Republic of Congo - 7-State-Owned Enterprises Republic of Congo - State Enterprises
During the 1970s and 1980s, the Congolese economy was dominated by state-owned companies. However, the promulgation of Law 24/94 on August 10, 1994, which introduced a framework for privatization, and its addendum, Law 10/95 introduced on April 17, 1995, which identified specific sectors to be privatized, ushered in a new economic era that is receptive to national, private and foreign investments. In the wake of privatization, the remaining number of State-Owned Enterprises (SOE) is quite small. The primary actors are in the energy & utility sector; these include the National Oil Company (SNPC), the Electric Company (SNE), and the Water Supply Company (SNDE).
Existing SOEs report to their respective line ministries -- the extent is dependent on the relative influence of the SOEs’ leadership. Corporate governance regulation of SOEs requires non-state corporate directorship. In practice, this requirement is not met, most notably by SNPC.
There is no official published list of SOEs. Private companies may compete with public companies under the same terms and conditions, and in some cases have successfully won contracts sought by SOEs. SOEs are subject to budget restraints under the law. For the SOEs operating in the non-oil sector, these restraints seem to be sufficiently monitored, and the SOEs are subject to civil society and media scrutiny. SNPC, though, has not been well-monitored and continues to present transparency challenges.
SOEs are required to publish annual reports, which must be audited by state auditors. SOEs are, in theory, subject to the same domestic accounting rules as non-SOEs.
Post is not aware of SOEs in the domestic market receiving non-market based advantages from the host government. Generally speaking, SOEs do not compete directly with U.S. or other private companies, and there is a lack of transparency with regard to government intervention in the private sector.
Privatization Program
The Republic of Congo does not currently have a specific program for privatization.
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