JPRS ID: 9386 SUB-SAHARAN AFRICA REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000300050006-7
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 36
• Document Creation Date: November 1, 2016
• Sequence Number: 6
• Content Type: REPORTS

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FOR OFFICIAL ~SE ONL1~'
JPRS L/9386
7 November 1980
Sub-Saharan Africa Re ort
p
FOUO No. 696 `
Fg~$ FOREIGN BROADCAST INFORMATION SERVICE
FOR OFFiCIAL L1SE ONLY
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NOTE
.7PRS gublications contain informat-ion primarily from foreign
nEwspapers, periodicals and books, but also from news agency
transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.
xeadlines, editorial reports, and material enclosed in brackets
are supplied by JPRS. Processing indicat~rs such as ['fext)
- or ~Exc~rpt) in the first line of each item, or following the
last line of a brief, indicate how the original information was
processed. Where no processin~ indicator is given, the infor-
mation �aas summarized or e~tracted.
Unfami~iar names rendered phcnetically or transliterated are
. enclosed in parentheses. Words or names precedeci b;~ a ques-
tion mark and enclosed in parentheses were not clear iti the
original but have been supplied as appropriate in context.
Other unattributed parenthetical notes within the body of an
item originate with th.e source. Times within items are as
given by source.
The contents of this publication in no way ~represent the poli-
c ies, views or attitudes of the U.S. Government.
COPYRIGHT LAWS AND R~GLTLATi~tdS GOVERNING OWL~IERSHIP OF
t~fATERIALS REPRODUCED HEfi'EI?1 REQUIRE THAT DISSE~IINATION
OF THI~ PUBLICATION BE RESTRICTED F~R OFFIC IAL USE ONI.Y.
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JPRS L, ~ :~86
7 Noven,c f~r 1980
SUB-SAHARAN AFRICA REPORT
FOUO I~o . 696 ~
- CONTElVTS
~
INTER-AFRICAN AFFAIRS .
Briefs
Angola-Zaire Trade 1
Dji~outi-Tanzania Air Agreement 1
CENTRAL AFRICAN REPUBLIC
President Dacko Addresses Nation; Visits France
(MARCHES TROPICAUX ET MIDITERRANEENS, 26 Sep 80).........
Briefs
Relief �or Birao 4
CHAD
Fighting in Capital Intensifies
(MARCHES TROPICAUX ET MEDITERRANEENS, 26 Sep 80).........
CONGO
Central Committee Luoks Ir~to Improving Economy, Finances
(MARCHES TROPICAUX ET MEDITERRANEENS, 12 Sep 80)......... 6
Economic Prospects Improving Because of Contributions of Petroleum '
(MARCHES TROPICAUX ET MEDITERRANEENS, 3 Oct 80).......... 9
Briefs
Conference on State Enterprises 14
EDF Financing of CFCO li, ~
DJIBOUTI
Data on Port of Djibouti
, (MARCHES TROPICAUX ET MEDITERRANEENS, 19 Sep 80)......... 15
- ~ - [II~ - NE & A - 120 FOUO]
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LIBERIA
Briefs
Pxoperty Expropriation Measures i6
- Good Relations With France Restored 16
� Good Relations With EEC Restored 16
MOZANIBIQUE ~
State of Economy, Need for Western Expertise Surveyed
(Jacques Latremoliere; MARCHES 1'ROPI:;AUX ET MEDITERRANEENS,
~ 26 Sep 80) 17
NIGER
Briefs
Southeastern Stockraising Project 24
' Food Crop Area Expanded 24
NIGERIA .
Briefs
Police Development Pro~ect 25
Czechoslovak Aid 25
~ Exchange Reserves Increase 25
Higher Inflation 26
Population in Ibadan 26
Oil Agreement With India 26
Kaduna International Fair 26
Ibadan Trade Fair 27
S EN~.GAL
Briefs
EEC Delivering Food Aid 28
Z~1IRE
Briefs
Petroleum Production 29
Report on Mines 29
- Belgian Electricity Contr~~t~ 29
- Oil Prespectir.g 30
- Inga-Shaba Electric Line 30
Small Powerplants 30
FRG-Financed Roads 30
Continued FRG Support 30
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INTER-AFRICAN AFFAIRS
- BRIEFS
ANGOLA-ZAIRE TRADE--During the trade negotiations wh ich took place in
Kinshasa at the end of July, Zaire and Angola selecte d products for trade
between the two countries. Angola will import 2000 tons of palm oil,
soap, batik cloth (500,000 meters), bedsheets, 4,000,000 metera of khaki
cloth, bicycles and furniture from Zaire. Zair~ would import from Angola
crude or refined salt, crude petroleum and derivatives, tar, gypsum, steel
r~inforcing bars, molassas, sisaZ fiber, tiles, cement, dried fish, fish
flour, and sacks in which to put cement. [TExt] [Paris MARCHES ;ROPICAUX
ET MEDITERRANEENS 19 Sep 80 p 2303] 63.08
DJIBOUTI-TANZANIA AIR AGREEMENT--A bilateral air trans portation agree~ent on the
use of the international airport of Djibouti was signe d on 11 Sentember 1980 ~y
Djibouti civil aviation officials and a TanLanian dele gation headed by Mr
- Oleikambeine, director of transportation. [TextJ [Pa ris MARCHES TROPICAUX ET
MEDITERRANEENS in French 19 Sep 80 p ~307] 9479
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CENTRAL AFRICHIv REPUBLIC
PRESIDEIdT DACKQ ADDRESSES ~1ATION; V~Sa.'~S FRANCE -
Paris MA..~CHLS TROPICAU% ET M~;DITERRPL'~~LNS in Fr�nch 26 Sep $0 p 2363
[Text] On the occasion of the first :~ren3.versary of the coup d'etat organized by
~ France t~ overthrow the impQrial reg3mU i:~ Central Africa, President Dacko addresserl
the natia*~ and paid honage to the "ms.rtyrs whose b1QOd permitted the downfall of the
empire." -
Addressing rhe youth sector, David Jackr, said that it was the hope of the new repub -
lic. The chief oi state also reite~ateri the gratitude of Central Africa vis-a-vis
. friendly countr:Les and above all Frar.ce whose "decisive aid restored di~nity to the
Central Africans and whose assistance o~rnii_Zted the surmounting of the difficulties
of this first ve~.r of ef�orts."
"In the coming 12 mor_ths, after 15 years of ~ilence, you will be called upon to
express wir.h complete freedo~~ your ~pinion of the structures of our renewed repub-
lic," said the chief of state who reported that a draft Constitution had been pre-
pared and that the definitive text drawn up uy the government would be presented
for ratification. "You will next have the ~,~;portunity of electing the president
' of the republic whom you will charge with :1~a.ding the nation, and you will elect -
the members of the National Assemuly."
President Dacko said that the governmexit`s principal problem was that of. the present
financial crisis. He asserte3 that the gavernr~~ent was forced to implement a aeries -
of ineasures designed to eliminate ill-con~idered expenditures, r_o lim.it waste.
"With the generous aid of the United Nationa, i.n tha firat place, of Frauce and
the International ASonetary Fund, we have been able to avoid state bankruptcy; how-
_ ever, we are going to have some very diffic.uit ~noments unril *_he end of the year,
as with the pr~parations of the 1981 budget."
The following 3ay, the president traveled to Yar~s for a private visit c~uring which
he wa.s to be received at the Elysee by Giscard d'Estaing to whom he had sent a
letter of thanks o~~z the occas~on of the first anriiversary of. the restoration of the
republ~c. This visit took place at a ~ime when the Centr~l African chief of state,
who had placed h.ts prime minister and vice president un.der surveillance, was rela~-
tive:Ly isolated in his country.
When he left the Eiyses, on 21 September, D~icko said that he was "distr.es~ed by the
campaign of denigration" of which his country is the subject and ~�e "publicity
2 ~
Fnn n~~Trrnr :rcr nnnv
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r~cc vrr~~irw uac Vi~LI
given to former Emperor Bokassa by French journalists." The Central African chief
of state recalled that he had seized power to drive out Bokassa, "account taken of
- the crimes he had committed." He added that he had told the French president of -
the "distress" caused him by this press ca~paign and confirmed the fact that the
_ in absentia trial of the former emperor would be held in November in Bangui.
COP~RIGHT: Rene Moreux et Cie Paris, 1980
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CENTRAL AFRICAN REPUBLIC
BRIEFS
,
RELIEF FOR BIRA(~-After having declared the city of Birao, prefecture of the Yakaga
regior. (in the northern part of the country) a"disaster area," the Central African
authorities took a series of ineasures to "rehabilitate this region where rampant
famine has already caused the death of 100 persons." The principal taken measure
was the dispatch of a military detachment. Food will be sent to the Birao region
on an emergency basis by France, according to a communique published by the Elysee
in Paris on 18 September ,ahich underscores the fact that tl~is aid is being provided
at the request of the president of the French republic and to show "France's soli-
darity with respect to this stricken region.�1 Questioned about the famine which
was ravaging the Birao area, President Dacko in Paris on 21 September said that tiie
situation would not be critical over the long term and that a plan for the develop-
ment of the region was under study. [TextJ [Paris MARCHES TROPICAUX ET MEDITERRANEENS
in French 26 Sep 80 p 2363] 8143
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CHAD -
FIGHTING IN CAPITAL INTE":SIFIES
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 2o Sep $0 p 2363
- [Text] Very heavy fighting which produced several hundre~ wounded and many dead
both on the side o: the combatants and the civilian population took place on 17
and 18 September in Ndjamena between the Popular A;ceied Forces (FAP) of Presi~ient
Goukouni Weddeye and the Northern Armed Forces (FAN) of Aissene Habre.
`
According to observers, this tighting reached a level of violence rarely equaled
since the beginning of the battle of the ca~ital on 21 March 1980. At dawn on 17
Septenber, Goukouni Weddeye's FAP and the combatants o� the Common Action Front
(FAC) of Ahmat Acyl, minister of foreign affairs, attacked the northern sector ef
the city of Diguel. At the same time, the African city occupied by the FAN was -
violently bombarded, particularly with Stalin mis~iles, according to th~e AFP.
, The French surgical facility in which FAP and FAC combatants are treated received
about 40 seriousl}~ wounded (an unprecedented figure) in the course of those 2 days.
- The other Freach medical facility in Kousseri, in Cameroon, on the c,ti~er side oi
the Chari River opposite Ndjamena where the FAN are received, treated a dozen
wounded, including five combatants.
ShQ].ls fired from the Chadian capital fell on the Kousseri hospital in Cameroon
killing four persons and wout~ding eight others, Radio Yaounde announced on 22
_ Sc,tember, a3ding that this shelling had caused very serious material damage.
~ The Cameroonian government "sent forceful protests to the various parties fighting
in the Chadian capital. and took steps to assure the security of the inhabitants of
Kousseri."
_ In a related development, it was learned that the ~hadian government has signed a
US ~50 million contract for the purchase of military aircraft, tanks, trucks and
British medicines with Flintbrange Ltd., a Britisn company which is a subsidiary
of the Fanz Organization, a oroup founded and directed by the Nigerian chief,
Francis Nzeribe.
- COPYRIGHT: Rene Moreux et Cie., Paris, 1980
- 8143
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COt?GO
CENTR:II. COMMITTEE LOOKS INTO IMPROVING ECONOMY, FINANCES
Paris MARCHES TROPICAUX ET riEDITE1tRANEENS in French 12 Sep 80 p 2251
[Text] The fourth session of the Central Co~nittee of the PCT [Congolese Labor
Party],the only Congol.e~g~party, which was held in Brazzaville from 9 to 14 August
1980, studied improvements in the economy and finances of the People's Republic
of th e Congo .
In the final cotamunique of the meeting, the Central Committee reported on the cur-
renr. situation: -
Improvement in the Management of Publ.ic Finances
"'~Ihen it studied the implementation of the supplementar}� 1980 program, ri~e Central
Committee noted some favorable factors. Indeed, the continued spirit c>f sacrifice
by the workers and various ecoziomic agents who regularly and unselfishly contri.-
buted to the nati.onal solidarity fund, plus improved tnanagement of publi.c: finances,
increased resources and finally, the renewal of external credit by the sGate made
regular payment of ~oages possible and gave the Ministry of Plans the nec~~ssary
means to implement the development p rogram.
"Tlius, as of 30 June 1980, the scate's overall resources amounted to 7t) ~~ercent -
or the total estimate for the year. However, publ:ic firms must show g~-e~ ,ter dyna-
mism in using programmed foreign credits, all kinds of. natiunal financiul credit
and especially domestically ~enerated financi.ng.
"Indeed, many offices do not know the necessary proced~res Ec>r. carryin~ ~ut a pro-
ject successfsilly (study, work pla,nninp� choice of a foremari, submitting bids,
etc.), that, plus details on management of funds, the conference on stat:f~ enter-
prises, the limited scope and underequipped state oE :nany fic-ms responsivle for
projecCS remind us that, as of 30 June 198U, the program had, in fact, only been
in effect four months. Thus, Che rate of actual achievement is necessar:~_ly lielow
that o� the financial investr.;~nt.
"ThereforP, the Central Committee advised, ~~he~ever there wet-~~ no such procedures,
sp~ci_fic program planning and systematic, rigorous supervision to adhere to the
plans as much as possible.
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"The tes~ year will interest all closely or marg~na'.1y connected, no n~tter what
the stage of implementation of the program, an;l es;,~cially officials and ;~olitical
cadres, administrative and public sector cadre~:, z-~d privat~_ foreign or native _
entrepreneurs who have benefitted on occasion from st:te contracts.
"Consequently, the Central Committee warns entreprene~rs who do not fulfill tlleir
obligations that they will be systenatically disbar.red frmm future bids or consul-
tat ions .
"In ;:.enclusion, the Central Committee felt that despite certain advantages and ri
good start, the success of the 1980 program ~iill depend, above all, un increased,
sustained productivity, professionalism and growing vigor in supervising tasks at
all stages of their executi~n."
Priority for Investment Expenses
"The Political Bureau informed the Central Committee about the financiai outlouk _
f~r the 1981 program. This report revealed that, despite an appreciable increas~-
in our resources, the state budget suffers from a structural. defect; the operat.~..c,
expenses are much larger than investment expenditures which can only be financ~~
by the remainder of the resources, thus limiting the possibility of creating new
j obs .
"Taking into consideration the lessons of the recent experiment, the Central Com-
mittee refused to sap our resources again in an unthinking increase of the wage
mass at the expense of financing development; this is all the more true since its _
� priority is to hire all young cadres sent to it for training.
"However, to assist the mass es in dealing with inflation and the ever-eroding buy-
_ ing power of households, the Central Committee which is pleased at how enthusiasti-
cally the people continue to heed the advice of Presi.dent Denis Sassou-Nguesso:
'Live austerely today to live better tomorrow' has unanimously agreed on the
following govern~c:~cal guidelines:
"1. Abolition of the national solidarity fund.
"2. Restoration of promotions with pay increases.
"3. Tax relief in the form of changes in tax rates on the income of individuals
(IRPP).
"4. Hiring young cadres for tra~ning. _
"These directives will become officia.l in the next Law on Finances and will go into
effect on 1 January 1981.
"Finally, the Central Co~ittee gave thePolitical Bureau the responsibility for
doing an in-depth study on ways to overcome the current above-mentioned tendencies
and how to:
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"1. give priority to investment expenses so they are no longer a res idu~ or re-
maiacitr and, after that, :.'�ter~ine the amounC to be spent or. operating e~c~~enses;
"2. implement a true development plan to create jobs outside the civil.:::~rvice.
All t hese decisions and guidelines based on the data of the report of tt~~ Central
Commission on Party Supervision and Verification allow the Central Committee to
stres s again the importance and need for control by cadres of the structures of
the party and state placed in their cha~ge, fvr a constant effort at disc ~pline -
at all party levels and for better relations among the various bodies of ttie party
and t he state."
COPYRIGHT: Rene Moreux et Cie Paris, 1980
9479
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C CO
ECONOIdIC PROSPECTS ZI~ROVING BECAUSE OF CONTRIEUTIONS OF PETROLEUM
- Paris hIARC~IES TROPICAUX ET MEDITERRANEENS in French 3 Oct 80 pp 2402-2403
- [TextJ On 3 October, the People's Rept~blic of the Congo celebrates the 100th
anniversary of the founding of Brazza~~ille. The date chosen corresponds to the
anniversary of the signing, in the village of r!fa at the mo~~th of the Mfoa, a
_ waterway that flows through the Congolese capita.l, of a treaty betw:~en Brazza an~
the Makoko Ilo grantiag France ~ territory situated between the O~ooue, ~he Alir
and the Congo. On this occasion, we thought iz woixld be fit*_ing to provide our
readers with a picture of the Congolese economy, which ewphasizes both the difli-
culties encountered by enterprises and the hope.~ placed in the o:.~ sector.
Impact of Oil
With production of crude rising fror~ 1.8 million tons in 1977 to 'L.4 million in
~ 1978 and 2.d million tons in 1979 (plus 1.5 billion cubic meters of ratural gas),
oil is the essential element in the recovery of the Congole~a ec:onomy.
The ~radual drilling of new wells on deposits discovered 'ooth offshore and on land
points to crude oil production exceedin~ 3 million tons by 1980, nearly S million
tons in 1981 and 8~illion before 1990. An investment program on the order of
100 billion CFA fran cs has been planned by ELF-Congo [Gasoline and Lubricants
Company of France].
Both becauae of increased production and successive price increases, oil r.oyalties
~ have gone fram 15 b illion CFA francs in 1978 to 20 billion in 1979. Estimates for
1980 are put at 40 b illion, representing three-fifths of operatin~ budget receipts.
A contract f or the rehabilitation and startup of the Pointe-Noire refinery was
_ awarded in February to the engineering firm Technip. Tne refinery, which was to
go into service in 1975 with a prucessing capacity of a million tons of crude oil
~ yearly, has never operated. Its cost represents 34 bi,ll.ion CFA francs, including
7 billion actually paid to the Belgian-Austrian consortium that built the unit.
: The litigation was h eard before the Court of Arbitration of the International
Chambf_r of Commerce in Paris, which ruled against ehe consortium in .lanuary.
The search f or uran ium ore led to an agreement with AGIP Recherches C~ngo [Italian
- Petr~leum F.nterprise Research oi the CongoJ for prospecting in the southwestern
- region of the territory.
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Transportation
In 1979, traffic at the public port of Pointe-Noire amounted to 3.4 million tons,
up 21,6 percent over 1978. The port has enjoyed increased s;~ipments of manganese
ore from th~ Ogooue Mining Company (COMILOG),which, mined at Moanua in Gab on,
- is hauled by the Congo-Ocean Railroad and shipped out at Pointe-Noire. Some 2.3
u~illion tons were shipped in 1979 (up 36 percent over 1978).
The improvement ir. oil production is reflected in. traffic at the Djeno terminal,
whe re shipments totaled 2.7 million tons (up 13 percent).
, River traffic continues to decline since 1977. In 1979, traffic going downstream
totaled only 135,000 tons (down 8.6 percen*_), including 123,000 tons of lumber
floated or taken by barge from the north. River equipment remains inadequate.
The ten barges lost 197R have never been repla~ed.
Besides the Gabonese manganese ore, goods hauled by the Congo-Ocean Railroad (CFCO)
- totaled 1.1 million tons in 1979, down 5 percen~ from 1978.
Industry: Some A~iaptation ~
In the private industrial sector, 1979 was far from good but does show some adapta-
~ tion regarding the many difficulties: the accumulation of holidays, absenteeism
reaulting from trade union demonstrations or other unforeseen occurrences, breaks
in the supply of water and electricity, particularly at Pointe-Noire, inadequate
- telephone and telex connections, the absence of price index statistics, the lack of
off icial in~~rmation, the suspension of publication of the JOURNAL OFFICIGL since
1974, increased labeling and in~pections by the administration, and the disorgan-
_ ization of transportation, mainly the Congo-Ocean Railroad, which had 42 interrup- ,
tions in service (553 hours) in 1979.
Enterprises whose production is subject to price fixing and controls have encoun-
tered er.cessive ~elays in having price readjustments imposed by constantly increas- ~
ing prices for raw materials, energy, transport, services and social charges accepted.
For export industries in LTDEAC [Customs and Economic Union of Central Africa] coun-
tries, the burden of charges to the disadvantage of the Congo places them in an
inf erior position compared with Cameroon in particular. Moreover, the increase in
similar industries within UDEAC, contrary to the program initially agreed upon,
limits markete for Congolese export industries to the damestic market alone, .
_ Domestic demand i~ increasing very slowly and consequently, expansion of the indus-
trial sector, the main supplier of _jobs, is clearly inadequate,
- While breweries have registered in�reased sales, profits are low because of frozen
prices and difficulties in having them raised, despite the higher cost of basic
supplies. The new facilit~!es of the Kronenbourg Breweries went into service in
April 1980. Investments represented 2.7 billion CFA francs for a capacity increa~ed
to 200,000 hectoliters of beer and 100,000 hectoliters of soft drinks per yeax.
The Brazzaville Brewery is using its full production capaeity and a 5-year expansion
pro gram costing a billion CFA francs will increase its capacity to 360,OOU hecto-
liters per year.
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Industrial deepsea fishing had a catch equivalent in tonnage to that of 1978, but =
- sales prires have dropped by about 10 per^ent. Prospects ror 1980 are very un-
favorable because of the higher cost of fuel and the impossibility of fishing
� in the south (Congc River and Angola) for most boats, as in the pasL. '
In the northern region, lumbering improved. The high cost of the Congo-Ocean ~
Railroad caused an excessive accumulation of stock and tight finances for the
main enterprise. Service of the CFCO improved clear?y beginning in November 1979.
The Con~o Plywood Company (PLACONGO), 25 percent of which is owned by the Congolese _
Government, had to reduce its production af rough timber and production of plqwoo:;.
Investments made since 1977 amount to 1.2 billion CFA fraacs.
After the shutdown of the Congoles~ Textil� Company (S01EXC0) in 1977, tne textile
branch has had only the Congo Printing (IMPRsCO) unit, in which the Congolese
Government holds 30 percent of the shares. Production has 5teadily increased _
since 1975 and totaled i5.3 miilion meters of fabric in. 1979 (up 11.8 percent over
- 1978), for a turnover of 4.8 billion CFA francs. Exports totaled 11.5 percent of
the fabric printed (16.5 percent in 1978), inasmuch as local demand has been more
sustained.
_ T}le shoe sector is represented only b~ Bata-Congolaise, whose Pointe-Noire plant
produces some 750,000 pairs a year, or half o~ the potential capacity. In 1979,
the enterprise suffered from a prolonged strike, a drop in purchasing power of the
' population, interruptions in the supply of water and electricity and irregular _
~ayments on the part of civil ~ervant customers~
With a production capacity of 60 million packages of cigarett~s a year, the
Industrial and Agricultural Tropical Tobacco Company (SIAT) produced 31 milli~n
_ packages of cigarettes in 1979 (36 million in 1978), for an untaxed turnover
of 2 billion CFA francs. ~xports to Gabon, the Central African Republic and Chad
have declined. ~
The Congo Glass Company (SOVERCO), built in 1968 by English firms but which had -
- never gone into operation, was rehabilitated in May 1979 with ti-~e technical assis-
tance of Sa.in.t-Gobain. Production in 1979 was on the or,ier of 12 million bottles.
- Estimates for 1980 total double that amount, with three-fifths exported to the
Iyory Coast, Togo, Gabon and the Central African Republic.
ALIICONGO, a subsidiary of ALUCAM [Cameroon Alumininum], produced articles worth
. 768 million CFA francs (up 29.8 percent in 1~78). Exports to UDEAC countries and
- outside UDEAC amounted to 17 percent. The enterprise suffered in 1979 from inter-
ruptions in electricity, transport difficulties and a lack of railroad cars to
Brazzaville, and increased unpaid 'viils of custamers.
These same difficult~es affected the production of industrial gases: down 4.6
- percent for acetylene, although oxygen production roae 7.2 percent. The drop com-
pared with 1976, a year of good industrial activity, amounts to 33.6 and 22 percent _
respectively.
Paint production, which in 1978 dropped 35 percent in volume, was better. Predic-
tions for 1980 are relatively favorable.
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Commerce
_ On the whole, commerce, which has suffered the effects ~f the serious depression of
the national economy for 3 years, did not show any recovery in 1979 for the same
- reasans: declining purchasing power of the population, irregular payments
by civii servanta and deteriorating credit because of the abaence of. any prosecu-
= tion or punishment for the issuancP of checks with no funds.
The distribution, entrusted t~ a stat~ organization with an import monopoly, and
marketing of basic commodities and items werP particularl5 deficient and e~en
totally paralyzed sometimes with respect to flour, sugar, cQment, oil, livestock
feed, and so ~n.
.
- Beginning in the s~cond half of 1979, the situation of private com:nerce improved,
a recovery that seems to have gained in strength since April 1980. Enterprises
generally suffer from insufficient funds because of tax adjustments, social and
ban'~ charges and unpaid debts.
The automobile vehicle ffiarket was stagnant in 1979 compared with 1978 and down
24 percent compared with 1977. Tourist vehicles represented 53 percent of the
- market; utilitarian v~hicles 47 percent. Japanese brands continued to make progress
and in 1979, accounted for 46 percent of the Congolese market. Dealers complain
- of thefts and looting during transport. The replacement of accessories increases
~ the cost price of the vehicle and delays delivery.
An important contract for the suppl;~ing of 208 buses, costing 3.5 billion CFA francs,
was obtained by the Spanish firm Pegaso. Ttie equipment will go to Brazzaville,
Pointe-Noire and Loubomo. The first deliveries are to be made in October 1980
for the celebration of Brazzaville's centennial.
- Building and Public Works: Recovery
The building-public works sector has enjoyed a substantial recovery beginning in
the second half of 1979, p3rticularly in Pointe-Noire, which has received the
- benefits of oil investments. Nevertheless, activity is hindered by the scarcity
of cement. It would appear that tha construction market in the Congo is too small
for major enterprises.
Since the dissolution of the Congolese Housing Office, which financed, built and
managed social housing, the sector has been in the hands of four government organ-
izatio:~s: the National Construction Company (SONA:.O), which has had Cuban aid
since 1979; the Property Promotion and Management Company (SOPROGI); the Center
for Housing Re~earch and Technical Studies (CRETH) and the Construction, City
Planning and Housing Directorate. The first program deals with the construction
of 300 housing units, 12 of which were delivered at the end of December 1979.
State Enterprises
According to the view of high-ranking officials, difficulties in the state indus-
trial sector result from poor management, the inertia of the tutelage structures,
the lack of discipline, disorder, a lack of unawareness, casual attitudes and
deviations in the action of political and trade union organizations.
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Although exact information is not available, the debt of state enterprises is of.fi-
cially put at over 88 billion CFA francs, not ir.cluding guarantees supplied by the
_ government on the order ot 79 billion CFA franc~. From 1976 to 1979, direct bt~dge-
tary balancing subsidies exceeded 8 billion CFA francs and treasury aid amounting to
6 billion CFA francs was awarded en a foreign loan.
On 1 January 1980. the National Aviculture Company (SONAVI) was set up in Loubomo,
' bringing together all state poultiry fai~ns, most of which have ceased operating
for several years. The new company receives Cuban assistance and predicts a
turnover (eggs, chickens and baby chicks) amounting to 200 t~~~l~ion CFA francs by
1980, which figure would increase to 478 million by 1981 and 745 ~~illion in 1982.
The Dihesse Ranch Office in Loudima, set up in ]974 with financi:~g from tha World
Bank, contirues its development: 10,000 head of livestock are expected by the end
of 1980. The second phase of the projeet (35,000 head in 1983) will be modified
into small livestock raising operations in rural areas.
A project to rehabilitate the industrial manioc processing camplex is underway
with the repair of the xoot line (5,000 tons per year) and the setting up of a
bread flour line.
In 1979, banking activity had two very distinct periods: The first 6 months w^re
affected by the slowdown of the economy and the second half of the year was marked
, by the economy's beginning recovery.
Oil taxes provided the budget with a steady supply of funds and resulted in the
recovery of pub~ic finances. Government officials were once again regularly paid.
Support for public enterprises.and the large number of employ~es in public ar.d para-
public service pluced a burdEn on previous budgets. In his message at the end of
the year, the chief of state said that the foreign and domestic debt had become
overwhelming: It is estimated at 250 billion CFA francs. Measures have been taken
and agreements have been made with foreign lenders, particularly the IMF.
The program to get production off to a new start, the reorganization and rehabili-
tation of state enterprises and the completion of eqaipment projects halted in
midstream should enable the Congo to resume its development in a healthier financial
situation, thanks to oil royalties.
COPYRIGHT: Rene Moreux et Cie Paris 1980
11,464
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- CONGO
BRIEFS
CONFERENCE ON STATE ENTERPRISES--On 21 September, in Brazzaville, Col Sassou-Nguessc~
- presided at the ceremony reopening the Congo state enterprises' conference which
_ started last January. In a brief speech, the chief of state said that it was neces-
sary "to more clearly define the problems of the enterprises" and emphasized the
need for being more precise during this conference resumption pEriod. He added
that the question was one of "finding remedies for the uiling enterprises." Col
- Sassou-Nguesso also said that it was necessary to take steps to permit the recovery
of the enterprises and that "every error in this second phase will have incalculable
cons~quences for the future of the Congo." The work of this second phase of the
conference is being chaired by the prime minister, Col Louis Sylvain Goma, who is
also president of the permanent committee of the state enterprises' conference.
_ [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 26 Sep 80 p 2364) 8143
- EDF FINANCING OF CFCO--The cammittee of the ~uropean Development Fund (EDF) has
given a favorable opinion on a grant of 4 million units of account and a special
loan of 2.86 million European currency units for the supplementary financing of
the realinement of ttie Congo-Ocean Railroad. [Text] (Paris MARCHES TROPICAUX ET
MEDIiERRANEENS in French 26 Sep 80 p 2364J 8143
C50: 4400
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� ~ -
DJIBOUTI
DATA ON PORT OF DJIBOUTI -
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 1~ Sep 80 p 2307
r [Text] On 16 August 1980, the Council of Ministers ~f t:1e Republic of Djibouti
approved the creation of, and the statutes for an autonomous international port
at Djibouti, effective 1 January 1981.
To ur,derstand the scope of this measure, we are pub lishing below a br~~f list of
Djibouti port activities for t`~. last two years:
1978 1979
Ships docked (number) 1,267 1,182
Net tonnage (1,000 tons) 5,826 7,728 -
Passen~ers embarked 1,000 871
Passengers debarked~ 1,283 1,152
Total hydrocarbons loaded (1,000 tons) 302 343
Total hydrocarbons unloaded (1,000 tons) 42/ 508
Total hydrocarbons re-exported (1,000 tons) 38 17 4
Merchandise loaded (1,000 tons) 125 120
Merchandise unloaded (1,000 tons) 270 250
' Transshipped merchandise (1.,000 tons) 55 16
~ " t-F~r. supplied to ships (1,000 tons) 147 117 `
i� 1979, the port's profits were only 36.1 billion DE [Djibouti francs] while in
1978, they amounted to 157.3 million (1 DF equals 0.025 French francs). Receipts
which amounted to 902.9 million in 1978 dropped to 860.3 million in 1979. Yet,
from 1978 to 1979, costs rose from 745.6 million to 8Z4.2 million although capital
outlays drepped from 86.4 million to 65.9 million.
A study of port improvements was completed in 1980 by BCEOM [Central Study Office
for Overseas Equipment]; it was financed by the EDF [European Development Fund] at
a cost of 65 million DF �or the master plan and by the FAC [Aid and Cooperation
FuudJ at a cost of 15 million DF for a container terminal. Construction work on
the latter has not yet begun. The cost is estimated at 2 billion DF, of which 500
million coill be financed by the Federal Republic of Germany (for the purchase of
Krupp cranes); financing by Kuwait is under consideration.
Saudi Arabia is expected to provide 318 million DF for the construction of a 15,000
cubic meter refrigerator warehouse.
COPY KIGHT: Rene Moreux et Cie., Paris, 1980
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- LIBCRIA
BRIEFS
PROFERTY EXPRGPRIATIO~i MEASURES--The r ~ple's Council for the Redemption of Liberia -
announced on 24 September tne expropriation of property of about 20 officials of
= the old regime who had fled abroad and not answered the ultimatum to return to Liberia
by 16 September (see MARCHES TROPICAUX ET MEDITERRANEENS 19 Sep 80 p 2298). Only one
person is said to have replied. Among ihe people affected by the measure are: the
former vice-president, Bennie D. iUarner; the general se~retar.y of the True Whig Party,
which ~as then in power, Mr C"tarence L Simpson; and four former ministers. [Text]
[Paris yIARCHES TROPICAUX ET ?~IEDITERRANEENS in French 3 Oct 8~? p 2423] 8782
GOOD RELATIONS WITH FRANCE P.~STORED--The charge d'affaixes of the Liberian embassy
in Paris proposed on 18 September the establishment of a Franco-Liberian investors' -
association. Tfiis initiative confirms Liberia's desire to keep good relations with
France, as expressed on 21 3une by the foreign affairs minister, Mr Gabriel Bacchus
_ Matthews (see MARCHES TROPICAUX ET MEDITERRAIv'EENS 27 Jun 80 p 1629). Also noted was
the declaration made by the charge d'affaires a few days before the private visit to
Paris of the minister of Planning and Economic Affairs, Dr Togba Nah Tipoteh. It
may be recalled that Franco-Liberian relations became s~rained following the kidnap-
ping from the French embassy in Monrovia of the eldest son of former President Tolbert, -
Mr Adolphu~ Benedict Tolbert, who had taken refuge there after the coup d'etat of
_ 12 ~pril. (see MARCHES TROPICAUY ET MEDITERREWEENS 20 Jun 80 p 1568). The Liberian
government then asked that the French ambassador, Mr pollot, be recalled to Paris,
u,.~ itrescindeiiits request. Mr pollot was nonetheless recalled for consultations
b t}ie Prench government and returned to Monrovia only on 15 September, [Text]
[Paris h1ARCHES TROPICAUX ET MEDITERRANEENS in French 3 Oct 80 p 2423] 8782 -
GOOD RELATIONS WITH EEC RESTORED--Before coming to Paris, as mentioned above, to
- negotiate essentially for financial aid for the ex-3nsion and remodeling of the
free port of Nlonrovia, the Liberian minister o� Planning and Economic Affzirs went
to Brussels on 18 September to restore his country's relations with the EEC; these
relations had also been strained by the kidnapping of former President Tolbert's son
from the French embassy in Monr.ovia. European aid to Liberia this year is supposed _
to come to about $500 million. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS
in French 3 Oct 80 p 2423] 8782
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MOZAMBIQUE
STATE OF ECONOMY, NEED FOR WESTERN EXPERTISE SURVEYED
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 26 Sep 80 pp 2341-2343
[Article by Jacques Latremoli.ere; "Mozambique Explains Its Call for Western
Financial Aid"]
[Text] We have already'mentioned the change imposed on Mozambique, which is
a former popL~.lation-settlement colony whose economy was based on encouraging
immigration until the colony became independent. Now the immigrants have
gone back to Europe (see MARCHES TROPICAUX ET MEDITERRANEENS 22 Feb 80 p 417).
However, a technocracy does remain (it has 7 representatives in the present
government); it is of. Portuguese, Goan, or Luso-African origin. It is quite
- competent, but it is also extreme~y sensitive because of its uncomfortable
- position. It has few intermediary structures and feels that it burned its
bridges behind it when it chose to remain. This has naturally led the
"intelligentaia" to N~arxist solutions, and they have t~een helped along by
many frier.dly cooperating countries of the Eastern bloc.
However, frequent recourse to Western capital shows that the situation is
changing. 1~is can be explained first of all i:~y psychological factors.
The closeness of ~elations with South Africa, the country's primary supplier,
obviously makes it easy for the leaders to reconcile Marxist-Leninist theory
with day-to-day reality, i.e. the pursuit of a permanent dialogue with a
neighboring country that is diametrically opposed in ideology to Mozambique.
That is why Mozambican officials complain that Westerners are not firm enough
with Pretoria when the Mozambicans are not very firm themselves. The reason
is, they say, that "they are in a poor position to do otherwise and can assert
themselves only in the United Nations or the OAU." But there is another cause:
the inevitable rise of purely African elites, who do no~ have the same reasons
for appearing simon-pure in terms of dogma and who are quite willing to adopt
empirical solutions in the increasingly numerous positions they occupy.
The result is a gradual slide toward a form of national socialism adapted to
local needs. This is illustrated by the elimination from the government last
April of radical elements like Marcelino dos Santos, a former Planning minister
who had been demoted to secretary for Economic Production, or by the assurance
offered by President Samora Machel to the representatives of tne Business
International Corporation, an American company, that "Mozambique, as a sociali~9t
.
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count.ry, i.s well~organized enough to ~tork with pxivate enterprise, multi- _
national or :~ot, hy preserving the principle of mutual advanta~e."
But no one should jump to conclusions about mere tendencies, he the~~rtarxist
orthodoxy or people, for fear of provoking hostile reactions from the leader-
ship, whatever its background. But psychological factors are not the only
ones at work, and the weight of events is actually more important.
It works in several ways. Tfie return of peace to ZimbaUwe spares the Maputo
_ authorities the periodic destruction inflicted on the country by Rhodesiaa
air and comraando raids, and it spares them fiaving to support about 200,OOQ
refugees living on their soil, although it is true that they were receiving
appreciable international aid for this purpose. Hence there has been a rela-
tive slackening of financial tensions. Normal railway links have been rees-
tablished between Mozambique, Swaziland, South Africa, Zimbabwe, ar.d Malawir
with the accompanying large amounts of revenue, and new prospects have been
opened up for markets and supplyir.g Zambia and even Zaire.
Finally, concerning agricultural and industrial production, the authorities
realize that corporate profitability is tied to managerial competence, and
the departure of skilled employees is sorely felt. Continual resupply of
raw materials and spare parts is expensive, detailed, and hard to organize;
the government bureaucracy is incapable of doing the job. Hence foreign
technicians have been brought in, and their effectiveness is conditioned
by transportation facilities and autonomy in the use of the credits at their
disposal, particularly concerning orders for foreign materials and their -
shipping into the country; this makes procedures more flexible and gradually
wears off on methods of management in other sectors,
Railways
The Mozambican authorit~es are fully aware that a situation exists making it
possible to increase riational revenues; it must be taken advantage of quickly,
before the reestablishment of normal rail traffic to Benguela and Dar-es-Salaam
from Lubumbashi and Lusaka takes away the production of the Zambian and Katanga~l ~
Copperbelt permanently from the ports of Nacala and Beira, which should pro-
vide the most economical sea outlet, in any case.
The TAZARA (Tanzania-Zambia Railway) had only one political objective: freeing
Zambia from fiaving its production controlled by the "colonialist" nations of
Rhodesia, Portugal, and South Africa. As this objective no longer has any
- purpose, there can be no assurance that China will continue to lavish money
and technicians on a railway that has already cost it a pretty penny. Like-
wise, the endless Angolan rail line from Benguela, which was made useless by
UNITA commandos, made up for the break between the Zambian and Mozambican
lines in Malawi. Continued fighting in southern Angola and the very nature
of the Luanda regime make the Atlantic rail line much less attractive to Zaire.
The possibility of Zaire's channeling part of its foreign trade tli'roug}1 Mozam-
bican ports was, as a result, one of the themes of talks between Presidents
Mobutu Sese Seko and Samora Machel in Maputo last 7-9 June.
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It can th~is be seen th at not only temporary advant3ges are involved, which
are already not entirely devoid of interest, but that wise decisions might
- definitely channel to I~lozambique trade that fias so far � gone elsewhere,
Coyzcerning Zimbabwe, it is only a matter of ~eopening the shartest access
routes to the sea and freeing its trade from the transit fees charged by
South African railroads during the interruption in rail traffic between
Maputo and Salisbury, thus bringing this money into Mozambican coffers.
The ports and railways will have to be reconditioned to accomplish all that.
Before WW II, Portugal equipped the country witr~ a remarkable transportation
infrastructure, but problems of settlement cau_~ed maintenance and moderniza-
tion to be neglected s ince then, except on tfi e two lines directly lin~Cing
Maputo with Swaziland and Pretoria, and there the lines were always m~intained
by the South African republic. 'I'he equipment at the port of Maputo and its -
~ Matola mining annex used to take 12 million metric tons in traffic before
the hostilities with Rhodesia, but they now take only 9 million tons; however,
they could achieve 18 million tons once tha railway is back in service along
the Limpopo valley to the border. The port of Beira provides a direct rail
link to Salisbury by way of Umtali; it could operate normally bEginning in
1981, once tile necessary repairs are made on the Zimbabwe side. The rail
line's capacity is commensurate with that of the port. Dredging operations
ha~~e been contracted to a British company and should open its channel to
. high-tonnage shipping and supertankers, thus permitting 10 million tons of
traffic compared to the present 1.6 million tons.
In the north, finally, Nacala is one of the best port sites on the east coast
- of Africa; in light of wrat has already been mentioned, it could become the
normal gateway to Zambia and southern Zaire by way of the spur into Malawi
and its possible extension into Zambia by way of Lilongwe.
_ The roadbeds, rails, ballast, signaling, and rolling stock must all be
_ replaced or renovated on the three main lines and their branches. Plans _
drawn up for this need a lot of money to be carried out. Mozambique seems
to be seeking this money more in the West than in the Eastern countries,
whose previous loans, especially for the central network, were disappointing.
Local sources have been drawn upon in building a boxcar works with technical
aid from a Portuguese company; appeals have been made to Romania, which is
to deliver a first shipment of 10 diesel locomotives by the end of the year,
with 22 more to follow. Brazil has sigred a$20 million contract for the
sale of 21 General Electric locomotives partially financed by the United
States. And France has been felt out about renovating the Malawi spur on
the northern line in the context of a general project estimated to cost
Fr 620 million, about a third of which would come from France. -
In order to start work on these projects, it was necessary to coordinate inter- -
national transportation closely; Mozambique was put in charge of this coordi-
nation at the conference held in Maputo in the first half of July after the
economic summit conferences of Lubumbashi and Lusaka. A commission headed
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by the Mozambicat~ representative and including the eight other cc~untries
participating in the conference (Angola, Botswana, Lesotho, Mala~,~i, Swazi-
land, Tanzania, Zambia, and Zimbabwe) will maintain the continuity of options
and the works progress schedule, but it will not exclude contacts between
Mozambican technicians and those of each of the countries involved. T'he
_ task of management that has been assigned to bfozambique is very important
for the continuity of work in other countries, though hiozambique may have
only terminus sections of the projects on its own territory.
The Ups and Downs of Industrial and Agricultural Production
R`hile the present situation requires that a financial and t echnical efiort
benade quickly to solve the problem of international railway links, agri-
culcural and industrial production also needs foreign aid, tor several
reasons: local resources are inadequate to the amour.t of finnncing neces-
sary, and problems have appeared in the management of hastily nationalized
companies, whose purposes do not always correspond to the needs of "decolo-
nialized" Mozambique; not to mention that these companies are hampered by
a lack of qualified personnel. The desire to diversify the sources of aid
and the government's refusal to apply to the i9orld Bank or to adhere to the
Lome Convention oblige Mozambique to seek aid through bilateral agreements.
It would take a long time to list the breakdowns in supplies and the tech-
nical accidents causing production stoppages, tllough it would not be hard
to do so, because they are reported in the press and on the radio. The
_ more or less valid excuses given for nationalizing without compensation
the few,already languishing Portuguese businesses sui�viving in the food
or fisheries sector are not designed to improve the quality of the tool
thus falling into the national domain. The country's main ~lastics factory
has been paralyzed since January for the lack of raw materials. There has
- been more than a year's delay in putting into service the Fabrica de Re�eicoes,
a Beira beverage company. The biggest paint factory, whose 1978 production
was already below that of 1975, has been out of production for three months.
In the distribution sector, slipshod management and corruption caused the
head of state to order that the "people's stores," the "lojas do po�ro," be
~ closed. It is significant that at the same time, Nurway was asked to finance,
buil.d, and staff a sawmill; Hungary, a bus assembly line; Italy~s SNAM
Progetti [National Gas Pipeline Company], a textile mill; Sweden (..ineflyg),
tn maintain domestic airlines; and the USSR or France, to deliver fishi.ng
boats.
Appeals for foreign aid in sectors where factories and repair shops used to
abound would be surprising except that in this country where illiteracy reigns,
specialized wc.rkmen were provided almos~c entirely by the Po rtuguese. These
appeals are more easily explained by the size of the bill for the railway or
industrial projects, such as the north extension of the Cabora Bassa dam,
which involves installing new turbines rated at 1,800 megawatts at a cost of
$1 billion.
The fall in agricultural production has also led the authorities to turn to
foreign countries. This decline is not peculiar to Mozambique, for with the
rare exception of countries such as the Ivory Coast or Cameroon, it is common
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to tropical Africa, The iiigh percentage o~ the populati.on (90 percent) that
lives off of agriculture and low industrial wages combine to keep food pro-
duction dowr. WFiile food imports fiave grown from 0,2 percent to 6 percent
since independence (the government has announced a 250,000-ton deficit in
corn for 1980, not to mention wheat and rice, which gifts and sales from
the Ur~ited States, Sweden, Canada, and France and international organizations
make it possible to fill), the real reason is a farmers' holdback linked
with the disappearance of markets in the countryside and with tfi e corres~
ponding difficulties of supplying the large urban centers of Maputo (800,000
people) or Beira (250,000 people).
This decline has been felt especially in agricultural export production;
Portuguese activity was especially important in this area, from agronomic
research to marketin~, including tfie organization, staffing, and supervision
of farming in areas comprising nearly fialf of the country's arable land.
The cashew nut harvest fell from 215,000 tons in 1973 to 75,000 tons in 1978;
it is the country's prinary export and has fallen again in 1980. Production
is down especially in Sofala province, the main area of production, because
of harvesting troubles, in both manpower and trucking. In the area of cotton,
which is a priority area because it supplies the spinning and weaving mills,
production seems to have dropped by 2/3 since 1973, despite official harvests
_ of 1.5 tons per hectare on state farms or 800 kg per hectare in the coopera-
tive sector. Actually, the general average of the harvests does not seem to
exceed 250-300 kgJha in zones of suitable rainfall (600-800 mm) on water-
retentive land, which could bring harvests up to 2 tons per hectare if well
worked and treated.
The government has proceeded to make a geographical division of cotton-farming
aid. Romania has been assigned the province of Cabo Delgado, in the north,
and the Russians, Nampula province, next to Malawi, while the CFDT [French
Company for Textile Fiber Development] has been requested to work in Sofala
and around Caia, on the south bank of the Zambezi river. The results achieved
in Cabo Delgado in 1980 show average yields of 300 kg/ha. The Russians claim
yields of 2,4 tons/hectare on experimental fields, but the actual average in
their zone does not exceed S00 kilos; the plants suffered from fungus blight
and their average density per hectare had to be lowered. The French should
have good cfiances in this peaceful competition to the extent that they have,
however, enough autonomy not only to provide their choice of tools, fertili-
zer, herbicides, and insecticides, but also to staff the farms effectively.
The structures consist of government corporations where the salaried workers
may eventually become part owners; as they are required by the government,
the French technicians will have to get along with them.
France and Mozambique
Mozambique has sound reasons to turn to the West, and the question arises,
obviously, whether the corollary is true, Zimbabwe, Zambia, Zaire, and Malawi
are free-economy countries. N'ill the West's aid cause them to associate more
closely with Maputo, especially in transportation? As it is, socialist Mozam-
bique has already shown itself to be pragmatic, and in Africa, political insig-
nia almost always indicate mixed structures in which the government's omnipo-
tence is tempered in direct proportion to development. In any case, Mozambique,
21
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like Tanzania and Madagascar, appeaxs to be an indispensable partr~er to
France's peacemaking policy in this corner of the Indian ocean,
Mozambique's transportation and electrical infrastructtire projects hold
great interest for the foreign trade of European countries and for France
in particular because of the implied opportunity to supply services and
materials. Of course, this interest depends on Maputo's financial credi-
bility. This credibility is ~ometimes questionable: the 1979 budget
deficit was 20 billion meticais, and the annual debt service is 1.5 billion
meticais, which represents 35 peresnt of export receipts (5.3 billion meti-
cais against 17.2 billion in exports, for a coverage rate of 1/3). (The
"metical" (plural: "meticais") replaced the Mozambican escudo on 1 June 1980.
Its value is Fr 0.135.) FV;~ile the crisis is causing more red ink to flow,
it must be admitted that the easing of expenditures and increase in rail-
way aiid port usage fees, not to mention the outlook for industry and trade,
does encourage some optimism. Tfi is optimism is e:cpressed in the annual
increase in t}?e volume of foreign financial aid to A4ozambiQue (~330 million
in 19 7~, $45 million of which was from South Africa, and nearly twice as
much in 1980).
This is the contaxt in which French aid to Maputo should be eva:uated.
Mr Guiringaud outlined its beginnings in 1977. They ti~~ere sealed on 18 March ~
1980 on the occasion of Ntr Sergio Vieira's visi.t to Paris. He is a nover-
- nor of the Bank of Mozambique and a member of the Council of Ministers.
_ This aid was confirmed and extended during Mr Joaquim Chissano's recent
visit to France; Mr Chissano is the Foreigr~ Affairs minister. Some French
companies did not wait for officialdom to open the way: the UTA [Air Trans-
portation Union] started a weekly Paris-Maputo flight via Kinshasa ttli.s
year; the Salins du Mi~i are giving technical aid to the big Nicala salt
works; the BRGM (Bureau of Geological and Mineral Research) and the General
Geophysi.cs Company are prospecting for minerals and oil in Niassa, Cabo
Delgado, and on the north coas't; and, finally, the CFDT [French Company
for the Development of Textile Fibers], which is also working in the field,
is furnishing an advisor to the National Cotton Institute.
_ The agreement of 18 March signed with the French government sets financing
terms at Fr 117 million for 15 shrimp boats with spare parts and crew training -
provided by a shipyards group from the West. A 10-year export credit of
Fr 200 million has been set up to build a high-tension line between Cabora
Bassa and Mocuba. The loans will be granted by a Franco-ILalian consortium
in which CGE-Alsthom will supply electric cables and materials up to the
aforementioned credit limit, plus a 2-year, Fr 100-million line of credit
for the purchase of light equipment and spare parts. A food aid grant of.
2,000 tons of grain has also been decided upon, but delivery has been delayed
by a serio~s accident that happened off of Djibouti to the cargo ship that
was carrying it,
This first series of projects is being accompanied hy two others that are
- being actively pursued: a Fr 50-million line of credit is being opened for
- the purchase of foodstuffs and reconstruction, and anoth er one, for Fr 30
million, is being established for the Mavuzi