BENIN: PRESIDENT YAYI DELIVERS STATE OF THE NATION ADDRESS

UNCLAS COTONOU 000004

SIPDIS

DEPT FOR AF/W (DBANKS)
PARIS FOR D'ELIA

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECON EINV BN
SUBJECT: BENIN: PRESIDENT YAYI DELIVERS STATE OF THE NATION ADDRESS

REF: A) COTONOU 1165; B) COTONOU 1247; C) COTONOU 1227


1. SUMMARY: On December 29, Benin's President Boni Yayi delivered
his first annual State of the Nation address at the National
Assembly in Porto Novo to National Assembly deputies, members of his
government, and the diplomatic corps. Appearing somewhat rundown and
tired, Yayi stressed the importance of improving the quality of
education and access to it, stimulating economic growth, and
changing existing attitudes and behaviors (including both tardiness
and corruption) to facilitate socioeconomic development. END
SUMMARY.


2. Yayi began by enumerating the difficulties he faced when he took
office in April 2006, including the all-but-empty treasury inherited
from the preceding government. Yayi ran through the list of economic
ills facing the country (including lackluster GDP growth of 3.5%;
fiscal indiscipline by the former government; problems in the
cotton, power, and telecommunications sectors; shortages and the
high cost of petroleum products; habitual tardiness and absences in
the workplace; and a lack of competitiveness at the Port of
Cotonou).


3. Yayi reiterated his goal of achieving at least 7 percent growth
to achieve poverty reduction in Benin. Citing sanitizing public
finances, increasing the supply of petroleum products, and improving
operations at the Port of Cotonou as steps his government has taken
to stimulate growth, Yayi laid out plans for the future. These focus
on improving transportation infrastructure, including opening a dry
port and airport in Parakou (Benin's main inland city),constructing
a second seaport, and building out the road network, as well as
extending the railroad to the border with Niger. Yayi singled out
agribusiness and housing construction as priority sectors. He
emphasized that good governance and the fight against corruption
were central axes in the effort to promote economic development and
appealed to Beninese to change prevailing behaviors and attitudes.


4. Yayi also stressed the importance of education, stating that
development in Benin is impossible unless the country nurtures its
human capital. Pointing to the government's recent decision to
eliminate all fees for primary education (Ref A),Yayi declared he
would hold a national forum on education in the near future. In
addition, he stated his government would work to improve primary
health care and, in particular, reduce the incidence of infant and
child mortality from malaria.


5. Yayi also mentioned the upcoming legislative elections in March
2007, appealed to the media to exercise a greater degree of
professional responsibility (Ref C),and affirmed his desire to
restore and instill respect for the rule of law. Referring to the
constitution, Yayi said it had served the country well for 16 years
but is not a perfect document and could benefit from some revision.
He did not elaborate.


6. Yayi said his "diplomatic offensive," which has taken him all
over the world in 2006 (including to the White House on December
14),aimed to reposition Benin as an attractive country for
investors and mentioned his oft-repeated vision of turning Benin
into the "Hong Kong of Africa."


7. COMMENT: Yayi's speech, while not proposing any major new
policies or initiatives, was a comprehensive presentation of what
ails Benin. He was also able to point to a reasonable record of
accomplishment in his first eight months, particularly in improved
budget transparency. Much still needs to be done, however, as
inefficiencies in both the public and private sectors continue to
hobble all sorts of business activity. With a disappointing cotton
harvest looming, it is not yet certain that Yayi's reforms will
translate into concrete economic growth. END COMMENT.

HOLTZAPPLE