Regional instability compounding uncertainty

A further source of uncertainty is the unstable military and political situation in neighbouring countries, the EIU report continued. If improved security conditions in the Republic of Congo allowed the reopening of the Brazzaville-Pointe Noire rail service, this would have a “significant positive impact” on the CAR, which has traditionally exported much of its timber through Brazzaville. Similarly, there would be positive “knock-on benefits” for the CAR if the current truce in the DRC were to hold, it said. Meanwhile, there have been “persistent reports” that a Ukrainian entrepreneur has been operating supply flights to Angolan rebels from Bangui and suggestions that smuggled Angolan diamonds “may be being traded in the city”, in contravention of UN-imposed sanctions banning trade in stones originating from Angolan rebels, the EIU report added.