Republic of Congo - 1-Openness to & Restriction on Foreign Investment Republic of Congo - Foreign Invest.
Policies Towards Foreign Direct Investment
FDI in the Republic of Congo has increased in recent years, topping $5.5 billion in 2014, making the country the top FDI destination in Central Africa for that year. However, more than 90 percent of FDI inflows are concentrated in the oil sector. Diversifying beyond oil activities is a key government priority to stimulate growth and development.The country has pledged to undertake a variety of legislative, regulatory and institutional reforms to improve the investment climate in order to become an emerging market economy by 2025. The Republic of Congo’s Minister for Planning and Integration reiterated the government’s intent to improve the investment climate through reforms and endorsed World Bank recommendations in January 2016.
There are no known laws or common practices that discriminate against foreign investors, including U.S. investors, by prohibiting, limiting or conditioning foreign investment in a sector of the economy. The U.S. and the Republic of Congo signed an Investment Agreement in 1994.
In January 2013 the Congolese government created an Agency for the Promotion of Investments (API) to promote economic diversification through expanding the pool of external investors. Throughout 2013 the government put in place regulatory reforms with the stated goal of improving the business environment.
The country established a High Committee for Public-Private Dialogue (“Le Haut Comité du Dialogue Public-Privé”) in 2012 which is intended to be a forum for ongoing dialogue between the Congolese government and the private sector. However, the committee has not convened any meetings to look into the business climate.
Limits on Foreign Control and Right to Private Ownership and Establishment
There are no known limits on foreign control for investment overall. This should be reviewed on a case-by-case, and industry-by-industry basis.Other Investment Policy Reviews
The government has not undergone any third-party investment policy reviews (IPRs) in recent years.Business Facilitation
The Republic of Congo has no operational business registration website.In order to create a business in the Republic of Congo, investors must provide the Business Formalities Center (“Centre de Formalités des Entreprises” or CFE) with two copies of the company by-laws, two copies of capitalization documents (e.g. a bank letter or an affidavit), a copy of the company’s investment strategy, the company-approved financial statements (if available), and ownership documents or lease agreements for the company’s offices in the Republic of Congo.
The CFE is designed to provide all services under one roof (the so-called “guichet unique” or one-stop shop) to facilitate the opening and closing of businesses. CFE has offices in Brazzaville, Pointe-Noire, N’kayi, Ouesso, and Dolisie.
The cost of registering a business depends on the type of company one is trying to register. Registration fees range from $244 for a small company with capitalization below $2,000, to $4,500 for a large company with capitalization exceeding $200,000.
A local partner is generally not required to start a business in Republic of Congo, but country managers must either be Congolese or foreign nationals who have been resident for two or more years. The entire business registration process should take an average of three weeks according to the CFE, though the World Bank’s Ease of Doing Business Index puts the required time at closer to two months. Depending on the sector or nature of the business, there may be additional government licensing and permit requirements.
Despite the existence of the CFE, a highly centralized decision-making process often hinders FDI. At the same time, some U.S. companies have experienced lengthy delays in their efforts to invest in the Republic of Congo due to overlapping authority within the country’s decision-making apparatus.
The Investment Charter, established by Law 6–2003 on January 18, 2003, offers a range of guarantees to foreign investors, including no discrimination or disqualification on all types of investment and equal treatment under Congolese law.
In addition, Republic of Congo is party to the Organization for the Harmonization of Business Law in Africa (OHADA), a commercial code adopted by 16 African countries that governs investments and business practices.
Outward Investment
The Republic of Congo government has no specific policy to promote outward investment, and does not restrict domestic investors from investing abroad.
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