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P 130612Z FEB 09
FM AMEMBASSY COTONOU
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RUEHLO/AMEMBASSY LONDON 0417

UNCLAS SECTION 01 OF 03 COTONOU 000044 
 
SIPDIS 
 
DEPT FOR AF/W ACOOK 
LONDON FOR PETER LORD 
PARIS FOR BKANEDA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINR ECON EFIN PHUM BN
SUBJECT: BENIN: PRESIDENT YAYI DELIVERS STATE OF THE NATION ADDRESS 
 
¶1. (U) SUMMARY: On December 30, 2008, President Yayi delivered his 
third annual State of the Nation Address at the National Assembly in 
Porto-Novo to National Assembly deputies, members of his government, 
and the diplomatic corps, summarizing the achievements of his 
government. He mentioned that in spite of the various global crises 
in 2008, his government made significant progress towards the 
prosperity of Benin through consolidation of democracy and 
strengthening of the rule of law; reorganization of the public 
administration; stabilization of the macroeconomic framework; 
promotion of economic renewal; infrastructure development; human 
capital development, and equal and sustainable local development. 
President Yayi said that the visit of former President Bush to Benin 
on February 16, 2008 was indicative of successful Beninese 
diplomacy. The president stated that building and transforming Benin 
into an emerging country is a breathtaking and permanent task. 
Therefore, he called on every Beninese citizen to join hands in 
order to tackle the current challenges that Benin faces. END 
SUMMARY 
 
 
 
 
 
----------------------------------- 
GoB's responses to the world crises 
----------------------------------- 
 
¶2. (U) President Yayi highlighted the difficult environment in which 
his government worked in 2008, recalling the oil, food and financial 
crises that hit the world in 2008, and the impact they had on 
Benin's economy. He said that his government in one hand took 
measures linked to the present economic climate to mitigate the 
exogenous impact of these crises and on the other initiated steps to 
find lasting solutions to the crises. These measures included the 
decision to eliminate taxes on a number of imported goods to control 
domestic price increases. This represented 90 Billions CFA (roughly 
180,000,000 USD) or over 16 percent of Benin's tax revenue. 
President Yayi cited also the emergency plan to support food 
security through increase and diversification into agricultural 
products other than cotton. Nevertheless, President Yayi 
acknowledged that the global financial crisis did not directly 
impact Benin's economy because of its vigorous financial regulations 
and the alertness of African regional financial institutions. 
 
------------------------------------------- 
Strengthening democracy and the rule of Law 
------------------------------------------- 
 
¶3. (U) President Yayi said that, at his request, the European 
Commission conducted a feasibility study for the design of a 
Permanent Computerized Voter Registry (LEPI) to ensure free and fair 
elections in Benin. He announced that the implementation of the LEPI 
project would require 16 Billions CFA (32,000,000 USD). The 
president added that he had tasked a national committee with 
examining the constitution and proposing amendments with a view to 
consolidating democracy and the rule of law. The committee's 
amendment proposals would be publicized before its submission to the 
National Assembly for final approval. President Yayi highlighted the 
creation in 2008 of the National Committee for Governance and the 
High Commissioner for Concerted Governance. He described both 
institutions as valuable tools for participatory governance and 
sustainable democracy.  Additionally, the Beninese Head of State 
enumerated the measures taken by his government to improve the 
security of Beninese citizens which had been threatened in 2008. 
 
 
 
 
 
-------------------------------------- 
Reorganizing the public administration 
-------------------------------------- 
 
¶4. (U) President Yayi told the audience that his government 
attempted to depoliticize public administration. To that end, he 
said that the government put in place a new competence-based policy 
that allows the appointment of senior civil servants to technical 
positions. The government also improved civil servants' working 
condition and increased their salaries and other related allowances 
to keep up with the cost of living. He said that the wage bill had 
increased by 6 Billion CFA (12 million USD) in 2008. 
 
----------------------------- 
Improving and stabilizing the 
macroeconomic framework 
----------------------------- 
 
COTONOU 00000044  002 OF 003 
 
 
 
¶5. (SBU) President Yayi said that the vitality of the economic 
activity in Benin fuelled economic growth in spite of the effects 
induced by the oil, food and financial crises. He revealed that 
Benin recorded 5.1 percent growth rate in 2008, an increase from 4.6 
percent in 2007.  The government obtained this result thanks to the 
increase of agricultural products other than cotton and 
infrastructure development. However, President Yayi admitted that 
strengthening of economic growth had occurred in an inflationary 
climate led by food and oil prices. He said that Benin had an 
inflation rate of 8.3 percent in 2008 while in 2007 it was only 1.3 
percent. The president noted that Benin was among the rare member 
countries of the West African Economic and Monetary Union (UEMOA) 
which had very low external debts. He explained that Benin's 
external debt amounted to 12 percent of GDP. President Yayi assured 
the public that Benin's debt capacity remains intact, and that its 
public revenue allows the government to meet its sovereign 
commitments. 
 
-------------------------- 
Advancing economic renewal 
-------------------------- 
 
¶6. (U). President Yayi said that his government initiated structural 
reforms to foster economic renewal. These reforms aimed to redefine 
the role of the state; to improve the competitiveness of the economy 
by providing adequate and low-cost inputs; to insure good management 
of public funds, to improve economic governance and increase the 
fight against corruption and to attract direct foreign investments. 
He also outlined the transfer of production plants from the private 
sector to the public sector noting the partial transfer of the 
cotton parastatal SONAPRA's production tool through the creation of 
the Company of Cotton Development (SODECO). The president stated 
that the government was in the process of opening the 
Telecommunication parastatal's capital to private investment. 
President Yayi announced that the government engaged in the 
modernization of Cotonou's port in order to improve its regional 
competitiveness. 
 
-------------------------- 
Infrastructure development 
-------------------------- 
 
¶7. (U) President Yayi said that the government implemented an 
ambitious infrastructure development policy through the restoration 
and modernization of the Beninese road network. The government 
expects to tar 306.5 kilometres of road out of the 6076 kilometres 
that constitute the network (1821 kilometres of road are actually 
tarred). The Beninese president confessed that much more needed to 
be done to restore the whole network. In addition to this, he 
highlighted the construction of the two highway flyovers in Cotonou, 
which cost 15 billion CFA (30 million USD), and announced the 
construction of an airport in Tourou, a village located in northern 
Benin. 
 
------------------------- 
Human capital development 
------------------------- 
 
¶8. (U) President Yayi mentioned that the government built 6,000 new 
classrooms throughout the country to meet the sudden rise in school 
registration generated by his decision to make primary and secondary 
school free. The government recruited more teachers to face the 
increased enrolment. The president said that the government 
micro-credit program for the poor, the National service, and the 
National Fund for the Promotion of Business and youth unemployment 
contributed to reducing unemployment. 
 
 
 
 
 
 
 
----------------------------- 
Ensuring an equal and 
sustainable local development 
----------------------------- 
 
¶9. (U) The president mentioned that he had tasked a commission with 
designating capital cities for six provinces that were formerly 
administered out of neighboring provincial capitals to bring central 
government closer to communities. As part of the implementation of 
the Millennium Development Goals, President Yayi announced that the 
government had started "the Millennium Villages project" for 
identifying strategies to reduce poverty through infrastructure and 
human capital development and program for women in 12 communities of 
 
COTONOU 00000044  003 OF 003 
 
 
Benin. He also said that the government developed a National 
Decentralization Policy (PONADEC) to sustain local development. 
 
-------------------------------- 
Advancing an efficient diplomacy 
-------------------------------- 
 
¶10. (U) President Yayi contended that former President Bush's 
February 2008 historic visit had demonstrated that Beninese 
diplomacy was successful and geared towards development. The 
president highlighted that the organization of the June 2008 
Sahel-Saharan States Community Summit (CEN-SAD) in Cotonou was 
another diplomatic success. 
 
------------------------------ 
Calling for unity and hard work 
------------------------------ 
 
¶11. (U) President Yayi recognized that much needed to be done to 
reach economic prosperity. He has long stressed the need to join 
forces and work hard in order to attain his vision to make Benin an 
emerging country. Yet, he recognized that the achievement of such 
objectives is a challenging and breathtaking exercise. 
 
¶12. (SBU) COMMENT:  The GoB has made laudable progress towards its 
development goals in 2008. President Yayi was able to point to a 
reasonable record of achievement in 2008, in spite of the tense 
political climate that prevailed. It is notable that the 
government's track record was consistent with President Yayi's 
agenda for an emerging Benin, though much still needs to be done. 
While President Yayi was hailed for his 2008 efforts by the general 
public, members of the contentious opposition complained that 
President Yayi was silent about the political turmoil the country 
was experiencing.  END COMMENT 
 
BROWN