Invest in the Republic of the Congo
The economy of the Republic of Congo has suffered a severe decline since the drop of the prices of oil in 2014. A situation that worsened due to the effects of the pandemic and brought the country to the brink of insolvency. To resolve the situation, measures to diversify the sources of revenue, along with investments in the infrastructure, were taken resulting into a considerable improvement of the conditions.
The oil business still remains a source of 60% of the total annual revenues. The remaining 40% is derived from the agriculture, forestry, iron ore, deposits of potash, while there’s a significant increase of the economic activities in telecommunications, construction and banking. However, 90% of all foreign investments is directed towards the oil industry, even though the general environment welcomes every kind of inflow.
Speaking of the environment, what possible investors should now, is:
1) Foreign entities can create and own businesses without limitations or control.
2) Investments on oil must be conducted through a venture with the Congolese National Petroleum Company.
3) Any parties interested in investing must first go through the procedures dictated by the Agency for Business Creation (ACPCE).
4) Investments on forestry must process 85% of timber domestically and export finished products.
5) The Congolese Commercial Court has first degree jurisdiction over all disputes that involve foreign investors. A second degree is afforded by the OHADA (Organization for the Harmonization of Business Law in Africa) court which has authority over all countries of Francophone Africa.
6) There have been bilateral commerce treaties signed with the United States, France, China, Germany, Mauritius, the Republic of Korea, Switzerland, the United Kingdom and Italy, so if you are a citizen of these countries and wish to invest, you may want to consult their provisions first.
7) There are incentives in place that promote the re-investment of profits in the Republic of Congo, along with incentives to invest in doing business in areas either remote or where access is limited. There is also special interest in inflows for cultural and social development.