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Viewing cable 06KINSHASA1398, DRC AUGUST MONTHLY ECONOMIC REVIEW

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Reference ID Created Released Classification Origin
06KINSHASA1398 2006-09-06 16:12 2011-08-25 00:00 UNCLASSIFIED Embassy Kinshasa
VZCZCXYZ0043
RR RUEHWEB

DE RUEHKI #1398/01 2491612
ZNR UUUUU ZZH
R 061612Z SEP 06
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 4735
INFO RUEHXR/RWANDA COLLECTIVE
RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEAIIA/CIA WASHDC
UNCLAS KINSHASA 001398 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR DRL/IL-LHOST AND AF/RSA-MHARPOLE 
PASS TO OPIC (JEDWARDS) 
DAKAR PASS TO FAA (EXJONES) 
 
E.O. 12958: N/A 
TAGS: ENRG ELAB EAIR EMIN ECON ETRD PGOV CG
SUBJECT: DRC AUGUST MONTHLY ECONOMIC REVIEW 
 
REF: KINSHASA 1313 
KINSHASA 1239 
KINSHASA 1309 
KINSHASA 1373 
 
Summary 
------- 
 
1. (U) Summary. 
 
- The DRC's teachers' unions are calling for a nationwide strike in 
public schools to demand increased salaries. 
 
- Employees of SNCC (the DRC's railway authority) and OCPT (the 
telecommunications parastatal) are on strike, as are medical 
professionals in some cities. 
 
- The GDRC's Commercial Court has opened in Kinshasa. 
 
- Mining companies in the DRC continue to confront illegal artisanal 
miners. 
 
- Gecamines (a DRC mining parastatal) continues to produce and 
export copper and cobalt at levels below 2006 projections. 
 
-  According to Post's market basket survey, August consumer prices 
increased by 1.1 percent. End summary. 
 
Aviation 
---------- 
 
2. (U) On August 3, an Antonov 28, operated by a Congolese airline, 
crashed near Bukavu, South Kivu province, killing two Russians and 
13 Congolese.  No American citizens were on board. 
 
3. (U) Lignes Aeriennes Congolaises (LAC, the DRC's aviation 
parastatal) inaugurated domestic service August 10 after a 13-year 
break in service. LAC is using a leased Boeing 737-200, with eight 
business class seats and 101 economy class seats. It is offering 
flights to Kindu, Kisangani, Goma, Mbandaka, Isiro, Mbuji-Mayi, 
Kananga and Lubumbashi. 
 
Commercial Activity 
------------------- 
 
4. (U) The DRC's Commercial Court opened in August and has begun 
hearing cases. The GDRC also plans to open Commercial Courts in 
Lubumbashi, Kisangani and Mbuji-Mayi. 
 
5. (U) After a ten-year hiatus, ONATRA (the DRC's port authority) 
relaunched cargo and passenger service for the 1500 mile Congo River 
journey between Kinshasa and Kisangani, Orientale province (reftel 
A). 
 
Energy 
------ 
 
6. (U) A DRC interministerial commission increased petroleum prices 
in August, with vehicle fuel costs increasing by 6.5 percent (reftel 
B). 
 
7. (U) GDRC officials have denied the London Sunday Times August 6 
report that Uranium 238 has been smuggled out of the DRC bound for 
Iran via Tanzania. Further, Post has no information to support the 
allegations (reftel C). 
 
Infrastructure 
-------------- 
 
8. (U) Belgium has donated several million Euros to rehabilitate 
both the Kinshasa General Hospital and National Route 1 (NR1) 
between Kinshasa and Bandundu. NR1 is also the link to the port 
cities of Matadi and Boma in Bas Congo province. 
 
Labor 
----- 
 
9. (U) Although primary and secondary schools officially began their 
academic year on September 4, public school teachers in Kinshasa, 
Mbuji-Mayi, Kananga, Mbandaka, Kasangani and Bunia are on strike. 
Some teachers in Bandundu and Matadi are also striking. The main 
teachers' unions threaten a complete nationwide strike if public 
school teachers do not receive a pay increase. 
 
10. (U) The SNCC (DRC's railway parastatal) strike that began in 
July continues (reftel D). However, during July and August, SNCC 
employees did unload some of the goods that were already in transit 
from Lubumbashi when the strike began. 
 
11. (U) The employees' union of REGIDESO (the DRC's water authority) 
is demanding that REGIDESO pay current employees their salaries and 
pay former employees their severance packages. Current employees 
have been unpaid since July.  According to contacts, REGIDESO claims 
it cannot pay these amounts because it must first pay several 
million USD in severance packages to its former management committee 
as the result of litigation. 
 
12.(U) Employees of OCPT (the DRC's telecommunications parastatal) 
have been on strike since August to protest the Ministry of 
Finance's decision to readjust the allocation of revenue that the 
DRC's telephone country code generates.  OCPT's revenue share will 
drop from 75 percent to 35 percent, and the share going to ARPT 
(DRC's telecommunications regulatory agency, will increase from 25 
percent to 65 percent. 
 
13. (U) Scattered medical-professional strikes continue in the DRC, 
including a nurses' strike in Buta, Orientale province, and a 
doctors' and nurses' strike in Kananga, Western Kasai. 
 
 
Mining 
------ 
 
11. (U) Confrontations continue in the DRC between mining companies 
and artisanal diggers in the course of efforts to remove the 
artisanals or limit their access.  In early August armed guards 
killed six illegal miners on the concession of MIBA (the DRC's 
diamond mining parastatal).  On August 30, Anvil Mining's security 
manager reported a confrontation with artisanal diggers on Anvil's 
concession in Kolwezi, Katanga province, although no injuries 
resulted. 
 
12. (U) Gecamines (a DRC mining parastatal) reported June production 
of 3,006 tons of copper and 56 tons of cobalt, and July production 
of 1,938 tons of copper and 93 tons of cobalt. No zinc production 
was reported.  Gecamines reported June exports of 2,260 tons of 
copper, 109 tons of cobalt and 739 tons of zinc, and in June it 
exported 1,750 tons of copper, 86 tons of cobalt and 758 of zinc. 
Both copper and cobalt production and export figures are well below 
Gecamines' own projections to date. August figures are not yet 
available. 
 
Consumer Inflation Rate 
----------------------- 
 
13. (U) Post's market-basket survey indicates an inflation rate of 
1.1 percent in August. 
 
Exchange Rates 
-------------- 
 
14. (U) 
Week ending    8/4  8/11 8/18 8/25 8/31 
 
Central Bank Rates:  463 466 467 468 470 
Parallel Rates 
Kinshasa    460 470 470 475 475 
Lubumbashi   450 455 460 475 465 
Mbuji-Mayi   455 465 470 475 485 
Kisangani    450 450 460 465 475 
Goma       460 460 475 480 490 
Bukavu    460 480 475 490 500 
 
MEECE