The Central African Republic has abundant natural resources which are largely untapped, as well as huge tracts of arable land.
However, investors are worried about the adverse security environment and political unrest. Other reasons limiting its allure include a lack of skilled workers and inadequate infrastructure. Nevertheless, in addition to the ongoing work under the peace agreements, the nation has implemented several reforms to draw in investment.
- The mining and agriculture sectors are valuable for investors because of the possibility of exportation of commodities, including gold, diamonds, coffee, and timber.
- The nation has implemented several reforms to draw in investment. These include steps to protect minority investors, lower startup capital requirements, the creation of a framework for public-private cooperation, and tax incentives for firms.
- Like the other countries of the Central Africa sub-region, the Central African Republic aspires to promote stability and social cohesion to promote its enormous natural potential to draw all the dividends of peace and sustainable development.
These changes include steps to protect minority investors, lower startup capital requirements, the creation of a framework for public-private cooperation, and tax incentives for firms.
The mining and agriculture sectors are valuable for investors because of the possibility of exportation of commodities, including gold, diamonds, coffee, and timber.
Subsistence agriculture, forestry, and mining are the backbone of the economy of the Central African Republic (CAR). The agricultural sector generates more than half of GDP and employs almost 75 per cent of the population. Timber and diamonds account for most export earnings, followed by cotton. Other exports include gold, coffee, and tobacco.
The Central African Republic was the 186th largest exporter in the world in 2020 with a total export value of US$127 million. The country’s exports decreased by US$26.1 million over the past five reported years, from US$153 million in 2015 to US$127 million in 2020.
Rough wood, which contributed US$51.9 million in export earnings, gold (US$34.7 million), diamonds (US$14.7 million), sawn wood (US$9.55 million) and refined copper (US$6.66 million) are the most recent export leaders. China (US$50.8 million), the United Arab Emirates (US$37.3 million), Italy (US$12.2 million), Belgium (US$6.84 million), and France (US$4.5 million) are the Central African Republic’s top export markets.
After nearly completely ceasing at the height of the pandemic, diamond exports have started up again.
Following the government’s ongoing attempts to pay its debts to producers, cotton output and exports are also anticipated to rise in the agricultural sector. With the global revival of the construction sector, which has led wood prices to explode, wood-related businesses and forestry are expected to rise in 2022.
The current account deficit in Central Africa could decrease as a result of rising prices and increased demand for wood, especially from important clients like China. Due to rising oil prices, imports are also anticipated to rise.
In 2020, the Central African Republic imported US$291 million, making it the number 194 trade destination in the world. The Central African Republic’s imports decreased by $278 million throughout the five years covered by the research, from US$569 million in 2015 to US$291 million in 2020.
The imports of the Central African Republic are led by refined petroleum, packaged medicaments, broadcasting equipment, vaccines, blood, antisera, toxins and cultures and poultry meat. These imports are mainly from the country’s most common import partners France, the Democratic Republic of the Congo, China, Belgium and India, according to data by OEC.
Meanwhile, the Central African Republic became the first state in Africa to recognize bitcoin as legal tender in April, confounding many cryptocurrency specialists and causing the International Monetary Fund to caution that it was not a “panacea” for Africa’s problems.
If you’re thinking about getting into cryptocurrency, it can be helpful to start with the one that is commonly traded and relatively well established in the market.
According to the government, the war-torn, mineral-rich nation will advance towards a better future with the help of its digital coin project. Even though the price of such assets has fallen this year, it plans to raise US$1 billion over the coming year through the sale of its Sango Coin, according to its investment website.
According to Cryptoslate, Sango coin holders are promised more upsides for investing in the project. They can earn an e-Residency permit and become citizens of CAR by locking up the required tokens for a specified period. Transactions related to government land sales, taxes, and access to the country’s natural resources can all be settled using the Sango coin.
Following the low trading volume experienced on the launch date, some market participants have expressed dissatisfaction over the turn of events. They cited a lack of transparency and non-consultation with appropriate stakeholders as possible reasons for low acceptance.
The Central African Republic’s Sango coin, which started selling on June 25, had recorded only US$1.09 million in sales after 24 hours of the offering.
CAR’s national cryptocurrency, supported by bitcoin, has been authorized by the Bank of Central African States (BEAC), which also pledged to manage the initiative.
The choice was reached following the Ministerial Committee of the Central African Monetary Union (UMAC) meeting in July 2022 in Douala, Cameroon, according to Blockbuild Africa.
After assessing the impact of the Central African Republic’s cryptocurrency law on the community’s monetary and financial regulatory architecture, UMAC assured BEAC of its support for the project in a statement, stating that the Board of Directors welcomed the CAR’s expression of its commitment to the single currency and respect for the statutes of the Bank of Central African States, the texts governing the monetary union, and other pertinent legal documents.
The Economic and Monetary Community of Central Africa (BEAC) reports that the Central African Republic requested assistance from BEAC and the relevant community authorities for the creation of a regulatory framework governing crypto assets. The organization’s board of directors has taken note of this request (CEMAC).
Although the Central African Republic was affected by the Covid-19 pandemic, the economic consequences, coupled with major post-electoral conflicts, have affected growth prospects for 2022. The outlook is upbeat but remains hostage to the fragile security situation, which notably prompted Cameroon to close the corridor between Douala (the region’s main port) and Bangui for three months in 2021, blocking a large share of Central African trade.
Nonetheless, like the other countries of the Central Africa sub-region, the Central African Republic aspires to promote stability and social cohesion, as a way of promoting its enormous natural potential, to draw all the dividends of peace and sustainable development.