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The CAR was a French colony called Oubangi-Chari until it gained independence from France in 1960. Since independence the country has experienced three decades of rule mainly by military governments. By 1993 a civilian government had been put into place and which ruled for a period of ten years. In March 2003, President Ange-Felix Patasse was overthrown by a military coup led by General Francois Bozize. Post the coup General Bozize established a transitional government. A new constitution was ratified by referendum in 2004. In February 2005 municipal, legislative, and presidential elections were held resulting in General Bozize maintaining his presidency.

The CAR economy is small and dominated by agriculture and forestry. Over 70% of the small population of 3.7 million live in rural areas and exist by subsistence farming. According to the Central Intelligence Agency’s (“CIA”) World Fact Book on the CAR, the agricultural sector accounts for over 50% of the GDP of US$1.5bn estimated for 2005. The GDP real growth rate is estimated at 2.5% for 2005. Export earnings are dominated by diamond sales (40%) and forestry revenues (16%), and are estimated at US$0.13bn for 2004. The latest available inflation statistics report this economic indicator at 3.6% for 2001. The CAR has commenced with restructuring and the upgrading of its infrastructure. The country receives economic aid from France and the European Union recently granted the government US$65.5m to rehabilitate a section of the main road linking the capital, Bangui, and the Cameroonian border town of Garoua-M'Boulay to the west.

The CAR’s mineral industry is relatively small due to a historical lack of exploration and mining investment. The country has attracted little interest until recently, not because of its low prospectivity, but rather its remote locality and international exploration being focussed on larger countries with well known mineral industries such as Angola and the DRC. A large number of international companies have recently taken up concessions in the country and are currently exploring the CAR for diamonds, gold and petroleum products. These companies include De Beers Group, Axmin Inc, UraMin Inc, Pan Africa Resources PLC, GEM Mining Ltd and Energem Resources Inc. The CAR produces diamonds and gold and small tonnages of industrial minerals. Diamond production rose to an estimated 350,000cts in 2004, primarily sourced from alluvial deposits in the north of the country. The country produced 7kg of gold in 2004.

The CAR is a member of the Kimberley Process diamond certification scheme. This process, initiated by the World Diamond Council and the United Nations, and implemented by a United Nations vote in 2003, requires the certification of all diamonds mined and upon every transfer of ownership of the diamonds. The process was implemented to combat the sale of the so-called “blood or conflict diamonds” which were used to fund armed conflict, rebel activities, overthrow of legitimate governments and the trade in armaments, especially prevalent in Sierra Leone, Angola and the DRC.

All mining licenses in the country were suspended in 2003, following the overthrow of the government. They were re-instated in 2004 along with the issue of a new mining code; the Mining Code of Central African Republic Ordinance 04.001. In the CAR, all minerals are owned by the State but any person may be granted access to them.