Identifier
Created
Classification
Origin
04KINSHASA1709
2004-09-10 12:48:00
UNCLASSIFIED
Embassy Kinshasa
Cable title:
ECONOMIC REPORT - SEPT 4 THROUGH SEPT 10
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 KINSHASA 001709
SIPDIS
E.O. 12958: N/A
TAGS: ECON ECIN EIND ELAB ELTN ENRG ETRD EWWT CG
SUBJECT: ECONOMIC REPORT - SEPT 4 THROUGH SEPT 10
UNCLAS SECTION 01 OF 02 KINSHASA 001709
SIPDIS
E.O. 12958: N/A
TAGS: ECON ECIN EIND ELAB ELTN ENRG ETRD EWWT CG
SUBJECT: ECONOMIC REPORT - SEPT 4 THROUGH SEPT 10
1. Summary. Prices and exchange rates remain
relatively stable, with exchange rates showing signs of
an impending slight increase. Public transportation
prices have doubled in Lubumbashi due to higher gas
prices and taxes. Zimtrade will hold a trade fair in
Lubumbashi. RVF (river transportation authority)
workers have ended their strike after RVF management
agreed to pay a portion of their salary arrears in time
to meet back-to-school expenses. SNEL plans to dredge
the canals at Inga I and II to increase generating
capacity. End Summary.
MONETARY AND PRICE UPDATE
2. Prices remain stable. Higher demand for pens,
notebooks, etc. due to the start of the school season
continues to have a slight effect on non-food item
prices.
3. Although experiencing a slight depreciation, the
Congolese Franc remains generally stable. The
depreciation began in Kinshasa with the distribution of
some lump-sum salary payments to civil servants.
However, the most likely cause of the exchange rate
movement is the increased activity in the exchange
market due to the need to pay school fees and buy
school supplies. Many Congolese who normally keep a
mix of USD and FC have been purchasing dollars with DC,
causing the slight depreciation.
TRANSPORTATION
4. PUBLIC TRANSPORTATION PRICES RISE IN LUBUMBASHI
Local press reports that the cost of public
transportation recently doubled in Lubumbashi, from FC
50 to FC 100. The price increase has been blamed on
rising fuel costs due to market pressures and tax
increases.
TRADE
ZIMTRADE TO HOLD TRADE FAIR IN LUBUMBASHI
5. Local press reports that the Zimbabwean trade
authority, Zimtrade, will hold a trade fair in
Lubumbashi at the end of September to showcase
Zimbabwean products and attract potential buyers and
investment partners. The fair will feature Zimbabwean
manufacturers in the food and beverage, agricultural,
pharmaceutical, construction, engineering, and mining
sectors.
LABOR
RVF WORKERS END STRIKE
6. Local press reports that RVF (river transportation
authority) workers have agreed to return to work after
striking for several months. The workers had been
striking to demand payment of salary arrears. RVF
authorities resolved the dispute after agreeing to
disburse money to cover the school fees of workers'
children, and to pay salaries from January and February
of 2004. RVF management also reportedly plans to
organize a committee to lobby other GDRC agencies,
ministries, and local businesses for payment of their
debts to RVF.
WORLD BANK TO PAY OCPT WORKERS
7. The World Bank has agreed to pay USD 10.8 million in
severance packages to retiring and voluntarily
departing OCPT (post and telecommunications parastatal)
workers. Approximately 3,000 workers are slated to be
released by September 25th, 2004.
INFRASTRUCTURE
SNEL SOLICITS DREDGING FOR INGA I AND II
8. Local press reports that SNEL (electricity
parastatal) is negotiating with private dredging firms
to contract for the removal of 30,000 cubic meters of
silt from the Inga I and II canals. SNEL has suffered
from shortages of generating capacity at the Inga
hydroelectric complex due to low Congo River water
levels, silting of the dams' intake canals, and
equipment deterioration.
AID
JAPANESE FIRM TO BUILD HOSPITAL IN KINSHASA
9. Local press reports that the Japanese firm
Tokoshukai plans to build a 600-bed hospital in
Kinshasa. A delegation from the firm recently visited
the DRC to survey proposed building sites.
10. INFLATION BY CATEGORY (IN PERCENT)
WEEK ENDING 8/13 8/20 8/27 9/03
FOOD -2 0 7 0
BEVERAGE 0 0 0 0
NON-FOOD 0 -1 0 -1
CLOTHING 0 0 0 0
RENT 0 0 0 0
TRANSPORT 0 0 0 0
SCHOOL COSTS 0 0 0 0
UTILITIES 0 0 0 0
COMBINED FIGURES
WEEKLY INFLATION -0.6 0.0 2.6 0
MONTHLY INFLATION -0.8 -0.8 1.7 0
11. EXCHANGE RATE DEVELOPMENTS
8/13 8/20 8/27 9/03
CENTRAL BANK RATE 390.175 390.594 392.045 396.0145
PARALLEL MARKET
-KINSHASA 385-390 385-390 390-395 390-395
-LUBUMBASHI 380-385 380-390 380-390 380-385
-MBUJI MAYI 385-390 385-390 385-395 385-390
-KISANGANI 375-385 380-390 380-390 380-390
-GOMA 400-410 400-410 400-410 400-410
-BUKAVU 400-410 400-410 400-410 400-410
MEECE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ECIN EIND ELAB ELTN ENRG ETRD EWWT CG
SUBJECT: ECONOMIC REPORT - SEPT 4 THROUGH SEPT 10
1. Summary. Prices and exchange rates remain
relatively stable, with exchange rates showing signs of
an impending slight increase. Public transportation
prices have doubled in Lubumbashi due to higher gas
prices and taxes. Zimtrade will hold a trade fair in
Lubumbashi. RVF (river transportation authority)
workers have ended their strike after RVF management
agreed to pay a portion of their salary arrears in time
to meet back-to-school expenses. SNEL plans to dredge
the canals at Inga I and II to increase generating
capacity. End Summary.
MONETARY AND PRICE UPDATE
2. Prices remain stable. Higher demand for pens,
notebooks, etc. due to the start of the school season
continues to have a slight effect on non-food item
prices.
3. Although experiencing a slight depreciation, the
Congolese Franc remains generally stable. The
depreciation began in Kinshasa with the distribution of
some lump-sum salary payments to civil servants.
However, the most likely cause of the exchange rate
movement is the increased activity in the exchange
market due to the need to pay school fees and buy
school supplies. Many Congolese who normally keep a
mix of USD and FC have been purchasing dollars with DC,
causing the slight depreciation.
TRANSPORTATION
4. PUBLIC TRANSPORTATION PRICES RISE IN LUBUMBASHI
Local press reports that the cost of public
transportation recently doubled in Lubumbashi, from FC
50 to FC 100. The price increase has been blamed on
rising fuel costs due to market pressures and tax
increases.
TRADE
ZIMTRADE TO HOLD TRADE FAIR IN LUBUMBASHI
5. Local press reports that the Zimbabwean trade
authority, Zimtrade, will hold a trade fair in
Lubumbashi at the end of September to showcase
Zimbabwean products and attract potential buyers and
investment partners. The fair will feature Zimbabwean
manufacturers in the food and beverage, agricultural,
pharmaceutical, construction, engineering, and mining
sectors.
LABOR
RVF WORKERS END STRIKE
6. Local press reports that RVF (river transportation
authority) workers have agreed to return to work after
striking for several months. The workers had been
striking to demand payment of salary arrears. RVF
authorities resolved the dispute after agreeing to
disburse money to cover the school fees of workers'
children, and to pay salaries from January and February
of 2004. RVF management also reportedly plans to
organize a committee to lobby other GDRC agencies,
ministries, and local businesses for payment of their
debts to RVF.
WORLD BANK TO PAY OCPT WORKERS
7. The World Bank has agreed to pay USD 10.8 million in
severance packages to retiring and voluntarily
departing OCPT (post and telecommunications parastatal)
workers. Approximately 3,000 workers are slated to be
released by September 25th, 2004.
INFRASTRUCTURE
SNEL SOLICITS DREDGING FOR INGA I AND II
8. Local press reports that SNEL (electricity
parastatal) is negotiating with private dredging firms
to contract for the removal of 30,000 cubic meters of
silt from the Inga I and II canals. SNEL has suffered
from shortages of generating capacity at the Inga
hydroelectric complex due to low Congo River water
levels, silting of the dams' intake canals, and
equipment deterioration.
AID
JAPANESE FIRM TO BUILD HOSPITAL IN KINSHASA
9. Local press reports that the Japanese firm
Tokoshukai plans to build a 600-bed hospital in
Kinshasa. A delegation from the firm recently visited
the DRC to survey proposed building sites.
10. INFLATION BY CATEGORY (IN PERCENT)
WEEK ENDING 8/13 8/20 8/27 9/03
FOOD -2 0 7 0
BEVERAGE 0 0 0 0
NON-FOOD 0 -1 0 -1
CLOTHING 0 0 0 0
RENT 0 0 0 0
TRANSPORT 0 0 0 0
SCHOOL COSTS 0 0 0 0
UTILITIES 0 0 0 0
COMBINED FIGURES
WEEKLY INFLATION -0.6 0.0 2.6 0
MONTHLY INFLATION -0.8 -0.8 1.7 0
11. EXCHANGE RATE DEVELOPMENTS
8/13 8/20 8/27 9/03
CENTRAL BANK RATE 390.175 390.594 392.045 396.0145
PARALLEL MARKET
-KINSHASA 385-390 385-390 390-395 390-395
-LUBUMBASHI 380-385 380-390 380-390 380-385
-MBUJI MAYI 385-390 385-390 385-395 385-390
-KISANGANI 375-385 380-390 380-390 380-390
-GOMA 400-410 400-410 400-410 400-410
-BUKAVU 400-410 400-410 400-410 400-410
MEECE