This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS  KINSHASA 000231 
 
SIPDIS 
 
SIPDIS 
 
 
DEPT FOR DRL/IL-LHOLT AND AF/RSA-MHARPOE 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ELAB EAIR ETRD PGOV CG EMI
SUBJECT: DRC JANUARY ECONMIC REVIEW 
 
REF: A) Kinshasa 182 
     B) Kinshsa 216 
 
¶1. (U) SUMMARY 
-------------- 
 
- An IF delegation visited Kinshasa for an interim revie 
of the GDRC's compliance with the IMF economic rogram. 
- A December 30 presidential decree estalished OFIDA, the 
Congolese customs agency, as te sole customs collector. 
- Labor strife, includig threatened and actual strikes, 
continues in vaious public employee sectors. 
- The DRC's UN Joit Logistics Center will not publish the 
results f its December audit of six Congolese airlines. 
 The Parliament has not yet approved the 2006 budget. 
- The US Coast Guard(USCG) has provisionally removed the 
GDRC from is list of countries that have not implemented 
effctive anti-terrorism measures at their maritime pots. 
- The GDRC's main port at Matadi continues t exceed its 
container capacity. 
- A new manageent team took over the mining parastatal 
Gecamins, as part of its restructuring. 
 - A COMESA (Comon Market of Eastern and Southern Africa) 
delegaion visited the DRC in January to advocate for the 
GDRC's participation in COMESA's free trade area and 
customs union. 
- Post recorded January inflation of 0.6 percent. End 
summary. 
 
AVIATION 
-------- 
 
¶2. (U) MONUC has not released the results of the December 
inspection of six Congolese airlines.  The UN Joint 
Logistics Center organized the inspection to assess the 
safety standards of Congolese airlines that UN personnel 
would potentially use in the DRC during 2006. 
 
LABOR 
----- 
 
¶3. (U) Judges in Kinshasa and some of the provinces are 
striking to protest the Ministry of Justice's decision to 
transfer 500 judges to different judicial districts and 
the Parliament's failure to pass a Law on Magistrates 
designed to establish a more independent judiciary. 
 
¶4. (U) The main teachers' unions continue to threaten to 
strike if teachers do not receive a pay increase, but 
union leaders have indicated that they want to see the 
2006 budget before making a decision.  Congolese Catholic 
Church officials oppose the strike; the Church operates a 
substantial number of schools nationwide staffed by 
government-paid teachers.  Nevertheless, isolated 
provincial strikes have occurred, such as in Katanga, 
Kasai Occidental. 
 
¶5. (U) The employees of ONATRA (the Congolese port 
authority), suspended a January 13 strike they initiated 
to protest a January 3 presidential decree designating 
OFIDA (the DRC's customs agency) as the sole operator and 
collector of customs and excise taxes at all border posts. 
OGEFREM (DRC's maritime freight management) and OCC (DRC 
customs inspection service) employees had also joined the 
strike.  The workers have asked the government to give the 
duty collection responsibilities to a neutral third-party. 
 
¶6. (U) Nurses went on strike January 13 to protest the 
GDRC's failure to pay their full salaries.  Hospitals 
throughout the DRC are offering limited services. However, 
in Mbandaka, Equateur province, the Prosecutor arrested 
the head of the nurses' union for striking. 
 
MINING 
------ 
 
¶7. (U) President Kabila has named a new management team at 
Gecamines, the Congolese copper/cobalt/zinc mining 
parastatal, as part of the World Bank-supported reform of 
the enterprise (reftel A). 
 
¶8. (U) The GDRC has rescheduled its Kimberley Process 
Alluvial Mining Sub-group meeting for February 22-23. 
 
PUBLIC FINANCE AND TAXATION 
--------------------------- 
 
¶9. (U) An IMF team visited the DRC January 23 through 
February 2 for an interim review of the GDRC's economic 
performance, in preparation for its sixth and final review 
of the current program (septel). 
 
¶10. (U) The Parliament's Economic and Finance committees 
(EcoFin) have reached a compromise between the Senate and 
Assembly 2006 budget versions, but the plenary session has 
not convened to vote on it.  The primary disputed point is 
the revenue percentage that the GDRC should retrocede to 
certain state agencies. 
 
¶11. (U) The GDRC's Poverty Reduction Strategy Paper (PRSP) 
will not be complete before March.  PSRP Implementation 
will probably begin after July 1, when the new government 
is in place.  This pushes back achievement of the HIPC 
completion point to the third quarter of 2007.  The PRSP 
must be implemented for one year before completion point 
is reached. 
 
TRADE 
----- 
 
¶12. (U) A COMESA delegation visited the DRC the week of 
January 23 to advocate Congolese engagement in COMESA's 
customs union and free trade zone.  The DRC is a member of 
COMESA, but it is not currently paying its dues nor 
playing an active role in the organization. 
 
TRANSPORTATION 
-------------- 
 
¶13. (U) The US Coast Guard provisionally removed the GDRC 
from its list of countries that have not complied with 
maritime anti-terrorism provisions.  In its January 24 
Port Security advisory, the USCG has lifted the conditions 
of entry imposed on the DRC, pending further port 
inspections (reftel B).  However, the excess number of 
containers at the port continues to severely hamper 
commercial activity. 
 
INFLATION 
--------- 
 
14.(U) January inflation was 0.6 percent. 
 
EXCHANGE RATE 
------------- 
 
¶15. (U)  Week ending 01/06    01/13     01/20     01/31 
CENTRAL BANK RATE    435      438        434      434 
PARALLEL MARKETS 
-KINSHASA           430-440   440-450   430-440   430-440 
-LUBUMBASHI         440-450   445-460   440-450   450-460 
-MBUJIMAYI          440-445   440-450   430-440   430-440 
-KISANGANI          450-470   450-480   460-480   450-470 
-GOMA               460-475   460-475   450-475   450-470 
-BUKAVU             460-475   460-475   450-475   450-470 
 
MEECE 
 
 
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