Central African Republic

IV

Economy

The Central African Republic is one of the most underdeveloped areas in Africa. Growth of the export economy is hindered by the difficulty of transporting goods to a seaport. Some 80 percent of the population earns its livelihood by farming, fishing, or working in forestry. The agricultural output is fairly evenly balanced between subsistence and export crops. The principal sources of revenue are diamonds, coffee, tobacco, cotton, and timber exports.

A

Agriculture and Forestry

Only 3 percent of the total land area is used for growing crops. Basic food crops include cassava, plantains, corn, peanuts, sweet potatoes, and millet. In order to increase the wage-earning power of the peasant farmer, the government has organized agricultural cooperatives, placing primary emphasis on introducing new crops that are expected to produce a higher income. The cultivation of tobacco, sesame, and rice is encouraged by the government. The most important cash crop is coffee, once grown mostly on European-owned plantations, but now produced largely on smaller African-owned farms. In 2006 coffee production was 2,580 metric tons. Cotton, which is widely cultivated, is also a leading cash crop and represents a significant portion of export earnings.

Exploitation of forest reserves was slow to develop but has increased in importance. In 2006 some 2.8 million cu m (100 million cu ft) of roundwood were produced. Timber accounted for 8 percent of export revenues in the early 1990s.

B

Manufacturing and Mining

Manufacturing activity in the Central African Republic is very limited. Products include cottonseed, peanut, and sesame oils; textiles; leather goods; tobacco products; soap; flour; bricks; and paint. The output of electricity in 2003 was 106 million kilowatt-hours, 80.19 percent of which was generated in hydroelectric installations. Gem diamonds account for nearly all the country’s mineral output and two-thirds of its export revenue. Production was 250,000 carats in 2004. Uranium was discovered in the eastern part of the country in 1966, but production is awaiting improvement in international prices. A small amount of gold is mined, mostly by individual prospectors.

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C

Currency, Commerce, and Trade

The unit of currency is the CFA franc, consisting of 100 centimes (523 CFA francs equal U.S.$1; 2006 average). An exchange rate of 1 French franc equal to 50 CFA francs remained in force from 1948 to January 1994, when the CFA franc was officially devalued by 50 percent.

The country’s principal exports are diamonds, timber, cotton, and coffee. France and Belgium are by far the leading trade partners, and some commerce is also carried on with the nearby nations of Cameroon, the Congo, and Gabon, with which the Central African Republic is joined in the Customs and Economic Union of Central Africa. In 2003 exports earned $66 million while imports cost $100 million.

D

Transportation and Communication

The country has no railroads. The Ubangi River and the Chari and Logone river systems are important arteries of transportation. Exports are shipped on the Ubangi and Congo rivers to Brazzaville, Congo, and then by rail to the seaport of Pointe-Noire. The country has 23,810 km (14,795 mi) of roads, only a small portion of which are paved. An international airport is located at Bangui.

Several periodicals and 3 daily newspaper are published in Bangui. The national radio and television broadcasting service is government owned and provides programs in French and Sango. In 1997 there were 83 radio receivers, 6 television sets, and 3 telephone mainlines in use for every 1,000 inhabitants.

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