
Research and consulting in Republic of the Congo
Country overview:
IOA has built its expertise on the Republic of Congo through extensive research and diverse consulting projects over the years. With half of the country’s population residing in just two cities – Brazzaville and Pointe-Noire – IOA analysts noted that this concentration allows for more targeted investments and facilitates the implementation of development initiatives. However, the country’s economy is heavily reliant on oil, which contributes two-thirds of the GDP, leaving it vulnerable to global oil price fluctuations.
In an effort to stabilise the economy, the government focused on fiscal consolidation, which, combined with rising oil revenues, resulted in a budget surplus in 2022. Projections suggested continued surpluses of 3% of GDP by 2024. The industrial sector is almost entirely dependent on oil, while three-quarters of the labour force depends on subsistence farming or low-wage agricultural work, particularly in forestry.
Key opportunities in the Republic of Congo:
- The oil sector is highly developed, and the country is home to some of the world’s largest iron and potash deposits
- There is significant potential for commercial and industrial-scale agriculture to expand and thrive
- Government’s strong fiscal management has resulted in budget surpluses, enhancing economic stability
Key concerns/risks in the Republic of Congo:
- Despite vast mineral resources, significant mining activities are yet to begin, necessitating substantial initial investments in infrastructure and related developments
- Widespread poverty persists, driven in part by low wages for workers
- The economy’s heavy reliance on exporting raw commodities leaves it highly vulnerable to unpredictable global price fluctuations
Tips on doing business in the Republic of the Congo:
Starting a business:
- The Republic of Congo is generally liberal to foreign business and property ownership. There are few legal restrictions, allowing foreigners to own or rent properties. This has supported the growth of a small luxury real estate market in Pointe-Noire
- Commencing the business registration process can be done through physically visiting the relevant Guichet Unique (one stop shop) at the Congolese Agency for Business Creation (ACPCE) offices in Brazzaville, Pointe Noire and several other cities
Doing business:
- Local authorities provide various incentives to investors, depending on the industry and the size of the project. These include benefits for export-focused ventures and investments in landlocked areas
- Both local and foreign headquartered companies are subjected to one of three tax regimes: the most common, Regimes S and G, apply to businesses investing below or above XAF 100 million (US$ 160,000), while the third category, the preferential development zone regime is reserved for firms investing in one of the country’s four special economic zones
- Brazzaville’s close proximity to Kinshasa, combined with the shared COMESA common market framework, facilitates seamless export opportunities to the Democratic Republic of Congo (DRC)
(Read more at: https://apicongo.cg/sept_raisons_investir_au_congo.php?lang=fr)
Culture and society:
- French is the primary language for business and commerce, so foreign visitors who are not fluent should consider hiring an interpreter
- While standard etiquette is observed, the country places greater importance on building interpersonal relationships between business partners than is often seen in less developed markets
- Public displays of affection between romantic partners are generally frowned upon, as are visible tattoos. It is also advisable to avoid discussing politics and ethnicity in conversations
A sample IOA research report on the Republic of Congo: