Research and consulting in Central African Republic
Country overview:
IOA has earned its understanding of the Central African Republic by conducting a wide range of research and offering consulting services on the country. IOA researchers have acknowledged the country’s extensive mineral resources but have concluded these have done little or nothing to eradicate wide-spread poverty and have contributed to the country’s political difficulties, while competing powers (domestic and external) battle for land and political control.
IOA economists have also noted that, although the country’s economy slowed due to the Covid-19 pandemic and global recession, recovery has been hindered by the country’s cycle of violence, poor infrastructure and a lack of basic services. These prevent full and equitable exploitation of its mineral resources and hinder conversion of agriculture from subsistence farming to commercial production.
Key opportunities in Central African Republic:
- Of the 470 minerals existing in the country, IOA analysts have identified diamonds, gold and oil as having the greatest investment potential
- Forestry is the backbone of the current economy
- A largely rural population requires investors to supply a modern ICT system for communication and services
Key concerns/risks in Central African Republic:
- The country is beset by ethnic, religious and regional rivalries. Security risks are a persistent challenge
- Major local foresters have in the past been associated with illegal logging, money laundering and terrorist financing, which poses compliance risks
- The lack of basic infrastructure makes communication and transportation difficult
Tips on doing business in Central African Republic:
Starting a business:
- Like other Francophone states in Africa, the CAR provides four distinct types of business entities – LLC’s, PLC’s Branch Offices and Rep companies
- Under the Companies Law, foreign entities can establish local branch entities, operated by a representative who may be of any nationality
Doing business:
- Business in the country has picked up somewhat since the end of the 2013 civil war but remains muted. Though the country has enormous potential in natural resources, much of this wealth is owned by armed groups who operate illicitly and beyond the remit of the formal economy
- While pro-business policies are in place, including tax incentive schemes, the business climate will greatly depend on the durability of the country’s peace process
Culture and society:
- Due to the country’s instability, foreigners should exercise significant caution and prioritise their physical safety. Armed groups hold sway over much of the country outside of the capital, posing a high risk of kidnappings, extortion or violent robbery. The northeastern reaches of the country are primarily Muslim and care should be taken to avoid causing religious offense in these areas.
(Read more at: https://www.gov.uk/foreign-travel-advice/central-african-republic)
A sample IOA research report on Central African Republic: