Republic of the Congo WT/TPR/S/169
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IV. TRADE POLICY AND PRACTICE BY SECTOR 
(1) INTRODUCTION  
1. The Congo's economy is largely based on exploi tation of the country's natural resources, 
particularly petroleum, which is expected to achie ve record output of 250,000 barrels/day in 2006, 
generating substantial revenue  in view of the record levels reached in global prices for crude oil.  
Since 2001, the State has reorganized activities downs tream of the petroleum subsector in order to 
privatize some and introduce competition into the ma rketing and distribution of petroleum products.  
The subsector nevertheless remains under State control and is highly regulated. 
2. In order to diversify the basis of its economy,  the interim Poverty Reduction Strategy Paper 
(I-PRSP) is counting on real growth of some 5.3 per cent annually over th e period 2004-2006 in the 
non-traditional sector (all non-petroleum activities) , including agriculture (encompassing livestock, 
fishing, forestry), and in the mining sector.  The forestry subsector is still the non-traditional activity 
favoured by foreign investors;  in 2004, it attr acted around one half of the total amount of new 
projects approved under the Investment Charter.  Ne vertheless, in general, forestry enterprises have 
been unable to achieve the goal of processing 85 per cent of their logging output, imposed by the 
authorities with the aim of processing a large amount of timber on the spot prior to export.  According 
to the International Tropical Timber Organization (I TTO), the Forestry Code adopted by the Congo in 
2000 provides the basis for sustainable forestry mana gement and the Congo would appear to be one of 
the first countries in the world to do this. 
3. The manufacturing sector is still in the early stag es and is mainly composed of enterprises in 
the agri-food branch producing for the domestic ma rket.  The only export is refined sugar to the 
subregion and under quotas to the European Union (EU)  and the United States of  America.  The sugar 
branch will therefore have to be reorganized in the li ght of the EU's reform of the sugar regime as of 
1 July 2006.  SARIS-Congo, the only company producing sugar in the Congo, has a monopoly of sugar marketing and is protected from competition through a series of measures.  Consumer products 
such as mineral water and wheat flour are relativel y protected through tariff and non-tariff measures. 
4. Inefficiency and the high cost of basic inputs are some of the problems facing companies in 
the Congo.  Despite the country's potential, water,  electricity, banking, fixed telecommunications and 
transport services are difficult to access and are often extremely costly.  The introduction of an efficient land transport network (by road or rail) between Brazzaville and the port at Pointe-Noire 
remains a priority in order to catalyze industry.  In  general, the State still plays a major role in the 
supply of inputs, which no doubt explains the li mited nature of the Congo's commitments under the 
WTO's General Agreement on Trade in Services (only tourism services). 
(2) A
GRICULTURE , LIVESTOCK , FISHING AND FORESTRY  
(i) Overview1 
5. The Congo covers an area of 342,000 km2, of which 60 per cent is forest and 40 per cent 
savannah.  It comprises 11 administrative depa rtments:  Likouala;  Sa ngha;  Cuvette-ouest;  
                                                      
1 The majority of the information has been supplie d by the Congolese authorities.  The documents are 
the following, inter alia :  Government of the Congo, Ministry of Agriculture and Livestock (2001a);  
Government of the Congo, Ministry of Agriculture and Livestock (2001b);  Government of the Congo (2000);  
Republic of the Congo, National Poverty Reduction Committee (2004).  The following documents were also 
consulted:  Pointe-Noire Chamber of Commerce, I ndustry, Agriculture and Crafts (CCIAM) (2004);  
Government of the Congo (2005). WT/TPR/S/169 Trade Policy Review 
Page 48 
 
 
Cuvette-centrale;  Plateaux;  Lekoumou;  Niari;  K ouilou;  Bouendza;  Brazzaville;  and Pool.  The 
soil is hydromorphic in the Congolese Basin and ferralitic in the rest of the country.  In general, the soil is highly fragile, acid and sensitive to wind and/or  water erosion.  The Congo has relatively large 
fisheries resources.  Its coastline extends for 180 km  and its exclusive econom ic zone (EEZ) covers 
90,000 km
2.  The Congo also has a continental plateau of 10,000 km2.  There is abundant rainfall and 
one of the main features of its relief is a very la rge hydrographic network.  The two rivers, the Congo 
and the Oubangui, can be navigated as far as the Central African Republic. 
6. The agricultural sector's share of GDP (includi ng livestock, fishing and forestry) is quite 
small (Table I.1).  The main reason is the size of the petroleum subsector in the Congo's economy 
(section (3)(ii)), as well as the decline of the rura l sector following the mass exodus of the population 
to the cities and the disruption of the production structure during the period of political instability (Chapter II(1)(i)).  Consequently, the Congo's popula tion is currently highly urbanized and is thus 
relatively far from the centres of ag ricultural production.  Agriculture  is the main source of income 
and jobs for around one third of the population.  B ecause of transport problems in the interior 
(section (5)(i)), however, the main source of the urban population's food supplies is imports. 
7. Agriculture employs around 300,000 people on some  75,000 farms.  The total cultivated area 
is around 200,000 hectares (2 per cent of the 10 m illion hectares suitable for agriculture), giving an 
average area of 2.7 hectares per farm.  The farms mainly produce crops and livestock breeding is little 
developed.  There are three main types of farm ing:  traditional farming (81 per cent of the area 
cultivated);  semi-urban sedentary farming;  an d State farms and ranches (sugar cane, cassava, oil 
palms), the majority of which are included in th e privatization programme.  Traditional crop-growing 
practices are followed and there is little use of modern production inputs (agricultural machinery, 
selected/improved seeds, irrigation, fertilizers, pes ticides).  Cassava is the major food crop, followed 
by plantains, fruit and vegetables. 
8. In 2006, the Congolese livestock population was as follows:  74,000 head of cattle;  
48,000 sheep;  80,000 goats;  25,000 pigs;  580,000 poultry. 
9. Despite its immense ag ricultural potential, the Congo is not self-sufficient in most food 
products, with the exception of sugar;  food produc ts therefore make up the majority of imports, 
accounting for around 20 per cent of the total in  2004 (Table I.5).  They are composed, inter alia , of 
rice, wheat and wheat flour, meat and slaughtered pou ltry, milk and dairy products and fish.  There 
are few exports of food products and since the co ffee and cocoa plantations were abandoned in 1997 
because of the insecurity, these have mainly consisted of sugar. 
(ii) Agricultural policy 
10. The agricultural sector (including livestock, fishing and forestry) is called on to become one 
of the Congo's engines of growth according to the I-PRSP.  The agricultural sector has considerable 
advantages, for example, the extent of arable la nd and abundant rainfall, s ubstantial water resources 
and the availability of a larger labour force following the country's political stabilization 
(Chapter II(1)).  Exploitation of the Congo's fisherie s and forestry resources is the subject of special 
policies (section (iii)(b) and (c)).  Development of the rural sector also requires the upgrading of the 
transport infrastructure (section (5)(i)). 
11. With the support of the FAO and the UNDP, th e Congo updated its agricultural development 
strategy in 2003;  the new stra tegy covers the period 2004-2013.
2  The main constraints on 
development of the agricultural sector identified by the authorities in the process of updating the 
                                                      
2 Government of the Congo, Ministry of Agriculture, Livestock and Fisheries (2003). Republic of the Congo WT/TPR/S/169
Page 49 
 
 
strategy (and still valid) are the follo wing:  the isolation of the interior  because of the lack of properly 
maintained highways and rural ro ads;  an unfavourable institu tional and economic environment;  
insufficient private initiatives and resources (particular ly financial resources) available to the private 
sector;  the lack of financial and technical capac ity among farmers;  domestic production's failure to 
adapt to consumers' tastes;  the destruction of equipment and archives in support institutions during 
the civil wars;  the suspension of back-up and suppor t projects during the hostilities;  inefficient back-
up and support services;  failure to adapt ag ricultural teaching programmes to current rural 
development requirements;  the low productivity of  farmers' production methods;  the absence of any 
policy to promote domestic production and protect it against competition from imports;  inadequate 
processing capacity in rural areas because of lack of electricity and appropriate technology;  the 
modest amount of financing available to the agri cultural sector;  and the inappropriate taxation and 
customs policy, which increases the cost of inpu ts (day-old chicks, fertilizer, seeds, etc.) and 
agricultural machinery. 
12. Generally speaking, the objectives of ag ricultural development strategies are, inter alia :  to 
reduce imports of food products;  to increase the agricultural sector's contribution to GDP by three 
percentage points (Table I.1);  to redefine the State' s role in the light of its objective of withdrawing 
from production;  to enhance the legal and regulator y environment;  to promote the integration of 
branches in the sector and to support action by wo men to assist modernization of the sector through 
training, awareness-raising and promotion of women's groups. 
13. The Ministry of Agriculture, Fisheries and Li vestock is the leading government structure 
active in the sector.  The Ministry of the Environmen t also plays a role in supporting the agricultural 
sector, under the National Environmental Action Plan, drawn up in accordance with the 1991 Environment Law.
3  Farmers are, for the most part, organized  in associations (related to the products 
they grow) at the departmental level. 
14. The principal support measures for farmers ar e:  exemption from the business licence fee4;  
exemption from personal income tax (IRPP) for those with income under CFAF 265,0005;  
distribution (free of charge) of experimental seeds by the authorities (rice, cassava, maize, groundnuts, 
potatoes);  exemption from duties and taxes on agricultural inputs and machinery during the period 2003-2006 (Chapter III(2)(iv));  and various investment s in developing the rural sector (including the 
repair of rural roads).  Agri-food companies ma y receive subsidies under the National Investment 
Charter (Chapter II(5)).  In 2001, with the support of the FAO and the Republic of Viet Nam, the 
Government drafted and implemented a special  food security programme (PSSA), whose main 
components are control of water supplies and expa nsion of agricultural production, fishing and 
livestock breeding. 
15. Using the ISIC definition, the simple average of tariffs a pplied on agricultural products 
(including livestock, fisheries and forestry produc ts) is 23.7 per cent (Table AIV.1), above the global 
average of 18.7 per cent.  The mixed escalation of  the tariff on agricultural products should also be 
noted, caused by the relatively strong protectio n given to unprocessed agricultural products 
(Chapter III(2)(iv)(a)).  The tariff structure affects the competitiveness of Congolese products, 
especially processed agricultural products.  Internal  taxes are also imposed on agricultural products 
(Chapter III(2)(iv)(b)). 
16. Staple foods (for example, sugar, wheat flour, rice, salted or smoked fish) require an import 
licence (Chapter III(2)(v)) and approval of their cei ling prices (Chapter III(4)(ii)), with the aim of 
                                                     
 
3 Law No. 3-91 of 23 April 1991. 
4 Article 279 of the General Tax Code. 
5 Article 95 of the General Tax Code. WT/TPR/S/169 Trade Policy Review 
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controlling supplies and prices on the domestic market .  In principle, sugar may not be imported 
(section (2)(iii)(a)) and imports of wheat flour are subject to a quota of 12,000 tonnes per quarter 
(Chapter III(3)(v)).  Agricultural products (includi ng food) may also be subject to sanitary and 
phytosanitary measures such as a ban on importing live animals and of the avian species products 
derived therefrom (Chapter IV(2)(vi)). 
(iii) Policy by subsector 
(a) Sugar 
17. The sugar subsector is organized around the Société agricole de raffi nage industriel du sucre - 
SARIS-Congo (Agricultural Company for the Industrial Refining of Sugar).6  This company is an 
agro-industrial sugar complex comprising sugar cane plantations and a plant for raw sugar production 
and refining in Nkayi in the south-west of the country.  SARIS-Congo is the only sugar producer in 
the Congo and has a monopoly of its marketing in the country.  Although some of its production facilities were destroyed during the armed conf licts, SARIS-Congo resume d sugar production in 
1999, with some 65,000 tonnes of sugar produced in 2005, sold on the domestic market (20,000 tonnes) and the subregional market (25,000 tonnes), as well as on the markets of the EU 
(13,000 tonnes) and the United States (7,258 tonnes) under preferential tariff quotas. 
18. SARIS-Congo's earnings from sugar exports could, therefore, fall as a result of the reform of 
the EU's sugar regime, which will come into  effect as of 1 July 2006 (Chapter II(3)(i)).
7  Following 
this reform, the minimum sugar price on the EU market, which is three times that on the global 
market, could fall by 36 per cent over four years.   Exporters in ACP countries who experience 
problems in this new situation will, however, be eligible for financial s upport to facilitate their 
modernization, adaptation or diversification, amoun ting to a total (allocated by the EU) of €40 million 
in 2006, and this will open up the path to other forms of support.8 
19. According to the company SARIS-Congo, reform  on the American and EU markets will cut 
its turnover by around one third.  The restructurin g plan for the company will cost shareholders 
CFAF 13.3 billion and should allow the company to develop its plantations, build up its storage 
capacity and sell a larger part of its output on the CEMAC market.9  In addition to State participation 
in implementing this plan, SARIS-Congo has been  approved under the G regime of the National 
Investment Charter (Chapter II(4)(i)) and will be gi ven preferential tariff quotas for sugar on the EU 
and the United States markets (Chapter III(3)(iii)). 
20. Imports of refined sugar (made from sugar can e) are among the most protected agricultural 
products in the Congo.  In addition to customs dut y of 30 per cent, there is also a ban on importing 
refined sugar, with the possibility of obtaini ng an import licence in the event of shortages 
(Chapter III(2)(v));  the product is also subject to approval of a ceiling price (Chapter III(4)(ii)).  
Since 1999, SARIS-Congo has produced enough sugar to supply the domestic market;  imports were 
indeed prohibited during this period. 
                                                      
6 SOMDIAA holds 66 per cent of its capital and the remainder is held by the Congolese State. 
7 "Council Regulation (EC) No. 318/2006 of 20 February 2006 on the common organisation of the 
markets in the sugar sector".  See European Commission press release "CAP reform:  EU agriculture ministers 
adopt ground-breaking sugar reform", IP/06/194 of 20 February 2006. 
8 European Commission press release, "EU radically reforms its sugar sector to give producers long-
term competitive future", IP/05/1473 of 24 November 2005. 
9 Establishment agreement between the Republic  of the Congo and the company SARIS-Congo, 
24 March 2005. Republic of the Congo WT/TPR/S/169
Page 51 
 
 
21. Refined sugar is almost the only food product exported by the Congo;  it is the third most 
important export, way below oil and timber (Table I. 5).  The volume of exports  has increased steadily 
since domestic production resumed in 1999. 
(b) Fishing10 
22. Sea fishing in the Congo is mainly small-scale or industrial (out of the Pointe-Noire port), and 
fishing in inland waters is only on a small scale.  The fish caught near consumption centres is sold 
fresh, whereas in the interior it is processed on th e spot because there are no conservation facilities, 
either by smoking or by salting and drying.  Fish farming, exploiting Tilapia, is in its early stages. 
23. In 2004, annual catches were estimated to be 55,000 tonnes, of which 85 per cent came from 
small-scale fishing at sea or inland (Table IV.1).  Domestic production is not enough for consumption, 
which is around 70,000 tonnes (25-26 kg. per inhabitant /year and 60 per cent of the intake of proteins 
of animal origin), and domestic needs are partly cove red by imports of fish in frozen form (70 per cent 
of imports) or salted (30 per cent).  According to the FAO, the potential annual catch is 70,000 to 100,000 tonnes. 
24. Since the introduction of its regulatory framework in 2000
11, fishing at sea has required an 
annual fishing licence granted by the Ministry of Ag riculture, Livestock and Fisheries.  The licences 
are subject to payment of fees depending on th e vessel's autonomy.  Information on catches is 
collected with the aim of managing fisheries resources.  The Congo has not signed any fishing 
agreement with any country.  Nevertheless, foreign ma y be authorized to fish in the Congo's territorial 
waters;  because of lack of resources, these are not  closely monitored.  The average level of tariff 
protection in the fishing subsector is 24.8 per cent, with rates ranging from 10 to 30 per cent 
(Table AIV.1).  
Table IV.1 
Fisheries production, 1999-2004 
(tonnes) 
1999 2000 2001 2002 2003 2004 
Industrial maritime fishing 6,335 6,800 6,071 9,350 10,423 7,996 
Small-scale maritime fishing 13,130 11,315 12,645 13,083 13,054 16,600 
Inland fishing 25,807 26,355 27,877 29,494 31,182 30,338 
Fisheries production 45,272 44,970 46,593 51,927 54,659 54,934 
Exports 370 710 635 937 1,230 680 
Source:  Congolese authorities. 
25. Since 2001, the Congo has been included in the list of countries that are deemed to satisfy the 
conditions for recognition of equivalence with the health requirements determined by the EU12, and 
regularly exports around 1,000 tonnes of crustaceans annually to Spain.  The Congo has established a laboratory in Pointe-Noire to  conduct the necessary microbiological and chemical analyses.
13 
26. There are no special regulations on inland fishing or fish farming. 
                                                      
10 This section is mainly based on informati on provided by the Congolese authorities and the 
FAO (2002). 
11 Law No. 2-2000 of 1 February 2000. 
12 Commission Decision of 12 February 2001, amending Decision 97/296/EC. 
13 Decree No. 2005/517 of 26 October 2005. WT/TPR/S/169 Trade Policy Review 
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(c) Forestry14 
27. The Congo's forests are found in three mountainous areas:  the Kouilou-Mayombe mountains 
(1.5 million hectares) and the Chaillu-Niari mountains (3.5 million hectares), in the south of the Congo, and the Nord-Congo mountains (7.5 million hectares).  Of the approximate figure of 
22.5 million hectares of forest, some 18.4 million hectares can be exploited commercially and 
10 million hectares are concession areas.  The Congo al so has 70,000 to 83,000 hectares of limba and 
eucalyptus plantations in the Pointe-Noire re gion.  The Congo's 14 protected areas cover over 
3.7 million hectares, divided into three national parks, six reserves, three hunting areas and three 
sanctuaries (section (5)(iii)). 
28. Under the National Forestry Action Plan (PAFN) adopted in 1994, the main regulatory 
instrument in this subsector is the Forestry Code enacted in 2000.
15  Some of the innovations 
introduced by the Code include the requirement th at 85 per cent of logs should be processed on the 
spot16;  in practice, processing mainly takes the form  of sawing and has not reached the 85 per cent 
target, with the shortfall being the subject of a surcharge (Chapter III(3)(ii)).  It should be noted, 
nevertheless, that according to the International Tr opical Timber Organization (ITTO), this regulatory 
framework provides the basis for sustainable forestry management17, which is being implemented in 
the Congo18;  the Congo would appear to be one of the first countries in the world to do this.19  The 
forests in the Congo Basin are covered by the Treaty on the Conservation and Sustainable Management of Forest Ecosystems in Central Africa.
20 
29. According to the Code, forests are classified into State forest, national public forest and 
private forest.  State forest is split up into Forest  Management Units (FMUs), determined in an order 
by the Minister responsible for water resources and fo rests;  there are 34 such Units.  In the mountains 
in the south of the country (where logging dates b ack to the colonial era), the Units are of average 
size, but are much larger in the north (where loggi ng only started recently) with a view to attracting 
investors capable of exploiting the timber on a large scale (at least 100,000 m3 annually) by building 
roads and setting up facilities for initial processing on the spot.  It is easier to ship timber in the south 
                                                      
14 This section is mainly based on information provided by the Congolese authorities and on the 
following documents:  International Tropical Timber Organization (2006);  FAO (2005);  French Embassy in 
Cameroon, Economic Mission in Yaoundé (2005);  FAO (2001). 
15 Law No. 16-2000 of 20 November 2000.  In addition, the following texts are also relevant:  Law 
No. 48-83 of 21 April 1983 determining the conditions fo r the conservation and exploitation of wild fauna;  Law 
No. 52-83 of 21 April 1983 containing the Code on State Land and Property (whose implementing texts have 
never been adopted);  and Law No. 03-91 of 23 April 1991 on environmental protection. 
16 Article 48 of Law No. 16-2000 of 20 November 2000. 
17 ITTO (2005), page 36, defines sustainable forest management (SFM) as:  "The process of managing 
forest to achieve one or more clearly  specified objectives of management with regard to the production of a 
continuous flow of desired forest products and services without undue reduction of its inherent values and future 
productivity and without undue undesirable effects on the physical and social environment". 
18 According to the ITTO (2006), page 19, "The st age therefore seems set for the forestry sector – 
particularly in northern Congo – to expand the area of forest under SFM, provided that issues related to local 
communities and the over-hunting of certai n mammal species can be addressed". 
19 ITTO (2006), page 9. 
20 This Treaty, which established the Commission for Central African Forests (COMIFAC), was 
adopted at the summit of Heads of State of Central Afri ca, held at Brazzaville on 4 and 5 February 2005.  The 
implementation of the convergence plan drawn up for this purpose links donors to the Congo Basin Forest Partnership (CBFB), launched at the Johannesburg summit in September 2002. Republic of the Congo WT/TPR/S/169
Page 53 
 
 
of the country because of proximity to the Pointe-Noi re port than in the north, where the timber must 
travel over 1,200 kilometres of rural roads to the port of Doula in Cameroon.21 
30. FMUs are exploited for commercial purposes by  the holders of concessions issued by the 
water resources and forestry administration.  The concessions comprise industrial processing 
agreements (for a maximum period of 15 years) ;  management and processing agreements (for a 
maximum period of 25 years);  permits for the ha rvesting of plantations;  and special permits 
(restricted to Congolese nationals, non-governmental  organizations and associations established under 
Congolese law).  Industrial processing and manage ment and processing agreements are awarded 
following an invitation to tender. 
31. Under the Forestry Code, the FMUs are monito red by officials of the water resources and 
forestry administration on the spot.  Concession holders draw up management plans (for 10 to 
20 years) in collaboration with the officials of the water resources and forestry administration.22  Of 
the 8.4 million hectares under concessions, some 5 million hectares are the subject of management 
plans that are in principle expected to be fina lized by 2010-2011.  The management plans must 
respect the principle of sustainable development23;  the Congo's first forestry management plan was 
adopted in March 2005 and covers the KABO FMU in  Ouesso, an area of 280,000 hectares allocated 
to the Congolaise Industrielle du Bois  – CIB (Congolese Industrial Timber Company).  This FMU has 
been the subject of a sustainable management forest audit by the Société générale de surveillance  
(SGS) and has been given eco-certification by the NGO Forest Stewardship Council (FSC). 
32. Some 34 companies (under private law) are liste d in the forestry sector, which employs some 
10,000 people.24  National logging output has increased sh arply since 1999 (Table IV.2) and in 2005 
amounted to 1.4 million m3.  According to the I-PRSP, loggin g could increase still further over the 
period 2005-2007 for three main reasons:  (i) the upgrading of the transport infrastructure 
(section (5)(i));  (ii) the creation of new logging companies;  and (iii) increased processing capacity.  
For some 50 types of commercial species, the pote ntial is estimated by the FAO to be around 
2 million m3 of logs annually, without jeopardizing the for ests' capacity to regenerate.  The Ministry 
of Forestry Economics and the Environment has fixe d the year 2007 for achievement of this target, 
together with that of 445,000 m3 of sawn wood.25 
                                                      
21 In order to ship timber through the Pointe-Noire port, it has to be sent down by water, taken out the 
water and stored in Brazzaville and then transported by ra il to Pointe-Noire.  This means that the timber cannot 
be shipped within the time limits expected by the operators (section (5)(i)).  The Congolese authorities estimate 
the loss in terms of purchasing serv ices for shipping timber through Cameroon to be some CFAF 40 billion. 
22 According to the authorities, th ese plans are very costly, amountin g to around CFAF 2,500 to 3,500 
per hectare.  Donors only finance this type of pl an on an exceptional basis (for example, the French 
Development Agency financed the KABO FMU plan).  The authorities also draw attention to the lack of properly trained officials. 
23 In the course of 2006, the Congo intends to ad opt the national Principles, Criteria and Indicators 
(PCI) on sustainable development, based on the harmonized PCI of the ITTO and the African Timber 
Organization (ATO). 
24 The largest concessions are held by the Congolaise Industrielle du Bois  -  CIB (Congolese Industrial 
Timber Company) and the Industrie forestière de Ouesso  – IFO (Ouesso Forestry Company).  Other companies 
working in this subsector are subsidiaries of  European, Malaysian or Chinese companies. 
Pursuant to Article 53 of the Forestry Code:  "Fores try companies with foreign capital are required to 
open their registered capital up to Congolese citizens", but this provision has not yet been implemented for a 
number of reasons, including the problem of obtaining bank financing in the Congo. 
25 Government of the Congo, Ministry of Forestry Economics and the Environment, (2005) (in French 
only). WT/TPR/S/169 Trade Policy Review 
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Table IV.2 
Trend in production of forest woods, 1999-2005 
(m3) 
 1999 2000 2001 2002 2003 2004 2005 
Logs 519,929 630,878 895,116 1,179,272 1,350,408 1,445,0332 1,369,176 
Sawn wood 73,870 108,773 128,690 169,735 167,753 199,597 208,996 
Veneer 18,645 9,740 14,151 22,494 26,138 8,023 14,376 
Plywood 2,819 .. 4,036 4,078 3,537 .. .. 
Roundwood 631,423 53,905 230,459 .. 72,836 .. .. 
.. Not available. 
Source : Congolese authorities. 
33. Various taxes are levied on timber exports (C hapter III(3)(ii)).  Since 2003, the Congo has 
brought its taxation into line with that in other countries in the subregion.  Together with the 
post-conflict situation in the Congo and the cost of sh ipping timber, this has helped to slow down the 
response to the invitations to tender for concessions in the northern Congo. 
34. In 2004, timber accounted for some 7.2 per cent of export earnings (Table I.4).  The main 
species of timber exported is okoumé (37 per cent of the earnings from log exports in 2003) 
(Chart IV.1).  Sappeli and sipo are also two important species in terms of their share of exports of logs 
and sawn wood in 2003 (Chart IV.2). 
Chart IV.1
Exports of logs by principal species, 2003
Okoumé
36,9
Sappeli
26,4Sipo
12,4Tiama  6,3Iroko/kambala  3,5White Longhi  2,7Other
11,8
Total: CFAF 107.1 billion
Source :  Congolese authorities.CFAF billion and percentage
 
 
 
 Republic of the Congo WT/TPR/S/169
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Chart IV.2
Exports of sawn wood by principal species, 2003
Sappeli
48,5
Sipo
10,5
Ayous/obèche
14,2Iroko/kambala 7,7Aiele  3,1Bossé  2,8Other 
13,3
Total: CFAF 32.4 billion
Sourc e:  Congolese authorities.CFAF billion and percentage
 
 
(3) MINING , ENERGY AND WATER26 
(i) Mining products 
35. The Congo has large deposits of mining resources,  even though their size is not yet fully 
apprehended because no in-depth studies have been conducted.27  The resources include gold, copper 
and diamonds.  According to the authorities, ther e is virtually no mining industry because diamonds 
are only mined on a small scale and gold mining, whic h was on an experimental level, ceased in 2002.  
Only limestone deposits are currently exploited on an industrial scale in order to supply the Congolese 
cement works (section (4)). 
36. Promotion of the mining sector responds to the objective set in the I-PRSP of diversifying the 
basis of the Congo's economy.  In order to encour age private investment, the authorities introduced a 
new Mining Code in 200528, which governs prospecting, expl oration, exploitation, possession, 
transport and processing of mineral or fossile substa nces.  According to the Code, the State owns the 
mineral or fossile substances on national territory, including those in territorial waters, as well as all 
the relevant technical data and information collected  by mining companies.  The mining titles in effect 
are the following:  prospecting permit (for one year , renewable for one further year);  exploration 
permit (for three years, renewable for two further tw o-year periods);  small-scale mining permit (three 
years, tacitly renewable for the same period);  i ndustrial mining permit (five years, renewable for 
                                                      
26 The main sources for this section are the information provided by the Congolese authorities and the 
following references:  Mobbs, P.M. (2004);  French Embassy in the Co ngo, Economic Mission in Brazzaville 
(2004). 
27 Government of the Congo, Ministry of Mining, Energy and Water Resources, (2002) (in French 
only). 
28 Law No. 4-2005 of 11 April 2005. WT/TPR/S/169 Trade Policy Review 
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five-year periods);  operating permit (for a maximu m of 25 years, renewable for a maximum period of 
15 years);  and permits to possess, transpor t and process precious mineral substances. 
37. Issuance of permits for exploration or explo itation requires the conclusion of an agreement 
with the State setting out the special regime coveri ng the parties' rights and obligations (including the 
taxation, customs, financial and exchange c ontrol terms).  The guarantees given to approved 
companies include freedom to transfer profits and dividends abroad, as well as the proceeds from sale 
of their investment.  The State takes a minimum 10 per cent share of the capital in each project and 
may take an additional share.  The temporary admission regime (with relief from import or export 
duties and taxes, except for the automation fee) applies to machinery and equipment needed for 
geological surveying and mapping, as well as duri ng the exploration and start-up phases and when 
expanding capacity.  Holders of mining permits must  pay the standing charges, an area royalty, a 
mining royalty on export earnings29, and a tax on geomaterials for building. 
38. Import of mining substances is subject to paym ent of duties and taxes, including a maximum 
tariff of 30 per cent and VAT at 18 per cent, as well as an excise duty of 24 per cent (Table AIII.2) on 
precious stones.  The export of mining products is regulated.  In addition to producers, officially 
approved offices which buy and sell precious mine ral substances are recognized as exporters.  
According to the authorities, trade in uncut di amonds in the Congo continues;  the Congo was 
suspended from the Kimberley process in 2004 (Chapt er III(3)(iii)).  A number of mining substances 
are exempt from the supplementary exit duty (DAS) (Table AIII.3). 
(ii) Petroleum products and natural gas30 
39. The Congo has proven reserves of 1.5 billion barrels  and is the fifth largest oil producer in 
sub-Saharan Africa after Nigeria, Angola, Gabon and Equatorial Guinea.  Most of the oilfields are 
offshore and are exploited by foreign companies,  in some cases with participation by the Société 
nationale des pétroles du Congo – SNPC (Congolese National Oil Company), which manages the 
share of hydrocarbons production accruing to th e State under production-sharing agreements 
(Table IV.3).  Following the start-up of the new Litanzi and Nsoko oilfields, the Congolese authorities 
expect total output to be over 100 million barrels  from 2006 onwards, corresponding to an average of 
250,000 barrels/day, an increase compared with 2005 (Tab le IV.4).  Congolese oil is usually of fairly 
good quality, not very heavy and containing little sulphur. 
Table IV.3 
Structure of the oil industry, 2004 
Companya Field Annual 
capacity 
('000 barrels) 
Total Exploration & Production Congo, 51;  Chevron Overseas (Congo) Ltd, 20;   
Congolese National Oil Company, 15;  Energy Africa (subsidiary of Tullow Oil plc), 4 Nkossa 25,000 
Agip Congo S.A., 35.75;  Congolese National Oil Company, 35;   
Chevron Overseas (Congo) Ltd, 29.25 Kitina 15,000 
Total Exploration & Production Congo, 65;   Agip Congo S.A., 35 Tchibouéla 15,000 
Agip Congo S.A., 65;  Total Explorati on & Production Congo S.A., 35 Zatchi 12,000 
Table IV.3 (cont'd)
                                                      
29 Article 157 of Law No. 2005-04 of 11 April 2005.  The taxes are the following:  5 per cent on 
precious metals and stones;  1 per cent on thermal or mineral waters;  5 per cent on geomaterials for building, 
materials for ceramic and other industries;  3 per cent on all other mineral substances. 
30 Energy Information Administra tion (EIA), "Congo – Brazzaville".  Available at: http://www.eia. 
doe.gov/emeu/cabs/congo.html [13 May 2006]. Republic of the Congo WT/TPR/S/169
Page 57 
 
 
Companya Field Annual 
capacity 
('000 barrels) 
Zetah Maurel & Prom Congo S.A.R.L. [Maurel & Prom, 54;  Tacoma Resources Ltd 
(subsidiary of Burren Energy PLC), 35;  Ener gy Africa (subsidiary of Tullow Oil plc), 11] M'Boundi 7,300 
CMS NOMECO Congo (Congolese National Oil Company, 50;  Perenco Group, 25;   
Nuevo Congo Co., 18.75;  Kuwait Foreign Pe troleum Exploration Co. (K.S.C.), 6.25) Youmbo 6,100 
Total Exploration & Production Congo, 55.25;  Agip Congo S.A., 29.75;  Congolese National 
Oil Company, 15 Sendji 6,000 
Total Exploration & Production Congo, 65;   Agip Congo S.A., 35 Likalala 3,900 
Total Exploration & Production Congo, 65;  Agip Congo S.A., 35 Kombi 3,800 
Likouala S.A., 65;  Agip Congo S.A., 35 Likouala 3,800 
Total Exploration & Production Congo, 65;   Agip Congo S.A., 35 Tchibéli 3,700 
Total Exploration & Production Congo, 55.25;  Agip Congo S.A., 29.75;  Congolese National 
Oil Company, 15 Yanga 3,500 
Congorep (subsidiary of Perenco Group), 51;  Congolese National Oil Company, 49 Emeraude 3,300 
Agip Congo S.A., 52;  Congolese National Oil Co mpany, 35;  Sasol Ltd, 13 Foukanda 3,000 
Total Exploration & Production Congo, 65;  Agip Congo S.A., 35 Tchendo 3,000 
Agip Congo S.A., 65;  Congolese National Oil Company, 35 Mwafi 2,800 
Agip Congo S.A., 52;  Congolese National Oil Co mpany, 35;  Sasol Ltd, 13 Djambala 1,500 
Zetah Maurel & Prom Congo S.A.R.L. [Maure l & Prom, 50;  Heritage Congo Ltd, 25;  
Tacoma Resources Ltd (subsidiary of Burren Energy PLC), 25] Kouakouala 500 
Zetah Maurel & Prom Congo S.A.R.L. [Maurel & Prom, 65;  and Tacoma Resources Ltd 
(subsidiary of Burren Energy PLC), 35] Pointe-Indienne 50 
a The figures show the percentage share of the capital. 
Source : Mobbs, P.M. (2004). 
40. Prospecting, exploration, exploitation, stor age and transport up to the point where the 
hydrocarbons are shipped are governed by the Hydro carbons Code adopted in 1994, together with its 
implementing texts.31  Under the Code, the State owns the hydrocarbons on national territory, 
including those in territorial waters , as well as all the relevant technical data and information collected 
by the oil companies.  The three mining titles in  effect are a prospecting permit (for one year, 
renewable for one further year);  exploration permit (four years, renewable for two further three-year 
periods);  and an operating permit (a maximum of 20 years, with the possibility of a further extension 
for up to five years).32  The latter two titles are subject to the conclusion of a production-sharing 
agreement with the State.33  The agreement must be approved by a law and its terms must be 
transparent;  in practice, the State's share is around 30 to 32 per cent of national output.34 
                                                      
31 Law No. 24-94 of 23 August 1994. 
32 An operating permit also gives the holder the right to build the pipelines needed to transport 
hydrocarbons within the Congo.  The tr ansport rates applied by companies which provide this type of service to 
third parties are regulated by the State. 
33 Article 34 of Law No. 24-94 of 23 August 1994. 
34 "Interview avec M. Jean-Baptiste Tati Loutard, Ministre des Hydrocarbures ", 16 April 2002 (in 
French only).  Available at:  http://www.winne.com [14 May 2005]. WT/TPR/S/169 Trade Policy Review 
Page 58 
 
 
Table IV.4 
Trend in oil production, 2001-2006 
('000 barrels) 
  Field 2001 2002 2003 2004 2005 2006 
Emeraude 1,598 1,628 1,989 3,102 2,313 2,373 
Likouala 1,977 1,902 1,828 1,846 2,398 2,067 
Yanga 2,587 2,045 2,099 2,273 1,995 2,593 
Sendji 5,226 5,068 5,385 5,282 4,318 4,630 
Tchibouéla 10,962 10,812 9,151 8,376 8,018 6,790 
Tchendo 1,955 2,375 2,592 2,269 2,977 3,395 
Tchibouéla Est 1,498 1,515 1,216 1,063 878 734 
Kombi 2,886 2,894 3,087 2,385 2,457 2,019 
Likalala 3,737 3,029 3,210 2,720 3,053 3,553 
Tchibéli 3,375 368 2,591 2,253 1,762 1,712 
Likouala Est 701 969 576 855 652 400 
Litanzi - - - - - 550 
Nkosaa Oil 16,894 13,192 10,385 9,612 14,562 15,241 
Nkossa Butane 1,593 1,469 1,194 1,145 1,057 - 
Nkossa Propane 2,642 2,549 2,087 2,018 1,781 2,884 
Nsoko - - - - - 1,235 
Loango 8,074 7,896 7,629 6,840 7,453 7,446 
Zatchi 9,625 8,903 889 7,502 8,307 8,510 
Mwafi 461 2,777 2,173 1,881 2,135 1,854 
Kitina 6,621 4,692 4, 785 4,511 3,124 3,054 
Djambala 422 1,541 974 1,392 578 1,168 
Foukanda 1,177 2,884 2,906 2,308 1,966 1,800 
Yombo 5,103 5,078 4,802 4,438 3,188 3,746 
Pointe Indienne 42 52 40 44 57 47 
Kouak/Mboudi 469 924 118 8,395 16,654 23,129 
Total 89,627 87,843 81,707 82,509 91,683 100,930 
Source : Congolese authorities. 
41. Oil companies are eligible for a special VAT-exempt regime for goods (whether imported or 
of national origin)35, and for services and works provided by subcontractors working directly in 
petroleum activities.36  Oil companies must give priority to local personnel when recruiting and to 
Congolese suppliers for services.  Companies engaged in prospecting, exploration, exploitation and 
transport are subject to corporation tax37, a mining royalty in proportion to output (at a rate of 15 per 
cent) and an area royalty. 
42. Only duly authorized persons may export petrol eum products and engage in their transit and 
re-export (Chapter III(3)(i)).  Export of crude oil is s ubject to payment of a number of duties and taxes 
(Chapter III(3)(ii)). 
                                                      
35 Decree No. 2000-522 of 19 October 2001. 
36 Law No. 3-2000 of 1 February 2000.  Subcontracting in the petroleum sector requires approval by 
the Minister responsible for hydrocarbons and payment of an annual fee amounting to CFAF 1.5 million (Order No. 1214 of 19 March 2001). 
37 For companies legally established in the Congo, the rate is 38 per cent on profits.  In the case of 
companies "whose status is intermittent or temporary", the rate is 35 per cent on 22 per cent of the turnover (Article 126 ter of the General Tax Code). Republic of the Congo WT/TPR/S/169
Page 59 
 
 
43. Transparent management of the financial resources earned from petroleum activities in the 
Congo and its improvement are one of the cornerstones of  State action (Chapter I(2)).  Privatization of 
activities downstream of Hydro-Congo's petroleum operations, which began in 1997, was given a 
further boost in 200138 and Hydro-Congo was dissolved in 2002.39  This led to the creation of the 
SNPC, responsible for marketing the State's shar e of the oil under production-sharing agreements.  
Likewise, companies downstream of petroleum activities have been reorganized and privatized:  responsibility for distributing and marketing petrol eum products has been given to four groups of 
companies, namely Total/Fina/Elf, Chevron/Tex aco and the Puma Energy/X-Oil (PEX) Consortium
40;  
the Société congolaise de logistique  – SCLOG (Congolese Logistics Company), set up in July 2002, is 
responsible for storage and mass transport of finished petroleum products within the Congo41;  gas 
and liquefied petroleum (LPG) assets were sold to the joint venture FAAKI/SNPC in October 2001 
and the sale of the SNPC's shares to Congolese ope rators should occur in the near future;  the 
lubricant manufacturing plant (UFALU) has been the subject of a farm-out agreement with the SNPC while awaiting privatization, wh ich will only be open to Congolese operators (Chapter II(4)(i)). 
44. The refining company Congolaise de raffinage  – CORAF (Congolese Refining Company) has 
nominal capacity to handle around 1 million tonnes annually.
42  Its crude oil supplies come from a 
pipeline linking it to the terminal at Djéno.  Its ou tput of butane, premium grade petrol, white spirit, 
jet fuel, gas oil and light fuel oil cover all the Congo's needs, estimated to be around 530,000 tonnes 
of crude annually;  the remainder of its output is ex ported.  All its output is transported to the storage 
facilities of the SNPC, a State-owned enterprise.  The CORAF is being reorganized and modernized 
prior to privatization. 
45. The ceiling price of petroleum products market ed and consumed on the domestic market is 
regulated in the context of the reorganization of activities downstream of the petroleum industry (see above).
43  The price structure for each product is determin ed in a decree, whether the product is part of 
the CORAF's output or imported, and takes into acc ount global prices.  The factors taken into account 
by the Technical Committee for the sector downstr eam of petroleum activities when determining the 
price of petroleum products include the profitability of the logistics companies authorized to engage 
in storage and mass transport (the SCLOG), of approved refining companies (the CORAF and any 
other company to be set up in the subsector), of the authorized distribution and marketing companies 
(Total/Fina/Elf, Chevron/Texaco and the Puma Energy/X-Oil (PEX) Consortium), and of the approved transport companies (SCLOG and small priv ate transporters).  The profitability margins are 
determined annually by negotiation with the compani es concerned.  The fixing of ceiling prices takes 
into account the 10 per cent customs duty on im ported petroleum products, the value added tax 
(18 per cent of the import price), and the VAT charged on each service provided
44, as well as 
financing of the price control bodies in the sector. 
                                                      
38 Law No. 6-2001 of 19 October 2001. 
39 Agence France-Presse , "Dissolution d'Hydro-Congo", 8 August 2002 (in French only).  Available at:  
http://congopage.com [14 May 2005]. 
40 Decree No. 2002-260 of 1 August 2002. 
41 The SCLOG comprises the oil companies Total, Chevron-Texaco, the Puma Energy/X-Oil (PEX) 
Consortium and the Congolese State represented by the SNPC, each holding 25 per cent of its capital. 
42 "Interview avec M. Nestor Mawand za, Directeur Général de la CORAF" (in French only).  Available 
at:  http://www.winne.com [14 May 2005]. 
43 Decree No. 2005-699 of  30 December 2005. 
44 Decree No. 2001-522 of 19 October 2001 determin es the applicability of VAT in the petroleum 
subsector.  With the exception of consumption required for exploration, development, production, transport, 
storage and marketing of crude hydrocarbons, when petroleum products are put up for sale on the domestic market they are subject to VAT. WT/TPR/S/169 Trade Policy Review 
Page 60 
 
 
46. The consumer price is based on the distribution mark-up determined on the basis of the 
simple average of import prices (converted from United States dollars into CFA francs) and the price of the product delivered by the CORAF.  The dist ribution mark-up (at the pump) is updated monthly.  
The ceiling price for the sale of petroleum products to  the final consumer is therefore determined and 
updated on the first of each month in a joint or der issued by the Ministers responsible for 
hydrocarbons, finance and trade, on the basis of the components of the price structure.
45 
47. The Government may subsidize the price of petroleum products in order to promote the 
domestic industry.46  Butane gas, the basic energy used to prepare food, and kerosene, used to light 
the villages, are subsidized by the State. 
(iii) Electricity47 
48. Because of its abundant hydrographic resources,  the Congo has considerable hydroelectric 
potential (some 2,500 megawatts).48  This potential is currently un der-exploited – only 89 megawatts 
out of a total of 137 megawatts in the facilities of the Société nationale d'électricité  – SNE (National 
Electricity Company).49  Because the estimated needs are 300 me gawatts and the SNE's facilities are 
obsolescent, some one quarter of the electricity consumed on the domestic market is imported from 
the Democratic Republic of the Congo.50 
49. The SNE has been included in the privatization programme since 1994 and the operation was 
revived in 2001, but so far without success;  a progr amme to modernize the infrastructure should start 
shortly in order to prepare the SNE for the granting of a concession.  The Electricity Code, adopted in 
2003, determines the requirements for engaging in ac tivities in the subsector and those governing the 
entry of new producers.51  For the time being, new producers may generate electricity, but transport 
and distribution are an SNE monopoly.52  The State is taking targeted action to develop rural 
electrification.53  The Congo faces serious load-shedding problems. 
50. The selling price of electricity is determined  by government decree following a proposal by 
the agency responsible for regul ating the electricity sector.54  The price is the same throughout the 
Congo.  The current price scale dates back to 1994.55  Import or export of electricity requires a permit 
                                                      
45 See, for example, Order No. 4268 of 26 May 2006. 
46 For example, Article 28 of the Establishment Agr eement between the Republic of the Congo and the 
Company SARIS-Congo, 24 March 2005, grants this company a concessional VAT rate on hydrocarbons corresponding to 35 per cent of the taxable value. 
47 Energy Information Administra tion (EIA), "Congo – Brazzaville".  Available at:  http://www.eia. 
doe.gov/emeu/cabs/congo.html [13 May 2006];  French Embassy in the Congo, Economic Mission in Brazzaville (2006a). 
48 "Interview avec M. Jean-Marie Ta ssoua, Ministre de l'énergie et de l'hydraulique, 24 avril 2002" (in 
French only).  Available at:  http://www.winne.com [14 May 2005]. 
49 It is common practice for companies to generate thei r own electricity.  This is the case, for example, 
at CORAF ("Interview avec M. Nest or Mawandza, Directeur général de  la CORAF" (in French only).  
Available at:  http://www.winne.com [14 May 2005]). 
50 Only 10 per cent of the amount of this market is paid by the SNE and the rest by the Congolese State. 
51 Law No. 14-2003 of 10 April 2003. 
52 New producers must sell their output to the SNE, which transports and distributes electricity at the 
retail prices determined by decree. 
53 Law No. 15-2003 of 10 April 2003. 
54 This authority was created by Law No. 16-2003 of 10 April 2003.  The price of electricity is as 
follows:  CFAF 49.08/kWh., to which must be added 18 per cent VAT and a surcharge of CFAF 2/kWh. 
55 Order No. 681 of 19 March 1994.  Low voltage electricity costs CFAF 49.08/kWh., plus 18 per cent 
VAT and a surcharge of CFAF 2/kWh. Republic of the Congo WT/TPR/S/169
Page 61 
 
 
issued by the Ministry in charge of electricity following consultation with the agency responsible for 
regulating the electricity sector.  Imports of electr icity by the SNE are not subject to the customs duty 
of 10 per cent but the value added tax of 18 per cent applies. 
(iv) Water 
51. The situation regarding drinking water supplies in  the Congo is similar to that of electricity.  
The Société nationale de distribution d'eau  – SNDE (National Water Supply Company) has a 
monopoly of the means of production and the supply of drinking water, as well as of sanitation and 
waste water plants.  The SNDE is included in th e privatization programme;  in 2006, a programme to 
modernize its infrastructure should begin in orde r to prepare the SNDE for the granting of a 
concession.  The Water Code, adopted in 2003, determines the requirements for activities in the 
subsector and those governing the entry of new producers.56  The selling price of water is determined 
by government decree on the basis of a proposal by the agency responsible for regulating the water 
sector.57 
(4) MANUFACTURING  
52. The Congo's manufacturing sector is fairly modest  (Table I.1), and is essentially made up of 
agri-food companies (for example, the sugar co mpany (section (2)(iii)(a)), bakeries and cake 
manufacturers, dairy, mineral water, tobacco a nd beverage industries), companies manufacturing 
packaging, paints, aluminium articles, a cement works, companies processing wood into articles or 
furniture, and the petroleum-based chemical industry.58 
53. The year 2004 saw the implementation of the Congo's National Investment Charter 
(Chapter II(4)(i)), which replaced the Investment Code.  Around 30 per cent of the total amount of 
investment approved under the Charter in 2004 (CFA F 143 billion) went to industrial activities.  
These include the Société nouvelle de  ciment du Congo  – SONOCC (Congolese New Cement 
Company)59, which has modernized a cement works w ith an annual capacity of 220,000 tonnes, 
SARIS-Congo (section (2)(iii)(a)), and the company Rafraîchissement, glace et eau du Congo  – 
RAGEC (Congolese Ice and Water Company), which makes bottled beverages and their packaging. 
54. The incentives for industrial development in the Congo are mainly set out in the National 
Investment Charter and its implementing texts (Cha pter II(4)(i)), as well as in the special framework 
adopted in 1986 to promote small and medium-size enterprises (SMEs).60  The Charter gives (eligible) 
SMEs supplementary incentives (S regime) in addition to the general regime (o r G regime), for which 
all companies approved under the Charter are eligible ;  approval under the S regime is granted by the 
Commission responsible.  In addition, SMEs are e ligible for a number of support measures under the 
special framework adopted in 1986. 
                                                      
56 Law No. 13-2003 of 10 April 2003. 
57 The price is CFAF 130/m3, plus tax (0.25786 per cent) and a surcharge of 4.08 per cent. 
58 http://www.congo-site.biz/v1x/ebiz/annu_cat.php?id=18. 
59 The Congolese State holds 44 per cent of this company and the Chinese National Civil Engineering 
Company (SNCTPC) holds the rest.  Th e work is carried out by the SNCTPC .  See L'Observateur, "Coopération 
Congo/Chine:  Réhabilitation de la cimenterie de Loutét é", No. 330 of 9 November 2005 (in French only).  
Available at:  http://www.congo-site.info [31 May 2006]. 
60 Pursuant to Article 2 of Law No. 019/86 of 31 July 1986, a company is deemed to be small if it 
employs five to 19 workers;  if it employs 20 to 99 workers, it is considered to be a medium-size enterprise (Article 2 of Law No. 019/86 of 31 July 1986). WT/TPR/S/169 Trade Policy Review 
Page 62 
 
 
55. The simple average of MFN tariffs applied in  the manufacturing sector (ISIC definition) is 
18.4 per cent (Tables III.1 and AIV.1), with a large number of imported manufactures subject to 30 per cent and also to other import duties and tax es (Chapter III(1)(iv)(b)).  This tariff structure 
derived from the CEMAC's CET does not encourage i nvestment in agri-food industries because of the 
relatively high cost of agricultural raw materials,  exacerbated by the relatively strong protection they 
are given.  In addition, the high level of effective protection given to the majority of industries, with 
the exception of the timber and wood articles indus try and non-metallic minera l products (Chart III.2), 
affects the competitiveness of the Congolese manufactu res concerned on foreign markets.  Likewise, 
the tariff structure does not provide support for the objective of promoting exports of processed wood 
or non-metallic mineral products. 
56. Imported manufactures are also subject to intern al taxes such as VAT (Chapter III(2)(b)) and, 
in some instances, excise duty (Table AIII.2).  The highest taxation applies to beverages (85 per cent), 
because of the customs duty of 30 per cent, the ex cise duty of 24 per cent and VAT of 18 per cent. 
(5) S
ERVICES  
(i) Overview 
57. Services employ the vast majority of wage-earners (Table I.1), even though certain 
commercially traded services such as business and road  and river transport are mainly provided by the 
informal sector.  Formal financial services are not su fficiently developed to finance the expansion of 
the private sector needed to diversify the C ongo's economy, which remains dependent on petroleum 
resources. 
58. Transport is a cornerstone of the I-PRSP.  Until 2000, rail, river and maritime transport in the 
Congo were provided by the Agence transcongolaise des communications  – ATC (Transcongolese 
Communications Agency), which wa s dissolved and gave rise to three structures:  the Autonomous 
Port at Pointe-Noire (PAPN), the Autonomous Port  at Brazzaville and Secondary Ports (PABS), and 
the Congo-Océan railway (CFCO).  Under the Na tional Transport Plan (PNT), the Congolese 
authorities aim to develop basic infrastructure, to put an  end to the isolation of the interior with a view 
to developing the rural sector (section (2)(ii)), to  unify the national territory, and to recover Congo's 
"vocation" as a transit country in Central Africa.  Basic telecommunications services also form part of 
this vision.  Nevertheless, th e Congo made few commitments under the GATS other than those in 
tourism.  It did not take part in the negotiations  on basic telecommunications services or in those on 
financial services, concluded in 1997. 
(ii) Transport61 
(a) Water transport 
59. The two major rivers in the Congo, the C ongo and the Oubangui, are navigable up to the 
border with the Central African Republic and make up a river transport network of 4,385 km.  This 
network is used for heavy transport mainly to or from the north of the country, as well as 
neighbouring countries such as Cameroon and the Ce ntral African Republic.  The Autonomous Port 
of Brazzaville, on the River Congo, is linked to the PAPN by the CFCO (section (c)).  The PAPN is one of the major deep-water sea ports in the central African subregion.  This transport infrastructure 
                                                     
 
61 The main references for this section are the following:  Republic of the Congo, National Poverty 
Reduction Committee (2004);  BafD/OECD (2006).  See also  the information on transport in the Congo of the 
OT Africa Line.  Available at:  http://www.otal.com/congo/;  and the Conseil congolais des chargeurs – CCC 
(Congolese Shippers Council), http://www.ccc.cg/ [8 May 2006]. Republic of the Congo WT/TPR/S/169
Page 63 
 
 
could be used to ship tropical wood from all the ma jor logging zones in the Congo (section (2)(iii)(c)), 
but the absence or the state of ro ad and rail transport between Bra zzaville and Pointe-Noire prevents 
this and large amounts of timber exported from the north of the Congo go through Douala in 
Cameroon.62  Because the oil wells are situated offshore,  their output is shi pped through the PAPN, 
which thus handles some 70 per cent of Congo's trade. 
60. The PABS and the PAPN are State-owned enterp rises which manage the ports in question.  
Handling and storage services at the PABS may be supplied by private pers ons.  The PAPN handles 
around 2.2 million tonnes of exports and 0.6 million tonnes of imports each year.  In 2006, the PAPN 
embarked upon a CFAF 60 billion upgrading and modernization programme, 60 per cent of which 
would be financed by donors.63  One of the programme's main objectives is to introduce a single 
window to facilitate trade.64 
61. Maritime transport rates are freely fixed by shipowners and cabotage is allowed.  The Société 
congolaise de transports maritimes  – SOCOTRAM (Congolese Maritime Transport Company) is a 
State-owned enterprise that is the national shipping company65, and as such has national traffic rights 
for 40 per cent of the cargo under the traffic-sharing agreements concluded under the auspices of the 
UNCTAD.66  Shippers must therefore pay the SOCOTRAM  a fee for all import or export cargo, even 
though traffic sharing was abolished by the Congo.67  The Conseil congolais des chargeurs – CCC 
(Congolese Shippers Council), set up in 200068, is the other government body active in the maritime 
transport subsector.  Its tasks are to support the Congolese transport chain and to strive to reduce 
costs, as well as to simplify administrative a nd legal formalities (for example, through the PAPN 
single window project, planned since 2002).  Since 2002, any cargo loaded or unloaded in the Congo, 
irrespective of its final destination and cust oms regime, must be accompanied by a cargo 
identification form (BIC)69, endorsed by the CCC or its agent.70  The CCC is self-financed through the 
revenue from the BIC, as well as through the partic ipation commission which shipowners must pay.71 
62. The International Code for the Security of Ships and Port Facilities (ISPS Code) came into 
effect in the PAPN on 1 July 2004.  This new comp rehensive security regime is intended to establish 
international cooperation among gove rnments, government bodies, the maritime transport and port 
                                                      
62 Press Office, Federal Public Service Foreign A ffairs, "Congo-Brazzaville", 9 March 2006 (in French 
only).  Available at:  http://www.diplomatie.be [9 May 2006];  OT Africa Line, Bulletin de Transport Ouest-
Africain , November 2005 (in French only).  Available at:  http://www.otal.com [14 May 2005]. 
63 Agence France Presse , "Congo:  le programme de réhabilitation et de modernisation des installations 
coûtera au Port de Pointe-Noire 60 milliards de francs CFA", 28 March 2006 (in French only).  Available at: 
http://www.izf.net [8 June 2006]. 
64 The Congolese Minister of Transport has acknowledg ed that "the current situation is characterized 
by over-invoicing, the payment of bribes and other irksome practices that do not favour economic operators".  
See Gabonews , "Un guichet unique pour alléger les tracasseries au port de Pointe-Noire", 24 May 2006 (in 
French only).  Available at:  h ttp://www.allafrica.com [8 June 2006].  
65 Order No. 1134 of 24 May 1990. 
66 The 40-60 per cent allocation between foreign and Congolese shippers was abolished in the Congo in 
1997. 
67 Pursuant to Order No. 1567 of 29 May 2000, the fee is fixed at:  US$4/tonne or m3 for general cargo, 
including timber imported and exported;  US$2/tonne or m3 for imported or exported hydrocarbons. 
68 Ordinance No. 8-2000 of 23 February 2000. 
69 Order No. 3071 of 2 July 2002. 
70 According to the CCC Note dated 12 May 2005, as of 1 July 2005 the cost of the BIC has been:  €55 
for the northern zone (Europe and the Mediterranean);  US$120 for all other zones. 
71 Pursuant to Order No. 1567 of 29 May 2000, this commission is fixed as follows:  CFAF 600/tonne 
or m3 for general goods (including timber) imported and CFAF 400 for exports;  US$0.75/tonne or m3 for 
hydrocarbons imported and US$0.60 for those exported. WT/TPR/S/169 Trade Policy Review 
Page 64 
 
 
industries, in order to determine the measures to be taken to prevent incidents affecting the security of 
ships and port facilities involved in inte rnational trade and to apply them. 
63. The Congo has signed the UNCTAD Internationa l Convention on the Code of Conduct for 
Liner Conferences.  It is a member of the Maritime Organization of West and Central Africa 
(OMAOC), whose aim is to support the member c ountries' maritime transport policies.  For this 
purpose, the Congo has submitted its list of GATS Article II exemptions, which concern maritime 
transport.72 
(b) Air transport 
64. The Congo has three international airports (May a-Maya (Brazzaville), Agostino Neto (Pointe-
Noire) and Ollombo), five smaller airfields (D olisie, Nkayi, Owando, Ouesso, Impfondo) and a dozen 
airfields used by small aircraft.  The Brazzaville and Pointe-Noire airports receive the most passengers and are the stopover points for airlines. 
65. Foreign presence and traffic rights given to  foreign companies serving the Congo are 
governed by bilateral agreements.  These genera lly cover joint operations by Congolese and foreign 
companies and third and fourth freedoms.  Fore ign companies may only engage in cabotage on an 
exceptional and temporary basis under the responsibility of the Minister responsible for civil aviation.  
The Congo has not signed any open skies agreements. 
(c) Land transport 
66. The Congo's road network encompasses approxi mately 17,300 km. of roads, made up of 
1,875 km. of main roads and only 1,200 km. of pa ved roads.  There is no paved road between 
Brazzaville and Pointe-Noire and the only two po ssible means of transport between these two major 
Congolese cities is by rail or by air.  Both Congol ese and foreign persons may provide road transport 
services subject to an authorization and cabotage is allowed.
73 
67. The Congolese rail network comprises two lines:  the Brazzaville-Pointe Noire line (510 km.) 
and the Mont Belo-Mbinda line (285 km.), used up until 1991 to transport manganese from Moanda 
(Gabon) to Pointe-Noire.  The railway between Braz zaville and Pointe-Noire started to operate again 
in 2000, but still functions badly because of the damage caused by the civil war and lack of 
maintenance by the CFCO.  This State-owned ente rprise is one of those to be privatized under a 
25-year concession to be given to a strategic investor, but the transaction has not yet been 
concluded.74  Rail transport prices are determined by the CFCO and are subject to approval by the 
Minister responsible;  they have not been modified recently.  It takes a long time to transport goods by 
rail so they are mainly transported by air between  Pointe-Noire and Brazzaville, which raises the cost 
price of the goods in question.  Forestry companies have decided to ship their timber through Douala 
in Cameroon (section (2)(iii)(c)). 
                                                      
72 WTO document GATS/EL/21 of 15 April 1994. 
73 Law No. 18/89 of 31 October 1989 defines ro ad transport activities.  Decree No. 90/135 of 
31 March 1990 governs exercise of the profession.  Foreigners must establish a company in order to provide road transport services, while Congolese natural persons may engage in the profession. 
74 An invitation to tender selected two candidates:  the Sheltam-Mvela consortium and the CongoRail 
(Bolloré-Comazar-Maersk-SNCF) group.  The bid made by the former is being considered by the Congolese authorities.  See CPCS Transcom (2004). Republic of the Congo WT/TPR/S/169
Page 65 
 
 
(iii) Tourism75 
68. The Congo has considerable tourism potential because of its coastline and its eco-tourism 
assets.  There are three national parks, the Nouabalé  Ndoki national park, in the extreme north of the 
Congo, the Odzala national park, on the border of th e forest zone in the Congolese basin, and the 
Conkouati national park at Kouilou.  This potential can only be realized if the security situation in the 
Congo and neighbouring countries is stabilized76, and progress is made in transport facilities and the 
support infrastructure in the tourism sector.  Conseq uently, business is currently the main reason for 
travelling to the Congo (80 per cent of arrivals). 
69. The tourism infrastructure is mainly composed of hotels owned by private investors and the 
State only has one hotel in Brazzaville in its portfo lio.  In 2004, there were 451 hotels, providing 
4,429 beds and in Brazzaville the occupancy rate  was around 42 per cent (61 per cent in four-star 
hotels).  A survey of some hotels shows a sharp increase in arrivals of non-residents, from some 
14,000 in 1999 to 36,000 approximately in 2004.  Hotels are classified by the Ministry responsible for tourism;  other tourism facilities are not yet classified.
77  Prices are fixed freely by the operators. 
70. Tourism was one of the Congo's specific commitments under the GATS78, subject to prior 
authorization by the Minister responsible.  The co mmitments related, in particular, to hotel and 
restaurant, tour operator and tourist guide services, as well as entertainment services.  In the near future, the Congolese authorities intend to update  the regulatory framework for travel agencies
79, 
together with that for hotels and restaurants.80  It should be noted that there are no specific restrictions 
on investment in tourist facilities. 
71. The Congo has been a member of the Worl d Tourism Organization since 1979 and the 
Congolese Travel Agents Association (ANAVCO) is  a member of the Africa Travel Association 
(ATA).81 
(iv) Telecommunications and posts82 
72. The telecommunications and posts subsector, reorganized as from 200183, comprises the 
Société des postes et de l'épargne du Congo  – SOPECO (Congolese Posts and Savings Company), 
responsible for postal services, postal che ques and the national savings bank;  the Société des 
télécommunications du Congo  – SOTELCO (Congolese Telecommunications Company), which still 
has a monopoly of basic telecommunications services84;  and two mobile tele phone companies, Celtel 
                                                      
75 "Interview avec Mme Aimée Mambou Gnali, Ministre de la Culture et des Arts, chargée du 
Tourisme, 18 février 2002" (in French only).  Av ailable at:  http://www.winne.com [14 May 2006]. 
76 Ministry of Foreign Affairs (France), "Travel advisory", 30 May 2006 (in French only).  Available 
at:  http://www.diplomatie.gouv.fr/fr/conseils-aux-voyageurs _909/pays_12191/congo_12306/index.html [3 June 2006]. 
77 Order No. 2710/MCAT-CAB of 26 March 2004. 
78 WTO document GATS/SC/21 of 15 April 1994. 
79 Decree No. 83/853 of 22 November 1983. 
80 Decree No. 84/078 of 19 January 1984. 
81 http://www.africa-ata.org 
82 French Embassy in the Congo, Economic Missi on in Brazzaville (2006b);  BafD/OECD (2005);  
"Interview avec M. Jean Dello, Minist re des Postes et Télécommunications, 27 mars 2002" (in French only).  
Available at:  http://www.winne.com [14 May 2006]. 
83 Ordinance No. 8-2001 of 1 July 2001. 
84 Ordinance No. 11-2001 of 1 July 2001, amended in 2003.  In February 2003, Parliament repealed the 
presidential ordinance of July 2001.  SOTELCO then lo st its status as a State-owned company and became a 
single-member limited company managed by a general administrator and a deputy administrator.  On 28 February 2003, the Council of Ministers appointed the new directors. WT/TPR/S/169 Trade Policy Review 
Page 66 
 
 
(whose GSM licence was granted in 1999) and MTN (formerly Libertis Télécoms, which received a 
GSM licence in 2000). 
73. The density of land lines is low (0.5 lines pe r 100 inhabitants), and some 15,000 subscribers 
are served by the SOTELCO.  Internet access is only po ssible in the large towns,  mainly in Internet 
cafés;  leased links are provided by satellite.  Th e number of mobile telephone subscribers exceeded 
570,000 in 2005 (Table IV.5) and represents an an nual turnover of more than CFAF 60 billion for 
(aggregate) investment of CFAF 70 billion in the two networks at the end of 2004. 
74. The regulatory framework for opening up te lecommunications services to competition came 
into effect in 1997.85  T h e  Direction générale de l'administration centrale des postes et 
télécommunications – DGACPT (Directorate-General of the Central Posts and Telecommunications 
Administration) acts as the regulatory authority.86  It has been given responsibility for handling 
licence applications (licences are issu ed by the Minister responsible)87;  determining and collecting 
the duties, taxes, charges and f ees in the subsector in the Congo88;  and administering and controlling 
radio frequencies.  Interconnection services and the related costs are negotiated between the parties 
concerned, but if there is disagreement the DGAC PT intervenes.  Other communications costs are 
freely fixed by the operators. 
Table IV.5 
Basic telecommunications indicators, 2002-2005 
 2002 2003 2004 2005 
Fixed telephony     
Number of SOTELCO subscribers 15,084 14,690 14,760 15,907 
Teledensity (number of fixed lines per 100 inhabitants) 0.49 0.46 0.46 .. 
Jobs 331 331 331 331 
Mobile telephony     
Number of Celtel subscribers .. .. 262,190 386,000 
Number of MTN subscribers 76,544 109,995 162,700 209,909 
Investment (CFAF milli on) 7,838 8, 073 11,448 8,701 
Jobs .. .. 361 409 
.. Not available. 
Source : Congolese authorities. 
75. SOTELCO is a single-member public limited co mpany with capital of CFAF 200 billion, 
whose workforce was transferred.  It currently h as three telephone exchanges with a total capacity of 
18,500 subscribers, two digital earth stations a nd two VSAT stations.  Land transmission links (by 
microwave) have been destroyed, but a project to  cover the whole country, incorporating a high speed 
dimension, appears to be under consideratio n with the equipment manufacturer Huawei 
Technologies.89  SOTELCO will soon be connected to  the SAT3/WASC/SAFE optical fibre 
submarine cable. 
76. Postal services are still a SOPECO monopoly, w ith the exception of packages weighing more 
than 2 kg., which are subject to competition (currently 14 operators).90  Postal services by air and sea 
                                                      
85 Law No. 14-97 of 26 May 1997. 
86 Decree No. 2003-169 of 8 August 2003. 
87 Decree No. 99-188 of 29 October 1999. 
88 Decree No. 2005-648 of 5 December 2005.  The amount of these duties,  taxes, charges and fees is 
established in Order No. 2711/MPTNCTC/MEFB of 7 March 2005. 
89 Actualit'Echos , "Philippe Mvouo présente sa feuille de route", 14 March 2005 (in French only). 
90 Article 4 of Ordinance No. 10-2001 of 1 July 2001. Republic of the Congo WT/TPR/S/169
Page 67 
 
 
operate fairly satisfactorily.  Air letters to or from Eu rope take three to six days.  For other continents, 
six to eight days are needed.  Packages sent by sea arrive in two weeks to three months. 
(v) Financial services 
(a) Banking services 
77. The Congo's banking sector comprises four approved commercial banks91 and two financial 
establishments.92  These handle import and export transactions as well as certain transactions by 
private persons (for example, the purchase of vehicles ), but are little involved in financing investment 
in the Congo.  Banking activities in the Congo are subject to the common banking regulations of the CEMAC;  the Central African Banking Commissi on (COBAC) controls the operating requirements 
for loan establishments, monitors the status of th eir financial situation and ensures respect for the 
profession's code of ethics.  According to the Co ngolese authorities, three out of four banks had 
positive net equity that enabled them to comply with the rules in force at 31 July 2005. 
78. After hearing the opinion of the COBAC, the Congolese Minister responsible for finance 
approves loan establishments and their auditors.  The COBAC must voice its opinion within a period 
not exceeding six months;  if it does not do so within this period, it is deemed  to have given a positive 
recommendation.  The minimum capital required fo r a banking establishment is CFAF 100 million 
and the requirements for their establishment are the same for foreigners and Congolese nationals 
alike.
93 
79. The Congo has also had a flourishing micro-credit market since the introduction of the 
COBAC regulations in 200294, with which all micro-finance establishments must comply before 
April 2007.  The Congo has 75 micro-finance establi shments, of which 34 are independent and the 
remainder belong to the Mutuelles Congolaises d'Épargne et de Crédit  – MUCODEC (Congolese 
Mutual Savings and Loan Company) network (Table IV.6);  nine establishments have been approved 
and 18 have received assent.  The boom in micro-fina nce is the result of the difficulties faced by the 
traditional banking sector in ensuring business financi ng in the Congo, even though problems caused 
by lack of professionalism in particular are still rife in this subsector. 
Table IV.6 
Micro-finance indicators, 2002-2004 
(CFAF million) 
 2002 2003 2004 
Deposits    
Independent micro-finance establishments 3 6,965 3,425 
MUCODEC 21 24,797 30,100 
Total 24 31,762 33,525 
Loans    
Independent micro-finance establishments 2 1,127 689 
MUCODEC 4 5,760 6,003 
Total 6 6,887 6,692 
Source : Congolese authorities. 
                                                      
91 BGFIBANK Congo (BGFI-Congo);  Congolaise de Banque  – LCB (Congolese Banking Company);  
Crédit Lyonnais Congo (C.L. Co.);  and COFIPA Investment Bank Congo (COFIPA). 
92 Mutuelles Congolaises d'Épargne et de Crédit  – MUCODEC (Congolese Mutual Savings and Loan 
Company);  and Société congolaise de financement  – SOCOFIN (Congolese Finance Company). 
93 Law No. 24-63 of 15 June 1963, as amended by Law No. 3-66 of 7 July 1966. 
94 Regulation No. 01/02/CEMAC/UMAC/COBAC. WT/TPR/S/169 Trade Policy Review 
Page 68 
 
 
(b) Insurance services 
80. The insurance market in the Congo has been liberalized since 1995.95  It comprises four 
companies:  Assurances générales du Congo  – AGC (Congolese General Insurance Company);  
Société d'assurances et réassurances du Congo  – ARC (Congolese Insurance and Reinsurance 
Company);  NSIA non-life and NSIA-life.  The following insurance is compulsory:  imports of goods 
of any kind must be insured with an approved insurance company in the Congo96;  automobile 
insurance97;  all-risk insurance for building sites and 10-year civil liability98;  and school insurance99.  
The non-life branch is the largest in terms of turnover (Table IV.7). 
Table IV.7 
Turnover in the insurance services market, 2000-2005 
(CFAF millions) 
 2000 2001 2002 2003 2004 2005 
Non-life branch 6,144 7,814 8,061 7,870 8,973 10,021 
Life branch 29 33 43 107 137 83 
Total excluding petroleum risks 6,174 7,847 8,104 8,093 9,110 10,104 
Petroleum risks .. 12,368 14,597 13,114 9,225 .. 
Overall total .. 20,216 2,270 21,208 18,336 .. 
.. Not available. 
Source : Congolese authorities. 
81. Congo has signed the treaty on the Inter-African Conference on Insurance Markets (CIMA), 
in effect in the franc zone.100  The CIMA comprises a Council of Ministers, a Regional Commission 
for Insurance Supervision, and a General Secretariat. 
82. Companies wishing to engage in insurance ope rations must be approved for one or more 
branches of activity.  The same company may not, however, offer several types of service, 
consequently, all insurance companies on the Congol ese market specialize in either non-life or life 
insurance.  A company established in the Congo ma y not cover risks situated outside the country;  
likewise, risks situated in the Congo may not be co vered by non-resident companies.  This type of 
cover is, however, possible within the framework of the community co-insurance under the CIMA.  
The minimum capital required by the CIMA Code fo r the establishment of an  insurance company is 
CFAF 500 million for public limited companie s and CFAF 300 million for mutual insurance 
companies. 
83. The Minister responsible for finance gives appr oval after considering the application file on 
the basis of the following criteria:  the capacity of the shareholders, administrators and directors of the 
company to administer and manage the company to be  set up;  the viability of the business plan in the 
light of the financial estimates, the investment pr ogramme and the estimated financial position;  and 
the general state of the market. 
                                                      
95 Order No. 933/MEFPP-CAB of 22 March 1995. 
96 Order No. 1838/MEFB-CAB of 24 December 1999. 
97 Decree No. 70/203 of 12 June 1970. 
98 Decree No. 85/755 of 1 June 1985. 
99 Ordinance No. 28/71 of 30 September 1971. 
100 Law No. 13/94 of 17 June 1994. Republic of the Congo WT/TPR/S/169
Page 69 
 
 
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