JPRS ID: 9903 SUB-SAHARAN AFRICA REPORT

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• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000400040015-7
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• Original Classification: U
• Document Page Count: 51
• Document Creation Date: November 1, 2016
• Sequence Number: 15
• Content Type: REPORTS

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JPRS L/9903
11 August 1981
Sub-Saharan Africa Re ort
p
- FOUO No. 734
F~IS FOREIGN BROADCAST INFORMATION SERVICE
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JPRS L/9903
11 August 1981
S~UB-SAl~ARAN AFR I CA REPORT
FOUO No. 734
CONTENTS
ANGOLA
Need for Construction of Cabinda Port I}iscussed
(MAR.CHES TROPICAUX ET MEDITERRANEENS, 26 Jun 81) 1
- Brief s
Import Survey 2
BURUNDI
UPRONA Corrnnittee Adopts I}raft Constitution, Discussed Projects
_ (MARCHES TROPICAUX ET MEDITERRANEENS, 3 Jul 81) 3
Brief s
Aid F~om FRG 5
CAMEROON
Brief s
- Highway Contract With Netherlands 6
CHAD
~ EEC Relations, European Aid Noted
(MARCHES TROPICAUX ET MEDITERRANEENS, 3 Jul 81) 7
OAU Summit Receives Goukouni as Real Head of State
(MARCHES TROPICAUX ET MEDITERRANEENS, 3 Jul 81) 9
OAU Resolution Viewed as Victory for Nation
(Augusta Conchiglia; AFRIQUE-ASI~,, 6-19 Jul 81) 11
Libya Supplying Some Lconomic Aid to Nation
(Siradiou Diallo; JEUNE AFRIQUE, 8 Jul 81) 13
- a- [III - NE & A- 120 FOUO~j
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CONGO
National Credit Council Publishes 1979 Report
- (MARCHES TROPICAUX ET MEDITERRANEENS~ 3 Jul 81) 15
IVORY COAST
Houphouet Leads in North-South Dialogue
(Sennen Andriamirado; JEUNE AFRIQUE, 15 Jul 81) 17
MADAGASCAR
Prime Minister Discusses 1978-1980 Economic Development Plan
(MARCHES TROPICAUX ET MEDITERRANEENS, 5, 12, 19 Jun 81) 19
Permanent Soviet Economic Information Center Opened in
Antananaxivo
(Editorial; MARCHES TROPICAUX ET MEDITERRANEENS, 19 Jun 8~) 2~.
MOZAMBIQUE
Brief s
Aerial Spraying 25
Coal Transport I7ifficulties 25
NIGER
Brief s
French Zoan for Aquaculture 26
` Winding Up of Public Works Company 26
NIGERIA
Brief s
Construction at Abuja 27
Cooperation With Poland 27
Discussions With Iran, Gabon 27
Solar Energy 27
Rubber Production 27
Power Station Near Lagos 28
RWANDA
Bri ef s
Economic Projects 29
Demographic Study 29
SENEGAL
National Assembly Adopts ~ixth Development Plan
(i~`~ARCHES TR~JPICAUX ET MEDITERRANEENS, 3 Jul 81) 30
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BCEAO Gives Statistics on Recent Economic Developments
(MAR.CHES TROPICAUX ET MEDITERRANEENS, 3 Jul 81) 32
Bri ef s
New Investment Code 3~
1981-1982 Budget 34
Zoan to TCS 3Lt
SOUTH AFRICA
Brief s
Secret Negotiations With USSR 35
TANZANIA
Minister Fresents Economic Plan Estimates
(MARCHES TROPICAUX ET MEDITERRANEENS, 3 Jul 81) 36
~
~ Objectives of Program for Economi.c S~arvi~ra~ Noted
' (Kusai Kamisa; NEW AFR.ICAN, Ju1 81} 38
Further Petroleum Conservation Measures
(Abdulla Riyami; NE4J AFRICAN, Jul 81) 40
Brief s
Swedish, Yugoslav, Netherlands Aid 41
; ZAIRE
( Brief s
Iliamond Sa1es 42
ZANIBIA
Citizens Seen Facing Privation Until Corrective Measures Wor'c Out
(Masautso Masautso; AFRIQUE-ASIE, 6-19 Jul 81) 43
Brief s
Mining Cooperation With Zaire 46
French, Japanese Vehicle Assembly 46
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ANGOLA
NEED FOR CONSTRUCTION OF CABINDA PORT DISCUSSED
_ Paris MARCHES TROPICAUX ET MEDITER~tANEENS in French No 1859, 26 Jun 81 p 1732
[Text] Separated from the rest of the territory of Angola, the province of Cabinda,
which thanks to its oil contributes more than 50 percent to the economy of the country
and which must impo~rt and export everything, finds itself in a paradoxical situation:
it has no port worthy of tt?e name. Its traffic is handled through the Congolese
port of Pointe Noire and is sent tl~ere by trucks. Thus Angola must pay customs
duties atid port taxes in ti~e Congo in foreign exchange, ae well as the cost of
highway transport. The construction of a port in Cabinda is thus necessary.
It was, moreover, decided upon at the first MPLA congress in 1977. But difficulties
of various types were encountered in the imple~entation of the project and have
delayed its realization. For lack of a 3ecision as to what body was responsible, it
, suffered an initial delay of two years. It wss not until 1979 that the project was
awarded to Hidroportos, the organizati.on responsible for the civil engineering project
construction under the Ministry of Construction. Varioue other difficulties in trie
drafting of contracts and the purchase of equipffient resulted in a substantial increase
in costs, such that it was necessary to revise the initial estimate upward by 30
percent.
Various obstacles of a technical nature remain to be mentioned: for example, the
~shipment of some 500 tons of welding equipment and its installation, and again the
irregularity in the electrical energy supply, not to mention the lack of suitable
equipment for the work of installing the prefabricated housing intended for the
foreign technicians.
Taking these situations into account, the bulk of the work in the real sense of the
- term cannot be started before 19$2. The construction of the port was in fact designed
~Q be carried out in three phasea: the firat, including the infrastructure in con-
nection with housing for the person:iel; the second, including the installation of
the flo3ting platform; and the third, the project work as such, which after the
amendment of the initial plan by tae Portuguese Consumar comgany, will be in part
the responsibility of the Yugoslav Energo-Project ent2rprise.
The cost of building the Cabinda port ia estimated overall at 800 million kwanzas, to
which must be added 110 million kwanata for the import of equipment.
COPYRIGH'l.: Rene Moreux et Cie Paris 1981.
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ANGOLA
BRIEFS
IMPORT SURVEY--A survey of the whole of Angolan territory, to be completed by 15
July, has been launched by the Ministr;~ of Foxeign ~rade with a vi~w to examining
the current situation of the enterprises ~hich have engaged or are engaging in import
activity in the People's Republic of Angoia from the administrative, structural,
functional and financial viewpoin.t. The purpose of ~he study is to make possible the
better orientation o~ government activities in the future. All the enterpi~ises--
state, mixed, private and those taken over, nationalized or confiscated--muet fill
out a 25-point questionnaire pertaining among other things to activities, number of
employees, wage total paid out in 1980, bylaws, the amount and structure of the
capital, financial situation, volume of purcfiases, sales and stocks, indebtedness,
investment plans, taxes, subsidies, etc. LTextl ~Paris MARCHES TROPICAUX ET
MEDITERR.ANEENS in French No 1859, 26 Jun 81 p 1732] [COPYRIGHT: Rene Moreux et Cie
~ Paris 1981) 5257
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' BURUNDI
UPRONA COMMITTEE ADOPTS DRAFT CONSTITUTION, 1?ISCUSSES PROJECTS
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1860, 3 Jul 81 p 1781
[Text] The Central Commi~:tee of the United Burundian Party UPRONA [National Unity
and Progress Party], which held its usual quarterly meeting on 18 and 19 June at
Bujumbura, has adopted the Republic of Burundi`s draft constitution. This consti-
tution will soon be submitted for the approval of the Burundian people.
Moreover, the Central Committee has analyzed the policy of regrouping the popula-
tion in villages throughout the country and has recommended to the government a
series of ineasures including the establishment of an agrarian policy in confo rmity
with this village regrouping policy and the modernization of cultivation methods.
The party's Central Commlttee has also recommended the continued diversification
of the n~ture of the coaperatives, in particular, in the fields of trade, agricul.-
ture and cattle-raising.
The New Rural Policy
^~hree points were examined by the Central Committee:
So as to ensure progress in regrouping the population in villages, the Central Com-
mittee has set up for the government a program centered on regrotiping all the people
into villages; thE preparation of a new law governing land tenure, so as to facili-
tar_e regrouping in villages; improved methods of cultivation; emphasis on increasing
production by sensitizing the population to regrouping in villages; distribution
in villages of basic necessities; preparation of a brochure containing instructions
for establishing villages; the setting up of an office to establish a rural develop-
ment policy; reaffirmation of the national culture in the villages.
With regard to cooperatives, the Central Committee has examined the progress already
achieved and made the following recommendations: continued training of technicians
in the field of cooperatives; translation into Kirundi and distribution of the new
statute on cooperatives; strengthening of sales, production, cattle-raising and
craft cooperatives; encouragement of cooperative associations at the level of all
the provin~:es (Union of provincial cooperatives); creation of a national federation
of cooperatives; assistance t~ couperatives in obtaining credit.
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With regard to rural water supply and electrification, the Central Committee has
accepted the government projects.
It was recommended that the government should maintain the already existing water
sources and dams and continue constructing new ones. The state will have to count
on help from the communes and the people in th~e completion of this project. It
will also have to train specialists in water supply and electricity.
COPYRIGHT: Rene Moreux et Cie Paris 1981.
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BURUNBI
BRIEFS
, AID FROM FRG--As of the end of June, the FRG decided to grant assistance in the
amount of DM 66.5 million to Burundi for the period 1981/1982, for the development
of the country's electrical and hydraulic infrastructures. [Text] [Paris MARCHES
! TROPICAUX ET MEDITERRANEENS in French No 1860, 3 Jul 81 p 1781 [COPYRIGHT: Rene
Moreus et Cie Paris 1981.J 9434
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CAMEROON
BR IEFS
HIGHWAY CONI'RACT WITH NETHERLANDS--The Cameroonian Government has entrusted the
' construction of a 62-km segment of the Douala-Yaounde Highway to two Dutch firms:
~ Volker Stevin Roads BV and Boskalis International. This highway, 11.4 meters wide,
~ involving the construction of two 20-meter bridges in a forested area, will entail
; the destruction of 650 hectares of forest. The contract amounts to a total of
285 million French francs (14.25 billion CFA francs). [Text] [Paris MARCHES
TROPICAUX ET MEDITERRANEENS ~n French No 1862, 17 Jul 81 p 1888] ~COFYRIGHT: Rene
Moreux et Cie Paris i98J
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CHAD
EEC RELATIONS, EUROPEAN AID NOTED
Paris MARCHES TROPICAUX ET MIDITERRANEENS in French 3 Jul 81 p 1775
[Text] In a written question to the Commission of European Communiti~s, Van Miert,
member of the European Parliament, asked "in view of rzcent developments in the Chad
situation": 1) What steps have been taken by the commission regarding the aid
granted to that country? 2) Has it made or does it intend to make contact with the
leaders of Chad? 3) If the answer is yes, what conclusions was it able to dxaw, if
any?
On June 10, the commission replied:
1) Chad was the recipient of funds worth 51.9 million ECU's [European Currency
Unit] as financial and technical cooperation in the frameworic of the First Lome
Convention. Right now, 78.5 percent of that sum has been committed; about 45 per-
cent of that sum has been actually paid. However, work had to be discontinued in
1980 in already financed projects due to what was happening in the country, except
in the case of the project of integrated development in southern Cha.d where the
~ommission has been rrying to safeguard the extremely satisfactory results.obtained
in the sphere of moderni~ation of agriculture through widespread use of animal-
drawn farming implements. Moreover, the commfssion continues to finance, ~ointly
with other bilateral and multilateral types of aid, the emergency aid program for
Chadian students affected by the d~ve~.opments,
Under the STABEX [Stabilization of Exports], Chad received in 1980 a transf er pay-
ment of 4.67 million ECU�s as cvmpensation for the drop of its earnings from cotton
exports. In 1980, the commission agreed to make a second transfer payment of
2.66 million ECU's to compensate for a drop of cotton export earnings in 1979.
Emergency aid to the tune of 300,000 L?CU'e waa granted in October 1979 to keep
essential public services running in the capital.
In the framework of the Second Lome Convention, the commission grantad on 2 April
1981 an emergency aid of 500,000 ECU's for operations of a humanitarian nature which
will be carried out by nongovernmental agencies of the community to l~enefit the
population, victim of events ix~ that countr~?.
2) and 3) After violent fighting erupted in the capital of Chad, the counnission's
local office had to be evacuated in April 1980 when diplomatic missions and
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international agencies' offices in Ndjamena decided on a similar move. However, a
sub-branch was set up in Garoua, in northern Cameroon, in the off chance of re-
maining in contact with the Chadian authorities to do our very best to meet the
basic needs of the population affected by the developments as well as to protect
the gains of the community's aid wherever possible.
The commission hopes to reopen its office in Ndjamena as soon as the local situation
warrants it under conditions of security and effectiveness. Meanwhile, contacts
have been maintained with the Chadian authorities, who have ratif ied the Second
Lome Convention, and these contacts are made through the Garoua outpost and through
the Republic of Chad's permanent delegation to the co~unities.
COPYRIGHT: Rene Moreux et Cie Paris 1981.
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CHAD
OAU SUMrIIT RECEIVES GOUKOUNI AS REAL HEAD OF STATE
Paris MARCHES TROPICAUX ET. MIDTTERRANEENS in French 3 Jul 81 p 1775
[TextJ The 18th OAU Summit held in Nairobi (see page 1747) has confirmed the
recognition of Chad's GUNT (Transition Government of National Union) in the inter-
national arena and Goukouni Weddeye, the president of Chad, was received in the
Kenyan capital as a real head of state.
Moreover, this su~it was also a victory f or Libyan diplomacy insofar as Tripoli's
military intervention in Chad was not cond emned.
The resolution adopted by the African head s of state and heads of government meet-
ing in Nairobi merely notes that the summit has decided to ptxt at the disposal of
the GUNT t~:z financial and material means which will enable this government to
_ quickly create its Integrated National Army and to gradually take over from the
~ foreign troops stationed in its national territory.
The document also reaffirms the OAU's supp ort for the GUNT and calls on all the
member states to back that government in its efforLs b~ maintain peace and security
in the country and to refrain from interf er ing in the country's domes~ic affairs.
The OAU has also decided to launch an app eal to all member countries, to the
United Nations and to international organizations asking them to help the GUNT
reestablish the administrative machinery and rebuild the country's economy ruined
by 15 years of war. To this effect, the UN Secretary General has been asked to
convene a conference to pledge contributions of aid to Chad.
President Goukouni Weddeye held a press c onference in Nairobi on 26 June during
which he noted that the aforesaid resolution was not referring to Tripoli when it
mentioned "noninterf erence." "It is fully understood by all the heads of state,"
he said, "that the Libyan troops will leave as soon as Chadian troops are capable
of ensuring the country's security."
On the subject of the neutral force which, according to the resolution, will be
entrusted with peacekeeping, and the compo sition of which will be first submitted
to the GUNT's approval, Goukouni noted tha t"if it arrives within 1 or 2 months,
the Chadian Government will assume its resp onsibilities." "Otherwise," he added,
"the government will not send the Libyan f orces away."
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France and other countries, Nigeria in particular, have said that they were ready
to help Chad on condition that the i,ibyan troops leave the country. President
Goukouni has said that "the Chadian people are lucky that Francois Mitterrand is in
charge in France."
Asked about the couiposition of the neutral force, the Chadian president noted that
Chad had already accepted the three countries mentioned in the Lagos A.greements
_ (Congo, Benin and Guinea) but that any change would have to be submitted to the
GUNT f or approval.
He also stated that the Libyans had come to help the GUNT by military means to put
an end to the "rebellion which was receiving considerable assistance from countries
in Africa and outside Africa."
Afterwards, Goukouni mentioned Vice President Kamougue's trip to Paris where he
went for medical reasons and said that he had entered a hos~ital there. Finally, he
paid tribute to a young Spaniard, member of the PSOE (Span3.sh Socialist Workers'
Party) who came and fought alongside the resistance fighters" of the FROLINAT
[Chadian National Liberation Front] and who was a member of the Chadian delegation
to the OAU Conference. He also thanked Spain which had taken into its hospitals
tens of wounded Chadians. Let us point out that the friendly relations which exist
between the PSOE and the resistance fighters of northern Chad--who are now part of
the Ndjamena Government--are close ties going back a long way.
COPYRIGHT: Rene Moreux et Cie Paris 1981.
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CHAI)
OAII ~~SOLUTION VIL'WEll AS VTCTORY FOR NATION
Paxis AF~~IQU~'~,-ASIL in I'rench 6-19 Jul 81 pp 22, 23
[Article by Au~usta Conchiglia]
[Text] With Giscasd removed fr.om the political scene, new
ideas ha,ve been able to blaze a traa.l for themselves,
"This is a victory for the people of Chad and its government an unconditional
support for the GUNT ~National Union Transitional Government~]~" With these words
?resident Goul:ouni We deye took his ha.t off to the resolution re~arding his country.
Formulated in terms of three points, it advocates a grant-in-ai.d for the national
reconstruction of Chad and creation of a new peace-keeping force (proba~ly composed
of the three countries already indicated at Lagos, to wit, Congo, Benin and Guinea~
to maintai.n security within t,he country. President Ra,tsirak.a hopes that this force
can be put into operation within a month's tiL1e, It is not incompativle with the
presence of I,ibyan troops "a matter which is solely within the jurisdiction of
the I~djamena government" - which are still indispensable to the r~a.intenance of
our security, threatened from abroad.
lJhen these threats disappeax, when the neutral force and the reconstituted Cha.dian
Ar~~y are in a position to assure the defense of the country, "we will thank our
Libyan allies and ask them to leave~"
The thircl point in the resolution is no doubt the nost important for the Chadian
econor.iic situation: The OAU "is launching an appeal to the African countries and
others to put an end to any intervention in Chad's internal affairs."
While the GUNT president "no longer has anythi.ng~ to fear" from France, the support
_ sone African countries axe still extendin~ Hissein Habr~, condemned to death for
crimi.nal activities by the courts of Ndjamena, could give rise to fear of other
attempts to render the country unstable. But the plan that mi~ht have succeeded
in reinstalling Habre at the head of a puppet government in Chad was conceived
and prepared in the French capital, apparently before 10 P'Tay. "Immediately after
his reelection," F'resident Goukouni revealed, "Valery Giscaxd d'Estaing intended
to attack Chad, burn its capital to the ground. The information we have received
is absolutely certain."
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`1`hc ana~;h~rr~, countries like a~dan and Gabon heaped on Libya, "an expansionist
power~" did not find enou~li partisans at this swnmit meeting~ However~ one of the
two Yenya.n dailie:, TI~ STANDARll, ha.s busied itself with creatin~ a climate favor-
a~le to the condemnation of Libya, moat recently attributing to the latter an
~~.Uorted coup in U~ anda. Thi~, wllich m~.dc thc front pa~c of that dai.ly ori :itltll7'(~~i.y ~
ti~e ~7t}~ - wlia.t wa~ involved was an Ttalian rv.ssion' 3 attack in Wo~t Nile Province
durin~; which irre~ular tr.oop~ killed 55 people - has aroused no re~ction fron
President Obote, who nevertheless attended the summit meetin~.
Therefore~ this summit meeting indisputably revealed what, to the way of th~uzking
of its leaders, tha an.ti-Libyan campaign cor.cea,led, tha,t is, the expansionism and
a,gb^ressive~ neocolonialist policy of France under Giscard, an otherwise more spe-
cific dan~er.
Thus the departure of Giscard's strate~;ists from the Elysee [presidential of~'ice~
and the 4,~uai d'Orsay [I~'tinistry of External Relations], with whom several reaction-
ary re~,imes had cooperated~ caused President Goukouni to say that some countries
"ha.ve been able to ~,ro beyond their former notions particularly as concerns
Chad and have shown thenselve:. to be open ~to new ideaa,..."
In any event, with the removal of tr.e ima~,Te of a Libyan bogey man, no objections
were raised when it was confirmed tha.t the next summit meeting would be held in
Tripoli, and this just at the end of the conference proceedings durin~ the early
nornin~; hours of S~znday, 28 June,
COPYRIGHT: 1981 Af.rique-~l~ie.
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CHAD
LIBYk SUI'PLYIIdG SOT~~; r~~ONOi~'LCC AID TO NATION
Paxis JL,UiJ'~ AFRIQU~ in French 8 Jul 81 p 23
[Article by Siradiou Diallo: "Chad: The Heroes Are Tired"]
[Text] "~1].1's well that ends wcll," a Lib~an delegate tossed at us as we were
leaving the debate on the Chadian affair, And he went on to explain tha,t his
country is no longer opposed to the decision to withdraw its troops now that the
president of the GUNT (National IInion Transitional Government~, Psr Goukouni Weddeye.
himself ia in agreement with that prospect. "We are for legality," he added,
smiling.
~~,~dY:dhafi and Gonkouni's men Y~ad reason to be satisfied~ By coordinating their
strate~r, they had just caxried off a great diplomatic victory, Not only did the
GUNT manage to get itself to be considered the ~ole and unique le~al government
in Chad by rejecti.ng any thou~ht of reconciliation with Iiiasein Habre's FAN [North-
ern Armed rorces~, but also the resolution approved at the summit meeting no longer
alluded to a condemnation of Libyan intervention.
The sad memories of the set-tos and tensions that maxked the Ad Hoc Commi.ttee on
Cha,d meetings at I,a,gos (24 December 1980) and then at Lome (14 January 1981) had.
quite fa.ded.. More specifically, at the Lome meeting had not the OAU straightfor-
waxdly condemned the introduction of Libyan troops in Cha,d and demanded that they
be replaced by a pan-African intervention force?
What nas happened since then? Why has Nai.robi made them forget Lome and I~a~os?
Because the heroes of those meetings are tired of Chad (as they are~ ~moreover, of
the Sahaxa). They no longer want to listen to any talk of these endless conflicts~
Now as to the peace that everyone so axdently deyires, Goukouni Weddeye has suc-
ceeded ir_ persuading them tha.t irom now on it is he and he alone who will embody
it and ~uarantee it. Acyl Ahmat (GUNT minister of foreig~ affairs) confided to
us that another allusion to reGOnciliation with Hissein Habre would be enough to
set the ~uns to talkin~ a.gai.n.
The fornier southern lead.er~ Col Wadal Abdel Kader Kamougue, himself seems to be
heading for a fall, ~zspected of being lukewarm toward the policy of integration
of the different armed factions into a national axu4r, decided on during the ataff
seminaar held from 15 to 3o r~,y i.n Nd3amena, it would appeaar that the GUNT vice
president did not withdraw to France only "because of his health."
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"Let r~irn ::tay there and Chad will only be the be~ter off for itl" cracked a member
of the Chadian dele~ation for whom the leitmotif is still peace in th~ framework
of a rediscovered unit~,~. As for the withdrawal of the Libyan troops and their re-
placement by neutral pan-African forces, GUNT members say that they are in perfect
a~reement on tnat, .Provided~ they sFecify, that the two operations are almost
si~nzltaneousl5~ executed~
Por, one of the~ confided to us, when someone tells you to ~hrow away the stick
you are holding in your hand when"a dangerous snake is beaxin~ down on you~ you
won't do it unless he inmediately r;i.ves you a bigger stick...."
In other words Goukouni Weddeye intends to han~ on to the Libyan stick just as
lon~ as the OAU is unal~le to procure a force capable of sustainin~ him a,ga,inat
Hissein iiabre, a.ided by ~g,ypt and S~dan. Now everyone lrno~~s - and first of all
tne Libf~ns and Chadians - tha.t they ma,y well have to wait for financial, material
and logistic support from the OAU.
;specially given the fact that, since their "pacification" of the country, the
Libyans have been rebuildin~ public buil.dings, restorin~ certain economic facili-
ties and disbursin~ funds to pay officials ~3 million a month. Under the circum-
- stances it is understandable why the Cha.dians axe in no hurry to sho~ the Libyans
the door~
COI'YRIGHT: Jeune Afr.ique GRUI'JIA 1981,
11,466
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CONGO
NATIONAL CREDIT COUNCIL PUBLISHES 1979 REPORT
_ Paris MARCHES TROPICAUX ET MIDITERRANEENS in French 3 Jul 81 p 1777
[TextJ The National Credit Council of_the People's Republic of the Congo has
published its long-overdue 1979 report.
For that year, the general balance of payments showed a positive balance of 3 bil-
- lion CFA francs, slightly less than the 3.9 billion CFA francs surplus obtained for
fiscal 1978. The general balance of external payments improved as a result of
increased oil exports bringing in higher revenues which amounted to 73.2 billion
CFA francs in 1979 compared to 48.1 billion in 1978. As a result, the balance of
trade had a surplus of 46.9 billion CFA francs compared to a 9.2 billion in 1978.
The chapter of services remains in deficit due to the cost of freights and to in-
vestments by the oil companies (a deficit of 10.4 billion CFA francs).
In 1979, the new f low of financial aid was clea.rly below the amount of f oreign aid
received in 1978. In 1979, the Congo received the equivalent of 32.7 billion CFA
francs worth of credit loans and repa~d 33.7 billion; it also received 7 billion
CFA francs of development aid.
Qn 31 December 1979, net external assets showed a deficit equivalent to 3.8 billion
CFA francs, a reduced indebtedness campared to the end of December 1978 when the
def icit was 7.7 billion CFA francs.
In the budget for fiscal 1979, the debt servicing burden dropped to 8.1 billion CFA
francs, down by 1.2 billion compared to the previous budget. Paying the interest
due on the external debt required 7.5 billion CFA francs (up by 27.17 percent) but
the budget allocation to that chapter of expenses were lower because th~ internal
debt only required 0.6 billion CFA francs (down by 82.24 percent).
During that year, the paper money supply (bills and coins) increased from 17.2 to
19.9 billion CFA francs (up by 12.82 percent). The Congolese currency bought by
_ the Bank of France totalled 3 billion CFA francs, of which 0.7 billion came from
Switzerland (compared to 3.6 billion CFA francs and 1.2 billion CFA francs
respectively in 1978).
The bank money--all checking and term accounts in banks--increased from 16.6
billion CFA francs to 20.7 billion by 31 December 1979 (up by 24 percent).
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The credits of the state's monetary system remained stable: 20.7 million CFA
francs by the end of the year (up by 3 percent) and most of it consisted of ad-
vances of the Central Bank and capital bonds issued by commercial banks at 6-
month intervals on the basis of the volume of deposits received.
After introducing it~ financial stabilization program, the Congo received more aid
in 1979 from the International Monetary Fund--6.3 billion CFA francs (an 86.25
percent increase compared to 1978).
_ By 31 December 1979, the economy had received 45.6 billi:n CTA francs worth of
credits compared to 39.4 billion a year earlier (up by 15.64 percent). That aid
represents 72 percent of monetary and other assets (76.2 percent in 1978). The
tertiary sector (services, transportation and management) was the major user of
granted credits while the secondary sector, covering processing industries, came
in second place (32.68 percent).
Assistance from the National Development Bank went up--11.1 billion CFA francs by
the end of 1979 (up by 20.5 percent).
The structure of the Congolese banking system remained unchanged. Apart from the
Bank of Central African States (BEAC), which is a joint bank of issue for the
Congo, Cameroon, Central Africa, Gabon and Chad, the banking sector cons~sts of
two commercial banks--the Congolese Commercial Bank (BCC) and the Congolese Union
of Banks (UBC)--and the National Development Bank of the Congo (BNDC).
COPYRIGHT: Rene Moreux et Cie Paris 1981.
8796
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IVORY COAST
HOUPHOUET LEADS IN NORTH-SOUTH DIALOGUE
Paris JEUNE AFRIQUE in French No 1071, 15 Jul 81 pp 38-39
[Article by Sennen Andriamirado: "The Abid~an-Paris Axis"]
[Text] On 9 July, Felix Houphouet-Boigny informed his French counterpart,
Francois Mitterrand, of the new element in Franco-Ivorian cooperation, as viewed
by Houphouet himself: a political alliance, instead of the traditional assistance
from the former colonizer to an underdeveloped country. Herein lies the vast
difference between the Franco-Ivorian cooperation of the sixties and the relations
- between equals proposed by Houphouet-Boigny for the eighties.
True, Ivory Coast can afford such a change in cooperation. Benefiting from
massive assistance from France during the last 20 years, it is one of the rare
countries to deserve thE: approval of its industrial partners. Between 1958 and
1980, Ivory Coast received some 27 billion CFA francs from the FAC (Aid and
Cooperation Fund), out of which a trifling 22.9 billion in the guise bf non-
reimbursable subventions.
However, this amount becomes derisory when compared to the sum of the loans granted
by the CCCE (Central Fund for Economic Assistance) for the sole year 1980: A
total of 22,076 billion CFA francs, 11.5 billions of which at a preferential rate
of interest of 5 percent per annum and 10,570 billion at the rates of the inter-
- national credit markets. In sum, in 22 years of cooperation, Ivory Coast borrowed
more from France than it received in grants.
Privileges
Before welcoming Houphouet-Boigny in Paris, Francois Mitterrand was already aware
of these figures. In 1980, France provided Ivory Coast with cooperants to the
tune of 5.115 billion CFA francs; however, Ivory Coast put up 33.85 billion
CFA francs in counterpart funds for this French assistance (contributions for
cooperants' salaries, various indemnities, housing, etc.).
Of course, the Abidjan gov.^rnment has the largest contingent of French cooperants
in comparison to all the other African countries (3,976 agents as against 1,300 in
Senegal and 700 each in Cameroon, Gabon and Madagascar). Of course, Ivory Coast
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absorbs more than one-third of the 12,000 cooperants once "managed" by the French
Ministry of Cooperation. But Felix Houphouet-Boigny did not want to meet his old
parliamentar.~y colleague of the fifties, Francois Mitterrand, to maintain these
privileges, and still less to increase them, tlis objective was neither to revise
the Franco-Ivorian agreemen~s nor to solicit reinforced cooperation. He wanted
much more: a political alliance.
By "political," the Ivorian president means "economic," and by "allian~e," he
; means a convergence of ideas and strategies vis-a-vis the international crisis.
In the most extreme circumstances, Houphouet-Boigny could well do without French
technical cooperation, given his co~~.ntry's state of development. However, he
- needs France for the propagati~n of a message: the deterioration of the terms
of exchar.ge is accelerating the impoverishment of the African countries because
of the selfishne:s of t.he industrial nationa.
Solidarity
What is Houphouet's obsession? It is cocoa, of which Ivory Coast is the most
important world producer (about 400,000 tons this year, or one-fourth of the world
production). But th;s record is also a curse: consumer countries--with the
United States coming first with 70 percent--are refusing to increase purchase
prices; and Ivory Coast, having refused to sell at the prices imposed, will lose
this year some $265 million. Houphouet has been battling with the industrial
countries for nearly 2 years. He vainly attempted to make Valery Giscard d'Estaing
the spokesman for the Third World in internaticnal negotiations.
The Ivorian president intends to make up for this failure through Francois Mitterrand,
who will meet his Western counterparts and allies in Ottawa on 20 and 21 July.
This meeting of the rich will, of cou;.se, discuss solidarity among industrialized
countries, but ;~lso the preparations for. the North-So>>th summit dialogue to be
held in Mexico in October. Houphouet-Boigny believes that the dialogue will only
be possible if the rich countries of the North accept to remunerate fairly the
less-endowed countries of the Sout': for their products.
The Mitterrand-Houphouet meeting will have been somewhat paradoxical: Mitterrand
is a socialist in France and Houphouet advocates capitalism in ivory Coast. At
the international leve'�_, Hc~uphouet leads the "proletarian" struggle of the producers;
Mitterrand belongs to the well-endowed class.
COPYRIGHT: Jeune Afrique GRUPJIA 1981
CSO: 4719/193
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MADAGASCAR
PRIME MINISTER DISCUSSES 1978-1980 ECONOMIC DEVELOPI~NT PLAN
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 5, 12, 19 Jun 81
L5 Jun 81 No 1856 p 1548; passages between slantlines printed in boldface7
LText/ On 25 May, before the People's National Assembly, Desire Rakotoarijaona, prime
minister of Madagascar, drew up the balance sheet of the 1978-1980 plan, the first ~
socialist plan of the Democratic Republic of Madagascar, also called the "transition
plan." From the prime minister's speech, a few points should be kept in mind.
During the 3 years of the plan, /534.6 billion Malagasy francs/ were used toward its
realization, of which 187.7 billion came from the Nat?onal Development and Economic
Fund (FNDE), and 147.1 billion from foreign countries.
On the whole 79 percent of the plan's objectives were reached for earnings on taxes
and tariffs, the main budgetary resources.
Nevertheless, the results for indirect taxation were not as satisfactory.
Overall, the /decentralized communities/ have slowly taken over all power, especially
in social and cultural matters, "and the central government often cannot keep up with
their dynamism (for example in training school teachers and workers in the health
field, and in supplying materials for health centers)."
The decentralized communities also have an important role in /the fight against cattle
theft/. In this they are helped by the police who back up the mobile quarters the
communities must set up. In 1977-1978 the combined efforts of the fokonolona, the
mobile quarters, and police resulted in an 8 percent reduction in the theft of
cattle; a 16 percent reduction was noted in 1978-1979, and in 1979-1980 there was,
unfortunately, an increase of 45 percent. However, during these 3 years 56 percent
of the stolen cattle were returned, and in 1980 another 21 percent of the dahalo
(thieves) were arrested. That same year a meeting was held in Antananarivo to
decide on measures against cattle theft. At that time a national committee was
under the supervision of the Ministry of the Interior, and all books, passports,
cattle control methods were changed in order to prevent trafficking in cattle.
Another operation was begun, with the first stage ending in September 1980: the Danga
operation of /fighting brush fires/. This operation, on which 361 million Malagasy
francs were spent, had positive results in that the number of brush fires was
markedly reduced and they even disappeared in certain regions. The operation will
continue.
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In order to /fight against continual soil erosion/ and an increase in bare land, the
government has reserved 21 million Malagasy francs for various operations: creating
a training center for foresters in Fianarantsoa, Morondava, and Toliara, industrial
reforestation, regional reforestation and fighting brush fires, establishing nursery
gardens, protecting against erosion, setting up fire-fighting brigades and installing
fire-fighting equipment for brush fires.
For /reforestation/, pine trees were planted in the following manner: 30,000
hectares in Mahatsiatra, 67,000 hectares in Mang~ro, 1,500 hectares in Amparibato,
and 9,000 hectares in the Manjakandiana region. Poplars were planted on 400 hectares
- in Moramanga. To this is added the national reforestation through which 7 i�illion
seedlings were planted over 2,830 hectares (in Antananarivo, Fianarantsoa, Toamasina).
/Agricultural development/ has also been one of the government's main concerns: for
instance the development of food production in order to become self-sufficient. To
this end the government gavE 55.4 billion Malagasy francs, of which 48 billion came
from national banks. This allows the government to reclaim 36,700 hectares of former
colonial land, to buy equipment (including 1,400 tractors), fund the upkeep of
irrigation canals, the use of fertilizers, the construction of warehouses (over
- 405,000 tons of products can now be stocked). At the same time fertilizer factories
were established or expanded (ZeMa and ZeRen).
i
- In /food production/ tl~e country reached 85 percent of the plan's objectives, and ~
for rice alone it was up to 94 percent with state-owned companies participating. ~
Flowever, rice production is not adequate and has to be improved. To reduce flour '
imports (42,000 tons per year) att2mpts at growing wheat are being made, and a
plan for flour mills (Kobama) was set up (for changing 50,000 tons of wheat per
year into 37,000 tons of flour). Peanut production is down. Attempts have been made
to grow soybeans (200 hectares in Mandoto, by the socialist firm Mamisoa, on an area
that is to be expanded to 5,000 hectares).
In /export crops/, no product reached the plan's objectives. For coffee, however,
the recorded yield was 92 percent, in a coffee operation that made it possible to
cultivate 2 million coffee seedlings and increase by 2,000 hectares the area cultivated.
In 3 years, 223,000 hectares of coffee plantation were revitalized.
/Livestock breeding/ benefited from investments amounting to 3.3 billion Malagasy
francs which enabled the country to surpass the target set by the plan. This was due
to the construction of 18 breeding centers and systematic, widespread vaccination.
The development of /sea and fresh water fishing/ was also one of the objectives of the
first socialist plan: 273 million Malagasy francs were thus used to build refrigerator
buildings, to create fishermen's cooperatives, to build premises for technicians, and
to create piscicultural lakes.
~I2 Jun 81 No 1857 pp 1607 1oU87
L'I'ext7 Mines, Energy, and Industry
The prime minist?r stated that during the 3 years of the plan over 55 billion
Malagasy francs were spent on the industrial development of Madagascar, including the
study and exploitation of mineral and energy resources.
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Among the program~ carried out, he mentioned the extraction of 146,530 tons of chromite
in 1980 (64 percent of the first plan target), 12,250 tons of nickel in Toamasina,
Vatomandry, Brickaville, and Moramanga (85 percent of the target), and 580 tons of
fiiCa at Bekily, Betroka, Tsihombe, and Amboa:.,ary (52 percent of the target).
One must also mention the studies done on the extraction of iron in Soalala, Fasintsara,
Bekisopa, Ambatovy, and Betioky, whose natural reserves are estimated at 500
million tons, and the studies done on coal in Sakoa, for which 600 million Malagasy
francs were reserved, and on the phosphorus of the Barren Islands.
A particular emphasis was put on the prospects for the exploitation of the Bemolanga
/bituminous stone/ and for petroleum in Tsimiror. The reserves of Bemolanga are esti-
mated at 2 billion to 3 billion barrels and those of Tsimiror at 7 billion to 8
billion barrels. There is also the exploitation of uranium in Antsirabe, Morafenobe,
and Taolagnaro, with the establishment, this year, of a pilot plant.
In the field of /electricity/, the Namorona center is now in full operation, while
awaiting construction to be completed on the Andekalaka center, which will cost over
31 billion Malagasy francs.
In /heavy industry/ the emphasis is on cement, where the following targets were
reached; up to 52 percent in 1978, up to 47 percent in 1979, and up to 57 percent in
1980. Production still being low, the government decided to set up the Ibity cement
works (forecast: 115,000 tons per year), and to proceed with the expansion of the
one in Amboanio so that it can produce 500,000 tons per year.
For /paper pulp/ 60 percent of the target was reached (17,000 tons of paper). But
18,600 tons of paper pulp had to be imported over a 3-year period. To solve the
problem, papmad expanded at a cost of 2,500 billion Malagasy francs, and studies are
being done to create a new paper pulp factory in the Mangoro region.
In the sector for /industrial equipment/ Secren (formerly the Diego-Suarez arsenal)
is expanding rapidly, and is mainly concerned with building and repairing ships. It
builds 14 small coasters and repairs 50 boats of all kinds annually. In 1980, it came
out with seven prototypes for water-pumps.
The Malagasy National Railways (RNCFM) continues its ironworks operations and runs a
_ factory for manufacturing spare parts. There are also plans for the construction of
a spare parts factory in Moramanga which could solve many problems in this field.
We should also mention the Toly factory which, in 1980, manufactured 1,000 pieces of
farming equipment. It also handJ.es materials for the maintenance of buildings,
ironworks, and all kinds of inechanical operations. Sidema of Antananarivo (with a
branch in Toamasina) specializes in the manufacture of plows (1,000 per year), and of
other farming equipment such as weeders, threshing-machines and carts. The firm was
just supplied with imported equipment to the tune of 120 million Malagasy francs.
In the /textile industry/, Cotona (Antsirabe) and Sotema (Mahajanga) ~roduce over 85
million meters of cloth annually. These factories were greatly expanded in the last
3 years. At the same time the construction of the Sumatex factory in Toliara was com-
pleted.
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In the /food industry/, plans have been completed for a yeast factory in Ambilobe, a
vinegar factory in Antsirabe, an instant coffee factory in Mahajanga, a chocolate
factory in Ambanja, and a brewerie in Toamasina.
And finally, important efforts done in handicrafts should also be mentioned.
Infrastructure and Transportation
In construction and infrastructures, a particular mention should be made of the con-
' struction of the /regional university centers/ (CUR program) in the six faritany, for
which over 30 billion Malagasy francs were earmarked. All the CUR can now admit
students.
For /roads/ large investments made possible the construction of 763 km of paved roads
a�nd 250 km of dirt roads, the upkeep oi almost 700 km of roads paved with asphalt, the
building of 70 bridges, etc., as well as studyinq 1,3Q0 km of roadway. Yet, in fact,
problems still exist for collecting goods and supplying the people with provisions.
That is why light intervention teams (BLIG) were set up within the military engineering
corps. Most of the BLIG equipment ordered abroad has arrived, and soon they will be
able to work on the construction and repair of roads that have economic value.
The targets were reached for /sea and air transport/. Eight vessels were bought in j
1979-1980, of which five were coasters, one oil tanker (Tsimiroro) and two long- ~
distance cargo boats (Mahajanga and Toamasina). I
I
For /air transport/ one Boeing 747 and three HS-748 were bought in 1979-1980. But
efforts in this field are still inadequate.
/Rail transportation/ also got new equipment: three locomotives, 27 tank-cars, 45
ordinary wagons. The prime minister called to mind the disrepair of the railroad
infrastructure, to which 8.75 billion Malagasy francs were given for improvements, in
the second railroad project that involved the development of the TCE line (work has
begun) and the Moramanga--Lake Alaotra line (the necessary materials are already in
place).
For /transportation by road/, in order to help urban transportation, large buses
are presently used in faritany county seats, and 1,000 trucks were ordered, ~f which
400 are already in service, to help with provisions and the collection of products.
Finally, in the area of /information/ and /telecommunications/, the prime minister
brought up the "television sets/ operation (a purchase of 5,730 television sets since
1978) and especially the great telecommunications project for the South (Telecom-
South), costing 4.8 billion Malagasy francs, of which one part (Antananarivo-Fianarantsoa)
is already operational since June 1980. The Telecom-Southeast project (5.5 billion)
will be operational in 1983. Studies are under way for project Telecom-Northwest,
and the connection between Antananarivo and Toamasina passing through Andilamena,
Mahanoro, and Tsiroanomandidy.
Other projects of lesser scope have also been completed (maritime radio, telephone
centers, etc.).
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~9 Jun 81 No 1858 p 1667/
LText7 In his speech on economic assessment, on 25 May, before the People's National
Assembly (see MTM of 5 June and 12 June), Malagasy Prime Minister Desire Rakotoarijaona
spoke at length on the question of "socialist enterprises" that came into being through
the nationalization of large, key industries.
At present, the "revolutionary power" is in the majority in 62 enterprises repre-
senting a total capital of over 27 billion Malagasy francs. In the business sector,
19 firms are owned outright by the sta te which isthe.major partner in three other
firms. Wholesale trade is in the hands of state-owned companies that have agencies
in all countries: Coroi ~ank of Commerce and Representation for the Indian Ocean7,
Roso, Sice, Sinpa ~ational Agricultural Products ~ompany], Somacodis LMalagasy
Collection and Distribution Company7, Somaco, Sogedis. Then the prime minister pre-
sented the financial situation of the main companies:
Coroi: a sales figure of 30.55 billion Malagasy franr..s in 1980, with a net profit of
776 million; Roso: a sales figure of 27.57 billion in 1980 and a net profit of 571
million; Sice: 9.85 billion in sales figures and 576 million net profit in 1979;
Somacodis: a sales figure of 20.3 billion and 800 million in net profits in 1979;
Sogedis: a sales figure of 5 billion and a net profit of 78.3 million in 1979.
At present, the structure of the Sinpa and Sonaco management is under study, because
changes should be made so that the firms can become fully operational. Very soon
their orientation council will be set up.
Mr Rakotoarijaona estimates that in spite of some firms which do not draw up their
balance sheets on time it can be said that, on the whole, the state-owned firms are in
full development.
These firms are not only involved in trade, they are also investors and deal with
collection and provisions. Thus Sice, Sinpa and Roso have invested 15 million Malagasy
francs in Transept (Transit-Transport); Sogedis invested 31 million in Socobis (biscuit
factory), and Corol invested 397 million in ZeMa~and ZeRen (fertilizers). Overall,
the total investment by Sice, Sogedis, Somacodis, and Roso amounted to 1,305.9 million
Malagasy francs in 1979.
The banks also participate in the creation of firms. Thus the three national banks
have invested 551 million in firms like Tamalu, ZeRen, ZeMa, Sonaco, Socobis, etc.,
as well as 1.4 billion in the business sector during the 3 years of the Plan. The
national insurance companies Aro and Ny Havana have invested 136 million.
COPYRIGHT: Rene moreux et Cie Paris 1981.
9465
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~ MADAGASCAR
PERMANENT SOVIET ECONOMIC INFQRMATION CENTER OPENED IN ANTANANARIVO
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 19 Jun 81 p 1667
/Editorial: "The Soviet Union Is Interested in the Malagasy Market"7
~ext7 A permanent Soviet economic center was officially opened on 4 June in Antananar.ivo,
on the occasion of the first exposition organized in the Malagasy capital by the
chamber of commerce and industry of the Soviet Union, and which ran from 5 June to 12
June.
, Mr Valeri Chpakov, director of Soviet expositions, explained that the aim of the center
and the exposition was to strengthen ties with the Malagasy business community, to
9ive information on the potential of Soviet exports in order to strengthen the economic
and trade cooperation between the two countries.
The volume of trade between Madagascar and the USSR, according to a Soviet official,
has risen to $53 million between 1976 and 1980.
Malagasy exports ($31 million for that period) are mainly agricultural in nature,
while Soviet sales to Madagascar (22 million) are mainly of heavy equipment, including
1,200 tractors and 300 trucks.
The prospects for 1981, still according to the Soviets, are for the sale of 4,000 tons
of coffee and other agricultural products to the USSR, and Madagascar would, for instance,
buy an Antonov 26 and 300 light underground vehicles.
Let us also mention that on 27 May a Soviet-Malagasy agreement was signed at the
Malagasy Foreign Ministry for the construction of the Ampitambe-Marolambo road section
(255 km). It is mainly a matter of paving the highway (with asphalt), the structural
work having already been done by the Italian firm Gambogi Construzione. It is a
section of the "harmony road" which, when completed, will link the North to the South
along the coastline.
COPYRIGHT: Rene Moreux et Cie Paris 19ti1
9465
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MOZAMBIQUE
~ BRIEFS
, AERIAL SPRAYING--~n agreement signed between the TTA state company and the Mozambique
_ Sugar Refinery will m~ke it possible to bzgin this year to apply weed killers to the
sugarcane plantations in Dondo by aerial spraying. This change will enable the 350
; persons engaged in manual spraying to date to turn to other activities, resulting in
a substantial manpower saving. It is planned, moreover, to use aerial spraying for
~ fertilizers as well. Two landing strips will be provided. [Text] [Paris MARCHES
TROPICAUX ET Mr;DITERRANEENS in French No 1859, 26 Jun 81 p 1732] [COPYRIGHT: Rene
Mo�reux et Cie Paris 1981~] 5157
COAL TRe1NSPORT DIFFICULTIES--The CFM [Mozambique Railroad]-Center company has under-
taken to transport the initial coal tonnage needed tu achieve the production goal of
the CARBOMOC [Mozambique National Coal Company], despite the difficulties it has
experienced, particularly in the oparation of the Moatize-Mutarara line, where the
maintenance is substandard, resulting i~ numerous derailments. Where the coal is
concerned, the fact is that the production of CARBOMOC substantially exceeds the
number of railroad cars available for its transport, because a substantial number of
these cars are in practice being used to store fuel and are not in circulation as they
should be. The railroad management would like ta speed up and plan rotation more
strictly such as to avoid delays. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS
in French No 1859, 26 Jun 81 p 1732] [COPYRIGHT: Rene Moreux et Cie Paris 1981]
! 5157
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NIGER
i BRIEFS
~ FKENCH LOAN FOR AQUACULTURE--The Nigerien Council of Ministers adopted a draft
i ordinance on 24 June authorizing the president of the Supreme Military Council,
the head of state, to negotiate a loan for 7.I million French francs, which is the
equivalent of 355 million CFA francs, from the Central Fund for Economic Coopera-
; tion (CCCE). The loan is intended to help finance the planned development of
~ Niger's aquaculture through intensive fish breeding operations. [Text] [Paris
MARCHES TROPICAUX ET MIDITERP.~TEENS in French 3 Jul 81 p 1770] [COPYRIGHT: Rene
Moreux et Cie Paris 1981] 8796
WINDING UP OF PUBLIC WORKS COMPANY--Shareholders of the National Company for Large
; Projec ts of Niger (SNGTN) held a special meeting on 16 June and announced that, as
of that day, the company was dissolved. Baoua Abdou was appointed as liquidator
together with a state inspector who will be named at a later date. All the liqui-
, dation operations must have the approval of the Niger Government. All mail must
~ be addressed to: SNGTN, Company in Liquidation, (P.O. Box 11623) Niamey. [Text]
[Paris MARCHES TROPICAUX ET MIDITERRANEENS in French 3 Jul 81 p 1770] [COPYRIGHT:
Rene Moreux et Cie Paris 1981] 8796
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NIGERIA
BRIEFS
CONSTRUCTION AT ABUJA--At the end of June, the firm of Scott, Wilson, Kirkpatrick
and Partners signed a 250-million-pound-sterling contract for a study and develop-
ment project concerning highways, bridges and drainage systems, etc., in the center
of the future federal capital at Abuja. The pro~ect involved the spreading out
of certain sections of heavily traveled highways over the outskirts of the city.
The Lagos f irm of Gomel Engineering will also be involved, for its part, in the
design of this project. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in
French No 1860, 3 Jul 81 p 1773] [COPYRIGHT: Rene Moreux et Cie Paris 1981.] 9434
COOPERATION WITH POLAND--The joint Polish-Nigerian commission recently held its
second session in Warsaw. The Nigerian delegation, of some 10 members, which ar-
rived in the Polish capital was led by the federal planning minister, Mrs Adenike
Ebun Oyagbola. The commission's work dealt with the study of pro~ects undertaken
under the bilateral economic, technical and scientific cooperation agreement signed
in 1978. The Nigerian minister recalled that Poland had been the first socialist
country to sign such an agreement (MTM of 24 March 1978, p 843). [Text] [Paris
MARCHES TROPICAUX ET MEDITERRANEENS in French No 1860~3 Jul 81 p 1773] [COPYRIGHT:
Rene Moreux et Cie Paris 1981.] 9434
' DISCUSSIUNS WITH IRAN, GABON--At the end of May, the Nigerian vic~: president re-
ceived the Gabonese oil minister, M'Bouy-Boutzit, and his Iranian counterpart, Seid
H. Sadat, with whom he held some conversations preliminary to the OPEC conference.
During the conversations, the current overabundance of crude oil on the market caused
by the production policy of one or two member countries was judged to be "artificial
and dangerous to the economies of the other countries in the organization." [Text]
[Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1860~3 Jul 81 p 1773]
[COPYRIGHT: Rene Moreux et Cie Paris 1981.] 9434
SOLAR ENERGY--A solar energy research center is to be constructed at Umunyem Nkwerre,
in Nigeria. This center is intended for the discovery of agricultural applications.
[Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1860~ 3 Jul 81 p
1773] [COPYRIGHT: Rene Mareux et Cie Paris 1981.] 9434
RUBBER PRODUCTION--The rubber research institute of Iyanomo, situated near Benin,
in the state of Bendel, is engaged in the selection of hevea seeds for the moderni-
zation and expansion of plantations in the country as a whole. According to the
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institute's director, Dr E. K. Okaisabor, this seed selection should make possible
an average production of 3 tons of latex per hectare. [Text] [Paris MARCHES TROP-
ICAUS ET MEDITERREINEENS IN French No 1860,3 Jul 81 p 1773] [COPYRIGHT: Rene Moreux
et Cie Paris 1981.] 9434
POWER STATION NEAR LAGOS--The Japanese firm Hitachi announced, at the end of June,
' that an international consortium, which included, beside itself, Marubeni Corp.
and the French company Bouygues, had received from Nigeria a letter of intention
concerning the construction of a thermal power station near Lagos, valued at 180
billion yen. The contract will probably be signed with the Nigeria Electricity
Power Authority (NEPA) next August. This would provide for the installation of
six 200,000-kilowatt, oil-fueled generators and for the construction of housing
for some 340 persons. [Text) [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French
No 1860,3 Jul 81 p 1773] [COPYRIGHT: Rene Moreux et Cie Paris 1981.] 9434
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RWANDA
I~
~ BRIEFS
ECONOMIC PROJF~TS--The following socioeconomic events are foreseen for Rwanda dur-
ing the year: opening the hospital at Kabaya (Gisenyi); opening the tea factory
at Mata (Gikongoro); beginning construction of the tea factory at Gisovu (Kibuye);
~ expansion of two tea factories--the Mulindi factory (Byumba), from 3,000 to 3,500
; tons of black tea per year, and the Pfunda factory (Gisenyi), from 500 to 1,000
tons per year; opening the Meridien Ibuza hotel at Gisenyi. [Text] [Paris MARCHES
TROPICAUX ET MEDITERRANEENS in French No 1860, 3 Jul 81 p 1781] [COPYRIGHT: Rene
Moreux et Cie Paris 1981.] 9434
DEMOGRAPHIC STUDY--From 16 to 31 August 1981, Rwanda will undertake a demographic
study, "certain data not having been properly apprehended by the 1978 census," it
was decided on 12 May by the Government Council (Council of Ministers) of Rwanda.
During the 1978 census (the study of which is not yet complete), some minority pop-
ulations, such as the Bahima (in the north of the country) left Rwanda with their
cattle to settle in Uganda. The Government Council calls on the population to re-
main calm during this new study and has issued a warning against the troublemakers
"who take advantage of these technical operations to frighten off good people."
[Text] [Paris MARCHES TROPICAUX ET MEDITERRAN~ENS i~ French No 1860, 3 Jul 81 p
1781 [COPYRIGHT: Rene Moreux et Cie Paris 1981.] 9434
i
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SENEGAL
NATIONAL ASSEMBLY ADOPTS SIXTH DEVELOPMENT PLAN
Paris MARCHES TROPICAUX ET MIDITERRANEENS ixi French 3 Jul 81 p 1766
[Text] The Sixth Plan of Econamic and Social Development, the main trends of which
MARCHES TROPICAUX has already reported (see MARCHES TROPICAUX ET MIDITERRANEENS of
17 Apr il pp 1124, 1125) was adopted by the Senegalese National Assembly on 26 June
despite a negative vote cast by the deputies of the opposition party (PDS)
[Senegalese Democratic Party]. The Sixth Plan, which went into eff ect on 1 July
and will run through 30 June 1985, was previously studied by a joint commission of
the Planning and Finance Commissions on 20, 21 and 23 June.
The Sixth Plan calls for an overall capital expenditure of 464,789 million CFA
francs as compared to 397 billion CFA francs required by the gevious plan (1977-
1981) which was fulf illed by 73 percent.
Internal financing sources will provide 117,875 million CFA francs of which 48,824
million will be supplied by the national capital budget. External sources will
contribute close to 346 billion CFA francs. From this figure, one must substract
16b billion CFA francs already procured (and reallocated from the Eifth to the Sixth
Plan) to finance pro~ects which were not carried out under the previous plan. Tak-
ing into account 50 billion CFA francs worth of expected subsidies, only 130 bil-
lion CFA francs worth of external funding will have to be found.
An introductory report notes that the new plan anticipates an annual rate of growth
of 3.5 percent. That report also points out that the plan comes at a diff icult
time because Senegal, a Sahel and nonoil country, has suff ered the eff ects of the
drought and of the world economic crisis. This is why the Sixth Plan will place
emphasis on direct revenue earning investments in accordance with the recovery pro-
gram (1980-19F35) introduced 2 years ago to achieve an economic and financial take-
off.
In the Sixth Plan, priority is given more particularly to cutting down energy de-
pendency (Senegal's oil bill has jumped fram 5 billion CFA francs in 1972 to 50.6
billion in 1980) by extracting oil and mining lignite and peat, and to the problem
of water resources to make agriculture less dependent on rainfall. Another priori-
ty is self -sufficiency in food supplies. Senegal's f ood bill--mostly rice imports--
is estimated to be 36 billion CFA francs.
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The Senegalese plan is going to allocate 151,851 million CFA francs (or 34 percent
of its total outlays) to the secondary sector and 106,652 million (or 24 percent)
to the primary sector with half of this sum going to agriculture.
Moreover, 99,276 million CFA francs will be allocated to the tertiary sector (or
22 percent of the total) and when the Sixth Plan is completed the results will be
more hotel accommodations, a repaired road networl:., production trails built and
new main roads such as the roads between Louga and Mankhan and between Kedougou and
Saraya. The carrying capacity of SOTRAC [Mass Transit Company] will be inereased,
the railroad tracks restored and the telephone network improved.
Finally, 90.699 million CFA francs (or 20 percent of the total outlays) will be
assigned to the quaternary or social sector where the main projects under con-
- sideration are, among others, to build 2,000 low-cost classrooms, to create tech-
nical education centers, to operate first aid and cultural centers, to build the
Friendship Stadium. Other projects are the high school and hospital in Tamba, the
Railroad Administration's vocational school in Thies, the regional high school in
Louga and the expansion of the program of "rehabilitated areas" in other regional
capitals.
According to Louis Alexandrenne, Senegalese minister for planning, it will be pos-
sible to mobilize the financial resources to pay for this plan because the burden
of Senegal's external debt (which was 230 billion CFA francs in f iscal 1979-1980)
and the cost of servicing that debt will decline in the coming years since, from
now on, Senegal will try its best to seek loans at low interest rates similar to
the loans granted by the World Bank. This bank and the International Monetary
Fund have decided to contribute to the implementation of the Senegalese plan.
According to the minister, this caming October the World Ba.nk will sponsor a Paris
- meeting of financial backers to get foreign credits for Senegal.
During the parliamentary debate, Mamadou Fall Puritain of the PDS criticized the
technical advisers of the Senegalese Ministry of Planning: "The Sixth Plan was
drawn by foreigners, a fact which does not bring much credit to us since we know
that our own cadres could have worked it out. As f or Fara Ndiaye (PDS), he said:
"This plan is, in our view, the expression of"a policy which we condemn. A policy
that has opted f or economic stagnation, for economic dependency. The plan seeks to
achieve an overall rate of growth of 3.5 percent. But considering that during that
same period Senegal's population will increase at the annual rate of 2.7 percent,
the real rate of growth will be 0.8 percent." Finally, Joseph Mathiam (Socialist
Party) deplored that the regional budgets were not included in the p1an.
COPYRIGHT: Rene Moreux et Cie Paris 1981.
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SENEGAL
BCEAO GIVES STATISTICS ON RECENT ECONOMIC DEVELOPMENTS
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 3 Jul 81 pp 1766, 1767
[Text] One of the latest reports on economic and monetary statistics issued by the
Central Bank of West African States (BCEAO) deals with Senegal.
The main agricultural products marketed during the 1979-1980 farming year were:
393,400 tons of oil-yielding peanuts (down by 381,000 tons compared to the previous
crop year); 26,868 tons of cottonseed (down by 6,934 tons); 121,100 tons of paddy
rice (down by 5,900 tons) and 45,400 tons of corn (down by 1,400 tons) which in
terms of money represent 17.9 billion CFA francs (down by 14.2 billion) f or oil-
yielding peanuts, 1.5 billion CFA francs (down by 0.2 billion) for cottonseed, 5
billion CFA francs (down by 0.3 billion) for paddy rice and 1.7 billion CFA francs
(down by 0.1 billion) for corn.
At the beginning of the current 1980-1981 crop year, the prices paid to the farmers
f or their product increased from 45.50 to 50 CFA francs per kilo of oil-producing
peanuts and from 55 to 60 CFA francs per kilo of cottonseed.
The low yields of the 1979-1980 farming year were ref lected in the amount of pea-
nuts delivered to the oil mills--241,400 tons for the first 7 months of 1980--and
in the volume of exports which, for the first three quarters of 1980, amounted to
49,300 tons of unref ined oil (down by 45,600 tons), 6,400 tons of refined oil (down
by 5,600 tons) and 89,900 tons of oilcake (down by 71,600 tons).
In 1980, the phosphate industry produced 1.4 million tons of calcium phosphate
(down by 200,000 tons) and 224,000 tons of alumine phosphate (down by 40,000 tons);
1.3 million tons of calcium phosphate were exported (dawn by 100,000 tons).
In 1980, 131,000 tons of clinker (up by 52,000 tons) and 371,000 tons of cement
(down by 8,000 tons) were produced.
The tuna fishing industry brought in 8,300 tons of catches in 1980 (800 tons less
than in 1979) which went to the local canning factories.
Auring the first 8 months of 1980, the international airport of Dakar registered
9,779 commercial flights and the arrival and departure of 375,300 passengers and
4,900 tons of freight.
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The industrial production index, oil-mills excluded, xegi,stered a significant de-
cline: 157.8 by the end of the third quarter of 1980 campared to 189.5 a year
earlier (taking as a basis the figure 100 set f or 1969).
The same trend appears in the commodity turnover index of major commercial ente~-
prises: 208 by the end of December 1980 campared to 219.6 at the end of December
1979 (taking as a basis the figure 100 set for 1970).
At the end of February 1981, the general price index for the consumption of an
African f amily in Dakar was 283,3 compared to 274.1 at the end of March 1980 (on
the basis of the figure 100 set for 1970). On 1 January 1981, the interoccupation-
al guaranteed minimum wage was raised from 133.81 to 140.50 CFA francs.
The general budget for the July 1980-June 1981 fiscal year was set at 137.6 billion
CFA francs (3.4 billion more tha.n in the previous budget); it includes 17 billion
CFA francs of revenues generated by external contributions (up by 2 billion) and
22 billion CFA francs of capital credits (down by 2 billion).
The duties and taxes collected by the customs services amounted to 50.6 billion
CFA francs for 1980, 96 percent of which represented import duties. The receipts
for January 1981 totaled 3.8 billion CFA francs.
By the end of December 1979, the exchange value of Senegal's external debt was
133.1 billion CFA francs at the present rate of exchange (up by 28.3 billion for
- the year) and the exchange value of the available reserves of unused credits was 99
billion CFA francs (up by 12.2 million). In 1979, the servicing of that debt
(interest and amortization) required 22.6 billion CFA francs (2.8 billion more than
on the previous year).
The paper money supply (bills and coins) amounted to 56 billion CFA francs on
31 December 1980 (an increase of 4.1 billion for the year). At the end of
November 1980, the volume of checking account deposits and term deposits collected
by the banking system was 123.4 billion CFA francs (an increase of 8.7 billion CFA
francs over a period of 11 months). On the other tiand, 259.4 billion CFA francs
of credits to the economy had been disbursed by 30 November 1980 (17.5 billion
more than at the end of December 1979) and the main recipients of these credits
were the business and construction sectors and the food industry.
Also on 30 November 1980, the Senegalese Treasury had a local debt of 17.2 billion
CFA francs i.ncluding a 12.7 billion deficit in the Central Bank compared to a 19.2
billion def icit at the end of December 1979 (9.2 billion of which were advances
fram the Institute of Issue). The situation with regard to external assets has
deteriorated showing a deficit equivalent to 95.4 billion CFA francs on 30 November
1980 compared to 79 billion at the end of December 1979.
COPYRIGHT: Rene Moreux et Cie Paris 1981.
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SENEGAL
' BRIEFS
i NEW INVESTMENT CODE--A new Investment Code was passed on 27 June by the Senegalese
' National Assembly. The new code which, according to its preamble, is intended to
act as an incentive, offers further advantages to enterprises based outside the
Dakar region; it relaxes conditions for approval, conf ines to direct taxation the
i stabilization clause in favor of contractual enterprises and grants added value
incentive payments. The code envisages exemptions for rents=p~id on account of
leasir.:~, for interests stemming from loans, f or spare parts (restricted to 100
percent of the cost bef ore taxes) and for the fuel used in permanent installations.
What Senegal is trying to achieve with this new code is to attract annual invest-
ments of 100 billion CFA francs and to generate 8,000 additional jobs per year,
- said Habib Thiam, the Senegalese Prime Minister, in a speech which he made last
January at the National Assembly. [Text] [Paris MARCHES TROPICAUX ET MIDITERRANEENS
in French 3 Jul 81 p 1765] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796
1981-1982 BUDGET--On 12 June, the Senegalese National Assembly adopted the draft
~ budget for the 1981-1982 fiscal year with revenues and expenses set at 220,169
million CFA francs representing an increase of 26,756.78 million CFA francs (up by
11 percent in relative value) campared to the previous budget (193,412.22 million
CFA francs). The general budget is based on three chapters: the operational bud-
get (125,493 million CFA francs), the investment or capital budget (55,602 million)
~ and the treasury speci.al accounts amounting to 39,074 million CFA francs. Com-
pared to the budget Freviously~prepared by the Senegalese Government (see MARCHES
TROPICAUX ET MIDITERRANEEDIS of 10 April 1981, page 998)--212.17 billion CFA francs
for revenues and 211.19 billion CFA francs for expenses--one can see that apart
from a net increase of more than 8 billion CFA francs, there is a complete redistri-
bution of ap propriations among the various chapters of the general budget. But
while the operational budget remains the same as in the government's draft budget
(125.5 billion CFA francs in both cases), the capital budget jumps from 21.2
billion CFA francs in the draft budget to 55.6 billion and the special accounts
drop from 65.5 billion in the government draft to 39 billion CFA francs in the
budget voted by the assembly. [Text] [Paris MARCHES TROPICAUX ET MIDITERRANEENS
in French 3 Jul 81 p 1766] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796
LOAN TO ICS--A co~unique issued by the World Bank, on 25 June, states that this
bank has granted a$19.3 million loan to Senegal to help finance the construction
of a railroad to transport raw materials~ supplies and goods involved in a project
of the Chemical Industries of Senegal (ICS) to produce fertilizers. [Text] [Paris
MARCHES TROPICAUX ET MIDITERRANEENS in French 3 Jul 81 p 1767] (COPYRIGHT: Rene
Moreux et Cie Paris 1981] 8796
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SOUTH AFRICA
BRIEFS
SECRET NEGOTIATIONS WITH USSR--Secret negotiations continue between South Africa and
the USSR to gain joint control of the morld market for strategic materials. The
South African company Anglo-American is reported to be talking mainly with Boris
Sergea, deputy chief of the Soviet office for trade in platinum and diamonds. (Text]
[Paris JEUNE AFRIQUE in French No 1072, 22 Jul 81 p 35) [COPYRIGHT: Jeune Afrique
GRUPJIA 1981]
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TANZ.AN IA
MINISTER PRESENTS ECONOMIC PLAN ESTIMATES
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 3 Jul 81 pp 1779, 1780
[Text] On 18 June, Kighoma, Tanzanian minister of state for planning and economic
affairs, presented to the National Assembly in Dar es Salaam the 1981-1982
estimates and economic plan. On that same day, Amir Jamal, Tanzanian finance
minister, outlined the draft budget for that f iscal year (see MARCHES TROPICAUX ET
MEDITERRANEEN~ of 26 June 1981, page 1725).
Professor Malima told the assembly that "in view of the economic difficulties en-
countered during the 1980-1981 fiscal year which are still present," "concrete and
strong" measures will be taken to strengthen and develop the economy. These
measures encompass the ones ccntained in the National Economic Survival Program
which continues to be implemented. They are:
--to increase and strengthen food production;
--to go ahead with an economic restructuration and to increase productivity in all
sectors of production of goods and services;
--to improve the people's living conditions in villages with better social and
economic services;
--to ~ncrease foreign reserve earnings by boosting foreign trade through the sale
of more animal farming products and through the exploitation of natural resources
(fishing, mining) while directing the processing industry toward the domestir_ and
export markets.
The higher food crops which are expected for 1981-1982, as a result of a greater
acreage of planted areas and improved storage facilities, should enable the National
Milling Corporation (NMC) to purchase during that period 200,000 tons of corn,
60,000 tons of rice, 45,000 tons of wheat, 50,000 tons of sorghum and millet,
60,000 tons of cassava and 40,000 tons of beans.
Estimated figures for cash crops during the fiscal year are: 55,000 tons of coffee,
64,800 tons of cotton, 101,000 tons of sisal, 60,000 tons of cashew nuts, 20,700
tons of tobacco, 20,000 tons of tea and 3,000 tons of pyrethrum.
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The GDP (gross domestic product) could increase by 4.5 percent in 1981, compared to
3.6 percent in 1980, as a result of the pr oposed measures, Malima said.
The minister of state also noted that the lack of foreign reserves are making it
difficult to implement the 5-year plan. For instance, during fiscal 1979-1980, the
plan had called for an expenditure totaling 8.15 billion Tanzanian shillings for
1,985 projects. But, in fact, only 328 projects (16.5 percent of the total number)
could be carried through during that period while 27 others had to be postponed and
109 were not started at all. Overall material targets set for these projects were
only met by 40.5 percent and projected expenditures by 56.3 percent.
In its financial aspect, the program for the fiscal year ending on 30 June 1981 was
only fulfilled by 67.2 pecent representing 4.7 billion shillings.
For the 1981-1982 period, the development program will count with the following
credit increases: 20.9 percent more banking credits (3.05 billion shillings), 24.1
percent more public loans from banking institutions (2.85 billion shillings) and
15.5 percent more banking credits in the private sector (1.1 billion shillings).
Professor Malima added that Tanzania's foreign reserves would decrease by 400 mil-
lion shillings during the 1981-1982 period, a similar drop to the one registered
during the previous fiscal year.
The plan allocates 10.81 billion shillings to fiscal 1981-1982, compared to 10.66
billion shillings allocated to the previous year. That figure includes actual
government credits and resources which the Tanzanian quasi-publi..c companies may
manage to obtain by their own means (their own funds and loans) which are estimated
to amount to 4.19 billion shillings.
That total will be divided with 53 percent of it going to the sector known as
"productive," 32 percent to economic infrastructures and 15 percent to social infra-
structures. Let us point out that the development budget of the Tanzanian state
for 1981-1982 will be reduced to 6.62 billion shillings while for the 1980-1981
period it was 7.11 billion (down by 6.9 percent). But this cutback is minimal
since only 4.78 billion shillings could be assigned to the development budget during
the fiscal year just ended.
The projects included in the plan are divided into two categories, A and B. Only
the first category counts with fully identified funding. As a result of the eco-
nomic difficulties confronting Tanzania, only 5.8 percent of the expansion budget
will be assigned to new projects.
The expansion budget for regional government services gives priority to social ser-
vices (35.3 percent of the 738 million shillings allocated to the regions).
COPYRIGHT: Rene Moreux et Cie Paris 1981,
8796
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TANZANIA
OBJECTIVES OF PROGRAM FOR ECONOMIC SURVIVAL NOTED
London NEW AFRICAN in English No 166,Ju1 81 pp 52, 53
~Article by Kusai Ka.misa~ .
~Text~
FROM THI3 MONTH3, Tanzania will Economista are optimietic that the
embark on an intensive and comprehen- government will, in reaponding to
eive'Pragraanme for Economic Survival'. demanda of the plan, offer more incen-
It will aim at atimulating agricultural tives to the peaeanta than at any point in
and industrial production in a bid to history in order to realiee the goale.
reactivate the economy ae part of the Briefing reporters atter the NEC meet-
country's fourth five-year development ing, Mwakawago said the eurvival plan
p~, waa conceived on account ofthe country's
The programme, detaile of which have current economic probleme, especially
not been published, was adopted by the with regard to constrainta on foreign
ruling Chama Cha Mapinduzi (CCM) exchange�
National Executive Committee during "The aim of the plan is to do everything
its recent four~lay meeting in Dar es poasible ourselvee to reactivate the
Salaam under the chairmanahip of Prea- economy without waiting for external
ident Juliua Nyerere. aesistance", he explained. This would be
After thorough discussion by the com- achieved by consolidating present
mittee, the programme drafted by the ~pital-generating projecta and provid-
government, wae adopted and referred ing the necessary inpute and credits,
back to the government for implementa- eapecially in rural aress and other
tion. productive sectora.
According to CCM chief executive The NEC aleo endorsed and reiterated
secretary Daudi Mwakawago, one of the Yresident Nyerere'arejection of'claims by
plan'a prime aim ia to achieve in the ~rat the W estern and Western-oriented mass
12 montha an export target of agricul- media that Tanzania's preaent economic
tural and industrial commodities in difficulties are due to her socialist
excees of Shs.6,000-million which ia policies. '
Sha.1,000-million over the 1979/80
- period. � ~le
Among important factors of produc-
tion, the country's 8,000 Ujamaa vil� In Tabora, central Tanzania, President
lagea, where at least 14-million of the Nyerere urged his country's workers and
1&million Tan7anians live, are going to the peasantry to ignore claims by
play a key role in realising the gaals of enemiea that present difficulties were
the'survival plant'. due to socialiam. He deacribed such
With the exception of tea and aisal, claime as "preposteroua howlings of
other foreign exchange earners including idiots". Even the leader of the capitalist
cotton, cashewe and coffee are mostly world, the United States, he said, was at
grown by "socialiat unit" workers. present experiencing aerious economic
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,
prubl~mK."Ilur+l,h~�U9quneeociuliat'?"he the pmepect of immediate improvement
aaked. is bleak. But given the will to increase
He emphasised Tanzanians would not production, ready availability of export
abandon socialism because the reverse credita on softer terms, introduction of an
was "a system of legalised slavery and effective export credita on soRer terme,
~ robbery". "We did not achieve indepen- introduction of an effective export incen-
dence to have a few in our midst fattening tive acheme and above all our deaire and
themselves with the sweat of others. initiative to work together to overwhelm
Socialism is equality and justice. Capital- the problems, the impmvement of the
ism is inequality and injustice," he said. balance of payment position may be
During the past five y~ars, Tanzania difficult but not irreversible.
remained predominantly an agricultural
economy, according te the country's
Board of External Trade, with 93 per cent (r'1'pd@ Q~
of the economically active population
engaged in agriculture. The agricultural At present 60 per cent of the export
sector has been responsible for the earnings pays for the 700,000 tonnea of
generation of about 70 per cent of the imported crude oil compared to 10 per
total export earnings, while the rest, cent which paid 800,000 tonnes in
including mining and manufactunng. 1972/73. The 100,000 tonnes reduction
contributed 30 per cent. has been achieved through rationing and
Whereas exports in the 1975/80 period evolving alternative saurces of energy
grew from Shs.2,589.3-million to such as hydro electricity to run factory
Sha.4,355-million, representing a grou�th ~chines inetead of diesel.
of 71 per cent, imports soared from 'The economic survival plan ~nvisages
Shs.5,303.4-million to Shs.10.403- to use self-reliance as a sure, the neareat
- million, representing a rise of 96.1 per and best meana at the diapoeal of the
cent. people to obviate the experience of an
These figures show a trade deficit of obviously worsening immediate future.
from Shs2,714.1-million in 1975 to "No economist betievea that producera
Shs.6,048-million in 1980, an increase of of oil or finiehed producte whic we need
123 per cent. The deficit ia expected to badly will ever be aympathetic to the
rise to Shs.6,257-million by the end of the plight of countriea like Tanzania," One
y~r party official said, "We can only beat the
Some of the external factors which, aituationby the correct application of our
_ according to the board, are responsible own resources:' �
for thia bleak picture are adverse Meanwhile, it has been announced
weather conditiona, imported inflation here than an ambitious coffee industry
and world recesaion. development programme aimed at raie-
The internal factors include production ing production frnm the present 65,000
inefficiencies, transportation and otjer tonnea a yearto 80,000 tonnea by 1985/86
related bottlenecka, and uneatiafactory will be launched in October this year.
payment to growera. The programme, to be finenced jointly
In a paper on export promotion, the by the Tanzania Government and the
director-general of the Board of External European Economic Community, will
Trade, M.K. Mwandoro, concludea: cost Sha.900-million with the EEC meet-
"Presently our balance of payment ing the externai expenses amounting to
poaition is unhappy, the performance of Shs.400-million. The scheme is to be
our export sector ia unsatiafactory and undertaken as Lome II-aided project.
COPYRIGHT: 1981 IC Magazines Limited
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TANZANIA
FURTHER PETROLEUM CONSERVATION MEASURES
London NEW AFRICAN in English No 166,Ju1 81 p 30 ~
~Article by Abdulla Riyami~
~Text~
THE TANZArIIAN Government has meagre foreign currency reserves. He
announced further meaeure~ to coneerve said Tanzania was expected to apend over
petrol in the face of rising crude oil pricee US~ 364-million this year against a 1973
and lack of foreign e:change. Deputy t`igure of U3a 29-million. �
Minister for Water a~l Energy Edgar The new measurea meant 41 per cent of
Maokola M~jogo eaid petrol would onlq regular petrol and lb per cent ofpremium
be eold for three daye a week - Mondays, petml would not reach the market.
Tuesdays and Wednedays. Keroeine and aircraft fuel would not be
He addei that previous reetrictione, effected�
such se rationing petrol for public
vehicles to between 60 and 70 litres a IIOt CSi'S
week would be enforced, and that epecial
permits iesued previously to certain In 1978, the Tan7snian government
vehicles had been withdrawn. A reatric- epent eome $118.5-million in importing
tioe an 3unday driving was being strictly 1,025 tonnee of fuel, and last year it spent
enforced and petrol wouW aot be sold on an eetimated $2,990-million.
public holidays, Minieter Majogo eaid. � According to the Petroleum Intellig-
In ordcr to deal with the energy ence Report, which gathera information
problem effectiveiy, a National Energy from World Bank, IlVIF, UNCTAD�and
Committee has been ~et/ up to ensure OECD official recorda, major oil com-
ooneervation regulatione are complied panies are atill "minting money" at the
with. Regional and district committees e=penee of primary production at a tune
wil~ aleo be fbrmed to enforce the when the ~ purchasing power of poor
measuree. countriea is diminiehing. Britiah Pet-
Appealing to the public to help the roleum (BP) increased ita net income by
government conserve fuel, the minister 302 pet cent between January and
said that before 1973 a barrel of crude oil 3eptember 1979 when producer prices
sold at a2.6. After the Ieraeli-Arab war had gone up by only 31 per cent. ~
'the prioe went up to;11.6 a barrel. 3ince President Juliua Nyerere adviaed reei-
then fuel prices have rieen astronomi- dente in Dar es Salaam recently that
cally, reaching =38.8 a barrel. ' where poeeible they ehould use non-fuel
He eaid price increaeee for. crude oil coneuming tranaportation auch as carta,
were reflected in the price of r~ned oil inetead of depending on petrol or diesei-
thue forcing Tanzania to dig deep into its driven vehiclea.~
COPYRIGHT: 1981 IC Magazines Limited
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TANZANIA
BRIEFS
SWEDISH, YUGOSLAV, NETHERLANDS AID--Tanzania is to receive Shs. 3,600-million
(b211-million) over the next three years from Sweden, Yugoslavia, and Holland to
fund projects in industry, health, forestry, rural water supply, energy, tele-
communications, education and financial and technical development. Air Tanzania
will also benefit from the aid package. Tanzania and Mozambique are to increase
trade links. Tanzania will export an initial 600,000 hoes to Ma.puto to be followed
by alluminium products, cocoa and coffee beans and textiles, and will import among
other products, truck and tractor tyres, and welding components. A Tanzanian
official called the agreements a milestone toward the objectives of the Southern
African Development Co-ordina.tion Council (SADCC) to which Angola, Zambia, Zimbabwe,
Malawi, Botswana, Lesotho, and Swaziland also belong. ~Text~ ~London NEW AFRICAN
in English No 166, Jul 81 p 56~ ~OPYRIGHT: 1981 IC Magazines Limited7
CSO: 4700/270
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ZAIRE
BRIEFS
~ DIAMOND SALES--SOZACOM (Zairian Company for the Marketing of Ores), which will hence-
forth market Zairian diamond production, had sold 940,000 carats of diamonds as
i of 22 June. The first sale took place on 29 May and dealt with 620,000 carats sold
to three approved purchasers. Another sale, for 320,000 carats, took place on 22
~ June. Let us recall that since 26 May, by virtue ot the edict-law of 2 Agril reg-
ulating the conditions for marketing Zairian ores and mining products, SOZACOM,
which is a public enterprise, has a monopoly on the sale of the country's diamond
production, a monopoly whi.ch had been held since 1967 by the firm of Britmond-Zaire,
' of the De Beers group. The taking back of the diamond sales monopoly by SOZACOM
was dictated by a concern for reducing considerably the commissions and costs of
marketing, which had been set by Britmond-Zaire at 25 percent until 1979, then re-
duced to 20 percent since the beginning of last year. [Text] [Paris MARCHES TROPI-
CAUX F.T MEDITERRANEENS in French No 1860,3 Jul 81 p 1778] [COPYRIGHT: Rene Moreux
, et Cie Paris 1981.] 9434
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ZAI~IA
CITIZENS SEEN FACING PRIVATION UNTIL CORRECTIVE MEASURES WORK OUT �
Paris AFRIb~U~-ASI~ in French 6-19 Ju1 81 pp 31, 32
[Article by ylasautso I~Za.sautso: "A Sick Economy~~~
[Text] The Zambian economy is in a bad way and the nation has been called oii to
accept austerity measures.
The country's foreign exchange reserves ha,ve declined due to the fact tha.t world
n~.rket copper and cobalt prices have dropped, while oil and corn prices ha.ve not
stopped rising~
With the volume of available reserves declining and the needs of a changing econotr~y
becoming more pronounced, the situation ha,s gotten worse,
During the past 5 yeaxs the average yield of the econo~ry has been unsatisfactory,
with an average drop of 1.5 percent in the real growth rate. Taking into account
the worsening of trade conditions, the drop in the GNP amounts to about 4,5 per-
cent.
Durin~ -the third quarter of 1980 the bud~et deficit went to 5~100 million as against
;;80 raillion for the previous quaxter.
T'ne total deficit for 1980 is expected to exceed $200 ru.llion, This deficit was
financed by the exhaustion of reserves and the accumulation of arreass. The im-
~ediate consequence: a shortage of essential commodities and high prices for
those that axe available.
~ The ~Liran~ sector, which is still the sole major provider of foreigi exchang~e,
has had to deal with serious problems ranging fron the shortage of spare parts
to the galloping price of f~zel, lubricants, machines and equipr?ent.
. An Ambitious Program
This, as well as other problems, ha.s considerably raised i.ndustry's costs and re-
duced its profitability,
As a result of all these problems industry's rate of growth fell by one point from
17.6 percent in 1976 to the record low of 20,5 percent in 1979. The situation
ir:rproved ~omerrhat last year when the rate dropped by only 1.3 percent.
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The con~traints of forei~n exchan~,~e have also had adverse effects on farnung,
ready-made clothing, construction and other industries which for the most part
have record.ed negative growth rates.
In the face of this serious situation, the grovernment has taken ~eps to try to
save the countzy from ruin.
Strict fir?ancial discipline ha~ been i.nstituted in the civi? service and other
or~anizations that depend on government subsidie~~ This is an important measure
since the comptroller �eneral's report reveals obvious anomalies with regard to
_ ~rovernment expenditures, year after yeax.
5ever~l ministries and embassies have a.lways spent too much - in some cases with-
out p~rliamentary approval. Last yeas about ~9 million in excess expenditures
were incurred, ~2 million of which were disbursed in violation of the Constitution,
Through the National Committe~ for Developmental Planning, Zambia~~ strategy for
1981 is aimed at raa sing the growth rate of actual production through utilization
of existing capacities and increased control over paranational and private sector
investments.
The government ha,s, ftizrthermore, called for well-planned and disciplined utiliza-
~ tion of forei~ exchange and more investment in tne faxm sector. Zambia hopes to
- achieve self-sufficiency in its food needs through an ambitious food production
pro~ram e:ttendinb over a period of 10 years. This pro~rau?, which will cost about
;~400 r.iillion, is being successfully carried out with the aid of a number of coun-
tries and international financial agencies.
A~-~ainst this background of virtual. bankruptcy, Zambia is rapidly acquirin~ a repu-
tation as a"beg~ar nation~" The news that the goverrunent had successfully con-
cluded a second a~reement on an International Monetary Fund (Il~') loan was, there-
fore, received by Zambians with moderate enthusiasm, While some people feel that
the loan ma,y help in treating the sick econorqy, others think that there are too
r,iany loans and that the ~rovernment is mort~ing the nation to the advantage of
the lenders. Wh~,t is at any rate true is the fact that, if Zambia does not borrow~
imports will dry up resultin~ in a new drop in production.
The Zambian econo~y is unfortunately oriented towasd imports and, if they were to
cease, the result would be economi.c chaos, which could give rise to political
anarch;~.
The loan now being negotiated by Zambia, estimated at about ~200 mi.llion, is past
of the :~ctended Fund Facilities (EFF) and payments on it are scheduled to begin
- in 1984. The 1978 stand-by loan was programmed for a period of 2 yeaxs and it
was a~reed that repayiaent would begin next yeax,
The first loan was intended to support the balance of payments and was chiefly
desi~ed to stabilize tYie econor~}r, whereas the i~'F' will be growth-oriented,
Zambia'3 II~~I~~' quota is currently estimated at 211.5 million special drawing ri~hts
(~R). Accordin~ to financial sources, the country has asked the Il'~ to grant it
a supplementary subsidy. This would serve for the importin~ of raw ma.terials and
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otner product~ to revi+.alize the eoonomy, pay foreign suppliers and revalue the
nation's credit ~tandin~.
II~1F Conditions
Ide~;otiation~ between the Zambian Government and IIKF officia.ls, begun last year,
went on for a lon~ time. But given the fact tha.t the II~' negotiating team appears
to have reached a,~reement in principle to provide Zambia ~Jith the loan - on condi-
tion that it is approved by the k~cecutive Bureau it seems that the tealu is
satisfied with the fiscal r~easures the ~overnment has adopted for this year's
bud~et to vouch for the economy.
Accordin~ to well-informed sources, for Za,~bia the coup de grace was administered
at State House when President Kaunda met with. the IP4F team in February. The
Zambian Government had ori~inally asked for a sum almost equivalent to the balance
of pay~?ents deficit.
At any rate the favorable conclusion of the Il'~' deal ha,s raised questions as to
the conditions the Il~~ imposed on Zambia~ Rumors of devaluation of the kwacha,
the L~bian unit of currency, are circulating but, given the fact tha,t it ha.s
dropned in value in compaxison with last year, deva,luation may not be one of the
conditions, The ~overnment, however, might just as well have to place a ceiling
on banl: loans as to reduce government expenditures. 1Je have even heard that the
II~'~' has obtained th~ government's assurance that the annual allocation to the
paxty to fund the salaries of its workers would not be renewed. This yeas Farlia,-
ment voted an allocation of about $~3 million to the ruling party, the tTNIP [United
National Iildependence Party].
One imperative condition is tha,t the government stop subsidizing deficit-incurring
paxanational ~encies funded by the governr.ient, especially those of the fasm sector.
This means that the price of fertilizers will rise~ resulti.ng in skyrocketing
prices for flour products, the main staple.
Until these corrective neasures produce results, Zambians will have to reconcile
themselve: to many haxdships because it will ~et to be expensive to feed oneself
in t~e neas future, given the fact that food prices ase destined to climb~
COFYitIGHT: 19~1 Afrique-Asie.
11,466
cso: ~7~9/136
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ZAMBIA
BRIEFS
MINING COOPERATION WITH ZAIRE--Muyafa Mumbuna, Zambian minister of mines, went to
Zaire at the end of June and during his visit he discussed with the Zairian authori-
ties the question of cooperation between Zaire and Zambia in the mining sphere and
how to coordinate the activities of the ICCEC (Intergovernmental Council of Copper
Exporting Countries) to stabilize the p;ice of that red metal in the world market.
On 22 June, Mumbuna stated in Kinshasa that the countries which produce copper and
cobalt ought to have a meeting as soon as possible to examine the effects of a
future exploitation of the seabed by industrialized countries. The minister, who
is also the acting chairma.n of ICCEC, underscored that such exploitation would
deal a"fatal blow" to the economies of the producing countries. Mumbuna also said
that he was in favor of creating a united front of copper producing countries, as
was done by the OPEC member nations, to guarantee the stability of copper prices in
the world market. It is with this in mind, he noted, that he has started a cam-
paign to sensitize all copper producing countries. [Text] [Paris MARCHES TROPICAUX
ET MEDITERRANEENS in French 3 Jul 81 p 1780] [COPYRIGHT: Rene Moreux et Cie Paris
1981] 8796
FRENCH, JAPANESE VEIiICLE ASSEMBLY--Zambia's State-run Industrial Development
Corporation (INDECO) has agreed to allow the assembly of French and Japanese
vehicles at their plant in Livingstone, in the south of the country. INDECO has
70 percent holding in Livingstone Motor Assemblers with Italian Fiat as part
oaners. This also paves the way for agreements to assemble Peugeot 504 saloons
and pick-up trucks and Isuzu pick-up trucks at the plant. The plant is expected
to assemble 2,000 Fiat cars, 1,000 Peugeots including 700 pick-up trucks and
1,500 Isuzu pick-up trucks annually. [Text~ [London NEW AFRICAN in English
No 166, Jul 81 p 56l
COPYRIGHT: 1981 IC Ma.gazines Limi.ted
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