Identifier
Created
Classification
Origin
07KINSHASA149
2007-02-08 05:21:00
UNCLASSIFIED
Embassy Kinshasa
Cable title:
DRC JANUARY 2007 MONTHLY ECONOMIC REVIEW
VZCZCXRO1379 RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN DE RUEHKI #0149/01 0390521 ZNR UUUUU ZZH R 080521Z FEB 07 FM AMEMBASSY KINSHASA TO RUEHC/SECSTATE WASHDC 5562 INFO RUEHXR/RWANDA COLLECTIVE RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RHMFISS/HQ USEUCOM VAIHINGEN GE RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 02 KINSHASA 000149
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN EMIN ELAB EAIR PGOV CG
SUBJECT: DRC JANUARY 2007 MONTHLY ECONOMIC REVIEW
REF: KINSHASA 76
UNCLAS SECTION 01 OF 02 KINSHASA 000149
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN EMIN ELAB EAIR PGOV CG
SUBJECT: DRC JANUARY 2007 MONTHLY ECONOMIC REVIEW
REF: KINSHASA 76
1. (U) Summary.
- The IMF may visit the DRC in February for an informal review of
the Staff Monitored Program.
- The GDRC has not yet drafted a 2007 budget.
- Strikes and threatened work stoppages continue to increase.
- The outgoing head of DRC's gold mining parastatal, OKIMO, has
announced plans to offer public shares of the company.
- DRC has raised passenger fees for both domestic and international
flights.
- January consumer prices increased, and the Congolese franc (CF)
depreciated against the USD. End summary.
Aviation
--------------
2. (U) Following discussion with IATA (International Air Transport
Association),the DRC's airport authority (RVA) has raised
embarkation fees for domestic flights from USD six to USD 15, and
for international flights from USD 20 to USD 25.
4. (U) The RVA's CEO says USD 120 million is needed to modernize
airport infrastructure and equipment for twenty DRC airports over a
five-year period and that the embarkation fees will help fund these
projects.
Finance
--------------
5. (U) An IMF team from Washington is tentatively planning to visit
the DRC in mid-February for technical consultations and an informal
review of the GDRC's Staff Monitored Program. However, confirmation
of the visit is contingent upon the timing of the confirmation and
installation of the new government.
6. (U) The GDRC has not yet drafted a new 2007 budget, and is not
expected to do so before March 2007. In the interim, the GDRC is
operating at 2006 budgetary levels via a provisional credit
arrangement approved by President Kabila. The DRC's budget is on a
calendar-year basis.
7. (SBU) The package of benefits a November 13, 2006 presidential
decree accords to the Transitional Vice Presidents and their
families will cost the GDRC USD three to four million (reftel). The
decree was made public in January.
Labor
--------------
8. (U) The number of threatened and wildcat strikes, primarily over
salary arrears, continues to increase. Teachers in Western Kasai
province and employees of OCPT (the DRC post and telecommunication
parastatal) went on strike, while employees of the DRC's port and
water authorities (respectively ONATRA and REGIDESO) are threatening
to strike. Further, taxi and bus drivers in Eastern Kasai staged a
one-day strike to protest harassment by traffic police and Ministry
of Transport controls, while those in Kinshasa regularly threaten to
strike for the same reasons.
9. (U) According to the DRC Ministry of Labor's National Employment
Office (ONEM) and registration statistics from the DRC's social
security service, one million persons work in the formal labor
sector, including 600,000 in the public sector, and 400,000 in the
private sector. (Comment: Post believes this figure may be high.
End comment.)
Mining
--------------
10. (U) The Lubumbashi, Katanga trial stemming from the October 2004
Kilwa incident (septel) is still in preliminary proceedings.
Several FARDC soldiers and three expatriates are accused of
participating in or providing logistical support used in the killing
of an estimated 100 villagers. All three civilian defendants were
employees of Anvil Mining at the time of the incident.
11. (U) The World Bank announced the launch of a three-month review
of the mining sector to help determine World Bank funding
KINSHASA 00000149 002 OF 002
priorities. It has begun consulting with bilateral and multilateral
missions, the GDRC, parastatals and the private sector.
12. (U) The CEO of OKIMO, DRC's gold mining parastatal, has
announced his plans to list the company on the London Alternative
Investment Market in 2007.
Consumer Inflation Rate
--------------
13. (U) Post's market-basket survey indicates a 3.8 percent January
consumer inflation rate against December 2006 prices, driven by
increases in the cost of transport and seasonal shortages, hence
price rises, of basics such as manioc and maize.
Exchange Rate
--------------
14. (U) The Congolese franc (CF) depreciated by about 7.5 percent
against the USD in January, according to the Congolese Central
Bank's official exchange rate.
Week ending 1/7 1/14 1/21 1/28
Central Bank Rates: 507 528 532 539
Parallel Rates
Kinshasa 520 535 540 540
Lubumbashi 525 530 530 530
Mbuji-Mayi 525 530 530 530
Bukavu/Goma 530 535 530 535
Kisangani 520 535 530 530
Matadi/Boma 530 530 540 535
MEECE
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN EMIN ELAB EAIR PGOV CG
SUBJECT: DRC JANUARY 2007 MONTHLY ECONOMIC REVIEW
REF: KINSHASA 76
1. (U) Summary.
- The IMF may visit the DRC in February for an informal review of
the Staff Monitored Program.
- The GDRC has not yet drafted a 2007 budget.
- Strikes and threatened work stoppages continue to increase.
- The outgoing head of DRC's gold mining parastatal, OKIMO, has
announced plans to offer public shares of the company.
- DRC has raised passenger fees for both domestic and international
flights.
- January consumer prices increased, and the Congolese franc (CF)
depreciated against the USD. End summary.
Aviation
--------------
2. (U) Following discussion with IATA (International Air Transport
Association),the DRC's airport authority (RVA) has raised
embarkation fees for domestic flights from USD six to USD 15, and
for international flights from USD 20 to USD 25.
4. (U) The RVA's CEO says USD 120 million is needed to modernize
airport infrastructure and equipment for twenty DRC airports over a
five-year period and that the embarkation fees will help fund these
projects.
Finance
--------------
5. (U) An IMF team from Washington is tentatively planning to visit
the DRC in mid-February for technical consultations and an informal
review of the GDRC's Staff Monitored Program. However, confirmation
of the visit is contingent upon the timing of the confirmation and
installation of the new government.
6. (U) The GDRC has not yet drafted a new 2007 budget, and is not
expected to do so before March 2007. In the interim, the GDRC is
operating at 2006 budgetary levels via a provisional credit
arrangement approved by President Kabila. The DRC's budget is on a
calendar-year basis.
7. (SBU) The package of benefits a November 13, 2006 presidential
decree accords to the Transitional Vice Presidents and their
families will cost the GDRC USD three to four million (reftel). The
decree was made public in January.
Labor
--------------
8. (U) The number of threatened and wildcat strikes, primarily over
salary arrears, continues to increase. Teachers in Western Kasai
province and employees of OCPT (the DRC post and telecommunication
parastatal) went on strike, while employees of the DRC's port and
water authorities (respectively ONATRA and REGIDESO) are threatening
to strike. Further, taxi and bus drivers in Eastern Kasai staged a
one-day strike to protest harassment by traffic police and Ministry
of Transport controls, while those in Kinshasa regularly threaten to
strike for the same reasons.
9. (U) According to the DRC Ministry of Labor's National Employment
Office (ONEM) and registration statistics from the DRC's social
security service, one million persons work in the formal labor
sector, including 600,000 in the public sector, and 400,000 in the
private sector. (Comment: Post believes this figure may be high.
End comment.)
Mining
--------------
10. (U) The Lubumbashi, Katanga trial stemming from the October 2004
Kilwa incident (septel) is still in preliminary proceedings.
Several FARDC soldiers and three expatriates are accused of
participating in or providing logistical support used in the killing
of an estimated 100 villagers. All three civilian defendants were
employees of Anvil Mining at the time of the incident.
11. (U) The World Bank announced the launch of a three-month review
of the mining sector to help determine World Bank funding
KINSHASA 00000149 002 OF 002
priorities. It has begun consulting with bilateral and multilateral
missions, the GDRC, parastatals and the private sector.
12. (U) The CEO of OKIMO, DRC's gold mining parastatal, has
announced his plans to list the company on the London Alternative
Investment Market in 2007.
Consumer Inflation Rate
--------------
13. (U) Post's market-basket survey indicates a 3.8 percent January
consumer inflation rate against December 2006 prices, driven by
increases in the cost of transport and seasonal shortages, hence
price rises, of basics such as manioc and maize.
Exchange Rate
--------------
14. (U) The Congolese franc (CF) depreciated by about 7.5 percent
against the USD in January, according to the Congolese Central
Bank's official exchange rate.
Week ending 1/7 1/14 1/21 1/28
Central Bank Rates: 507 528 532 539
Parallel Rates
Kinshasa 520 535 540 540
Lubumbashi 525 530 530 530
Mbuji-Mayi 525 530 530 530
Bukavu/Goma 530 535 530 535
Kisangani 520 535 530 530
Matadi/Boma 530 530 540 535
MEECE