Central African Republic

Transcription

1 Central African Republic A. Definitions and sources of data Data on the annual inflows of foreign direct investment (FDI) in Central African Republic are gathered by the Banque des États de l Afrique Centrale. Data are also from tapes provided by the international Monetary in its balance-of-payments statistics. The Investment Code (Investment Code - No of 9 May 1988) governs all foreign investment in the country, including foreign direct investment (FDI). This code does not provide a specific definition of FDI. Central African Republic welcomes foreign investment particularly in the mining, which has grown in the recent years. Alluvial diamonds are the main source of mineral income. There are now many diamond companies in the country. A number of other companies are planning to develop deposits of silver, lead and iron in the country. In the revised code, the Ministry of Energy and Mines will be entirely responsible for issuing licenses, in an attempt to speed up license acquisition. Given the improved political stability, there is likely to be a rise in foreign investment in cotton, timber and mining. In Central African Republic, investments must be declared unless they are reinvestment of undistributed profits. This new investment code is designed to open up the country to foreign investors while complying with the treaty creating the Central African States Economic and Monetary Community. There is no single sector in which foreign investors are denied national treatment in Central African Republic. Foreigners have also won a significant presence in some formerly state-dominated sectors, such as telecommunications, and full ownership of businesses by foreigners is permitted. Both residents and non-residents may hold foreign exchange accounts. The Government plans to privatize its share in Socatel, the telecommunication company, with part of it being controlled by France Cable, a French company. However, in 2005, the Central African Republic introduced an indefinite suspension of the issuance of new gold and diamond mining permits and banned foreigners from entering mining zones. Central African Republic is a member of the Central African States Economic and Monetary Community, which includes Cameroon, Chad, the Republic of Congo, Equatorial Guinea and Gabon. It is also a member of the African Union, New Partnership for Africa's Development and is eligible for several preferential trade schemes, such as the generalized system of preferences for the least developed countries, the United States market access initiative for African countries - the African Growth and Opportunity Act, the European Union market access scheme - the Everything But Arms initiative and is signatory to the Cotonou Agreement for the renegotiation of the preferential trade between the Africa, Caribbean and Pacific countries with the European Union. Central Africa Republic is a member of the World Trade Organization. Posting date: November 2006

2 B. Statistics on FDI and the operations of TNCs

3 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 3 of 11 Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, (annual average) FDI flows as a percentage of GFCF, (annual average) FDI stock, FDI stock as a percentage of GDP, Source: Based on tables 3a, 4 and UNCTAD, FDI/TNC database.

4 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 4 of 11 Table 3a. FDI flows, by type of investment, Year Equity Inward investment Reinvested earnings Intracompany loans Total Equity Outward investment Intracompany Reinvested earnings loans Total Source : UNCTAD, FDI/TNC database. Note : FDI inflows: IMF for , Banque Centrale des Etats de l'afrique Centrale (BEAC) for , and estimate for FDI outflows: IMF for and BEAC for

5 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 5 of 11 Year Equity Table 4. FDI stock, by type of investment, Inward Investment Reinvested earnings Intracompany loans Total Equity Outward Investment Intracompany Reinvested earnings loans Source : UNCTAD, FDI/TNC database. Note : FDI inward stock: Estimated by accumulating inflows since FDI outward stock: Estimated by accumulating inflows since Total

6 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 6 of 11 Table 6. FDI flows in the host economy, by geographical origin, Economy Belgium / Luxembourg France Germany Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Table 9. FDI flows abroad, by geographical destination, Economy Belgium / Luxembourg France Germany Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Table 12. FDI stock in the host economy, by geographical origin, Economy United States India Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Tables 30 and 45. Assets and sales of affiliates of United States TNCs in Central African Republic, Table no. Variable Assets Sales Source: UNCTAD, FDI/TNC database. Note: Data are based on information reported by the United States.

7 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 7 of 11 Table 88. Largest affiliates of foreign TNCs in the home economy, 2004 (Millions of dollars and number) Company Home economy Industry Sales Employees A. Industrial Socadis France Food products, beverages and tabacco.... B. Tertiary SDV Centrafrique France Transport and storage.... CFAO Centrafrique France Wholesale trade.... Wackenhut International United Kingdom Other business activities.... Sodeca France Electricity, gas and water.... Société Centrafricaine ETS Mory France Other services.... C. Finance and Insurance Assets Employees Source: Who Owns Whom database (

8 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 8 of 11 C. Legal frameworks for transnational corporations The legal instruments adopted in the Central Africa Republic to regulate the activities of foreign investors at national, bilateral and multilateral levels include: I. National framework Investment Code - No of 9 May 1988 concerning the Central African Republic Investment Code - Repeals Law No of 19 February Source: Official Journal of the Central African Republic of 9 May Decree No on the implementation modalities of Law No of 9 May Source: Fiduciare France Afrique, 1994 edition. Also official copy received from PEE-French Embassy in Bangui. Decree on Company Tax No of 24 January Source: Official Journal of the Central African Republic of 15 March Investment Guide Source: "News", published by the Embassy of the Central African Republic, Washington, D.C., May Decree No of 9 May 1988 on the Legislation of Enterprises in the Central African Republic. Source: Fiduciare France Afrique, 1994 edition. Also official copy received from PEE-French Embassy in Bangui. Code of Tax Benefits. Decree of 30 December Source: Official Journal of the Central African Republic of 15 February Finance Law 1990 providing for a tax reduction in respect of investments. Source: Fisealite Africaine, FIDAFRICA, 1990 Patents: Bangui Agreement, March 1977 (Annex I), as last amended in February Source: WIPO ( Trade Marks: Bangui Agreement, March 1977 (Annex III), as last amended in February Source: WIPO ( Industrial Designs: Bangui Agreement, March 1977 (Annexes II and IV), as last amended in February Source: WIPO ( Ordinance No on Copyright. Source: WIPO ( II. International Framework A. Central African Republic is a party to the following multilateral and regional instruments: Paris Convention for the Protection of Industrial Property of 1883 (Revised at Brussels in 1900, Washington in 1911, The Hague in 1925, London in 1934, Lisbon in 1958 and Stockholm in 1967, and as amended in 1979). Signed in 1994.

9 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 9 of 11 Convention on the Settlement of Investment Disputes between States and Nationals of other States of Entered into force on 14 October 1966 Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, which entered into force on 7th June Convention Establishing the Multilateral Investment Guarantee Agency of 1985, entered into force on 12 April Marrakesh Agreement Establishing the World Trade Organisation of 15 April Entered into force on 1 January Agreement on Trade-Related Investment Measures. General Agreement on Trade in Services. Agreement on Trade Related Aspects of Intellectual Property Rights. Fourth ACP - EEC Convention (Lome IV) of 1989, entered into force on 1st March Customs and Economic Union of Central Africa (UDEAC): Common Convention on Investments in the UDEAC (1965); Joint Convention on the Freedom of Movement of Persons and the Right of Establishment in the UDEAC (1972); Multinational Companies Code in the UDEAC (1975). Joint Convention on the Freedom of Movement of Persons and the Right of Establishment in the Central African Customs and Economic Union of 22 September Partnership Agreement between the Members of The African, Caribbean and Pacific Group of States, of the one part and the European Community and its member states, of the other part signed in Cotonou, Benin on 23 June B. Bilateral treaties 1. Bilateral investment treaties for the protection and promotion of investments: France 1960, Germany 1965, Switzerland Bilateral treaties for the avoidance of double taxation: France 1969.

10 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 10 of 11 D. Sources of information Official Bank of Central African States ( Secondary Economist Intelligence Unit (EIU) (2002a). Country Profile: The Central African Republic (London: EIU Ltd.). (2002b). Country Report: The Central African Republic (London: EIU Ltd.) September. (2005a). Country Profile: The Central African Republic (London: EIU Ltd.). (2005b). Country Report: The Central African Republic (London: EIU Ltd.) September. International Monetary Fund (IMF) (1996). Aftermath of the CFA Franc Devaluation (Washington D.C.: IMF). (2006). IMF's Sub-Saharan Africa Regional Economic Outlook, March 10, (Washington D.C.: IMF). Morisset, J. (2001). "Foreign direct investment in Africa: policies also matter", OECD Global Forum on International Investment (Paris: OECD). Mobbs, P. M. (1999). "The mineral industry of the Central African Republic" (minerals.usgs.gov/minerals). OECD (2002). FDI from developing countries: A vector for trade and development (Paris: OECD). Soderbom, M. and F. Teal (2004). "Size and Efficiency in Africa Manufacturing firms: Evidence from Firm-Level Panel Data." Journal of Development Economics, 73. pp United Nations Conference on Trade and Development (UNCTAD) (2002). FDI in Least Developed Countries at a Glance (Geneva: UNCTAD) ( pdfs/countries/chad.pdf). (2003). FDI in Landlocked Developing Countries at a Glance 2002 (Geneva: UNCTAD/ITE/IIA/2003/5). (2005a). Investor-Disputes Arising from Investment Treaties: A Review. UNCTAD Series of International Investment Policies for Development (UNCTAD/ITE/IIT/2005/4). (2005b). A Survey of Support by Investment Promotion Agencies to Linkages, Advisory Studies No. 18 (UNCTAD/ITE/IPC/2005/12). (2005c). FDI in least developed countries at a glance: 2005/2006 (UNCTAD/ITE/IIA/2005/17).

11 UNCTAD WID Country Profile: CENTRAL AFRICAN REPUBLIC Page 11 of 11 United States Department of State, Bureau of African Affairs (1995). "Investment climate report: sub- Saharan Africa" (Washington D.C.: United States Department of State). United States Trade Representative (2006) Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the Africa Growth and Opportunity Act: The Sixth of Eight Annual Reports, May (Washington D.C.: US Government). World Bank (2002a). Global Economic Prospects and the Developing Countries 2003: Investing to Unlock Opportunities (Washington D.C.: World Bank). (2002b). Global Development Finance: financing the poorest countries (Washington D.C.: World Bank).