Identifier
Created
Classification
Origin
09COTONOU326
2009-07-27 13:33:00
UNCLASSIFIED
Embassy Cotonou
Cable title:  

BENIN ECONOMIC NEWS: JUNE-JULY 2009

Tags:  EAGR EFIN ECON PGOV BN 
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R 271333Z JUL 09
FM AMEMBASSY COTONOU
TO SECSTATE WASHDC 1046
INFO ECOWAS COLLECTIVE
MILLENIUM CHALLENGE CORP WASHDC
AMEMBASSY PARIS 
AMEMBASSY DAKAR 
AMEMBASSY LONDON
UNCLAS COTONOU 000326 


DEPT FOR AF/E JKNIGHT, A/EPS, AF/W VHARPER AND ACOOK
DEPT PLEASE PASS USTR LAGAMA
PARIS FOR BKANEDA
LONDON FOR PLORD
DAKAR FOR FAS RHANSON

E.O. 12958: N/A
TAGS: EAGR EFIN ECON PGOV BN
SUBJECT: BENIN ECONOMIC NEWS: JUNE-JULY 2009

REF: COTONOU 257

WORLD BANK SUPPORTS ACCESS TO ENERGY IN BENIN
---------------------------------------------

UNCLAS COTONOU 000326


DEPT FOR AF/E JKNIGHT, A/EPS, AF/W VHARPER AND ACOOK
DEPT PLEASE PASS USTR LAGAMA
PARIS FOR BKANEDA
LONDON FOR PLORD
DAKAR FOR FAS RHANSON

E.O. 12958: N/A
TAGS: EAGR EFIN ECON PGOV BN
SUBJECT: BENIN ECONOMIC NEWS: JUNE-JULY 2009

REF: COTONOU 257

WORLD BANK SUPPORTS ACCESS TO ENERGY IN BENIN
--------------


1. On June 23, 2009, the World Bank approved 35 billion FCFA (USD 70
million) of credit to support the financing of projects to improve
access to energy in Benin. The projects include improvement of
access to electricity, construction and extension of electric grids,
rehabilitation and reinforcement of the network of SBEE (the
Beninese parastatal Electricity Corporation),improvement of the
efficiency of energy services in urban areas, extension of
electricity supply to rural areas, and sustainable energy services
to energy consumers through the improvement of self-financing and
the performance of energy organizations. The loan is financed by KFW
(Kreditanstalt fuer Wiederaufbau, the German Development Bank),the
Global Environment Facility, Energy Sector Management Assistance
Program, and the French Fund for Global Environment. Joseph
Baah-Dwomoh, the World Bank Representative in Benin, stated that the
approved project is part of the financing partners' strategic
assistance to Benin and supports the implementation of the Benin
National Growth and Poverty Reduction Strategy.

BENIN TO EXPLOIT OFF-SHORE OIL FIELDS
--------------


2. On June 23, 2009, the GOB and "la Compagnie Bninoise des
Hydrocarbures", an affiliate of "Societe Africa-Petro", signed a
joint agreement on oil production. According to the Minister of
Mines and Oil Research, Barthelemy Kassa, the compact will permit
the exploitation of the oil fields Fifa-1 and Hihon-1 within 18
months. Kassa noted the agreement will create jobs for Beninese and
enable the GOB to collect a 12 percent tax on oil exports.

EU TO SUPPORT ROAD REHABILITATION
--------------


3. On July 2, 2009, the European Union (EU)and the GOB signed a 43
billion FCFA (USD 91.5 million) credit to support the partial
financing of the rehabilitation of the Parakou-Beroubouay Road, a
section of the road network linking the Port of Cotonou to the
border of Niger. This sum represents about 54 percent of the
required 80 billion FCFA (USD 170 million) for the 143 km (about 90
miles) of this road. The rehabilitation of the Parakou-Beroubouay

Road is within the framework of the GOB's policy to become a
reliable logistics platform of trans-shipment to the north from the
West African coast. The EU is particularly committed to regular
maintenance of the national road network, which requires optimized
programming and efficient execution of maintenance work. The EU
cautioned that real improvement of the road network could not be
achieved without monitoring cargo weight at check points. The EU is
hopeful that the GOB will take appropriate action to prevent
overloaded trucks from using the country's roads.

COUNTERFEIT AND PIRACY WORKSHOP
--------------


4. From July 6 to 11, 2009, the World Customs Organization (WCO)
hosted a regional workshop on counterfeiting and piracy in Cotonou.
The workshop aimed to provide technical tools to customs agents in
their fight against what is becoming known as the "crime of the
century." The seminar included participants from West and Central
Africa. In his opening address, Christophe Zimmerman, the WCO's
Intellectual Property Expert, said "Most of what is sold in Africa
is counterfeit, and you are probably wearing some counterfeit
garments." He added that counterfeit products are flooding the
African continent because of low per capita income and the
incapacity of authorities to arrest counterfeiters and confiscate
counterfeit goods. Zimmerman urged African leaders to tackle
counterfeiting because it constitutes unfair competition, deters
private initiative, and wipes out local industries. The
participants exchanged their views and experiences in their
respective countries and devised draft legislation to combat the
counterfeiting phenomenon. The seminar focused particularly on
counterfeit cigarettes, pharmaceutical products and objects of mass
consumption.


5. Seminar participants recommend updating the customs laws of each
represented country to include counterfeiting and piracy as an
offense, as well as strengthening cooperation between regional
customs administrations to combat counterfeiting and piracy
efficiently. The participants also encouraged the formation of
airport and sea port task forces made up of customs officers and
copy right representatives. Capacity building of customs officers
and counterfeiting and piracy awareness programs are recommended.

THE BOAD TO SUPPORT THE RENOVATION OF HOTEL MARINA
-------------- --------------


6. On July 7, 2009, the West African Development Bank (BOAD) and the
four-star Marina Hotel in Cotonou signed a 3 billion FCFA (USD 6.4
million) credit agreement in Lome, Togo. The loan is intended to
finance the renovation and extension of the hotel, which includes
increasing its capacity from 200 to 250 rooms.

PRESIDENT YAYI VISITS CUSTOMS OFFICERS
--------------


7. On July 17, 2009, President Yayi visited customs officers at
Hilla-Condji on the Benin-Togo border in south-east Benin, to boost
morale and to enquire about challenges facing customs officers.
Second only to the Port of Cotonou, this border customs unit
increased its performance by 13 percent over expected customs
revenue in the first quarter of 2009. According to the Director
General of the Customs Administration, this performance could have
been even higher, if his colleagues did not have to contend with a
number of obstacles. These include lack of personnel, insufficient
truck parking, inadequate equipment to assess goods from Togo and
Ghana, and the absence of a computer network linking border posts
with headquarters. The President reassured customs officers that he
would do his best to improve working conditions to better their
performance.

COTTON
--------------


8. On July 17, 2009, the Minister of Agriculture, Animal Husbandry,
and Fishing, Gregoire Akofodji, held a working meeting with cotton
stakeholders. The objective of the meeting was to reiterate
President Yayi's cotton production target of 600,000 metric tons by

2012. On behalf of his colleagues, Patrice Talon (a heavily
invested stakeholder) reassured the Minister of his determination to
attain the production objective. Talon noted that there was no
discrepancy between the interests of cotton stakeholders and that of
the GOB because they will loose their investment if production does
not increase. Talon warned that if the comportment of some of the
stakeholders does not change, the 2012 target will remain an empty
slogan. The participants in the meeting drew Minister Akofodji's
attention to poor training of agricultural technicians and practices
of malfeasance rampant in cotton farmers' organizations. They
accused these organizations of thwarting the production objective by
embezzling farmers' revenue and diverting agricultural inputs
destined to the producers. In spite of an overall ginning capacity
of over 600,000 metric tons, Benin's cotton production has decreased
from over 400,000 metric tons in 2005 to 210,000 metric tons in

2008.

BOUSTANI