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Viewing cable 06KINSHASA1918, DRC NOVEMBER MONTHLY ECONOMIC REVIEW

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Reference ID Created Released Classification Origin
06KINSHASA1918 2006-12-26 08:10 2011-08-25 00:00 UNCLASSIFIED Embassy Kinshasa
VZCZCXRO3562
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #1918/01 3600810
ZNR UUUUU ZZH
R 260810Z DEC 06
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 5345
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
RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 02 KINSHASA 001918 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN ELAB EMIN EPET ECON PGOV CG
SUBJECT: DRC NOVEMBER MONTHLY ECONOMIC REVIEW 
 
REF: A. KINSHASA 1688 
 
B. KINSHASA 1735 
 
------- 
Summary 
------- 
 
1. (U) 
- The GDRC increased fuel prices. 
 
- The EU announced it will double its aid to the DRC for 2008-2013. 
 
 
- Transparency International has once again ranked the DRC as one of 
the most corrupt countries in the world. 
 
- The DRC has joined the new Africa Diamond Producers Association. 
 
-  According to Post's market basket survey, November consumer 
prices increased by one percent over October; year-to-date 
cumulative inflation is 24 percent according to Post, and 19 percent 
according to the IMF. 
 
- The Congolese Franc (CF) remained stable against the USD in 
November. End summary. 
 
------ 
Energy 
------ 
 
2. (U) The GDRC raised fuel prices in November, increasing the cost 
of gasoline from 490 Congolese Francs (CF) per liter to 510 CF/liter 
(just under USD 1/liter, or almost USD 4/gallon), and diesel from 
480 up to 500 CF/liter.  The last increase occurred in July. 
 
----------------------- 
Finance/Development Aid 
----------------------- 
 
3. (U) The European Union announced it will double its DRC 
development aid package to USD 544M for 2008-2013, plus an 
additional 25 percent if the DRC implements certain good governance 
reforms. 
 
4. (U) BCECO, the GDRC's primary World Bank project contracting 
agency/implementer, has accused a Canadian NGO of defrauding it of 
nearly USD 100,000 (Note: BCECO itself has been accused of 
mismanagement in its disbursement of World Bank funds.  End note). 
 
---------- 
Governance 
---------- 
 
5. (U) Transparency International has again ranked the DRC among the 
most corrupt countries in the world in its 2006 Corruption 
Perceptions Index.  The DRC sank to 156th of 163 countries, down 
from its 2005 ranking of 144 of 158 countries. 
 
----- 
Labor 
----- 
 
6. (U) SNCC (the DRC railway parastatal) employees, on strike since 
July for payment of almost two years worth of salary arrears, 
returned to work despite a failure to resolve their demands. Goods 
began moving from Ilebo, on the Kasai River upstream from Kinshasa, 
southwards toward Kananga, Western Kasai province.  Both Western and 
Eastern Kasai provinces have suffered shortages of goods and high 
commodity prices as a result of the SNCC strike. 
 
------ 
Mining 
------ 
 
7. (U) GDRC officials attended the formal launch of the African 
Diamond Producers Association in Luanda, Angola. The new group 
consists of twelve member-countries, including the DRC, and seven 
observer countries (reftel A). 
 
8. (U) Violence nearly erupted in Kolwezi, Katanga province after 
the Gecamines (DRC copper/cobalt mining parastatal) security force 
impounded three trucks suspected of illegally removing copper/cobalt 
ore from one of its concessions (reftel B).  This was evidently part 
of a recent Gecamines attempt to reduce theft and illegal export of 
unconcentrated ores in Katanga. Various security forces fired shots, 
but no injuries resulted. 
 
KINSHASA 00001918  002 OF 002 
 
 
 
9. (U) Over 50 artisanal diamond miners near the town of Tshikapa, 
Western Kasai province, were reported missing after flooding from a 
November 24 storm swept them from a river islet where they had been 
digging for alluvial diamonds. 
 
----- 
Trade 
----- 
 
10. (U) Representatives of the GDRC and of the Congolese Chamber of 
Commerce (FEC) attended the Beijing Summit of the Forum on 
China-Africa Cooperation. 
 
----------------------- 
Consumer Inflation Rate 
----------------------- 
 
11. (U) Post's market-basket survey indicates a one percent November 
consumer inflation rate and a year-to-date cumulative inflation of 
24 percent.  The IMF calculates year-to-date inflation at 19 percent 
through November. 
 
------------- 
Exchange Rate 
------------- 
 
12. (U) The Congolese Franc (CF) was stable against the USD in 
November, at 532 CF/USD on November 1 and 535 CF/USD on November 30, 
according to the Congolese Central Bank's official exchange rate. 
 
Week ending  11/10 11/17 11/24  11/30 
 
Central Bank Rates: 530  532  534  534 
Parallel Rates 
Kinshasa   530  535  540  540 
Lubumbashi  525  530  530  530 
Mbuji-Mayi  530  530  525  530 
Bukavu/Goma  535  535  530  535 
Kisangani   530  535  530  530 
Matadi/Boma  530  530  535  535 
DOUGHERTY