The Central African Private Sector Is Undderfund

By Antoinette KODROGUÉ | LNC
Translated into English by Gwenaëlle DE LACAN

(Bangui, October 28, 2026 | LNC) Private-sector businesses and SMEs in the Central African Republic are not only few in number, but they also suffer from a glaring lack of funding. Despite clear potential, securing credit and investment remains an arduous, uphill battle.
The "Bangui Financial Days," held from October 1 to 3, 2026, sought to address this major challenge. But how can the private sector be financially revitalized—and, in the process, foster job creation?
According to Aliou Maïga, Regional Director at the International Finance Corporation (IFC): "A business that can demonstrate it has the operations or collateral to repay the amount it is requesting will generally be able to secure funding. The question is: how can a company prove it has sufficient activity to repay its loans? In more developed economies, this is done through financial statements. But those don't exist here." He adds: "In the absence of financial statements, what can one look at? Traditionally, banks will ask for collateral. Today, however, technology often makes it possible to conduct analyses based on behavioral patterns and cash flows."
This lack of formal structure is confirmed by Benoît Mandogo, head of "L'Or Rouge," a palm oil production company based in Bossongo, about fifty kilometers southwest of Bangui: "For ten years, we operated informally—without documentation, infrastructure, electricity, or any clear vision. We worked manually, using archaic tools and equipment." "This lack of professionalization prevented me from accessing bank financing or credit."
In the Central African Republic, the labor market is nearly 97% informal. Unemployment and underemployment rates remain alarmingly high, affecting more than 60% of young people. According to Aliou Maïga, addressing this is an absolute priority: "The best definition of development is the creation of jobs, moving toward full employment. If we can achieve that, then we have developed a country. The real focus must be: how do we create productive, sustainable jobs—in infrastructure and other sectors with high employment potential?"
To make matters worse, the legal framework in the Central African Republic does not help; instead, it fuels investor hesitation. For instance, a draft law on the business climate—first proposed over a decade ago—has yet to be finalized. The authorities attribute this chronic delay to the complexity of the matter, but it comes across as yet another instance of political negligence that continues to paralyze the real economy.

LNC
Date: October 28, 2026
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