JPRS ID: 9156 SUB-SAHARAN AFRICA REPORT

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000200090042-4
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• Content Type: REPORTS

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JPRS L/9156
19 June 1980
Sub-Saharan Africa Re ort
p
FOUO No. 679
FBIS FOREIGN BROADCAST INFORMATION SERVICE
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~RS z/9~s6
19 June 1980
SUB-SAIIARAN AFRICA REPORT
FOUO No. 679
� CONTENTS
INTER-AFRICAN AFFAIRS
Lagos Economic Summit Meeting Reviewed
(JEUNE AFRIQUE, 14 May 80) 1
Six Measures for Saving Africa, by Siradiou Diallo
T~ao Years of Effort
Difficultiea of 'DEMAIN L'AFRIQUE'.Discussed
(Jacques ~Tigne~s; JEUNE AFRIQUE, 14 May 80) g
Summary of UNDP Report for Nairnbi Technical Cooperation
Conference
(MARCHES T1tOPICAUX ET MEDITERRANEENS, 16 May 80) 14
BURUNDI
Annuai Variation of Coffee Production Affecta Money Situation
(MARC~dES TROPIGAUX ET MEDITERRANEENS, 9 May 80) 23
Development of Nickel Production
(MARCHES TROPICAUX ET MEDITERRANEENS, 25 Apr 80) 25
Briefs
, Bujumbura Credit Bank 26 -
CAMEROON
Trade With Belgium-Luxembourg Economic Union
(MARCHES TROPICAUX ET MEDITERItANEENS, 9 May 80) 27
No Real Progrese Noted in Industrial Sector
(MARCHES TROPICAUX ET MEDITERRANEENS, 9 May 80) 28
Briefs -
LNG Plant 30
Dutch Aid for Roads 30
Belgian Aid, Loan 30
~ - a - [III - NE & A - 120 FOUO]
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COMORO ISLANDS
Briefs
Maritime Service 31
EQUATORIAL GUINEA
'Controlled Liberalism' Seen as Essential for Development
(Jacques Latremoliere; MARCHES TROPICAUX ET
MEDITERRANEENS, 21 Mar 80) 32 -
GUINEA-BISSAU
Cabral on Lusophone Ties, Sahara, West African Bloc '
(Luis Cabral Interview; AFRIQUE-ASIE, 26 May-
8 Jun 80) 43
MADAGASCAR
Briefs
Relationa With PRC Cooler 47
RWANDA
Briefs
EEC Aid 48
Kigali Bank 48
ZAIRE
Agreement ~n Refinancing of Bank Debt Signed
(MARCHES TROPICAUX ET MEDITERRANEENS, 2 May 80) 49
Briefs
� FRG Medical Gift 50
FRG Public Transportation Aid 50
Canadian Paper Pulp Plant 50
Coffee Transport 50
Cooperations With French Company 51
- b -
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INTER-P.FRICAN AFFAIRS
LAGOS ECONOMIC SUMMIT MEETING REVIEWED
Six Measures for Saving Africa
Paris JEUNE AFRIQUE in French 14 May 80 pp 23-26
[Article by Siradiou Diallo]
[Text] ~aenty years after the first African countries became independent,
is each of the OAU's 50 member states going to continue singing its own re-
frain on the subject of development ur are they going to make up their minds
to seriously follow the same tune? That obsessing question was supposed to
be answered by the first eoonomic summit meeting, which was held in Lagos,
Nigeria on 28 and 29 April.
This is certainly not the first time that African leaders have cast an an-
guished eye on the continent's economic realities. Back in May 1973 in
Abidjan, Ivory Coast, an OAU ministerial o~uncil had reached a disturbing
diagnosis--and recommended solutions that would have led to a regrouping of
the states. I~ore recently, a conference sponsored in Nbnrovia, Liberia by
~ the pan-AfriCan organization drew the attention of our leaders to the dangers
threatening Africa--and reco~nended measures ai.med at "national and collec-
tive self-sufficiency in economic and social development."
But this time Edem Kodjo, the OAU's Togolese secretary general, wasted no
words in telling the Africans the truth, no matter how bitter. Misery, hor-
ror, despair, catastrophe and disaster were some of the words with which he
peppered the 30-page introductory report he presented to ths council of min-
isters before the Lagos s~munit meeting. The secretary general exclaimed;
"Africa is in danger of death. Its survival is in question--yes, Africa is
dying." In his opinion, the policies pursued by our states over the past
20 years are leading straight to "modern slavery and to the physiological
deficiencies which degrade the African and reduce his capacity for action."
But Kodjo did not fail to point out that the continent has enormous poten~tial.
The fact is that Africa cavers 30 million square kilometers (28 percent of
the world's landmass), and its 400 million inhabitants are sitting on fabulous
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natural resources representing 97 percent of the world's chrome reserves,
85 percent of its platinum, 64 percent of its gold, 50 percent of its manga-
nese, 25 percent of its uranium, and 13 percent of its copper. Not to men-
tion diamonds, bauxite, nickel, and lead--all ores in which the continent is
way ahead as far as world reserves are concerned. Africa also has 20 percent
of the world's hydroelectric potential and 20 percent of all the petroleum
markete3 ~n the world. In the agricultural area, it accounts for 70 percent
of the world's cocoa production, one-third of its coffee, and 50 percent of
its palmetto.
Unfortunately, so much wealth in the soil or under it does not prevent Africa
from experiencing a slow and continual deterioration of its eoonomy. It
makes one think of the man starving to death while sitting on piles of gold
and diamonds whose value--and above all whose utility--are unknown to him.
The fact remains that despite those enarmous potentialities, the continent's
economic picture currently looks extremely somber.
The gross national product of the OAU's 5G member states represents only 2.7
percent of the worldwide figure! Putting it another way, all those countries
combined produce barely as much as the three Benelux countries; Belgium, the
Netherlands, and Luxembourg. In 1977, 13 African countries had a per capita
inoome of less than $200, 23 had between $200 and $500, 12 had between $500
and $2,000, 2 had between $2,000 and $5,000, and only one enjoyed a per capi-
ta income of more than $5,000. In 20 years--from 1960 to 1980--the rate of
eronomic growth has averaged only 4.8 percent. And even that figure includes
the results achieved by the petroletan-producing countries . If they are ex-
cluded, the figure drops to 2.9 percent, or barely equal to the rate of popu-
lation growth. .
In that overall picture, food production is evolving in an even more disturb-
ing manner. In the 1950's--that is, before the countries became independent--
the yields from Africa's main crops showed the following percentages in terms
of worldwide ave.rages: wheat: 72 percent; rice: 60 percent; millet: 1Q5 per-
~ cent; c~rn: 55 percent; and peanuts: 82 percent. But 20 years later, those
figures have all fallen and now show the following percentages: wheat: 45
_ percent; rice: 55 percent; millet: 95 percent; corn: 44 percent; and peanuts:
71 percent. What this means is that production methods are deteriorating
- s~eadily in Africa while improving in the rest of the world. That is not
surprising when one considers that, among other things, Africa's total number
of tractors represents barely 2 percent of the worldwide total and that the
policies yoverning producer prices are everywhere one of the main hindrances
to the fostering of agriculture.
One can therefore understand why A�rica is doomed to import more and more in
order to feed itself--that is, to sell more and more cocoa, coffee, cotton,
and peanuts to px~ocure the foodstuffs it needs. In 1970, 15 percent of the
gross domestic product was used to import foodstuffs. And the v~olume of
those imgorts is risi~ng steadily: from an index of 100 in the 1950's to 135 -
in the 1970's. To feed itself, Africa bo~;ght 5.3 million tons of cereals
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in 1960, but in 1970 it bought 7.3 million (an increase of 2 million tons).
::odjo said, "If I lay so much stress on �he food situation, it is because
unless something is done, there is no salvation for us, our states, or our
people." And it is undeniable that without self-sufficiency in food, there
is not and cannot be political inde~endence.
Overpowering Picture
Unfortunately, the shortcomings are n.ot limited solely to the food sectc~r.
They also exist, sometimes even more disquietingly, in other areas. Accord-
ing to the OAU secretary general, the health pioture is "terrifying": at 19
percent, the death rate is the highest in the world. Of every 10 infants
born in Africa, two die before completing their first year and only six live
to the age of 5 years. Africa has the sorry record of offering the shortest
life expectancy in the world; 47 years, compared to a worldwide average of
55.
The picture is hardly any more brilliant in the field of energy. With a
total production in 1976 of 130 billion kilowatt-hours, Africa accounted for
barely 2 percent of the world's electricity production. The installed capac-
ity of all its hydroelectric plants represents only 5.6 percent of the con-
tinent's known potential. And this despite the huge energy reserves repre-
sented, for example, by the fabulous sites of Inga in Zaire, Cabora Bassa in
Mozambique, and ICc>nkoure in Guinea. Not to mention solar energy, which is
so abundant in that veritable gold belt where most African countries are lo-
cated! While we devastate our forests at an accelerated pace and import
larger and larger quantities of hydrocarbons from abroad, we have to note--
supreme paradox--that our petroleum consumption represents only one-fifth of
our production!
The situation is equally far from brilliant as far as industrialization is
concerned. Manufactured products accounted for 10 percent of the GDP in
1960, but in 1970 they amounted to only 11.5 percent, for an increase of only
1.5 percent in 10 years! Between 1971 and 1976, the rate of employment in
industry totaled 5.8 percent in North Africa, 5.6 percent in West Africa,
_ and 2.7 percent in East Africa.
As far as Africa's weight in world industrial producti,on is concerned, it is
quite simply insignificant: 0.9 percentl Lastly, need we be reminded that
. the merchant fleet of Africa proper (South Africa and Li.beria excluded) rep-
resents only 0.4 percent of th~e world fleet, even though Africa is involved ~
in 13 percent of the maritime ~'trade?
Anyone who tak~s other than a complacent look at the miserable situation in
education--miserable despite its considerable-share of the budget in m~st
of our countries--wi7.1 unde:rstand the tragedy being pla,yed out before our
eyes. Because of the educ~~tional system adopted, is not Africa. the only
continent being made to lo:se its own values through education?
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In such conditions, it is understandable that the OAU secretary general
should depart from his usual reserve and send out a real cry of alarm. The
economic picture presented by Africa after 20 years of independence is so
"somber" and so "overpowering" that it is essential for every African to be
aware of it. The fact that the OAU secretary general had the oourage not
only to acknowledye this but also to proclaim it from the pan-African forum
is a sign of the times. Perhaps the assertion of those truths, which vis-
ibly moved and shook the chiefs of state and ministers present in Lagos,
will make it possible to approach the future with more "seriousness," as
Tanzanian President Julius Nyerere was to demand.
Alarming Forecasts
At the rate things are going, in any case, Africa's future is in danger, as
the French agronomist Rene Dumont prophesied some 15 years ago, of not being
a"festive future"--quite the contrary. According to the experts, our popu-
lation is going to double bet;aeen now ~nd the year 2000, when it will total
813 million, and by 2075 it will be 2.5 billion. The generation between the
ages of 5 and 15 will grow from 105 million in 1975 to 216 million in 2000.
In the same period, the GDP will rise by only 4.3 percent annually (less
than the percentage recarded in the 1960's), while the average annual growth
rate will rise from today's 2.55 percent to... 2.9 percent. The agricultural
forecasts in particular are alarming. At the start of the 1970's, Africa
supplied 90 percent of its own food needs, but the percentage will be no
more than from 60 to 68 percent in the year 2000. ~
Disastrous Extraversion
What are the causes of this drifting? In the opinion of Edem Kodjo and the
African experts he consulted before the Lagos summit meeting, the source of
the tum~or is definitely localized. It is called extraversion. What that
means in plain language is excessive dependence on foreign oountries. As is
well known, the characteristic feature of African economies is that in all
sectors they are excessively oriented to the outside world. Kr~djo said, "It
is to the outside that we look, and it is from the outside that we expect
our basic concepts to come." And he explained that as an example, we naively
believed in the classic models of economic growth, basing our hopes on the
growth and development of the "center" as a means of "seeding" and creating
the development of the "periphery." He added that we also vaguely accepted
the model authored by Walt Rpstow (a well-known American economist) concern-
ing the stages of growth and believed that the process of development adopted
by the Western World could blandly be applied to Africa.
But experier~ce has shown that those theories, brilliant as they are (although
even the Western Wor2d is turninq away from them), do not provide a prescrip-
tion likely to cure the African illness. They take into acoount neither the
structures proper to our societies nor the interest of the majority. In
most cases, those models tend only to trap the African economies in the nets
of the WESt's economy. And tnat with no regard for the oonsequences, one of
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the most scriking of which is the continual deterioration of the terms of
trade. Essentially, our economic action "consists, when all is said and
done, of w~orking ourselves to death to earn foreign exchange, which we then
hurry to spend abroa,d to acquire manufactured goods, especially foodstuff s."
7.'hat tendency by the Africans to give precedence to foreign countries and to
ogle foreign oountries rather than sweeping their own doorstep is evident in
many other areas as well. It is well known that in transportation and commu-
nications, air and telephone links are infinitely more oonvenient between
each of our oountries and the former colonial powers than between two neigh-
boring African countries. This is also true in the case of currency, whPre
the diversity of monetary zozies prevents the development of inter-African
trade, while each nation has formed solid ties with countries abroad.
Used Everywhere ,
Is not the policy of extraversion also the source of the F~opensity of Afri-
can leaders to expect too much from i.zternational negotiations? It is a
fact, in any case, that with its eyes forever riveted abroad, Af rica has ~
entered into all kinds of international agreements, organizations, pacts,
treaties, and understandings.
Despite the numerical weight of ~heir 50 states (one-third of the UN member-
- ship), the AFricans have been unable to take advantage of their negotiating
power.
Whether in the United Natior.s or UNCTAD, in the North-South negotiations, or
even in tne Group of 77 (which in fact numbers almost 100, of which half are -
African), we ar2 used everywhere simply as pawns and toys in the hands of the
superpowers an3 sometimes--this is especially distressing--of inedium-sized
or even secondary powers! The result is that in 20 years of independence we
have nat managcd tr obtain anything of real consequence from most of the de-
mands fo nm.zlated so noisily by the African group. Concerning the organiza-
tion of basic markets, for example, we have obtained agreements covering only
six or seven products. The meager results of the UNCTAD V Meeting in Manila,
' or the frustrations in which the Third General UNIDO [United Nations Indus-
trial Development Organization] Conference, recently held in New Delhi, ended,
a-re. weil known. -
?ahat Next?
The latest Lome Convention, known as Lome I2, itself ended in colorless fash-
ion owing to the low level of financial aid provided within the framework c~f
STABEX [expansion unknown] and the low voltune of credits allocated for fi-
nancing the stabilization system for ores (SYSMIN [expansion unknown]). As
~ for our demands concernir,g a reform of the international monetary system,
it seems that they have since been buried under words.
'i'he picture is somber, and the OAU secretary general said so. He did not
avoid the fact. But neither did he simply note the situation and criticize
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it. He made specif.ic proposals in Lagos. After noting that within the in-
stitutional limits inherited from the colonial system, no Afr ican country
_ currently has a market large enough to insure its own rapid and harmonious
economic development, Edem IGodjo recomnended the establishment on a continent-
wide basis of a"real comtmn market--organized, planned, and perfectly inte-
grated." He said that his six-point proposal, the only valid response to
the challenge facing Africa, must see the light of day befo re the year 2000.
It is based on the growth of inter-African trade, self-suff ic iency in food,
interconnection of the means of contmunication and of telecommunications, and
the effort for industrialization, as well as exploitation of Africa's energy
potential.
But while taking their inspiration from Kwame Nkrumah, the 1 ate Ghanaian
leader, Edem iCpdjo and the African experts surrounding him show themselves
to be more realistic. Instead of de.manding immediate realiz ation of the Af-
rican co~n market they want, they are calling for intermediate stages.
- They are pmposing that ~our major regions be set up over the next 10 years:
West, East, Center, and North. Each region will have about 100 million in-
, habitants, the optimum they consider necessary for each one's full industri-
alization. Not until the year 2000 will the four regions become integrated
to form the single and perfectly integrated market destined to save Africa.
Before that happens, an action plan will be adopted with well-defined priori-
ties. These wi11 be aimed at self-sufficiency in food thanks to the develop-
ment of river and lake basins, the development of aa integr ated transportation
system (roads, railroads, and air and maritime traffic), the modernization of
telecommunications within Africa, and the development of industry and energy.
Ttie OAU secretary general went so far as to recomanend the immediate establish-
in~nt of an African common market in the field of energy. On that point he
�ound no support. And neither was he supported on the question of setting
_ up genuine permanent institutions with a view to economic integration.
The Long Term
6~hile supporting the principle of unity and the OAU secreta.ry general's ap-
~~roach, the chiefs of state do not seem willing to go all the way with his
statements. Even less do they seem prepared to adopt the recommended means
_ of implementation. Pernaps because they are not willing to f ace the budget-
ary consequences--that is, to fi.nance the operations that must come about as
a result. Unless they have not all understood the importance of what is at
~take. But the ~a~3os ~tatement, owing to the realism of its approach and
the noble phil~sophy underlying it, not to mention the objectives it assigns
to the Afri~an~, ~s of capital i.mportance. Like any project which will not
bear fruit except over the long term, this one will only be as good as those
in charge of sustaining it, heading it up, and putting it into effect. It
is true that few African leaders are seriously interested in the long term.
?'e�rhaps because in the long term we will all be dead. ~
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'_~ao Years of Effort
Paris JEUNE AFRIQUE in French 14 May SO p 25
[Article by S.A~]
[TextJ "I accuse you journal ists of being interested only in the spectacular
and in politics. Instead of attacking me on the subject of the Sahara or
Chad, ask me questions about the African economyl Ask yourselves where we
are goingl" One year after his election as secretary general of the OAU,
_ Edem ICc~djo directed that vehement protest at us (see JEUNE AFRIQUE No 966) .
At the time, Kr~djo still seemed to be crying in the wilderness. Few Africans
(including some among the leaders) understood that new language, which was
centered so resolutely on the economy and which seemingly relegated the OAU's
political problems to the background. But on the very day of his election
(on 22 July 1978, during the 15th summit meeting in Khartoum), Edem Kpdjo
had warned us (see JEUNE AFRIQUE No 919-520) :"We are winding up decoloniza-
tion: Namibia and Zimbabwe will be independent within 2 years. Only the
South African bastion will then remain. And that bastion is an economic -
power that we cannot c:~ombat effsctively unless we build economic power for
ourselves."
For a fu:Ll 2 years, the OAU secretary general was to visit the African capi-
tals with that "gospel." It was necessary in order to convince the chiefs
of state, who were divided among theses that were socialist only in their
verbosity and other theses that were liberal only because they had raised
laxity to the state of an economic system. At worst, the African leaders
resisted anything smacking of economics, while at best they had their own
theories as to what the African economy should be.
Leopold Sedar Senghor of Senegal envisioned Africa as being organized into
regional "concentric ciscles" that would graduaily merge into continental
solidarity. Felix Houphouet-Boigny of Ivory Coast and Omar Bongo of Gabon
stucic with the traditio nal Africa as an exporter of raw materials for indus-
try. For his part, Edem Kodjo was proposing an immediate African common
market: let P.frica trade with Africa. Let those who have meat and millet
sell them to those who have cement or petroleum. Paradoxically, the man who
was said to have been the candidate supported by the "moderate" French-
speaking states found his best support among the English speakers and the
"rrogressives." Sensi ~ive to his talk about self-sufficiency in food, Tan-
- zaz:~an ~zuliu~ Nyerere and Mozambican Samora Machel supported him among their
peer~.
BiiL it was also necessary to identify all the projects that would serve as
~he foundation for that economic Africa. This meant that experts were neces-
sary, with as many Africans among them as could be found. Edem Kc~d~o set
out to find them in--and even lur~ than away from--African universities and
government administrations. Economists from Morocco or Benin, engineers
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from Madagascar or Senegal, Cameroonian mathematici.ans or Malian financiers,
and Algerian or Nigerian petroleum experts in fact set up a sort of lobby on
the continental scale. In February 1979, during the symposium of experts
_ held in Irbnrovia, Africa discovered for the first time in the OAU's history
that it had "experts."
One year later, the action plan drawn up by ICpdjo's team has received endorse-
ment from the special summit meeti.ng in Lagos. The first step has been ac-
complished: a number of African chiefs of state have realized that the sur-
vival of Africa--and of the Afr ican states--is at stake. The o thers undEr-
stand (at least secretly) that f rom now on their continuation in power de-
pends on the economic viability of their countries.
COPYRIGHT: Jeune Afrique GRUPJIA 1980
11798
CSO: 4400
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INTER-AFRICAN AFFAIRS
_ UIFFICULTIF.S OF 'DEMP,IN L'AFRIQUE' DISCUSSED
Paris JEUNE AFRIQUE in French 14 May 80 pp 54-5 6
[Article by Jacques ViSn+~s]
[Text] Last 2 April in Paris, the personnel at the magazine DEMAIN L'AFRIQUE
decided to go on strike for 48 hours, with the possibility of staying out
- longer, as a pro test against the nonpayment of March wages. The news was
reported on the 3rd by the Ivorian newspaper FRAT~RNITE-MATIN, which added,
"Serious doubts exist as to the periodical's future because of its serious
finan^ial problems, which the present management does not seem capable of ~
so?.ving." In Paris on the 4th, LE MONDE also publisY~ed the report, as did -
L~BERAS'ION, while the magazine's personnel decided tc~ stay out on strike.
Loans or Gifts?
On the Sth, the warning sign,a grew clearer. According to an AFP dispatch
_ dated that same day, the decision to halt or continue publication would be
- made public on 19 April. But things went wrong as early as the 9th. A
press releasa announced that PE~A (Pan-African Publishing, Press, and Audio-
visual Comgany), th~ c~mpany that publishes DEMAIN L'AFRIQUE, was filing for
bankruptcy. Its action was said to have been made inevitable "by misappro- _
priations in the management of funds." A suit charging "swindling, embezzle-
men~, and fraudu~ent misuse of funds and company assets" was also filed
against "Paul Bernetel and his accomplices." Paul Bernetel is the magazine's
general manager. He is still listed as such in th e latest issue--No 50,
dated 7 April. The press release was signed by Mory Diakite, chairman and
managing directc~r of SOCEP [Publishing and Press Company] .
At this point an explanation is i.n order. SOCEP is a company operating under
Senegalese law with headquarters in Dakar. It owns almost all ~he shares in
PEPA, Incorporated, a oompany operating under French law with headquarters ~
in Paris. SOCEP alays the role of a financing company with respect to PEPA. -
_ It is SOCEP wh~ich has provided the magazine with funds since the latter's
establishment. Its directArs, in addition to Bernetel and Kabue Buana as
representatives of DEMAIN L'AFRIQUE, are influential Gabonesp, Ivo~ians,
and Zaireans.
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Let us say hers for the record that no one knows where the money comes from
(and as we will see, it adds up to a lot of money). Who makes it available
to the financing wmpany so that the latter, in turn, can pass it on to thP
publishing ~ompany? Is it a matter of gifts? Of loans? With or without in-
terest? Are the donors {or lenders) governments or oompanies? Which ones?
Unfortunately, that aspect--a very itnportan~ one for the magazine's independ-
ence and credibility--has always been shrouded in mystery. And this has un-
doubtedly contributed more than a little to the tendency by the oompany's
managers to squander money which, from all appearances, weuld not have to be
repaid. And in any case, the money is gone now.
Board of Directors
As will be seen below, we know how much the DEMAIN L'AFRIQUE misadventure
will have cost to date (nearly 1 billion CFA francs, or 20 million French
f rancs) when the suppliers and emplayees have been paid off, but we do not
yet know and may never know whom it cost.
But let us get back to the events that took place in April.
_ On 10 April, FRATERNITE-MATIN printed in substance the press release signed
by Diakite. But on the llth, that newspaper published a clarification by
_ Bernetel, in which we read: "That action (Fditor's note: the lawsuit) could
only have originated in a personal desire to harm me. In any case, it did
not originate with SOCEP's board of directors, of which I am a member, since
the board never had the matter before it and therefore did not mandate any-
thing. A board meeting in the near future should make it possible to deter-
mine who is responsible for the action in question. For that purpose, I have
requested that a special meeting be called as soon as possible."
Un animity? -
FRI~TERNITE-MATIN ooncludes by saying that those two releases "prove, at the
very least, that serious internal problems exist within that periodical, and '
wP hope that its 'disappearance' is only temporary." On the llth, there was
ancther telex from the AFP concerning what is becoming "the DEMAIN L'AFRIQUE
affair." It announced the f iling of bankruptcy by PEPA and the decision by
the personnel to continue ths strike, and then went on to quote a passage
from a statement by the interunion organization, which has the merit of
clearly situating the debate.
The telex says that the filing of bankruptcy "constitutes one consequence of
a typE of management that was carried on contrary to COIC�t:;!~ri sense until the
last minute. It saorificed the future of a magazine whose objective had been
= to be cne of Afx�ica's ~?ajor voices and one of the architects of continental
unity." Or. tre 18~h, Saleh Kebzabo, editorial manager of DFMAIN L'AFRIQUE
(since Issue No 46, dated 11 February 1980), published an open le~ter in
which he s~a.ted in particulars "Since its establishment, DEMAIN L'AFRIQUE
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has been poorly managed through incompetence or carelessness or both. What
is worse, the funds intended for the magazine have been squandered for per-
sonal ends."
Lastly, on the 23rd, a manifesto signed by about 30 of the magazine's con-
tributors protested the attempts to make the financial crisis look like a
- political crisis and refuted the argument that refusal by SOCEP's board of
directors to make more funds available to PEPA was a ploy aimed at eliminat- -
ing the magazine's manager (Paul Bernetel).
The signers said in their manifesto: "There is no proof of any of that. On
the contrary, the directors are completely unanimous. And it is their una-
nimity which, in reaction to Paul Bernetel's dangerous agitations, has led
them to declare themselves in fav~or of filing for bankruptcy.... That is
the only truth, in its brutal nakedness. All the rest is only unfounded
- supposition."
The manifesto had said before that: "Cash problems began t~o appear as early
as July 1979. It should be noted that as far back as 1978, general manage-
ment was requested to schedule an audit, but for various reasons, management
delayed the audit until July 1979. It was then that an analysis of manage-
ment and the audit revealed vezy serious irregularities in the use of the
funds that had been placed in full oonfidence at the general manager's dis-
posal.
Where Is the Rest of the Money?
Those are the essentials of the facts made known to that point to a limited
public. They were disturbing facts, certainly, but they remained sufficient;ly
vague to allow c~oubts to persist. In the midst of accusations of g~ots on
the one hand and accusations of embezzling on the other, there was room for
a number of questions. To clarify the matter, it was necessary to get to
the bottom of things and try to detennine the reasons why SOCEP twisted the
neck of P~PA, its subsidiary, although with the pos~ibility of reviving it
later.
Fortunately, there exists a document making it possible to see the matter
very clearly. That document is the minutes of the special meeting by SOCEP's
board of directors, dated 8 January 1980 and signed by all of the company's
directors, including Paul Bernetel and Kabue Buana, DEMAIN L'AFRIQUE's rep-
r~sentatives.
It makes instruct;v~ reading. Judge from this: in it we learn that since
September ].977, '~he da~te on which the magazine was established (in other
words, over the p,~st 28 months), PEPA has had the sum of 15,748,705 French
francs, or naarly 1.6 billio.n centimes (800 million CFA francs), placed at
its disposal. Of tY~.at total, PEPA actually received only 12,090,408.70
French francs. That leaves a difference of 3,658,290.30 French francs (183
mill~on CFA francs).
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What r~appened to the difference, which disappeared somewhere between Dakar
and Paxis? A~cording to the minutes of the board of directors meeting, 1.35
million French francs (67.5 million CFA francs) were paid to filmmaker Med
Hondo for his film "West Indies." This was allegedly done on the initiative
of the general manager (Paul Bernetel), who supposedly acted k�ithout the
- agreement of his board of directors. As far as the rest of the money is con-
cerned, Paul Bernetel is said to have signed an acknowledgement of the debt.
But the suit filed on 8 April with'the senior examining magistrate and then
with the Paris Court of Great Instance th~ough attorney Jean-~erge Lorach -
takes no notice of those subtle distinctions. The amount listed in the oom-
plaint totals 3,448,187 French francs.
The complaint says, "SOCEP examined all the checks drawn on its account and
determined that Paul Bernetel, its managing director in France, had withdrawn
the difference for his personal needs or for the benefit of enterprises in
which he had a direct or indirect interest."
That aspect of the case, which is before the courts, is not the only one ~
posing a problesn. What would have happened, for example, if DEMAIN L'AFRIQUE
had received an additional 3.5 milli.on French francs7 The magazine would
simply have enjoyed a"stay of execution." Its monthly revenues (sales plus
advertising) were averaging 800,000 French francs (44 million CFA francs).
nut expenditure~ were running at 1.25 million French francs, for a chronic
deficit on the order of 400,000 French francs (20 million CFA francs) per
month (nearly 5 million French francs or 250 million CFA f rancs per year).
This meant that new injections of capital were constantly necessary. Money
poured through it like water through a sieve.
And thc~ wors~ part is that the massive lossea could have been stopped. The ~
or~ly thitig needca was some slight degree of tight management. But a plethora ~
of personnel and laxity in the matter of expense accounts were the gangrene
that nibbled away at the system. The magazine started with 13 employees.
Two years later it ha~ 47, p3us about 20 more or less permanent freelancers.
It is true that in that period it changed from a monthly to a semi.monthly
magazine, but the one does not justify the other.
What Tc Do?
Travel expenses alone amounted to about 180,000 French francs (9 million CFA
francs) per anonth, or nearly 10 times the amount that should have been neces- .
sary. One of the magazine's contributors told us, with perhaps a tinge of
regret ir~ his voice, ~hat "DEMAIN L'AFRIQUE was the Club Mediterranee." It
is r.ot every ~ay that one can enjoy so much generosity in one's job.
Mory Diakite, SOCEP's chairman and general manager, throws up his hands:
"What could anyone do with such a mess? I had no choice except to file for
bankruptcy ana initiate a law~uit." And when asked why the financial backers
did nct react sooner to the deteriorating situation, he answered, "We had
confi~ence. We had drawn up a financing plan through the end of 1979. We
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all had numerous other preoccupations. We were scattered all over. the world.
We did not imaginb that we could be fooled."
Keep Hoping!
A mess! The wnrd has been spoken. And it sums up very well the reasons for
the uneasiness one feels on looking into this affair. Whatl A press enter-
prise that enjoyed from the start an exceptionally solid financial base--
one that was even too generous in terms of the goal in mind. That much muney
is not needed to start a monthly magazine, and no one, anywhere, has ever _
had that much. Here is a magazine successful in finding readers (its print
run amounted to about 50,000 copies, with sales of around 30,000 copies) and
enjoying considerable advertising revenues. Its editorial team has talent.
And what is the result? The deplorable fiasco we have just described.
One cannot help reacting against such a waste of funds. Especially in the
case of an African magazine which chose the praiseworthy mission of enriching
the means of~ information available to Africa and which, for that purpose,
ssed funds from the poorest continent in the w~orld. Such a calling uncrues-
tionably called for a certain amount of austerity! But look what.happened
_ instead.
But there remains a buildup of not inconsiderable resources: experience, a -
reputation, readers, subscribers, and advertisers--in short, everything that
goes to make up the "invisible" but irreplaceable capital of a press medium.
That capital can still be saved. Some people are considering it. But there
is a heavy Y:andicap to be overcome. Let us hope, however, that in the in-
terest of all the African prESS, DEMAIN L'AFRIQUE will rise from its ashes.
But without the mess!
COPYRIGHT: Jeune Afrique GRUPJIA 1980
i1798
CSO: 4400
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INTER-AFRICAN AFFAIRS
SUb1MARY OF UNDP REPORT FOR NAIROBI TECHNICAL COOPERATION CONFERENCE
Paris MARCHES ;'ROPICAUX ET MEDTTERRANEENS in French 16 May 80 pp 1136-39 `
[Article: "Science and Tecfinology Serving Development in Africa"]
[Text] The conference of African government experts on technical covperation
between African countries is being held in Nairobi from 12-20 May in the frame-
work of the L'nited Nations Development Program (UNDP) and under the aegis of
the Economic Commission for Africa (ECA) of the United Nations. T'he goal of
the conference is essentially to encourage the exchange of information between
African countries, to spread knowledge of data from useful experiments, and
to set forth the positive or negative results of development efforts in Africa
in three areas: rural development, the transformation and marketing of food-
stuffs, and science and technology in service to development.
A Rich But Underdeveloped Continent
With a total a-rea of about 30,3 million square km, Africa has between 20 and ~
25 percen~ of the world's land area. At present, only 7 percent of that area
is arable land, but half of the total area of Africa could be cultivated.
The population of Africa grew from about 270 million in 1960 to about 410 million
in 1975: its annu~l rate of increase (nearly 3 percent) is the highest in the
tiaorld. This population wi?1 probably reach 470 million in 1980 and 550 rr~illion
in 1985, but it is still not very dense and lives in widely dispersed centers.
:ts density ranges from 1 to 470 people per square km, considering the total
area, and from 25 to 1,200 people per square km, considering the arable area.
Africa possesses vast mineral resources, which :nakes it one of the richest
= areas in the world. Its land contains 96 percent of the world's diamonds,
90 percent of the chrome, about 50 percent of the cobalt, 10 percent of the
iron ore, 55 percent~ of the manganese, 40 percent of the bauxite, 20 percent
of the copper, 50 percent of the phosphates, 30 percent of the thorium and
" uranium and about 50 percent of the gold,' Tts share in world production is
about 26 percent for cobalt ore, 81 percent for gold, 74 percent for diamonds,
26 percent for phosphates, 19 percent for copper ore, and about 7 percent for
iron ore. The development of many countries in Africa will remain dependent
for a long time yet on~ mineral resources, although this development cannot
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be achieved without the general use of science and technology,
Africa also possesses abundunt energy resources, but they are still partly
undeveloped, like the minerals. At present, only.l0 countries in Africa
produce crude oil, but constant pr�ospecting for oil deposits on the continent .
may reveal the existence of oil in more countries. Africa also has many
other energy resources: coal and solar, geothermal, hydroelectric, and nuclear -
energy. It is estimated that Africa has about 1.3 percent of the world's coal
reserves and from 2% to 40 percent of the world's potential hydroelectric
power.
The general secretary's staff of the United Nati.ons Program for Development
drew up a general report for use as a working document for the Nairobi
conference of African governmental experts.
It notes first that the last 20 years of the post-colonial political indepen-
dence period have not brought about the expected radical economic transforma-
tion because most of the countries have adopted negative development strategies.
Despite Africa's vast natural resources and the laudable efforts of its govern-
ments and people, it sfiows no notable growth rate or satisfactory increase in
general well-being, Its economy remains essentially underdeveloped.
An African Strategy for Development
The report then restates the guiding principles of African development strategy,
which are de�ined by the member states of the Economic Commission for Africa:
Although trade with countries on other continents is important, as is private
aid and investment, these factors cannot alone bring about the desirable,
= timely, and basic economic and social change that autonomous economic growth
and development depends on, in terms of both resources and function.
A conscious effort must be made at the national, multinational, and regional
levels to plan, begin, activate, and direct these processes.
Autonomy in terms of resources implies that imports must be gradually replaced
by production from the economic and social system.
Functional autonomy demands that the interplay o� supply and demand, which
determines the direction and rate of development, economic growth, and the
structure ef production, consumption, and investment, apply in every country
and that the ecanomic and social structures be conceived in such a way that
the different elPments mutually support and reinforce one another.
Autono;~y in terms of resources as well as function requires that the people
participate effectively and massively in the production and distribution of -
the social p:oduct.
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This strategy is to be the hasis for the scienti.fic and technological activity
of the 1980's to complete the system of technical cooperation for the benefit
of collective autonomy in Africa,
In recent years, many African countries have made progress in developing and
planning scientific and technical policy. In the last decade, the conceptual
framework of this policy has evolved: the countries of Africa (especially
Egypt, Ethiopia, the Ivory Coast, Kenya, Nigeria, Senegal, Tunisia, Cameroon,
Tanzania, the Sudan, and Zambia~ were at first anxious to apply resources to
basic research, and they came to recognize the importance of science and
technology to their national plans for general development. -
The Means of Development Research
The UNDP general secretary staff's report deals with the means of development
research:
(al Most African countries have two or three times fewer researchers, engineers,
and techr.icians per million infiabitants tfi an the countries of Asia and 30 times
fewer than European countries,
(b) Only a few African countries fiave achieved the UN objective for the
second decade of development as set by the World Action Plan: 200 researchers
per million inhabitants in 1980 (380 for Asia and 400 for Latin America), In
1957, almost all the European countries had 1,000 researchers per million
inhabitants, and this number has increased considerably since then. The
African countries that have reached or are close to the objective are Egypt
(500), Ghana (474), Tunisia (257), Senegal (221), Mauritius (219), Kenya (143),
the Ivory Coast (125), Libya (85), and the Central African Republic (71).
, Foreignexs are sometimes included in these figures, and in some countries
they account for as much as 70 percent of the corps of researchers and engineers.
(.c) A large proportion of researchers and engineers are employed part-time
(48 percent on the average). Most rssearchers and engineers are in the natural
scier.ces (37 percent) and agriculture (33 percent), while the mechanical and
electrical industries, which are an important sector, have only 9 percent of
the total.
(d) Eligher education is the greatest employer of researchers and engineers
engaged in research and development (55 percent of the total). The production
sector employs 36 percent and the service sector, only 9 percent,
blost African countries have not met the objective set by the United Nations
of devoting 0.5 p~rcent of their gross national product (GNP) to research
and development.
Projects Under Study or Under Way
Various projects are presentZy in the study stage or have been undertaken in
Africa.
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A large number of countries have sho~vn great interest in using solar powex
for various purposes: pumping water for domestic use and ixrzgating small
plots, cooki.ng food, evaporative processes, distilling water, etc, The
~irst solar pump in Africa was installed in tTie Dakar Meteorological }'hysics
Instittite in 1968, Similar pumps are presently at work in Algcria, F.gypt,
Upper Volta, Kenya, hiadagascar, Mali, Mauritania, the United Republic of
� Cameroon, in the Sudan, and Chad, and others are being installed in Cape
Verde, the United Republic of Tanzania, and Rwanda,
The Office of Solar Energy o� Niger (ONERSOL), which was created about 12
years ago, the Institute of Solar Energy and Research Applied to the Environ-
ment (ISERER) in tfie Sudan, and the Solar Energy Laboratary in Bamako, Mali
have already produced several trial products of interest in the application
of solar energy: wat~r fieaters, distilleries, etc. ONERSOL, with the colla-
boration of the tiVest German Spilling company, has built a prototype solar
engine that produces mechanical energy and is marketed under the name Onersol,
as well as an experimental solar kiln for ceramics. The Rwandan Center for
Energy Studies and Applications also has an applied research program that
deals with such machines as solar refrigerators and biodegraders.
The Inter-African Commission of Hydraulic Studies of Upper Volta has a
research program on the production of biogases. For more than 20 years,
a private company, Fort Ternan, has been making biodegraders in Kenya,
' These installations produce not only methane gas but also excellent fertilizer.
The Coffee Research Foundation of Kenya has demonstrated scientifically the
high c{uality of the mud used as fertilizer.
Attempts have also been made to use wind power, especially for pumping water
for domestic use and for irrigating small plots. Pilot experiments and
experiments under working conditions are being carried out in many countries.
In Senegal, the physics group of the Polytechnical School of Thies is working
on generators run on wind energy and having a theoretical 13-15 horsepower.
The object is to see what problems are posed by the different kinds of machines
already developed and what their solutions are.
- Experiments on the aerodynamics of wind machines and the construction of new
kinds of wind machines are beir~g carried out in Ougadougou, Upper Volta.
Attempts are also being made to im~rove the effectiveness of wind machines
~ by overcoming such difficulties as the stalling of vanes by a violent wind,
the optimal adjustment of vanes, better operation in l.ight winds, and increased
resistance to high winds. Locally built wind machines have been installed in
several countries, notably Ethiopia, Upper Volta, Mali, Tanzania, and S~negal.
Cape ~Jerde produces wind machines industrially,
In the Ivory Coast and Nigeria, several research projects are in progress in
tha agricultural production sector, A lot of work fi as been done in agronomical
research to improve certain varieties of cereals and to study cultivation methods
apt to improve productivity, Attempts are being ~nade to improve local varieties
by experimenting with fiybrid plants adaptable to local economic and climatic
c.onditions. Fertilizers and otfi er materials for increasing productivity are
also being tried out.
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Research and aevelopment projects in housing, water, energy, agricultural
and manufactuz�ing industries are in progress in Botswana, the Ivory Coast,
Ghana, Guinea, Kenya, Nigeria, Uganda, Tanzania, Cameroon, Senegal, and Zambia.
In Nigeria, the Federal Institute for Industrial Research has encouraged the
construction of a treatment plant for gari (a cassava product) using new local
techniques. This project included basic research, quality improvement, and
industrial production.
The Tanzanian Organization for tfi e Development of Small Industry (SIDO) h as
launched some projects intended to develop and make known techniques appro-
priate to rural and small industries mainly in the areasof food production,
construction materials and clay~based products, textiles and clothing, and
a rural mechanics workshop.
The Center for Technical Consultative Services of the Technical and Scientific
University of Kumasi, Ghana is cooperating in the work of research and develop-
ment by furnishing technical know-how and participating in the trial of~new
products in pilot plants. Tt is also concerned with the technical aspects
of production, the possibilities of obtaining credit, and the improvement of
materials. The Center for Applied Technology in Botswana and the Consult ing
Group for Technological Development at the University of Zambia are carrying
out similar activities.
It is also acknowledged that the lack of qualified personnel and the shortcomings
of the educational system in Africa are the most serious obstacles to develop-
ment. Serious efforts are being made, especially in technical training. Many
university exchanges are being made between nations (Botswana, Swaziland, Lesotho,
Liberia, Sierra-Leone, Zambia, Cameroon, Senegal, tfi e Ivory Coast, Ghana, Mozam-
bique, Zimbabwe, Upper Vo1Za, Kenya, Togo, biali, Tanzania, Burundi, Benin, Mau-
ritius, Egypt, Tunisia, Gabon, Rwanda, the Central African Republic, the Sudan,
Zaire, and Madagascar).
Industrial Organization and Promotion
Industrial organization and promotion-are the basis of African development.
1n 1972, Africa's share in world manufacturing was only 0.6 percent, and
i~s share in the production from developing countries was less than 10 percent.
~~frican manufacturing production is divided into non-durable consumer goods,
- about 70 percent; intermEdiary goods, 15-16 percent; and capital equipment,
broadly speaking, 14-15 percent.
Diany ~frican countries are working increasingly at developing some areas of
}ieavy industry--cement, non-metal products, fertilizer and other chemical
products, especially--and are already making some metal products, such as
tahle and kitchen utensils, tools and simple instruments, or are proceeding
to produce transportation equipment, refrigeration units and other electrical
machinery, essant~ally with the hel.~ of imports.
Imports iiitendpd for the manufacturing sector include especially intermediary
goods tt~at havE not yet reached the stage of final production in African
industry. Of course, Africa produces a whole range of raw materials that
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are used in making many intexmediary goods that axe all used in the continent's _
manufacturin g industries, I~fany African countries are importing fxom outside
Africa increasing amounts of intermediary products that are sometimes made
with raw mat erials of African origin. Africa is generally a net importer
of shoe leather, wood pulp for paper, non~errous metal products, tanning
materials for laatlier, textile dyes, etc.
At the same time, Africa is a net exporter of leather and hides, lumber,
nonferrous b ase metals (especially copper, tin, zinc, lead, and aluminum),
pigments, indigo, coal-tar dyes and other products for tanning and dyeing,
all of which are used to make imported intermediate goods. These goods could
be produced locally with local materials partly to supply expanding industries
and party for export at a better price than they get as raw materials, It
is equally evi~ent that intraregional trade in these products is very limited,
which explains to some extent the lack of coordinated development of African `
manufacturing industries.
Some of the Africa pror~otion organizations are:
Tanzania: th e Small Industries Promotion Office contributes to the establish-
ment of especially viable industries, such as arti~anal sugar-making, artisanal
oil extraction, fruit and vegetable conservation, clay tile and brick produc-
tion, and paper products and paper manufacturing.
Botswana: th e Botswana Business Development Service (BEDU) promotes the forma-
tion of local businesses by making workshops and industrial plants available
to them.
Senegnl: the National Society for Industrial Study and Promotion (SONEPIL)
- has had �he task since 1956 of supervising the formation of small and medium
businesses in various parts of the country and managing industrial parks
(Dakar, Thies, Saint-Louis, Kaolack, and Ziguinchor).
Mauritius: the b1auritian Sugar Industry F.esearch Tnstitut~ (MSIR7) gives
African countries access to its techniques for maximizing production, processing
sugar, and training personnel. -
Nigeria: the Nigerian Palm Oi2 Research Institute takes trainees from other
African countries that produce palm oil and initiates them in cultivation,
processing, and marketing methods. -
The aforementioned UNDP also Iists ot'.ier efforts at industrial promotion:
cattle raising ir, Botswana, shoe leather in Tunisia, vineyards in Tunisia,
minerals in Burundi and Benin, industrial study and planning in Egypt, an
industrial technology school on Mauritius, and a Center for Industrial Infor-
mation and Tech.nology in Gha;~a.
Rural Technology
Concer;iing rural technclogy, the report mentions the manufacture of light
agricultural equipment in Kenya, Upper Volta, Uganda, Swaziland, and Tanzania,
which have benefited froN pertinent research. The same is true in Upper Volta, -
where ~ project for using plastics }9 rural development is in progress.
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Other research and development projects are being caxried out in the f~eld o�
energy resources;
Ghana: development of forest energy resources;
Kenya: a geothermal electric power plant;
- htauritius: maYimum use of water power;
Ethiopia: wat er pumping in rural areas;
- Cape Verde: water pumping by wind power;
Mali: practical application of researcfi by the Solar Energy Laboratory;
Rwanda: development of solar distilleries by the Center for Solar Energy Appli-
cations and St udy;
Upper Volta: projects by the Inter~African Committee for Hydraulic Studies.
In addition, various scientific and technological projects based on problems
important to Africa are benefiting from international aid and assistance,
especially in the Sahel Institute's struggle against drought and the battle
with desertification, which involves introducing the jojob a bean into the
Sudan. The jojoba originates in the Sonora desert of northwestern b1exico
and in the neighboring arid regions of the southwestern United States and
has miraculous powers. Tt can be used to conserve soil, fight desertification,
and especially to replace whale oil used in industry because of the oil that
can be extract ed from its seeds.
Liketi~ise, the Malagasy Innovation Institute (IMI) was created in September 1979
to contribute to the country's economic development by adopting innovative and
unr_onventional methods in solving its problems. Its action should enable Mada-
gascar not only to rzach the technical level of developed countries but also
to avoid some mistakes that the developed countries have made, such as pollu-
tion, de~umanization, etc.
In Tanzania, a technology for storing cereals has been evolved, and in Zambia
an easy way of storing corn after harvest has been found. ~
_ African Experiments in Technical Cooperation Between Developing Countries
Tl~e desire for cooperation betwEen African countries is attested to by the
existence of a hundred organizations, unions, communities, committees, and
~issociations.
In {Vest and Central Africa as well as in East Africa, economic cooperation
started with independence and in parallel to political cooperation. And
though, for example, Guinea has not joined Frencfi -lar}~uage.organizations, -
it immediately engaged in economic cooperation with Ghana to the extent that
a total union could be proposed. In Nortti Africa, and more especially the
Dfagltreb, economic cooperation was slow in getting started if it is dated from
tl~e independence o� Morocco and Tunisia in 1956. That is not at all true if
it is dated from tfie independence of Algeria in 1962, When th~ whole Maghreb
became independent, economic cooperation became the order o~ the day, The
same thing happened in the Nile valley between Egypt and the Sudan when the
S~~dar. became indepen~ent, Tfla necessity for economic cooperat~on seems tio
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become apparent to African countries as they have become independent, The
ef�ects o~ this realization can be seen in the constituent texts of the
Organization for African Unity (OAl)) and its instutional expression in the ~
organizations created,
i~tany Programs are being studied or implemented, often with the financial and
tecl~nical ~~ssistance of international organizations. Among the technical
cooperation projects between developing African countries can be noted
especially:
English-language East Africa: training of dairy personnel under the aegis
of the FAO and the host governments,
- Sub-Saharan Africa: training of acquaculture specialists under the aegis
of the FAO.
biali, Upper Volta, Niger, and Senegal: development of mass information for~
rural development, under the aegis of UNESCO.
Equatorial zone: training of rural leaders under the aegis of UNESCO.
Ghzna: training of agronomy teachers under the aegis of UNESCO.
btali: training of mid-level agricultural technical personnel for the Sahel
countries, under th e aegis of UNESCO,
lienya, Mauritania, Senegal, Ethiopia, Somalia; research and training under
the aegis of UNESCO and the FAO.
- Senegal and the Ivory Coast: training of family economy technicians and
agricultural specialists under the aegis o~ UNESCO.
Ethiopia: training of agricultural technicians under the aegis of UNESCO.
Swaziland, Zambia, Tanzania, Mozambique, Malawi, Kenya, Lesotho: mechaniaing
agriculture with a light, locally-produced tractor,
Niger: basic and applied research in solar energy,
Benin, Burundi, IJpper Volta, Mali, Niger, Rwanda, Tunisia, Botswana, Ethiopia,
Lesotho, Somalia, Tanzania: planning anu administration o~ special public~works
programs under the aegis of the International Labor Office (ILO).
Tanzania: artisanal production of agricultural implements; assistance to
industrial co~peratives, under the aegis of the United Nations Indust.rial
Development Organi.zation (UNIDO) .
Chad and Burundi: making pharmaceutical products from local medicinal herbs
under the aegis of UNIDO.
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Dt~li, b9auritania, Niger, Sudan, U~per Volta, Senegal, Chad, Nigeria; develop-
ment of the millet and sorgFium food industr~es in a common society, SADI/IMIL.
Ethiopia, Tanzania, Mozambique, Comero Tslands: development of mineral
resources.
lVest Africa: development of rice growing in the 15 countries involved, and
studies of storage, processing cereals, fruits and vegetables, and meat and
fish, under the aegis of UNTDO, tfi e UNDP, and the FAO.
COPYRIGI-1T: Rene Moreux et Cie Paris 1980
8782 �
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BURUNDI
ANNUAL VARIATION OF COFFEE PRODUCTION AFFECTS MONEY SITUATION
_ Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 9 May 80 p 1105
[Text) B~~rundi's economy is totally dominaCed by coffee, representing in
value over'90 percent of its total exports.
The production of green coff ee in the period 1978-1979 was estimated at
22,000 tons, thus recovering its best levels (21,400 tons in the period
1976-1977), but as the prices obtained declined on the average by 50 per-
cent, the income derived by export will not exceed for 1980, a volume of
5.3 billion Burundi f rance (1 F Bu = approximately 0.05 French f ranc) as
campared with 7.6 billion in 1979.
For the 1978-1979 period, the total revenue distributed to coffee producers
will be about 2.5 billion F Bu, contributing to the maintenance of the
purchase powez of the rural masses.
Under the double burden of the decline in the exports and the increases in
the imports because of the rise in coat of oil products, the trade position
is unbalanced, showing a 3 billion F Bu deficit as compared to a 1.4 billion
surplus in 1978.
From the monetary point of view, the annual variation of coffee producti.on
and the rece~pts of foreign exchange resulting from export affect the
evolution of the monetary mass and its counterparts. From 1975 to 1978,
this evolution was manifested in the manner summed up below (in millions
of FBu) _
- 1975 1976 1977 1978
Bills and coins in circulation - 163.7 + 701.2 + 813.9 +1,318.8
Sight and term bank deposita + 102.2 + 974.8 +2,248.9 - 190.8
Total money mass - 61.5 +1,676. +3,062.8 +1,128.
- Debt from abroad +1,057.9 +1,681.7 +3,924.1 -1,547.9
Debt on the State + 321.2 - 109.6 - 937.8 +1,158.2
Debt on the economy -1,461. + 498.2 + 354.7 +2,604.4
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The sudden reversal in the circumstances obaerved in 1978 is due to the
deterioration in the terms of exchange. Moreover, Burundi's economy is
exposed to different stresses: insufficient fluidity of the supply related
to the country bei~ng he~ed in, and the mediocrity of the inte:.~al means of
communication, deficiency of the marketin~ cixcuits and defective control
system f or the internal prices.
The short Cerm prospects of the Burundi econamy remain bound with the evolu�-
tion of the sales price of coffee and the increase in the cost of supplies.
. Fhrthermore the conflict which occurred between Tanzania and Yuganda did
- not f ail to affect seriously Burundi's supplies, by blocking the only two
means of communication, by land and lake, providing the access to the ports
of the Indian Ocean. Such a situation, if prolonged could endanger the
implementation of the Third Development Plan. It might even prevent normal
transportation of the coffee crop. -
As for the internal situation, the costs have suffered, and continue to
- suffer from considerable pressures, pressures maintained both by the high
level of the imported goods and by the increase in the revenuea of the
agricultural producera. That is why the public authorities are now faced
- with a problem which threatens to weaken the chances of development of
the country.
COPYRIGHT: Rene Moreux et Cie Paris 1980
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I~UR UI~I~ICIAL USti QN[,Y
BURUNDI
DEVELOPMENT OF NICKEL PRODUCTION
Paris MARCHES TROPICAUX ET MEDITERR.ANEENS in French 25 Apr 80 p 992
[Text] According to the report for the 1979 financial year, the Banque
Belge-Zairoise (Belgolaise) presented to the General Assembly on 23 April ~
last, Burundi may hope to develop its nickel production.
The bank noted that the Burundi economy, bound mainly to coffee, benefited
in 1979 from a favorable crop reaching 24,318 tons of commercial Arabica
coffee, 16 percent more than last year. Fairl.y favorable world prices made
it possible to sign sales contracts which will bring in about $94 millions
to this cuuntry. These relatively high commercial receipts limited the
effect of the extra costs of the imports and the impact of the latter on
foreign exchange reserves which are maintained at a satisf actory level.
An air bridge organized from Bu~umbura at the end of May permitted the
partial re~.ease of the port of Dar es Salaam where the aituation aubse-
quently impraved progreseively.
In the sector of mining prospections, the study of the nickel deposits of
the region of Musongati was carried out on the initiativa of the United
Nations' Development Program (UNPD). The report established confirms that
it is possible to set up extraction and refining industries. The annual
capacity of production and export would reach about 30,000 tons of ferro-
nickel, also a certain amount of copper and cobalt. The most extensive
deposit in Buhinda would permit operating at this level for about 20 years.
Belgolaise recalls that the signature of another contract for cooperation
between Belgium and Burundi for the period 1980 to 1984 was announced at
the end of November 1978. The Belgian aid woul~. amount to about 5 billion
Belgian francs altogether, includin~ about 1 billion FB for 1980.
- COPYRIGHT: Rene Moreux et Cie Paris 1980
9018
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BURUNDI
BRIEFS _
BUJTJMBURA CREDIT BANK--During the 1979 financial year, the Bujumbura Credit
Bank increased its contribution to the financing of Burundi's economic
activity. The rise in the short term credits allowed by the banking system
was 49 percent for import credits and 30 percent for export facilities. The
deposits of the customers of the commercial bands gave a 14 percent increase
for the year. On 31 December 1979~, the total balance of the Bank was 2.7
billion Burundi france (1 F Bu = 0.05 French franc). The deposits and
current accounts of the clients, on sight or. on term amounted to 1.8 billion;
meanwhile, the investmenta (portfolio of commercial assets and advances)
- represented 2.2 billion. Outside the budget, guarantees for third parties
came to 0.7 billion, while commitments for debtors amounted to 0.8 billion.
After amortiaements, provisions and taxes, the 1979 financial year balance ~
sheet gave a net result of 0.8 billion, for which the General Assembly of
26 March 1980 gave a dividend af 18.375 percent for a 100 million capital
along with 66 million miscellaneous reserves.. The president of the Bu~umbura
Credit Bank is Mr Jacques Verdickt and Mr Michel Lambin acts as general
mana~er as Deputy Administrator. [Text] [Paris MARCHES TROPICAUX ET
MEDITERRANEENS in French 9 May 80 p 1105] 9018
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CAMEROON
TRADE WITH BELGIUM-LUXEMBOURG ECONO~IIC UNION
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 9 May 80 p 1098
[Text] In 1978, the exports of the Belgium-Luxembourg Economic Union [UEBL]
to the Cameroon had increased by 24.7 percent while the Cameroon exports
had risen by only 9 percent, as indicated on 25 April by the Belgian Foreign
Trade Bureau. Thus the UBL deficit in its trade with the Cameroon had -
dropped by 81.6 million Belgian francs (855.7 million as compared with 774.1
million).
_ t?n the other hand in 1979, for the first 10 months of the year, the UEBL
exports dropped by 17 percent (542.7 millioh as compared with 654 million
Belgian francs in 1978) while tha Cameroon expbrts rose by over 56 percent
(968.9 against 618.3 million): the deficit is already reaching 426 million.
The increase in the Cameroon sales is found in many sectors, but the most
important is that of wood (70 percent of the total). One must now also add
crude oils which represent for the first 10 months, 27.6 million Belgian
francs.
As for the Belgian exports, the greatest reduction may be found in the sector
of fertilizers (although the Socame plant has not resumed its operation),
but there has been a regression also for machinery and transport equipment.
On the other hand, there was progress in manufactured articles and are at
_ the head of Belgian sales to the Cameroon; food products have also improved
their position.
In 1978, the UEBL retained its eighth place among Cameroon suppliers, with
2.3 percent of the total imports as compared with 2.2 in 1977. As for the
imports from the Camercon, in 1978, they bring the Union to seventh position
among the countries buying Cameroan products with 2.6 percent of the total
as compared with 2.5 in 1977.
In 1978, the Cameroon rose from posit~on 75 to 72 on the list of UBEL cus-
tomers and from number 65 to 63 of its suppliers.
COPYRIGHT: Rene Moreux et Cie Paris 1980
9018
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CAMEROON
NO REAL PROGRESS NOTED IN INDUSTRIAL SECTOR
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 9 May 80 p 1098
[Text] No characteristic evolution of the Cameroon industrial sector was
- noted during the third quarter of 1979. In one year, the figures increased
at the same rate as the inflation of the money: in other words, there was
no real progress. Still within the year, the persons employed by the
members of the Syndustricam increased by 1,000 (if for no other reason than
new members ~oining the Syndicate) to achieve the total figure of 28,013
workers; during the same period, the total amount of salary earned. rose by
?8 percent~ that is, 13.0 percent per person employed; this last rate
corresponds approximately to that of the increase of the cost of living.
Now during this period (September 1978 to September 1979) the government
did not decree any increase in salaries; this average increase of 13.9
percent per worker means that the companies granted raises of their own
accord.
The exports to UDEAC Chad have begun to decline, for the RCA [Central
Af rican Region], and especially Chad have not recovered their stability.
On the other hand large scale exports, especially to industrialized
countries have increased by 20 percent in current terms. What were the
branches which made particular progress in the area of large scale exports?
Text~.les, printing equipment, plastic, aluminum. On the other hand, the
sectors most affected in the export are Figuil cement which no longer goes
to Chad, transformation of ferrous metals, clothing.
_ It is true that if we consider the business turnover including all taxes, _
no recession is observed in current francs, except for clothing. On the
_ other hand we may note considerable progress, sometimes coming from a new
member. Thus, the sector of electricity and electronics increased by 59
percer~~ in one year, the "shoe-leather goods" sector by 65 percent (no doubt
because of the starting of the Societe des Tanneries et Peausseries du
Cameroun-STPC of Ngaoundere), beverages by 29 percent (causing the creation
of new brewery plants) and the sector on nonmetal mineral products by 27
percent owing to the continued progress of the cement induatry, which is
soon to undergo expansion.
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It may finally be noted that the trunover for internal trade has certainly
progressed in constant terms, since it increased by 17 percent, which
proves once again the importance of the internal market for the companies
set up in the Cameroon, as had already been emphasized by the article on
the re3ults of the industry in 1978-1979 published in the MARCHES TROPICAxJX
of 4 Jan 80 (p 29).
COPYRIGHT: Rene Moreux et Cie Paria 1980
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CAMEROON
BRIEFS
LNG PLANT-The Total-Mobil Oil partnership hae become the "technical assis- -
tant" for the combined group of the Cameroon oil companies and the Societe
nationale des hydrocarbures [National Hydrocarbon Company] (SNH--a State -
enterprise) which is to build a naturel gas liquefaction plant in Kribi.
It was on 18 March last that the companies ELF-Erop, Coast Oil, Mobil Oil,
Shell and Total agreed to work together and operate as soon as possible
the gas reserves in the Cameroon. Preliminary studies will be carried
out immediately to be completed by December 1982. They will be followed
by the construction of the gas liquef action plant which will be operational
~ by 1987. All the operations will be coordinated by SNH. [Text] [Paris
MARCHES TROPICAUX ET MEDITERRANEENS, in French 9 May 80 p 1098] 9018
DUTCH AID FOR ROADS--A financing agreement for 18 million CFA francs meant
for the building of the Douala-Yaounde highway was signed on April 29
between the Dutch ambassador, Mr Abraham Schneiders and the Cameroon deputy
minister of Economics and Planning, Mr Pierre Desire Engo. The Dutch
financial participation will permit building section number 3 of the ro~ad
which is tu 3oin the two Cameroon capitals, Douala (economic) and Yaounde
(political) at a distance of 275 km from each other. During this ceremony
of the signing of the agreement, the Cameroon deputy minister indicated
that the other backers would be meeting in Brussels to release the other
funds needed to implement the pro~ect. [Text] [Paris MARCHES TROPICAUX
ET MEDITERRANEENS in French 9 May 80 p 1098] 9018
BELGIAN AID, LOAN--After the end of the meeting at the end of March of the
mixed Belgian-Cameroon Commission an agreement covering a 5 year period was
signed. The financing provided by this agreement will be 62.5 percent for
the benefit of rural development, 10 percent public health, 7.5 percent -
for the infrastructure, 8 percent for training and study scholarships, and
12 percent for co-financing oF voluntary nongovernmental organizatione,
associated experts and scientific support to the universities. For 1980,
Belgium will grant Cameroon aid to the tune of 200 million Belgian francs, -
repayable in 30 years with a grace period of 10 years. [Text] [Paris
MARCHES TROPICAUX ET MEDITERRANEENS in French 9 May 80 p 1098] 9018
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COMORO ISLANDS
BRIEFS
MARITIME SERVICE--Ships associated with Cimacorem (International Conference
of Madagascar, Comoro Islands, Reunion and Mauritius) have informed shippers
that despi te often difficult operational conditions, they have decided to
apply the same freight coats for Grande Comore (Moroni) as those used for
Anjouan (Mutsamudu), beginning 15 May 1980. The equali~ation represents ~
a 10.65 percent cut. The conference also announced its intent to serve
the Comoran Archipelago directly by making, as often as possible, monthly
calls at the ports of Dzaoudzi, Moroni.and Mutsamudu. In 1979, it made
18 direct calls (seven at Dzaoudzi, four at Mutsamudu and seven at Moroni),
totalling 6,000 tons. In the first 4 months of 1980, Cimacorem has already
- made 11 direct calls (five at Dzaoudzi, Mutsamudu and Moroni three each).
[Paris MARCHES TROPICAUX ET I~DITERRANEENS in Freach 16 May 80 p 1164]
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EQUATORIAL GUINEA
'CONTROLLED LIBERALISM' SEEN AS ESSENTIAL FOR DEVELOPMENT
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 21 Mar 80 pp 668-670,
671
[Article by Jacques Latremoliere: "After 11 Years of Lethargy. Equatorial
_ Guinea: The Hour of Decisions"]
[Text] It was on 3 August 1979 that a carefully prepared military action
brought Lt Col Obiang Nguema Basogo, then vice minister of the armed forces,
to the head of Equatorial Guinea. On 4 August, the new chief of state
addressed a message to King Juan Carlos expressing his wish to improve
relations with Spain which, although never completely broken off, had
been awkwardly strained since 1973. Almost simultaneously, an envoy
from the Spanish Government disembarked at Douala, only to leave right
away for Malabo. We are thus not telling secrets on Spain and Equatorial
Guinea when we note, at the beginning of the new regime, this reciprocal
attraction, all the livelier for having been thwarted for so long.
Even before the conventions giving a,juridical framework to the cooperation
with Spain were signed, the latter proffered assistance with a speed which
is not always appreciated on the spot, so pressing are the needs of a country
put in a state of economic siege for 11 years. It is even mare remarkable
when one recalls the formalities with which foreign aid is too often sur-
rounded in Africa, especially international assistance. A grant of a bil-
lion pesetas, covering the services of 62 teachers, 40 doctors, 45 male
and female nurses, financial experts, utility and liaison vehicles, food
products and medicines; three bank loans totaling $24 million in all, at
advantageous interest rates and with repayment deferred, permitting the
immediate opening of work sites in the areas of public works, civil aero-
nautics and fishing, without affecting a loan of $2 million for the purchase
of consumer goods: such are, up to now, the most important aspects of an
action which is here and now visible in the field, with its cohorts of
nuns in white veils and its prefabricated houses errected with joyous
ha~ner blow~ along the avenues of Bata.
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Arriving on 13 December 1979 in a royal armed forces DC 8, with a retinue
of 150 persons, including several ministers and high officials and 40
~ournalists, King Juan Carlos and Queen Sophie stamped these renewed con-
tacts with their approval; meanwhile, two Spanish cargo ships emptied their
loads of equipment and provisions, and a liner which came for the occasion,
the Ciudad de Pampelona, served as a floating hotel. It was a long time,
to be sure, since the facadea of the cathedral and administrative buildings
which su2rounded the old port of Santa Isabel had witneased such activity.
Z~ao banquets for 200 were given--on 13 December by the president, on 15
December by the king. Everyone who matters in Equatorial Guinea was pre- ~
sent. The president spoke of Spain, the "mother" country, b ut also of the
budget, which is difficult to work out, of education, of health, of air,
land and sea links and of telecommunications. The king, af ter having thanked
his hosts for their invitation, replied by speaking of the Spanish heritage,
the open outlook of Spain toward the rest of the world, the attention which
it plans to pay to the African woxld, on a footing of mutual respect and
perfect equality--all being remar.ks which Valery Giscard d'Estaing could
have made, if translated into French.
A glittering start was thus given to a course which Spain broaches, if not
completely as a novice, at least with an appreciable delay: a course which
the industrialized countries of the West weigh, within the framework of
the newly independent countries, to reconcile the requirements of their
economies with the development, which is indissolubly linked with it, of
their African partners. It will probably be necessary to reckon with
Spain, its engineering offices ar.d its companies in the tenders for quo-
tation on the coast of Africa, where they are already appearing in
several places. On the contrary, when the festival lights are extinguished,
our Spanish friends will perhaps have to discover, to maintain their chances
in a competition where no gif ts are given, that the ties to be established
with Africa in 1980 are not at all the same as in 1968, or even in 1973.
Isolation and Autarky
This Spanish heritage, to which King Juan Carlos referred when disembarking
at Bioco*, is encountered by unraveling loca~ history on the banks of
beautiful Luba Bay. There a stela commemorates the fact that, on 24 October
1778, Admiral Don Felipe de Los Santos Toro, commanding a squadron composed
of the frigates Santa Catalina and Nuestra Senora de la Soledad, took
possession of the island in the name of Charles III, according to terms of
the Treaty of Pardo by which the Portuguese ceded it to Spain.
*The official name henceforth of the old island of Fernando Po, renamed
Macie Nguema during the ex-president's dictatorship.
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The Spanish heritage is apparent in the off icial architecture, at once
massive, elegant and highly colored, in the patios of some residences, and
in the azulejos [painted glazed tiles] which sometimes adorn the walls eaten
up by tropical humidity. It is still more apparent in the behavior of the
upper classes. In fact, although Spain wove an invisible veil around its
former possession which isolated it from the outside world and which it
could only leave in the direction of the Canaries and the mother country,
Spain did not at any rate economize on the educational training of
African middle management, conducted in Spanish religious colleges and uni- -
versities or, for mili.tary officers, at the Saragossa military academy.
Intelligence, the ability to converse, a reserve quickly perceptible be-
hind an outward sprightliness, and a total absence of pettiness are its
characteristics. There is no self-serving flattery in recognizing that this
type of training is in no way secand to English or French models and that -
the human quality which results from it stands out as one in a thousand.
Among the influences which have marked the African soul, and of which he
intends not to deny a single one, Leopold-Sedar Senghor will have to make
room for the Spanish, the presence of which he will henceforth stress at
inter-African conferences. However, the Spanish heritage in Equstorial
Guinea has its limits. Everywhere else in the world the Spanish language
and culture are excellent tools of communication. It should be recognized
that in the hollow of the Gulf of Guinea, the enrichment which they bring
is on equal footing with the isolation of which the Guineans are aware in
terms of the closer and closer political, economic and technical ties among
the states of this geographic region. Whence comes the wish shown by the
new preaident to see his minieters and aidea learn the French langu~ge
rapidly, using modern methods. If Equatorial.Guinea is to be the test
bench and springboard of economic activity by the Spaniards in the direction
of the African continent, the same efforts at adaptation will b~ required
of them as are required of French speakers trying to acquire markets in
South America.
The consciousness of the Spanish heritage, as a cultural heritage, should
not thus be confused with a rejection of the surrounding area. Likewise,
the reestablishment of relations between Spain and Bioco, the enclave of
_ Rio Muni and the four inlets located off Gabon, all of which constitute the
Republic of Equatorial Guinea, cannot in truth be understood as a return
to the economic self-sufficiency of the colonial period. Not that the latter
was without any merit. In some respects, the slight territorial importance
of this last jewel of its empire had led Spain to remarkable accomplishments
in the area of education and public health, especially for Rio Muni. But
times have changed, and it is perhaps from not having breathed deeply enough
of the new air which has blown over Africa since 1960 and from having tried,
in 1968, a remote-controlled independence which would have maintained the
old social and political order to a greater or lesser extent, that Spain
was in the end responsible for the deplorab le excesses of Macie's rule.
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This is undoubtedly what Lieutenant Colonel Obiang wanted to expresa in
his welcome to the king by an alluaion, which his Spanish listeners variously
appreciaCed, to the delays caused, in the two countries, by "the two Fran-
ciscos"*. In reality there are two currents in these renewed Guinean-
Spanish contacts. One looks to the future--efficiency, technology, the wish
of Spanish businessmen to play a role appropriatP to their country's in-
dustrial development in the integration of the African continent~into the
world economy. Ti~.is is what-the king and the new Spanish ambassador to
Malabu, M Andrada Valderville, represent.
The other aspect is that of the Spanish landed proprietors who own 85
percent of the cacao plantations in Bioco, about 39,000 hectares, which
they had to give up gradually from 1973 to 1979, and who are returning to-
day to get them back. This return can be beneficial, taking into account
the ageing of the plantations and the necessit,y to rejuvenate them. Those
affected had until the end of February to ask for restitution, tc~ which the
government is not opposed, sub~ect to payment of a custodial charge during
the period of abandonment and submission of an investment plan for restoring
cultivation and modernizing the equipment. What is to be feared is that this
return might be accompanied, like that of all emigrations, by a certain
nonrecognition of the laws of competitio.n and a conservative attachment
to the idea of a game preserve, rather than the motto "May the best man
win."
It is probable, in fact, that the youth of Equatorial Guinea who, for 11
years, have associated with other foreigners, learned other languages and
sometimes visited other countries, all of which have left their imprint,
would not consider that the satisfaction of again meeting old friends must
- imply reserving a monopoly of friendship and accompanying preferences for
them. Whatever the partners may be otherwise, any confusion in this area ~
would be unpleasantly resented. Lieutenant Colonel Obiang did not appre--
ciate Gabon's haste in demanding for Petrogab the right to explore the
adjoining sea areas, and it does not seem that a project for an agreement
with analogous objectives, proposed in December in Madrid to M Severino
Obiang, secretary general of the Commissariat for Industry, has received
the approval of the Junta tecnica*.
International Options of the New Government
The eclecticism which the new authorities demonstrate in their foreign
policy is a good illustration of this state of mind. After a period of
hesitancy during which he did not give the impression of being opposed in
principle to Spanish interests, Macie Nguema progressively took refuge in
*F rancisco was Macie Nguema's first name, like that of the Caudillo. Macie
is the "authentic" African form of Macias which the ex-president himself
adopted. -
*Civil ministry. See the government makeup in MARCHES TROPICAUX ET
MEDITERRANEENS, 7 March 1980, p 572. .
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sullen isolation, favorable to the task of following the political advice
of his Soviet advisers; the latter did not neglect to conclude fruitful
deep-sea fishing agreements for their trawlers with him. The new chief of
state was eager to break these agreements. But for all that he has not
broken ties with either the USSR or its allies, North Korea, Cuba and Libya,
and still less, of course, with People's China. It even seems that he is
negotiating with the USSR--not without asperity, and confronting them with
tlie Spaniah proposals--new fishing agreements including the inetallation
of ref rigeration facilities and the sale to the people at imposed prices
or a part of their catches.
Equatorial Guinea thus presents today the sometimes surprising spectaclE
of a country whose orientation, specifically in the Sahara affair, would
place it on the right wing of the OAU but which, faithful to this organiza- ~
tion, nonalined, a member of the Association of Lome, acts in such a way
that technicians of East and West are encouraged to coopera~e with each
other on its soil. Thus, inasmuch as the military assistance treaty
signed in 1977 by the USSR has not been abrogated, the Russian specialists ~
charged with maintaining military equipment and the dozen-odd pilots and
mechanics assigned to the governmental squadron, composed of a Yak 40,
a 22-seat Antonov and a helicopter, remain where they are. Lieutenant
Colonel Obiang avoids boarding these craft. But since the Antonov's crew
risks contracting regrettable habits of indolence under this regime, the
Russians have agreed to put it at the disposal of the LAGE*. Their pilots
thus insure the daily transporting from Malabo to Bata and from Bata to
Malabo not only of national pasaengers but also of numerous weatern mis-
. sion ~hiefs and Spanish development assistance perso~inel. In the same way,
about ten Soviet advisers based at Bata philosophically await better days,
the "Does one ever know?" written on their faces not seemin~ to disturb the
government excessively. The Cubans' effective force reached 200 assorted
technicians and instructors in 1975. Today there are still 25, including
15 at the embassy, two doctor-and-nurse teams, one at Bata and the other
at Malabo, and also three forestry experts in Rio Muni whose activity seems
to be very slow. As to the Chinese, their large number, several hundred,
is explained by the fact that besides their activities in providing assist-
ance--15 of them, including 9 doctors, provide various services and speci-
fically that of staffing the surgical section at the Bata Hospital--they -
have started various projects with their own manpower: a very beautiful
embassy at Malabo, a hydroelectric power station at Picomo, 13 kilometers
from Bata, a 75-Km hardtop road from Ncue to Mongomo and the installation
of automatic telephone exchanges at Bata and Malabo, the first having besn
completed and the second to be inaugurated in a few weeks. To their cre-
dit as well is the supply of a mini-liner, the Acacio-Manie, which connects
Bata with Bioco and the other islands.
- *Lineas aeras de Guinea Ecuatorial [Equatorial Guinea Airlines], company
operating lines in the interior, whose statutes are still poorly spelled
out.
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As for western aid and international organizations, numerous programs have
been set up, but the effective forces of the developmental assistance
entities are reduced to a minimum. Morocco gave Equatorial Guinea 10
tons of sCaples and medicines in September, coinciding with the arrival of -
a delegation of doctors and engineers. It is known, moreover, that Lieu-
tenant Colonel Obiang's bodyguard consists of two officers, ten noncommis-
sioned officers and 100 enlisted men de tached from the Sherifian [Moroccan]
Army. A rumor even circulated in Malabo that.the Spanish governmertt, irY~i-
tated by a situation that it considers prej udicial to its good relations
with Algeria, because of the close cooperation which it maintains with -
Equatorial Guinea, had proposed without succes~s to replace them with a
company from the Tercio.
Several western ambassadors accredited to Malabo, but not having their
residence there, have come in recent months to present themselves to the -
Guinean authorities: Monseigneur Uhac, apostolic legate, and Mrs Ma.bel
Smythe, whose trip marked the reestablishment of good relations with the
United States which fortuitous circumstances, not linked to politics, had
clouded several years ago. However, it was the international cooperation
organizations which made the most spectacular effort to bring the country
immediate assistance which, from all evidence, was most urgently needed--
a third of its people having emigrated abroad, the volume of its exports
having plummeted by abaut seven eighths, while its agricultural equipment,
its highway infrastructure and its industrial equipment had in some cases
been damaged to the point of total irrecoverability.
On the day after the coup d'etat, a telegram from M Claude Cheysson assured
the government in Malabo of rapid support from the EEC, whose activities
had been suspended fo r the most part because of the grave suspicions which
hovered over the deeds of the ex-president. A mission led by M Hauswirth,
deputy director for development aid, soon arrived on the spot to make this
promise concrete, the files of projects to be carried out having to be
presented to the offices of the commission before.l May~ The breakdown
of this emergency program is given below; it amounts to 6.3 million
European units of account, or 1.35 billion CFA equivalent at the parallel
exchange rate to the same amount of ekpweles*, It looks to the accelerated
development of the only food resources which there are in Bioco, small market
gardening and fishing, as well as the minimiun maintenance of the roads of
Rio Muni and the purchase of equipment with corresponding technical assist-
ance, permitting their more complete repairs.
*Theoretically aligned on the peseta, the ekpwele, at the chancellery rates,
is worth 3.75 CFA francs. At the paral.lel exchange rate, it is exchanged
for 1 CFA franc.
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F
European Development Fund
Equatorial Guinea. Emergency Program
Public Health Supply, addition to and overhaul of the equipment of
the Ebebeyin and. Mongomo hospitals. Pharmaceutical products. 1 million
UCE [EEC units of account] .
Agriculture Small farming. Market gardening. Animal huabandry.
Seed. P1ant sanitation products for the Moca valley. 840,000 UCE.
Public Works Equipment for maintenance of laterite roads and surfaced
roads. Technical assistance. 1 million UCE.
Fishing Study. Technical assistance to fishermen. Reequipping for
artisan fishing. Equipment. 850,000 UCE.
Electric Energy Restoration of the Malabo power grid. 2.4 million
UCE.
Reserve 282,000 UCE.
This program must be presented to the EEC offices w~thin 3 months.
A UN mission under the direction of l~t Gordon Goudrey, deputy secretary
general, accompanied by representatives of various agencies concerned,
came to atudy ehe assistance which it could offer on a longer term basis,
in the form of operating credita and assignment of experts. The African
Development Bank, finally, took charge of repairs to the Bata airport run-
way, for an amoun.t of 500,000 UC [units of account] (about $650.000).
- Among these various actions, that of France merits special mention. Our
= country was completely disinterested, during the colonial period, in this
half-insular, half-continental entity, and Rio Muni existed for all practical ~
purposes as far from the Cameroons and Gabon as if nature had placed it
in Patagonia. It was President Ahid~o who, during a trip by Pompidou to ~
Yaounde, attracted his attention to the singular activity which the USSR
was deploying there and the interest which he might have in following it more
closely. Whence the opening in Malabo, in 1969, of a French Embassy. Still
today, our ambassador is the onl~t chief of a Western diplomatic mission
tiaving his residence in Equatorial Guinea. The political interest of
the post has not, moreover, excluded all economic activity; two French ~ !
firms, Dragages and the CRFM [expansion not known], have been able to get
settled there on the initiative of the Financial~.Union far Africa._ Dragages
completed the modern port of Bata, a bridge over the Ekuku, an imposing
- presidential palace which only the king and queen of Spain have so far .
lived in, during their recent visit, and finally two office buildings housing
the services of the Central Bank at Bata and Malabo, for a total price of
40 million dollars overall, the settlement of which caused no difficulty.
- Macie was a good payer
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This technical assistance given to the previous administraton is not apt
in any way to interfeze with our cooperative effort, which, moreover, finds
some of its former counterparts at the wheels of state. Our cultural center
is functioning conveniently in Bata. There, 150 students of French are en-
rolled. A French film festival was recently organized there with complete
success, and one could only deplore the poverty of its equipment; the pro-
fessional quality of its director and promotor seemed worthy of better. -
Two young French people, a doctor and a nurse from "Doctors without Fron-
tiers," are helping at the Bata hospital, under the direction of an African
chief doctor, with Chinese and Cuban coworkers. But it is at Malabo that
France's effort is most noticeable. It was recently placed in relief
by the visit of Robert Gal.ley and the installation next to the erabassy of
an aid and cooperation mission, in charge of a program of 10 million French
francs, the details of which follow. Added to this is a study on conditions
of maritime fishing which is slated to result in a project carried out by
means of an execution loan.
French Funds for Assistance and Cooperation
Equatorial Guinea
Putting the port of Malabo in condition, lst stage: 8 million French
- francs. Leak-proofing the joints between 8ie blocks of the 200-meter
quay. Reconstruction of the work platform of the quay. Repairs to the
system for distribution of water to ships.
A second later stage will include: electrical reFairs and inatallations;
putting stiops in condition; construction of buildings for garages, work-
shops, offices and sanitary facilities.
Geology. General inventory and mine prospecting maps: 2 million French
francs. - Documentary and photogeological study. Geological reconnaissance -
sections. Mine prospecting tests.
Fishing. Studies. Upgrading of fishing gear. Possible purchase
of a sardine boat.
The main part of this program, entrusted for study of the preliminary pro-
ject and for control of the work to BCEOM (Central Study Office for Over-
seas Equipment), and for.execution to Dragages, is the repairs to tl~e Malabo ,
port; the poor condition of its quays is a dangerous handicap for unloading
of cargos.
It remains true, nevertheless, that the historic, linguistic and commercial
history of Spain gives it, in the matter of cooperation with Equatorial "
Guinea, a precedence and a superiority which it is neither our intention
nor in our interest to dispute. Moreover, it is not certain that, among our
possible actions, those which are in the area of development assistance
are in the area most likely to be of interest to the young state.
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Stages of a Renewal
Equatorial Guinea's basic prohlems result more from the defunct dictator's
negligence than from the massacres for which he is blamed. It was not,
moreover, to these massacres that Lieutenant Colonel Obiang referred to
justify h~s action in the proclamation made on the evening of 3 August
1979, but rather to "the incapacity of the ex-president, to the political
and di~lomatic isolation which he imposed on his country and the economic
and administrat:ive paralysis which characterized his administration."
The last normal harvests, before independence, were 40,000 tons of cacao
and 8,000 tons of coffee. In 1978, these tonnages had fallen, for the whole
territory, to 8,000 tons of cacao and 1,500 tons of coffee. Figures on
palm tree products (3,000 tons of oil exported in 1968) were no longer kept
after 1973. The same holds for the abaca, production of which should be
sufficient to meet the needs for bagging coffee and cacao, or about
800,000 bags.
It is to giving this production a new start that the government and more
precisely the Commissariat for Agriculture should give priority. The -
return of the former Spanish owners to Bioco can provide a partial solution
for the problem, in the measure to which the latter are disposed to finance
a rejuvenation of their plantations and the modernizing of drying installa
tions. However, the problem of manpower for this work remains, both for
planting and for harvesting. Sir.ce the interruption of the annual immi-
gration of Nigerian laborers, which it will be hard to reestablish, man.F^;~er
hr~s been in tragically short supply, ae shown by the pods of the previu�~,~
harvests hanging, rotted or dried up, from the branches of the trees.
. Macie Nguema tried to remedy this by bringing Fangs from the continent
to the island, to reinforce the local ethnic group, the Bubis, who arE
insufficient in number and more inclined to small commerce than to agr;:-
culture. What remains on the spot of the Fang immigration is hurryi~z�
onto the bridge of the Acadio Manie to get back to Bata. Therefore, the
government is sending recruiting missions to the manpower-exporting
African countries: Rwanda, Burundi and Upper Volta. To the extent
that this problem is not solved, and it can only be done gradually, :_t will
be difficult to demand from the planters the necessary investment4 :~a resume
production on the cacao plantations.
The presence of manpower in Rio Muni would tend to make one think ~:hat its
agricultural resources, today hardly tapped, would bring a more zspid
yield. Cacao plantation praduction proceeds haltingly there, aiid coffee
exploitation is only knonw in the form of picking, in the absence of any
infrastructure permitting reproduction through propagation by cuttings and
multiplication by clones. It seems that at this stage, an inter~~ntion by
the French research institutes, whose qualifications are today -.:,:irivaled
in Africa, would have to play a determining role, without great costs for
cooperation, European or international financing being able tc *_ake over
in this area from studies whose prefinancing should be facil.i~~~tpd. It
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would, in any case, be desirable for thia phase of selection and reaearch
to precede concrete operations, already envisaged for the oil-palm tree
and the abaca by the French firm ERA (Agricultural Enterpriaes and Pro-
jects). Putting back into shape the large oil-palm plantations and the
integrated factories, 1,500 fiectares in all, specifically in the Mbini
- sector on the Rio Benito, is a job requiring much time and labor; however,
it ought to give a certain primacy to Rio Muni with relation to the insular
sector, taking into account speculative and new-area plantings which it is
planned to carry out there, specif ically for sugar cane. Exploitation
of the forests, for local saw mills and export, has started again since
January on a monthly ~asis of 7,000 cubic meters.
This progress supposes the existence of ineans of comm~nication. The
Commissariat for Public Works is seeking financing for the complete re-
pair, on Bioco Island, of 50 Km of hardtop roads and, on the continent,
of arterial highways also in hardtop from Bata to Niefang in the north and
from Bata toward Mbini in the south, as well as for the retracing of land
routes. Also planned is the construction of an international airport in
Malabo, with improvement of ground aeronautical installations. Surveys for
these work sites, with preliminary studies if any to be funded by prefinanc-
ing, would constitute advisable procedures for the French firms. The
~oining of Niefang to the�Cameroon network, in the north, and that of Mbini
to the Gabon network, in the south, will translate, moreover, into interest-
ing commercial possibilities for the French firms well established in those
two countries. Socoge, at Malabo, is giving an example of this dynamic
. activity by constructing a brewery of 100,00 [as printed] hectoliters re-
presenting a financing of 800 million CFA.
In the area of oil, finally, about which there is much talk in Equatorial
Guinea, the geological probabilities in lieu of actual drilling arou~e
hope for the existence of deposits offshore [in italics]; Elf-Aquitaine is
to present a research program for which the experience acquired and the
success attained in neighboring Gabon are a solid reference.
However, carrying out of these actions is linked to the interlocutory
settlement of currency problems. The ekpwele is not insolvent. It is
backed by the Guinean property in Madrid, valued at.8 million.dollars, not
taking into aecount certain commercial debts which Macie Nguema had ne-
glected to collect. The brutal import curbs during his administration
reinforced its solidity, which is not put in doubt by the International
Monetary Fund. The simple game of supply and demand tends, however, toward
the devaluation of a curreney theoretically aligned on the peseta, with
respect to the CFA franc. The foreign curreney reserves, satisfactory in
a period of recession, seem moreover to be insufficient to back the indebt-
edness required for the restoration of agricultural and industrial capital -
and infrastructures. What can the government at Malabo do in such a ai-
tuation to guarantee remuneration of their capital to~potential suppliers
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and investors? One of the first measures which can be envisaged, which how-
ever addresses only one aspect of the problem, would be to bring the ekpwele
back to its actual exchange value, i.e., to devalue it by 60.19 percent.
Another solution would be to obtain its free convertibility with the peseta,
by opening an operating account for Equatorial Guinea with the Spanish
treasury, following a mechanism analogous to that of the franc.zone, which
presupposes the agreement of the two interested parties. As far as one can
judge, the responsible offices, besides fearing that such a solution will -
- provoke a certain hemorrhaging of currency, through bringing back to Spain of
Spanish accounts blocked in Malabo, would first like to put their budget
in readiness (that for 1980, not yet published, would only reach the modest
amount of one billion ekpwele) and to assure control of their economie struc-
tures so as to avoid an invasion by foreign firms. Moreover, Spain's view-
point is not known, and what--if the case should arise--its agreement would
provide in return. This monetary problem does not completely paralyze the
rebirth of a country which can always count on subsidies and low-interest
loans from foreign or international public assistance for carrying it out.
But it is a question here less of rebirth itself than of resources contri-
buting to create, with the infrastructures, the means of rebirth. Taking
into account its geographical situation, the range of its production and the
- size of its population, one hardly sees any development possible for Equa-
torial Guinea except through what the Cameroon calls "controlled liberalism."
Without discovery of a wealth of oil, its only choice is between this way
and autarchical retrenchment to the depths of the forest. It is, after all,
because of having chosen the second solution that Macie Nguema is dead.
_ In our issue of 7 March 1980, p 572, we wrote,�on the basis of information
received from generally well-informed sources, that Capt Ela Nzeng, who was -
second vice president of Equatorial Guinea, had been removed from the govern-
ment "probably for~betrayal of trust." Certain sources in Malabo prefer to
speak of "inadaptability" to explain the nomination of this officer to the
post of ambassador to Eeking. We also wrote that Captain Riquesa, today
second vice president, was the prosecutor in the trial of Macias Nguema last
September. He was actually president of the tribunal which judged the former
chief of state.
COPYRIGHT: Rene Moreux et Cie Paris 1980
55 86
CSO: 4400
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GUINEA-BISSAU
CABRAL ON LUSOPHONE TIES, SAHARA, WEST AFRICAN BLOC
LD031133 Paris AFRIQUE-ASIE in French 26 May-8 Jun 80 pp 45-50
[Interview with President Luis Cabral of Guinea-Bissau by Simon Malley
in Bissau: "Fighting Hard To Build Up the Country"; date not specified]
[Excerpts] Simon Malley: As regards the situation in Guinea, what is
the importance of the cooperation which has enabled you to develop the
economy over the last 5 years? With which countries have pou cooperated
uffo_r~yAiy A,,.~ ~hat ~re ~our :aYna for the years to come?
~
Luis Cabral: Our country has always declared its desire to establish
relations of friendship and cooperation with all the peoples of the world.
We were helped by certain countries in the war; after independence, we
naturally continued to cooperate with Che same countriea. Thus the
Soviet Union supplies us with important aid, as much in the defense
sphere ae in auch areas as electricity, commerce and so forth. The same
applies to Sweden, which today cooperates with us in such varied fields -
as rural development, energy, health and transport; similarly, we
cooperate with other countries. such as the Netherlands, France and other
EC countries. We are signatories of the Lome convention, whose imple-
mentation opened up interesting possibilities for our country, notably
in the fields of freight, roads infrastructure and other projects. We
are open to any country wishing to maintain relations with us on the
basis of reapect for our sovereignty and our anticolonialist and anti-
imperialiat position.
Simon Malley: Comrade President, I observe that you have not mentioned
Portugal at all, which is astonishing, given the relations which might
have been achieved after Guinea's independence on the one hand and the
1974 Portuguese revolution on the other. Is this because basically ~
Portugal has for some time been occupying a new position, or because it
has not been able to break away from its colonialist mentality?
Luis Cabral: Portugal is a country with which we have long-standing
relations. After the deatruction of colonialism, we entered afresh into
relations on a new and positi.ve basis. It is to our own and the
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Portuguese ~eaders' credit that we ended tha state of war between our two
countries. We are striving to develop our very fine cooperation for the
benefit of bur respective peoples. This cooperation basically relates
to education and, above all, comm~rce. In our foreign trade P~rtugal is
by far the ma.~or partner.
Simon Malley: You have spoken, Comrade President, of links between
Guinea and certain countries. Some time ago in Maputo, the heads of
state of the former Portuguese colonies met for the second time. What -
is your view of relations and of the future ties which ehould unite the -
five countries of the former conference of the national organizations
of the Portuguese colonies?
- Luis Cabral: These relations are of long standing. They go back to an
age when we orere confronting the same colonialist power, when conditions
were very different. The same struggle caused the development among the
leaders of our cc~untry of relations of confidence based on fidelity to
our African people's struggle for liberation. This representa valuable
capital, which we are striving to invest in the field of cooperation.
_ Much is said about unity in Africa. I think that there are very few
countries in Africa which are similar to us and which possess as great
a st~re of confidence as we do. And I can tell you that in Guinea-Bissau
we are ready to go as far as.possible, as far as my comrades in other
African countries with a Portuguese background, in this field of coopexa-
tion and unity.
Simon Malley: Comrade President, do you believe in the unity of these
countries?
Luis Cabral: I believe in the unity of these countries ~ust as I believe
in African unity. Our unity and cooperation is aimed at the African unity
of which our African political leaders speak.
Simon Malley: Some newspapers say that certain members of these five
countries are more reticent about the idea of creating a gzoup or bloc, _
which would risk difficulties with their neighbors. How do you yourself
envisage the future of relations among the five?
Luis Cabral: I think that the future of any kind of relations between
any countries lies in cooperation. We want to cooperate among ourselves.
That is not to say that this cooperation will be limited only to our
states. If we succeed in crea~tting something of value, each of us would
want neighboring countries adopting the same stances and with the same
concept of cooperation between African countriee to come and ~oin the
initial group.
Simon Malley: The five countriea have very firm anti-imperialist posi-
tions. They stand for true nona.linement, in the positive sense of the
word. In what preci8e areas could this cooperation among yourselves be
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realized: in the economic, cultural or social fielda; or do you equally
envisage that it will embrace the political field?
Luie Cabral: I cannot speak unilaterally. I should not wish to appear
to want more than my comrades from Angola and Mozambique; I can only tell
you that we do want this cooperation and that we are prepared to go as
_ far as possible.
Simon Mall~y: Guinea-Bissau was one of the firat African countries to
recognize the Saharan Arab Republic. What wae your motive in giving this
early recognition?
Luis Cabral: You know that we proclaimed our state during the war. At
that t:Lme, Guinea-Bissau was the sub~ect of the same resolutions by
international organizations which today recognize that the people of the
- Sahara have the right to aelf-determination and independence. Th3s
similarity is an additional motive: The same historical conditions
caused the emergence of our states, of Guinea in the bueh and the forests
of Boe, and of the Sahara people in the desert.
Simon Malley: Everyone knows that Morocco is in a state of total impasse
and that it is threatening to attack Algeria. What would b e your reac-
tion to thia eventuality?
Luis Cabral: We greatly hope that there will be peace in the region.
Algeria and Morocco are two African countri.es with which we have great
friendship. You know what Algeria means to Africa, to people who have
had.to tak. up arms for their independence. Morocco, too, is a counCry
that is very dear to us. It was one of the firat countries to give ue
arms to fight the Portuguese. This gesture causes us to entertain feel-
ings of friendship and gratitude toward the people and government of
Morocco. It is our hope that this spirit, which led Morocco to adopt
- such a progressive position wiCh regard to our people's liberation
struggle, will prevail and perauade the Moroccan atate to recognize the
Saharan people's rights to self-determination and independence and to
inaugurate peace and cooperation among all these regions' peoples. Our
government, with its small means, is ready to do everything to prevent a
confrontation between the fraternal peoples of Algeria and Morocco.
Simon Malley: It is known that your country possesses very limited
resources in all, and this applies to neighboring countries, too. The
idea of development on the basis of regional regrouping is being debated
and discussed. Have you an opinion on this strategic question?
Luis Cabral: I do not think that it is right to look at our country in
isolation. The problem of overcoming underdevelopment can only be viewed
in terms of entities which increase natural resources and p roductivity
among the population. It ia neceseary for underdeveloped countries to
develop real, horizontal cooperation and to emerge united b efore Che
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richest countries in order to end the injustice of economic dependence.
As far as we are concerned, we think that we can do much more to exploit
our rESOUrces, but we certainly do need our international aid. We
receive considerable aid; we can say that we benefit from firm solidarity
with several countries of the world ruled by different regimes. But to
emerge from underdevelopment requires more than international aid. That
_ is why onr government supports all efforts to regroup the countries of
Africa. We supported the creation of the CDAE [as published; expansion
unknown; possibly mieprint for CEAO, West African Economic Community] and
we decided to lend all our support to this community, ta which we belong.
That is why we are helping to bring about true cooperation between
Guinaa-Biseau and, countriee euch ae Angola~ Mozambique and Cape Verde.
Simon Malley: I shoul:d like to ask a final question concerning political
philosophy: Thz socialist world is experiencing an unfortunate division,
which evidently has an adverse effect on the interests of Third World
countries. Essentially it is a question of the division between the
People's Republic of China and the Soviet Union. Having received aid
from both these countries and from certain European countries, how do
you view this problem?
Luis Cabral: We greatly regret this divergence between the countries
which were our friends during our national liberation movement struggle,
and we would state that it does much harm to liberation movements and
sometimes affects the unity of liberation movements in certain countries.
However, it is not for us to pasa judgment on this problem, since that
lies within the province of the co~unist parties. Insofar as we are a
national, democratic and revolutionary party, we endeavor to maintain
relationa with all these countriea. And we encourage rapprochement when
we can, since we think thaC this wi11 h~lp to atrengthen the unity of the
socialist camp ae well as of the developing countries.
Simon Malley: Could the nonalined countries not influence this unity?
Luis Cabral: I do not ~hink that the nonalined counfries have the meane
of exerting the slightest influence on this conf lict. What they can do
is to avoid fanning the flames, and to try through a positive attitude
to prevent a widening of the gap between these countries, which were our
allies during our struggle against Portugueae colonialism.
COPYRIGHT: 1960 Afrique-Asie.
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MADAGASCAR
- BRIEFS
RELATIONS WITH PRC COOLER--Some PRC economic cooperation projects, espec-
ially the building of the Antananarivo-Toamasina highway, were suspended
several months ago. On the other hand, the USSR continues to ship in arms
� and military equipment in exchange for Malagasy coffee. [Excerpt] [Paris
JEUNE AFRIQUE in French 21 MQy 80 p 46]
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RWANDA
BRIEFS
EEC AID--At the end of December 1979, the total volume of EEC aid to Rwanda
was 119.9 million European units of account (11UCE = about $1.40 or 5.86
French francs), that is 13.8 billion Rwanda francs. The amounts of the
first 3 European development funds were totally as subsidies: the fourth
FED (60.1 million UCE) has 4.4 percent loans. For total CEE financing,
the sector allocation (in percent) is: rural development, 35.5; energy,
35.6; roads and equipment, 14.7; education, 11.5; miscellaneous, 2.7. The
main pro~ects f inanced include development of tea plantations creation of
processing plants, electric inf rastructures, extension of distribution
network, road building and modernization, bridge building, building of
educational and administrative buildings. The fourth FED also provided
financing for implementing regional projects concerning besides Rwanda,
neighboring countries, Ruzizi II center (Burundi and Zaire), Butare-Kayanza
(Burundi), Rusunw-Isaka road (Tanzanie, Burundi, Zaire, Zambia) general East -
African tranaportation syetem, s tudy of the extraction of inethane gas from
the Kivu lake. From the EEC, Rwanda benefited by food aid (wheat, flour,
milk powder, butter-oil), supply of vehicles and fuel as gif ts. Finally as
a result af pyrethra export in 1978, Ii~aanda received in 1979 through the
Stabex procedure the equivalent of 609,000 UCE, that is, 75.8 million
Rwanda francs. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in
French 9 May 1980 p 1105] 9018
KIGALI BANK--The balance on 31 December 1979 of the Kigali Bank was alto-
gether 4.6 billion Rwanda francs (1 FRw = approximately 0.05 French franc).
The volume of the deposits and the clients sight and term accounts represented
2.7 billion in hand, the com~itments (portfolio of commercial assets and
advances) amounted to 1.9 billion. Excluded from the balance, the guarantees
supplied for third parties and debtors by acceptances amounted to 1.2
billion Rwanda f rancs. After amortisement for provisions and taxes, the
1979 budget showed the net resul t of 56.3 billion Rwanda francs, for which
the General Assembly of 24 March 80 distributed a 13.50 percent dividend
on a 150 million capital, which is accompanied by 85 million reserve. The
Kigali Bank has as its president Mr Jean-Marie Vianney Nyalihama and Mr
Leandre Degroot is the general manager as Deputy Administrator. The
Kigali office is completed by 2 branches at Ruhengeri and Rwamagana. [Text]
[Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 9 May 1980 p 1105] 9018
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ZAIRE
AGREEMENT ON REFINANCTNG OF BANK DEBT SIGNED
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 2 May 80 p 1048
~
[Text] The Republic of Zaire ha`S announced the signing in Paris on 23
April of an agreement to refinance its syndicated and uninsured bank
debt; i.e., some $434 million owed to 100 banks.
The f inancial arrangements of thjs agreement provide for a term of 10
years with a grace period of 5}ESrs an.:+?~3x interest rate calculated on
the basis of the Libor (London interbank rate) increased by a margin of
1 7/8 percent for the first 5 years and 2 percent thereafter.
Zaire has also made a commitment to pay off the totality of the arrearages
in int erest existing as of 31 January 1980 ($33.6 million) as well as
10 percent oi~ the arrearages in principal ($283 million) as of the same
date. Moreover, during the grace period, Zaire wi11 pay sums representing
14 per cent of the arrearages in principal as of the 31 January 1980 refer-
ence date,
The commissioner of state for finance, Namwisi Ma Koyi, said that the
various actions taken by the government of Zaire, namely the stabilization
program, the agreement with the International Monetary Fund, the placing
in order of foreign financial commitments and the mobilization of foreign
aid have produced positive and encouraging results up to now.
The governor of the Bank of Zaire, Emony Mondanga, also expressed the wish
that this agreement would inaugurate a new phase in the relations between
Zaire and the commercial banks and contribute in a significant way to the _
reestablishment of Zaire's credit.
.
COPYRIGHT: Rene Moreux et Cie, Paris, 1980
8143
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ZAIRE
BRIEFS
FRG MEDICAL GIFT--The Federal Republic of Germany has offered Zaire 11 ~
tons of inedicines worth 300,000 deutsche marks as humanitarian aid. This
medical shipment will be the third delivery of an overall aid pro~ect worth -
3 million marks. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in =
French 2 May 80 p 1048] 8143
FRG PUBLIC TRANSPORTATION AID--The Federal Republic of Germany recently
presented a cooperation proposal to the Zairian executive council involving
the revival of the Kinois Transport Company (STK). This cooperation would
be implemented in two stages: the first phase; i.e., technical coopera-
tion, would consist of the training in Europe of inechanics and administra-
tive cadres, the purchase of spare parts, and the rebuilding of the company's
depot installations. This stage represents a gift from the German govern-
ment on the order of 1.5 million deutsche marks; as for the second phase,
it wi11 consist of the delivery by the FRG to the STK of a loan guaranteed
by the Zairian state for the purchase of 100 buses, 100 motor coaches,
one wrecker, one truck, one jeep and equipment for a mechanical workshop.
However, the implementation of this plan will not be possible unless the
two parties reach an agreement on making the STK financially sound. [Text]
[Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 2 May 80 p 1048] 8143
CANADIAN PAPER PULP PLANT--The ~anadian company, International Baryum
Mining Canada Ltd., will construct a wood exploitation plant in Mushie,
in the Bandundu region. This plant w311 employ about 150 persons, aad its -
cost is estimated at $7.5 million. During a second stage, the company
reportedly intends to invest $20 million to install a paper pulp manufac-
turing plant which would employ 750 workers. [Text] [Paris MARCIiES
TROPICAUX ET MEDITERRANEENS in French 2 May 80 p 1048] 8143 -
COFFEE TRANSPORT--Guidelines for the transport and export of coffee are
the sub~ect of a circular issued 6 March 1980 by the Zairian Coffee Office
(OZACAF). According to the text of this circular, it is mandatory for
all coffee destined for export to pass in transit through OZACAF warehouses
or through warPhouses specially designated by the office for this purpose.
Samples wi1Z be taken exclusively in these warehouses. Designated ware-
houses, other than those of OZACAF, have been placed under the joint
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control of the owner and OZACAF. All coffee is warehoused in such placea
pursuant to the mandatory in transit regulations. With a view to assuring
the quality of Zairian coffee on foriegn markets, OZACAF inay impose certain
procedures upon plants which prepare coffee for export. OZACAF inakes
sales contracts available to exporters. Proposals for contracts to be
concluded between exporters and forej.gn buyers will be submitted to OZACAF
for prior review. The office reserves the right, within a 24 hour period,
to designate to the seller a buyer offering a higher price, with whom the
exporter wi11 get in touch to conclude a contract on the new bases of the
price offered. A deadline of 24 hours is given th e new buyer to confirm
to the seller his firm and definitive offer. Except in the case of with-
drawal of the new buyer, OZACAF's counterproposal excludes any possibility
of renegotiation on the part of the buyer proposed by the seller. These
regulations were adopted to assure the interests of the state and exporters. ~
[Text] [Paris MARCHES TROPICAIIX ET MEDITERRANEENS in French 9 May 80
p 11~0] 8143
COOPERATIONS WITH FRENCH C01~'ANY--It is knnwn that last year the French
Geological and Mining Prospecting Office (BRGM) purchased the 28 percent
share held by Amoco Minerals in ~he Tenke-Fungurume Mining Company (SMTF),
which made the BRGM, with 34.4 percent of the capital, the principal
stockholder of the SMTF, along with the Zai.rian government (20 percent),
- Charter Consolidated (28 percent), Mitsui (14 percent), ?'empelmans and
- Sons (3 percent) and OMNIMINES [expansion unknown] (0.6 percent}. (On
this subject see MARCHES TROPICAUX ET MEDITERRANEENS dated 20 July 1970,
p 2054). Reportedly it is now a question of the General Company for Nuclear
Materials (COGEMA, an exploitation subsidiary of the French Commissariat
for Nuclear Atomic Energy) buying the shares of the BRGM, which would give
_ the COGEMA the possibility of diversifying its activities, up to now
centered on uraniinn (particularly in Niger), by participating in the ex-
ploitation of a high-yield copper deposit of exceptional size: Tenke-
Fungurume in fact is said to have about 3 million tona of copper metal
and 320,000 tons of cobalt. [Text] [Paris MARCHES TROPICAU'd ET MEDITERRANEENS
in French 2 May 80 p 1048] 8143
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