Republic of the Congo: 2024 Economic Overview

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An Overview of the Economic Landscape in the Republic of the Congo (Congo-Brazzaville) in 2024

The economy of the Republic of the Congo (Congo-Brazzaville) predominantly relies on commodities, particularly natural resource exports, a dependency that many observers believe needs addressing.

As the third-largest oil producer in Sub-Saharan Africa, Congo-Brazzaville pumps approximately 250,000 barrels of oil per day, expected to yield around USD 6 billion by the end of 2023, constituting 60%-80% of net exports. Since becoming a full member of OPEC in 2018, Congo-Brazzaville has aimed for over 275,000 barrels per day in 2024, which could marginally boost foreign exchange earnings.

However, will this suffice to counter the country’s economic challenges? The answer appears negative.

While Congo-Brazzaville achieved middle-income status in 2005 due to crude oil exports, the end of the hydrocarbon boom in 2014 led to a downgrade to lower-income status. With few viable alternatives, agricultural exports, particularly equatorial agricultural produce and timber, have been minor revenue sources, generating about USD 250 million annually. There’s substantial room for agricultural sector growth, especially with modernization efforts that could potentially double exports, adding another USD 250 million in the short term.

In recent years, Congo-Brazzaville has turned to copper, with exports reaching almost USD 3.2 billion in 2021. However, reliable data on diamonds and precious metals remain scarce. Despite seeking foreign investment since the mid-2010s, the country’s commercial environment hasn’t substantially improved, as noted by the US Department of State.

While Congo-Brazzaville has invested in infrastructure, including road expansion and improved internet access, the economy returned to growth in 2022 after a mid-2010s decline. Long-term economic prospects hinge on implementing reforms while ensuring political stability. Enhancing metrics such as ease of doing business, economic freedom, and transparency is crucial. Yet, sustainability remains paramount, given the country’s reliance on natural resources.

Congo-Brazzaville has begun experiencing minor climate change impacts, such as rising temperatures, per ReliefWeb. Failure to take appropriate measures could exact a heavier toll in the future. Thus, a cautious approach is imperative to navigate the country’s economic trajectory effectively.