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Viewing cable 07KINSHASA406, ECONOMIC IMPACT OF MARCH FIGHTING IN KINSHASA

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Reference ID Created Released Classification Origin
07KINSHASA406 2007-04-05 16:35 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kinshasa
VZCZCXRO6333
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #0406 0951635
ZNR UUUUU ZZH
R 051635Z APR 07
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 5925
INFO RUEHXR/RWANDA COLLECTIVE
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY
RUEAIIA/CIA WASHDC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS KINSHASA 000406 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV PGOV ASEC CG
SUBJECT: ECONOMIC IMPACT OF MARCH FIGHTING IN KINSHASA 
 
REF: KINSHASA 375 AND PREVIOUS 
 
1. (U) Summary. The March 22-23 violence in Kinshasa likely 
cost business owners and the GDRC millions of dollars, but 
the precise totals have not been tallied.  Most of the 
damage, like most of the fighting, occurred in Kinshasa's 
central Gombe district, the home to many government buildings 
and businesses.  End summary. 
 
2. (U) Small arms fire, rocket-propelled grenades, mortar 
explosions and looting damaged many buildings in Kinshasa's 
downtown Gombe district March 22-23.  A handful appear to 
need major repairs, including a several-story building on the 
main boulevard (30 Juin) that houses a partially 
American-owned bank (BIAC) and the Spanish and Greek 
embassies.  One of six storage tanks at SEP-Congo (DRC's 
petroleum import and distribution facility), holding several 
hundred thousand liters of fuel, caught fire after a mortar 
pierced it, sending flames into the air and a plume of smoke 
visible from miles away. Other buildings damaged as a result 
of looting or fighting include the GDRC's Central Bank, in 
which the IMF is located, several airline offices, REGIDESO 
(the DRC's water authority), and private residences. 
 
3. (SBU) Significant losses resulted from scattered looting 
that occurred during and just after the fighting.  One 
expatriate business owner told EconCouns he watched from his 
apartment as soldiers broke into his furniture store and 
stole an estimated USD 300,000 in inventory.  He later 
discovered some of the stolen furniture in the apartment of a 
neighbor, an officer in the Congolese army. A local newspaper 
reported that looters took more than USD 600,000 in items 
from a luxury-goods boutique near the Embassy.  Some public 
buildings also suffered from looting, including a municipal 
office that was emptied of documents and all other property. 
 
4. (SBU) The violence interrupted business activities for 
several days. Businesses in the consumer goods sector, such 
as gas stations and grocery stores, had returned to normal 
operations in Gombe by March 26, but it is too early to gauge 
the impact on sectors such as banking and manufacturing.  The 
effect on foreign direct investment is unclear and still 
anecdotal. A Dutch diplomat told EconOff that three trade and 
investment delegations from the Netherlands canceled their 
visits to the DRC as a result of the violence, while the 
Canadian Pol/Econ Counselor said the events did not appear to 
have discouraged mining project development and investment. 
 
5. (U) Representatives of the Congolese Chamber of Commerce 
(FEC) met with the GDRC met on March 28 to discuss the 
economic losses businesses incurred.  The GDRC declined to 
compensate business operators for their economic losses 
during the fighting but is considering the FEC's request to 
extend the 2006 tax return filing deadline by one month to 
allow businesses time to tend to more pressing concerns the 
violence caused. 
 
COMMENT 
------- 
 
6. (U) The two days of fighting in Kinshasa and the looting 
that accompanied it are likely to contribute to the 
uneasiness of current and prospective investors.  Despite 
optimism following the successful elections and the recent 
installation of the new government, the latest round of 
violence has probably given pause to many contemplating doing 
business in the DRC. End comment. 
MEECE