This information is derived from the State Department's Office of Investment Affairs, Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov

Capital Markets and Portfolio Investment

The Congolese government’s general attitude toward foreign portfolio investment is neutral given the fact the foreign portfolio investment is not widely practiced in the country.

The Republic of Congo does not have a stock exchange. RoC-based companies may be listed on the Douala Stock Exchange (DAC) or the CEMAC Zone Stock Exchange (BVMAC). Monetary and credit policies are determined by the regional central bank, BEAC, within the CEMAC framework. The main objective is to ensure the stability of the common regional currency.

Existing policies facilitate the free flow of financial resources, though the use of complex products is not a widely known practice.

The government and central bank respect IMF Article VIII by refraining from restrictions on payments and transfers for current international transactions.

Most credits are allocated on market terms and are closely monitored by the National Office of the Central Bank (BEAC). Foreign investors that establish solid business partnerships can easily get credit on the local market. The private sector may access several credit instruments; however, the Republic of Congo is not a mature financial market and thus offers a limited range of credit instruments.
 

Money and Banking System

The banking sector in the Republic of Congo is highly concentrated and lags behind regional peers. The Congolese banking sector is supervised by the Banking Commission of Central Africa (COBAC), the regulatory body of the Central Bank of Central African States (BEAC).  International reports contend that banking penetration remains in the five-to-seven percent range, but allegedly a 2015 survey found a rate of 25-30 percent.  High intermediation costs and high collateral requirements limit the pool of customers.  Banks themselves, of which there are approximately 10 commercial entities, suffer from excess liquidity and have deposits outpacing credit.  Growth and innovation within the sector appear most salient in microfinance and electronic banking. 

The banking sector is somewhat healthy, however the 2014 global drop in oil prices and the Republic of Congo’s deteriorating balance sheet have had a negative impact on the banking sector.  Non-performing loans have recently increased to about 15% in 2016 from 2.5% in 2015.  It is difficult to accurately determine total assets in the Republic of Congo’s largest bank, BGFI Congo.  However, it is rumored that its assets have decreased about 12% in the past year.

The Republic of Congo is part of the Central African Economic and Monetary Community (CEMAC) zone and as such is also part of the Central Bank of the Central African States system (BEAC).

Most banking operations in the Republic of Congo are foreign banks or branches of foreign banks. The country has not lost any correspondent banking relationship in the past three years and no correspondent banking relationship is known to be in jeopardy.

There are no known restrictions on a foreigner’s ability to establish a bank account.
 

Foreign Exchange and Remittances

Foreign Exchange

There are no legal restrictions or limitations on converting, transferring or repatriating funds associated with an investment, including remittances, but CEMAC regulations require banks to record and report the identity of customers engaging in transactions over $10,000. Additionally, financial institutions must maintain records of large transactions for five years. The Republic of Congo authority for exchange control is the General Director of Monies and Credit (DGMC). Investors are authorized to remit on a legal parallel market with approval from the DGMC. Recently with the economic crisis, the Central Bank monitors closely any fund transfer above $100,000.

Foreign investors may hold local bank accounts. There is no difficulty obtaining foreign assets (currencies) from any of the major commercial banks, which are subsidiaries of French, Moroccan, or African banks. There are no U.S.-based banks, but transfers directly to and from the U.S. are possible.
 
The common currency used in the Republic of Congo and other CEMAC members is the Central African CFA Franc (FCFA). The FCFA is pegged to the Euro and is treated as an intervention monetary unit at a fixed exchange rate of 1 Euro: 655.957 CFA Franc. This agreement guarantees the availability of foreign exchange and the unlimited convertibility of the CFA Franc. It also provides considerable monetary stability to the Republic of Congo and other CEMAC countries. The exchange rate between the CFA Franc and the U.S. dollar fluctuates according to the rate between the Euro and the U.S. Dollar.  The Central African CFA Franc is not interchangeable with the West African CFA Franc, but both currencies are pegged to the Euro at the same rate and are therefore directly convertible.
 

Remittance Policies

There are no recent changes or plans to change investment remittance policies that either tighten or relax access to foreign exchange for investment remittances.
 
There are no legal restrictions on converting or transferring funds associated with an investment, including remittances, but CEMAC regulations require banks to record and report the identity of customers engaging in transactions over $10,000. Additionally, financial institutions must maintain records of large transactions for five years. The Republic of Congo authority for exchange control is the General Director of Monies and Credit (DGMC). The Central Bank (BEAC) has recently started to closely monitor and control any fund transfer larger than $100,000.
 

Sovereign Wealth Funds

There is currently no Sovereign Wealth Fund (SWF) in the Republic of Congo, although there is talk of setting one up in the near to mid-term. A law enabling the creation of such a SWF has been adopted by the Parliament. It is envisaged that the SWF will be established at the BEAC and will acquire mostly risk-free foreign assets. However, the IMF and the Central Bank of Central African States have confirmed the existence of non-public “rainy day funds,” a sort of sovereign wealth fund created by government in 2007 to deposit budget surpluses from oil revenue. These funds are not disclosed publicly.

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