operate-Transfer) concession by the Ivorian government allowing it to operate lagoon transport for passengers by bus boats (19).

Target Locations

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country static map
urban

Côte d'Ivoire: District Autonome d'Abidjan

Abidjan is the unique target as its vast lagoon environment makes such investments viable. Despite the entry of three actors, the demand remains high as congestion is a recurrent challenge. The lagoon is also located at the heart of the city, offering a viable alternative or complement to road transportation.
semi-urban

Côte d'Ivoire: Bas-Sassandra

Lagoon transportation could potentially be developed in the Digboué lagoon. However, due to its position in the western periphery of San Pedro, its market potential is significantly smaller than that of Abidjan (34).
semi-urban

Côte d'Ivoire: Comoé

The South Comoé's dense hydrographic network offers strong potential for fishing, aquaculture, and lagoon transport, but remains underutilized due to outdated infrastructure. Cote d'Ivoire's investment promotion agency lists building modern docks as a key investment for the Comoé district to enhance mobility and boost cross-border trade (50).

References

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