The Central African Republic is a landlocked country of 4.5 million people in an area slightly smaller than the state of Texas.
Its economy is based mainly on agriculture, artisanal diamond mining and logging. Diamonds and timber are the country’s principal exports, but some gold, iron and uranium exploitation exists.
CAR has the potential to become an agricultural products net exporter. However, CAR’s economy is disadvantaged by the country’s landlocked position which isolates it from foreign suppliers and markets and contributes to high import prices.
CAR is believed to have petroleum deposits along its border with Chad which are currently being explored.
It also has hydroelectric potential that could be developed for export to neighboring countries that have power shortages.
Chamber of Commerce, Industry, Mines and Crafts Central
CCIMA main tasks of acting as a conduit between the one hand from private business and governments for consultation and representation in many areas the first of which is the economy.
Mining code in March 2009
Provisions of this mining code are:
- A bonus payment of an unspecified amount to fund a “Mining Development Fund” controlled by the Minister of Mines.
- 15 percent for the State in free carried interest in any mining project.
- 15 percent of the production for the State, whether in cash or product.
Conversion and Transfer Policies
There is no restriction on transferring funds associated with an investment. The Investment Charter provides that the investment capital earnings or loan payments are freely transferable. The Ministry of Finance must be notified of transfer processes, but to date have not interfered with any transfers.
Bilateral Investment Agreements
The Central African Republic has bilateral commercial agreements with the CEMAC member states: Cameroon, Congo Brazzaville, Gabon, Equatorial Guinea and Chad as well as with following countries: Morocco, China, Sudan, Egypt, France, Nigeria, Libya, Iraq, Germany, South Korea and Romania
For more reading