VZCZCXRO7298
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #1168/01 3651400
ZNR UUUUU ZZH
R 301400Z DEC 08
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 8979
INFO RUCNSAD/SADC COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RUEHNR/AMEMBASSY NAIROBI 5234
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 03 KINSHASA 001168 
 
SENSITIVE 
SIPDIS 
 
USAID FOR AFR/EA, CMM AND AFR/DP 
NAIROBI FOR USAID/EA/RCMG 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAID EINV PGOV PREL CG
SUBJECT: AMBASSADOR'S TOUR D'HORIZON WITH THE MINISTER OF PLAN 
 
¶1.  (SBU) Summary: The Ambassador met with Minister of Plan Olivier 
Kamitatu on December 23 to discuss a broad range of challenges 
facing the Democratic Republic of Congo (DRC). Kamitatu described 
four priorities for the DRC: security, creation of development 
corridors, capacity building, and an improved investment climate. 
Regional economic integration was highlighted by Kamitatu as a 
necessary element to support security and stability in eastern DRC. 
Kamitatu requested USG support and leadership in creating a 
development corridor for the Great Lakes region to promote economic 
integration and increase legitimate trade flows among the DRC, 
Uganda and Rwanda.  The Ambassador was accompanied to the meeting by 
the Acting USAID Mission Director and Economic Counselor 
(notetaker). End Summary. 
 
ECONOMIC AND SECURITY CHALLENGES 
-------------------------------- 
 
¶2. (SBU) The Ambassador opened the meeting by noting that the DRC 
faced difficult times ahead due to the impact of the global 
financial crisis. Kamitatu responded that security remained 
fundamental; without security, it would be impossible to address 
economic and financial challenges. Kamitatu described economic 
integration in the Great Lakes region as a key element to support 
long-term security and stability in the region. Specifically, 
Kamitatu cited the need to reinvigorate existing mechanisms such as 
the CEPGL (Communaute Economique des Pays des Grands Lacs or 
Economic Community of the Great Lakes Countries, in English) in 
areas such as energy, roads, and private investment.  To this end, 
the Foreign Minister plans to appoint a POC for investment in the 
Great Lakes. 
 
¶3. (SBU) Regional integration and economic growth also remain key 
for the restoration of the central state and to address anticipated 
population growth in both the DRC and Rwanda, Kamitatu added. 
Kamitatu remarked that with Rwanda's population set to increase to 
20 million in the coming decades, a key question will be how to 
politically organize local Hutu populations. The Ambassador noted 
that stronger legitimate trade links would make peace easier for all 
parties, and that economic integration and growth in the region 
would also reduce Nkunda's legitimacy. 
 
¶4. (SBU) Kamitatu noted that the GDRC has already initiated a 
program of "development corridors" within the DRC, but that there 
remained a need to create interest among Rwanda, Uganda and DRC in 
developing a corridor that would include the Kivus. Specifically, 
this corridor could stretch from Kinsangani in the DRC to the Indian 
Ocean ports of Dar-Es-Salaam and Mombassa.  Noting international 
support for existing development corridors in the DRC, including the 
Bas Congo-Angola corridor and the Katanga-South Africa corridor, 
Kamitatu asked who might provide leadership to support a Great Lakes 
corridor. Acting USAID Mission Director noted regional USAID/East 
Africa support for the Northern Transport Corridor, aimed at 
facilitating trade within the region through mechanisms such as 
customs harmonization, and promised to examine the role of the DRC 
in this initiative. 
 
CAPACITY BUILDING ALSO KEY 
--------------------------- 
 
¶5. (SBU) Kamitatu highlighted capacity building as another area 
where they GDRC needed support, both at the central and provincial 
government levels. Acting USAID Mission Director noted that the new 
bilateral framework agreement on USG assistance highlights 
strengthening capacity and provides for specific agreements in 
sectors, with the idea of providing host governments with greater 
decision-making authority. 
 
¶6. (SBU) The Ambassador noted USG efforts to promote a more 
professional military, including plans to train the First Battalion, 
totaling approximately 900 soldiers.  The hope is for this training 
to serve as a model for future training and broader 
military-to-military cooperation.  Unlike military training from 
other Western donors, the USG training will include the donation of 
equipment. Results will take time, but we need to start addressing 
the issue, added the Ambassador.  Kamitatu noted that payment of 
salaries remained essential, to which the Ambassador responded that 
the USG would need assurances on this issue before undertaking the 
training. Kamitatu added that there were simply too many soldiers 
currently in the Kivus, which had led to a lack of discipline. 
Better to have fewer, but better trained, soldiers. While it is 
important for the GDRC to work with international partners, Kamitatu 
stressed that the Congolese themselves must solve their own 
 
KINSHASA 00001168  002 OF 003 
 
 
problems. 
 
DONOR COORDINATION UPDATE 
------------------------- 
 
¶7. (SBU) Turning to donor coordination, Kamitatu noted the first 
results of the Aid Management Platform (French acronym PGA), used by 
the Ministry of Plan to track and manage assistance flows. According 
to Kamitatu, results showed that the DRC received $1.7 billion in 
donor assistance from January 2007 through June 2008. (Note: 
Kamitatu did not go into detail with regard to which resources are 
counted as aid within the PGA; however, USAID assistance is reported 
within the platform. End Note.) Kamitatu compared these flows to $1 
billion in private investment in Katanga province alone, pointing to 
the need to increase private sector investment as a means of 
speeding economic growth. Finally, Kamitatu stressed the need to 
reinforce the DRC's statistical capacity (particularly within the 
National Statistical Institute), noting that information management 
was key to effective implementation of the DRC's development agenda. 
 
 
¶8. (SBU) Responding to a question from the Acting USAID Director 
with regard to any changes that might be anticipated in the Thematic 
Group structure, through which donors and the government work 
together in 15 work areas, Kamitatu lamented that the Thematic 
Groups were not functioning more effectively.  Where groups were 
functioning well, Kamitatu noted strong engagement directly from the 
GDRC Minister with oversight of the group.  However, Kamitatu cited 
a lack of GDRC leadership and engagement at the Ministerial level 
within many of the groups, as well as insufficient operational 
budgets. (Comment: The question of operational budgets for the 
Thematic Groups has been a point of contention since their 
inception.  Whether donors would support allocating funding to the 
groups remains in question, particularly over concerns that these 
resources would be used largely for per diems and other fees to 
Congolese participants in the groups.  End Comment.)  The GDRC, 
under the leadership of Prime Minister Muzito, continues to work to 
address these issues.  According to Kamitatu, the focus of 
donor-government coordination must be on sectoral priorities in the 
main groups, including infrastructure, agriculture, health and 
education. 
 
INVESTMENT CLIMATE KEY 
---------------------- 
 
¶9. (SBU) The Ambassador stressed that FDI remained key for the DRC's 
long-term development. There must be success stories to attract 
investors.  Kamitatu concurred and highlighted two potential areas 
for investment: energy and the deep sea port in Banana (Muanda). 
Over the next five years, the GDRC will place a priority on 
electricity and water.  In the energy sector, there are plans to 
launch a feasibility study shortly on INGA II; however, there must 
also be a focus on smaller energy projects, not just INGA. 
 
¶10. (SBU) Turning to an IMF program and the Chinese agreement, 
Kamitatu noted that donors' views on the Chinese agreement had 
changed from two years ago, and that the focus now was on more 
technical aspects of the deal.  He hoped that the IMF would find a 
solution-the GDRC needs HIPC to maintain the Poverty Reduction 
Strategy Plan (PRSP), Kamitatu added. Kamitatu noted there remains a 
need to create more incentives for investment and improve 
infrastructure. For example, he noted President Kabila's goal to 
connect the port of Matadi to the city of Kisangani within the next 
three years. The DRC's projected economic growth for 2009 of 5 
percent, however, is not enough to reduce poverty. The Ambassador 
noted the USG's desire to support the DRC's development and that 
there had been an increase in levels of development, humanitarian 
and military assistance. 
 
¶11. (SBU) Comment. While Kamitatu repeated several familiar themes- 
the need for energy sector development, an improved investment 
climate, and enhanced capacity to track and manage international 
assistance-- his call for greater economic integration in the Great 
Lakes to support security in eastern DRC was a new element in our 
discussions. Post concurs with Kamitatu that regional economic 
integration would play a positive role in promoting the long-term 
stability and prosperity of the region. While halting the flow of 
illegal trade and the exploitation of natural resources in the Kivus 
must continue to be addressed, the positive role that legitimate 
trade and regional integration can play in stemming conflict within 
the region should not be overlooked. End Comment. 
 
 
KINSHASA 00001168  003 OF 003 
 
 
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