Historical profile

With its small population – 3.5 million in 2004 – and varied mineral wealth, Congo should be better placed than most African countries to realise its potential. In fact, on a GDP per capita basis, it is not even in the 10 wealthiest African countries. After three relatively peaceful but coup-ridden decades of independence, the former French colony experienced the first of two destructive bouts of fighting in 1993 when disputed parliamentary elections led to bloody, ethnically-based fighting between pro-government forces and the opposition. A ceasefire agreement followed by the inclusion of some opposition members in the government helped to restore peace, but in 1997 ethnic and political tensions exploded into a full-scale civil war, fuelled in part by the prize of the country's offshore oil wealth, which motivated many of the warlords. The army split along ethnic lines, with most northern officers joining President Denis Sassou-Nguesso who was also backed by Angola, and most southerners backing the rebels. These were supporters of the former president, Pascal Lissouba, who had been deposed by Sassou-Nguesso in 1997. There was a ceasefire in 1999, but rebel remnants, known as Ninjas, are still active in the southern region. Most of the rebels have yet to disarm and many have turned to banditry.

From the fifteenth century, the Bakongo, Bateke and Sanga began settling what is now the Republic of Congo.

1482 Portuguese explorer Diogo Cao mapped the coastline.

1880s The colonisation of what is now Congo began in the late nineteenth century after the French explorer Pierre Savorgnan de Brazza signed a treaty with the Chief of the Batekes to establish a French protectorate over the north bank of the Congo river.

1910 Middle Congo, as the country was then known, became a colony of French Equatorial Africa.

1928 Africans revolted over forced labour which was used to build the Congo railway. More than 17,000 Africans died in the revolt.

1946 Congo was granted a territorial assembly by the French and representation in the French parliament.

1960 Congo became independent with a catholic priest, Abbé Fulbert Youlou, as president.

1963 Alfonse Massamba-Debat became president and Pascal Lissouba became prime minister. The country became a one-party socialist state.

1969 Captain Marien Ngouabi led a coup against Massamba-Debat and became president. The Parti Congolais du Travail (PCT) (Congolese Workers' Party) was declared the only legal political party.

1970 Ngouabi proclaimed Congo a Marxist state.

1977 Ngouabi was assassinated by forces loyal to Massamba-Debat, who in turn was executed for treason. Joachim Yhombi-Opango of the Comité Militaire du Parti (CMP) (Party of the Military Committee) became president.

1979 Colonel Denis Sassou-Nguesso took over the PCT, and remained in power under one-party PCT rule until 1992.

1990 The PCT abandoned Marxism.

1992 A new constitution was approved by referendum. Multi-party legislative elections were won by the Union Panafricaine pour la Démocratie Sociale (UPADS) (Pan-African Union for Social Development), led by Pascal Lissouba. Lissouba was elected president, defeating Sassou-Nguesso.

1993 Political unrest forced new elections, which were won by UPADS. Civil war broke out over disputes over the elections.

1994 A peace agreement saw members of the opposition join the government. The currency was devalued.

1997 Civil war broke out after the government attempted to disarm rebels militia loyal to Sassou-Nguesso. Thousands of people were killed and tens of thousands forced to flee their homes. After several months of fighting the Angolan Army invaded and sided with Sassou-Nguesso who succeeded in overthrowing the government of Pascal Lissouba. Sassou-Nguesso assumed the presidency at the head of the Conseil National de Transition (CNT) (National Transitional Council).

1999 The warring factions signed a peace accord with the government. However, armed conflict continued.

2001 A peace conference proposed a new constitution and 15,000 militia were demobilised through financial incentives. In December, Lissouba was convicted in absentia of treason and corruption and sentenced to 30 years' hard labour. Congo signed a treaty establishing the Gulf of Guinea Commisssion.

2002 The new constitution was endorsed by 80 per cent of the electorate, which strengthen the power of the president. Sassou-Nguesso was elected presiden with almost 90 per cent of the vote after his rivals were either banned from running or withdrew. The legislative election for the new bicameral parliament led to the creation of a pro-Sessou-Nguesso coalition consisting of the PCT, the Forces Démocratiques Unies (FDU) (United Democratic Forces) and a number of independents. Electoral disputes led to intense fighting, which reached Brazzaville, between government forces and the rebels in the south, loyal to former prime minister Bernard Kolelas. An agreement on power-sharing was reached between the government and two main rebel groups, but fighting continued in the east.

2003 All parties signed a peace agreement ending the civil war. A new constitution was adopted paving the way for elections.

2004 The Congo, which was held responsible for large-scale diamond smuggling from the Democratic Republic of Congo, was expelled from the Kimberley Process Certification Scheme, when it was unable to explain why its exports outstripped its production and severely limited the Congo's exports of diamonds.

2005 On 7 January, the president appointed his close ally, Isidore Mvouba, as prime minister and caused a wave of criticism, as the constitution does not allow for presidential appointees. Floods and mudslides, caused by heavy rains in December, left thousands of people without shelter in the capital, Brazzaville. Bernard Kolelas was given an amnesty and allowed to return home after eight years in exile.

2006 Congo was chosen as the year's leader of the African Union, after Sudan withdrew its candidacy amid diplomatic concern about its human rights record. In November, after weeks of soaking rains at least 5,000 Brazzaville residents were homeless through landslides and flood damage or buildings that had been swept away.

Political structure

A new constitution was agreed in April 2001 and endorsed by referendum in 2002. As a result the power of the president was increased.

Republic

Executive authority is vested in the directly elected president, who serves a seven-year term.

Parliament consists of the Assemblée Nationale (national assembly) with 137 members and Sénat (senate) with 66 members, both elected by popular vote. Parliament does not have the power to impeach the president.

Based on the French civil, and traditional customary law

10 March 2002 (presidential); 24 June/5 August 2007 (parliamentary).

Presidential: Denis Sassou-Nguesso was elected with 89.4 per cent of the vote, Joseph Kignoumbi Kia Mboungou 2.7 per cent.

Parliamentary: (national assembly, first and second round) PCT won a total 44 seats (out of 137); Union Panafricaine pour la Démocratie Sociale (UPDS) (Pan-African Union for Social Development) 10; Mouvement Congolais pour la Démocratie et la Développement Integral (MCDDI) (Congolese Movement for Democracy and Integral Development) 12; Union pour la Démocratie et la République-Mwinda (UDR-Mwinda) (Union for Democracy and Republic-Mwinda) 1; PCT allies 52 (unspecified); (two seats uncontested, elections yet to be announced. Turnout was between 40–50 per cent.

2009 (presidential).

Political parties

Coalition of Parti Congolais du Travail (PCT) (Congolese Labour Party), and its allies (since 2002; re-elected Aug 2007)

Union pour la Démocratie et la République-Mwinda (UDR-Mwinda) (Union for Democracy and Republic-Mwinda); Union Panafricaine pour la Démocratie Sociale (UPDS) (Pan-African Union for Social Development).

Population

3.92 million (2005)

June 1996: 2,600,000 (provisional)

Population

Seventy per cent of the population lived below the national poverty line in 1995–2001.

Two-thirds live within 510km of the Congo–Océan Railway, which links Pointe-Noire on the Atlantic coast with Brazzaville, the national capital, in the interior. The government is anxious to discourage the present urban drift.

Kongo (48 per cent), Sangha (17 per cent), Teke (17 per cent).

Traditional beliefs (over 50 per cent), Christianity (about 40 per cent, mainly Roman Catholic, some Protestant).

Education

Primary education is followed by seven years of secondary school which is divided into a four-year first cycle (ages 12 to 16) and a three-year second cycle (ages 16 to 19). In the second cycle, students can opt between general or technical education. Higher education is provided by the Université Marien-Ngouabi, which is largely state subsidised. It has a yearly enrolment of about 12,000 students.

Public expenditure on education typically amounts to 6 per cent of annual gross national income.

Health

Per capita total expenditure on health (2003) was US$23; of which per capita government spending was US$15, at the international dollar rate, (WHO 2006).

In February 2004 a measles epidemics broke out in remote regions of northern Congo due to 'weak vaccination coverage' in earlier programmes and it was expected that, without a thorough immunisation campaign, measles would continue to return in two- to three-year cycles.

Pneumonic plague broke out in February 2005 in the north-east killing over 60 people and prompted control teams to be sent by international medical agencies to treat the victims. Many locals had fled the area and raised the fear of the infection spreading.

Welfare

The World Food Programme (WFP) in 2004 appealed for US$1.5 million, warning that without the necessary funding, food aid to vulnerable people would have to be reduced or entirely cut.

In moves to encourage full cessation following the peace agreement of 2003, international donors have contributed over US$900,000 to projects set up to reintegrate demobilised soldiers into society. These projects were a second phase, the first built on credit offered by the World Bank of US$5 million.

Main cities

Brazzaville (political capital, estimated population 1.1 million in 2005), Pointe-Noire (economic capital, 630,883), Loubomo (114,869), Jacob (56,175).

Languages spoken

French is used for all business documentation. Numerous African languages are also spoken, including Lingala and Kikongo.

French

Media

Main newspapers include Semaine Africaine (Catholic), the government-owned Mweti (four times a week), Agence Congolaise d'Information (official bulletin), Soleil, La Madu Kutsekele, Le Pays, Choc and Aujourd'hui. Several journals and periodicals, including Etumba and Le Stade.

Radio and television are state-run. The fighting in the country has affected the communications, and radio and television can only be received in Brazzaville and environs (February 2000).

Radiodiffusion-Télévision Nationale Congolaise broadcasts programmes in French, Lingala and Kikongo.

Broadcasts 80 hrs/week.

Economy

The civil war in Congo left a legacy of widespread damage to essential infrastructure and living standards. The peace deal signed in 2001 gave the economy a much needed break from the devastation and encouraged international financial institutions, led by the IMF, to aid recovery through economic means.

Congo is attempting to strengthen its medium-term macroeconomic and financial framework in order to achieve steady growth and reduce its levels of poverty. The government's main fiscal policy is to increase revenue to pay for the post-war reconstruction and meet IMF targets. On-going plans aim to increase the amount of foreign investment. World Bank donors have pledged up to US$3.9 billion, with around three-quarters of this sum being invested in the transportation system. Improvements to the roads and mass transit could further encourage foreign investment. The government will have to broaden the tax base and improve revenue collection.

The oil industry is the powerhouse of the economy, generating around 50 per cent of GDP. Congo has benefited from the rise in world oil prices in recent years. Oil revenue accounts for around 90 per cent of export earnings. Oil production, which had fallen sharply in 2003, began to recover in 2005 in response to the higher prices and is expected to continue to rise as new fields are developed.

The agricultural sector, including forestry, is the country's largest employer. Subsistence farming does not produce enough food to feed the population. About half the area of forest is exploitable for commercial logging, while only 5 per cent remains protected from development

Although Congo's economic performance has improved steadily since the end of the civil war, it has been unable to alleviate problems of poverty and underdevelopment. The IMF has advised that any windfalls from high oil prices should be spent on poverty-related problems (such as basic health and education) and domestic and international debt repayment.

GDP growth more than doubled in 2005 to 9.2 per cent and should continue to improve under President Sassou-Nguesso's Nouvelle Espérance (New Hope) economic programme, which is scheduled to run from 2003–10.

External trade

As a member of the Central African Economic and Monetary Community (Cemac) and the Economic Community of Central African States (ECCAS) the Republic of Congo operates within a common financial, regulatory, and legal structure, and maintains a common external tariff on imports from non-Cemac countries. While free movement of capital had been achieved, full implementation of free trade within the grouping in 2007 had not been achieved.

There is a regular large trade surplus from oil export earnings, but invisibles and debt payments keep the current account in deficit.

Principal imports manufacturing equipment, construction materials and foodstuffs.

France (25.6 per cent total, 2005) , China (11.3 per cent), US (8.1 per cent), India (8.0 per cent), Italy (7.5 per cent), Belgium (5.1 per cent), The Netherlands (4.2 per cent)

Principal exports are petroleum, timber, plywood, sugar, cocoa, coffee and diamonds.

China (38.9 per cent total, 2005), US (29.0 per cent), Taiwan (11.8 per cent), South Korea (7.2 per cent)

Agriculture

The agricultural sector contributes around 25 per cent of GDP and employs a third of the workforce. Agriculture has been overshadowed by development of the petroleum industry.

Approximately a third of the total land area is given over to agriculture, of that almost all is pasture land. Only an estimated 2 per cent of the total land area is under cultivation (mainly in the alluvial Niari Valley). Farming is small-scale with output concentrated on subsistence crops such as plantains, cassava, yams, groundnuts, manioc, potatoes, wheat, maize, beans and paddy rice. Despite some growth in food production, Congo relies heavily on food imports.

The main cash crops are coffee, cocoa, tobacco and sugar. Attempts to expand production of other cash crops include the rehabilitation of oil palm estates and a major new cocoa project.

Estimated crop production in 2005 included 880,800 tonnes (t) cassava, 7,200t maize, 4,800t potatoes, 6,000t sweet potatoes, 12,000t yams, 90,000t oil palm fruit, 1,500t rice, 88,000t bananas, 73,000t plantains, 9,300t pulses, 940,800t roots and tubers, 90,000t oil palm fruit, 6,200t avocados, 10,700t citrus fruit, 25,000t mangoes, 3,200t tomatoes, 3,300t pineapples, 26,919t oilcrops, 100t tobacco, 1,260t cocoa beans, 1,700t green coffee, 4,000t coconuts, 460,000t sugar cane, 1,350t natural rubber, 229,200t fruit in total, 41,555t vegetables in total. Livestock production included: 30,423t meat in total, 20,000t game meat, 2,028t beef, 2,072t pig meat, 340t lamb, 783t goat meat, 5,200t poultry, 1,185t eggs, 1,100t milk.

Fishing is underdeveloped but is practised commercially on a small scale.

In 2004, the total marine fish catch was 16,758 tonnes and the total crustacean catch was 808 tonnes.

The main agricultural export is timber, mostly Okoumé logs (of which Congo is a major world supplier). About half the total timber output is used for wood processing. Approximately 60 per cent of the country is covered by woodlands and forests, much of it unsuitable for commercial exploitation. There are large eucalyptus (fast growing) plantations near Pointe-Noire.

Timber imports in 2004 were US$5.1 million, while exports amounted to US$218.9 million.

Production in 2004 included 2,115,361 cubic metres (cum) roundwood, 896,000cum industrial roundwood, 157,000cum sawnwood, 165,000cum sawlogs and veneers, 361,000cum pulpwood, 36,000cum wood-based panels, 21,000cum veneer sheets, 1,219,361cum wood fuel, 3,018t charcoal.

Industry and manufacturing

The industrial sector contributes over 10 per cent to GDP and employs a fifth of the workforce. The manufacturing sector is largely underdeveloped, contributing less than 5 per cent to GDP. Construction contributes a further 5 per cent, although this figure could grow rapidly, particularly in the repair of the damaged infrastructure, if political stability remains calm and reconstruction efforts are sustained.

Most manufacturing enterprises operate in the Brazzaville and Pointe-Noire districts and in the Niari Valley. Activity is centred on agri-food and timber processing, textiles and oil refining.

There are also a few small-scale import substitution industries (footwear, soft drinks, metal working, chemicals) and a cement plant.

Structure and ownership of parastatals is being reformed and the privatisation programme is expected to be renewed after years of delay. Emphasis is on joint-venture enterprises, particularly in pulp/paper and light manufacturing.

Tourism

The tourist industry had great potential for eco-tourism, but until peace can by assured foreign governments continue to advise strongly that their citizens do not visit Congo unless absolutely necessary.

Mining

Congo has significant deposits of magnesium, gold, diamonds, cement, potash and salt. Commercial exploitation of these deposits was either damaged by the civil war or have yet to be developed.

In July 2004, Congo was expelled from the Kimberley Process, set up to curb the trade in ‘conflict diamonds’, when the Congo could not account for the discrepancy between reported production and its exports of rough diamonds. As these diamonds are mined mostly by artisans the government claimed it was unable to confirm production, or curb smuggling along its uncontrolled borders. The ban on Congo diamonds effectively suspended legal exports of diamonds.

Gold production from the Yangadou Mine experienced technical problems and production has only amounted to 4kg per month since it opened in 2003, instead of the 1,500kg as expected.

A major magnesium processing plant at Kouilou could have a significant role in the economy when it is up and running. The plan, by Canada's MagIndustries Corporation (MagMetals), is to construct a 72,000 tonnes per annum (tpa) smelter of the local magnesium salt deposits and produce 60,000tpa of magnesium alloy. However, by the beginning of 2005 the project was still awaiting financial backing.

As a by-product of the magnesium mining MagMetals also proposes to exploit the potash and salt deposits found in the locale, with a 300,000tpa potash fertiliser plant and 400,000tpa salt plant.

Hydrocarbons

Congo is sub-Saharan Africa's fifth largest oil producer with proven reserves of 1.5 billion barrels. Oil production had exceeded the 2005 production of 93 million barrels by 8.5 per cent by August 2006. New fields – Libondo, Tchibeli, Litanzi and Yanga-Sud – have boosted output since 2004. Western Europe and North America are Congo's predominant markets although there is hope of future expansion into Asian Markets.

France’s TotalFina has the dominant role in oil production in the Congo, although it has lost its monopoly status as other foreign companies, especially Italy’s Agip have begun investing in the country’s petroleum industry.

The Congo has, as yet, no refining capacity and limited port facilities, which will hamper future growth in the short- to medium-term.

In 2004, natural gas reserves stood at around 90.4 billion cubic metres, most of which is oil-associated. A lack of infrastructure and investment means that most gas is vented or flared. The new 25MW gas plant in Djeno utilises gas for electricity production for supply to the Pointe Noire area.

Congo does not produce or import coal.

Energy

Installed generating capacity is 89MW, although generating potential is estimated at 3,000MW. Most electricity is produced by the 74MW Bouenza and the 15MW Djoué hydroelectric plants. Around a quarter of the country's electricity requirements are imported from the Democratic Republic of Congo (DRC). The development of the postponed US$925 million Sounda Gorge hydroelectric project could increase capacity by 1,000MW and turn the country into a net electricity exporter.

Consumption is low as most rural inhabitants rely on wood fuel as a primary source of power.

The power infrastructure is in need of repairs and upgrading. The Congo and two Chinese companies signed a US$220 million contract to build a 120MW hydroelectric power plant on the Congo River and when completed in 2006, it is expected to double Congo's power generating capacity.

Banking and insurance

In 2004 the banking system was considered fragile by the IMF, with credit growth limited by the lack of viable projects and a reluctance by banks to make loans as loan recovery is problematic. Of the four domestic banks two have been classified as in good condition and two in either a fragile or critical condition and in need of restructuring.

Banque des Etats de l'Afrique Centrale

Brazzaville