Identifier
Created
Classification
Origin
09LIBREVILLE47
2009-02-06 09:17:00
UNCLASSIFIED
Embassy Libreville
Cable title:  

CENTRAL AFRICAN LEADERS CONFRONT ECONOMIC CRISIS

Tags:  ECON EFIN EAID ECIN GB CM CT CD CF EK ZF 
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R 060917Z FEB 09
FM AMEMBASSY LIBREVILLE
TO SECSTATE WASHDC 0890
INFO AMEMBASSY BRAZZAVILLE 
AMEMBASSY YAOUNDE 
AMEMBASSY NDJAMENA 
AMEMBASSY BANGUI 
AMEMBASSY MALABO
AMEMBASSY PARIS
UNCLAS LIBREVILLE 000047 


DEPT ALSO FOR AF/C LISA KORTE
PARIS FOR AFRICA WATCHER

E.O. 12958: N/A
TAGS: ECON EFIN EAID ECIN GB CM CT CD CF EK ZF
SUBJECT: CENTRAL AFRICAN LEADERS CONFRONT ECONOMIC CRISIS

UNCLAS LIBREVILLE 000047


DEPT ALSO FOR AF/C LISA KORTE
PARIS FOR AFRICA WATCHER

E.O. 12958: N/A
TAGS: ECON EFIN EAID ECIN GB CM CT CD CF EK ZF
SUBJECT: CENTRAL AFRICAN LEADERS CONFRONT ECONOMIC CRISIS


1. SUMMARY: The heads of state of the Central African Economic and
Monetary Community (CEMAC) met in Libreville to discuss regional
implications of the current world economic crisis and to plan
concerted measures to deal with the crisis. Also on the agenda were
the estimated USD 584 million investment loss of the Bank of Central
African States, the creation of a regional airline company, and a
pooled contribution of USD 16 million to assist with the peace
process in the Central African Republic. END SUMMARY.


2. CEMAC convened an extraordinary summit of its heads of state to
examine regional effects of the current world economic crisis and to
identify ways to confront the crisis. In the short-term, the
leaders agreed to organize a regional conference later this month,
bringing together Ministry and industry representatives of the
sectors most affected by the crisis. Conference participants will
be charged with developing a set of short- and medium-term measures
to deal with the crisis.


3. In terms of a long-term, structural response to the world
economic crisis, the CEMAC heads of state agreed to maintain and
reinforce the administrative, judicial, and commercial reform
process undertaken at the Heads of State Summit in June 2008,
notably the CEMAC Regional Economic Program (PER/CEMAC),which
focuses on five economic sectors as engines for regional economic
diversification: energy, agriculture, forestry, fisheries, and
mining. The long-term structural reforms agreed upon also include a
push for greater freedom of movement of CEMAC citizens throughout
the CEMAC zone, the issuing of government bonds to raise capital for
large-scale national investment projects, the creation of a fund to
support small business development, and banking reforms aimed at
increasing access to long-term credit.


4. The assembled heads of state also addressed the issue of the
estimated USD 600 million lost on investments made by the Bank of
Central African States (BEAC). [NOTE: The time period of the loss
has not been released. END NOTE.] The investments were made for the
most part through the French Societe Generale des Banques. The
leaders called for a general audit of the central bank's operations
as well as a specific audit of investment operations. At the same
time, the heads of state agreed to suspend all investment activity
until further notice, with the goal of "preserving the credibility
and stability" of BEAC.


5. The CEMAC leaders made two additional decisions not directly
related to the world economic crisis. First, they agreed to provide
USD 16 million to the Central African Republic, aimed at assisting
that country's peace process, namely the disarmament,
demobilization, and rehabilitation of former rebel fighters.
Second, they agreed to continue negotiations with South African
Airways and other potential economic partners towards the
establishment of a regional air carrier, Air CEMAC, as well as
continue the process of identifying the future headquarters of the
airline.


6. COMMENT: The process toward economic integration in Central
Africa continues, albeit by fits and starts. While similar
conferences in the region have produced impressive plans and
projects, the record of achievements on the ground has been less
than stellar. If nothing else, however, this meeting demonstrated
that Central African governments at the highest levels have finally
accepted that they are confronted by a serious crisis that will
require a concerted and sustained response. Whether the measures
proposed by the CEMAC heads of state will be sufficient remains an
open question. END COMMENT.

REDDICK