US embassy cable - 05KINSHASA690

UNCLAS SECTION 01 OF 02 KINSHASA 000690 
 
SIPDIS 
 
DEPT FOR AP/EPS AND AF/C 
DEPT PLEASE PASS TO USTR 
PARIS FOR AFRICA WATCHER 
NAIROBI FOR ECA HUB 
 
FROM BRAZZAVILLE EMBASSY OFFICE 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, CF, KNAO, AGOA 
SUBJECT:  CONGO/B:  AGOA Meetings with Ministers of Commerce 
& Small Business, Plans for Congo's National Strategy 
 
1. Summary.  In mid-March consultants from the East and 
Central Africa Global Competitiveness Hub (ECA Hub) visited 
Brazzaville to launch the AGOA Add-on Project.  Courtesy 
calls were made on the Ministers of Commerce and of Small 
and Medium Businesses by the Ambassador and Econ/Cons 
officer to discuss the project, Congo's National AGOA 
Strategy and other AGOA challenges for ROC firms.  After the 
meetings and visits to firms in Brazzaville, Econ/Cons 
officer and the local USG-funded consultant traveled to the 
commercial city of Pointe-Noire to continue public diplomacy 
efforts on AGOA, meet with local officials, and visit 
Congolese firms. Overall, the ECA Hub expert noted that 
Congo may find it difficult to compete in terms of product 
quality and market competitiveness, particularly in the 
handicraft sector, with more experienced and sophisticated 
businesses from Kenya and South Africa. End Summary. 
 
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Minister of Commerce Meeting: 
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2. On 10 March 2005, the Ambassador, Econ/Cons officer, and 
the ECA Hub consultants met with the Minister of Commerce 
and her staff in her offices.  Issues discussed included 
presenting the AGOA technical assistance (TA) project that 
was being launched in ROC, asking for suggestions on firms 
that might be good candidates for TA, and inquiring about 
the status of proposed ROC legislation to facilitate AGOA- 
eligible trade.  The Minister expressed considerable concern 
that she had not seen yet seen the draft National AGOA 
Strategy report done by the ECA Hub consultant from October 
2004 nor had an additional seminar planned for January 2005 
been executed.  Ambassador noted that the October ECA hub 
consultant had not informed post of the proposed seminar and 
post also had not received a copy of the draft National AGOA 
Strategy.  (Note: Post was later able to provide both an 
English and a French translation of the ECA Hub draft AGOA 
National Strategy for Congo.) 
 
3. The Minister indicated her interest in post's comments on 
the proposed ROC legislation aimed at facilitating AGOA- 
eligible trade, especially in the area of textiles.  The ROC 
draft legislation concentrates on the operation of a 
permanent AGOA office to register Congolese firms exporting 
under AGOA and defines the framework for the reporting and 
enforcement necessary to maintain AGOA export eligibility. 
ECA consultants provided feedback on the draft to suggest 
that references to AGOA "Category 9" products might be 
better dealt with in separate legislation to avoid 
confusion. 
 
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Minister of Small and Medium Businesses Meeting: 
--------------------------------------------- --- 
 
5. On Saturday, 12 March 2005, the Ambassador, the Econ/Cons 
officer, and the consultants met with the Minister of Small 
and Medium Businesses and his staff in his offices.  Much 
like the meeting with the Minister of Commerce, the TA 
project was presented and discussed. It was also stressed 
that the project is for technical assistance and not 
financial assistance to ROC companies and that the ROC 
needed to also ensure that local companies understood this. 
The Minister was keen on focusing AGOA efforts in the 
handicraft sector, which he felt had potential in Congo. 
The Ambassador suggested that he consider attending the 
upcoming Dakar AGOA Ministerial in July as this would give 
him a better sense of what companies in his areas need to do 
in order to access the benefits of AGOA. 
 
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AGOA Add-on Project - Brazzaville & Pointe-Noire Visits: 
--------------------------------------------- ----------- 
 
6. Earlier in the visit, Econ/Cons officer accompanied the 
ECA Hub consultants, Robert Karanja based out of Nairobi and 
Landry Koufoundila, the local AGOA Project Coordinator 
visited about a dozen local Brazzaville businesses that had 
participated in earlier AGOA seminars and wanted to be 
considered for the technical assistance project.  Vendors 
visited included those selling products such as niche herbs 
and oils, coffee, wood sculptures, pottery, baskets, and 
clothing and accessories made with locally-woven textiles. 
 
7. As part of Post's public diplomacy efforts to inform ROC 
companies in Congo's commercial capital Pointe-Noire, 
Econ/Cons officer and ECA Hub's local AGOA Project 
Coordinator traveled to the area to meet with businesses and 
local officials to discuss AGOA in general and the technical 
assistance project in particular.  Meetings included the 
Secretary and Director General of the Chamber of Commerce, 
 
SIPDIS 
and the Departmental Directors of Commerce, Supply and 
Consumption, and Small and Medium Businesses at the Chamber 
of Commerce in Point Noire.  The interlocutors were curious 
about what kinds of publicity and seminars had occurred 
already in Brazzaville and stressed that there should be 
publicity and seminars in Pointe-Noire since it is the 
"economic capital" of the country.  At the conclusion of the 
meeting, the group provided a list of local firms that might 
be good candidates for the technical assistance project. 
Most of the suggested firms, which were concentrated in 
agribusiness sector, were then visited by the local AGOA 
Project Coordinator. 
 
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Comments: 
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8. Upon completion of the business visits, the ECA Hub 
consultants observed that "limited production capacity" was 
probably the most significant challenge for the Congolese 
firms in both Brazzaville and Pointe Noire.  This is 
expected to be a focus of the technical experts who are 
scheduled to arrive in ROC on April 22.   The two sectors 
that are likely to be targeted for the technical assistance 
project are agribusiness, in particular coffee and cocoa, 
and handicrafts.  Throughout the visits to local businesses, 
product quality and market competitiveness were concerns 
expressed by the ECA hub expert.  It also was noted that in 
the handicraft sector, ROC firms may find it difficult to 
compete with more experienced and sophisticated competitors 
like Kenya and South Africa. 
 
9. Brazzaville Embassy Office - Sanders 
Dougherty