PARTERNING FOR GLOBAL HUNGER AND FOOD SECURITY: DRC

UNCLAS SECTION 01 OF 02 KINSHASA 000994 SENSITIVE SIPDIS EEB/TPP/MTAA/ABT FOR ARYAN IO/HS FOR JTUMINARO AND RHAGEN C FOR MPLOWDEN E.O. 12958: N/A TAGS: EAGR ETRD ECON PGOV PREL CG SUBJECT: PARTERNING FOR GLOBAL HUNGER AND FOOD SECURITY: DRC RESPONSE REF: A) STATE 107298 B) KINSHASA 625 ¶1. (SBU) Summary: Economic Counselor and Head of USAID's Office of Economic Growth and Livelihoods delivered (Ref A) letter and proposal to Minister of Agriculture Norbert Basengezi Katitima on October 19, highlighting the USG commitment and approach to combating global hunger and promoting food security. USAID officer also presented background on the Comprehensive Africa Agricultural Development Programme (CAADP) and discussed how we can work together to support the DRC's participation in CAADP and the Global Hunger and Food Security Initiative. As in a previous meeting with Econcouns (Ref B),Basengezi noted his strong interest in working with the USG on enhancing food security in the DRC. To this end, he identified several areas for possible US-DRC cooperation, including activities to support U.S. investment in the agricultural sector, technical assistance to develop public-private partnerships for domestic fertilizer production, and a return of the Peace Corps. Bisengezi also requested USG advocacy with the government of the DRC (GDRC) and Parliament for increased funding for the agricultural sector in the DRC's draft 2010 budget. End summary. ¶2. (U) In presenting Bisengezi with the Secretary's letter and the proposal, Econcouns highlighted the U.S. approach to promoting food security and noted the significant efforts made in coordination with our development partners over the past several months. Econcouns and USAID stressed the importance of adherence to the L'Aquilla Priniciples to 1) support country-led processes; 2) ensure a comprehensive approach to food security; 3) strategically coordinate assistance; 4) support a strong role for multilateral institutions; and 5) sustain a robust commitment of financial resources. USAID then briefed Bisengenzi on the CAADP, stressing our interest in supporting the DRC's participation in CAADP and the importance of participating in the Global Hunger and Food Security Initiative. Econcouns and USAID stressed that under the Maputo Declaration, African governments have agreed to commit at least 10 percent of their national budgets to the agricultural sector. Other countries in the region such as Rwanda, Uganda and Ethiopia are participating more fully in CAADP, and Econcouns and USAID asked how the USG can support agriculture in the DRC. The DRC's national budget for the agricultural sector, however, is approximately 1 percent. USAID noted it would soon be launching a new agricultural policy project with the International Food Policy Research Institute (IFPRI),which may help support the GDRC's participation in CAADP. USAID also has programming to support decentralization of the DRC's agricultural sector in key provinces. ¶3. (SBU) In response, Bisengezi identified several areas for possible U.S. - DRC cooperation and/or support. First, Bisengezi appointed his Chief of Staff, who was present at the meeting, to serve as the POC at the Ministry of Agriculture to develop a GDRC technical team to formulate projects and coordinate with donors on food security, including advancing the DRC's participation in CAADP. Showing Emboffs examples of a variety of local agricultural products, including coffee, cocoa and soap, Bisengenzi requested USG support to help attract U.S. investors in Equateur and Orientale Qsupport to help attract U.S. investors in Equateur and Orientale provinces for the production of these products. If U.S. companies do not want to invest, Bisgenzi noted, the DRC would look to China. His preference, however, would be for American investment in these sectors. Bisengenzi also requested support from the USG for the development of public-private partnerships (PPP) to develop phosphate mining and processing to build capacity in local fertilizer production. Noting his first-hand positive experience with Peace Corps in the DRC, Bisengenzi reiterated (Ref B) his request that Peace Corps return to the DRC to provide technical assistance in agriculture. Bisengenzi noted aquaculture, in particular, as a recommended area of intervention for Peace Corps. 4.(SBU) Finally, Bisengenzi requested the USG advocate with the GDRC, Parliament and the IMF for increased resources in the DRC's national budget for the agriculture sector, noting we were the second donor that day that had raised the issue of national spending on agriculture. (Note: The GDRC's draft 2010 budget, submitted to the National Assembly in early October, allocates 1.4 percent of spending to the agriculture sector. Spending for agriculture has remained relatively constant in the DRC's budget over the past five years, generally between 1.0 to 1.6 percent. End note) Econcouns noted that food security is one of the five themes that we are focusing on in coordination with the GDRC as follow-up to Secretary Clinton's August 10/11 visit to the DRC. We will continue to engage at a senior level on food security in this context, in addition to our current programming to support the DRC's agricultural sector. KINSHASA 00000994 002 OF 002 ¶5. (SBU) Comment: As in previous meetings, Bisengezi was highly receptive to working with the USG on promoting food security in the DRC. The identification of a POC within the Ministry of Agriculture to organize a GDRC technical team to work with the USG and other donors to advance the DRC's participation in CAADP and other initiatives is an important first step. Some of Bisengezi's other proposals, including the development of public-private partnerships to support local production of fertilizer and efforts to attract U.S. investment in the agricultural sector also have merit. Post will pursue possible assistance and activities to support these efforts. The most challenging of Bisengezi's requests for USG support relates to the DRC's budget. Not only has the GDRC already submitted its draft budget to Parliament, the IMF has privately told Econcouns that they are concerned about any unrealistic spending increases by Parliament as it discusses the 2010 budget before final approval. There is no question that the GDRC must make a bigger investment in its agricultural sector. However, at the same time that many donors are advocating increased budgeting for the agricultural sector, there are considerable pressures to control spending and ensure a realistic budget that can be fully executed. In the long-term, the GDRC must do more to increase its revenue base so that the national budget can support increased investment in a range of sectors, including agriculture. The GDRC's low level of spending on the agricultural sector, however, is unlikely to change for this year. End Comment. GARVELINK