Central African Republic integrated State-Owned Enterprises Framework (iSOEF) Assessment

State-owned enterprises (SOEs) play a central role in CAR’s economy, providing essential goods and services to the population and local businesses. The largest SOE by far is the integrated electricity utility ENERCA, followed by the urban water utility SODECA. The SOE portfolio also includes the legacy telecommunications operator SOCATEL and a dozen or so smaller companies. The State also holds a large minority stake in the port operator in the capital city Bangui, SOCATRAF. This company is a key factor in the local economy, and it is expected to play a critical role in the management of the strategic logistical corridor which the Ubangi River is a part of. The main objective of this report is to support the government of CAR in strengthening the governance of SOEs and enhance its capacity to monitor their performance, with a view to ultimately improving it. The report also seeks to provide a preliminary assessment of the fiscal risks associated with the SOE portfolio. The assessment of the corporate governance of SOEs follows the methodology embedded in Module 4 of the WB’s Integrated SOE Framework ‘iSOEF’, adapted to account for the country’s unique circumstances. The diagnostic seeks to address actual implementation, beyond arrangements on paper. Given the paucity of information and concerns regarding its reliability, the assessment of the contingent liabilities associated with SOEs does not include any scenario analysis or stress testing as envisaged in the iSOEF methodology (Module 2).