The Republic
of the Congo, is located
in Central Africa, bordering the South Atlantic Ocean, between Gabon and the Democratic
Republic of the Congo
Total area: 342,000
sq. km (land: 341,500 sq. km water: 500 sq. km)
Bordering
countries: Angola over 201 km,
Cameroon over 523 km, Central
African Republic over 467 km, Democratic Republic of the Congo
over 2,410 km, Gabon over 1,903 km
Coastline: 169 km
Population:
2,954,258 (July 2003 est.) Seventy percent of the population lives in Brazzaville,
Pointe-Noire, or along the railroad between them. Population growth
rate: 1.53% (2003 est.)
Capital: Brazzaville
Independence from France: August 15, 1960
National holiday: Congolese National Day: August
15
Constitution: new constitution approved by
referendum March 1992 but is now being redrafted by President Sassou-Nguesso.
In August 2000, he announced plans to submit a draft constitution to the interim
parliament in March 2001.
Natural resources: petroleum,
timber, potash, lead, zinc, uranium, copper, phosphates, natural gas, hydropower
Agriculture productions: cassava, sugar,
rice, corn, peanuts, vegetables, coffee, cocoa; forest products (Land use:
arable land: 0% permanent crops: 0% permanent pastures: 29% forests and woodland:
62% other: 9% (1993 est.) Irrigated land: 10 sq. km (1993 est.)
Industrial
productions: petroleum extraction, cement kilning, lumbering, brewing,
sugar milling, palm oil, soap, cigarette
As one can see with the production
graph below exposed (graph and statistics: courtesy of USA's
Energy Information Administration - Click on the graph for the website)
Congo is one of the top oil producers in Africa. It ranks fourth after Nigeria,
Angola, and Gabon. However,
production reached a pick in 2000 and starts declining. Year 2002's production
is similar to Year 1999 one.
 Oil
and gas industries: State-owned Société Nationale des Pétroles du Congo
(SNPC) oversees offshore and onshore oil exploration and production: 97,9 millions
bbl (1999); 96,8 millions bbl (2000)
Major
Producing Fields: N'Kossa (60,000 bbl/d including 12,000 bbl/d of GPL),
Kitina (27,000 bbl/d); Tchibouela (34.600 bbl/d).
Major
Refineries: (1/1/99 Capacity bbl/d): Congolaise de Raffinage (CORAF) -
Pointe Noire (21,000 bbl/d)
Major Oil Terminals:
Djeno. Major Foreign Oil Company: British Petroleum,
Chevron, CMS Nomeco, Energy Africa, ENI-Agip, ExxonMobil, Naphta Petroleum, Occidental,
Royal Dutch/Shell, Sasol, TotalFina Elf
Political, social and economic
life of Congo evolve around petroleum production. Oil is the background and the
principal reason behind fierce political fights to control state power that end
up in civil unrest and war in 1995-1998.
A
brief history's recount is necessary to understand current Congo's political life.
Upon independence in 1960, a priest: Abbe Fulbert Youlou ruled. A
coup toppled his government in 1963. The following three decades (1963 -1991)
were the period of Marxism Leninism. One of the preeminent figure leader of
the soviet style government of that period was President Sassou-Nguesso who ruled
the country from 1979 to 1991. He was forced to abandon his grip on the power
- in 1991 - by civil and political unrest followed by a "Conference Nationale".
Pascal Lissouba took over as president elected in 1992. He will not terminate
his 5-year- term mandate. A brief civil war (June-October) 1997 restored former
Marxist President Sassou-Nguesso Click
here for an article by Kamanga Mutond (Associated Press)
He publicly expressed
interest in moving forward on economic reforms and privatization
Congo was an oil producer before the independence in August 15, 1960 (It started
to produce oil in 1957 from the onshore "Pointe Indienne" field,
reaching a peak output of about 2,500 (bbl/d) in the mid-1960s). Till the end
of the 1960's, forestry production (timber and plywood) were the mainstay of the
economy. However, beginning of 1970 oil production started to rise; and came the
1974's oil price boom. Since then, year upon year, oil became the central activity
of the country; providing a major share (70 to 90 % - depending on the prevailing
oil international selling price) of revenues to the national budget. Consequently,
the economy is characterized by an industrial sector largely dominated by oil
related industries and supports services.
Due to abundant oil revenues,
no systematic attempt had been made, by successive Congo's governments, to develop
agriculture and establish a strong agribusiness base. Agriculture remained one
of subsistence.
In the contrary, in the 1980s, oil proceeds were
used to finance large-scale development projects which helped the GNP to grow
at an average of 5% annually without creating enough jobs to cope with demands.
Moreover, in 1995-1996, Lissouba's government mortgaged a substantial portion
of oil earnings, contributing to shortage of revenues for the national budget.
Since March 2000 - Oil prices had been in the high bracket of US! 20-35
(from US 18 - end 1999 - per barrel to nearly US $ 39 in beginning of May 2004);
and will continue to do so thanks to the crisis in the middle east and the
war in Irak. Click here
for current oil price on the international marketplace.
That high level
of oil pricing is helping the country to harvest more revenues for the national
budget. That will help for the reconstruction and restoration of devastated infrastructure
and the establishment of much needed health and education facilities.
However, economic observers are questioning the future of the country after
the "oil prosperity's era".
They think that it is high
time for Congo's political rulers to devise a strategic plan and use the proceeds
coming from high oil prices to build up a financial cushion (like the Kuwait's
Reserve For Future Generation Click
here for more) to secure and maintain the growth of the economy after
the "Oil Era".
Based on the general trend in western European
and North America countries to search for alternative energy sources to power
engines (hydrogen based energy source) and for house heating system, one is right
to say that times is running out for medium size oil producing countries like
the Congo. The more they wait to diversify their economy, the sooner they
will be in economic trouble - as the GNP is alrady too low in spite of proceeds
coming from oil's exploitation. A lot of brainstorming will be needed from Congolese
policy-makers to put the country on a growth path that creates jobs to cope with
demands and riches to fighting poverty. Future
industrial growth - in any economic sector - is likely to be limited by a shortage
of labor (skilled and hands) and high operating costs. Courtesy
of BusinessAfrica™ / Dr. Quenum & Associates - Investment and Business Planners
- click here for a "Strategic
economic development scheme" suitable for Congo.
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GNP:
US$ 1.755 billion (2000); 1.38 billion (2003)
GNP-
growth rate:
-16.7% (1997); 3.6% (1998); -.0.7% (1999); 3.8% (2000); 0.5% (2002); 1.5% (2003
est.)
GNP-per
capita: US$ 462
(2003)
Click
here for the difference between GNP and Parity Purchasing Power
GNP-composition
by sector
-
agriculture:
10%
- industry:
48%
- services:
42%
Exports:
US$ 2.6 billion
(f.o.b., 2000); 2.4 billion f.o.b. (2002 est.)
Commodities:
petroleum 50%, lumber,
plywood, sugar, cocoa, coffee, diamonds
Imports:
US$ 870 million (f.o.b., 2000); 730 million f.o.b. (2002 est.)
Commodities:
Capital goods, foodstuffs,
petroleum products, machinery, vehicles and spare parts
FOR CURRENCY
EQUIVALENCE CLICK HERE
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THE REPUBLIC OF CONGO - BRIEFS
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