Full name: Republic of the Congo
Population: 3.8 million (UN, 2008)
Capital: Brazzaville
Area: 342,000 sq km (132,047 sq miles)
Major languages: French, indigenous African languages
Major religions: Christianity, indigenous African beliefs
SOVEREIGN RISK
The current government headed by Denis Sassou-Nguesso has been in power for over 10 years and appears stable. The specialist risk consultancy firm, Control Risks, has rated the Republic of the Congo as one of the lowest risk countries in Africa based on both security and political risk. Foreign investment seems to be encouraged. Magindustries has just committed to construction of a US$723 M potash plant with construction planned to commence in Q3, 2008. In May 2007 Mining Projects Development (MPD) signed agreements with the government and is ramping up the drilling program and concurrent studies for the Zanaga iron ore deposit 100 km east of the Mayoko deposit. The Congo electrical authority has committed to bringing a 25 MW power plant on-line by the end of this year with a 400 MW plant scheduled to be on-line by the end of 2010.
Prepared by GRD Minproc - Scoping Study
ROC OVERVIEW
The Republic of The Congo is a single party dominant Republic based in West Africa, and should not be confused with the volatile Democratic Republic of Congo (DRC). Major oil multinationals such as TOTAL (NYSE: TOT) and Chevron (NYSE: CVX) have been operating in the ROC uninterrupted for approximately 30 years. The Table below Summarizes rankings in several categories put forth by The Belgian Export Credit Agency.
|
Export Transactions |
|
Direct Investments |
|||
|
Political Risk Short Term |
Political Risk Medium/Long Terms |
Commercial Risk |
War Risk |
Transfer Risk |
|
|
Republic of Congo |
4 |
7 |
C |
4 |
7 |
|
South Africa |
3 |
3 |
C |
2 |
3 |
|
Democratic Republic of Congo |
6 |
7 |
C |
6 |
7 |
Compared to the Democratic Republic of Congo, a very high risk African country, and South Africa, a relatively stable African country, the Republic of Congo is in the middle of the road; risks are still inherent but should not prevent a company from investing. All categories are ranked out of 7.
Prepared by Fundamental Research Corp