Central African Republic WT/TPR/S/183 
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IV. TRADE POLICY AND PRACTICE BY SECTOR 
(1) INTRODUCTION  
1. The Central African Republic considers agricultu re (including livestock, fishing, hunting and 
forestry) to be one of the engines of the economi c growth necessary for the country's reconstruction 
and for poverty alleviation.  The country has subs tantial natural resources and a climate that is 
favourable to agriculture, but these potential advantag es have not yet been fully exploited.  Some 
75 per cent of the population works in agriculture, which accounts for around 50 per cent of the GDP.  Priority has been given to reviving the coffee and cotton subsectors, formerly the most important cash 
crops in the country, and in the medium term to  producing food crops and breeding livestock.  New 
regulatory frameworks have been drawn up for for estry, fishing and aquaculture with a view to 
sustainable management of resources. 
2. The exploitation of alluvial and eluvial diamond deposits, as well as forest s, is currently the 
major source of export earnings;  the official tr ade in diamonds appears to operate according to the 
Kimberley Process requirements.  Industrialization of the mining sector is one of the objectives in the PRSP;  in order to achieve this, a new Mining Code  was introduced in 2004, t ogether with a special 
regime for the exploitation of uranium.  This st rategy should make it possible to strengthen the 
industrial fabric, currently made up of a number of  food processing companies (sugar, palm oil) or 
companies producing wage goods (soap, mineral wate r).  Some goods, for example mineral water and 
sugar, are relatively protected through tariff and no n-tariff measures;  overall, the tariff structure does 
not encourage the development of the food processi ng industry.  Moreover, the protection given to 
food products exacerbates poverty in urban ar eas and encourages fraud and illegal trade. 
3. In addition to the problems of reconstructi on, an environment that is not on the whole 
favourable to business (including the high cost of b asic inputs and the extra cost involved for land-
locked countries) is one of the concerns of comp anies established in the Central African Republic.  
Water, electricity, banking services, business cons ultancy services, basic fixed telecommunications 
and transport are not easily available and their cost is  often exorbitant.  The Government's role in the 
supply of certain basic services no doubt explains the limited nature (only consultancy services for 
agricultural enterprises, and tourism services) of the Central African Republic's commitments under the WTO General Agreement on Trade in Services (GATS). 
(2) A
GRICULTURE AND RELATED ACTIVITIES  
(i) Overview1 
4. The Central African Republic covers an area of 623,000 km2, with forests in the south-west 
and wooded savannah in the centre and north-east.  It comprises seven administrative departments:  Plateaux, Équateur, Yadé, Kagas, Fertit, Haut-Oubangui a nd Bangui, divided into  16 prefectures.  The 
country is sparsely and unevenly populated (mos tly in urban areas and along the main roads). 
5. The Central African Republic has natural res ources and a climate that is favourable to 
agriculture.  There is abundant rainfall and a la rge and dense hydrographic network;  the latter 
depends on two basins (the Oubanguian in the sout h and the Chadian in the north) present throughout 
the country.  The agricultural potential is estimated  to be some 15 million hectares, of which only 
600,000 to 700,000 are cultivated annually.  It also has 5.4 million hectares of dense forest with a 
potential of 3.8 million hectares of exploitable forest , of which 2.8 million are the subject of operating 
                                                     
 
1 The majority of the information has been supplied by the Central African authorities.  The documents 
are the following:  Government of the Central African Republic (2006);  NEPAD/FAO (2005);  BEAC (2006). WT/TPR/S/183 Trade Policy Review 
Page 48 
 
 
concessions.  Some 9.3 million hectares, out of a tota l of 16 million, are used for livestock comprising 
3.2 million tropical livestock units (TLU), essentially tr anshumant.  As regards freshwater fishing and 
aquaculture, the annual potential is estimated at  between 50,000 to 100,000 tonnes a year, while 
production ranges from 21,000 to 51,000 tonnes. 
6. Four ecological agricultural zones can be iden tified from south to north:  the forest or 
equatorial zone, called the forest -coffee zone, in the south-west;  the Guinean zone, called the food 
crop-livestock zone, in the central-western area;  the Sudan-Guinean zone, called the cotton-food crop 
zone, which extends from west to east north of th e forest-coffee zones and food crop-livestock zones;  
and the Sudan-Sahel zone, called the hun ting and tourism zone, in the north-east. 
7. Mixed farming is the most common method, together with the breeding of small livestock 
(goats, sheep, pigs and poultry).  Farms are usua lly quite small (1.5 to 2 hectares) and because 
rudimentary production methods are used, yields are low.  With the exception of the private coffee 
and oil palm plantations, the majority of farms come under the traditional property regime.  This 
means that most of the land is not register ed and there is no official property market. 
8. The Central African Republic produces a la rge part of its population's food needs 
(Table IV.1), with the basic food being cassava.  There are however wide regional disparities as 
regards supply because the areas of production are is olated:  only 5 per cent of the 15,000 km network 
of rural and agricultural roads is in a good state, 57 per cent is in a bad state and the remainder can no 
longer be used.  The needs of the urban population are primarily met through imports from neighbouring countries.  Foodstuffs (wheat flour, re fined sugar and tobacco) account for most of the 
country's total imports (Table AI.2). 
Table IV.1 
Production of food crops, 1993-1994 and 1998-2006 
(in '000 tonnes) 
 1993-94 1998-99 1999-00 2000-01 2001-02 2003-04 2004-05 2005-06 
Cassava 575.0 607.6 559.0 560.4 561.7 564.3 565.6 578.2 
Groundnuts 72.0 101.7 110.0 115.9 121.9 133.6 139.5 145.4 
Millet and 
sorghum 27.8 41.0 45.0 47.6 50.3 53.1 55.0 56.9 
Maize 58.0 88.0 95.0 101.0 107.0 119.0 125.0 131.0 
Paddy rice 24.5 33.0 36.0 37.7 39.4 29.7 31.9 46.2 
Sesame 7.8 18.5 21.0 23.1 25.3 42.8 44.5 34.1 
Pumpkins 12.9 19.2 23.0 24.3 25.5 27.9 29.1 30.4 
Source : Central African authorities. 
9. The food crops, livestock, hunting and fishing and forestry subsectors accounted respectively 
for around 55 per cent, 22 per cent, 11 per cent and 12 per cent of the agricultural GDP in 2003. 
(ii) Agricultural policy 
10. According to the PRSP in rural areas the agricultu ral sector's performance is very poor.  Over 
three decades, production of crops and animals, wh ich employs 75 per cent of the country's labour 
force and accounts for almost 50 per cent of the GDP , only experienced low average annual growth of 
some 2 per cent, less than the rate of population growth, estimated to be 2.5 per cent in the 2003 census.
2  Consequently, the living standards of the rura l population have declined and poverty in rural 
areas has progressed.  The major cau ses are: the low productivity of rural activities;  the isolation and 
                                                      
2 Government of the Central African Republic (2006), page 3. Central African Republic WT/TPR/S/183 
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the lack of adequate basic economic and social infr astructures;  the absence of a policy to diversify the 
population's sources of income;  the lack of organization among the actors;  the insufficient capacity of the structures supporting the rural environment;  as  well as police harassment and insecurity in the 
hinterland.
3 
11. The Agricultural Master Plan is the basic document defining the Central African Republic's 
agricultural policy.4  The exploitation of fisheries, for estry and hunting resources in the Central 
African Republic is or will shortly become the s ubject of special subsectoral policies defined by 
regulatory frameworks (section (iii) below).  The ma in ministries involved in the agricultural sector 
are:  the Ministry responsible for rural developm ent;  and the Ministry responsible for water and 
forests.  The former has set up two structures – the Agence centrafricaine de développement 
agricole  – ACDA (Central African Agricultural Development Agency), and the Agence nationale de 
développement de l'élevage  – ANDE (National Livestock Developm ent Agency) – in order to provide 
services to farmers and breeders respectively.  Farm ers and breeders are organized in associations or 
groups to meet the needs of the various subsectors.  The Centre rural d'éducation et de formation  – 
CREF (Rural Education and Training Cent re) serves the rural population, and the Institut 
centrafricain de recherche agronomique  – ICRA (Central African Agronomic Research Institute) 
develops seeds and methods adapted to agri culture in the Central African Republic. 
12. The principal tax-related support measures for farmers/breeders are:  the minimum flat-rate 
tax (IMF) on personal income tax at a rate of  3 per cent of the commercial value of products5;  
exemption from the tax on agricultural profits earne d from exploiting land used exclusively for food 
crops whose cultivated area does not exceed 5 hectares6;  and exemption from the business licence fee 
for farmers/breeders, hunters, fishermen and those using dug-out canoes.7  Food processing 
companies are eligible for tax and customs be nefits under the National Investment Charter 
(Chapter II(5)). 
13. As for investment in rural development, the au thorities have estimated the State's contribution 
in 2004 to have been CFAF 4.2 billion (4.3 pe r cent of national investment excluding the sums 
devoted to improving transport in rural areas).  Needs at the national level are:  opening up the interior 
by upgrading highways and rural roads;  incr easing the profitability and competitiveness of key 
sectors of the economy;  and building up human resources.8 
14. Using the ISIC definition, the simple averag e of tariffs imposed on agricultural products 
(including livestock, fishing and forestry) is 23.2  per cent (Table AIV.1), higher than the overall 
average of 18.2 per cent.  Attention should also be  drawn to the mixed escalation of tariffs in the food 
processing industry because of the relatively high leve l of protection given to unprocessed agricultural 
products (Chapter III(2)(iv)(a)).  Th e latter are also the subject of reference values when applying 
duties and taxes at the customs level (Chapter  III(2)(ii)).  These measures help to limit the 
competitiveness of Central African goods, particularly  processed agricultural products.  Internal taxes 
are also levied on agricultural products (Chapter III(2)(iv)(b)). 
                                                      
3 Ibid., pages 5-6. 
4 The Agricultural Master Plan, adopted in D ecember 2000, was updated following the political 
stabilization in 2003 with the assi stance of the FAO.  It comprises a summary and two volumes dealing 
respectively with strategic orientations for the food  crop production and livestock breeding subsectors. 
5 General Taxation Code, Article 9. 
6 Ibid., Article 38. 
7 Ibid., Article 187. 
8 NEPAD/FAO (2005). WT/TPR/S/183 Trade Policy Review 
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15. Refined sugar is the subject of an import monopol y:  90 per cent of imports are controlled by 
a privately-owned company SUCAF-RCA (Chapter III(4)(i v)).  The trend in the price of agricultural 
products on domestic markets is monitored (Chapt er III(4)(ii)).  Agricultural products, including 
foodstuffs, are subject to sanitary and phytosanita ry measures and their import may be banned, for 
example, there is a ban on importing live avian species and their products from origins recognized as 
affected by avian influenza (Chapter III(2)(vii)). 
(iii) Policy by subsector 
(a) Coffee9 
16. Coffee production has plummeted since the p eak of over 20,000 tonnes reached during the 
1988-1989 season, with 2,514 tonnes during the 2004-2005 season, of which 2,503 tonnes were 
exported (Table IV.2).10  Processing is essentially on a small scale and consists of dehusking the 
coffee beans before they are exported.  The sharp decline in coffee production can be explained by the 
collapse in its global price from 1990 onwards (w hose consequence was the abandonment of coffee 
growing for more lucrative food crops), as well as by the elimination of support for the subsector.  Currently, the coffee subsector is deemed to be at ri sk and this does not encourage its financing.  The 
authorities hope to revive the coffee subsector  with the support of development partners. 
Table IV.2 
Exports of Robusta green coffee, 2000-2005 
Destination 
Season Number of approved 
buyers Number of 
 exporters Volume exported 
(Tonnes) WTO Member 
countries Non-Member 
countries 
2000-01 29 22 6,246.9 2,684.0 3,562.9 
2001-02 24 13 6,015.6 2,928.0 3,087.6 
2002-03 23 13 2,272.4 1,098.5 1,174.4 
2003-04 24 15 3,957.0 1,053.5 2,873.5 
2004-05 22 9 2,502.9 1,127.2 1,375.7 
Source : Central African authorities. 
 
17. The Office de réglementation de la commercialis ation et du contrôle du conditionnement des 
produits agricoles  – ORCCPA (Office for the regulation of th e marketing and control of processing of 
agricultural products is the government structure r esponsible for ensuring the satisfactory performance 
of the coffee marketing season in all the pr oduction areas (the ORCCPA only deals with coffee 
because there is insufficient productio n of other agricultural products).11  The ORCCPA sets the date 
for opening the coffee harvesting and marketing seas on, as well as the date from which coffee imports 
are allowed (Chapter III(2)(v)).  It also determ ines indicative domestic prices for coffee for the 
purposes of collection by the buyers and exporters it has approved.  The prices are set on the basis of the Robusta coffee price on the London forward mark et and take into account the quality of the 
coffee, the processing and transport costs;  they are readjusted during the season according to price 
fluctuations.
12  The ORCCPA controls the quality of commercial coffee exported.  The fee it receives 
for this is lower for exports to member countries of the International Coffee Organization (ICO) than 
those to non-member countries13;  the income received from these fees provides the bulk of the 
                                                      
9 Government of the Central African Republic, Ministry of Rural Development (undated b). 
10 ORCCPA (2005). 
11 Law No. 91.013 of 25 September 1991. 
12 Order No. 025/MDR/MCIPSP of 6 April 2006. 
13 Robusta green coffee exported to  ICO member countries is subject  to a fee of CFAF 25/kg whereas 
the fee is CFAF 50/kg for non-member countries of the ICO, for example, Sudan and Chad. Central African Republic WT/TPR/S/183 
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ORCCPA's own financial resources and their decline has made it even more difficult for the 
ORCCPA to provide public services.  Coffee exports  are exempt from the 2 per cent export duty and 
coffee exporters are exempt from the 3 per cent IMF. 
18. Up until 1998, the coffee subsector received strong support from the Agence centrafricaine de 
développement de la caféiculture  – ADECAF (Central African Coffee-Growing Development 
Agency).  Since then, it has no longer received sup port for production but only for the marketing of 
coffee.  Currently, coffee growers may receive seedli ngs free of charge from the ICRA or may obtain 
them from other producers.  Coffee growers produce, ha rvest and dry the coffee.  They must sell their 
output to buyers approved by the ORCCPA on the ba sis of the indicative prices published by the latter 
at the beginning of each season.  Buyers process the co ffee, mainly by dehusking it, and then put it in 
bags for export.  Export is the responsibility of  the operators approved by the ORCCPA, which may 
also be buyers. 
19. Imports of coffee other than coffee seeds are subj ect to customs duty of 30 per cent under the 
CEMAC's CET.  In addition to the customs duty, th e imported coffee is also subject to a CFAF 10 tax 
per kilogram.  It should also be noted that coffee may not be imported outside  the periods determined 
(Chapter III(2)(v)).  Such measures discourage th e development of coffee processing in the Central 
African Republic. 
(b) Cotton14 
20. The Central African Republic's cotton subsect or underwent considerable upheaval between 
2001 and 2003 because of the mass movement of cotton growers following the recurrence of military 
and political tension in the central and north-west ern regions where cotton is grown.  Production 
reached a peak of 46,037 tonnes during the 1997- 1998 season, before falling to some 2.3 tonnes 
during the 2002-2003 season, subsequently rising to 5.5 tonnes during the 2004-2005 season.  In normal times, this subsector employs some 100, 000 cotton growers as well as 800,000 people in 
related activities. 
21. The leading actor in the subsector, the Société centrafricaine de développement des textiles  – 
SODECATEX (Central African Textile Development Company)
15, was set up in 2002 after the 
former government-owned company, the Société cotonnière centrafricaine  – SOCOCA (Central 
African Cotton Company) was liquidated because it was no longer able to support producers;  in 
2004, the State withdrew management of th e subsector from the SODECATEX and decided 
thenceforward to manage it through an office while aw aiting the arrival of a new strategic partner.  
The State is involved in discussions with the privately-owned company DAGRIS, present in the 
cotton subsector in several countries in the subregio n, in order to introduce reforms spread out over 
five years which should lead to the creation of  a new cotton company in the Central African 
Republic.16 
22. The seeds are currently produced by the ICRA and made available to the State office, which 
provides them free of charge, together with inpu ts (on credit) to cotton growers organized into 
Groupements d'intérêt rural  – GIRs (rural interest groups).  The GIRs each organize their own harvest 
of seed cotton, which is bought by the State office at the selling price fixed by using the Waddell 
                                                      
14 See http://r0.unctad .org/infocomm/anglais/ cotton/chain.htm#repCA [29 December 2006]. 
15 The State's share is 15 per cent, that of local private interests is 36 per cent, while the foreign 
strategic partner has 49 per cent. 
16 According to the authorities, the Agence française de développement  - AFD (French Development 
Agency) has undertaken to support this strategic partnership operation with a subsidy of €7 million.  This project is one of those being considered by the AFD for 2007 (French Development Agency (2006a)). WT/TPR/S/183 Trade Policy Review 
Page 52 
 
 
method.17  The loans for the season are directly deducte d from the planters' income.  The State office 
transports seed cotton to one of two plants (Bossa ngoa or Bambari) for ginning;  transport services 
(by road) are provided by private entities.  Th e cotton lint is exported whereas the dehusked and 
crushed cotton seed is sold by the office (CFAF 23/kg) to HUSACA (a private company) to produce 
oil.  The State office had a deficit of so me CFAF 400 million for the 2005-2006 season. 
23. According to the ISIC (Rev. 2) definition, the simple average of the tariffs applied in the 
textile industry is 21.3 per cent (Table AIV.1), above  the overall average of 18.2 per cent.  It should 
also be noted that there is mixed escalation of tari ffs in this subsector because of the relatively high 
level of protection given for cotton thread prepared for sale and printed fabrics (30 per cent).  Internal 
taxes are also levied on these products (Chapter III(2)(iv)(b)). 
(c) Sugar 
24. As part of the privatization programme (Cha pter III(4)(iv)), the assets of the former State-
owned company Société de gestion des sucreries centrafricaines  – SOGESCA (Central African Sugar 
Management Company) were taken over by a privately-owned company, Sucrière en Afrique  – 
SUCAF-RCA (African Sugar Company), set up in 2003.  The protocol on privatization of the 
SOGESCA determines the organization of the Ce ntral African sugar market up to 2008.  The 
SUCAF-RCA has undertaken to invest CFAF 5 bill ion in modernizing the sugar subsector, expanding 
production capacity up to 15,000 tonnes, and also to  employ the vast majority of the SOGESCA's 
personnel.  In return, the SUCAF-RCA benefits fro m the following measures:  a monopoly of 90 per 
cent of sugar imports, a measure notified to the WT O for which the Central African authorities cited 
Article XIX of the GATT 199418;  the fixing of a reference value for applying duties and taxes on 
sugar (Chapter III(2)(ii));  duty and tax concessi ons on all imports of machinery and equipment 
needed for the SUCAF-RCA's investment progra mme;  and exemption from corporation tax for 
five years (Chapter II(5)). 
25. The regulatory body for sugar imports , established under this framework19, sets quarterly 
import quotas according to production by the SUCAF- RCA, consumption, exports and stocks.  This 
body allocates 90 per cent of the quarterly quotas to the SUCAF-RCA, under the terms of the protocol 
on privatization of the SOGESCA, and distributes the remaining 10 per cent pro rata among importers 
that meet the required conditions. 
26. The SUCAF-RCA is the only sugar producer in the Central African Republic and started to 
produce refined sugar once again during the last qua rter of 2004;  it produces 7,000 tonnes annually 
with difficulty.  Sugar cane is produced by the Société centrafricaine du sucre  – SOCASUC (Central 
African Sugar Company), a privately-owned company.  Local sales of refined sugar were 22,715 tonnes in 2005.  The main effect of th e import monopoly held by the SUCAF-RCA and the 
high taxation on sugar has been a sharp increase in  sugar prices on the domestic market, which has led 
to illegal imports.
20 
27. According to the ISIC (Rev. 2) definition, the simple average of the tariffs applied to the 
sugar industry is 27.5 per cent (Table AIV.1), above  the overall average of 18.2 per cent.  Internal 
                                                      
17 This formula results from a report and takes into  account the following elements when determining 
the minimum guaranteed price to producers:  the cost of  basic inputs (fertilizers and pesticides) and labour;  
amortization of small tools;  the level of intensification of cotton production;  and the global price of cotton. 
18 WTO document G/TBT/N/CAF/3 of 1 December 2004. 
19 Order No. 03.028 of 5 November 2003. 
20 "Les raisons de l'importation frauduleuse du sucre en RCA ", ("Reasons for the illegal import of 
sugar into the CAR"), 5 October 2005, http ://www.leconfident.net [2 9 December 2006]. Central African Republic WT/TPR/S/183 
 Page 53 
 
 
taxes are also imposed on sugar (Chapter III(2)(iv)(b)).   The high taxation on s ugar, a staple product, 
means that households have even less money to spend. 
(d) Palm oil 
28. The State still owns 100 per cent of the Centrafricaine des palmiers  – CENTRAPALM 
(Central African Palm Oil Company), a State-owned enterprise producing palm oil and included in the 
privatization programme (Chapter III(4)(iv)).  Th is enterprise faces recurrent financial problems 
because of the age of its palm plantations (s ome 2,500 hectares, of which 400 hectares are under 
water), the obsolescence of its machinery and e quipment and its limited processing capacity.  These 
problems affect its competitiveness, which is also badly hit by the import of products from 
neighbouring countries.  State intervention is lim ited to setting a reference value for imports of 
unrefined palm oil, together with subsidies to th e CENTRAPALM if it has operating deficits to cover. 
29. The production of palm oil and palm kernel oil were 1,846 and 240 tonnes respectively in 
2005, compared with 2,400 and 300 tonnes in 2004.  This decrease is  the result of the decline in 
production of palm kernels.  Some 70-80 per cen t of CENTRAPALM's turnover comes from selling 
oil to the privately-owned companies HUSACA and SAVEX to manufacture soap. 
30. According to the ISIC definition, the simple aver age of the tariffs applied in the edible fats 
and oils industry is 20.8 per cent (Table AIV. 1), above the overall average of 18.2 per cent.  
Unrefined palm oil is also one of the categories of product subject to reference values for imports 
(Chapter III(2)(ii)).  Internal taxes are also le vied on palm oil (Chapter III(2)(iv)(b)).  The high 
taxation on edible oils exacerbates th e lack of money in households. 
(e) Livestock21 
31. Cattle raising is practised by around 25,000 he rders using traditional methods and represents 
one of the key subsectors of the Central African  Republic's agriculture.  However, it has seen 
considerable upheavals in recent years as a result of  the exodus of Bororo herders and their cattle 
following serious problems of insecurity in the hinterland.22  Meat from livestock and hunting is 
currently the main source of animal protein for the population; in normal times, the average annual 
consumption is some 15-18 kg/inh. 
32. The authorities consider that pastures in the Central African Republic could easily support 
over 8 million head of cattle under current conditions (extensive traditional methods), compared with 
the current level of 3.2 million head.  The authoriti es are considering developing this subsector with a 
view to increasing demand for meat because of the gr owing population in the country and subregion.  
Improving epidemiological monitoring and the security of livestock breeders, promoting breeders and 
developing the rearing of small animals are some of the measures envisaged to achieve this.  In 
principle, it is compulsory to use the State slaught erhouses in order to ensure that sanitary regulations 
are observed, but nevertheless illegal slaughtering continues.  The authorities hope to extend their control of the livestock subsector in order to securi tize tax revenue and related income and to ensure 
                                                     
 
21 Government of the Central African Republic, Ministry of Rural Development (undated b).  See also 
French Embassy in Cameroon, Economic Mission in Yaoundé (2005b). 
22 According to a press communiqué from the Ministry of Rural Development, dated 26 June 2006, 
unrest in rural areas, especially in herders' camps, has persisted for several years.  The continued insecurity has 
seen the kidnapping of children in camps, obliging many herders to sell their animals in order to pay the ransom.  
Those still in possession of livestock decided to leave th e country in order to flee from insecurity that had 
become chronic.  Viewed at:  ww w.reliefweb.int [19 March 2007]. WT/TPR/S/183 Trade Policy Review 
Page 54 
 
 
the hygienic quality of the meat consumed by the population and in the countries to which it is 
exported. 
33. There are four State entities involved in the livestock subsector:  the Fonds interprofessionnel 
de développement de l'élevage  – FIDE (Interprofessional Livestock Development Fund), which deals 
with veterinary aspects;  the Agence nationale de développement de l'élevage  – ANDE (National 
Livestock Development Agency);  the Fédération nationale des éleveurs centrafricains  – FNEC 
(National Federation of Central African Stockbreed ers), which provides breeders with support;  and 
the Société d'État de gestion des abattoirs  – SEGA (State Slaughterhouse Management Company).23  
Those in the private sector are:  the Association nationale des éleveurs centrafricains  – ANEC 
(National Association of Central African Stockbreeders), the Association centrafricaine des 
commerçants de bétail  – ACCB (Central African Associa tion of Cattle Traders), and the Association 
nationale des bouchers centrafricains  – ANBC (Central African National Association of Butchers). 
34. According to the regulatory framework for stockbreeding24, sanitary and quality control of 
products of animal origin applies at all st ages of their marketing, import and export.25  There are 
135 official cattle markets in the Central African Rep ublic.  All cattle to be exported must be sold in 
one of the nine terminal market s identified by the authorities.26  The main cattle market in the Central 
African Republic is in Bangui;  it is known as PK 13 (" Point kilométrique 13 ").  On this market, cattle 
from the interior, from Chad and Sudan are, in prin ciple, registered and sold either for domestic 
consumption or for export (mainly towards the tw o Congos);  in 2004, 50,124 head were sold at 
PK 13, of which 47,558 were bred locally.27  It would appear that the pr inciple of national treatment is 
not fully respected as regards meat because the quality control tax is CFAF 50/kg of imported meat 
(of any kind) compared with CFAF 10/kg for meat (of any type) produced locally or exported.28 
35. Since 1987, the Central African subregion has had a Communauté économique du bétail, de 
la viande et des resources halieutiques  – CEBEVIRHA (Cattle, Meat and Fisheries Resources 
Economic Community)29, which became a Commission in 2001.  In December 2000, confronted with 
the epidemic of bovine spongiform encephalopa thy (BSE), the Commission banned the import of 
meat products (bovine meat, meat of small ruminant s, pig meat, poultry, farmed fish, bone and meat 
meal) in order to protect herds and human health30;  this ban no longer appears to be applied 
systematically by the CEMAC member countries.31  Within the CEBEVIRHA, transfers of cattle on 
the hoof must be accompanied by an international passport for cattle of Community origin.32 
36. The customs tariff applicable to cattle on the hoof is 30 per cent, for bovine meat it is 20 per 
cent and for cattle hides 10 per cent.  Internal  taxes are also levied on livestock products 
(Chapter III(2)(iv)(b)). 
                                                      
23 The ANDE is responsible for combating contagious diseases by controlling the quality of animal 
products and movements and transactions involving cattle;  it deals with sanitary inspection in slaughterhouses 
and slaughtering sites not the responsibility of the SEGA.  See Arditi, C. (2002). 
24 Law No. 65/61 of 3 June 1965. 
25 Decree No. 75/079 of 15 February 1975. 
26 Order No. 0020/MPMR/CAB/2001 of 25 April 2001. 
27 Government of the Central African Republic, Ministry of Rural Development (2005). 
28 Order No. 0018/MPMR/CAB/2001 of 25 April 2001. 
29 Act No. 20/87/UDEAC-475  of 18 December 1987. 
30 Decision No. 08/UEAC-199-CEBEVI RHA-CM-03 of 14 December 2000. 
31 French Embassy in Cameroon, Economic Mission in Yaoundé (2005b). 
32 Decision No. 1-94-CEBEVIRHA-018-CE-29. Central African Republic WT/TPR/S/183 
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(iv) Fishing and aquaculture33 
37. Commercial fishing in the Central African Republic  occurs on a small scale in rivers and fish 
farming in three fish farms (Landjia (B angui), Paya (Bouar), and Bengué (Bambari)).34  Annual 
average consumption of seafood is 3 kg/inh.  Fish caught near centres of consumption is consumed 
fresh whereas in the interior it is processed on the spot because of the lack of conservation facilities, 
either by smoking or by salting and drying.  A larg e part of the fish consumed is imported from 
countries in the subregion, especially the two Congos.  The average level of tariff protection for fishing activities is 24.8 per cent, with rates ranging from 10 to 30 per cent (Table AIV.1). 
38. The Central African Fishing and Aquaculture C ode is a draft law awaiting enactment through 
an ordinance from the Head of State.
35  The draft Code aims to create a regulatory framework for 
aquaculture in Central African waters  so as to boost its development. 
(v) Forestry36 
39. Forestry is one of the key subsectors of the Ce ntral African Republic's agriculture.  Through 
export duties and forestry royalties, it constitutes an important source of fiscal earnings (in 2006 
around CFAF 8 billion, equivalent to one quarter of fiscal revenue excluding grants);  a large source 
of export earnings (Chapter I(4));  value added for the first stage of timber processing;  and jobs for 
some 4,000 people, while others derive th eir income indirectly from the subsector. 
40. The Central African Republic has 5.4 million hect ares of exploitable forests, almost all of 
which belong to the State.  Two major forest zon es can be distinguished:  that in the south-west 
(3.8 million hectares), which is almost all explo ited (either under a concession or in the form of a 
natural reserve);  and the Bangassou forest (1.6 million hectares) in the south-east, which is not 
exploited because not easily reached. 
41. The regulatory framework for forestry is  the Forestry Code, enacted in 1990.37  Under the 
Code, forestry companies must obtain a "managemen t and operating permit" (P EA), which determines 
the area of their concession and the conditions for expl oiting it.  PEAs are allocated for the lifetime of 
the company.  The areas under PEAs are subject to taxation determined  in the regulations and are the 
same for all companies:  leasing tax (CFAF 500/h ectare under the PEA);  logging tax (7 per cent of 
the reference price per m3);  and the reforestation tax (11 per cent of the reference price per m3 
exported, but only for species whose reference value exceeds CFAF 20,000/m3).  There are also duties 
and taxes on the export of products (Chapter III(3)(ii)). 
42. Around 2.8 million hectares are under concessions in the south-west of the country through 
nine PEAs divided up among eight forestry companies.  Logging follows major market trends with 
global prices in United States dollars (Table IV.3).   In 2005, production of  logs was some 454,400 m3, 
of which 48 per cent was processed into sawn timber (on the basis of a 3:1 ratio of logs to sawn 
timber), corresponding to production of 71,386 m3.  The wood exported goes by truck along the 
                                                      
33 This section is mainly based on information provided by the Central African authorities and the 
following document:  FAO (1996). 
34 Government of the Central African Republic, Ministry of Rural Development (2002). 
35 The Code would replace Ordinan ce No. 71/090 of 6 August 1971 on fishing, which does not appear 
to be implemented. 
36 This section is mainly based on information provided by the Central African authorities and the 
following documents:  International Tropical  Timber Organization (2006);  FAO (2005). 
37 Law No. 90.003 of 9 June 1990. WT/TPR/S/183 Trade Policy Review 
Page 56 
 
 
1,500 kilometres to the port of Douala in Cameroon.  The dominant species is Sapelli  and the leading 
export market is China. 
Table IV.3 
Production and export of timber, 2000-2005 
(m3) 
 2000 2001 2002 2003 2004 2005 
Logs 702,993 671,229 664,714, 512,711 513,848 459,402 
Sawn timber 102,353 109,327 97,314 52,827 69,281 71,386 
Plywood 1,500 1,776 2,016 1,521 1,563 1,434 
Processed logs 313,161 334,846 298,923 163,124 213,068 219,189 
Ratio of processing (percentage) 45 50 45 32 41 48 
Source : Central African authorities. 
 
43. Some of the main provisions of the Forestry  Code do not appear to be fully respected.38  
Forestry companies are in principl e obliged to process 60 per cent of the logs felled on the spot as of 
the third year of their establishment, but in fact  the processing ratio has only been around 48 per cent 
despite the benefits available under the National Inv estment Charter for such activities (Chapter II(5)).  
The Forestry Code does not have any provisions on penalties for such violations.  Furthermore, 
approved forestry companies are obliged to prepare a nd abide by a management plan to be included in 
the conservation, protection and forest management plan for the State's forests.  Nevertheless, the 
International Tropical Timber Organization (I TTO) only counted 650,000 hectares of concessions 
with forest management plans, of which 182,0 00 hectares met sustainable management criteria.39  
According to the authorities, the preparation of forest management plans that meet sustainable 
management criteria is the responsibility of the Stat e and should be finalized in the near future. 
44. With regard to the conventions and treati es signed and ratified by the Central African 
Republic, the latter has drawn up a draft Forestry Code awaiting enactment through an ordinance by 
the Head of State.  One of the main innovations in  the draft Code is a stronger ban on exporting logs 
and promoting the export of timber processed on the s pot.  Forestry companies that have been given a 
PEA will have to process at least 80 per cent of th e logs on the spot during a transitional period of 
three years, following which they will only be allowed to export wood in the form of finished or semi 
finished products.  Another innovation in the draf t Forestry Code concerns the introduction of the 
principle of sustainable management of forests into  the management plans, which remain compulsory.  
The sustainable management plan for State forest s in the Central African Republic would be in 
keeping with the Treaty on the Conservation and Su stainable Management of Forest Ecosystems in 
Central Africa;  this Treaty, to wh ich the Central African Republic belongs40, concerns forests in the 
Congo Basin. 
                                                      
38 NEPAD/FAO (2005). 
39 The ITTO (2005) 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". 
40 This Treaty, which established the Commission on Forests in Central Africa (COMIFAC), was 
adopted at the Summit of Heads of State of Central Africa , held at Brazzaville on 4 and 5 February 2005.  The 
implementation of the convergence plan agreed for this purpose is intended to be financed by donors (the Partnership for forests in the Congo Basin (PFBC), launched at the Johannesburg Summit in September 2002). Central African Republic WT/TPR/S/183 
 Page 57 
 
 
45. According to the ISIC definition, the simple av erage of tariffs applied to imported products in 
the timber subsector is 28.6 per cent (Table AIV. 1), above the overall average of 18.2 per cent.  
Internal taxes are also levied on timber (Chapter III(2)(iv)(b)). 
(3) MINING , ENERGY AND WATER  
(i) Mining products41 
46. Mining production in the Central African Repub lic consists of small-scale exploitation of 
diamond-bearing alluvial and eluvial deposits42, and to a lesser extent, small-scale gold mining.  
Central African diamonds are recognized as bei ng of particularly high quality.  The diamond 
subsector employs around 80,000 artisanal miners, 298 approved collectors and purchasing bureaux;  
it is the source of income of around 600,000 people in mining zones. 
47. Until 2005, the Central African mining sector appe ared to be in decline:  according to the 
authorities, total diamond production/export recorded by the purchasing bureaux in 2005 was 382,636 carats (amounting to some CFAF 32.6 billion), whereas in 2002 production was 
398,914 carats (for an amount of around CFAF 34.5 b illion).  This decline is the result of the 
insecurity and its implications for the subsector's financing;  interference by the authorities in the 
production and marketing of diamonds;  and mass ive smuggling (facilitated by the difficulty of 
controlling borders) in a subsector that is inadequa tely managed and in which the rules of competition 
have been distorted by the special aut horizations given to certain operators.
43  In 2005, 
production/export of gold by the purchasing burea ux was 10,372 grammes (with a value of around 
CFAF 56 million). 
48. In 2004, the authorities introduced a new Mining Code in order to promote private investment 
and industrialization, one of the objectives in the PRSP.44  In 2001, the State signed a protocol of 
agreement with the company Aurafrique for the indus trial exploitation of a deposit which, according 
to the authorities, should soon start operations.  At the end of 2004, the State also signed a protocol of agreement with the company De Beers for diamond exploration and exploita tion.  The Mining Code 
governs prospecting, exploration, exploitation, possession, movement and processing of all mineral 
substances in the Central African Republic with the exception of uranium and hydrocarbons, which 
are covered by special provisions.  The Mining Code is implemented by the Ministry responsible for 
mining. 
49. According to the Mining Code, the State owns  the mineral substances on national territory.  
The mining titles defined in the Code are: prospecti ng authorization (only given to natural persons of 
Central African nationality, for one year, renewabl e once only);  reconnaissance permit (valid for one 
year, renewable once only);  exploration permit (valid  for three years, renewable twice);  small-scale 
exploitation authorization (valid for three year s, renewable once only for two years);  special 
exploitation permit (valid for two years, renewabl e as long as the exploitation is continuing);  and 
exploitation permit (25 years, renewable for ten-year  periods).  The State may take a share of 10 per 
                                                     
 
41 The main sources for this section are the informa tion provided by the Central African authorities and 
the following references:  French Embassy in Ca meroon, Economic Commission in Yaoundé (2005d);  
U.S. Geological Survey (2005). 
42 Diamonds come from "kimberlite pipes", volcanically derived cone-shaped pipes.  Some of the 
diamonds have been transported by river systems over hund reds of kilometres.  The kimberlite deposits and the 
alluvial deposits can usually be distinguished.  While industrial technology can be used to exploit kimberlite 
deposits, which are usually concentrated, alluvial deposits, on the other hand, are exploited on a small scale. 
43 French Embassy in Cameroon, Economic Mission in Yaoundé (2005d). 
44 Ordinance No. 04.001 of 1 February 2004. WT/TPR/S/183 Trade Policy Review 
Page 58 
 
 
cent or more in the capital of mining companies hol ding prospecting or exploitation permits without 
payment;  the share depends on the size of th e deposit and the nature of the mineral. 
50. Furthermore, ownership, possession, sale, expl oitation, transport, shipment, export and 
processing of rough stones and raw metals are only author ized subject to special rules.  For example, 
an artisan miner must sell his production to coll ectors.  Processing workshops must obtain their 
supplies from the collectors or purchasing bureaux.  Export is restricted to purchasing bureaux, 
mining companies and mining cooperatives who se mining deposits have been valued at 
CFAF 40 million or more;  the Central African Re public participates in the Kimberley Process (KP), 
whose regulations are followed at the local level by  the KP Permanent Secretariat on the basis of the 
valuations made by the Bureau d'évaluation et de contrôle du diamant et de l'or  - Becdor (Bureau for 
the Valuation and Control of Diamonds and Gold). 
51. Mining titles are subject to fixed charges;  ad valorem  taxes on mining production and small-
scale mining taxes are determined in the Finance Law (Chapter III(3)(ii)).  The taxable base for 
exports is defined by the Becdor (Chapter III(3)(i));   total duties and taxes on the official export of 
diamonds amount to around 9 per cent, which encourages fraud.45  Machinery and equipment needed 
for prospecting and exploitation (including site ve hicles) are eligible for the temporary admission 
regime (with suspension of import or export duties and taxes). 
52. Import of mining substances is subject to payment of duties and taxes, including a tariff at the 
maximum rate of 30 per cent, VAT of 19 per cent a nd excise duty of 25 per cent on precious stones.  
This tariff structure does not encourage investment in the local processing of precious stones and is 
partly responsible for the fact that Central African diamonds are currently only cut abroad. 
53. As regards uranium, a special regulatory frame work was adopted at the end of 2006 in order 
to facilitate exploitation of the Bakouma deposit by the privately-owned company URANIM.  These 
regulations generally follow those in the Mining Code  with regard to mining titles and the criteria for 
granting them, eligibility for the temporary admi ssion regime for the machinery and equipment 
needed for prospecting and exploitation, as well as th e imposition of surface royalties at rates fixed in 
the finance laws.  Moreover, the special provisions include an ad valorem  fee payable on sales.  They 
also include the obligation to process radioactive mine rals in the Central African Republic before they 
are exported, as well as to manage the waste and ma rket the radioactive substances in accordance with 
international rules. 
(ii) Petroleum products and natural gas46 
54. The Central African Republic does not currently  produce either petroleum or natural gas.  
Nevertheless, according to the authorities, there ar e promising signs along the border with Chad and 
these could be explored in the near future.47  Prospecting, exploration, exploitation and transport of 
hydrocarbons by pipeline through Central Africa n territory are governed by the Petroleum Code48, 
whose provisions are implemented by the Minist ry responsible for hydrocarbons;  the Code is 
currently being revised.  According to its provisions , the State owns the fossile substances on national 
territory. 
                                                      
45 French Embassy in Cameroon, Economic Mission in Yaoundé (2005d). 
46 The main sources for this section are the information provided by the authorities. 
47 The RSM Production Corporation has an exploration permit granted in 2002, but suspended 
since 2004. 
48 Ordinance No. 93.007 of 25 May 1993. Central African Republic WT/TPR/S/183 
 Page 59 
 
 
55. The country's petroleum needs are met throug h imports;  in the absence of any domestic 
refining capacity, only refined products are impor ted.  Activities downstream of the petroleum 
subsector (import, storage, re-export, shipment, tr ansport, distribution and marketing of hydrocarbons 
and its by-products) were privatized in 1999 and the State-owned company Centrafricaine des 
pétroles – PETROCA (Central African Petroleum Company) was liquidated.49  Service stations, 
grouped into two lots (A and B), ar e supplied by Total-Centrafrique and Trading d'exportation de 
pétrole brut et de produits pétroliers  – TRADEX (Unrefined Oil and Petroleum Products Export 
Trading Company), while the Société de gestion des actifs logistiques  – SOGAL (Logistical 
Management Company) is responsible for stori ng finished petroleum products.  Total-Centrafrique  
and TRADEX have exclusive distribution rights un til 2011.  Afterwards, other approved operators 
will be able to distribute petroleum products and ha ve access to the SOGAL's structures.  The latter 
also has exclusive rights that end in 2011. 
56. The price of petroleum products marketed and c onsumed on the domestic market is controlled 
with a maximum price set for each product.50  The maximum price at the pump for each product 
(gasoline, petroleum, diesel fuel) is determined quart erly by an interministerial order according to a 
scale of rates.51  The scale takes into account cost factors su ch as global prices, the cost of transport 
from Douala or from other points, the duties and ta xes applicable, handling fees and storage fees, the 
distance to distribution points outside the capita l, Bangui, as well as a margin for the SOGAL and 
approved distribution companies (15 per cent each).  It also includes a single tax on petroleum products (TUPP);  this allows the Government to in crease or lower the amount of the net taxes levied 
on petroleum products when necessary. 
(iii) Electricity
52 
57. The electricity subsector in the Central Africa n Republic is not highly developed because of 
the large size of the country and its low population density, the effects of a decade of socio-political 
unrest on the network infrastructure and the poor performance by the State-owned company Énergie 
Centrafricaine  (ENERCA) responsible for the subsector.  Only 3 per cent of the population has access 
to electricity;  the authorities hope to bring this figure up to 10 per cent by 2008.  Supply (18.75 MW) 
is lower than demand (24 MW) in Bangui, so lo ad shedding and outages are frequent.  ENERCA's 
production is mainly from hydroelectric sources53, because thermal generation is little used owing to 
                                                      
49 Law No. 98.012 of 28 September 1998 liberalized and regulated downstream activities in the 
petroleum subsector.  The Framework Agreement of 29 October 1999 signed by the Central African State, the companies Elf Oil Africa, Total Outre Mer and Shell Cameroun laid down the conditions for privatization of 
downstream activities in the petroleum subsector.  In 2 000, following the withdrawal of Shell Cameroun and the 
merger of the Total and Elf groups, the Framework Agreement was the subject of several amendments in the form of three additional clauses.  Total-Centrafrique and Trans-Oil took over the two service station lots.  
Following the liquidation of Trans-Oil, the State issued an invitation to tender in order to find another distributor 
and ensure a certain degree of competition.   The tender was awarded to TRADEX. 
50 Annex 2 to Additional Clause No. 1 to the Framework Agreement of 29 October 1999 on 
privatization of downstream petroleum activities.  The tariff scale, as well as the related details, were the subject 
of Finance Law No. 97.009 of 2 July  1997;  Decree No. 06.931  of 29 December 2006;  and Interministerial 
Order No. 111/MFB/MMEH of 30 December 2006. 
51 Interministerial Order No. 112/MFB/MMEH/MCIPME  of 30 December 2006 set the ceilings for the 
first quarter of 2007. 
52 The main sources for this section are the inform ation provided by the authorities and the following 
reference:  French Embassy in Cameroon, Economic Mission in Yaoundé (2006a). 
53 Boali 1 and Boali 2, with a total capacity of 18.75 MW, are around 80 kilometres from Bangui and 
are linked to the capital by two medium-voltage lines.  Boali 1 dates from 1954 and Boali 2 from 1976.  These 
facilities have only undergone some partial revision and are in a highly dilapidated state, according to the 
authorities.  This explains the load shedding and outages experienced in Bangui. WT/TPR/S/183 Trade Policy Review 
Page 60 
 
 
the high cost of fuel.54  In the provinces, ENERCA generates electricity from thermal sources;  
secondary plants are supplied with electricity for four  to five hours a day.  Companies established in 
the Central African Republic often generate their ow n electricity and since the enactment of the new 
Electricity Code in 2005 have been able to resell part of this to other clients.55 
58. In the Central African Republic, the town of Mobaye (608 kilometres from Bangui) is the 
only one to have regular electricity supplies because it  imports electricity generated by a plant in the 
neighbouring Democratic Republic of the Congo.  U nder the CEMAC's CET, such imports are subject 
to customs duty of 10 per cent as well as VAT at 19 per cent. 
59. According to the Code, the production, trans port, import, export, distribution and sale of 
electricity are open to competition;  nevertheless, approval by the Ministry, following a technical 
opinion by the Agence de régulation du secteur de l'électricité  (Autonomous Regulatory Agency for 
the Electricity Sector) (currently being set up), is  required for this purpose.  Approved producers may 
supply their customers through the ENERCA network or may set up their own networks.  The selling 
price for electricity is determined in an order issu ed by the Minister responsible for energy; the scale 
applied dates from 8 Febr uary 2006 (Table IV.4).56  The prices are not the same throughout the 
country.  The ENERCA regularly finds it difficult to collect its revenue, particularly from State-
owned enterprises. 
Table IV.4 
Electricity ratesa, March 2007 
(In CFAF) 
Bangui and Mobaye 1st bracket 2nd bracket 3rd bracket 
Low voltage    
Lighting 76.56/kW 82.70/kW 89.31/kW 
Energy 64.80/kW 69.76/kW 75.35/kW 
Mixed 75.53/kW 81.57/kW 88.10/kW 
a Public lighting is billed at CFAF 69.92/kW; the electricity rate  is CFAF 160.84/kW in secondary centres.  The medium voltage 
rate consists of a standing charge of CFAF 2,749.50/kW, pl us a variable component (day, night, etc.) with a penalty for 
exceeding the amount of CFAF 26.15/kW.  A special charge of CFAF 10/kW is invoiced and transferred by the ENERCA to the 
Autonomous Regulatory Agency for the Electricity Sector; a c ontribution of CFAF 2/kW is also levied by the ENERCA. 
Source : Order No. 017/2006/MMEH/DIRCA B/DGEof 8 February 2006. 
(iv) Water57 
60. The Société de distribution d'eau centrafricaine  – SODECA (Central African Water 
Distribution Company) is responsible for supplying dr inking water to 23 per cent of the population in 
the country's eight major towns.  Its problems include the obsolescence of its facilities (around 50 per 
cent is lost for technical reasons) and the difficult y of collecting its revenue.  The State once again 
took over the management of the SODECA in 2001 fo llowing the withdrawal of the strategic partner 
(SAUR) responsible since 1991.  At present, the State is focusing on reducing SODECA's technical losses.  The selling price of water is currently fixed in an order.
58  Production, transport, distribution 
                                                      
54 Of the six generators (whose theoretical output is 15.5 MW) in the thermal plant in Bangui, only one 
(of 2.5 MW) is in service. 
55 Ordinance No. 05.001 of 1 January 2005. 
56 Order No. 017/2006/MMEH/DIRCAB/DGE of 8 February 2006. 
57 Pro-Invest (2005). 
58 The rates applied to individuals, companies and entities are:  bracket 1 up to 10 m3 (CFAF 150/m3);  
bracket 2 up to 40 m3 (CFAF 250/m3);  bracket 3 over 40 m3 (CFAF 450/m3).  For government departments and 
similar bodies, the rates are: bracket 1 up to 10 m3 (CFAF 150/m3);  bracket 2 up to 40 m3 (CFAF 250/m3);  
bracket 3 over 40 m3 (CFAF 395/m3). Central African Republic WT/TPR/S/183 
 Page 61 
 
 
and sale of water were liberalized in 2006.59  The Ministry responsible for water resources provided 
31 per cent of the rural population with drinking wate r in 2005.  In addition, the project for managing 
natural resources (PARN) deals with the manageme nt of water resources at the village level. 
(4) MANUFACTURING SECTOR60 
61. Manufacturing in the Central African Republic is  on a relatively modest scale (Table I.1) and 
mainly consists of food processing companie s such as the sugar company SUCAF-RCA 
(section (2)(iii)(c)), CENTRAPALM (section (2)(iii)(d)), EL-AKHRAS, which produces mineral water, MOCAF, producing beer, HUSACA and SAVE X for soap, and SOCACIG for tobacco, as well 
as bakeries and cake manufacturers.  Manufacturing also includes cotton ginning (section (2)(iii)(b)), 
the manufacture of aluminium sheets (ALUBA, COLALU), various chemicals (SOCAGI, CENTRAJEL, SOCAP), and wood processing enterpri ses, as well as workshops making clothing and 
other small-scale activities. 
62. The incentives for the country's industrial deve lopment are mostly set out in the National 
Investment Charter (Chapter II(4));  there ar e also accompanying measures (for example, the 
CCIMA's centre for business formalities).  The simple  average of the rates a pplied for the MFN tariff 
on manufacturing (ISIC definition) is 18.1 per cent (Table AIV.1), with a large number of manufactures subject to the maximum rate of 30 pe r cent and also to other import duties and taxes 
(Chapter III(2)(iv)(b)).  The tariff structure im posed under the CEMAC's CET does not encourage 
investment in the food processing industry because of  the relatively high cost of agricultural raw 
materials, exacerbated by their relatively strong tariff  protection.  In addition, the high level of actual 
protection in the majority of industries, with a fe w exceptions (Chart III.2) affects the competitiveness 
of Central African manufactures on foreign markets. 
63. Manufactures are also subject to internal tax es such as VAT and, in some instances, excise 
duty (Chapter III(2)(iv)(b)).  The highest rate of ta xation applies to alcoholic beverages (93 per cent) 
comprising customs duty at 30 per cent, excise duty at 25 per cent and VAT at 19 per cent.  Locally-
produced non-alcoholic beverages are exempt fro m the 10 per cent excise duty on competing imports. 
64. According to the authorities, even when tim es are normal, manufacturing faces substantial 
economic constraints (lack of investment, the small size of the domestic market, insufficient basis for 
agricultural production, lack of skilled labour, ill-adap ted structures and support systems, absence of a 
category of entrepreneurs, insufficient information,  weak basic infrastructure and high fiscal pressure) 
as well as geographic constraints (the country is land-locked).  In principle, Central African companies have access to markets in  the subregion under the generalized preferential tariff scheme 
(TPG) of the CEMAC (Chapter III(2)(iv)(c)), but they appear unable to take advantage of this:  no 
Central African company has been approved by the CEMAC. 
                                                     
 
59 Ordinance No. 06.001 of 12 April 2006. 
60 The main sources for this section are the information provided by the authorities. WT/TPR/S/183 Trade Policy Review 
Page 62 
 
 
(5) SERVICES61 
(i) Transport 
(a) River transport62 
65. River transport, along the Oubangui and Cong o rivers up to Kinshasa (in the Democratic 
Republic of the Congo) and Brazzaville (in the Republic  of the Congo) is the historical transport and 
trade axis in the Central African region.  The Société centrafricaine des transports fluviaux  – 
SOCATRAF (Central African River Transport Company) was set up to provide river transport services.  Since the early 1990s, however, Central African economic operators have mainly been 
using the land route between Bangui and the port of  Douala in Cameroon for their trade, abandoning 
the river.  Consequently, traffic has decreased sh arply, especially the export of timber, although the 
river is still used to import petroleum products  during the favourable season (Chart IV.1). 
66. Since the peace process got under way in the Democratic Republic of the Congo (DRC), the 
river has once again become an optio n for lowering the cost of shipping imports and exports to and 
from the Central African Republic.  For imports, th e river route takes longer (12-15 days from 
Brazzaville or Kinshasa), but the cost of transport is  20 to 60 per cent less.  It can be navigated around 
eight months a year (May-December or June-Janua ry);  a dam at Palambo would make it navigable 
throughout the year, but is still at the project stage.   More intensive use of the river for transporting 
goods and passengers means replacing the SOCRATAF' s equipment, with funding from the AFD and 
the private partner, the Bolloré Group.  In addition, the Service commun d'entretien des voies 
navigables  – SCEVN (Joint Maintenance Service for Navigable Routes) will also have to be 
rehabilitated;  this bilateral en terprise (Democratic Republic of th e Congo/Republic of the Congo) is 
responsible for maintaining all the navigable rout es in the Congo-Oubangui-Sangha Basin, extending 
for 2,700 kilometres. 
67. The regulatory framework for river transport includes the CEMAC/DRC Internal Navigation 
Code (1999) and various protocols and agreements with the DRC and the Republic of the Congo.  The 
Central African Republic is a member of the Ma ritime Organization for West and Central Africa 
(MOWCA). 
                                                     
 
61 Ibid. 
62 AFD (2006b). Central African Republic WT/TPR/S/183 
 Page 63 
 
 
050100150200250
1980
1981
19821983
1984
1985
1986
1987
19881989
1990
19911992
1993
1994
1995
1996
19971998
1999
20002001
2002
2003
2004
2005
2006Chart IV.1
River traffic, 1980-2006
'000 tonnes
Source: Central African authorities.ImportsExportsTotal
 
 
(b) Air transport 
68. Between the country's political stabilization in 2003 and 2005, there was an upward trend in 
air transport as concerns aircraft movements (10 pe r cent), passengers (42 per cent) and freight (48 per 
cent).  The vast majority of this traffic goes thr ough the international airport (Bangui-M'Poko);  there 
are also 40 airports in the interior.  International transport is provided by Cameroon Airlines, Toumai 
Air Tchad, Afriquiyah and Air France;  the presence of foreign airlines in the Central African Republic and their traffic rights are governed by bi lateral agreements (in th e cases of airlines from 
non-members of CEMAC) or by the CEMAC Civil Aviation Code (for airlines from 
CEMAC members). 
69. The regulations in effect do not allow cabotage.
63  In the interior, the supply of air transport 
services is the subject of special regulations64, implemented by the Ministry responsible for transport.  
The Directorate General of Civil Aviation is res ponsible for managing airports and the ASECNA for 
airport services. 
(c) Road transport 
70. There are around 24,307 km of roads in the Central African Republic, of which 9,307 km are 
classified roads and 700 km are sealed roads (corres ponding to 7 per cent of sealed roads).  The road 
from Bangui to Douala (Cameroon), along which a la rge share of the Central African Republic's 
imports and exports are transported, is only sealed for 392 km out of a total distance of 1,500 km.  All 
                                                      
63 Law No. 65.063 of 29 July 1965 and the CEMAC Civil Aviation Code of 21 July 2000. 
64 Law No. 65.063 of 29 July 1965. WT/TPR/S/183 Trade Policy Review 
Page 64 
 
 
goods transported along this road are by truck, desp ite the insecurity problem s, which remain a major 
concern. 
71. The Bureau d'affrètement routier centrafricain  – BARC (the Central African Road Charter 
Bureau) has a monopoly of international road transpor t and also manages the road terminal in Bangui.  
Exercising the profession of international road tr ansporter is regulated in the Central African 
Republic65, as is the profession of international road transporter of goods in  general within the 
CEMAC.66  In principle, road traffic between Bangui and Douala is restricted to transporters of 
Central African or Cameroonian nationality.  The sharing of cargo between these countries is managed by the BARC and the Bureau de gestion de fret terrestre camerounais  – BGFT (Cameroon 
Land Freight Management Bureau), according to th e following ratio:  60 per cent for transporters 
using Central African-registered vehicles;  and 40 per cent for those using Cameroon-registered 
vehicles.
67  In practice, however, the authorities indicate th at the share of Central African transporters 
is well below 40 per cent (according to data from the BARC it was around 20 per cent in 2005), 
because the Central African-registered vehicles are obsolescent.  The management bureaux levy a 
4 per cent commission excluding tax on the cost of transport services supplied, with a minimum 
standing charge.  When the BARC charters, an add itional commission of 2 per cent is also levied.  
International road transport of goods is subject  to floor prices determined by the regulations68, 
systematically updated according to the trend in fuel prices. 
(ii) Tourism 
72. The Central African Republic has considerable tourism potential because of its assets 
(equatorial forest, fauna and flora, indige nous cultures, wildlife and hunting tourism, inter alia ).  All 
forms of tourism (business, leis ure and wildlife), however, have declined as a result of the military 
and political upheavals in the country from 1996 onwards:  arrivals (by air in Bangui's classified hotels) fell from 13,881 in 1995 to 7,498 in 1998, but then rose to 8,156 in 2004, according to official statistics.  This decline, as well as the State's failure  to pay its debts, has caused a deterioration in the 
financial situation of tourism companies, whic h are no longer in a position to invest in the 
infrastructure needed to me et visitors' expectations. 
73. Accommodation is owned by private investors a nd the State (five hotels in Bangui and two in 
the provinces, and a network of informal accommoda tion facilities).  In Bangui, the occupancy rate 
was around 60 to 70 per cent in 2006, despite the in adequate quality of accommodation.  In addition 
to rehabilitating the infrastructure, the developm ent of tourism depends on stabilizing the security 
situation in some areas in the inte rior and in neighbouring countries.
69  Consequently, sightseeing (in 
Bayanga) and business travel are currently the prin cipal reasons for visiting the Central African 
Republic;  business travel accounts for around two thirds  of arrivals.  Hunting remains an attraction 
for some visitors;  it is governed by special regul ations with provisions c oncerning hunting permits 
and the export of carcases and trophies.70 
                                                      
65 Decree No. 90.043 of 12 February 1990. 
66 CEMAC Regulation No. 15/03-UEAC-612-CM-11, implemented in the Central African Republic 
through Interministerial Order No. 032/04/MET/MEPEFBCI/CAB of 23 June 2004. 
67 Convention of 22 December 1999 on land transpor t of goods between the Re public of Cameroon and 
the Central African Republic.  A sta nding joint technical commission on transport is responsible for assessing 
the state of relations regarding transport between the two countries.  It meets on a regular basis. 
68 Interministerial Order No. 025/MFB/METAC/MCIPME of 4 July 2006. 
69 French Ministry of Foreign Affairs (2006). 
70 Law No. 84.045 of 27 July 1984. Central African Republic WT/TPR/S/183 
 Page 65 
 
 
74. Decree No. 01.242 of 14 September 2001 governs the exercise of tourism activities.  The 
Decree prescribes that accommodation facilities must be  authorized by the Minister responsible for 
tourism, and food and beverage services and tourism operators require approval by the Minister.  The 
implementing texts govern the activities of tour opera tors, travel agencies, travel bureaux and tourist 
guides71, and the approval of establishments providing food and beverage services.  Until 1996, hotels 
were classified by the Ministry responsible for tourism, in principle according to international 
standards (more precisely those of the UDEAC);  other tourism facilities have never been classified. 
75. Investment in tourism facilities is not the subject  of any special restrictions and the rates are 
freely fixed by operators;  a draft investment charte r to boost tourism is currently being approved at 
the national level in order to promote upgrading of th e infrastructure.  Tourism is currently promoted 
by disseminating information on a specially-adapted site.72  The Central African Republic made 
specific commitments on tourism under the GATS73 concerning in particular hotel and restaurant 
services, tour operators, and tourist guides. 
76. The Central African Republic has been a me mber of the World Tourism Organization 
(UNWTO) since 1995. 
(iii) Telecommunications and postal services74 
77. The telecommunications subsector comprises the Société centrafricaine des 
télécommunications  – SOCATEL (Central African Telecommunications Company)75, which still has 
a monopoly of the supply of basic telecommunicati ons services (fixed telephony and telex) and for 
which the privatization project is well under way;  together with three mobile telephony companies:  
Telecel (whose GSM licence dates back to 1996) , Nationlink (whose GSM licence dates from 2004), 
and A CELL (which started up in 2005).  Vodacom,  established in the Democratic Republic of the 
Congo (on the other side of the Oubangui Rive r) also proposes mobile telephony services covering 
Bangui, although it is not authorized to do so. 
78. The Central African Republic has low teledensity  (0.24 lines per 100 inhabitants), with some 
9,680 subscribers supplied by SOCATEL in 2005.  Te ledensity also depends on access to electricity, 
which is still poor (section (3)(iii)).  The number of mobile telephone subscribers, on the other hand, 
exceeded 160,000 in 2005 (Table IV.5).  Internet  access is only possible in Bangui and Berberati, 
particularly in some Internet cafés and business centres in hotels;  the links leased out to individuals are satellite-based. 
79. Although the regulatory framework for opening up telecommunications services to 
competition dates back to 1996
76, the Agence chargée de la régulation des télécommunications  - ART 
(Telecommunications Regulatory Agency) only started to operate in 2004.  The ART manages frequencies, grants licences and levies fees and other charges for various telecommunications services.  The obligation to provide universal fixed telephony services is in principle the responsibility 
of SOCATEL, but how they are to be financed is not specified.  Such obligations are not yet 
applicable to mobile telephony.  The annual cost of  GSM licences is CFAF 1 billion plus 1 per cent of 
                                                     
 
71 Foreign tourist guides accompanying groups of foreigners may subcontract their services to an 
approved Central African agency. 
72 Viewed at:  www.tourisme-rca.info. 
73 WTO document GATS/SC/17 of 30 August 1995. 
74 French Embassy in Cameroon, Economic Mission in Yaoundé (2006b);  Ministry of 
Communications, Post and Telecommunications (undated). 
75 This joint venture is 60 per cent owned by the State and 40 per cent by France Câbles et Radio . 
76 Law No. 96.008 of 13 January 1996. WT/TPR/S/183 Trade Policy Review 
Page 66 
 
 
annual turnover.77  The ART also acts as an arbitrator for interconnections, for which the agreements 
are negotiated among operators.  Fixe d and mobile telephony rates are fr eely determined by operators;  
the ART only acts if there are anti-competitive practi ces.  The import, marketing and use of satellite 
terminals are regulated.  Furthermore, telecommuni cations equipment must be approved by the ART. 
Table IV.5 
Basic telecommunications indicators, 2002-2006 
 2002 2003 2004 2005 2006 
Fixed telephony  
Number of subscribers  9,081 9,124 9,047 9,680 .. 
Teledensity (number of fixed lines pe r 100 inhabitants) 0.239 0.234 0.226 0.240 .. 
Jobs .. .. 164 224 273 
Mobile telephony      
Number of TELECEL subscribers 20,514 24,729 40,947 50,558 67,503 
Number of NATIONLINK subscribers .. .. 18,354 27,927 32,226 
Number of A-CELL subscribers .. ..  16,925 60,430 
Investment (CFAF millions) .. .. 825 6,376 11,871 
.. Not available. 
Source : Central African authorities. 
80. The Office national des postes et de l'épargne  - ONPE (National Post and Savings Office) is 
responsible for administering postal services and the national savings bank (section (iv)).78  It has a 
monopoly of postal services, but may transfer part of its monopoly to private operators established in 
the Central African Republic.79  In 1998, the ONPE signed an authorization agreement with the 
company DHL in order to allow the latter to propose express courier services80;  the ONPE also offers 
an express courier service through its subsidiary EMS.  The time taken for letters from the Central 
African Republic to reach Europe is around 12 days, whereas for letters from Europe it is 
approximately 5-7 days. 
(iv) Financial services 
(a) Banking services81 
81. The banking subsector in the Central African Republic comprises three approved commercial 
banks.82  These banking institutions primarily grant short-term loans to support import-export 
transactions and transfer advances to the Treasury; they are not involved to any great extent in 
financing investment in the Central African Re public.  Their activities have seen a downturn since 
2000 owing to a liquidity crisis caused by the accumulation of unpaid debts by the State and 
government-owned enterprises. 
82. The BEAC sets the ceiling lending rate and the floor borrowing rate (15 per cent and 4.25 per 
cent respectively in March 2007).  VAT is levied on interest (lending and borrowing).  A 0.25 per cent 
                                                      
77 Ordinance No. 03.004 of 27 March 2003. 
78 Law No. 94.012 of 22 November 1994. 
79 Interministerial Order No. 001/MPT/SG/98 of 2 March 1998. 
80 Order No. 010/MPT/CAB/CMP/ICP/DGONPE/98 of 20 November 1998. 
81 French Embassy in Cameroon, Economic Mission in Yaoundé (2005c). 
82 The Banque internationale pour la Centrafrique  (BICA-groupe Fortis), taken over by ECOBANK;  
the Commercial Bank Centrafrique  (CBCA-Fotso group);  and the Banque populaire ma roco-centrafricaine  
(BPMC).  The State has a holding in both the CBCA and the BPMC. Central African Republic WT/TPR/S/183 
 Page 67 
 
 
commission applies to sums transferred by banks or by  post to countries in the franc zone (other than 
BEAC member countries) and 0.50 per cent to transfers outside the franc zone.83 
83. Banking activities in the Central African Republic must respect the common banking 
regulations of the CEMAC and national regulations;  the Commission bancaire de l'Afrique centrale  –
COBAC (Banking Commission of Central Africa) monitors the operating situation of loan 
establishments, ensures that their financial s ituation is sound and guara ntees respect for the 
profession's ethics.  The minimum capital required to set up a bank in the Central African Republic is 
CFAF 200 million.  After hearing the views of th e COBAC, the Minister responsible for finance 
approves loan establishments and their auditors.  The COBAC must make its opinion known within a 
period not exceeding six months;  after this time, the applicant may consider that the opinion is 
positive.  The criteria for establishment ar e the same for foreign and national banks. 
84. The Central African Republic also has a mi cro-credit market, which existed before the 
COBAC regulations were introduced in 2002.84  There is a requirement for all microfinance 
establishments within the CEMAC to comply with  the COBAC regulations before April 2005 and 
with the prudential regulations before April 2007.   The Central African Republic has two COBAC-
approved microfinance establishments.85  The development of microfinance can be explained by the 
problems in the traditional banking sector in guar anteeing the financing of business in the Central 
African Republic.86  Nevertheless, there are few microfinance institutions in the hinterland because of 
the insecurity that reigns there. 
(b) Insurance services 
85. The Central African Republic has two insurers  which offer coverage for fire, accident and 
other risks.87  Insurance is compulsory for automobiles a nd for construction sites;  the premiums are 
set by the operators, with a floor fixed by the Mi nister responsible for fina nce.  The total market 
amounts to some CFAF 1.7 billion. 
86. The Central African Republic has signed the Treaty on the Inter-African Conference on 
Insurance Markets (CIMA), in eff ect in the franc zone.  The CIMA has a Council of Ministers, a 
Regional Insurance Control Commiss ion and a General Secretariat. 
87. Companies wishing to provide insurance must seek approval for one or more branches of 
activity.  The same company may not, however, offe r several types of service so all insurance 
companies on the Central African market offer eith er non-life or life insurance.  A company set up in 
the Central African Republic may not cover risks outs ide the country;  likewise, risks in the Central 
African Republic may not be covered by non-resi dent companies.  These types of cover may, 
however, be offered under the Community co-insur ance framework within th e CIMA.  The minimum 
capital required under the CIMA Code in order to set up an insurance company is CFAF 500 million 
for public limited companies and CFAF 300 million for mutual societies. 
                                                      
83 Article 301, Chapter I, Book II, Title II , General Taxation Code, January 2006 edition. 
84 Regulation No. 01/02/CEMAC/UMAC/COBAC. 
85 Crédit mutuel centrafricain  and the Union centrafricaine des caisses d'épargne et de crédit . 
86 UNDP-CAR (undated). 
87 Union des assureurs centrafricains  (UAC) and Agence générale française  (AGF). WT/TPR/S/183 Trade Policy Review 
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88. The Minister responsible for finance approves a branch after examining the application on the 
basis of the following criteria:  the ability of the sh areholders, directors and managers to administer 
and manage the company to be set up; the solidi ty of the business plan shown in the estimated 
statement of accounts, the investment programme and the estimated financial situation;  as well as the 
general situation of the market. 
 Central African Republic WT/TPR/S/183 
 Page 69 
 
 
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