Republic of the Congo

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2007
Latest Data From 2013

Overview

The country is a leading producer of crude oil, diamonds and gold. It also produces smaller quantities of copper, lead, zinc, construction materials and, more recently, of phosphates and uranium. Yet social conflicts have arisen around management of oil revenues, subnational transfers and environmental impacts of the extractive industries. The EITI has supported greater transparency in sales of the state’s share of in-kind oil revenues and Parliament is now using EITI Reports as a control tool in approving the state’s budget. The national EITI structure has led outreach to oil and diamond producing regions, generating public debate.

Transparency and good governance are key points of the Government’s societal programme. The prospect of an emerging Congo is being realised: its modernisation and industrialisation are ongoing and using as a base the oil and mining revenues, which are now disclosed publicly on a routine basis through the EITI.
Michel Florent Okoko, head of the Petroleum, Mines and Hydraulic Energy Department of the Ministry of Economy, Finance and Budget.

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Natural resources

The Republic of the Congo has rich deposits of crude oil, natural gas, diamonds, gold, copper, lead, zinc, phosphates and uranium. Abundant mineral resources are found across the country including its offshore, where a growing share of output is located. It is considered one of the most mineral countries in sub-Saharan Africa, sitting along the Congo geological basin.

CommodityReservesUnitSignificance
Oil2billion barrels
Oil sands2.5billion barrels
Copper2.2million metric tons
Iron25billion metric tons
Potash3.2billion metric tons
Phosphates 531million metric tons10.5% phosphorus pentoxide (P205)
GoldNA
LeadNA
ZincN/A

Revenue collection

The latest EITI disclosures (2013) show that the Republic of the Congo received USD 5.1 billion from extractive industry taxation. Almost all (99.8%) of these revenues came from hydrocarbons, mainly crude oil, with the rest coming from mining, with gold and diamonds the major commodities. Revenues were mainly collected through the state’s share of in-kind revenue (87%), balance of taxes paid (2.6%) and corporate income tax (2.6%).

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Revenue allocation

Two thirds of the budget is funded through direct revenues from the extractive industries, one third is funded indirectly through trust accounts of individual government entities. The tax system is highly centralised, with subnational government collecting small municipal fees.

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • The publication of quarterly reports that include, data on oil sales by the state owned enterprise ("Société Nationale des Pétroles du Congo"/SNPC) and revenue transfers between the latter and the treasury.
  • Coverage of crude from production-sharing agreements and its monetization in EITI reporting.
  • Companies now pay taxes directly to the Treasury and not to intermediary state institutions (as a result of lessons learned from EITI reporting).
  • Coverage of social payments in EITI reporting.
  • Tripartite MSG chairmanship.
  • Civil society representatives on the MSG have led on the organisation of Validation.

Implementation

EITI has updated its workplan for 2016, expanding EITI reporting to the forestry sector. Following a review of the EITI’s institutional structure, the Republic of the Congo is working to produce its 2014 and 2015 EITI Reports. 

Governance

The government announced its intention to implement the EITI in a statement by the Minister of Mines, Industry and Geology at the 2nd EITI Global Conference in London on 17 March 2005. On 7 September 2006 the Prime Minister chaired the first meeting of the multi-stakeholder group, the Comite Executif, composed of 25 members (six each from industry and civil society, 13 from government). Decree 2012-1123 of 25 October 2012, nominates the members of the Bureau of the Executive Committee and Ministerial Order 611 MEP PPPI-CAB nominates the members of the Executive Committee. With support from the World Bank, the Republic of the Congo drafted an EITI law in December 2013 to institutionalise the EITI.

Validation

The Republic of the Congo's Validation against the Standard will commence on 1 April 2017. The country is compliant under the 2011 Rules.

Timeline

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