| CONGO - BRAZZAVILLE |
Economy:
The economy is a mixture of subsistence agriculture, an industrial sector based largely on
oil and support services, and government spending. Oil has supplanted forestry as the
mainstay of the economy, providing a major share of government revenues and exports. In
the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale
development projects with GDP growth averaging 5% annually, one of the highest rates in
Africa. Characterized by budget problems and overstaffing, the government has
mortgaged a substantial portion of its oil earnings through oil-backed loans that have
contributed to a growing debt burden and chronic revenue shortfalls. Economic reform
efforts have been undertaken with the support of international organizations, notably the
World Bank and the IMF. However, the reform program came to a halt in June 1997 when
civil war erupted. Denis SASSOU-Nguesso, who returned to power when the war ended in
October 1997, publicly expressed interest in moving forward on economic reforms and
privatization and in renewing cooperation with international financial institutions. Economic
progress was badly hurt by slumping oil prices and the resumption of armed conflict in
December 1998, which worsened the republic's budget deficit. The current administration
presides over an uneasy internal peace and faces difficult economic challenges of
stimulating recovery and reducing poverty. The drop in oil prices during the global crisis
reduced oil revenue by about 30%, but the subsequent recovery of oil prices has boosted
the economy's GDP and near-term prospects. In March 2006, the World Bank and the
International Monetary Fund (IMF) approved Heavily Indebted Poor Countries (HIPC)
treatment for Congo, receiving $1.9 billion in debt relief under the program in 2010.
GDP (purchasing power parity):
$17.11 billion (2010 est.)
country comparison to the world: 132
$15.68 billion (2009 est.)
$14.59 billion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$11.53 billion (2010 est.)
GDP - real growth rate:
9.1% (2010 est.)
country comparison to the world: 9
7.5% (2009 est.)
5.6% (2008 est.)
GDP - per capita (PPP):
$4,100 (2010 est.)
country comparison to the world: 158
$3,900 (2009 est.)
$3,700 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 4.4%
industry: 63.7%
services: 32% (2010 est.)
Exports - commodities:
petroleum, lumber, plywood, sugar, cocoa, coffee, diamonds
Exports - partners:
US 40.08%, China 30.18%, France 8.17%, Taiwan 6.4%, India 4.2% (2009)
Imports - commodities:
capital equipment, construction materials, foodstuffs
Imports - partners:
France 20.64%, China 14.54%, Italy 9.56%, US 9.02%, India 5.55%, Belgium 4.51% (2009)
Executive Summary extracted from IMF Report - Congo - Fifth and Sixth
Reviews Under the Three-Year Arrangement Under the Extended Credit
Facility and Financing Assurances Review (August 2011)
Recent Economic Developments and Prospects
Macroeconomic performance strengthened in 2010, mostly due to domestic factors, and
has remained strong. There are signs that non-oil activity (construction, telecoms and
forestry) continues to rise, while inflation has ticked up in line with global developments.
The external position improved markedly in 2010. Bouncing oil prices shifted the current
account into surplus, while debt relief following the HIPC Completion Point (January 2010)
reduced external liabilities sharply. Gross official foreign assets rose to 44 percent of GDP
at end-2010 and net debt is small at 3½ percent of GDP.
Program Performance at end-December 2010 and end-March 2011
The authorities observed all continuous, end-December 2010 and end-March 2011
quantitative performance criteria. The cumulative adjustment of the basic non-oil primary
deficit (BNOPD) over the first two years of the program was equivalent to the envisioned
adjustment over the course of the full three-year ECF supported arrangement. The lower
accumulation of government deposits in the regional central bank (BEAC) through March
2011 is explained mostly by higher foreign deposits, which are now being repatriated.
The authorities observed the two structural benchmarks aimed at improving oil
governance, while in the area of public financial management, the benchmark was met with
delay. Despite significant progress in applying the new procurement code, they fell short of
the targeted percentage (competitive bidding on 80 percent of contracts above $500,000)
on both test dates because of early implementation difficulties at the ministerial level and
the need to regularize previously signed contracts by placing them under the new code.
However, by end-May the authorities had achieved a rate of about 90 percent.
Policies in the Period Ahead
Fiscal policy in 2011 focuses on scaling up investment spending on infrastructure, while
continuing to save a sizable share of oil revenue. Measures are also in train to increase
investment efficiency by strengthening public financial management. An advisor is in place
to assist with project identification and assessment for the 2012 budget, and work is
underway to further strengthen the expenditure chain.
A fiscal reform program for 2011–13 aims to improve the design of Congo’s tax system and
strengthen fiscal institutions, while raising revenue collection. The authorities have already
taken initial measures to unify tax rates and simplify the tax regime; are producing a tax
expenditure document; and are working to strengthen capacity and reduce tax evasion.
They are also gearing up to implement the action plan to improve the business climate.
However, the uphill battle for more sweeping reforms continues, mostly due to vested
interests.
Click here to view full report
Stock Exchange
The BVMAC, with a primary market and secondary market, was founded in 2003. It is a
regional stock exchange, with headquarters in Libreville, Gabon, and it serves the following
central African countries: Cameroon, Central African Republic, Chad, Congo, Equatorial
Guinea and Gabon
The economy is a mixture of subsistence agriculture, an industrial sector based largely on
oil and support services, and government spending. Oil has supplanted forestry as the
mainstay of the economy, providing a major share of government revenues and exports. In
the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale
development projects with GDP growth averaging 5% annually, one of the highest rates in
Africa. Characterized by budget problems and overstaffing, the government has
mortgaged a substantial portion of its oil earnings through oil-backed loans that have
contributed to a growing debt burden and chronic revenue shortfalls. Economic reform
efforts have been undertaken with the support of international organizations, notably the
World Bank and the IMF. However, the reform program came to a halt in June 1997 when
civil war erupted. Denis SASSOU-Nguesso, who returned to power when the war ended in
October 1997, publicly expressed interest in moving forward on economic reforms and
privatization and in renewing cooperation with international financial institutions. Economic
progress was badly hurt by slumping oil prices and the resumption of armed conflict in
December 1998, which worsened the republic's budget deficit. The current administration
presides over an uneasy internal peace and faces difficult economic challenges of
stimulating recovery and reducing poverty. The drop in oil prices during the global crisis
reduced oil revenue by about 30%, but the subsequent recovery of oil prices has boosted
the economy's GDP and near-term prospects. In March 2006, the World Bank and the
International Monetary Fund (IMF) approved Heavily Indebted Poor Countries (HIPC)
treatment for Congo, receiving $1.9 billion in debt relief under the program in 2010.
GDP (purchasing power parity):
$17.11 billion (2010 est.)
country comparison to the world: 132
$15.68 billion (2009 est.)
$14.59 billion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$11.53 billion (2010 est.)
GDP - real growth rate:
9.1% (2010 est.)
country comparison to the world: 9
7.5% (2009 est.)
5.6% (2008 est.)
GDP - per capita (PPP):
$4,100 (2010 est.)
country comparison to the world: 158
$3,900 (2009 est.)
$3,700 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 4.4%
industry: 63.7%
services: 32% (2010 est.)
Exports - commodities:
petroleum, lumber, plywood, sugar, cocoa, coffee, diamonds
Exports - partners:
US 40.08%, China 30.18%, France 8.17%, Taiwan 6.4%, India 4.2% (2009)
Imports - commodities:
capital equipment, construction materials, foodstuffs
Imports - partners:
France 20.64%, China 14.54%, Italy 9.56%, US 9.02%, India 5.55%, Belgium 4.51% (2009)
Executive Summary extracted from IMF Report - Congo - Fifth and Sixth
Reviews Under the Three-Year Arrangement Under the Extended Credit
Facility and Financing Assurances Review (August 2011)
Recent Economic Developments and Prospects
Macroeconomic performance strengthened in 2010, mostly due to domestic factors, and
has remained strong. There are signs that non-oil activity (construction, telecoms and
forestry) continues to rise, while inflation has ticked up in line with global developments.
The external position improved markedly in 2010. Bouncing oil prices shifted the current
account into surplus, while debt relief following the HIPC Completion Point (January 2010)
reduced external liabilities sharply. Gross official foreign assets rose to 44 percent of GDP
at end-2010 and net debt is small at 3½ percent of GDP.
Program Performance at end-December 2010 and end-March 2011
The authorities observed all continuous, end-December 2010 and end-March 2011
quantitative performance criteria. The cumulative adjustment of the basic non-oil primary
deficit (BNOPD) over the first two years of the program was equivalent to the envisioned
adjustment over the course of the full three-year ECF supported arrangement. The lower
accumulation of government deposits in the regional central bank (BEAC) through March
2011 is explained mostly by higher foreign deposits, which are now being repatriated.
The authorities observed the two structural benchmarks aimed at improving oil
governance, while in the area of public financial management, the benchmark was met with
delay. Despite significant progress in applying the new procurement code, they fell short of
the targeted percentage (competitive bidding on 80 percent of contracts above $500,000)
on both test dates because of early implementation difficulties at the ministerial level and
the need to regularize previously signed contracts by placing them under the new code.
However, by end-May the authorities had achieved a rate of about 90 percent.
Policies in the Period Ahead
Fiscal policy in 2011 focuses on scaling up investment spending on infrastructure, while
continuing to save a sizable share of oil revenue. Measures are also in train to increase
investment efficiency by strengthening public financial management. An advisor is in place
to assist with project identification and assessment for the 2012 budget, and work is
underway to further strengthen the expenditure chain.
A fiscal reform program for 2011–13 aims to improve the design of Congo’s tax system and
strengthen fiscal institutions, while raising revenue collection. The authorities have already
taken initial measures to unify tax rates and simplify the tax regime; are producing a tax
expenditure document; and are working to strengthen capacity and reduce tax evasion.
They are also gearing up to implement the action plan to improve the business climate.
However, the uphill battle for more sweeping reforms continues, mostly due to vested
interests.
Click here to view full report
Stock Exchange
The BVMAC, with a primary market and secondary market, was founded in 2003. It is a
regional stock exchange, with headquarters in Libreville, Gabon, and it serves the following
central African countries: Cameroon, Central African Republic, Chad, Congo, Equatorial
Guinea and Gabon
Background:
Upon independence in 1960, the former French
region of Middle Congo became the Republic of
the Congo. A quarter century of
experimentation with Marxism was abandoned in
1990 and a democratically elected government
took office in 1992. A brief civil war in 1997
restored former Marxist President Denis
SASSOU-NGUESSO, and ushered in a period
of ethnic and political unrest. Southern-based
rebel groups agreed to a final peace accord in
March 2003, but the calm is tenuous and
refugees continue to present a humanitarian
crisis. The Republic of Congo was once one of
Africa's largest petroleum producers, but with
declining production it will need new offshore oil
finds to sustain its oil earnings over the long
term.
Government type:
republic
Capital:
name: Brazzaville
time difference: UTC+1 (six hours ahead of
Washington, DC during Standard
Time)Independence:
15 August 1960 (from France)
National holiday:
Independence Day, 15 August (1960)
Constitution:
approved by referendum 20 January 2002
Legal system:
based on French civil law system and
customary law; has not accepted compulsory
ICJ jurisdiction
Suffrage:
18 years of age; universal
Government:
Chief of state: President Denis
SASSOU-Nguesso (since 25 October 1997,
following the civil war in which he toppled
elected president Pascal LISSOUBA); note - the
president is both the chief of state and head of
government
head of government: President Denis
SASSOU-Nguesso (since 25 October 1997);
note - the position of prime minister was
abolished in September 2009
cabinet: Council of Ministers appointed by the
president
elections: president elected by popular vote for
a seven-year term (eligible for a second term);
election last held on 12 July 2009 (next to be
held in 2016)
election results: Denis SASSOU-NGUESSO
reelected president; percent of vote - Denis
SASSOU-NGUESSO 78.6%, Joseph Kignoumbi
Kia MBOUNGOU 7.5%, Nicephore Fylla de
SAINT-EUDES 7%
For names of current Ministers, click here.
Disputes - international:
The location of the boundary in the broad
Congo River with the Democratic Republic of
the Congo is indefinite except in the Pool
Malebo/Stanley Pool area
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
Upon independence in 1960, the former French
region of Middle Congo became the Republic of
the Congo. A quarter century of
experimentation with Marxism was abandoned in
1990 and a democratically elected government
took office in 1992. A brief civil war in 1997
restored former Marxist President Denis
SASSOU-NGUESSO, and ushered in a period
of ethnic and political unrest. Southern-based
rebel groups agreed to a final peace accord in
March 2003, but the calm is tenuous and
refugees continue to present a humanitarian
crisis. The Republic of Congo was once one of
Africa's largest petroleum producers, but with
declining production it will need new offshore oil
finds to sustain its oil earnings over the long
term.
Government type:
republic
Capital:
name: Brazzaville
time difference: UTC+1 (six hours ahead of
Washington, DC during Standard
Time)Independence:
15 August 1960 (from France)
National holiday:
Independence Day, 15 August (1960)
Constitution:
approved by referendum 20 January 2002
Legal system:
based on French civil law system and
customary law; has not accepted compulsory
ICJ jurisdiction
Suffrage:
18 years of age; universal
Government:
Chief of state: President Denis
SASSOU-Nguesso (since 25 October 1997,
following the civil war in which he toppled
elected president Pascal LISSOUBA); note - the
president is both the chief of state and head of
government
head of government: President Denis
SASSOU-Nguesso (since 25 October 1997);
note - the position of prime minister was
abolished in September 2009
cabinet: Council of Ministers appointed by the
president
elections: president elected by popular vote for
a seven-year term (eligible for a second term);
election last held on 12 July 2009 (next to be
held in 2016)
election results: Denis SASSOU-NGUESSO
reelected president; percent of vote - Denis
SASSOU-NGUESSO 78.6%, Joseph Kignoumbi
Kia MBOUNGOU 7.5%, Nicephore Fylla de
SAINT-EUDES 7%
For names of current Ministers, click here.
Disputes - international:
The location of the boundary in the broad
Congo River with the Democratic Republic of
the Congo is indefinite except in the Pool
Malebo/Stanley Pool area
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
| KnowYourCountry |
| Last Updated: 26 September 2011 |
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