VZCZCXRO3958
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #0812/01 2731417
ZNR UUUUU ZZH
R 291417Z SEP 08
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 8505
INFO RUCNSAD/SADC COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 02 KINSHASA 000812 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTDA FOR LFITTS 
USAID FOR AFR/EA AND AFR/DP 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAID EINV PGOV PREL CG
SUBJECT: MINISTER OF PLAN WELCOMES CAS AND HIGHLIGHTS NEED FOR 
PRIVATE SECTOR ENGAGEMENT 
 
¶1.  (SBU) Summary:  Minister of Plan Olivier Kamitatu told USAID 
Director, DCM and Econcouns on September 18 that he welcomed the new 
Country Assistance Strategy (CAS) and hoped to engage international 
partners to improve DRC's investment climate and increase private 
sector development.  Kamitatu identified the energy and river 
transport sectors and development of Lake Tanganyika as specific 
priority areas for increased private sector development. 
Decentralization was described by Kamitatu as the greatest risk to 
the country after the situation in Eastern Congo.  Kamitatu 
acknowledged the need for improved statistical information to better 
coordinate and target development programs.  End Summary. 
 
COUNTRY ASSISTANCE STRATEGY WELL RECEIVED 
------------------------------------------ 
 
¶2.  (SBU) USAID Director outlined the vision of the CAS, 
highlighting the priority areas of peace and security, governance, 
economic growth, health and education.  The significant increase in 
U.S. bilateral assistance to the DRC was also noted by USAID 
Director and DCM.  Kamitatu expressed support for the general 
objectives of the CAS and noted he was pleased that our vision 
aligned well with the GDRC's development priorities as outlined 
under the Poverty Reduction Strategy Paper (PRSP) and "Cinq 
Chantiers" or five pillars of the GDRC development strategy. 
 
BUT CHALLENGES REMAIN 
---------------------- 
 
¶3.  (SBU) Turning to broader donor engagement and coordination, the 
Minister stated that his Ministry was developing a matrix to better 
evaluate international assistance and identify beneficiaries. 
However, limited capacity, weak statistical information and 
differing methodologies for data collection remain challenges.  For 
example, Kamitatu noted concerns over the most recent Demographic 
and Health Survey (DHS), which measured national HIV prevalence rate 
in DRC at 1.5%, lower than previous surveys.  As a result, some 
could believe that HIV/AIDS no longer represented a significant 
concern for the country.  USAID Director noted that an HIV/AID 
survey will be conducted as part of PEPFAR programming, which will 
provide additional statistical information. 
 
¶4.  (SBU) Decentralization was described by Kamitatu as highly 
sensitive and the greatest risk for stability after the situation in 
the East.  (Note:  The DRC's 2005 Constitution requires provinces to 
transfer 40 percent of their revenues to the federal treasury. 
Implementation of this requirement has been slow, however, 
reflecting both limited capacity at the provincial level as well as 
politically sensitivities. End Note.)  Kamitatu stated there needed 
to be more results, reforms, and efficiency to ensure the benefits 
of economic growth are distributed broadly.   Kamitatu prioritized 
security, followed by the judicial sector, food prices and energy as 
key challenges for development. 
 
INVESTMENT CLIMATE KEY 
----------------------- 
 
¶5.  (SBU) Kamitatu stated that he hopes to work with international 
partners to encourage private sector development.  The need for a 
strategic vision with the private sector is needed, according to 
Kamitatu.  He lamented that there had been few success stories since 
the 2006 elections.  Energy and river transport (including river 
ports) were identified by Kamitatu as key areas for potential 
development.  The potential development and exploitation of Lake 
Tanganyika was also highlighted. 
 
¶6.  (SBU) On energy, Kamitatu noted the need for a clearly defined 
policy for the short, medium and long-term. He told emboffs that the 
restructuring of the state-owned electricity utility, "Societe 
Nationale d'Electricite," (SNEL) and an international tender for the 
rehabilitation of the INGA I/II hydroelectric facility are slated by 
the end of the year.  Kamitatu also expressed strong interest in 
working to develop the country's river transport sector, the 
traditional principal means for transportation of both goods and 
people.  Increasing the capacity of ports, including river ports, 
would also help to open the country to international trade. 
 
¶7.  (SBU) Comment:  With the DRC once again ranked dead last in the 
World Bank's Doing Business survey, Kamitatu's expressed interest in 
increasing private sector development to improve the DRC's 
investment climate is encouraging.  Kamitatu rightly identifies both 
the energy and river transport sectors as key priorities for the 
development of the DRC's woefully inadequate infrastructure.  Post 
 
KINSHASA 00000812  002 OF 002 
 
 
appreciates USTDA support for SNEL and would welcome additional 
USTDA support in the area of river transport as part of broader USG 
efforts to promote U.S. commercial opportunities in the DRC and the 
country's economic development.  End comment. 
 
BROCK