Research and consulting in Republic of the Congo
IOA has earned its expertise on the Republic of Congo through years of in-depth research and wide-ranging consulting projects. Half the country’s population live in two cities, Brazzaville and Pointe-Noire, which IOA analysts note is a key factor allowing for targeted investment and making development projects easier to implement. However, the oil sector accounts for two-thirds of GDP and is vulnerable to world oil price fluctuations.
The government sought to get its economic house in order, with the result that fiscal consolidation combined with stronger oil revenues led to a budget surplus in 2022 and should lead to budget surpluses of 3% of GDP in 2023. The industrial sector is almost entirely tied to oil, while three-quarters of labour force survives on subsistence farming or low-paying agricultural work in forestry.
Key opportunities in the Republic of Congo:
- The oil sector is well-developed
- Commercial and industrial-scale agriculture can thrive with investment
- Government’s sound fiscal management has resulted in budget surpluses
Key concerns/risks in the Republic of Congo:
- While considerable mineral resources have been located, these have not been significantly mined, requiring large start-up investment in infrastructure, etc.
- The average worker’s income is insufficient to sustain a family
- The economy based on export of raw commodities is hostage to global commodities price fluctuations beyond its control