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Economic Guide : Congo Opportunities for Investment

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Economic Guide : Congo Opportunities for Investment Economic Guide : Congo Opportunities for investment FOREWORD FOREWORD Preface Preface “Marching toward development” Blueprint for society (2016–2021) by H.E. Mr. Denis Sassou N’Guesso, President of the Republic of the Congo “My profession of political faith, which has not once wavered since I assumed the responsibilities of state, is to contribute, without sparing the least effort, to carrying my country as far as possible down the road of development. I am dedicating the better part of my life to this mission. I cannot imagine Congo as anything other than a developed country. One by one, I have come to know all the obstacles erected along the long path that leads toward de- velopment. I have also undertaken the proper measure of efforts still to be made in order to remove the remaining obstacles that separate us from development. I am laboring and carrying out work that everybody can appreciate. For more than a year, the international situation has been depressed. Coupled with the dras- tic drop in crude oil prices are warning signs of a loss of impetus in the global economy. Some analysts are at the point of forecasting the arrival of a global economic financial crisis. The violent finan- cial impact caused by the collapse in the price of a barrel of oil has been harsh for Congo, an oil-produc- ing country. It is resisting. It is resisting well, undoubtedly because it is being led with confidence. Through these difficult times, there is no place for amateurism, apprenticeship, or retaliation. The relent- less work and its outcomes in favor of the people are deserving only of attention and interest. I have energy and unlimited time to give to my people and to my country. It is as a man of conviction and experience that I propose to you all that we continue to move Congo forward along the road of development. Let’s go further together.” DENIS SASSOU N’GUESSO © AFP - GEORGES GOBET Foreword 4 - Economic Guide: Congo U.S. CHAMBER OF COMMERCE U.S. CHAMBER OF COMMERCE Economic Guide: Congo - 5 FOREWORD FOREWORD Editorial Editorial Editorial Scott Eisner The US Chamber of Commerce is the world’s largest busi- ness federation representing the interests of over three mil- lion companies. The Chamber’s U.S. - Africa Business Center’s © IAN WAGREICH (USAfbC) mission is to build lasting prosperity for Africans and Senior Vice President, U.S. Americans through job creation and entrepreneurial spirit. The Chamber of Commerce and Center firmly believes that the future of the global economy lies President of the U.S. Africa in Africa. Business Center, June 2017 Since embarking on our initial program in May 2009, the Chamber has made great strides bridging the gap between U.S businesses and Africa. The Center is leading the U.S. private advancing policies that attract greater investment and support trade with our partners throughout the continent. Located in Central Africa, the Republic of Congo is full of op- portunities for infrastructure development, agriculture, trans- portation, energy and tourism. The Republic of Congo possess- es many attributes to attract foreign direct investments and has tremendous wealth potential for the U.S. private sector. The Center applauds the numerous measures taken by the Congolese government to improve the investment climate, and strongly believes that sustainable, inclusive economic growth is a key ingredient to security, political stability and development. The Center looks to work with the businesses of the Republic of Congo to diversify its economy beyond oil and will work with the Congolese government to remove constraints to trade and investments while working to create opportunities for the Congolese economy to prosper. We will encourage American companies to seize opportunities so that their skills, capital, and technology can further support the country’s economic expansion, while helping to create jobs in America. The U.S. Chamber’s business federation represents businesses of all sizes, sect errors, and regions, as well as state and local chambers and industry associations. Its international affairs di- vision includes more than 70 regional and policy experts and 25 country and region specific business councils and initia- tives. The U.S. chamber also works closely with 117 American © AFP - NICOLAS ASFOURI Chambers of Commerce abroad. Editorial 2 - Economic Guide: Congo U.S. CHAMBER OF COMMERCE U.S. CHAMBER OF COMMERCE Economic Guide: Congo - 3 CONTENTS SOMMAIRE ECONOMY ÉCONOMIE 16 120 10 116 CONGO CONGO OVERVIEW TOUR D’HORIZON INFRASTRUCTURES GROWTH INFRASTRUCTURES SECTEURS SECTORS PORTEURS 46 Economic 58 150 Economic 162 Guide: Guide: Congo Congo 104 202 ACRONYMS SIGLES U.S. CHAMBER OF COMMERCE U.S. CHAMBER OF COMMERCE Contents Sommaire 2 - Economic Guide: Congo U.S. CHAMBER OF COMMERCE U.S. CHAMBER OF COMMERCE Economic Guide: Congo - 3 OVERVIEW OVERVIEW General presentation General presentation © SHUTTERSTOCK - NATANAEL GINTING © SHUTTERSTOCK - NATANAEL © DR © PHILIPPE GUIONIE his optimism is based But oil is not the country’s telecommunications. A num- on the many assets only source of wealth, far ber of other economic sectors Tupon which the coun- from it! Gold, diamonds, have a marginal share of na- try can depend. First, of iron, potassium, magne- tional indicators, and are like- Congo course, is oil, which largely sium, phosphate, uranium, ly to experience significant supports the national econ- coltan, polymetals (copper, growth if adequate invest- General presentation omy. Congo is the largest zinc, lead), bauxite, rare ments are made: construc- crude oil producer in the earth elements (granite, tion and public works, agri- Central African Economic clay, etc.), and cassiterite: culture (food crops, such as For decades, the direction of demographic and Monetary Communi- Congo’s mineral resources rice, maize and cassava, and ty (CEMAC) zone and the appear to be inexhaustible, cash crops, including sugar- development in the Republic of the Congo has been commodity accounts for 58% and exploitation of these cane, cocoa, cotton, bananas, steadily upwards, and this trend continues unabated. of GDP, 70% of government resources is still in its in- peanuts, rubber, and palms), The country thus benefits from a young population, revenues, and 90% of export fancy. The extractive indus- forestry (tropical woods such earnings. Although the mar- tries continue to have a very as mahogany, ebony, okume), and also has a continuously rising literacy rate: two ket has experienced some tur- promising future ahead of and the manufacturing indus- positive indicators on the path to emergence, which bulence in recent years due to them. try all offer scope for substan- falling prices, the abundance The tertiary sector, another tial development. the President, Denis Sassou N’Guesso, envisions for of reserves makes up for this driver of the country’s econ- To take advantage of these 2025. decline. The industry’s future omy, is for its part steadily riches, one sector is vitally im- seems assured thanks to the increasing, accounting for portant: transportation infra- development prospects of the 23.5% of GDP. It includes structure. This is essential to Moho-Bilondo Nord deepwa- trade activities, hotels and facilitate the transit of goods ter project. catering, and transport and produced in the Congo as Overview 2 - Economic Guide: Congo U.S. CHAMBER OF COMMERCE U.S. CHAMBER OF COMMERCE Economic Guide: Congo - 3 OVERVIEW OVERVIEW General presentation General presentation well as in neighboring coun- In 2014, the continent’s the Congolese Directorate tries, enabling the nation to infrastructure investment of Major Works and the become a hub for the subre- deficit caused a 40% loss in Franco-Luxembourg com- gion, supported by its geo- productivity, with needs es- pany Edifice Capital, bring- graphic position. Numerous timated at USD 93 billion a ing together institutional projects are under consider- year, while effective invest- and private European inves- ation or already being imple- ment was only USD 45 bil- tors (pension funds, insur- mented throughout the coun- lion. Congo has therefore ance funds, etc.). This is an try, supervised by the Spatial decided to take action and invaluable tool for Congo, Planning Ministry and the mobilize financial players, which will help the coun- General Delegation for Major both private and public, try to realize its ambition of Works. These include a road- foreign and Congolese, fo- emergence. rail bridge on the Congo River, cusing on public-private Finally, in 2010, Congo connecting the capitals of partnerships (PPPs). The reached the completion Brazzaville and Kinshasa, the country is something of a pi- point under the Heavily rehabilitation and asphalting oneer on the continent with Indebted Poor Countries of roads (including between respect to the latter, as PPPs (HIPC) initiative, resulting Pointe-Noire, Brazzaville remain marginal in Africa in its external debt being cut and Ouesso, the nerve center despite growing interest. almost in half. The country opening up the hinterland), The Build Africa Forum held took advantage of this re- a mining port and pilot spe- in Brazzaville in February lief to turn its capital into cial economic zone in Pointe- 2015 gave politicians, eco- investments in basic social Noire, and a hydroelectric nomic decision-makers, infrastructure. President dam in Sounda. This list, by top executives and other Denis Sassou N’Guesso’s no means exhaustive, shows entrepreneurs an opportu- “accelerated municipaliza- the government’s willingness nity to meet and exchange tion” program has, step by to tackle not only the problem views. A technical assis- step, boosted the country’s of transport, but also that of tance agreement on PPPs departments, developing infrastructure as a whole. was also signed between socio-economic infrastruc- ture to stimulate their econ- omies and improving the living conditions of local populations, providing bet- ter access to health, educa- tion, water and electricity, not to mention new infor- mation technologies.
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