## _cr12242 — National Development Plan CONGO DSCERP 2012-2016 (selected excerpts) ## Source details **Canonical URL:** [_cr12242 — National Development Plan CONGO DSCERP 2012-2016 (selected excerpts)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12242.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12242.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12242.pdf.json) --- ### Macroeconomic status and outlook - Recent performance (2008–2011): - Average annual growth: 7.0 percent. - Oil sector growth: 9.6 percent; non-oil sector growth: 4.0 percent in 2009, 6.4 percent in 2010, and 8.0 percent in 2011. - Inflation: 6.3 percent in 2008; 4.7 percent in 2009; stabilized around 4 percent in 2010–2011. - Overall fiscal balance (cash basis): deficit of 4.1 percent of GDP in 2008; surplus of 15.9 percent in 2010; estimated 14.3 percent in 2011. - Debt indicators: debt stock fell from 65.5 percent of GDP in 2008 to 23 percent of GDP in 2011; external public debt around 19.9 percent of GDP; debt service fell from 5.2 percent in 2008 to 3.4 percent of exports in 2010. - DSCERP projections (baseline): - Growth: average annual rate of about eight percent over 2012-2016; non-petroleum sector growth approximately 9-10 percent. - Inflation: could be held below five percent and below three percent for 2016. - Budget stance: total expenditures planned to increase about 11 percent per annum over 2012-2016, stabilizing the ratio to GDP at about 40 percent; budget balance possibly a surplus about three percent of GDP. - Investment: overall financing needed for DSCERP 2012-2016 — about 13,000 billion CFA francs; government expected to mobilize about 75 percent from own resources; financing gap about 3,500 billion CFAF (one-fourth of needs). - Alternative macro scenarios: - Trend/procrastination: GDP average 4.7 percent; poverty rate 45.1 percent in 2015 and 44.5 percent in 2016. - Unfavorable international environment: GDP average 0.6 percent; oil sector average decrease of 23.4 percent; resource loss ~27.4 percent vs baseline; poverty rate 39.0 percent by 2015. ### Strategic framework and main pillars (2012–2016) - Vision: operational framework of the “Future Path” aiming at modernization, industrialization, shared prosperity. - Three mega-programs: - Vectors of growth (productive sectors: agriculture, forests, mines and hydrocarbons, tourism, etc.). - Factors of production (infrastructure, human resources, financial resources, business climate). - Training and inclusion strategies (education, health, social protection). - Five strategic pillars: 1. Governance (political, administrative, judicial, economic & financial, security and defense). 2. Growth and diversification (cluster-based strategy). 3. Economic and social infrastructures (transportation, energy, water, ICT). 4. Social development and inclusion (education, health, social protection, gender and vulnerable groups). 5. Balanced, sustainable development (territorial balance; environment, REDD+ and climate actions). ### Cluster-based diversification: priorities, flagship sectors, and expected impacts - Seven clusters: (i) agriculture and agrofood chain; (ii) forestry and wood industries; (iii) petroleum and hydrocarbons; (iv) mines; (v) buildings and construction materials; (vi) tourism and hotels; (vii) financial services. - Petroleum & gas: - Crude oil reserves ~ six billion barrels (~40 years at current rate). - Natural gas reserves ~73 billion cubic meters (~20 years). - Planned investments: consolidated hydrocarbon investment figures cited (examples): Moho Bilondo investment ~US$10,000 million; ENI oil sand investment ~US$2,000 million; consolidated hydrocarbons investment ~US$13,737 million; projected direct jobs ~2,660; secondary jobs ~1,053; consolidated 2012 output (barrels per day) reported in tables. - Strategic actions: new Petroleum Code, Gas Code, refinery capacity expansion (CORAF modernization), doubling storage capacities (target initial stock at least 30 days for Brazzaville and Pointe Noire), domestic content strategy, large-scale training. - Mining: - Large under-exploited reserves (iron, potassium, polymetallic ores); flagship projects: Zanaga, Avima; projected investments cited (Zanaga ~US$4,000 million within larger figures). - Projections: mining production modeled to reach 112 million tons in 2016 (from 45 million tons in 2013); expected average annual production growth 38.4 percent; employment creation estimated ~25,000 direct jobs; average annual sector revenue projection ~US$6.25 billion with ~55 percent to the State. - Key programs: enforce Mining Code (2005), create mining institute, infrastructure (rail, ports, power), national integration plan for local content. - Agriculture and agro-industry: - Endowments: more than ten million hectares arable (90.0 percent uncultivated); large river basins; seasonal production advantages (Equator). - Constraints: predominance of small family farms, low yields (e.g., maize 690 kg/ha; cassava 6.6 tons/ha), limited public investment (5.5 percent of average annual capital spending 2008-2010). - Strategy: modernize small farms and mechanization; support inputs and R&D; build storage, processing, jetties, warehouses (MIN, MID, MIL); special agro-industrial partnerships (Congo Agriculture, BR AFRICA, ATAMA PLANTATIONS). - Targeted growth: agricultural production projected average growth of 11 percent over 2012-2016 (historical 7.3 percent 2008-2011). - Forestry and wood industries: - Resource: ~22.5 million hectares of forest; exploitable potential 340 million m³; forestry contributed 5.6 percent to GDP and ~10 percent of foreign trade (2010). - Strategy: industrial processing, increase recovery rate to at least 85 percent, PMN and reforestation (target 600,000 hectares plantations toward one million in ten years), REDD+ pilots, biodiversity inventories (flora 4,397 species). - Projected sector growth: from -7.8 percent (2008-2011 average) to 10.5 percent (2012-2016). - Buildings and construction materials: - Programs: promote local production of construction materials (cement, bricks, tiles), low-cost housing, land development, creation of ACLOMAC and a Fonds d’Equipement de Génie Civil (FEGC). - Employment projections: minimum ~77,600 direct jobs annually in construction-related branches over 2012-2016; detailed yearly job tables provided. - Tourism and hotels: - Strengths: rich biodiversity, parks (ODZALA, NOUABALE NDOKI, CONKOUATI), 170 km coastline. - Strategy: develop sites, expand hotel capacity (5*, 4*, resorts, holiday villages), create Institut de Formation Touristique (IFT), establish National Tourism Office, promote ecotourism, rehabilitate airports and access routes. - Target: hotel branch could generate around 15,000 direct jobs (hotel-focused projection). - Financial services: - Structure (2012): nine commercial banks; sixty-two microfinance institutions; four funds transfer companies; Agriculture Support Fund; six insurance companies; two retirement/social security funds. - Constraints: lending low (15 percent of GDP) despite deposits ~46 percent of GDP; banking penetration ~3 percent. - Strategy: create FIGA (SME/Handicrafts Development and Guarantee Fund), Caisse de Dépôts et Consignations (CDC), strengthen microfinance, modernize insurance sector, encourage PPP financing and specialized institutions. ### Infrastructure: status, priorities and flagship programs - Roads: - Total network: 20,925 km; paved: less than 10.0 percent (1,976 km). - Asphalting programs: ~1,500 km currently in progress; national priorities include Pointe-Noire–Brazzaville–Ouesso backbone (RN1 & RN2) and department connectors. - Rail: - CFCO rehabilitation ongoing since 2007; passenger average speed ~34 Kilometer/hour; plans for concession and acquisition of locomotives/railcars. - Ports and river transport: - PAPN (Pointe-Noire) expansion and rehabilitation; port storage improvements; One-Stop Maritime Window (GUMAR) planned. - River buoyage: 1,050 km (2009), 1,200 km (2010); dredging: 210,000 m3 (2009), 233,000 m3 (2010). - Air: - Modernization of Brazzaville, Pointe-Noire and Ollombo airports; concessions in place; challenge: low initial usage rates. - Energy and water: - Hydroelectric potential ~14,000 MW; installed barely 194 MW. - Major projects: Imboulou dam (120 MW); Ndjeno gas plant (50 MW); Côte Matève (300 MW); expand rural electrification and energy highway. - SNDE water network technical losses: 30.0 percent; urban drinking water access ~40.0 percent. - ICT and postal: - Mobile coverage national: 90 percent (100 percent urban, 72 percent rural); fixed lines increased to 15,000 in 2010; Internet and broadband expansion via optical fiber (WACS) flagship project. - Sanitation and waste: - Only 10.6 percent of households use appropriate wastewater removal systems; household wastewater disposal to outdoors rose from 54.4 percent in 2005 to 83.2 percent in 2011. - Public waste receptacles fell from 6.1 percent to 1.9 percent; household dumping in public spaces rose from 53.7 percent (2005) to 60.0 percent (2011). - Policy: construct sewer systems, treatment plants, controlled landfills, extend flush and ecological latrines, public hygiene campaigns. ### Social development: education, health, social protection - Education: - Primary access improved: 86.6 percent (2005) to 91.5 percent (2011); net primary enrollment 86.8 percent (2005) to 89.3 percent (2011). - Secondary gross enrollment: 65.3 percent (2008) to 84.5 percent (2011); net secondary enrollment 44.4 percent (2005) to 59.1 percent (2011). - Technical & vocational: represents 10 percent of college enrollment and 37 percent of high school enrollment; deficiencies in infrastructure and relevance. - Higher education: LMD system adopted; Marien Ngouabi University reforms; plans for departmental university centers and rehabilitation of 11 institutions. - Health and nutrition: - Access to health services: 68.7 percent (2005) to 65.8 percent (2011); utilization rate fell from 26.7 percent (2005) to 23.8 percent (2011). - Maternal indicators: women with prenatal care 88.9 percent (2005) to 91.9 percent (2011); maternal mortality fell from 781 per 100,000 live births to about 624 per 100,000 between 2008 and 2010. - MDG highlights: income poverty incidence fell from 50.7 percent (2005) to 36 percent (2011) per MDG assessment excerpt; HIV prevalence 3.2 percent (2009) for ages 15–49. - Sector commitments: 2012 declared "the year of health"; health share of investment budget rose from 4.7 percent (2011) to 6.5 percent (2012). - Social protection and vulnerable groups: - CNSS retirees: 34,594 (2009) to 35,205 (2010); CRF covered 18,950 (2010). - Family measures: minimum salary raised from 64,000 to 70,000 CFAF; family allowances increased to 5,000 CFAF per child per month; student scholarships up 50 percent. - Programs: social integration of disabled (1,600 cared for 2009–2010), indigenous peoples programs (4,011 children enrolled 2009–2010), Law No. 5/2011 on protection of indigenous peoples. ### Employment strategy and labor market dimensions - Labor market trends (ECOM surveys): - Unemployment rate fell from 19.4 percent (2005) to 6.97 / 6.9 percent (2011); urban unemployment 30.2 percent (2005) to 10.0 percent (2011); rural 6.3 percent to 1.7 percent. - Youth unemployment (15–29): roughly 12.0 percent (2011) (down from higher rates in 2005); youth underemployment ~27.8 percent. - Employment structure: own-account workers constitute ~62.9–70.1 percent; agriculture and forestry ~37.8 percent; trade 23.1 percent; mining 0.9 percent. - Employment strategy objectives (2012–2016): - Supply-side: create lasting jobs in priority clusters, establish specialized schools and institutes, promote HILO projects. - Demand-side: universal basic education to secondary level; vocational training aligned to growth-sector needs; align training systems and profiles with labor market needs. - Institutional: reform labor law; strengthen ONEMO and DGFP capacities; involve diaspora; create employment observatory and National Employment Observatory; target youth unemployment reduction (e.g., reduce 15–29 unemployment from 12.0 to 5.0 percent by 2016; youth underemployment from 27.8 to 9 percent by 2016). - Support instruments: FIGA, credit incubators, PPPs, and SME guarantees. ### Financing strategy, public debt, and fiscal reforms - Total DSCERP cost: about 13,000 billion CFA francs (2012-2016); government to mobilize ~75 percent own resources; financing gap ~3,500 billion CFAF. - Financing mix: - Own resources, concessional loans/grants, issuance of government securities in subregional markets, private sector via PPPs (BOT/BTO), public-private companies, direct population contributions for social sectors. - Post-HIPC stance: - Prudent indebtedness policy; rely primarily on government own resources; external assistance only concessional. - National Public Debt Committee (CNDP) created to monitor debt and prepare national public debt strategy (decree no. 2008-56). - Public finance reforms and transparency: - Implemented reforms: PAAGFP, PAAGIP, SIDERE, ASYCUDA, new procurement code, LOLFP; Quarterly certification and transfer of petroleum revenues to Treasury within 45 days of shipment; Extractive Industries Transparency Initiative participation (ITIE) since 2004. - Objective: improve revenue mobilization (non-oil revenue increased from 22.5 percent to 27.4 percent of non-oil GDP between 2008–2011 per some tables), contain current expenditure, prioritize investment quality. ### Implementation, institutional arrangements and monitoring & evaluation - DSCERP structure: three parts + operational Books: - BOOK 2: Priority Action Plan (PAP_2012-2016). - BOOK 3: Macroeconomic and Budgetary-Financing Framework (CMB-FS_2012-2016 / Global MTEF). - BOOK 4: Institutional Framework for Monitoring and Assessment (SEP-PAP). - Institutional mechanism: - Steering Committee chaired by Minister of State responsible for economic coordination (MEPATI); Permanent Technical Secretariat (STP) coordinated by DGPD; GTDR thematic groups; CPCMB for macro and MTEF. - Implementation bodies: DGGT (General Commission for Large-Scale Projects) executed nearly 80 percent of government investment 2008–2010; CNDP for debt; CSEPPP (Committee for Monitoring & Evaluating Public Programs) attached to the Presidency. - Monitoring & evaluation system (Book 4 / Chapter 17): - Continuous monitoring: Departmental Poverty Reduction Committees (quarterly) chaired by Prefects; biannual ministerial cluster reviews; biannual State-TFP dialogue. - Mid-term evaluation: commence in 2014 (bi-annual review and independent evaluations per axis); final evaluation in 2017. - Statistical backbone: National Statistical Institute (INS) to execute SNDS 2012-2016, exploit ECOM surveys (ECOM-2, ECOM-3), EDS, RGPH, labor statistics and update indicator matrix. - Performance indicators: extensive indicator matrix covering GDP, sectoral outputs, infrastructure (kilometers tarred), social indicators (primary enrollment, maternal mortality), environmental metrics (forest area, CO2), cluster-level outcomes. - Governance: transparency and public dissemination of quarterly/annual reports, mid-term and final evaluation notes; STP (DGPD) as Permanent Technical Secretariat of CNLP; CSEPPP supervising and reporting to the Presidency. ### Key risks and policy implications - Primary vulnerabilities: - High dependence on petroleum exposes economy to international price volatility and growth fluctuation. - Infrastructure gaps (transport, energy, water, sanitation) and high technical losses (electricity losses >75 percent cited in comparative note; SNDE losses 30.0 percent) constrain competitiveness. - Human capital deficits in vocational, technical and higher education limit absorptive capacity of diversification clusters. - Weaknesses in public investment quality, project preparation and execution require sustained PAAGIP reforms. - Policy priorities to mitigate risks: - Accelerate economic diversification via cluster strategies and SEZs; enforce domestic content policies. - Scale up infrastructure investments with PPPs and structured financing while protecting access for the poor. - Strengthen tax administration and broaden the non-oil tax base while preserving incentives for private investment. - Deepen financial sector (FIGA, CDC, postal bank), modernize microfinance and insurance supervision, and develop long-term financing instruments (BVMAC integration). - Implement Results-Based Development Management (RBDM) with rigorous monitoring, mid-term correction and public transparency. *Source: _cr12242 - National Development Plan CONGO DSCERP 2012-2016 (excerpts provided in the content unit)._ ### Preface ### Preface ### Political context and recent progress - Following the disturbances and conflicts of the 1990s, Congo has restored and consolidated peace and security through successive programs initiated under the “Nouvelle Espérance” (New Hope) program. - The government adopted the Poverty Reduction Strategy Paper in April 2008 and has implemented it as a foundation for recovery and rebuilding. - The President replaced the Nouvelle Espérance program with the “Future Path” program covering 2009 to 2016, with a focus on modernization and industrialization to achieve shared prosperity. ### Vision and strategic objectives (Future Path / NDP) - The Future Path aims to make Congo an emerging, modernized, and attractive country and a major producer of goods and services through a competitive, job-creating economy integrated regionally and globally. - The President instructed the government to expand the PRSP strategic framework into a National Development Plan (NDP) and to adopt Results-Based Development Management (RBDM) to enhance efficiency. - The Growth, Employment, and Poverty Reduction Strategy Paper (DSCERP 2012-2016) is identified as one of the implementing tools of the NDP. ### Achievements (2008–2011) — enumerated outcomes and key statistics - Political: - Consolidation of peace and renewal of stability; calming of political tensions; holding of presidential and legislative elections. - Economic: - Sustained growth of the order of 7.0 percent. - Inflation kept within the community standard (~3 percent). - Fiscal consolidation. - Social: - Marked improvement in household living conditions. - Unemployment declined from 19.4 percent in 2005 to 6.9 percent in 2011 (ECOM1 2005 and ECOM2 2011). - External debt relief: - Reached the HIPC Initiative completion point in January 2010, leading to the cancellation of approximately CFAF 3,000 billion of Congo’s debt, or close to one-third of its GDP. ### Remaining challenges and vulnerabilities - High dependence of the economy on the oil sector, making it highly vulnerable. - Persistent high unemployment, especially among youth; many jobs are tenuous or in low-productivity, low-wage informal sectors. - Inadequate basic infrastructure and social services, particularly in power and water supply; shortcomings also exist in education, transport infrastructure, and health services. ### NDP structure, implementation tools, and institutional arrangements - The DSCERP (new-generation PRSP) incorporates macroeconomic and sectoral policies for 2012-2016 to attain growth, employment, poverty reduction, MDG, and balanced development objectives and serves as the operational framework for the Future Path. - The NDP is accompanied by implementing documents: - BOOK 2: Priority Action Plan (PAP_2012-2016) — main action programs by sector. - BOOK 3: Macroeconomic and Budgetary-Financing Framework of the Strategy (CMB-FS 2012-2016) — medium-term macroeconomic outlook, resource allocation by strategic objective, fields of action, responsibilities, institutions (“strategic budget”) and financing arrangements. - BOOK 4: Institutional Framework for Monitoring and Assessing the Implementation and Results of Priority Action Programs (SEP-PAP) — institutional mechanism and statistical and IT tools for execution, monitoring, and impact assessment. - Progress in public financial management and planning: - Technical capacity building for strategic planning and budgeting by program objective (BPO), establishment of PAPs and the MTEF within sectoral ministries and at central Budget and Planning. ### Stakeholder engagement and ownership - The NDP was prepared by a multisectoral team with participation from sectoral and central ministries, contact persons, representatives of civil society and the private sector, and technical and financial partners to ensure ownership and use as a reference for programming, budgeting, and monitoring. - DSCERP places growth and job creation at the center of poverty reduction actions and serves as the reference framework for government policy and cooperation with partners. ### Resource mobilization and partnerships - Major efforts will be required to mobilize resources to finance the strategy. - The government plans to: - Take effective action to increase available resources. - Work closely with technical and financial partners to obtain quality assistance. - Engage the private sector in partnership arrangements to alleviate pressure on the government budget, particularly for financing key projects. ### Management culture and execution imperatives - Not all objectives can be achieved by a plan alone; success requires: - Diligence, programmed actions, allocation of substantial administrative and financial resources. - Monitoring of action and budget execution, assessment of outcomes, and real-time corrective measures to maximize effectiveness. - The government calls for a new culture of DILIGENCE, PERSEVERANCE, and ACCOUNTABILITY for all to ensure the NDP’s success. *Preface, National Development Plan CONGO DSCERP 2012-2016.* ### Foreword ............................................................................................................... ### Foreword ### Scope and structure presented - The Foreword introduces the structure of the document, including: - EXECUTIVE SUMMARY (page 1) - PART ONE: HOW IS CONGO DOING? (beginning page 70) - PART TWO: WHERE DOES CONGO WANT TO BE IN 2016 AND WHAT CAN BE DONE TO THAT END? (beginning page 155) ### Major thematic headings indexed in the Foreword - CHAPTER 1: OVERVIEW OF THE 2012-2016 DSCERP - PRESENTATION OF THE 2012-2016 DSCERP (page 53) - WHY THE 2012-2016 DSCERP? (page 56) - HOW THE 2012-2016 DSCERP WAS DEVELOPED: MECHANISM AND PROCESS (page 59) - The Institutional Mechanism (page 59) - The Process Of Developing The Dscerp (page 60) - THE PILLARS OF THE 2012-2016 DSCERP (page 61) - The mega-programs of the “future path” (page 62) - The Pillars of the 2012-2016 DSCERP (page 63) - The Pillars of the DSCERP and the “Nodes” of Africa’s Emergence (page 65) - Implications For The Alignment Of Dscerp Policies (page 66) - THE STRUCTURE OF THE 2012-2016 DSCERP (page 67) - CHAPTER 2: GOVERNANCE (page 71) - POLITICAL GOVERNANCE: ADVANCES IN DEMOCRACY AND CONSOLIDATION OF THE PEACE (page 71) - Historic Overview (page 72) - Important Achievements In Recent Years (page 72) - The Main Challenges To Be Addressed (page 74) - ADMINISTRATIVE AND JUDICIAL GOVERNANCE (page 74) - Historic Overview (page 74) - Achievements In Recent Years (page 75) - The Main Challenges To Be Addressed (page 75) - JUDICIAL GOVERNANCE (page 75) - Historic Overview (page 75) - Achievements In Recent Years (page 76) - The Main Challenges To Be Addressed (page 77) - SECURITY AND NATIONAL DEFENSE GOVERNANCE (page 77) - ECONOMIC AND FINANCIAL GOVERNANCE (page 78) - Historic Overview (page 78) - Recent Economic Management: The Performance Has Clearly Improved (page 83) - Structural Reforms And Strengthening The Business Climate (page 89) - The Main Challenges (page 92) - CHAPTER 3. GROWTH AND EMPLOYMENT (page 94) - GROWTH: SOURCES, PERFORMANCE AND CHALLENGES (page 95) - Historic Overview Of Changes In The Congolese Economy (page 95) - Sectoral Performances (page 98) - Recent Macroeconomic Performance: 2008-2011 (page 107) - EMPLOYMENT: PERFORMANCES AND CHALLENGES (page 113) - Overview (page 113) - Employment Opportunities (page 113) - Job Seekers (page 114) - The Labor Market And Promotion Policies (page 115) - Summary Of The Main Constraints On Growth And Job Creation (page 116) - CHAPTER 4. POVERTY AND SOCIAL DEVELOPMENT (page 118) - HOUSEHOLD LIVING CONDITIONS (page 118) - Socio-Demographic Trends (page 118) - Household Economic Situation (page 121) - Household Living Conditions (page 122) - Household Access To Essential Services (page 123) - POVERTY (page 134) - Scope Of Poverty According To Quantitative Estimates (page 135) - Household Perceptions Of Poverty And Its Determinants (page 136) - OTHER DIMENSIONS OF HUMAN DEVELOPMENT (page 138) - CONGO ADDRESSING THE CHALLENGE OF THE MILLENNIUM DEVELOPMENT GOALS (page 141) - CHAPTER 5: BASIC INFRASTRUCTURES (page 144) - TRANSPORTATION INFRASTRUCTURES AND PUBLIC WORKS (page 144) - Roads And Road Transportation (page 144) - Other Means Of Transportation: Rail, Air, River, And Maritime (page 145) - ENERGY, WATER, AND SANITATION (page 148) - Energy (page 149) - Water (page 149) - Hygiene And Sanitation (page 150) - HOUSING AND URBAN DEVELOPMENT (page 151) - Housing (page 151) - Urban Development (page 151) - POST, TELECOMMUNICATIONS, AND INFORMATION AND COMMUNICATION TECHNOLOGIES (page 152) - Postal Service (page 152) - Telecommunications And Information And Communication Technologies (page 152) - CHAPTER 6. LONG-TERM VISION AND MEDIUM-TERM STRATEGIES (page 156) - MEDIUM AND LONG-TERM VISION OF CONGO IN CONNECTION WITH THE FUTURE PATH (page 156) - Major Objectives Of The Future Path (page 156) - Framework Programs Under The Future Path (page 158) - THE ECONOMIC GROWTH AND POVERTY REDUCTION STRATEGY PAPER (DSCERP) AS AN INTEGRATED FRAMEWORK FOR IMPLEMENTATION OF THE FUTURE PATH (page 159) - Strategic Pillars And Objectives Of The Economic Growth And Poverty Reduction Strategy Paper (page 159) - CHAPTER 7. STRENGTHEN GOVERNANCE (page 161) - POLITICAL GOVERNANCE—PROMOTE AN INCLUSIVE DEMOCRACY (page 161) - Strengthen Participatory Democracy (page 161) - Promote International And Regional Cooperation (page 163) - Promote Decentralization (page 163) - STRENGTHEN JUSTICE TO CONSOLIDATE THE STATE SUBJECT TO THE RULE OF LAW AND FIGHT IMPUNITY (page 164) - Accelerate The Process Of Modernizing Justice (page 165) - Promote Human Rights (page 166) - Intensify The Fight Against Corruption And Impunity (page 166) - STRENGTHEN NATIONAL DEFENSE AND SECURITY IN SUPPORT OF DEMOCRACY (page 167) - Upgrade The Professional Status Of The Armed Forces And Police (page 167) - Involve The Armed Forces And Police In Poverty Reduction (page 168) - GOVERNANCE AND THE QUALITY OF ECONOMIC POLICIES (page 168) - Improve The Tax System (page 168) - Contain Current Expenditure (page 169) - Promote Public Investment (page 169) - Strengthen Budget Control (page 169) - Strengthen Strategic And Operational Planning (page 170) - Strengthen Administrative And Human Resource Management (page 170) - Policy To Finance Growth (page 170) - Improve Property Affairs Management (page 171) - CHAPTER 8. DIVERSIFY THE ECONOMY TO ACCELERATE GROWTH (page 172) - 8.1. CLUSTER-BASED DIVERSIFICATION STRATEGY (page 173) - 8.1.1 PETROLEUM AND HYDROCARBONS CLUSTER (page 175) - Players: Nine Consortia Exploring 15 Permits And 36 Fields (page 175) - Strengths: Substantial Potential To Contribute To Growth (page 177) - Key Strategies, Programs, And Projects (page 182) - Expected Impact On Growth, Employment, And State Revenue (page 187) - 8.1.2 THE “MINES” CLUSTER (page 195) - The Actors: About Fifty Companies (page 195) - The Strategies, Programs And Flagship Projects (page 199) - The Expected Impacts On Growth, Employment And State Revenues (page 202) - 8.1.2 THE “AGRICULTURE AND AGRO-INDUSTRY” CLUSTER (page 205) - The Actors And The Main Activities (page 205) - Strengths: Large Arable Surface Areas, Good Rainfall And Hydrography (page 207) - The Strategies, Programs And Flagship Projects (page 209) - The Expected Impacts On Growth, Employment And State Revenues (page 213) - THE “FORESTRY AND TIMBER INDUSTRY” CLUSTER (page 220) - The Actors And The Key Products (page 221) - Strengths: Considerable Wealth, But Under-Developed (page 222) - The Strategies, Programs And Flagship Projects (page 225) - The Expected Impacts On Growth, Employment And State Revenues (page 229) - 8.2 THE “BUILDINGS AND CONSTRUCTION MATERIALS” CLUSTER (page 230) - Actors And Key Products (page 230) - Strengths: A Market Boosted By Major Infrastructural Programs (page 232) - The Strategies, Programs And Flagship Projects (page 233) - Expected Impacts On Growth, Employment And State Revenues (page 235) - THE “TOURISM AND HOTEL TRADE” CLUSTER (page 239) - The Actors And The Main Products (page 239) - the strengths, constraints and challenges (page 240) - The Strategies, Programs And Flagship Projects (page 242) - The Implications For Growth, Employment And State Revenue (page 246) - THE “FINANCIAL SERVICES” SECTOR (page 247) - The Actors And Principal Products (page 247) - Strengths, Constraints And Challenges (page 249) - The Strategies, Programs And Flagship Projects (page 251) - The Expected Impacts On Growth, Employment And State Revenues (page 259) - CHAPTER 09: STRENGTHENING THE PRIVATE SECTOR AND COMPETITIVENESS (page 261) - STRENGTHENING THE PRIVATE OPERATORS (page 261) - The Characteristics, Constraints And Challenges (page 261) - Strengthening The Private Operators And The Business Climate (page 262) - Strengthening Private Sector Financing Institutions (page 263) - Encouraging Foreign Investors (page 264) - REDUCING FACTOR AND TRANSACTION COSTS (page 264) - STRENGTHENING TRADE POLICIES (page 267) - Stabilizing The Domestic Trade Environment (page 267) - Strengthening National Trade Policy Instruments (page 270) - PROMOTING REGIONAL INTEGRATION AND INTERNATIONAL COOPERATION (page 275) - Strengths, Constraints And Challenges (page 275) - Strengthening International Trade Cooperation (page 276) - strengthening integration within the cemac zone (page 276) - Strengthening Integration In The Ceeac Zone And In Southern Africa (page 278) - Implications For “Corridor” Policies: Border Markets (page 279) - Implications For “Corridor” Policies: Infrastructure (page 280) ### Emphasis signaled by the Foreword - The Foreword indexes a comprehensive development framework centered on the 2012-2016 DSCERP and a “future path” linking governance, macroeconomic management, structural diversification, infrastructure, social development, and private-sector competitiveness. - The Foreword highlights multi-sector cluster strategies (petroleum and hydrocarbons; mines; agriculture and agro-industry; forestry and timber; buildings and construction materials; tourism and hotel trade; financial services) with specified sections on actors, strengths, strategies, flagship projects, and expected impacts on growth, employment, and state revenues. *Source: _cr12242 - Foreword (IMF PDF)_* ### CHAPTER 10: BUILDING INFRASTRUCTURE .................................................................................... ### CHAPTER 10: BUILDING INFRASTRUCTURE ### DEVELOPMENT OF TRANSPORT AND PUBLIC WORKS INFRASTRUCTURE - Roads And Road Transport - Other Transport Infrastructure - (Chapter location: page 282) ### DEVELOPMENT OF ENERGY, WATER AND SANITATION - Energy (page 287) - Water (page 289) - Sanitation (page 289) ### PROMOTION OF HOUSING AND URBAN DEVELOPMENT - Housing (page 290) - Urban Development (page 291) ### DEVELOPMENT OF TELECOMMUNICATIONS - Post (page 291) - Telecommunication And Icts (page 291) *Source: _cr12242 - CHAPTER 10: BUILDING INFRASTRUCTURE* ### EXECUTIVE SUMMARY ### EXECUTIVE SUMMARY ### INTRODUCTION / BACKGROUND - Early 2000s: government launched structural and governance-improving reforms to consolidate peace and promote economic and social development; prepared a Poverty Reduction Strategy (PRS) for the 2008-2010 period linked to HIPC Initiative Completion Point. - PRSP reflected the “Nouvelle Espérance” social project (2002-2009) with five pillars: - Pillar 1: Improvement of governance and consolidation of peace and security; - Pillar 2: Promotion of growth and macroeconomic stability; - Pillar 3: Improvement of public access to basic social services; - Pillar 4: Improvement of the social environment and integration of disadvantaged groups; - Pillar 5: Combating HIV/AIDS. - Review of PRSP implementation (first three years) findings: - Political: peaceful legislative and presidential elections; restored calm political environment; launch of second phase “Future Path” (2009-2016) to deepen reforms and implement major projects for economic and social development. - Economic: stabilized macroeconomic framework, fiscal consolidation, inflation under control, and sound overall growth of 7.0 percent per year (6.0 percent of it in the non-oil sector). - Debt relief: reached HIPC Initiative completion point in January 2010; cancellation of more than CFAF 3 trillion, or close to 32.4 percent of GDP. - Social survey results (ECOM2-2011): - Unemployment rate fell from 19.4 percent in 2005 (ECOM1-2005) to 6.97 percent in 2011 (ECOM2-2011). - Youth unemployment remains high (twice the national average for ages 15–29). - Underemployment, particularly among youth, nearly 40 percent. - Essential services (health, water, sanitation, education, energy) remain well below expectations and objectives. ### THE NATIONAL DEVELOPMENT PLAN (NDP) AND THE DSCERP (2012–2016) - Purpose of the NDP: - A “common roadmap” and integrated multiyear multisectoral strategic planning framework to realize the “Future Path,” with primary objective to modernize society and industrialize Congo for shared prosperity and emergence. - NDP components include the Growth, Employment, and Poverty Reduction Strategy Paper (DSCERP), programming and budgeting documents (PAP-MTEF), monitoring and assessment documents, and “Congo Vision 2025.” - The 2012-2016 DSCERP: - A five-year, new-generation PRSP providing an integrated macroeconomic and sectoral framework to diversify and accelerate growth, create jobs, and develop the social sector in line with the MDG, Congo’s emergence aspirations, and citizens’ aspirations. - Retains pillars of the 2008-2010 PRSP and addresses two major concerns: - How to promote diversified, inclusive growth that creates jobs and value added, aiming for Congo’s economic emergence; - How to make a structured response to balanced development distributed across the territory and respectful of the environment, contributing to combating global warming and abusive exploitation of natural resources. - Operational “Books” (guides for programming, budgeting, monitoring under RBDM): - BOOK 2: Priority Action Plan (PAP_2012-2016) — main action programs by sector. - BOOK 3: Macroeconomic and Budgetary-Financing Framework (CMB-FS 2012-2016) — medium-term macro outlook and resource allocation by strategic objective and financing arrangements. - BOOK 4: Institutional Framework for Monitoring and Assessment (SEP-PAP) — institutional mechanisms and statistical/IT tools for program execution and impact assessment. ### PROCESS OF PREPARING THE DSCERP - Adopted Results-Based Development Management (RBDM) and strengthened planning based on three pillars: - Full accountability of sectoral ministries for strategy preparation, programming, budgeting, execution, and monitoring/assessment of results. - Alignment of the budgetary process with strategy priorities. - Strengthening institutional mechanisms for monitoring and assessment. - Institutional arrangements for NDP design and preparation: - Steering committee chaired by the Minister of State, Responsible for Economic Coordination, Minister of Economy, Planning, Land Reform, and Integration (MEPATI). - Permanent technical secretariat for Strategic Planning coordinated by the Director General of Planning and Development (DGPD). - Central and sectoral technical units for analytical tasks and coordination of BOOKS 1–4. - Thematic Discussion and Editorial Groups (GTDR) organized by strategic pillars/sub-areas produced thematic reports that informed DSCERP and NDP components through an iterative, participatory process. ### STATUS OF GROWTH, EMPLOYMENT, POVERTY, AND SOCIAL DEVELOPMENT — MACROECONOMIC SITUATION - Growth (2008–2011): - Average annual growth of 7.0 percent, driven by oil sector growth of 9.6 percent and an increasingly contributory non-oil sector (4.0 percent in 2009, 6.4 percent in 2010, and 8.0 percent in 2011). - Non-oil sector performance: after a decline in 2009 (forestry - 42.0 percent), recovery to nearly 8.0 percent in 2011. - Key non-oil sector contributions: telecommunications 10 percent, agriculture 7.3 percent, manufacturing 7.0 percent, trade and transport 6.0 percent. - Oil sector drivers: - Increased oil production from M'boundi, Nkossa Sud, Kombi, Likalala, Loango, Zatchi, and start of operations at Moho Bilondo amid rising international crude oil prices. - Inflation: - 2008: 6.3 percent (pressure from international food and oil price spikes). - 2009: 4.7 percent. - 2010–2011: stabilized at around 4 percent. - Contributing factors to lower inflation: reduced imported inflation in 2010–2011, contraction of structural component due to structural reforms and infrastructure rehabilitation (improved food supply routes and electricity supply), and control of monetary component through community monetary policy and prudent fiscal policy. - Fiscal measures included containment of expenditure growth, relative reduction in consumption expenditure in favor of investment, and sterilization of some oil revenue via Fiscal Revenue Stabilization Fund and Future Generations Fund deposited with the BEAC. - Government finances: - Fiscal policy focused on improving non-oil revenue collection and slowing current expenditure growth, enabling increased investment and saving a portion of oil revenues. - Share of non-oil revenue increased from 22.5 percent to 27.4 percent of non-oil GDP between 2008 and 2011. - Overall balance (cash basis): from a deficit of 4.1 percent of GDP in 2008 to a surplus of 15.9 percent in 2010; for 2011 estimated at 14.3 percent. - Debt indicators: share of debt from 65.5 percent of GDP in 2008 to 23 percent of GDP in 2011; debt service from 5.2 percent in 2008 to 3.4 percent of exports in 2010. - Prospects: favorable for further government debt reduction given positive fiscal balances. ### STATUS OF GROWTH, EMPLOYMENT, POVERTY, AND SOCIAL DEVELOPMENT — SOCIOECONOMIC SITUATION - Demographics (ECOM surveys): - Population growth: annual average rate of 3.0 percent between 2005 and 2011, from 3.551 million to 4.085 million. - Gender composition: 51.7 percent women and 48.3 percent men. - Urbanization: urban population share increased by 8.7 points during the period. - Age structure: 40.0 percent under 15 years; more than two out of three people under the age of 30. - Implications: - Strength: young workforce concentrated in urban areas, potentially able to adopt new technologies if properly educated, supporting industrialization. - Challenge: greater pressure on infrastructure, housing, and employment services in urban areas requiring urgent responses. - Household economic situation (ECOM1-2005 vs ECOM2-2011): - Net assets of households grew over the five years, indicating improved economic capacity and public welfare. - Access to residential electricity: 38.4 percent in 2011 versus 28.0 percent in 2005. - Television ownership: 46.1 percent in 2011 versus 20.0 percent in 2005. - Home ownership among urban households: 43.0 percent in 2011 versus 47.8 percent in 2005 (partly due to young wage-earners renting independently); access to home ownership remains difficult for young people. - Household living conditions and access to basic services remain uneven: - Indicators such as housing type and materials, tenure status, toilet type, source of drinking water, residential energy source, household waste and wastewater disposal, and access to basic social services reflect incomplete improvement in welfare and living conditions. *Source: _cr12242 - EXECUTIVE SUMMARY* ### 28. Housing in Congo is dominated by single-family dwellings. Examining the quality of ### Housing in Congo is dominated by single-family dwellings. Examining the quality of housing, in terms of construction materials, confirms that the standard of living of Congolese households is improving. ### Housing: ownership and construction materials - More than half of Congolese households (57.7 percent) own and occupy single-family dwellings. - In 2011, more houses were built of durable materials than of hard-packed or reinforced earth: - 55.0 percent in cinder blocks and fired bricks in 2011 compared to 51.2 percent in 2005. - Access to household amenities: - Flush toilets: 7.8 percent in 2011 compared to 6.0 percent in 2005. - Residential electricity: 38.0 percent in 2011 versus 27.7 percent in 2005. ### Water: access, infrastructure, and losses - Significant portions of the population rely on non-piped sources: - Artesian wells: 3.3 percent. - Rainwater: 2.3 percent. - Streams and unprotected springs: 17.1 percent. - Public investments have been made in urban water production and storage, but coverage issues remain: - The SNDE system covers only a limited area and is outdated. - High technical loss rates in the SNDE system: 30.0 percent. - Rural strategy highlights: - Include communes in the Drinking Water Supply System (SAEP). - Provide villages with protected springs, boreholes, and wells. ### Sanitation: trends and public health implications - Public waste receptacles: - Fell from 6.1 percent to 1.9 percent. - Household waste disposal practices: - Disposal in public spaces or outdoors increased from 53.7 percent of households in 2005 to 60.0 percent in 2011 (increase of 6 percent). - Use of toilet facilities: - Households not using toilet facilities: 7.8 percent in 2005 as opposed to 9.0 percent in 2011. - Only one of two households (52.4 percent) has adequate/healthy toilet facilities. - Covered latrines predominate: 43.8 percent. - Wastewater disposal: - Appropriate systems (sewer and gutter systems): 10.6 percent of households. - Disposal outdoors/in courtyard/in street rose from 54.4 percent in 2005 to 83.2 percent in 2011. - Implication: pressing sanitation and public health problems in large cities; road and sanitation services urgently need rehabilitation. ### Summary assessment of household welfare - Socioeconomic positives: - Improvements in employment and household assets indicate a positive change in the economic situation of Congolese households. - Offsetting concerns: - Disturbing trends in access to water and, in particular, sanitation. ### Employment: trends and labor market structure - Unemployment and underemployment trends (ECOM2 survey): - National unemployment rate fell from 19.4 percent to 6.9 percent between 2005 and 2011. - Urban unemployment: from 30.2 percent to 10.0 percent between 2005 and 2011. - Rural unemployment: from 6.3 percent to 1.7 percent between 2005 and 2011. - Unemployment among ages 15–29: roughly 12.0 percent. - Youth underemployment rate: 27.8 percent. - Nature of employment: - Two-thirds of “job holders” are self-employed workers, many in informal, low-productivity, low-income activities. - Employment distribution by employer type: - Civil service: 11.4 percent. - SMEs: 7.7 percent. - Large private enterprises: 4.8 percent. - Employment by industry: - Agriculture and forestry: 37.8 percent. - Trade: 23.1 percent. - Services: 10.9 percent. - Mines and quarries: 0.9 percent (fewest Congolese workers despite highest-paying private jobs). ### Employment sector dynamics and institutional challenges - Modern sector employment: - Central government provides six of ten jobs. - Private sector: 8.0 percent annual job growth between 2008 and 2010. - Public employment services: - Only 3.2 percent of unemployed workers use ONEMO’s services. - Low usage and satisfaction indicate capacity deficiencies in DGFP and ONEMO. - Skills and human capital: - Need for training and retraining to meet employer requirements. - Strengthening human resource capacities is a major DSCERP challenge. ### Employment strategy: objectives, pillars, and actions - Strategic objective: solve the employment problem and enhance job quality, particularly for youth. - Main pillars of the employment strategy: - (i) Greater availability of lasting jobs in priority diversification sectors (clusters and infrastructure projects). - (ii) Increased “empowerment” of job-seekers via sound basic training and practical vocational training. - (iii) Improved functioning of the labor market and regulatory agencies, particularly ONEMO. - (iv) Expansion of the boundaries of employment. - Supply-side measures: - Promote employment through sectoral programs in “Agriculture,” “Forestry and Wood Industry,” “Mines,” “Buildings and Construction Materials,” and “Tourism and Hotels” clusters. - Create specialized schools and institutes in wood, mines, fishery resources, construction, tourism and hotels, ICTs, financial services, etc. - Promote employment within large infrastructure projects with priority to highly labor-intensive (HILO) projects. - Demand-side measures: - Equip young people with universal basic education up to secondary level and vocational training aligned to growth-sector needs. - Government plans include: - (i) Align training systems and profiles with labor market needs. - (ii) Improve qualifications of the national workforce, especially in occupations with looming structural labor deficits. - (iii) Build capacities to empower disadvantaged groups. - Overall objective: guarantee full employment in decent, lasting jobs through training and retraining programs in collaboration with bilateral and multilateral partners. - Institutional and regulatory actions planned: - (i) Reform the legislative and regulatory framework of labor to increase incentives to create jobs and protect workers’ rights. - (ii) Strengthen capacities of ONEMO and the Directorate-General of the Civil Service, including human resources, databases, and intermediation methods. - (iii) Better organize involvement of Congolese living abroad to meet market needs for qualified workers. - (iv) Develop institutional mechanisms for training, retraining, ongoing and “sandwich” training. - (v) Assist graduates of technical training institutes in creating and developing new enterprises and with job placement. ### DSCERP 2012–2016: role and structure (overview) - Purpose: operational framework of the “Future Path” to seek greater shared prosperity through industrialization and modernization. - Three main action program blocks aimed at secondary objectives: - Growth (vectors: agriculture, forestry, mines and hydrocarbons, tourism, etc.). - Competitiveness (production factors: infrastructure, human and financial resources). - Social inclusion (education, health, gender, social welfare, etc.) — serves as a transmission belt between growth and social development. - DSCERP organization: - Three parts grouped into five pillars: - Part one: reviews performances (“How is Congo doing?”). - Part two: defines strategic objectives for 2016 and priority programs. - Part three: outlines implementation (“How can it be done?”). - Five pillars: - First pillar: governance (political, judicial, administrative, security and defense, economic and financial). - Second pillar: growth and diversification (step up economic activities, diversification strategies, macroeconomic policies, structural reforms, trade strategies). - Third pillar: economic and social infrastructures (physical and virtual interconnection, reduce transaction costs, provide energy/transport/water). - Fourth pillar: social development and inclusion (education, scientific research, health, social welfare, inclusion of vulnerable groups). - Fifth pillar: balanced, sustainable, and lasting development: - Sub-group 1: better distribution of development across departments and between urban/rural areas — includes decentralization, land reform, municipalization, local development. - Sub-group 2: medium- and long-term sustainability strategies — environmental protection, rehabilitation, combating global warming. - Implementation, financing, and monitoring: - Part three condenses Book 3 (Macroeconomic and Budgetary Framework) and Book 4 (Monitoring/Assessment). - Chapter 15: macroeconomic outlook under the strategy; strategic budgetary framework (Global MTEF); financing requirements. - Chapter 16: strategies for financing DSCERP with budget appropriations, external resources, and private resources; financing innovations including public-private partnerships for infrastructure. - Chapter 17: institutional and technical arrangements for execution, monitoring, and assessment; capacity implications for DGGT, MEPATI coordination units, sectoral ministries, INS, and DGPD. - Supporting material: - Document contains boxes illustrating relevance of selected fields of action and strategies, using databases produced by Congo (official statistics), the World Bank (World Development Indicators, 2010), and other traditional partners of Congo. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpt).* ### 3. THE MAIN PILLARS OF THE STRATEGY FOR 2012-2016 ### 3. THE MAIN PILLARS OF THE STRATEGY FOR 2012-2016 ### Strategic framework and headline objectives - The 2012-2016 strategy is organized around five pillars to respond to challenges of growth, employment, and poverty reduction. - Pillar 1: GOVERNANCE is defined across political, administrative, judicial, economic and financial, national security and defense domains. - Core commitment (through the DSCERP) to the following objectives and actions: - (i) remedy government shortcomings by restoring the prerogatives of public authority; - (ii) consolidate peace, security, and institutional stability; - (iii) improve capacities for overseeing, promoting, and monitoring and assessing government actions; - (iv) promote the emergence of a more participatory democratic environment more suited to the Congolese community base; - (v) improve the handling of Congolese problems; - (vi) promote democratic openness and citizen involvement; - (vii) promote the values of initiative and accountability; - (viii) institute a results-based development management system; - (ix) create a culture in which the victorious majority is attentive and tolerant and the opposition is critical but participatory and constructive; - (x) ensure the regular, satisfactory, and harmonious functioning of institutions; - (xi) create centers of administrative excellence and suppress corruption, misappropriation, fraud, and other wrongdoing; - (xii) promote local governance and community development; - (xiii) foster the efficient and rational management of human resources. ### Pillar 1 — Governance: Political governance - Situation, achievements, and challenges - Democratic process resumed since late 1990s conflicts; institutions from the Constitution of 2002 improved political situation and governance within PRSP framework. - Recent elections (legislative, local, presidential, and senatorial) cited as evidence of progress. - Remaining challenge: complete the process of restoring government impartiality to ensure institutional stability and development. - Key strategies, programs, and actions - General objective: build the Congolese nation on participatory democracy, social cohesion, decentralization, regional and international cooperation, and prevention of conflicts to consolidate peace. - Key actions include: - enforcement of the law on political parties and organizations; - establishment of the status of the opposition, of elected representatives, and of persons who have assumed high government office; - acceleration of the decentralization process; - strengthening of the press and of the freedoms of opinion and expression; - strengthening of civil society. ### Pillar 1 — Governance: Administrative governance - Situation, achievements, and challenges - 1990s conflicts severely damaged administrative apparatus and public service quality; reforms led to increases in civil service staffing and resources, reorganization, anti-corruption entities, and strengthened local government capacities. - Major deficiencies remain: (i) outdated laws and regulations governing civil servants and the social welfare system; (ii) inadequate definition of responsibilities, structures, jobs, and staffing; (iii) difficulties controlling the wage bill and lack of an attractive compensation policy; (iv) aging of government workers and obsolescence of the civil service career tracking system. - Key strategies, programs, and actions - Objective: rebuild an administration in service to development and the public via modernization and resizing based on priority missions of sovereignty and guiding development. - Major programs include: - (i) reform of the fiscal year legal framework for the civil service; - (ii) effective management of civil service employees; - (iii) strengthening of human capacities; - (iv) reorganization of departments and development of results-based management tools; - (v) introduction of a compensation system that encourages performance and improves the effectiveness of government action; - (vi) establishment of the territorial civil service. ### Pillar 1 — Governance: Judicial governance - Situation, achievements, and challenges - Progress in judicial infrastructure and legal reforms, including OHADA membership; however, legal certainty for private operators remains inadequate, harming the business climate and private investment. - Noted progress in protecting rights of indigenous peoples. - Key strategies, programs, and actions - General objective: guarantee impartial, efficient, and diligent justice in service to development and the public by strengthening the rule of law through: - (i) accelerating modernization of the judiciary; - (ii) enhancing the protection of human rights; - (iii) stepping up the fight against corruption and impunity; - (iv) expediting enforcement of OHADA laws to improve the business climate. - Major programs: - (i) continue rehabilitation and construction of judicial and penitentiary infrastructure (tribunals, courts, detention centers); - (ii) promote legal knowledge and publish/disseminate legal texts and procedures; - (iii) promote a business-friendly environment through enforcement of OHADA business law provisions. ### Pillar 1 — Governance: Security and national defense governance - Situation, achievements, and challenges - National defense: foreign-attack risk waning; shift to managing domestic conflicts requires adapting armed forces (urban operations, doctrine, equipment, projection and support capacities). - Security: objective to guarantee free movement of persons and goods; increase in mass demonstrations; rise in crime, organized crime, drug trafficking; growth of terrorism and cross-border phenomena requiring enhanced investigative resources. - Key strategies, programs, and actions - Two major pillars: - Professionalization of law enforcement by rationalizing and strengthening human resources and upgrading infrastructure and equipment of the army and national police. - Involvement of law enforcement in poverty reduction activities, notably participation of the army in development (infrastructure construction, production of goods and services) and in youth training. ### Pillar 1 — Governance: Economic and financial governance - Situation, achievements, and challenges - Congo achieved average growth of 7.0 percent in recent years driven by oil and non-oil sectors; non-oil sector performance is encouraging. - GDP per capita amounted to $1,581.5 in 2010. - Inflation stabilized at around 4 percent. - External public debt was reduced to 19.9 percent of GDP. - Fiscal and institutional reforms implemented - New functional classification of budget expenditure aligned with international norms. - Two action plans: PAAGFP (public financial management) and PAAGIP (public investment). - New procurement code and new expenditure chain clarifying ministerial budget responsibilities. - Unique Taxpayer Identification Number (TIN) for each taxpayer. - ASYCUDA implemented at customs for better revenue control and secure collection. - Bill on State taxation submitted to Parliament to align with Economic and Monetary Community of Central Africa directives and sanction results-based budget programs. - Additional actions (French text) include quarterly certification and transfer of petroleum revenues to the Treasury within 45 days following the date of shipment; adherence to the Extractive Industries Transparency Initiative (ITIE) in 2004; master plan for finance ministry computerization; adoption of instruments of strategic planning and budgeting (CDMT) and an integrated system for revenue and expenditure monitoring; liberalization and restructuring of the financial sector, banking system restructuring, reforms for the insurance and reinsurance market, and restructuring of the public operator ARC (Assurances et Réassurances du Congo). - Key strategies, programs, and actions - Main objective: expand the productive base, develop services, and improve financial sector governance through: - (i) improving provision of public services in support of economic activity; - (ii) improving the business climate; - (iii) modernizing management of public enterprises and government; - (iv) delegating provision of certain public services to private operators; - (v) conducting an integrated strategy for diversification of the Congolese economy. - Programs to remove constraints on the business climate: - (i) promote a competitive economic environment by liberalizing and regulating various markets; - (ii) increase role of the High Council for Public-Private Dialogue and create an investment promotion agency and a subcontracting exchange; - (iii) strengthen private sector financing institutions, including creation of an SME Development and Guarantee Fund (FIGA) and other institutions to finance the economy. ### Pillar 2 — Growth and diversification: rationale and cluster approach - Context and rationale - Reforms in recent years enabled Congo to achieve an average annual growth rate of 7.0 percent in the 2008-2010 period; World Bank ranks Congo among the most competitive economies in sub-Saharan Africa during that period. - Growth remains largely dependent on the oil sector, though non-oil sector growth is rising. - Strong, diversified growth is necessary to create jobs, boost income, and improve living conditions; without it, poverty and vulnerability cannot sustainably decline. - Cluster-based diversification policy - Strategy: diversification by “clusters” of activities with cross-cutting assistance to enhance subsector competitiveness; clusters cover enterprises, institutions, lead sectors, support activities, infrastructure, and basic economic services. - Cluster approach aims to organize operators by integrated subsector to better identify needs and target support in infrastructure, human resources, financial services, and institutional support, ensuring consistency across sectors for diversification and transformation. - Seven planned clusters: - (i) agriculture and the agrofood chain; - (ii) forestry and wood industries; - (iii) oil and hydrocarbons; - (iv) mines; - (v) buildings and construction materials; - (vi) tourism and hotels; - (vii) financial services. - Special Economic Zones (ZES) approach to be included to catalyze investment, processing, and exports. - Targeted subsectors: food-producing agriculture around cities; agricultural export subsector in the Cuvette and Sangha areas; mining subsector (iron ore around Zanaga-Mayoko to the south, Souanké to the north, and “other ores” such as polymetallic ores, potassium, magnesium, etc.); oil and hydrocarbons on the coastal front around Pointe-Noire. ### Pillar 2 — The “Oil and Hydrocarbons” cluster - Strengths and challenges - Crude oil reserves estimated at about six billion barrels, or the equivalent of 40 years of production at the current rate. - Competitive in exploration and operating costs; potential improvement from major investments and subsector reforms to rationalize production capacities and methods. - Natural gas reserves approximately 73 billion cubic meters, or the equivalent of 20 years of production at the current rate; natural gas production remains marginal. - Low national content: suppliers and subcontractors largely outsourced abroad due to lack of a national integration strategy. - Key strategies, programs, and actions - Ambitious three-part program to develop the hydrocarbons subsector: - (i) Cluster leads: increase refining capabilities by building a new refinery with a capacity of more than 4 million tons per year, ensure regular supply of oil products throughout the national territory, and promote the petrochemical sector by installing petrochemical processing units. - (ii) Support activities: improve management of exploration and production by applying the new legal and tax framework of the “upstream oil” sector, adopt and implement a petroleum code and a natural gas code, and optimize means of combating pollution caused by oil operations. - (ii) Infrastructure and other support services: establish a major school for careers in the oil and gas industries, and continue modernization and expansion of infrastructure in the Pointe-Noire area. *Source: _cr12242 - 3. THE MAIN PILLARS OF THE STRATEGY FOR 2012-2016.* ### 81. Strengths and challenges. Congo has large mining reserves that remain under-explored ### 81. Strengths and challenges. Congo has large mining reserves that remain under-explored ### Mining — strengths and challenges - Congo has large mining reserves that remain under-explored and underdeveloped. - Current mining production is still essentially artisanal, although the country experienced an industrial period in the past. - Several potassium, polymetallic ore, and iron ore operations could be launched during the DSCERP period. - Favorable prospects on the international market and wealth of deposits encourage development. - Low production costs owing to the proximity of the port and the existence of railways in Congo, Cameroon, and Gabon are advantages. - National actors are not well represented in the chain of direct or support activities. - Infrastructures, economic support services, and human resources remain seriously deficient. ### Mining — key strategies, programs, and actions - Direct subsector (cluster leads): - Promote artisanal mining by organizing “diamond and gold subsectors.” - Encourage foreign investment and industrial operations to relaunch ore prospecting, production, and processing at the local level. - Support activities: - Organize subcontracting activities by creating a subcontracting exchange. - Infrastructure and other support services: - Strengthen basic infrastructure to facilitate access to operating zones (means of transport, supply of power and water). - Create a mining institute in partnership with operators. - Implement reforms to provide institutional support to the subsector, particularly by enforcing the Mining Code adopted in 2005. - Protect the environment and ensure enterprises fulfill their social responsibilities to populations living next to mining areas. - Strengthen protection of mining assets by inventorying national mining potential and drawing up a geological and mining map. ### Agriculture and Agroindustry — strengths and challenges - Congo has more than ten million hectares of arable land, more than 90.0 percent of which remains uncultivated. - Geographic location spanning the Equator is conducive to year-round farming. - Two large river basins (Congo and Kouilou-Niari) provide strong potential for fish production. - Sector performance is suboptimal despite promising international market prospects for agricultural and fish products and byproducts. - Constraints include: - Heavy predominance of small family farms in a very sparsely populated country, particularly in rural areas. - Lack of sufficient human, technological, and financial resources leading to low productivity and incomes. - Rural exodus and the aging of agricultural assets. ### Agriculture and Agroindustry — key strategies, programs, and actions - Cluster leads: - Modernize small farms, fisheries, and aquaculture. - Expand industrial agriculture. - Develop aquaculture in floating cages with hatcheries. - Support activities: - Organize the production and distribution of inputs. - Infrastructure and other support services: - Grant land for large industrial farms. - Build infrastructure for unloading, processing, and preservation of agricultural, fish, and meat products. - Build warehouses and markets (MIN, MID, and MIL). - Build fishing and aquaculture infrastructure (jetties). - Upgrade the irrigation system and rural infrastructure and equipment. - Institute soil management and strengthen producers’ technical capacities. ### Forestry and Wood Industries — strengths and challenges - Forestry is the second most productive sector, contributing 5.6 percent to GDP formation and accounting for 10 percent of the country’s foreign trade. - Forestry provides nearly 11,000 direct jobs and approximately 5,000 induced jobs. - The country does not earn enough revenue from forests due to deficient processing rates, little control of the value chain, and inadequate taxation. - Production of non-wood products remains an informal activity. ### Forestry and Wood Industries — key strategies, programs, and actions - Sectoral strategy set out in the “Wood and Forestry” plan aiming for better governance and a genuine industrial strategy around the forestry cluster. - Programs include: - Sustainable management and development of forestry and wildlife resources: - Development of production forests (9,519,690 hectares). - Economic development of the wood subsector (second- and third-degree processing) and non-wood forestry products (production of resins and oils). - Reforestation and regeneration of forestry resources (600,000 hectares of plantations out of the projected one million in ten years). - Development of parks and protected areas (3,680,424 hectares of protected areas). - Sustainable development: - Strengthening the legislative framework through a sustainable development strategy, including standards and indicators, and creating a National Sustainable Development Commission. - Environmental protection: - Establish environmental education program, promulgate and disseminate the law on the environment, and manage wetlands. ### Buildings and Construction Materials — strengths and challenges - Infrastructure rehabilitation program and robust growth of private housing construction offer development opportunities. - Constraints include: - Shortage of construction projects. - Unsafe construction quality. - Poorly organized sector, including norms and standards issues. ### Buildings and Construction Materials — key strategies, programs, and actions - Development based on three strategic pillars: - Improvement of construction industry performance. - Development of construction sector human resources. - Enhancement of private construction sector capacities and competitiveness. - Key actions: - Expansion of the interurban network. - Continuing development of basic infrastructure in urban environment and construction of low-cost housing. - Organization of the real estate sector pursuant to a specific regulation. - Promotion of local construction materials, including wood. ### Tourism and Hotels — strengths and challenges - Natural assets suitable for ecotourism and recreation. - Development hampered by: - Lack of an effective sectoral strategy to promote growth. - Inadequate hotel infrastructure. - Deficiencies in infrastructure services, particularly transport, raising access costs. - Weakness of human resources and training institutions. - Underdevelopment of tourism sites and difficulty of access. - Lack of a recreational policy. ### Tourism and Hotels — key strategies, programs, and actions - Development program focused on: - Expanding hotel infrastructures. - Conducting studies for the development of tourism sites and making investments to promote them. - Strengthening human capacities in the sector, including training schools. - Expected outcomes: increase tourism’s contribution to economic growth and poverty reduction, raise foreign exchange flows, contribute to local development, and promote the national ecological environment. ### Financial Services — strengths and challenges - Financial sector reorganization expanded the banking sector to: - nine (09) commercial banks; - sixty-two (62) microfinance institutions; - four (04) funds transfer companies; - one (01) Agriculture Support Fund; - six (06) insurance companies; - two (02) retirement and social security funds. - Lacks business and investment banks, development banks, specialized banks, and financial establishments. - SOCOFIN, the only leasing company in Congo, was taken over by BGFIBANK CONGO in 2010. - Financial system remains underdeveloped, poorly diversified, and dominated by commercial banks. - Despite relatively high deposits (46 percent of GDP), lending is low (15 percent of GDP). - Low rate of banking penetration (roughly 3 percent).1 ### Financial Services — key strategies, programs, and actions - Under the Poverty Reduction and Growth Facility (PRGF) program, 2012-2016 focus on: - Provision of nonfinancial services to enterprises. - Establishment of loan incubators. - Creation of specialized institutions. - Creation of a Caisse de Dépôts et Consignations (CDC) to use savings collected by social security funds for long-term financing of general interest projects (low-cost housing, urban renewal, transport infrastructure, hospital real estate, etc.) and to support local governments. - Government undertakes, in 2012-2016, to: - Provide the country with financial tools appropriate for financing its economy. - Promote long-term financing. - Increase access to banking services and the delivery of nonfinancial services to enterprises. - Regulate domestic funds transfers. - Modernize the microfinance sector. - Complete the insurance sector overhaul. - Publicize requirements for licensing insurance intermediaries and develop micro-insurance. - Promote development of specialized financial institutions. - Improve functioning of the National Credit Council (CNC). - Finalize establishment of the SME and Handicrafts Development and Guarantee Fund (FIGA-PME/A). - Create the Caisse de Dépôts et de Consignations (CDC). - Encourage public-private partnerships for project financing. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 100. Access to good quality infrastructure services is an indicator of both economic ### _cr12242 - 100. Access to good quality infrastructure services is an indicator of both economic ### Overview - Access to roads, energy, water, and telecommunications is both an end in itself and an essential instrument for modernizing the economy and achieving shared growth and prosperity envisioned by the “Future Path.” - Infrastructure services are production inputs that affect production, transaction, and distribution costs, national competitiveness, and connectivity to domestic, regional, and international markets. - The government of Congo has made major efforts in recent years to develop basic infrastructures; these efforts should be stepped up and better organized. ### A. Roads and Road Transport — Situation, achievements, and challenges - Road network size and condition: - Congo’s road network consists of 20,925 km of roads, most of which are in very poor condition. - Less than 10.0 percent (1,976 km) of the network are paved, including urban roads. - Since the 2000s the government increased programs to pave and rehabilitate the road network; approximately 1,500 km of paving programs are currently in progress. - Main challenges: - (i) the extent of deterioration of the existing network; - (ii) the inadequacy of road maintenance; - (iii) the lack of organized road transport companies; - (iv) the weakness of vehicle technical inspection units; - (v) the inadequacy of road administration capacities. Key strategies, programs, and actions - Improving road transport infrastructures: - Implement the road network improvement and modernization program in accordance with the PNT (National Transport Plan) by: - (i) continuing and completing projects already begun; - (ii) paying greater attention to maintaining and protecting the road system thus created; - (iii) undertaking new actions to improve/expand the interurban network and accelerate urban infrastructure development. - Pay special attention to investment programs adopted under NEPAD and PDCT-AC, including the CEMAC integrating network (currently behind schedule and lacking sufficient resources). - Key projects: - (i) construction and paving of the Pointe-Noire-Brazzaville-Ouesso-Bomassa-Enyélé (RN1 & RN2) backbone network; - (ii) rehabilitation and paving of the connecting routes of the ten (10) departments with the backbone network; - (iii) protection of the road system by adopting a specific regulation, acquiring axle scales, and enforcing rainy season road closures; - (iv) construction of regional integration routes (examples listed: CAR and Chad via the Ouesso-Enyélé-Mongoumba road; Cameroon via the Ketta-Sembé-Souanké road; Gabon from Ngongo; Cabinda from Nzassi; the DRC via the Brazzaville-Kinshasa road-railway bridge). - Opening up and rehabilitating agricultural roads to facilitate access to major production areas. - Facilitating road transport: - Measures include tightening and strictly enforcing road regulations (rules, signaling, etc.), liberalizing trade by removing nontariff barriers to free movement, and promoting quality road transport services for operators. - Construction of bus stations, rest areas, service stations, etc. - Revitalize and reorganize the BCBTP and the BEBATP to work in tandem with external control and inspection firms and offices to ensure effective control and quality of works. ### B. Other Transport Modes: Rail, Air, River, and Sea - Rail transport — recent achievements and challenges: - Major effort to improve railway infrastructure via the CFCO Rehabilitation and Equipment Program launched in 2007; program continues and produces tangible results. - Deficiencies: (i) aging of Chemin de Fer Congo Océan (CFCO) equipment and personnel; (ii) inadequacy of transport and traction equipment; irregularity of traffic and level of services. - Rail key strategies, programs, and actions: - Government committed to successful rail operation by: - (i) rehabilitating tracks, stations, and the maintenance shop; - (ii) upgrading traction and transport equipment; - (iii) restaffing and capacity-building; - (iv) resuming the CFCO privatization procedure, particularly to place it under concession. - Key actions include continuing CFCO modernization by acquiring traction equipment and railcars; establishing standards and rehabilitating the line linking Pointe-Noire and Brazzaville (eliminating track features, rehabilitating the long tunnel, constructing civil engineering works, restaffing, technical capacity building via workshop and training center activities); improving management through privatization (management contracts, leasing contracts, concession agreements); and monitoring by private operators of railway sections linking mining operations to ore ports. - Air transport — recent achievements and challenges: - Significant progress modernizing Brazzaville and Pointe-Noire international airports through renovation and expansion; these improvements have made these cities regional “hubs.” - Concession agreements granted for operation of Brazzaville, Pointe-Noire, and Ollombo airports. - Challenge: initial usage rate of these airports remains low; maintenance costs are a concern, though Special Economic Zones, industrial parks, and tourism sites nearby are expected to offset initial costs. - Air key strategies, programs, and actions: - Continue air transport modernization by: - (i) developing airport facilities throughout the country; - (ii) upgrading safety and assisted navigation equipment; - (iii) expanding the network of weather stations; - (iv) building capacities of national operators and monitoring activities of other operators (travel agencies, tour operators, airlines, public and parapublic enterprises). - Key actions include continuation of airport construction programs in principal towns of departments; continuation and completion of Brazzaville, Pointe-Noire, and Ollombo modernization; strict enforcement of air transport regulations to ensure passenger safety and reciprocity rules. - River transport — recent achievements and challenges: - Efforts made to improve navigability of waterways, but traffic organization remains weak—e.g., port of Brazzaville average completion time for formalities by arriving travelers is 45 minutes on average, instead of the 10 minutes mentioned in international standards. - Navigation problems on certain tributaries led to diversion of wood shipments from northern Congo to Douala (Cameroon). - Buoyage operations: 1,050 km in 2009 and 1,200 km in 2010. - Dredging: 210,000 m3 in 2009 and 233,000 m3 in 2010. - Constraints: insufficient investments in maintenance equipment, inadequate improvement of wharves and warehouses, and traffic control deficiencies. - River key strategies, programs, and actions: - Step up river maintenance and river port rehabilitation operations to facilitate wood shipments from the northern region and improve flow of fishery products (inland fisheries). - Key actions: - (i) construction and rehabilitation of secondary ports; - (ii) expansion and improvement of Brazzaville Beach and rehabilitation of the port of Brazzaville; - (iii) dredging and construction of embankments in the port of Mossaka; - (iv) access dredging in the port of Brazzaville; - (v) implementation of a special program to facilitate river transport, in line with trade facilitation strategies. - Marine transport — recent achievements and challenges: - Capacities of the deepwater port of Pointe-Noire expanded under the PAPN rehabilitation program, including rehabilitation of three (3) bonded warehouses. - Ongoing rehabilitation projects (access, networks, etc.) will further enhance port functionality and competitiveness, reinforcing its role as a regional “hub.” - Marine key strategies, programs, and actions: - Continue promoting shipping by: - (i) providing support to the PAPN for development of port infrastructure and equipment; - (ii) supporting development of security, safety, and marine navigation infrastructure and equipment; - (iii) implementing a policy to facilitate marine transport as part of the trade facilitation program. - Key actions: - (i) monitoring performance of the concession agreement for the terminal of the Autonomous Port of Pointe-Noire by Congo Terminal; - (ii) modernizing administrative facilities of the Autonomous Port of Pointe-Noire (including construction of new headquarters); - (iii) enhancing surveillance of Congo’s territorial waters by acquiring appropriate equipment and protecting the marine and coastal environment by stepping up the fight against polluting effects of oil production barges; - (iv) creating a One-Stop Maritime Window (GUMAR); - (v) implementing a special program to facilitate marine transport, in line with trade facilitation strategies. ### C. Energy and ICTs - Energy — strengths, achievements, and challenges: - Hydroelectric potential: approximately 14,000 MW identified; currently barely 194 MW tapped. - Recent actions to close the energy gap include: - construction of the Imboulou hydroelectric power plant (120 MW); - construction of the natural gas-fired plants of Ndjeno (50 MW) and Côte Matève (300 MW); - rehabilitation of transport lines and associated transformer stations; - rehabilitation of power distribution networks of Brazzaville and Pointe-Noire; - expansion of rural electrification from the Imboulou plant. - Main challenges: - rehabilitation of the distribution networks of Brazzaville and Pointe-Noire; - pursuing construction of the energy highway intended to link the south to the north and with neighboring countries; - connection to the national network of all large cities through which the energy highway passes; - construction of new dams (Sounda, Kouembali, Chollet, Liouesso ...); - improvement of the rate of rural electrification coverage through appropriate energy sources (solar, wind, pico- and micro-hydroelectric plants); - optimization of subsector service management via appropriate managerial and commercial choices. - Energy key strategies, programs, and actions: - Action program to significantly improve capacity for generating and distributing electricity in urban and rural areas with specific objectives: - (i) strengthening capacities for generation, transport, and distribution of electric power; - (ii) expanding rural electrification; - (iii) deepening the reform of the governance of the sector; - (iv) developing renewable energy resources. - Postal services, telecommunications, and ICTs — recent achievements and challenges: - SOPECO has undertaken renovation and modernization of post offices. - Regulatory agency established: Postal and Electronic Communications Regulatory Authority (ARPCE). - Mobile telephone infrastructure investments increased capacities: national coverage rate of 90 percent (100 percent in urban areas and 72 percent in rural areas); subscriptions have soared; Congo has some of the lowest communication costs in sub-Saharan Africa. - Access to ICTs remains limited to a small segment of the population due to high cost of equipment and services. - ICT key strategies, programs, and actions: - Objective: ensure all population segments enjoy access at the lowest possible cost to postal, telephone, and ICT services. - Planned actions include: - (i) strengthen institutional and legal framework of postal and telecommunications sector; - (ii) reestablish the community postal services sector and further develop fixed telephony; - (iii) formulate and implement a flexible ICT policy; - (iv) strengthen institutional and legal framework of the communications sector; - (v) strengthen data-producing entities; - (vi) improve national media coverage. - Key actions: - (i) reform and strengthen the regulatory authority; - (ii) renovate, equip, and modernize post offices; - (iii) reassign personnel and strengthen human capacities; - (iv) overhaul wired (fixed) telephony installation system; - (v) facilitate acquisition of modern, high-performance equipment; - (vi) popularize use of IT and the Internet via fiber optic connection; - (vii) enforce existing laws; - (viii) strengthen human and material capacities of press and communications entities and agencies; - (ix) upgrade national radio and television equipment to achieve a high level of performance and operation. ### D. Water, Sanitation, Housing, and Urban Development - Water — recent achievements and challenges: - Despite abundant water resources, serious problems of access persist due to: - (i) inadequate water quality control mechanisms; - (ii) aging and deteriorated equipment; - (iii) insufficient watering places in rural areas; - (iv) deficiencies in sectoral governance. - Government actions already taken: - Brazzaville: rehabilitating the Djoué water treatment plant; supplying drinking water in peripheral neighborhoods; rehabilitating and expanding drinking water distribution network. - Pointe-Noire: constructing a new Drinking Water Supply System (DWSS); rehabilitating and expanding drinking water distribution network. - Departments and secondary cities: rehabilitating water production and storage infrastructures in departmental capitals and constructing DWSS. - Rural areas: drilling wells at several village locations. - Water key strategies, programs, and actions: - Continue efforts to improve national water production and distribution capacity with priority programs: - (i) continuing and completing work to expand and modernize the Djiri water plant; - (ii) rehabilitating urban water distribution networks; - (iii) continuing construction of water supply units in secondary centers and drilling wells in villages; - (iv) improving management of the National Water Distribution Company (SNDE) through privatization under management, leasing, or concession agreement. - Sanitation — recent achievements and challenges: - In urban areas, the ECOM2 shows that the individual sanitation coverage rate (flush toilets and improved ventilated latrines) is adequate but still too low. - Major remaining challenge: installation of liquid, solid, or gaseous waste collection and treatment infrastructures to improve population living conditions. *Source: Excerpt from National Development Plan CONGO DSCERP 2012-2016 (chapter on infrastructure and services).* ### 128. Key strategies, programs, and actions. The government plans to accelerate the ### _cr12242 - 128. Key strategies, programs, and actions. The government plans to accelerate ### Waste collection and sanitation - Principal actions to improve living conditions through modern liquid, solid, or gaseous waste collection and treatment infrastructures: - (i) extending appropriate technologies through small-scale construction of flush toilets in both urban and rural areas, improving ventilated latrines, and ecological latrines in schools; - (ii) disposing of solid waste in controlled landfills; - (iii) rehabilitating existing storm drains and constructing new ones; - (iv) constructing sewer systems and treatment plants in hospitals, hotels, and industrial installations; - (v) implementing a household awareness program to improve hygiene and public health, consistent with health promotion strategies. ### Housing and urban development — recent achievements and challenges - Urban renewal and densification programs in Brazzaville and Pointe-Noire have led to many building projects by government and private enterprise. - Banque Congolaise de l'Habitat (BCH) created to oversee developers and households in home purchases, but results lag behind population needs. - Government challenge: accelerate implementation of a social housing construction program and provide adequate home purchase financing mechanisms, particularly for low-income populations. ### Housing and urban development — key strategies, programs, and actions - Key actions include: - (i) reform of urban planning and land law; - (ii) development and strict application of urban development plans; - (iii) creation of the land use management agency; - (iv) continuation of the social housing construction program; - (v) conduct of studies on creation of the National Housing Fund, on the National Housing Strategy, and on procedures and sources for assistance to social housing developers and buyers; - (vii) effective oversight of the strategy for developing the “Buildings and Construction Materials” cluster to foster increased national capacity to produce local construction materials (clay bricks, tile, etc.) at affordable prices. ### Education — overall results (ECOM2 and trends) - Between 2005 and 2011: - rate of access to primary schools improved from 86.6 percent to 91.5 percent; - net primary enrollment rate increased from 86.8% to 89.3%; - households’ rate of satisfaction with primary school increased from 27.3% to 30.8%. - Boy-girl parity confirmed in basic education. - Location disparities persist in 2011: - primary access: rural areas 42.5%, urban areas 84.7%. - Secondary education progress: - gross enrollment rate reached 84.5 percent in 2011 compared to 65.3 percent in 2005; - net enrollment rate increased from 44.4 percent to 59.1 percent between 2005 and 2011; - rural vs urban secondary net enrollment: 32.8% compared to 69.7%. - Recommendation: decentralization policy should assign greater responsibility to departments in basic education. ### Education — preschool (situation and constraints) - Preschool coverage low: 13.5% in 2010. - Problems listed: - Low coverage nationally in terms of nursery schools and preschool educational facilities; - Current model for preschool educational centers ill-suited to settings; - Uneven coverage between rural and urban areas; - Marginal nature of early childhood special education; - Insufficient financial and material resources allocated to preschool education, which is also not included under free education; - Inadequate equipment and teaching aids in nearly all preschool education centers; - Educational objectives, content, and methods ill-suited to children’s affective, psychomotor, and intellectual needs and to the sociocultural environment; - Inadequate training of private school teachers and lack of continuing education for public school teachers; - Failure to take holistic development, including health, nutrition, and education, into account; - Lack of synergies among various ministries involved in early childhood; - Inadequate qualifications of staff responsible for early childhood services. ### Education — primary (situation and constraints) - Number of educational facilities increased from 1,542 in 2003 to 3,008 in 2007. - Private sector schools: 1,154 facilities in 2007 (63 officially recognized - conventionné) compared to 601 in 2003. - Public school staff increasing slower than private sector staff, despite growth in 2009 after free education implementation. - Principal internal constraints: - Frequent grade repetition, particularly in grade CE1; - Excessive use of support staff (who are not teachers) due to recurring teacher shortages; - High student/teacher ratios in major population centers; - Problems financing educational projects; - Enrollment (supply/demand) problems in hard-to-access areas and for vulnerable populations; - Limited supply of alternatives. ### Education — secondary (situation and constraints) - First-year student population increased from about 191,000 to 206,000 between 2005-2010, annual increase about eight percent. - Coverage remains far from 100 percent. - Problems in first and second cycles: - Old facilities; - Insufficient childcare facilities, particularly in rural areas; - Lack of laboratories and/or laboratories with not enough equipment; - Shortages of teaching staff, particularly in the sciences; - Inadequate teacher qualifications; - Excessive use of support staff (who are not teachers); - Inadequacy of budgets allocated to education. - Other hampering factors: - Under-representation of girls; - Uneven distribution of school enrollment concentrated in major population centers; - High rate of income poverty among heads of household; - Limited development of assistance and support activities (remedial training, school transportation, etc.). ### Education — key strategies, programs, and actions - Government plans include: - (i) increase the supply of preschool, primary, secondary, and literacy education; - (ii) improve access to education and educational quality; - (iii) develop school property; - (iv) solve the problem of uneven distribution of teaching staff nationwide; - (v) adapt school mapping to local requirements; - (vi) take measures to promote training of girls in sectors where they are poorly represented; - (vii) intensify campaigns to combat HIV/AIDS in schools; - (viii) emphasize equitable access to literacy programs; - (ix) promote literacy for women. ### Technical and Professional Education (TPE) — situation and challenges - TPE represents ten percent of college enrollment and 37 percent of high school enrollment. - Sector improvements: organized training to improve operational capacities; hiring new teachers improving student/teacher ratio. - Deficiencies and dysfunctions: - inadequate and uneven distribution of childcare facilities; - uneven distribution of staff nationally; - lack of infrastructure and equipment; - aging and insufficiently retrained staff; - weak partnership with the workplace, related sectors, and institutions in other countries; - training not suited to real needs; - unsuitable and often incomplete curricula; - limited range of training and limited access to higher education for subsector graduates; - unsuitability of certain disciplines, leading to dead-end training programs; - limited awareness of HIV/AIDS and limited dissemination of preventive measures. ### Technical and Professional Education — key strategies, programs, and actions - Specific efforts to improve labor market response, focusing on: - (i) improving access and retention by rehabilitating facilities and building additional facilities to provide better geographic coverage and diversification of training; - (ii) building density in the network of TPE facilities in collaboration with productive sector, urban community, and local community networks; - (iii) improving the technical platform of technical institutions; - (iv) upgrading teaching tools by revising training programs and content; - (v) defining new professional certifications and strengthening trainers’ skills; - (vi) efficiently mobilizing human and financial resources by hiring qualified teachers and diversifying financing sources; - (vi) developing a modern and dynamic partnership with the productive sector; - (vii) improving the school guidance system by upgrading the guidance counselor corps; - (viii) encouraging school attendance by girls by setting quotas, particularly in agriculture and industry. ### Higher Education — situation, achievements, and challenges - Actions taken to increase supply and improve quality and output of higher education. - Higher education sector opened to private enterprise to offset weaknesses of Marien Ngouabi University. - Recent actions: - (i) application of LMD (Bachelor’s/Master’s/Doctorate) system programs; - (ii) oversight and inspection of authorized private institutions of higher education; - (iii) redefinition of missions of Marien Ngouabi University by draft decree on reorganization; - (iv) construction of a new library within Sino-Congolese cooperation. - Deficiencies: - (i) lack of authorization for private higher institutions as of 2010; - (ii) unjustified duties and taxes (patents, flat-rate tax on salaries) for institutions with a public service mission; - (iii) no exemption on imported technical and teaching materials; - (iv) failure to partner with local enterprises for internships; - (iv) overly cautious banking sector regarding financing graduates’ plans. ### Higher Education — key strategies, programs, and actions - General objectives: - (i) promote and decentralize public supply of higher education; - (ii) promote more efficient and more competitive higher education nationally and internationally; - (iv) improve supply of services and streamline human resources management; - (v) redirect and better target social assistance to students. - Principal programs and key actions: - (i) improving management and steering of higher education; - (ii) improving quality and gender equity; - (iii) promoting scientific and technological research geared toward sustainable development; - (iv) redirecting higher education to the country’s development needs using a university-workplace relationship approach; - (v) strengthening infrastructures to accompany LMD reform; - (vi) granting scholarships, particularly to young women, and giving them access to university housing. - Commitment to rehabilitate the 11 existing institutions to improve intake capacity of Marien Ngouabi University. ### Scientific Research — situation, achievements, and challenges - Research conducted at Marien Ngouabi University and research and development facilities. - Notable results in: - Forestry: development of eucalyptus and limba cutting; highly productive industrial breeding of eucalyptus; creation of clonal plantations; - Agriculture: layering and grafting of fruit trees; micropropagation of food and fruit crops; in vitro conservation of food crop germplasm; creation of bacterial blight resistant varieties of cassava; - Intellectual property: 111 applications for protection submitted to the African Intellectual Property Organization (AIPO) during 2003 to 2007. - Flora and fauna studies: - catalogue of vascular plants estimating flora of Congo to be 4,397 species broken down into 198 families and 1,338 genera; - creation of a national herbarium in Brazzaville. - Some research (fish in inland waters, snakes, amphibians, mammals) remains fragmentary. - National scientific and technological development plan (PNDST) 2009-2013 being implemented by two coordination bodies: a higher council for science and technology and an inter-ministerial council on science and technology. - Constraints: internal (resources, management, effectiveness), external (sociopolitical burdens, development partner priorities), cross-cutting (population explosion, spread of HIV/AIDS, gender-based disparities), cultural, and socio-economic. ### Scientific Research — key strategies, programs, and actions - Government commitments: - (i) generate knowledge to transmit and disseminate it through education; - (ii) generate knowledge to inform agents of development; - (iii) produce, disseminate, and evaluate knowledge; - (iv) participate in production of knowledge at the global level; - (v) make generated knowledge available to agents of development. - Principal programs and key actions: - (i) building supply capacity (management of researchers, construction and rehabilitation of infrastructures); - (ii) building supply of useful high-level scientific and technical knowledge through programs on human and animal health, food safety, the environment and biodiversity, engineering, mineralogy and materials, man and his environment. - Principal actions related to these programs: - Increasing productivity of root crop and tuber production systems; - Improving quality of post-harvest conservation and diversifying processed products; - Ensuring urban centers have a regular supply of accessible products; - Developing a broad range of cereal, legume, and vegetable crop varieties adapted to agricultural and ecological diversity; - Helping improve sustainable management of natural ecosystems and genetic resources (plant, animal, and fishing); - Improving knowledge regarding non-woody forest products (NWFP) for sustainable management; - Disseminating information on climate change and contributing to land restoration and sustainable conservation; - Evaluating mineral resources; - Studying representations and practices of social agents regarding issues affecting man and his environment. ### Health and HIV/AIDS - Trends in health services access and performance are matters of concern. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 150. The indicators show that the situation barely changed between 2005 and 2011 or may even have ### _cr12242 - 150. The indicators show that the situation barely changed between 2005 and 2011 or may even have ### Health outcomes 2005–2011 - Rate of access to health services: fell from 68.7 percent in 2005 to 65.8 percent in 2011. - Health services utilization rate: fell from 26.7 percent in 2005 to 23.8 percent in 2011. - Women who received prenatal care: increased from 88.9 percent in 2005 to 91.9 percent in 2011. - Expectation: effective application of recent presidential decisions on making certain types of medical care free for mothers (Caesarian sections in particular) will help improve maternal health trends. ### Government response and budgetary decisions - The authorities designated 2012 as "the year of health" in the President’s Framework Letter for the 2012 budget and the accompanying Budget Guideline Paper. - Health’s share of the investment budget increased from 4.7 percent in 2011 to 6.5 percent in 2012. - The Ministry of Health is refining its action plan to improve effectiveness of interventions. ### Key strategies, programs, and actions for the health sector - Improving governance and direction of the sector by developing the institutional and legal framework for health development, planning, and programming, as well as reform of health sector financing. - Improving access to healthcare services by improving health coverage (building and equipping new health facilities, rehabilitating and equipping existing health training programs, etc.). - Reducing inequities in access to health services by ensuring access to healthcare for the poor and improving vulnerable pregnant women’s access to prenatal care (PNC), intermittent preventive treatment (IPT), and sulfadoxine-pyrimethamine (SP). - Strengthening the supply of healthcare by promoting health services, social markets, and communication and developing health action appropriation mechanisms. - Improving the quality of services by developing leadership, to include management teams, the provision of medically assisted procreation (MAP) and appropriate patient controlled analgesia (PCA), responding to the population’s needs, particularly for water, electricity, and a system for disposing of biomedical waste. - Managing medications by coordinating supplies, strengthening the Congo Essential Generic Drugs Agency (COMEG), streamlining the prescription of essential generic drugs (EGDs), and using appropriate guides in healthcare institutions, developing a quality assurance system, and managing auxiliary services, particularly the National Public Health Laboratory (LNSP) and the National Blood Transfusion Center (CNTS). - Combatting communicable and non-communicable diseases, with particular emphasis on maternal and child health. - Managing emergencies, disasters, and responses to epidemics by strengthening the health emergency management system and providing the departments with emergency kits. ### MDG assessment highlights (excerpted) - MDG 1: Income poverty incidence fell by about 15 points, from 50.7 percent in 2005 to 36 percent in 2011; the MDG of 35 percent would be quite accessible by 2015 at the current rate or with an increase in average growth. - MDG 2: Net enrollment rate increased by only 2.5 points in five years (2005-2011). Projected rate about 95 percent in 2015, five points below universal enrollment goal. - MDG 3: Primary enrollment nearly identical for girls and boys in 2011 (89.4 compared to 89.2). - MDG 4: Mortality rates of children under five and infants barely fell between 2008 and 2010; vaccination coverage for measles increased from 66.8% to 77.8% between 2008 and 2010. - MDG 5: Maternal mortality fell from 781 deaths for every 100,000 live births to about 624 deaths between 2008 and 2010, improving by about 52 points each year; MDG target of 365 deaths for every 100,000 live births would still be achievable between now and the year 2015 at this pace. - MDG 6: HIV/AIDS prevalence from 2009 seroprevalence survey: 3.2 percent nationally; 4.1 percent for women compared to 2.1 percent for men between the ages of 15 and 49. - MDG 7: Protected areas represent 11% of the national land area in 2010; forested area percentages cited: 65 percent in 2008, 65.1 percent in 1990, and 64.6 percent in 2002. - MDG 8: Internal financing insufficient; external assistance necessary; partnership priorities include youth unemployment, essential medications for disadvantaged, reducing inequities between men and women, ICT popularization, and improving standards of living. ### Nutrition - FAO (2007) food balance: average consumption is 2 512 Kcal per person per day. - 2009/2010 analysis: household diets lacking more in quality than in quantity. - Government intends to step up nutritional education at all levels through: - social communication; - educational communication; - institutional communication. ### HIV/AIDS: situation, achievements, and challenges - Overall HIV prevalence (both sexes combined) fell from 4.2 percent in 2003 to 3.2 percent in 2009. - Highest community prevalence: from 9 percent in 2003 to 4.8 percent in 2009. - HIV prevalence for ages 15–49: 3.2 percent; urban 3.3% vs rural 2.8%. - Implementation of the second generation strategic framework (2009-2012) progress: - Purchase and start-up of the first complete Mobile HIV Screening Unit (UMODEV) in December 2009. - Prevention activities among men who have sex with men (MSM). - Continued preventive work among sex workers. - Increased activity of the Yellow Line (HIV/AIDS information line) and appreciable increase in the number of calls. - Organization of AIDS fairs during school holidays in Brazzaville, Pointe-Noire, and Ouesso. - Continued cultural approach involving traditional mediators; larger numbers of people agree to be screened; increasing numbers of PLHIV being treated in the country’s twelve departments. - Principal programs and key actions: - Intensified preventive activities at the community level, at worksites, and in health care settings. - Improved overall management of those infected and affected by HIV/AIDS. - Improved supply and distribution of reagents, anti-retroviral drugs (ARVs), and consumables. - Strengthened follow-up/evaluation and epidemiological surveillance system. - Strengthened public-private and civil society partnerships. - Strengthened efforts to combat HIV/AIDS in schools, law enforcement, agriculture, forestry, and transportation. ### Social protection and inclusion of vulnerable groups - Social coverage remains weak; social protection measures currently limited to private sector officials and employees despite a framework law reforming social security. - Retiree counts: - National Social Security Fund (CNSS) retirees increased from 34,594 in 2009 to 35,205 in 2010. - Employee Retirement Fund (Caisse de Retraite des Fonctionnaires - CRF) covered 18,950 in 2010. - Pay-as-you-go model imbalance: one retiree for every four employees equilibrium has broken down. - Government plans: - Strengthen social protection policy within an integrated institutional framework addressing prevention and mitigation of social risks. - Strengthen employment, social insurance, and social security policies geared toward universal care. - Provide for social and professional integration of vulnerable people and social groups. - Key programs and actions: - Social and professional integration of the disabled. - Support for the elderly. - Psychosocial management of the indigent and victims of HIV/AIDS and other debilitating diseases. - Support for instituting protection and social security mechanisms for informal sector workers. - Better management of vulnerability to shocks. - Strengthened capacities of institutions working to develop solidarity. ### Promotion of mutual health organizations - Access difficulties partly due to insufficient capacity and financial resources, increasing precariousness and vulnerability of population groups, particularly the poorest. - Government plans to develop targeted programs to: - develop measures to encourage establishment of mutual health organizations; - encourage community mutual health organizations; - raise population awareness of advantages of belonging to a mutual health organization. ### Vulnerable groups: strategies and actions - Government will continue promotion efforts for women and other vulnerable groups consistent with inclusive development vision. - Efforts along three lines: - strengthening programs to promote women and their participation in political, economic, and social life on an equal basis with men; - strengthening programs to protect vulnerable groups (children, women, the elderly, indigenous peoples, etc.); - strengthening social protection and promoting mutual health organizations. ### Families and children: situation, achievements, and planned actions - Absence of a national pro-family policy; families face problems in housing, nutrition, education, health, and transportation. - Achievements and measures: - Free services: school fees, malaria treatment for children aged 0 to 15, identification and socio-economic reintegration for women presumed to be suffering from obstetric fistulas, Caesarian sections, etc. - Transportation premium of 10,000 CFAF for employees. - 10 percent increase in the minimum salary paid to civil servants, increasing from 64,000 to 70,000 CFA francs. - Increase of more than 100 percent in the family allowances the State pays each month to children in the care of employees: allowances increased from 1,200 to 2,000 CFAF in 2011 and henceforth increase to five thousand (5,000) CFAF per child, per month. - Fifty percent increase in student scholarships. - Between 2009 and 2010 the government took charge of about 22,106 orphans and other vulnerable children, reintegrated 300 street children, and educated 411 children. - Key strategies, programs, and actions for children: - Improved enforcement of regulations regarding the rights of children. - Systematic civil registration of children. - Combating childhood malnutrition, morbidity, and mortality, poor conditions in basic education, and early sexual activity in both urban and rural areas. - Special actions to combat exploitation of children (work, prostitution, child soldiers, trafficking in children) and guarantee care for children in difficult situations, particularly those infected and affected by HIV/AIDS. *National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 168. The situation, recent achievements, and challenges. Following preparation of the ### The situation, recent achievements, and challenges (content unit) ### Disabilities - Following preparation of the national action plan for the decade of disabled persons, the government was able to care for 1,600 disabled persons between 2009 and 2010. - Key strategies, programs, and actions: - Production of sign language and braille aids. - Literacy for disabled adolescents and adults. - Support for screening and early intervention for the disabled. ### Indigenous peoples and other minorities - Recent achievements: - Between 2009 and 2010, the government was able to educate more than 4,011 indigenous children and 4,864 benefitted from other programs. - Law No. 5/2011 was enacted on protecting and promoting the rights of indigenous peoples (civil, political, social, and cultural rights as well as the right to property). - Key strategies, programs, and actions: - Universal access to school for all citizens, particularly the children of indigenous persons while respecting their practices and customs as well as their specific calendar and agenda. - Effective exercise of civil and political rights recognized by the Constitution (through effective representation in government entities). - Preservation of their cultural heritage. - With regard to albinos, support will consist of providing certain specific types of medical care. ### Promotion of women - Situation and demographics: - Women represent more than half of the population (51.4%, according to the ECOM2 survey). - In rural areas, they take an active part in production (58.3%). - Women contribute directly to food security and family social life (basic education, health, child care, etc.). - Gaps and challenges: - Economic arena: access to land and financial capital. - Political arena: weak representation in government, in constitutional institutions, among elected officials, and in both public and private sector decision-making. - Government focus: women, children, and the family in its development program. - Key strategies, programs, and actions: - Improving women’s political, social, and cultural status. - Protecting and preserving the family. - Strengthening capacities of institutions promoting the family and households taking in orphans and vulnerable children. - Principal programs: - Economic: improving the land code to facilitate women’s access to land ownership; facilitating women’s access to the means of financing, including microfinance; accelerated literacy targeting women; strengthening women’s capabilities through targeted training programs. - Legal: revision of the legal framework to ensure gender parity (laws on inheritance, matrimonial law, political parties, etc.). - Political and administrative: appointment of women to government and public and private organizations; direct support for women’s associations. ### Sports, culture and the arts, civic education and youth - Sports and physical education — situation and achievements: - Infrastructure rehabilitations and constructions: A. MASSAMBA-DEBAT Stadium, Municipal Stadium in Pointe-Noire, Denis SASSOU NGUESSO stadium in Dolisie, Marien NGOUABI stadium in Owando, Oyo multi-purpose gymnasium. - Sporting achievements: - Soccer: junior African champion in 2007; CEMAC Cup winner in 2007 and 2010; bronze medalist in the African Cup, cadets category, and world quarter-finalist in the same category in 2011; gold medalists in the Francophone games in 2009. - Handball: Congolese teams finalists twice in continental competition; silver medalist in the African games in Maputo in 2011. - Table tennis: gold medalist in the Africa championship in 2007; gold medalist for women and bronze medalist for men in the 2009 world championship. - Sports key programs and actions: - Completion of the national sports development plan within a public-private partnership to give each department viable infrastructures. - Strengthening sports activity supply capacities with continued construction and rehabilitation of infrastructures. - Promotion of physical education via organization of sports platforms in schools and universities. - Promotion of sports through development of cooperation with international sports associations and organization of school, university, local, and departmental competitions. - Culture and the arts — situation and achievements: - Writers awarded prestigious literary prizes, including the Prix Goncourt in 2004. - Participation in the World Festival of Black Arts in Dakar in December 2010. - Construction of several monuments representing progress in affirming a cultural identity. - Culture and arts key programs and actions: - Protecting the national (natural, cultural, and artistic) heritage. - Promoting cultural and artistic industries (support for endogenous cultural industries, the national ballet, and the national theatre). - Constructing the City of Culture (to house FESPAM) and the national museum; managing national archives and documentation. - Constructing cultural and artistic spaces (house of culture including a library, performance and exhibition room, and a museum) in each department. - Developing national and international partnerships. - Civic education and youth — situation and actions: - Need for moral rehabilitation after political instability and breakdown of government administration; civic education is essential for modernization and industrialization objectives. - Principal programs and key actions: - Developing the national policy on youth and civic education. - Combating anti-values. - Promoting a culture of peace and citizenship education. - Improving the framework of the youth association movement. - Creating a risk capital fund for youth. - Developing and popularizing civic education programs in preschool, primary, secondary cycles, and professional arena. - Rehabilitating the youth camps (Djoué, Kindamba, Aubeville, Odziba). ### Pillar 5: Provide balanced and sustainable development — A. Balanced territorial development - Situation, recent achievements, and challenges: - Distribution of population, opportunities, and economic activities is quite imbalanced; significant gaps between rural and urban areas in living conditions and poverty. - Gaps in infrastructure and essential productive and social services (education, health, water) contribute to migration to cities and rural impoverishment. - Government has prioritized accelerated municipal development, decentralization, and local development programs, but these must be expanded and implementation accelerated. - Key strategies, programs, and actions: - Strengthen and implement programs nationwide to better distribute economic opportunities across departments and between cities and rural areas. - Major programs: decentralization, accelerated municipal development, programs to revitalize village life, and promote cross-border development basins. - Rural and urban development programs and policies targeting pockets of marginalization and poverty. - Strengthen accelerated municipal development and revitalization of towns: - Continue and strengthen accelerated municipal development strategy for urban areas; emphasize development and implementation of local economic development plans aligned with national sectoral strategies and Special Economic Zones (ZES). - Rural strategy: equip and clean up villages to make them hubs of local development, improving rural standards of living and supply to urban markets. - Key projects include: - Central government-department contracts: Financial tools of the land use policy specifying organizational, functional, and financial relationships and providing an annual statement of account based on local priorities. - Millennium villages: Being tested in Etoro and Obaba; experiment financed by the government, local communities, NGOs, and the UNDP. A new experiment is underway with the Ente Nazionale Idrocarburi (ENI) at Hinda. - Improve cross-border development basins: - Strategic response to reenergize trade with neighboring countries and develop involved zones near priority development corridors defined by NEPAD and heavy transport routes in the PDCT-AC. - Principal programs and key actions: - Prioritize projects with high integrative potential and develop areas of interdependence to transform cross-border areas into centers of prosperity. - Each basin will have a portfolio of projects included in a coordinated cross-border management and development plan (PCADT). ### Pillar 5: Provide balanced and sustainable development — B. Environmental protection and combating climate change - Objective: preserve natural resources while developing them sustainably for long-term well-being. - Programs include environmental protection and combating global warming. - Environmental protection actions: - Incorporate environmental protection into all socio-economic activities (agriculture, forestry, mining, energy, infrastructure, transportation). - Include training modules on these concerns in secondary, higher education, and professional training programs. - Plans to: - Develop non-wood forest products. - Create a wildlife park north of Brazzaville. - Implement the National Afforestation and Reforestation Program (PRONAR). - Develop the botanical and zoological garden in Brazzaville. - Combat pollution through the project “Combating the voluntary introduction of invasive plants and animals.” - Combating global warming: - Reduce the footprint of economic activities via a suitable REDD+ policy. - REDD+ implementation embodied in: - The pilot REDD+ URFE – north Pikounda project. - Installation of a Monitoring-Reporting-Verification (MRV) unit geomatics laboratory. - The pilot REDD+ Energy Efficiency project for large cities. - The REDD+ Management pilot project of community development series. ### Macroeconomic and budgetary programming of the strategy — A. 2012-2015 macroeconomic prospects - Growth: - Favorable international developments and effective execution of DSCERP programs project favorable performance to increase over 2012-2016. - Growth will reach an average annual rate of about eight percent, driven by increased activity in the non-petroleum sector. - The increase in oil drilling (Moho-Bilondo) and mining (iron, potassium, etc.) would “boost” growth and bring the average annual rate to more than 10 percent over the period. - Inflation: - Inflation could be held below five percent over the period, even falling below three percent for 2016, consistent with CEMAC convergence goals. - Drivers of low inflation: falling “imported” inflation with international price stability for food and petroleum; containment of structural inflation through reduced transaction costs, infrastructure strengthening, and trade liberalization; rationalization of the labor and financial markets and productivity improvements; prudent community monetary policies and a pro-growth but prudent fiscal strategy to prevent aggregate demand overheating. - Budgetary support: - Government expenditures: - Government plans to increase expenditures on a sustainable but prudent basis to prevent slippages that would imperil macroeconomic stability. - Plans to free up more resources for investment and hold the increase in total expenditures to about 11 percent per annum over the period 2012-2016, so that the ratio to GDP can be stabilized at about 40 percent. - Government revenues: - Mobilizing revenues will be a challenge; government will aim to mobilize revenues in line with needs while avoiding too high a tax burden on the private sector. - Plans to improve mobilization of own revenues through reforms underway and expansion of the tax base. - External resources should increase with strengthened multilateral partnerships; external resources will basically consist of financing at concessional rates, consistent with HIPC Initiative Completion Point and the Paris Declaration on ODA management. - Budget balance: - With the described trends, the budget balance will continue to have a surplus, possibly about three percent of GDP. - The primary balance excluding petroleum will remain at its current level, although with a deficit. - These trends will allow Congo to continue along the path of debt reduction. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 198. Reflecting the strategy’s priorities, the Medium-Term Expenditure Framework (Global ### _cr12242 - 198. Reflecting the strategy’s priorities, the Medium-Term Expenditure Framework (Global ### MTEF priorities and sectoral emphasis (2012-2016) - The Medium-Term Expenditure Framework (Global MTEF) indicates government efforts over the period 2012-2016 will relate to social development, diversification of the economy, and strengthening of infrastructures. - Particular emphasis on development of key growth sectors as set out in the clusters strategy: agriculture, livestock, fisheries, and silviculture, forest exploitation, mining, and tourism. - Infrastructure and human resources prioritized (communication routes, electricity, drinking water, ICT, etc.). - These priorities are expressed in relative shares of components in total government expenditures. - The MTEF indicates growth and social development sectors will see their respective share grow by 1.3 points between 2012 and 2016. ### Achievement of the Millennium Development Goals (MDGs) - Income poverty - Baseline scenario with non-petroleum growth of 10 percent shows reduction in rate of income poverty from 50.7 percent in 2005 to 33.4 percent in 2015. - The 2015 result is 1.6 points below the target set (35.0%). - Conclusion: implementation of the DSCERP will allow for substantial improvement in living conditions and achievement of MDG1 with respect to reducing extreme poverty. - Education - Net primary school enrollment rate will increase by an average of three percent a year. - Target of 100 percent enrollment reached in 2016. - Growth attributed to sustained increases in public expenditures allocated to education: 13.0% of budgetary expenditures in 2016 compared to 11.7% in 2011. - Health - Measures implemented: free treatment for malaria, HIV/AIDS, and Caesarian sections. - Baseline scenario indicates gradual improvement in child mortality and maternal mortality rates over 2012-2016. - However, improvements are insufficient to offset past delays and to achieve MDG health targets in 2015. - Recommendation: increased efforts required in resources allocated and improved effectiveness of action execution to reverse trends and reach MDG health targets in 2015. ### Macroeconomic and budgetary framework for stability - Taxation - Mobilizing revenues is a major challenge. - Government must ensure a tax framework that encourages private investment despite significant public funding requirements. - Public debt - Over 2012-2016, the average rate of discounted debt would be 19 percent, much less than the norm of 30.0 percent for comparable countries. - Outstanding discounted public debt would average 68 percent of own budgetary revenues, compared to the established ceiling of 200 percent according to debt sustainability criteria. - Conclusion: baseline scenario consistent with continued Congolese debt reduction. - Risks and scenarios - Economy remains very sensitive to international developments due to significant and continued weight of petroleum. - Government plans to manage the room to maneuver afforded by the oil bonanza to shelter the country from reversals. - The outcomes (10% GDP growth excluding petroleum) depend on determined and effective implementation of the government’s strategy. - Otherwise, the economy could return to downward trends and “stagnate” with erratic growth of about five to six percent a year, which would be insufficient to guarantee achievement of the MDGs. ### Financing the strategy (overall cost and gap) - Overall cost - Financing needed for the entire strategy over 2012-2016 would amount to about 13,000 billion CFA francs. - Government mobilization assumptions - Macroeconomic projections: real growth of 8 percent. - Average tax rate assumptions: 24 percent for the non-petroleum sector and 14 percent for petroleum income. - Under these assumptions, the government would mobilize about three-quarters (75%) of the financing from its own resources. - Financing gap - Remaining financing gap equals one-fourth of needs, or about 3,500 billion CFAF. ### Strategy for mobilizing financing - Planned mix of financing instruments: - (i) government loans under concessional terms; - (ii) issuance and sale of government securities to access subregional monetary and financial markets; - (iii) reliance on the private sector via Public-Private Partnerships, services contracts, licensing concessions, using BOTs (Build-Operate-Transfer) schemes in infrastructure construction, creating public-private companies, and calling for direct contributions from the population to finance social sectors (education and health). ### DSCERP structure, improvements, and implementation instruments - Purpose and scope - The 2012-2016 DSCERP (Growth, Employment, and Poverty Reduction Strategy Paper) is the first book of Congo’s National Development Plan (NDP) and presents an integrated summary of medium-term sectoral strategies and policies to implement the President’s “Future Path”. - Principal objective: accelerate society’s modernization and the country’s industrialization to generate increased and shared prosperity and prepare for Congo’s emergence in the global economy. - Improvements over the first PRSP (PRSP1) - Expanded thematic coverage beyond traditional poverty reduction to include political, administrative, judicial, and security governance, productive sectors, integrated diversification strategies, infrastructures, and human resources. - Broader planning horizon: five years for DSCERP versus three years for PRSP1. - Combination of five-year strategic objectives with three-year rolling program framework instruments (PAP and MTEF) for better sequencing, synchronization, and annual revision. - Emphasis on participatory preparation: sectoral ministries prepared the DSCERP, PAP, and program budgets under coordination of central agencies (Planning and Budget), improving adoption and accountability. - Operational annexes and instruments - Priority Action Plan (BOOK2: PAP_2012-2016): consolidates principal programs and action plans of sectoral ministries; attaches ministries’ program budgets (“Budgets by Program Objectives, BOP”). - Macroeconomic and budgetary framework for financing the strategy (Book 3: CMB-FS_2012-2016): forecasts medium-term macroeconomic prospects and profiles allocation of resources by strategic objectives, missions, and institutions. - Institutional Framework for Following up the Execution and Performance of Priority Action Programs (BOOK4: SEP-PAP): describes institutional mechanism and statistical/data processing tools for execution follow-up and impact evaluation. - Intended benefits of the DSCERP - Full sectoral coverage allows accounting for sectoral interdependencies, complementarities, and synergies. - Enables better trade-offs in budgetary choices across principal “cost centers”. - Strengthened participatory focus to ensure broad ownership: “everyone is covered, everyone is involved, everyone is recognized, everyone counts, and all will have to be accountable.” - DSCERP constitutes the core of the medium-term National Development Plan (“Comprehensive Development Framework”) for Congo, organizing programming of actions and aligning budget with strategy priorities. ### Rationale for the 2012-2016 DSCERP - Political and economic context - DSCERP is the “key product” of efforts to strengthen technical and institutional mechanisms for strategic planning and economic management focused on development results; program launched in 2008 with PRSP adoption. - 2009 marked a turning point: end of post-conflict transition to political stability and redeployment of collective attention toward economic and social development. - Presidential election on July 12, 2009 provided a new seven-year mandate and political legitimacy for the President’s vision (“Future Path”) of modernization and industrialization. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts provided).* ### 226. At the same time, the government is aware of the challenges of this new mandate, since it ### Government Awareness, Reforms, and Development of the 2012-2016 DSCERP ### Political challenge and mandate - The government recognizes the challenge of translating the promises of the “Future Path” into tangible achievements for the population and promoting Congo’s transition to economic emergence and shared prosperity (paragraph 226). - The government frames this as a major political challenge whose response will determine the country’s medium- and long-term economic prospects (paragraph 226). - The 2012-2016 DSCERP is presented as the common road map to rally the administration, public, private operators, and partners around an “Emerging Congo” project (paragraph 240). ### Debt relief, external partners, and resource use - Congo reached the Completion Point under the Heavily Indebted Poor Country Initiative (HIPC-I) in 2010, resulting in a significant reduction of its debt and reconnection with the international financial community on new terms (paragraph 227). - Debt relief is characterized as a renewed “bond of trust” with Technical and Financial Partners and releases funds to: - Complement domestic efforts. - Intensify reforms. - Implement an ambitious program of structural investments to diversify the economy, accelerate growth, create jobs, reduce poverty, and achieve the MDGs in 2015 (paragraph 228). - The 2012-2016 DSCERP and sectoral PAPs aim to mobilize domestic and foreign resources to increase budget margins, but achieving strategic objectives will require significant improvement in the effective use of resources and the quality of spending (paragraph 229). ### Reforms in economic and financial governance and planning tools - Major governance and management reforms undertaken since 2008 include (paragraphs 230–232): - Action Plan for Improving Public Investment Management (PAAGIP). - Government Action Plan for Fiscal Management (PAGGFP). - Installation of the Integrated Fiscal Revenue and Expenditures System (SIDERE). - Reform of government procurement and creation of the Public Procurement Regulatory Authority (ARMP). - Adoption of a new Organic Law Establishing the Budget Law (LOLFP). - Progress toward a system of Results-Based Management (RBM) in Development. - The government has adopted and introduced a Medium-Term Expenditure Framework (MTEF) to bridge planning and budgeting, shifting from “budgets of ‘means’” to “budgets of ‘ends’” and aligning budgetary allocations with strategic priorities (paragraph 232). ### Economic performance, volatility, and labor market outcomes - Recent years’ reforms and favorable international environment have ranked Congo among about a dozen developing countries with the best performance over the last three years, particularly in economic growth (paragraph 234). - Growth remains very volatile due to heavy dependence on petroleum resources with extremely variable prices, limiting the effects of growth on poverty reduction (paragraph 235). - Poverty remains significant: income poverty affects more than one-third of the population despite abundant natural resources (paragraph 235). - Private sector and employment indicators (paragraph 236): - Private sector job creation averaged 8% since 2008. - Unemployment rate fell from 19.4 percent in 2005 to 6.9 percent in 2011 (ECOM2, Congolese household survey, CNSEE, 2011). This rate is calculated according to ILO concepts and methods, but broader definitions indicate higher unemployment (footnote). - Unemployment rate for young people aged 15–29 was 12% in 2011, twice the national average (paragraph 236). - Considering a broader definition of unemployment that accounts for under-employment, analyses show the unemployment rate could even reach 40% for young people between the ages of 15 and 29 (footnote). - Social sector weaknesses persist, particularly in health, education, social protection, water, and sanitation (paragraph 236). ### Results-Based Management in Development (RBM-D) and pro-development culture - The government has adopted a culture of “Results-Based Management in Development” (RBM-D) making the DSCERP the reference document for interventions during 2012-2016 (paragraph 239). - RBM-D design elements include (paragraph 239): - Clearly identified and broadly shared objectives. - Well-defined and well-distributed missions and responsibilities. - “Missionaries/actors” endowed with resources (“budgets based on program objectives”). - Accountability in terms of performance (“Performance Contract”). - An institutional mechanism empowered to execute and to act as a “policeman” for program follow-up and evaluation. - The government seeks to promote a new pro-development culture and leadership modeled on countries that transitioned to emergence, emphasizing: - “Clear-sightedness” for targeting, planning, and adapting to change. - “Diligence” to carry out actions resolutely and sustainedly. - “Perseverance” to surmount obstacles and recover from setbacks (paragraphs 238–239). - The culture of “due diligence” has been adopted at the highest levels of the administration (Office of the President, cluster coordination) and is intended to spread top-down to all decision-makers, employees, private sector operators, and the public (paragraph 239). ### Institutional mechanism for preparing the 2012-2016 DSCERP - The institutional mechanism was inherited and strengthened from PRSP-1 preparation and was formally established under Order No. 4838/MEPATI-CAB of June 30, 2010, creating a Steering Committee, a Technical Secretariat, and Technical Units (paragraph 242). - Core bodies and roles (paragraphs 243–247): - Steering Committee (SC): Presided by the Minister of the Economy, Planning, Land Reform, and Integration (MEPATI) as Coordinator for the “economic cluster”; includes representatives from the legislature, private sector, and civil society; provided guidelines and reviewed drafts for government, parliamentary groups, partners, and the public. - Permanent Technical Secretariat (STP): Coordinated by the General Director for Planning and Development (DGPD/MEPATI); coordinated technical work of Thematic Discussion and Editorial Groups and Technical Programming Units; supervised preparation, validation, and dissemination of documents; assisted by a Consultative Group of Technical and Financial Partners. - Technical Support Unit: Task force to carry out components of preparing and drafting the DSCERP and related books. - GTDR/SGTDR (Thematic Discussion and Editorial Groups and Subgroups): Organized by broad development themes—(i) Governance; (ii) Economy; (iii) Infrastructure; (iv) Social Development and Inclusion; (v) Education, Training, and Scientific Research; (vi) Sustainable and Balanced Development—responsible for sectoral strategic discussions and production of sectoral reports used for the DSCERP. - Permanent Committee for Macroeconomic and Budgetary Framing Unit (CPCMB): Three sub-groups—(i) macroeconomic and budgetary framework; (ii) central MTEF; (iii) sectoral MTEF—responsible for macroeconomic simulation, preparing the macroeconomic framework and the global MTEF, and preparing PAPs and Budgets by Program Objectives (BOP) for ministries. Outputs produced the compendium of the strategy’s PAPs/MTEF for 2012-2016. - Technical support by a team of international consultants was hired for capacity building (paragraph 248). ### Process used to develop the DSCERP - Technical strengthening and studies (paragraphs 250–251): - Enhanced planning tools since adoption of the PRSP include introducing the MTEF with macroeconomic, budgetary, and sectoral components; strengthening physical and financial control of investments; and statistical follow-up of PRSP programs. - Analytical studies undertaken include: Congo Vision-2025 (forward-looking, participatory); sectoral studies on employment, business climate, diversification/industrialization clusters; Congolese Household Survey (ECOM 2) for poverty and human development trends; Demographics and Health Survey (EDS2); national MDG progress report; PRSP implementation and completion reports. - Institutional and timing steps (paragraphs 252–255): - MEPATI prepared a “Rationale” presented to the Council of Ministers and issued the order creating the preparation mechanism. - Road map: seminar launching the NDP and Forward-Looking Study in March 2011; GTDR discussions April–May 2011; GTDR reports compiled and merged by the Technical Secretariat; editing retreat in July 2011 produced a preliminary draft. - Draft completion and review: Draft 1 completed on 30 October 2011 with sectoral annexes (Book 2) and macroeconomic and budgetary framework (Book 3); seminar held October 15 to 22, 2011 to review supporting work; rereading seminar November 27-29, 2011; final product sent to government for validation (paragraphs 254–255). - The STP conducted reviews to strengthen sectoral strategies, ensure program consistency, and integrate results from major studies (ECOM, EDS, etc.) into the DSCERP (paragraph 254). - The development process emphasized participation, subsidiarity, and contributions from sectoral ministries, development partners, the private sector, and civil society (paragraph 241 and 242). *Source: Excerpt from the 2012-2016 DSCERP (National Development Plan CONGO), pages 57–61.* ### 256. As stated above, the NDP is the operational framework for the “Future Path” for the ### _cr12242 - 256. As stated above, the NDP is the operational framework for the “Future Path” for ### Strategic objective and operational framework - The NDP/DSCERP is the operational framework for the “Future Path” covering the seven-year period 2012-2016. - Principal objective of the “Future Path”: to pursue increased and shared prosperity based on industrialization of the economy and modernization of Congolese society. - The vision is broken down into three broad strategic lines (mega-programs) that target growth, competitiveness, and social inclusion. ### The three mega-programs (core strategic lines) - Vectors of growth - Policies targeting “productive sectors” (agriculture, forests, mines and hydrocarbons, tourism, etc.) to stimulate transformation and densification of the economic fabric. - Strategic sub-objective: increase and maintain the pace of growth and job creation. - Factors of production - Development strategies for infrastructure, human resources, financial resources, and business climate. - These factors determine costs of production and the overall competitiveness of the economy, enabling development of the vectors of growth. - Training and inclusion strategies (social sectors) - Interventions in education, health, gender, social protection, etc., to improve productivity, access to factors of production, and income distribution. - Described as a two-way “conveyor belt” between economic growth and social development; characterized as the engine of shared prosperity. ### The five pillars of the 2012-2016 DSCERP - Pillar 1: Governance - Governance in all dimensions – political, judicial, administrative, security-related, and economic. - Principal objective: strengthen participatory and inclusive democracy and promote the rule of law and peace. - Strategies cover political/administrative organization and management, defense and security, judicial system, and economic and financial governance. - Pillar 2: Transformation of the economy - Objective: intensify economic activities to accelerate growth and promote job creation. - Incorporates diversification strategies targeting vectors of production and cross-cutting “soft” competitiveness strategies: macroeconomic policies, structural reforms, and commercial strategies for market opening. - Pillar 3: Economic and social infrastructures - The “hard core” of modernization and competitiveness: combines (soft) reform programs and (hard) investment programs. - Focus areas include transportation, energy, water, and telecommunications to reduce transaction costs and increase competitiveness. - Pillar 4: Social development - Strengthen and develop human resources; improve ability of groups (including vulnerable groups) to contribute to and benefit from growth. - Programs in education, health, social protection, and targeting vulnerable groups (gender, children, youth, the elderly). - Pillar 5: Balanced and sustainable development - Sub-group 1: Balanced territorial development - Objective: better balance development across departments and between urban and rural areas to ensure inclusion. - Programs: decentralization, territorial development, accelerated municipal development, local development, rural and urban development, and policies targeting pockets of marginalization and poverty. - Sub-group 2: Medium- and long-term sustainability - Objective: preserve natural riches while developing them sustainably for long-term well-being. - Programs: environmental protection, sanitation, and combating global warming. ### Link to Africa’s emergence and rationale for integrated strategies - Cites a World Bank study identifying a chain of “vicious and interconnected circles”: poor governance and conflicts, weak human capital, limited competitiveness and diversification, and indebtedness. - Africa’s emergence requires integrated, coordinated, and simultaneous actions on multiple fronts to convert “vicious circles” into “virtuous circles.” - Four priority groups of problems to address (as summarized in the study): - (i) improving management of public affairs (good governance) and preventing conflicts; - (ii) investing in human capital (education, health, etc.); - (iii) improving competitiveness and diversification of economies; - (iv) reducing indebtedness and dependence on aid, and strengthening partnerships. - Some exogenous constraints (e.g., unfair terms of trade and subsidized imports) are noted as causes of marginalization that require supranational, continental, or regional responses. ### Implications for policy alignment and sequencing - Interdependencies among pillars mean integrated strategies and coordinated and simultaneous actions are required; no pillar can be neglected without impeding progress in others. - Example interdependencies: - Weak social sectors (education) hinder democratization and diversification due to limited human capital. - Poor governance leads to poor-quality policies, ineffective implementation, and high costs that constrain financing for other pillars. - Policy approach: simultaneous actions with optimal synchronization of programs and effective “sequencing” of actions; budgetary programming around the MTEF is decisive. ### Structure of the 2012-2016 DSCERP document - Document organized in three large sections: - Section 1: “How is Congo doing?” - Reports status of broad areas: governance (Chapter 2), growth and employment (Chapter 3), infrastructure (Chapter 4), social development, poverty, and the MDGs (Chapter 5). - Each area includes brief historical overview, recent performance since PRSP1, and principal obstacles to be removed. - Section 2: Vision, strategic targets, and action programs - Central question: Where does Congo want to be in 2016? What needs to be done over the next five years? - Chapter 6: long-term vision as expressed in the “Future Path” and bridge to medium-term objectives. - Chapters 7–15: strategies, major programs, and key actions across pillars: - Chapter 7: governance strategies and programs. - Chapter 8: “vectors” of growth; proposes sectors (“clusters”) for industrialization and sustained growth; clusters include: - (i) mines and hydrocarbons; - (ii) agriculture and the agroindustry chain; - (iii) forests and timber industries; - (iv) construction and building materials; - (v) tourism and hotels; - (vi) financial services. - Chapters 9–13: principal factors of growth and social inclusion: - Chapter 9: private sector strengthening, competitiveness, transaction costs, market expansion. - Chapter 10: employment — supply (production sectors), demand (basic and skills training), labor market (wage and benefit policies, selective immigration strategies). - Chapter 11: infrastructure — transportation, energy, water, telecommunications (structural reforms and investments). - Chapter 12: education sector strategies, programs, projects. - Chapter 13: health sector, HIV/AIDS, social protection, gender and vulnerable groups. - Chapter 14: balanced development — decentralization, municipal/local/territorial development, environmental protection, combating global warming. - Section 3: Implementation, costs, and financing - Chapter 15: “macroeconomic and budgetary framework” — macroeconomic prospects consistent with the strategy, Global MTEF, and government financing requirements. - Chapter 16: financial strategies for DSCERP — government budget and private resources; proposes innovations such as public-private partnerships for financing economic infrastructures. *Source: _cr12242 - 256. As stated above, the NDP is the operational framework for the “Future Path” for (National Development Plan CONGO DSCERP 2012-2016).* ### 283. Chapter 17 deals with the institutional and technical organization for implementing ### Chapter 17 — Institutional and Technical Organization for Implementing Actions, Monitoring, and Evaluating Effects ### Institutional arrangements and monitoring tools - Chapter 17 addresses institutional and technical organization for implementing actions, monitoring achievements, and evaluating effects. - Emphasis on strengthening capacities of administrative structures concerned, particularly: - General Large-Scale Projects Commission (DGGT) - Coordinating structures within the plan - Sectoral ministries - Focus on tools needed to monitor program performance and implications for capacity building of these bodies. ### Statistical mechanism and evaluation system - Second section covers the statistical mechanism and system for following up and evaluating the strategy’s programs. - Implications highlighted for strengthening capacities of: - Statistics Directorate - Planning Directorate ### Illustrations and data sources - Document contains illustrations intended to raise stakeholder awareness of policy areas and the relevance of government strategies, using the experience of “high-performance” or “emerging” countries. - Data for figures and tables are official Congolese statistics or based on World Bank data (World Bank databank, 2011). ### Attached operational books (organized by “nodes”) - Book 2 (PAP): summarizes programs and actions of ministries and institutions, and program budgets for these institutions. - Book 3: complete macroeconomic and budgetary framework document explaining in detail how the macro framework and comprehensive MTEF were determined and indicating how strategic objectives — growth, employment, poverty reduction, and social development — could be achieved if the strategy is well-executed. - Book 4: document on organizing the follow-up of execution and evaluating DSCERP program performance. ### Governance — overarching role - Governance (political, administrative, judicial, economic and financial, security and national defense) is framed as the foundation of economic and social development and a contributor to poverty reduction, sustainable human development, and the emergence of nations. - Poor governance is identified as a principal cause of persistence or growth of extreme poverty, inequities, exclusion, and socioeconomic marginalization, and as a source of conflicts. - In economic and administrative management, poor governance leads to governmental dysfunction, poor allocation and misuse of public funds, deterioration in quality of public services, ineffective government interventions, macroeconomic slippages (weak growth, extreme indebtedness, or inflation), and instability. ### Political governance — objectives, achievements, and challenges - Objective: emergence of a modern, inclusive, and participatory democracy guaranteeing institutional stability, rule of law, liberty, and peace. - Good practices defined by representativeness, credible electoral system, distribution and balance of powers, and respect for laws, rights, and liberties. - Historic note: Congo gained national sovereignty on August 15, 1960; restored multi-party system and pluralist democracy after periods of instability. - Important achievements in recent years include: - Resumption of the democratic process and acceleration of establishment of constitutional institutions - Further development of the democratic and decentralization process - Effective financing of political parties from the government’s budget - Establishment of a program to promote and protect indigenous populations - Perception indicators remain low; country is still in the bottom quintile for perception of the rule of law and has seen slight deterioration in combating corruption. - International governance indicators: notable progress in “political stability” between 2000 and 2010, with rating increasing from 10 to 35 out of 100 (World Bank classification); sub-Saharan African average remains higher than Congo’s. - Recent elections cited: legislative in 2007, local in 2008, presidential in 2009, senatorial in 2011; consultations organized prior to elections in December 2011 in Ewo (West Cuvette). - Main actions recommended to consolidate social peace: - Improve social and inclusion policies through transparency, impartiality, accountability, and combating public sector corruption and political practice issues (financing of political parties, electoral campaigns, etc.) - Strengthen gender policies to improve political and administrative representation of women ### Administrative governance — history, achievements, and challenges - Historic overview: governance concerns date to proclamation of the republic on November 28, 1958 and independence on August 15, 1960; institutional instability noted (18 constitutions from independence to 2002) leading to “construction, destruction, and reconstruction.” - Recent achievements after 1990s conflicts: - Increased personnel and resources allocated to civil service - Reorganization of government in coordinating hubs to improve sectoral coherence - Establishment of agencies to combat corruption - Increased staff capabilities in local governments - Main challenges to address: - Anachronistic laws and legislation for government personnel and social protection system - Ill-suited missions, structures, positions, staff, and resources - Difficulties controlling civil servants and payroll - Absence of an attractive compensation policy to encourage effectiveness - Aging government personnel and an obsolescent system for tracking civil service careers ### Judicial governance — legal framework, achievements, and challenges - Historic overview: dual justice systems (custom and French law) since independence; legislature enacted numerous laws and codes, including but not limited to: - Law No. 18-60 of January 16, 1960 on protecting youth - Law No. 35-61 of June 20, 1961 on the nationality code - Law No. 1-63 of January 13, 1963 on the criminal procedure code - Law No. 5/63 of January 13, 1963 on looting and destruction - Ordinance No. 25/70 of August 1, 1970 on conditions for convicted foreigners - Highway code (Order No. 4223 TP-AP applying Decree of October 4, 1932) - Law No. 45-75 of March 15, 1975 instituting the labor code - Law No. 51-83 of April 21, 1983 on civil, commercial, administrative, and financial procedure - Law No. 073/84 of October 17, 1984 on the family code - Law No. 022-92 of August 20, 1992 on organization of the judicial branch - Law No. 19-99 of August 15, 1999 amending Law No. 022-92 - Law No. 025-92 of August 20, 1992 and Law No. 30-94 of October 18, 1994 on the Supreme Court - Law No. 17-99 of April 15, 1999 amending Law No. 025-92 - Law No. 026-92 of August 20, 1992 on the legal profession - Law No. O17/89 of September 29, 1989 on the notary’s office - Law No. 027/92 of August 20, 1992 on the bailiff’s profession - Law No. 023-92 of August 20, 1992 on judiciary regulations; Law No. 15-99 of April 15, 1999 amending it - Law No. 4-2010 of June 14, 2010 on the protection of children - Law No. 5-2011 of February 25, 2011 on the promotion and protection of indigenous populations - Definition: judicial governance means laws clearly defined and uniformly applied by an objective and independent judiciary; Constitution of January 20, 2002 assigns judicial power to the Supreme Court, the Court of Accounts and Budgetary Oversight, the Court of Appeals, and other national jurisdictions. - Achievements: - Law No. 19-99 of April 15, 1999 establishes justice “rendered in the name of the Congolese people” by a single court system. - Judicial map includes 103 jurisdictions distributed as follows: - Supreme Court (1) - Court of Accounts and Budgetary Oversight (1) - Court of Appeals (5) - (Brazzaville, Pointe-Noire, Dolisie, Owando, and Ouesso) - District Courts (17) — sixteen (16) operational (Brazzaville; Pointe-Noire; Dolisie, Sibiti; Madingou; Mouyondzi; Djambala; Oyo, Owando, Ouesso, Impfondo, Ewo, Mossaka, Gamboma, Mossendjo, and Kinkala) and one not operational due to lack of facilities (Kindamba) - Lower Courts (74) — six (6) led by magistrates and operational: four (4) in Brazzaville (Poto-Poto; Makélékélé-Bacongo; Mfilou; and Talangaï) and two (2) in Pointe-Noire (Tchinouka and Tié-Tié); other lower courts awaiting assignment of personnel - Labor courts (2), Brazzaville and Pointe-Noire - Commercial courts (2), Brazzaville and Pointe-Noire - Children’s courts (2), Brazzaville and Pointe-Noire - Legal and judicial reforms enacted for protection of children and promotion and protection of indigenous peoples; efforts in judicial infrastructure and equipment; integration within OHADA. - Main challenges: - Number of cases tried has barely improved despite increase in judicial personnel, limiting timely protection of private property and citizens’ rights. - Legal and judicial procedures not well publicized; absence of law or justice centers. - Prison facilities suffer shortages of infrastructure and qualified personnel; many prison administration tasks are carried out by police and gendarmes rather than trained personnel; no policy on social and professional reintegration of prisoners. - Significant weaknesses in judicial security for private operators, undermining the business climate and investment. ### Security and national defense governance — evolving mission and threats - Defense and security performed by Congolese armed forces, the gendarmerie, and national police. - Sector has experienced significant development in response to changes in the world strategic context (collapse of the socialist bloc, end of the cold war, globalization). - Defining shift from territorial defense to managing new threats: - Domestic-level threats include: - (i) the emergence of non-state armed groups - (ii) problems of rapid urbanization and governance deficits - (iii) organized crime - (iv) breakdown of the socioeconomic fabric (unemployment and poverty) - International-level threats include: - (i) international terrorism - (ii) fundamentalism and religious fanaticism - (iv) transnational crime - (v) armed conflicts in neighboring countries - (v) cybercrime - (vi) uncontrolled immigration *National Development Plan CONGO DSCERP 2012-2016 (excerpt).* ### 310. Following these sociopolitical events, the unity of the army, police, and the ### _cr12242 - 310. Following these sociopolitical events, the unity of the army, police, and the ### Security and defense: reestablishment and architecture - After the sociopolitical events, the unity of the army, police, and the gendarmerie was reestablished, enabling them to perform primary missions of securing persons and property. - Provision of law enforcement equipment and hiring of new personnel contributed to appreciable reductions in insecurity and organized crime groups. - Participation of specialized defense units in foreign peace-keeping operations helped strengthen regional and subregional cooperation in security and defense (FOMUC, MICOPAX). - Structural organization established: - Nine military defense zones and two military regions were created; - The gendarmerie is organized into seven regions; the territorial gendarmerie has an effective presence in the country’s 86 districts; the gendarmerie also includes a mobile gendarmerie corps and specialized teams (railway and air); - The national police has 12 departmental headquarters and six central police stations (Brazzaville, Pointe-Noire, Dolisie, Nkayi, Mossendjo, and Ouesso) and [text missing...]. - Mandate: This defense and security architecture is responsible for surveillance of the country and for local protection for citizens. ### Main challenges for defense and security subsectors - Continuous adaptation to new types of crime and delinquency (consistent with strategies, material and human resources); - More productive professionalization of the defense and security corps; - Involvement of defense and security forces in development work (building infrastructure, producing goods and services, training young people, etc.). ### Economic and financial governance: historic overview (1960s–2000s) - 1960s: First decade after sovereignty saw a short three-year free-market-oriented strategy and launch of large projects; latter half saw government interventionism and creation of nearly fifty state-owned enterprises and offices. - 1970s: Marked by ideology of national “ownership” and nationalizations; 1973 consecrated petroleum as primary export while agricultural exports declined; withdrawal of Israeli developers and industrialists affected forestry/processing. - Mid-1970s: First major post-independence crisis due to difficulties in bringing in budgetary revenues for 1975 and 1976 (primarily petroleum-based) and stagnant management of state-owned enterprises; government became dominant economic actor via nationalizations and state-created companies. - 1980s: Early 1980s adopted two interim plans (1980, 1981) preparing five-year plan (1982-1986); Conference of State-Owned Enterprises in 1980; late 1980s saw collapse of petroleum prices and U.S. dollar, worsening external imbalances, increased debt service, cumulative foreign payment arrears — leading to structural adjustment plans and restructuring of state-owned enterprises. - 1990s: Market-oriented management restored; devaluation of the CFA franc in January 1994; public debt service became unsustainable; renegotiation of petroleum contracts in 1995 and development of new oil fields (notably in Nkossa and Kitina) in the second half of the decade improved government revenues before, during, and after 1997 sociopolitical events. - 2000s: Initially relative stagnation in per barrel oil prices, then sustained recovery continuing up to 2010; petroleum operations allowed substantial resources for infrastructure and diversification. ### Key macroeconomic indicators (select figures from TABLE 1) - GDP, annual growth as a %: Ave. 1960-1969: 4.0; Ave. 1970-1979: 5.5; Ave. 1980-1989: 6.8; Ave. 1990-1999: 0.8; Ave. 2000-2005: 4.7; 2006: 6.1; 2007: -1.6; 2008: 5.6; 2009: 7.6; 2010: 8.8 - Non-petroleum GDP, annual growth as a %: 7.4 6.0 6.6 5.3 3.9 6.4 - Petroleum GDP, annual growth as a %: -0.6 6.8 - 17.2 7.4 16.1 13.7 - GDP per capita, annual growth as a %: 1.2 2.3 3.6 -1.4 2.3 4.0 -3.4 3.7 5.6 6.0 - Inflation: 1.0 -3.5 1.4 6.5 2.7 7.3 5.0 - Agriculture (% of GDP): 20.1 15.6 10.0 10.5 8.6 8.7 9.5 9.5 9.4 9.2 - Forestry and logging: 2.4 2.5 2.5 2.4 1.3 1.2 - Current account (% of GDP): -14.4 -13.1 -19.4 10.9 8.4 - 15.9 4.8 - 28.2 - 14.2 - Trade balance (% of GDP): -31.7 -17.7 -0.5 2.9 25.4 18.5 23.2 26.3 21.0 31.8 - Budget balance, including grant (% of GDP): 1.8 -7.0 2.0 17.0 11.0 26.9 5.8 18.8 - Debt at concessional rate (% of GDP): 26.1 29.8 78.9 55.6 39.9 35.7 29.5 34.6 - Debt at non-concessional rate (% of GDP): 29.3 100.4 144.0 89.7 44.9 32.0 20.8 18.0 ### Lessons on governance and leadership (Box 2 summary) - Since 1950, 13 developing countries experienced average annual growth of 7 percent or more over 25 years or more; they shared five characteristics: (i) integration in the global economy; (ii) maintained macroeconomic stability; (iii) accumulated abundant financial resources and high savings and investment rates; (iv) allowed domestic market allocation of resources; (v) had committed, credible, and capable governments. - Growth requires political foundations: committed, credible, and capable governments; long-term commitment; clear communication of vision and strategy; inclusive promises to share fruits of growth. - Institutional practices cited: Singapore’s multi-decade pursuit of growth; Botswana’s inclusive sharing of natural resource rents; independent institutions like Australia’s Productivity Commission; Ireland’s Social Partnership. - Political pragmatism: willingness to try, fail, and learn (e.g., Singapore’s shift away from import substitution; China’s “crossing the river by jumping on stones” approach). ### Recent economic management: improvements and public finance reforms - Two aspects of economic governance highlighted: - How the State manages itself (management of government and the public sector); - How the State manages the economy and the private sector. - Areas to appreciate "How the State manages itself": - (i) management of the public finances; - (ii) management of human resources, government investments and government property; - (iii) macroeconomic management and strategic planning. - Public finance management institutions and roles: - Ex ante internal administrative control: Directorate-General of Budgetary Control (DGCB) and Directorate-General of Budget (DGB); - Ex post internal control: Inspectorate-General of Finance (IGF); - Office of Audit and Budgetary Discipline and Economic and Finance Committees of the National Assembly and the Senate oversee internal controls; - Inspectorate-General of Government supervises all controls in the executive branch. - Revenue collection: Directorate-General of the Treasury (DGT); revenues assessed by Directorate-General of Taxation and State Property (DGI) and Directorate-General of Customs and Indirect Duties (DGDDI) recovered by receiving officer and deposited daily in the treasury. - Identified weaknesses in internal control: - Lack of DGCB representation in the Government Procurement Regulatory Authority; - Lack of a computerized link between government agents' files and the file showing the balance; - Shortage of financial resources and poor quality of human resources for the IGF; - Elimination of unannounced controls and inspections reducing ex post internal control effectiveness; - Judicial and parliamentary supervision over fiscal management shows technical weaknesses, including production of administrative and management accounts in DG budget and Treasury and DGCP. - Major reforms undertaken: - Adoption of a new budgetary accounting terminology based on functional classification and consistent with International Financial Statistics methodology to align allocations with strategic priorities; - Adoption of a Government Action Plan for Fiscal Management (PAGGFP) and a plan for improved management of government investments (PAAGIP) to reinforce transparency, efficiency and performance, improve project preparation, cost estimation, selection, and execution of capital budget; and to reinforce capacities of DEP directorates, improve budget preparation, and rationalize expenditure and payment circuits; - Promulgation of a new government procurement code in May 2009 establishing a regulatory and institutional framework consistent with best international practices to ensure competition and transparency. - Fiscal management innovations introduced: - Introduction of SYSTAF and the Single Identification Number (Numéro d'Identification Unique, NIU) enabling a single taxpayer file and expansion of the tax base; - Introduction of the ASYCUDA software in the customs administration for better control of the tax base and customs revenues; - Improved transparency and governance in the oil sector via quarterly certification of oil revenues and their transfer to the treasury within 45 days following the lifting of oil shipments; data on oil production and revenues published on the Ministry of Finance, Budget and the Public Portfolio website; - Adoption of the master plan for computerizing the Finance Ministry, specifically revenue collecting agencies (régies financières) to exert greater control over the tax base and government revenues. - Objective of reforms: reinforce government transparency, efficiency and performance and provide a solid foundation for fundamental public finance management reforms. *Source: STP/DSCERP, World Bank Data, World Development Indicators, and National Authorities (as presented in the document).* ### 328. The government has created a National Public Debt Committee (CNDP) in order to ### The government has created a National Public Debt Committee (CNDP) in order to ### Public debt management and CNDP - The authorities promulgated decree no. 2008-56 of March 31, 2008, instituting a National Public Debt Committee (CNDP) to monitor the debt and report on public debt management. - CNDP tasks and institutional context: - Monitor the country's indebtedness more closely to avoid a return to over-indebtedness and problems with speculators ("vulture funds"). - Prepare a national public debt strategy consistent with the country's development objectives and its financial capacity. - The CNDP creation is consistent with CEMAC regulation (12/07-UEAC-CM-15) formalizing the benchmark framework for government borrowing policy and public debt management in member states. - The national public debt strategy is annexed to the budget law to strengthen parliamentary control over borrowing mechanisms and conditions. ### Debt reduction, debt ratios, and international comparisons - Reforms, HIPC completion point, and pay-down of domestic debt contributed to significant debt relief and improved medium-term debt sustainability. - Key statistics (2004–2010 period): - Debt stock declined from 198.7 percent to 23.8 percent of GDP. - Debt service dropped from 16.0 percent to 3.4 percent of exports. - Comparative table: selected country debt indicators for 2004–2010 are presented in the source (excerpt includes figures for petroleum exporting countries, Excl. Nigeria, Angola, Cameroon, Congo, Rep. of, Gabon, Equatorial Guinea, Nigeria, Chad). (Source data: IMF Africa Department database (September 16, 2011) and World Economic Outlook (September 16, 2011)) ### Government investment: allocation, quality, and reforms - Findings on investment: - Congo devotes considerable resources to public investment; public investment rate is considerably higher than the average for sub-Saharan African countries. - Investment effectiveness and quality are well below the best performers in the region; governance indicators place Congo near the bottom on government effectiveness. - Identified causes of low investment quality: - Shortcomings in project planning (identification, evaluation, validation). - Budgetary choices that fail to align resources with development projects. - Weaknesses in investment execution (financial and physical) and monitoring. - Key reforms and actions taken: - Adoption of decree no. 2009-230 of July 30, 2009, clarifying and simplifying the expenditure circuit and roles: - Delegates to ministries responsibility for committing and verifying expenditures. - Establishes budget control units within ministries to supervise and approve commitments and verifications. - Eliminates sign-off by the budget controller after the payment order (ordonnancement) is issued. - Leaves the Directorate-General of Budget with only the task of issuing the payment order. - Adoption in 2009 of a new system for evaluating and selecting investment projects to ensure budget-financed projects are consistent with PRSP objectives and meet technical and financial feasibility criteria. - Implementation challenges: - Capacity problems delay or limit reform benefits; gaps remain that can cause inefficiency. - Ministries and institutions have difficulty conducting project studies and linking projects to PRSP objectives. - Medium-term fiscal planning tools: - Introduction of the Medium Term Expenditure Framework (MTEF), Priority Action Programs (PAPs), and objective-based program budgets intended to rationalize implementation and better align human-resource recruitment with sectoral strategy priorities. ### Management of government property - Congo lacks a system of accounting for public assets. - Two ministries responsible for government property (domaine public) and state assets (patrimoine de l’Etat) have been created; they are responsible for inventory, accounting and management of State assets but are not yet fully operational. - Authorities are working to establish a sound basis of information on State assets and their status. ### Strategic planning, PRSP, and execution capacity - Progress made: - Adoption and execution of the first-generation Poverty Reduction Strategy Paper (PRSP) in March 2008. - Implementation of the MTEF in 2009 to align budget with the PRSP. - Reorganization of the Investment Projects Evaluation Center (CEPI). - Reinforcement of technical capacities for monitoring and evaluating PRSP programs, including physical and financial execution of investments. - Introduction of results-based management (RBM). - PRSP objectives: - Improve the macroeconomic framework in a sustainable manner and strengthen the social sector to advance toward the Millennium Development Goals (MDG). - PRSP was a prerequisite for achieving the completion point under the HIPC Initiative. - Execution and monitoring weaknesses: - Lack of execution and monitoring capacity (organizational, execution, resource allocation) undermined strategy effectiveness. - Measures to strengthen execution: - Establishment of the DGGT (General Commission for Large-Scale Projects). - The DGGT executed nearly 80 percent of all government investment over the period 2008-2010. - Government reassessing DGGT intervention criteria and seeking better communication between assistant project managers and contracting authorities (sectoral ministries). ### Box: General Commission for Large-Scale Projects (DGGT) - Governance and mandate: - Created in 2002; reorganized and governed by decree no. 2009-158 of May 20, 2009. - Government focal point for carrying out large-scale projects; reports to the President of the Republic. - Responsible for investment projects of the amount of 250 million or more. - DGGT role as administrative and technical agency (owner agent / maître d’ouvrage délégué): - Finalizing procurement programs with the project owner. - Organizing and calling for bids for government procurement or public-service concessions. - Reviewing and examining bids. - Drafting, negotiating and managing contracts. - Assessing technical and financial specifications and execution statements. - Organizing and conducting acceptance of works, goods or services and overseeing performance of public-service concessionaires. - DGGT functions as a horizontal/cross-sector administration mobilizing energies across ministries; projects financed from the capital budgets of various ministries and institutions. - Large-scale projects handled by the DGGT (selected examples): - Construction of airports at Dolisie, Owando, Pointe-Noire and Impfondo. - Construction of the second runway and air terminal at the Brazzaville Airport. - Completion of work on the Ngoulonkila-Lékana section of highway RP 26, Ngo-Djambala-Lékana. - Construction and paving of about 46 km of the Bouansa - Mouyondzi highway. - Construction of 84 km of railway 1998-2009. - Construction 2004-2009: Moukondo-Nkombo Highway; 2nd exit North Brazzaville; bridge over the Tsiémé and road; bus station at Dolisie. - Construction of the Port Autonome de Pointe-Noire. - Construction of the Imboulou dam; Impfondo power station; M'Pila power station. - Water supply at Likouala; rehabilitation of the Djoué plant. - Construction of the port at Lékéty; dredging at Mossaka and de-silting of the main port of Brazzaville and secondary ports. - Rehabilitation of high-voltage transformer stations at Tsélampo, Mongo Kamba, N'goyo and the Djoué dam. - Construction and outfitting of the national radio and television center; construction of the radio/TV station at Oyo. - Rehabilitation of stadiums: Franco Anselmi and M'voumvou at Pointe-Noire, Massamba-Debat at Brazzaville and Pont at Dolisie. - Construction of the municipal stadium at Owando and the Oyo gymnasium. - Construction of the Oyo general hospital and the Loandjili hospital. - Construction of prefecture or sub-prefecture headquarters in the départements of Kouilou, Niari, Likouala, Oyo, Dolisie, Impfondo, Cuvette-ouest, Owando. ### Investment promotion and private sector engagement - Creation of the National Investment Commission (CNI) under the Ministry for Economy and Planning to: - Track private investment plans and projects. - Compile an inventory of investment intentions and facilitate investor introduction into the Congolese economy. - Improve programming of government actions to support private investment so public investment complements private investment for economic transformation. - Government views on foreign investment: - Foreign investments transmit new technologies, inject significant financial resources, and open international markets for Congolese products. ### Macroeconomic policies and performance - Structural reforms and IMF-supported programs: - Government implemented macroeconomic program supported by the IMF under the Poverty Reduction and Growth Facility (PRGF) in the context of the HIPC initiative; reached the completion point in January 2010. - Continued support under the Extended Credit Facility (ECF). - Economic growth and sectoral performance: - Economic growth averaged around 7.0 percent between 2008 and 2010, despite volatility in the oil sector. - Non-oil sector average growth of around 5.2 percent over the same period. - Public finance and revenue developments: - Non-oil revenues rose from 22.7 percent of GDP in 2008 to 25.5 percent in 2010. - Spending increases restrained in GDP terms due to control over operating expenses despite higher capital outlays for PRSP implementation. - Monetary and inflation outcomes: - Prudent monetary policy combined with pro-growth fiscal policy; inflation has been kept under control (... percent) over this period, despite higher prices for food and oil products. ### Structural reforms and business climate improvements - Government measures to liberalize and regulate markets and improve business climate: - Measures to reduce transaction costs and discourage corruption, quasi-fiscal levies and bureaucratic red tape. - Customs and trade facilitation actions: - Institution of the "one-stop maritime window" (GUMAR) for integrated handling of commercial operations at the Pointe-Noire customs station; streamlining and simplifying customs clearance procedures. - Strict management of electronic manifests and introduction of a scanning device for container inspection and risk management. - Trade and exemption reforms: - Elimination of exceptional exemptions; computerization of exemption granting and management procedures. - Review of customs privileges in government contracts, conventions and other texts. - Application of CEMAC Act 298 concerning establishment agreements in the oil industry, including subcontractors. *Source: _cr12242 - 328. The government has created a National Public Debt Committee (CNDP) in order to (excerpt).* ### 352. In the mining and oil sector, the government has devoted considerable effort to ### _cr12242 - 352. In the mining and oil sector, the government has devoted considerable effort to ### Mining and oil sector: transparency and institutions - Membership in the Extractive Industries Transparency Initiative (EITI) in 2004. - Establishment of national structures, certification of oil revenues, and audits of oil company accounts (oil cost audits). - Action plan adopted for marketing Congolese oil "in line with international standards". - Reforms include application of a transfer price for crude oil to gradually balance CORAF's accounts while keeping the pump price accessible to Congolese consumers. - Share of oil revenues in total government revenues was consistently above 80 percent between 2008 and 2010. ### Performance of national oil companies - Société Nationale du Pétrole du Congo (SNPC): - Reforms instituted analytical accounting, improving its earnings results. - CORAF: - Program of reforms and upgrades to enhance capacities and performance. - Accounts cleaned up; recent years show clear improvement in CORAF's earnings and in coverage of domestic market needs. - Resulting improvement in government mobilization of oil revenues. ### Financial sector reforms - Major reforms to clean up credit institutions and insurance companies; improved operating conditions for micro-finance institutions. - Banking sector liberalization spurred entry of new credit institutions and diversification of banking activities. - Specific measures: - Elimination of the ceiling on lending rates. - Measures to make lending conditions more transparent, including publication of the total cost of loan offers (including fees and commissions). - Expansion of banking service use by paying salaries and pensions via direct deposit and eliminating account charges. ### Insurance and reinsurance market - Plan defined to reform the insurance and reinsurance market. - Public operator Assurances et Réassurances du Congo (ARC) restructured in accordance with the code of the Inter-African Conference on the Insurance Market (CIMA) and the rules of the Regional Reinsurance Company (Compagnie Commune de Réassurance des Etats membres de la CIMA, CICA-RE). - Expected outcomes: improved government intervention, improved quality of economic and social services (transport, water, electricity etc.), and an improved business climate. ### Management of state-owned enterprises - Creation of National Management Center (CENAGES) by decree no. 49/78 of December 18, 1978. - Creation of the National Audit Office (Commissariat National aux Comptes, CNC) by law no. 13/81 of March 14, 1984 (creating the Charter of State-Owned Enterprises). - Mandates: - CENAGES: promote modern management techniques in state-owned enterprises, semipublic enterprises, and public organizations and establishments. - CNC: review and audit operations, accounts and training programs of state-owned enterprises in internal control, accounting control and organization. - Noted problem: "these two agencies have performed poorly in carrying out their missions" and "will have to be thoroughly overhauled" to be effective in the new free-market context. ### Accounting profession and private-sector financial reporting - Private-sector accounting governed by OHADA provisions; commercial code harmonized with the OHADA treaty. - Powers of the OHADA National Commission and commercial courts have been reinforced. - Identified obstacles: - Absence of an officially recognized college of accountants. - Ineffective organization of the Association of Professional Accountants (APC). - Required actions: - Establish a College of Accountants. - Improve initial and ongoing training for accounting professionals. - Raise awareness among private-sector operators of the need to prepare accounting and financial statements. - Additional need: rehabilitation of a government agency to certify accounts for taxation, banking, legal purposes. ### Infrastructure services and private sector support programs - Business climate remains unattractive; difficult to start up, grow a business, or invest despite economic opportunities. - Government undertook major structural reforms and investments in essential infrastructure and services, backed by development partners: - World Bank: Economic Diversification Support Project (EDSP) — component to foster public-private dialogue and reform the investment climate. - African Development Bank: Institutional Support Project for Improvement of the Business Climate and Economic Diversification of Congo (PACADEC). - Institutional progress: - Creation in 2010 of a high-level council for public-private dialogue (HCPP); the council meets once a year and reports to the President of the Republic. - Transport sector: - Assistance from PADE project component to reform CFCO (Congo-Ocean Railway) to improve transport infrastructure supply and reduce access costs. - Infrastructure investments cited: - Construction of the Imboulou hydroelectric station. - Pointe-Noire gas fired power station. - Pointe-Noire-Brazzaville highway (Pointe-Noire-Dolisie section completed). - Various other projects to improve the business climate. ### Combating corruption and financial crime - Creation of: - National Commission to Combat Corruption, Fraud and Misappropriation (CNLCCF). - Anticorruption Observatory. - National Financial Investigation Agency. - Roles: - Commission: formulate, coordinate and implement the national anticorruption strategy. - Observatory: oversee and assess the strategy's implementation. - Agency: investigate financial crime. - Legal framework: - Anticorruption law adopted in July 2009. - Action plan adopted in August 2009 providing measures to curb corruption risks in five most exposed sectors: oil production and marketing, forestry, fiscal management, justice and police, and the social sectors. ### Main challenges and government priorities - Imperative to improve governance in all its forms, particularly economic management, to modernize Congolese society and transform the economy as envisioned in “Le Chemin d’Avenir”. - Government intends to redouble efforts and will step up attempts to: - (i) Improve delivery of public services essential to build infrastructure supporting economic activity. - (ii) Modernize management of state-owned enterprises and public administration, delegate certain public services to private initiative while reinforcing accountability in public services. - (iii) Enhance efficiency and effectiveness of government agents and interventions through better human resource management, improved strategic planning and budgeting, and stricter execution and monitoring of activities. - (iv) Improve the business climate and boost competitiveness through liberalization and effective regulation of factor markets as well as goods and services markets, and consolidate achievements of public-private dialogue. - Note: "The key strategies and programs in the area of economic governance are described in chapters 7 to 9 of this paper." ### Growth, employment and structural context — key statistics and historic overview - Long-term averages and levels: - Average annual growth rates of around 4.0 percent (1960-2011). - Population growth at around 2.6 percent each year. - Real per capita GDP averaged annual growth of 1.4 percent. - Real per capita GDP rose from US$619.20 in 1960 (in constant dollars of 2000) to US$715.10 in 2011. - This performance places Congo slightly above the sub-Saharan Africa average of 1 percent annual growth in per capita GDP over the period 1960-2010. - Phases of structural change: - 1960-1974: dynamism from forestry and potassium mining plus agriculture; annual growth rate around 5.5 percent. - 1975-1984: oil production intensified; average annual growth rates of around 10 percent. - 1985-1999: period of "Dutch disease", appreciation of the real exchange rate, loss of competitiveness of agriculture and manufacturing; economic and political instability; structural indebtedness and crowding out of productive government investment. - Since 2000: consolidation of peace and economic reforms; return to favorable international oil market and expansion of local oil production; courageous structural reforms to liberalize the economy and restore competitiveness. - Post-2000 outcomes: - Average annual growth rate of around 5.0 percent (since 2000), which is "24 times higher than the average for the period 1985-1999". - Non-oil sector average annual rate of 7.0 percent, led by forestry (before the 2008 crisis) and telecommunications. - Government strategy: - Recognizes oil will remain the primary source for financing the state budget for some years; mining (iron in particular) to be progressively added. - Acknowledges resource price volatility and exhaustion risks. - Concern about limited job creation in mineral sector due to weak upstream and downstream linkages and risks of "Dutch disease" exacerbated by CFA franc linkage to the euro. - Determined to exploit resources prudently to finance diversification into other sectors, emphasizing industrialization and modernization of society. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 380. Moreover, Congo is endowed with an exceptionally favorable geographic location. ### _cr12242 - 380. Moreover, Congo is endowed with an exceptionally favorable geographic location. ### Agriculture: endowments and performance - Geographic advantages: - Straddling the equator, allowing production of seasonal crops throughout the year. - Orchards with a rich heritage: 21 kinds of mango, six kinds of mandarin, four kinds of orange. - Existing grafting know-how that shortens production cycles and supports export positioning for orchard products. - Historical and recent performance: - Output per head for staple food crops fell from 420 kg to 300 kg from the 1980s to the middle of the last decade. - Agriculture's share in GDP: 20 percent in the 1980s; less than 10 percent in the first decade of this century; currently stands at only 4 percent of GDP. - Food imports: around 130 million CFA francs, or 12 percent of the country's export proceeds. - Index of food production per capita at the beginning of this century was barely 60 percent of its level in the 1960s; in developing countries as a whole that index stood at 170 percent of its 1960 value. ### Production structure, yields, and investment - Farming systems: - Traditional farming system practiced on 81 percent of cultivated lands; characterized by low productivity. - Two smaller but more productive systems: "periurban" agriculture and large-scale public or private plantations. - Farm size and crop yields: - Typical farm size: 0.5 to 1.5 ha. - Maize yield: 690 kg/hectare, compared to more than 3 tons per hectare for developing countries as a whole and 1.2 tons for sub-Saharan Africa. - Cassava yield: 6.6 tons/hectare, below the developing-country average (more than 10 tons/hectare in the past decade). - Low yields attributed to rudimentary production techniques and very scarce use of fertilizer. - Government investment in agriculture: - Over 2008-2010, government investment in the sector represented only 5.5 percent of average annual capital spending. - NEPAD/Maputo benchmark: allocate at least 10 percent of the budget to achieve an agricultural growth rate of 6 percent. ### Main constraints to agricultural revival - Small-scale production and low factor productivity: - "Peasant agriculture" accounts for 80 percent of farm output and is associated with weak productivity and competitiveness. - Contributing factors: (i) human capital shortcomings; (ii) absence of effective mechanisms (farm banks, microfinance) for financing agricultural investment and activity; (iii) weakness of farming technology and production methods. - Land tenure and market adaptation: - Traditional communal land ownership organized by cultural traditions across départements. - Difficulties asserting and securing land title and developing a real land market accessible to citizens and foreign investors and farmers. - Foreign involvement can contribute know-how, financial resources, innovations, and export market access. - Market size and trade policy: - Small domestic population/market perceived as a constraint, but evidence suggests the constraint has been overestimated. - Staple food production has not kept pace with population growth, increasing dependence on imports. - Cash crops in the region are essentially for export; globalization reduces the domestic market size constraint. - Growth impeded more by weaknesses in production capacity, trade policies, and lack of competitiveness than by market size. - Policy and institutional history: - 1960-1992: policy focused on large-scale, government-run farms and ranches. - Structural adjustment era: shift toward private operations, but reforms were scattered and haphazard, with negligible impact on transforming the sector. - Conflicts at the beginning and end of the 1990s further depressed agricultural activity. ### Livestock - Natural advantages and history: - Vast expanses of pasture land, suitable for sheep and goat raising; heavy-livestock introduced in colonial era. - Successful introduction of new cattle breeds (primarily Lagune and Ndama). - Sectoral decline and opportunities: - Traditional small-scale cattle herding was displaced by government-owned ranches occupying best pasture lands. - With failures of state-owned ranches and farms, possibility to revive private cattle raising. - Potential for small livestock and poultry as family farming pursuits; limited agro-pastoral tradition requires efforts to stimulate interest and modernize operations. - Native fauna reserves (quails, guinea fowl, antelope, aulacodes, hedgehogs) can support family-based livestock raising; production cycles are now well in hand due to innovations. - Recent growth and demand: - Livestock raising grew at an average annual rate of 2.8 percent, well below the rate for agricultural output and the overall non-oil economy. - Contribution to non-oil GDP has been declining and is well below sector potential. - Strong increase in domestic demand indicated by growth in imports per capita; regional demand is booming, especially in the DRC. - Required actions: - Strengthen capacity of the working population in the sub-sector. - Remove obstacles related to the small number of agro-pastoralists. - Improve overall competitiveness of the economy as a cross-cutting prerequisite. ### Fishing and aquaculture - Natural assets and potential: - Coastline of 170 km and a dense continental hydrographic network with two main river basins: the Congo (and its tributaries Oubangui, Sangha, Likouala-Mossaka, Alima, etc) and the Kouilou-Niari (and its tributaries Loutété, Bouenza, Loudima, Louvissi kibaka). - Estimated potential annual catch: 100,000 tons of freshwater fish and 80,000 tons of marine fish. - Current marine fishery has shrunk significantly; freshwater fishery output is barely 15,000 tons a year. - Sector contribution and constraints: - Average annual contribution to growth has been barely 1 percent during 2000-2010. - Weak contribution compared with other coastal countries, due to: - Insufficient understanding of available fishery resources and lack of control over exploitation, especially in inland waters. - Lack of support facilities for harvesters, including training in enhanced fishing techniques and outdated processing and conservation techniques. - Inadequate conservation and processing facilities. - Obsolete equipment, processing plants and boats. - Inadequate fish landing and transport facilities. - Additional pressures: oil operations in maritime waters, invasion of vegetation in water bodies, silting of the Congo River and tributaries, presence of floating logs obstructing navigation for small vessels in forested areas. - Aquaculture prospects and constraints: - River basins represent major strength for aquaculture and pisciculture. - Valuable species for potential export: missala (crustacean), malangwa, djombo, ngolo (clarias, catfish), tilapia (nilotica), Ngoki (crocodile) — Ngoki skin used in leather and footwear industry. - Market prospects positive due to sustained growth of domestic and regional markets and growth in consumption and imports of fishing products. - Aquaculture currently confined to family-operated traditional pond-based fish farming; limited by lack of appropriate inputs (fry of good stock, proper feed, fertility agents). - Almost complete lack of extension agents and means for local technical support delivery. - Planned measures: - Establish support infrastructure in the Lower Alima basin for aquaculture and fish farming development. - Leverage departmental know-how in Pool, Lékoumou, Niari, the Plateaux, Cuvette and Kouilou for pond and still river water fish farming. - Coordinated programs needed in two areas: (i) build operator capacity and strengthen infrastructure and human resources; (ii) improve overall competitiveness of the economy. ### Agro-industry - Current state: - Low development of farming, livestock and fishing has left the food and agri-food industry underdeveloped. - Existing agri-food industry comprises a single cane sugar production facility, one wheat flour mill, and some beverage producers (mineral water, beer and soft drinks). - These industries have had little upstream spillover; many inputs are imported (e.g. wheat for flour milling, maize, malt and hops). - Growth and export prospects: - Room for growth provided adequate supply of key inputs. - Attractive export prospects for vegetable oils (palm oil, peanut oil clock), soap making, beauty products and bioenergy lines. ### Forestry and wood industry - Resource base and historical output: - Congo has some 22.5 million hectares of forest and a commercially exploitable wood potential of 340 million m³. - Historical exports growth: from 1946 to 1959 raw log exports rose from 5,660 tons to 197,000 tons (including 140,000 tons of limba), lumber exports increased from 5,570 tons to 12,720 tons, plus 3,740 tons of veneer. - Public investments included enrichment and artificial stands (e.g., 5,500 ha of limba in Mayombe, 400 ha of eucalyptus near Pointe-Noire). - Potential and current performance: - Level of output could reach 2 million m³ without harming ecological balance. - Production has been growing steadily, particularly for raw logs, despite uncertain economic conditions; wood processing also growing. - The forestry code calls for processing 85 percent of wood production locally; the country is still far from achieving this ambition. - Economic role and recent trends: - Forestry remains one of the biggest employers and the second largest export resource after oil. - Industry grew steadily in 2009-2010 after contraction in 2008 due to the global economic crisis and collapse of wood prices. - Government actions: - Program launched to increase domestic wood processing to derive greater value added. - Targeted actions under way to build capacities and encourage investors in the sector. ### Cross-cutting policy implications and priorities - Strengthen factor productivity through modernization of production techniques, expanded use of fertilizers, and promotion of larger-scale and periurban agriculture. - Increase public investment in agriculture to meet or approach the NEPAD/Maputo benchmark (at least 10 percent of the budget) to target agricultural growth. - Reform land tenure regime to secure land title, enable a functioning land market, and attract domestic and foreign investors. - Develop financial mechanisms for agriculture (farm banks, microfinance) to finance investment and scale up operations. - Build human capital and extension services for crops, livestock, fishing and aquaculture. - Invest in infrastructure for conservation, processing, landing and transport to reduce post-harvest losses and improve competitiveness. - Coordinate sector strategies (agriculture, livestock, fishing, agro-industry, forestry) with trade policy to exploit domestic, regional and global market opportunities. *National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 410. Congo has great potential to develop a transit economy because of its geographic ### _cr12242 - 410. Congo has great potential to develop a transit economy because of its geographic ### Transit potential and transport infrastructure - Congo has a geographic position "in the heart of central Africa" and "has the principal 'economic entry and exit gateway' in central Africa, namely the Port Autonome de Pointe-Noire (PAPN)." - Natural transport corridor components: - Port of Pointe-Noire - the railway (Congo-Ocean Railway, CFCO) - Port of Brazzaville - secondary ports - Constraints limiting transit services: - Problems with the Congo-Ocean Railway (CFCO) - Navigation constraints on the Congo River during certain periods of the year (low water levels) - Major projects under way or planned to address constraints: - Rehabilitation of the railway (under way) - Construction of the Pointe-Noire-Brazzaville Highway (under way) - Expansion and modernization of the Pointe-Noire port (under way), including its container terminal - Planned rehabilitation of the Port of Brazzaville and the secondary ports - Completion of the "bridge-road-rail" project between Brazzaville and Kinshasa - Expected outcome: - "Completion of these major projects is bound to allow Congo to take full advantage of its potential as a 'corridor country', thereby improving interconnection of the economies of the subregion to the rest of the world." ### Tourism potential and constraints - Natural and ecological assets: - Congo described as "a vast and relatively virgin natural garden" in the heart of the Congo basin ("African Amazon") with rich biodiversity, varied ecological zones, and many watercourses (rivers, streams, lakes, lagoons). - Equator-straddling city of Makoua symbolizes Congo's location in both hemispheres. - Principal natural tourist sites listed: - Loufoulakari, Minguele and Moukoukoulou waterfalls and the cataracts of the Congo - Diosso gorges, Nkila-Ntari caves, Inoni cliffs, and the "holy hand" of Sembé - Mangroves of Conkouati, Lake Nanga, and the "Blue Lake” of Louvakou - Biosphere of Dimoneka - Léfini and Nouabalé Ndoki reserves and the Odzala National Park - Cultural assets: - "A great diversity of peoples and of cultural, linguistic and artistic riches" that could support "high-end" tourism to boost national income, foreign currency generation, and job creation. - Sector performance and constraints: - "The tourism sector's contribution to growth is still very low in comparison to its potential." - Causes: shortage of capacities, lack of development of tourist sites and circuits, shortage of hospitality facilities (especially hotels), high transportation costs on the Congo River. - Government intent: "The government is well aware of the problem and intends to correct it in the context of this plan." ### Financial services: developments and gaps - Banking sector: - "Currently experiencing a growth spurt in its banking sector." - Post-1990s cleanup and entry of several international banks. - Low use of banking services in financing the economy: "credit institutions are awash in liquidity, they extend little credit to the private sector." - Need: "The deepening and diversification of banking structures and products" as a condition for sustainable funding of development and modernization. - Microfinance and insurance: - Microfinance: "performing well," with savings and loan activities "growing strongly"; used largely by poor people. - Insurance: "undergoing a profound restructuring" with reorganization of Assurances et Réassurances du Congo (ARC) and stepped-up oversight. - Capital markets: - Development of the financial market awaits the effective start-up of the Central Africa Stock Exchange (BVMAC) intended to serve the six countries of CEMAC. - "Its failure to commence trading is holding back the efforts of the country and of the financial system to achieve the diversification of long-term financing instruments for private investment." ### Recent macroeconomic performance: 2008-2011 — overview - Policy context: - Macroeconomic performance improved since introduction of the Government's economic program supported by the IMF (December 2004) and the Poverty Reduction Strategy (PRS, 2008-2010). - Implementation of the PRS made Congo eligible for cancellation of nearly US$3.5 billion in debts, representing 67.4 percent of the country's total debt stock and 32.4 percent of its GDP. - Growth and sector contributions (period 2008-2011): - "The oil sector remains the driver of economic growth." - Annual average growth close on 7,0% drawn from both: - oil sector: 9,6% - non-oil sector: contribution rising (4,0% in 2009, 6,4% in 2010 and 8,0% in 2011) - Oil output: rose from 15.3 million tons in 2007 to 15.7 million tons in 2011, for an average annual growth rate of 2.6 percent. - Table 5 highlights (GDP performance, annual change, in percentages, 2008-2011 averages): - Primary sector average: 8.0 - Agriculture average: 6.8 - Sylviculture and forestry average: -7.8 - Extracted industries average: 9.6 - Secondary sector average: 6.7 - Manufacturing average: 6.7 - Electricity, gas and water average: 4.5 - Construction and public Works average: 8.9 - Tertiary sector average: 5.8 - Transport and telecommunications average: 7.2 - Commerce, restaurants and hotels average: 7.5 - Government, all levels average: 3.1 - Other services average: 5.1 - GDP at factor cost average: 6.8 - GDP at market prices average: 6.9 - Non-oil GDP average: 5.8 ### Exports and trade structure - General: - Exports follow production trends; oil dominant but non-oil tradable sectors (e.g., wood products) have seen sharper growth in exports as a share of output. - "The share of non-oil exports has been progressing favorably, even if their weight remains low in the total of exports." - Table 6 goods exports (share by product groups across periods): - Crude oil: 83% (1987-1993), 92% (1994-2000), 92% (2001-2006), 93% (2007-2009) - Oil products: 2% (1987-1993), 1% (1994-2000), 1% (2001-2006), 1,53% (2007-2009) - Tropical wood: 12% (1987-1993), 5% (1994-2000), 6% (2001-2006), 3,50% (2007-2009) - Eucalyptus logs: 2% (1987-1993), 2% (1994-2000), 0% (2001-2006), 0,10% (2007-2009) - Sugar: 1% (1987-1993), 1% (1994-2000), 1% (2001-2006), 0,34% (2007-2009) ### Investment trends - Non-oil investment rate rose from 10.8 percent in 2008 to 14.8 percent in 2011. - Foreign investment in the non-oil sector: rose sharply, "by an annual average of 35 percent between 2008 and 2011." - Interpretation: "This finding corroborates the modest improvement in the business climate" and motivates government efforts to strengthen the business environment to stimulate investment for economic transformation. ### Inflation and monetary developments - Inflation: - Consumer price index (CPI) rose at an annual average of 3 percent between 2008 and 2010. - Factors: decline in world food prices, competitiveness effects from structural reforms and infrastructure reinforcement. - Policy aim: containment of inflation "at around 3 percent, consistent with the CEMAC zone convergence criteria." - Money and credit: - Money supply growth proportional to GDP: "the ratio remained stable at around 64 percent over the period." - Credit to the private sector rose at an average pace of 38.8 percent, though level remains low. - Policy stance: "government's pro-growth but prudent fiscal and monetary policies" to sustain activity and maintain macroeconomic stability. ### Public finances: revenues, expenditures, and balances - Revenues (2008-2011): - Government revenues rose at an average annual pace of 25.8 percent over the period 2008-2011. - Non-oil revenues rose by 19.5 percent over the period, increasing their share of GDP from 7.6 percent in 2008 to 10 percent in 2011, and raising their contribution to government revenues from 14.3 percent to 20.4 percent. - Table 7 government revenues (as percentage of GDP): - Revenues and grants: 53.3 (2008), 34.6 (2009), 41.7 (2010), 45.2 (2011), Average 43.7 - Own revenues: 53.3 (2008), 34.2 (2009), 41.7 (2010), 45.2 (2011), Average 43.6 - Oil revenues: 45.6 (2008), 24.1 (2009), 32.9 (2010), 36.0 (2011), Average 34.7 - Non-oil revenues: 7.6 (2008), 10.1 (2009), 8.8 (2010), 9.2 (2011), Average 8.9 - Tax revenues: 6.9 (2008), 9.2 (2009), 8.3 (2010), 8.7 (2011), Average 8.3 - Non-tax revenues: 0.7 (2008), 0.8 (2009), 0.4 (2010), 0.5 (2011), Average 0.6 - Grants: 0.0 (2008), 0.4 (2009), 0.0 (2010), 0.0 (2011), Average 0.1 - Expenditures and balance: - Government reoriented fiscal policy to reinforce infrastructure, competitiveness, and transformation, containing current expenditure growth while steering spending to growth and social sectors. - Share of current spending declined from 17 percent of GDP in 2008 to 10 percent in 2011; capital expenditure rose from 10 percent to 16 percent over the same period. - Budgetary balance on a cash basis: deficit of 4.1 percent of GDP in 2008 to a surplus of 15.9 percent in 2010; surplus around 14.3 percent in 2011. - Primary balance excluding oil revenues: "remained structurally in deficit to the tune of around 14 percent of GDP," posing medium-term fiscal sustainability risks. - Government stance: determination "to show the greatest prudence and frugality in its budgetary policy" while aligning intensity and quality with Congo’s ambitions. ### Employment: performances and challenges - Labor force and employment rates: - Workforce represents 62.2 percent of the total population (4.085 million); 57.9 percent of workforce members are working and generating revenues. - Unemployment rate fell from 19.4 percent (ECOM1) to 6.9 percent (ECOM2). - Rural unemployment: down from 5.8 percent to 1.7 percent between 2005 and 2011. - Urban unemployment in 2011: 10.0 percent. - Youth employment: - Young people particularly affected: "Youngsters under the age of 15 years account for around 40 percent of the population, and more than two thirds of the population is under 29 years." - Unemployment for people 15-29 years: "around 12 percent," improved from 40.0 percent in 2005. - When "discouraged job seekers" included, youth unemployment is even higher. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts in content unit).* ### 437. An analysis of employment status by sector reveals another cause of concern: many ### _cr12242 - 437. An analysis of employment status by sector reveals another cause of concern: many ### Employment status by sector — core concerns - Two thirds of the "gainfully occupied" are working for their own account; these own-account workers are often engaged in informal, precarious and low-productivity activities where pay is low. - Fewer workers are in more stable and relatively higher-paying employment sectors: - civil service: 11.4 percent - small and medium-sized enterprises: 7.7 percent - large private firms: 4.8 percent - Sectoral employment shares: - agriculture and silviculture: 37.8 percent (noted in paragraph 437) - wholesale and retail trade ("commerce"): 23.1 percent (paragraph 437) - services: 10.9 percent (paragraph 437) - mining and quarrying: 0.9 percent (paragraph 437) - Conclusion: Most jobs remain in low-productivity, low-paying sectors with high job insecurity. ### Employment opportunities — recent trends - Modern sector employment rose from 105,827 jobs to 131,455 over 2000-2009; average annual increase: 2.4 percent. - GDP growth: - overall average annual rate of GDP growth: 4.6 percent (2000-2009) - non-oil sector GDP growth: 7.0 percent (period referenced) - Non-oil sector employment rose by 4.1 percent. - Interpretation: - Output growth translated into job creation and sharp gains in labor productivity, especially in the non-oil sector. - Survey data do not permit assessment of wages and incomes; quality of jobs remains uncertain. ### Employment by sector — detailed shares (ECOM/ECOM2/EESIC findings) - Aggregate sector shares (paragraph 439): - agriculture: 35.6 percent - commerce: 20.7 percent - manufacturing: 16.3 percent - construction, commerce and other services each around 20 percent (paragraph 439) - Occupational category: - own-account workers: 70.1 percent of labor market participants (paragraph 440) - proportion of poor workers among own-account group: 75.2 percent (paragraph 440) - Informality and formality: - only 15 percent have formal jobs (paragraph 441) - overemployment/underemployment: more than one worker in two — 52 percent — is working less than 35 hours a week (paragraph 451) ### Job seekers — characteristics and unemployment patterns - Gender: - economy-wide unemployment rates: men 18 percent versus women 20.5 percent (paragraph 442) - urban areas unemployment: men 14 percent versus women 19 percent (paragraph 442) - Age: - ECOM1 (2005): unemployment rate exceeds 40 percent for 15-19 years; 20–40 percent until age 30 (paragraph 443) - 2009: unemployment rate for 15-29 years in the two biggest cities: 25 percent; persons 50 years and older: 5.4 percent (paragraph 443) - ECOM2 (2011): 15-29 years unemployment rate: 12 percent (men 11.7 percent; women 12.4 percent); over-50 rate: men 3.8 percent; women 0.6 percent (paragraph 443) - Education and youth unemployment: - Youth unemployment rises with level of education; young people with no schooling have lower unemployment rates than those with secondary schooling or higher (paragraph 444). - Explanations include informal-economy job availability for lower-skilled workers, higher expectations among more educated jobseekers, and possible mismatch of general training with practical activity needs (paragraphs 445–446). ### Labor market institutions, wages, and intermediation - Formal employment market composition (2000-2009): - public sector: on average more than 61 percent of employees (paragraph 447) - private sector: nearly 20 percent in 2000 rising to 37 percent in 2009, driven by agro-forestry, mining and telecommunications (paragraph 447) - Labor-market intermediation: - Principal agencies: Directorate-General of the Civil Service (DGFP), National Employment and Labor Office (ONEMO); Directorate-General of Vocational Training and Employment (DGFQE) supplements efforts (paragraph 448). - Low usage of ONEMO: only 3.2 percent of the unemployed use ONEMO services (EESI 2009) (paragraph 449). - Success rate of job searches via government agencies over last five years: 3 jobseekers in 20 (14 percent) were successful (paragraph 450). - Identified causes of poor intermediation performance: capacity problems (human resources, equipment, databases) and qualification shortcomings of jobseekers (paragraph 450). - Wages and productivity alignment: - Wages in private and public sectors are ill-aligned with labor productivity (paragraph 451). - Private-sector wages often determined by "pay grids" and academic qualifications rather than productivity; benchmark minimum wage not explicitly tied to objective index such as cost of living (paragraph 451). - High rate of discouraged job seekers and underemployment linked to wage-productivity misalignment and reservation wage effects (paragraph 451). - Public sector issues exacerbated by long-standing freeze on the minimum wage and decree no. 06/96 of March 6, 1996 blocking financial benefits attached to promotions in the civil service (paragraph 452). - Government measures: - Repealed decree no. 06/96 and raised the minimum wage from CFAF 50,400 to 60,000 as of January 2011 (paragraph 453). - Overall, wages are trending upwards in both private and public sectors (paragraph 453). ### Policy implications and recommendations (as stated) - Need for greater transformation of the economy (supply-side) and of human resources (demand-side), and greater attention to labor market functioning (paragraph 441). - Accelerate and intensify human resource building programs to make primary and secondary education universal (paragraph 446). - Encourage and facilitate young people's access to higher education and strengthen its quality to develop a sizable pool of skilled workers capable of absorbing new technologies and meeting modernization and industrialization demands (paragraph 446). - Reinforce institutional mechanisms for matching labor supply and demand; boost capacities of DGFP, ONEMO, and DGFQE (paragraphs 448–450). - Strengthen the education system to produce workers with skills needed for the modern economy (paragraph 450). - Align wages with labor productivity through policy measures and institution-strengthening (paragraphs 451–453). ### Summary of main constraints on growth and job creation - Despite progress in job creation and a significant decline in unemployment since 2005, key challenges remain: - Unemployment remains high, particularly for young people, and masks a low labor market participation rate (paragraph 454). - With a small population, Congo cannot afford a poorly educated workforce or low participation, especially in the modern sector (paragraph 455). - Government intends to refine policies for labor market facilitation, workforce education, and offer incentives to align wages with labor productivity to improve human resource efficiency (paragraph 455). - Government is working to remove capacity and competitiveness constraints handicapping productive sectors (paragraph 456). *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts provided).* ### 466. These considerations of marital status are important for the stability or vulnerability of ### _cr12242 - 466. These considerations of marital status are important for the stability or vulnerability of ### Demographics and main household living-condition indicators - Total population (in millions): 3.551 (2005); 4.085 (2011); Average annual growth: 2.7 - Number of households (in thousands): 693.4 (2005); 955.1 (2011); Average annual growth: 6.2 - Urban population (%): 58.4 (2005); 67.1 (2011); Average annual growth: 2.3 - Female population (%): 51.7 (2005); 51.7 (2011); Average annual growth: 0.0 - Population under 15 years (%): 39.9 (2005); 39.5 (2011); Average annual growth: -0.2 - Population over 65 years (%): 3.6 (2005); 3.7 (2011); Average annual growth: 0.5 - Urban households (%): 58.4 (2005); 67.1 (2011); Average annual growth: 2.3 - Average household size: 5.1 (2005); 4.3 (2011); Average annual growth: -2.8 - Age distribution (2005 vs 2011; avg annual growth): - Under 15 years: 39.9; 39.5; -0.2 - 15-64 years: 57.3; 56.8; -0.1 - 65 years and over: 3.6; 3.7; 0.5 Education and literacy (selected indicators) - Access to primary education (%): 86.6 (2005); 91.5 (2011); Average annual growth: 0.9 - Gross enrollment rate in primary (%): 128.3 (2005); 117.7 (2011); Average annual growth: -1.4 - Girls (%): 123.5 (2005); 115.9 (2011); Average annual growth: -1.1 - Boys (%): 133.1 (2005); 119.5 (2011); Average annual growth: -1.8 - Net enrollment rate in primary (%): 86.8 (2005); 89.3 (2011); Average annual growth: 0.5 - Girls (%): 86.3 (2005); 89.4 (2011); Average annual growth: 0.6 - Boys (%): 87.2 (2005); 89.2 (2011); Average annual growth: 0.4 - Primary school satisfaction rate (%): 27.3 (2005); 30.8 (2011); Average annual growth: 2.0 - Adult literacy rate (%): 80.4 (2005); 83 (2011); Average annual growth: 0.5 - Women (%): 72.5 (2005); 76.8 (2011); Average annual growth: 1.0 - Men (%): 89.1 (2005); 90.2 (2011); Average annual growth: 0.2 - Access to secondary education (%): 58.5 (2005); 72.6 (2011); Average annual growth: 3.7 - Gross enrollment rate in secondary (%): 65.3 (2005); 84.5 (2011); Average annual growth: 4.4 - Net enrollment rate in secondary (%): 44.4 (2005); 59.1 (2011); Average annual growth: 4.9 - Secondary school satisfaction rate (%): 28.3 (2005); 33.4 (2011); Average annual growth: 2.8 Health (selected indicators) - Access to health services (%): 68.7 (2005); 65.8 (2011); Average annual growth: -0.7 - Health services need: 39.3 (2005); 38.2 (2011); Average annual growth: -0.5 - Utilization rate of health services (%): 26.7 (2005); 23.8 (2011); Average annual growth: -1.9 - Patient satisfaction with health services (%): 71.2 (2005); 72.5 (2011); Average annual growth: 0.3 - Female population receiving prenatal care (%): 88.9 (2005); 91.8 (2011); Average annual growth: 0.5 Employment (selected indicators) - Employed population 15 years and over (%): 56 (2005); 57.9 (2011); Average annual growth: 0.6 - Underemployed population (%): 9.3 (2005); 27.8 (2011); Average annual growth: 20.0 - Population 15 years and over employed in health and education (%): 5 (2005); 5.5 (2011); Average annual growth: 1.6 - Population 15 years and over employed in agriculture and silviculture (%): 33.8 (2005); 37.8 (2011); Average annual growth: 1.9 - Unemployment rate (%): 19.4 (2005); 6.9 (2011); Average annual growth: -15.8 - Unemployment among 15-29-year-olds (%): 36.7 (2005); 12 (2011); Average annual growth: -17.0 ### Household economic situation, assets and employment trends - Two dimensions of improvement cited: - (i) growth in net household assets (net of financial liabilities); - (ii) growth in employment and occupations. - Household assets definition: goods acquired by the household through purchase, gift or inheritance, excluding consumption of fungible goods; include productive goods (land, house, car, electric and electronic devices such as power generators, computers etc.) and leisure goods (houses, cars and household appliances such as television, telecommunication etc.). - Asset and welfare findings: - Urban homeowners: 47.8 percent (2005); 43 percent (2011) [noting urban homeowner percentage reported as 43 percent in 2011 and 47.8 percent in 2005]. - Television ownership: 20 percent (2005); 46.1 percent (2011). - Electric lighting: 28.0 percent (2005); 38.4 percent (2011). - Car ownership: 1.8 percent (2005); 2.3 percent (2011). - Interpretation: improvements in assets signal strengthened economic capacities and reduced vulnerability, but low car ownership may reflect well-developed, affordable public transportation. - Employment findings: - Active population: 2,541,132 (62.2 percent of total population). - Gainfully occupied among active population: 57.9 percent. - Unemployment rate fell from 19.4 percent (ECOM1, 2005) to 6.9 percent (ECOM2, 2011). - Urban unemployment: 30.2 percent (2005); 10 percent (2011). - Rural unemployment: 6.3 percent (2005); 1.7 percent (2011). - Underemployment rose from 9.3 percent (2005) to 27.8 percent (2011). - Youth (15-29) unemployment: around 12 percent (2011) versus 36.6 percent (2005); note discouraged jobseekers increase effective youth unemployment. - Employment structure (2011 highlights): - Own-account workers among "gainfully occupied": 62.9 percent. - Large private firms: 4.8 percent. - Civil service: 11.4 percent. - SMEs: 7.7 percent. - Agriculture and silviculture: 37.8 percent. - Wholesale and retail trade: 23.1 percent. - Services: 10.9 percent. - Mining and quarrying: 0.9 percent. - Interpretation: majority of jobs are in informal, low-productivity, low-pay sectors with high insecurity. ### Household living environment, housing, water and sanitation - Housing: - Owner-occupants: 64.4 percent (2005); 57.7 percent (2011). - Rural homeowner share: 83.4 percent. - Urban dwellers in multiunit apartment buildings: 49.2 percent. - Dwellings constructed of durable materials (cinderblock and bricks): 51.2 percent (2005); 55.0 percent (2011). - Flush toilets: 6.0 percent (2005); 7.8 percent (2011). - Domestic electricity connections: 27.7 percent (2005); 38.0 percent (2011). - Interpretation: trends indicate improvement in housing quality and living environment, but homeownership figures can mask rural poverty and precarious housing. - Water access: - Population drawing water from artesian wells: 3.3 percent. - Reliance on rainwater: 2.3 percent. - Use of watercourses and unimproved sources: 17.1 percent. - SNDE network technical loss rates: 30 percent. - Policy challenge: rehabilitation and expansion of urban water network; equip towns with drinking water systems and provide improved springs, boreholes and wells for villages. - Hygiene and sanitation: - Street bins: 6.1 percent (2005); 1.9 percent (2011). - Households dumping garbage in public spaces or in nature: 53.7 percent (2005); 60.0 percent (2011). - Households not using any sanitary facility (defecating “out in the open”): 7.8 percent (2005); 9.0 percent (2011). - Uncovered latrines: 35.7 percent (2011). - Households with adequate sanitary toilet: 51.9 percent (2005); 52.4 percent (2011). - Covered latrines: 43.8 percent (2011). - Disposal of wastewater using appropriate systems (sewer systems and drains): 10.6 percent (2011). - Households dumping wastewater into nature, dooryard or street: 54.4 percent (2005); 83.2 percent (2011). - Cesspool-equipped households: 4.5 percent (2005); 6.5 percent (2011). - Interpretation: sanitation and waste management have deteriorated or remain severely inadequate despite some increases in flush toilets and "improved" WCs; urgent rehabilitation and expansion of trash collection and hygiene services are required. - Overall assessment: - Positive socioeconomic results in employment and household assets indicate an improving economic situation for Congolese households. - These gains are offset by alarming trends in water access and especially sanitation, which were a focus of government debate in 2011 in preparation for the 2012 budget. ### Household access to essential services — Education (preschool and primary) - Policy measures and achievements since early 2000s: - Effectively free access to primary education. - Free schoolbooks. - Recruitment of more than 6,000 primary school teachers between 2002 and 2008. - Revival of adult literacy and informal basic education activities nationwide. - Teacher presence verified by a census. - Preschool education (coverage and problems) - Coverage rate for preschool education: 12.3 percent (2009). - Preschool pupils increased from 5,600 (1995) to 39,652 (2009); annual increase reported as 33.6 percent per year. - Constraints identified: - Low coverage of daycare centers and preschool facilities countrywide. - Preschool model inappropriate to local setting. - Unequal coverage between rural and urban areas. - Special early childhood education marginal. - Insufficient financial and material resources; preschool not included in free schooling. - Inadequate teaching equipment and supports. - Objectives, contents and methods not adapted to children's emotional, psychomotor and intellectual needs or socio-cultural environment. - Inadequate training of private school teachers and no continuous training for publicly-employed teachers. - Lack of holistic development integrating health, nutrition and education. - Lack of synergy among ministries involved in early childhood. - Personnel in charge have inadequate qualifications. - Primary education (access, quality and shortcomings) - Improvements between 2005 and 2011: - Access to primary school: 86.6 percent (2005); 91.5 percent (2011). - Net primary school enrollment rate: 86.8 percent (2005); 89.3 percent (2011). - Primary school satisfaction rate: 27.3 percent (2005); 30.8 percent (2011). - Remaining problems: - Primary school completion rate: 77 percent (2005); 83 percent (2011). - Dropout rate: 5.7 percent (2011). - Girls-boys parity index improved from 92.8 percent (2005) to 97.1 percent (2011). - Regional disparities: access rate in rural areas: 42.5 percent (2011) versus cities: 84.7 percent (2011). - Specific persistent problems: - High repeater rates. - Excessive reliance on support personnel (non-teachers) due to recurrent teacher shortages. - High pupil-teacher ratios in large cities. - Difficulties in financing education projects. - Access difficulties in remote areas and among vulnerable groups. - Scarcity of alternative education solutions. - Infrastructure and enrollment dynamics: - Number of schools rose from 1,542 (2003) to 3,008 (2007). - Private institutions increased to 1,154 (2007) from 601 (2003); 63 were conventionné (officially recognized) in 2007 versus 601 in 2003 (note: figures reflect private-sector growth and official recognition changes). - Public education enrollment grew more slowly than private sector; noted jump in public enrollment in 2009 after free tuition introduction. - Education table (selected) - Gross enrollment rate in primary: 128.3 (2005); 111.1 (2008); 117.7 (2011) - Gross enrollment rate of girls in primary: 123.5 (2005); 84 (2008); 115.9 (2011) - Girls/boys parity index (% *): 92.8 (2005); 89 (2008); 97.1 (2011) - Gross primary school admission rate: 1139 (2005); 5113 (2008); N/a (2011) [table entries as presented] - Gross primary school completion rate: 77 (2005); 83 (2008); N/a (2011) - Pupil/teacher ratio: 52 (2005); 75.7 (2008); 50 (2011) - Source reference in original: ECOM 1 and 2, GTDR Education Report - Note: *Gross enrollment rate for girls relative to that for boys. *Italic line: Content derived from the provided _cr12242 excerpt of the National Development Plan CONGO DSCERP 2012-2016.* ### 485. The ECOM results confirm strong growth in the secondary enrollment rate. The gross ### _cr12242 - 485. The ECOM results confirm strong growth in the secondary enrollment rate. The gross ### Secondary enrollment — key findings and trends - Gross enrollment rate: - rose from 65.3 percent in 2008 to 84.5 percent in 2011. - net gain: 19.2 percentage points in five years. - possible driver: government's introduction of free tuition in 2007. - Rate of access to secondary school: - increased from 58.5 percent in 2005 to 72.6 percent in 2011. - Children effectively "left behind": - 4.9 percent of school-age children 12 to 18 years were effectively "left behind" in 2011. - Satisfaction rate with secondary education: - improved from 28.3 percent in 2005 to 33.4 percent in 2011. - Student numbers and coverage: - total students enrolled in the first cycle of secondary school increased by some 8 percent, from around 191,000 to 206,000 (2005–2010). - coverage rate remains far from 100 percent. - lycée (senior secondary) coverage: regional disparity — rural 32.8 percent versus urban 69.7 percent. ### Secondary education — problems and policy objective - Government target: - set a target of 100 percent enrollment in primary and secondary school to assure the human capital needed for modernization and industrialization. - specific objectives, strategies and programs described in chapter 11 of the paper. - Current problems in secondary education (first and second cycles): - Institutions are run down and obsolete. - Shortage of classroom space, especially in urban areas. - Laboratories nonexistent or poorly equipped in nearly all institutions; science instruction is strictly theoretical. - Shortage of teachers, especially in the sciences. - Teachers have inadequate qualifications. - Excessive resort to substitute personnel (supply teachers, volunteers) in the classroom. - Other factors holding back development: - Under-representation of girls. - Unequal distribution of enrollment (heavily concentrated in the large cities). - High rate of monetary poverty among households. - Shortage of assistance and support services (remedial courses, school transport, etc.). ### Literacy - Definition: - literacy concerned the population 15 years and older. - Literacy rates: - rose from 80.4 percent in 2005 to 83 percent in 2011. - urban versus rural disparity: urban 91.5 percent, rural 63.2 percent. - gender disparity in favor of males. - socioeconomic findings: public sector employees have higher literacy rates compared with independent agricultural workers and other employees. ### Technical education and vocational training (TVE) - Role: - essential for reinforcing human capital, supplementing basic education, serving economy needs, and preparing students for labor market entry. - Current capacity and composition: - TVE sector has only 74 institutions, more than 60 percent concentrated in Brazzaville and Pointe-Noire. - 2,344 government-employed teachers in TVE. - TVE accounts for 10 percent of the student body at the collège (junior secondary) level and 37 percent at the lycée (senior secondary) level. - Capacity shortfall: - TVE not yet able to meet growing needs for skilled workers and qualified technicians. - Actions underway: - new teachers hired to improve the student/instructor ratio. - Pressing shortcomings (listed): - (i) insufficient and uneven distribution of facilities; - (ii) uneven distribution of personnel across the country; - (iii) lack of infrastructure and equipment; - (iv) an aging teaching body with inadequate refresher training; - (v) weakness of the linkages with the workplace and with related sectors and institutions in other countries; - (vi) training that is inappropriate to real needs; - (vii) programs that are poorly designed and often incomplete; - (viii) a limited range of training fields and difficulties for graduates in accessing higher education; - (ix) certain streams provide training that leads nowhere; - (x) lack of awareness raising about HIV/AIDS and preventive measures. - Policy intent: - authorities intend to redouble efforts to strengthen the vocational education system, its intake capacities and its outcomes as an imperative for economic modernization and industrialization. ### Higher education — developments and shortcomings - Government steps: - expanded capacity and improved quality and performance. - opened higher education sector to private interests; several institutions created and some officially recognized. - application of programs under the LMD (licence-master-doctorat) system. - supervision and inspection of officially recognized private higher education institutions. - redefinition of the missions of Marien Ngouabi University as part of reorganization decree. - construction of a new library within Sino-Congolese cooperation. - Noted shortcomings: - (i) until 2010, private higher education institutions were not officially recognized; - (ii) taxes and fees (license fees, flat tax on salaries) for institutions performing a public service are hard to justify; - (iii) imports of technical and teaching materials are not exempt from customs duties; - (iv) no partnership with local businesses to promote on-the-job training; - (v) banking sector reluctant to finance graduates' projects. ### Marien Ngouabi University and the LMD system (Box summary) - Institutional growth: - Created by ordonnance 29/71 of December 4, 1971; initially 4 institutions, now 11 institutions (five faculties, three institutes, three schools). - Student growth: from 3,000 at creation to more than 20,500. - Impact of LMD reform: - LMD reform decisions taken at conference of rectors in October 2003 in Yaoundé, Cameroon. - Main decisions: initiate reforms in 2005 and 2006 to adapt curriculum to LMD; strengthen regional integration capacities by establishing a network in CEMAC zone; seek EU technical assistance for training members of university and research institutions for ACP-EU program eligibility. - Academic councils adopted texts on organization of training and studies in LMD; texts to be signed during 2009. - Operational and infrastructure challenges under LMD: - demands on administrative management and increased coaching and guidance requirements may accentuate time management and research direction cost issues. - infrastructure and equipment shortages: shortage of classrooms and lecture halls; shortage of computer equipment; lack of up-to-date libraries; serious computerization problems and lack of visibility. - illustrative capacity pressures: law faculty has more than 9,000 students (students rising at 3 AM to secure seats); faculty of economic sciences around 5,000 students with first-year courses in two shifts. - Policy implication: - Congo must address economic diversification and modernization so Marien Ngouabi University can become part of globalization of instruction, requiring harmonization and standardization for higher education, research and vocational training. ### Health and HIV-AIDS — overview and key indicators - Context: - ECOM results confirm disappointing trends observed in other health statistics despite substantial efforts under PRSP-1 and the National Health Development Program (NHDP). - PRSP-1 period (2008-2010) aimed to reduce infant mortality (from 75 deaths per 1,000 live births to 30 deaths per 1,000 live births), maternal mortality (from 781 to 390 deaths per 100,000 live births), and to fight malaria, tuberculosis, and HIV/AIDS. HIV/AIDS was a pillar of PRSP-1. - Performance: - indicators have improved substantially though levels remain inadequate and trends seem less favorable; health indicators are still cause for concern compared with other countries. - higher levels of maternal and neonatal mortality and lethality levels for malaria noted. - Table 11 — Key health indicators (selected entries preserved verbatim) - Infant mortality rate (per 1,000 live births): 87.5 (2005), 80 (2009), 66.8 (2011), PRSP 1 target level 56.25 - Child mortality rate (per 1,000 live births): 117 (2005), 127 (2009), 117 (2011) - Maternal mortality rate (per 100,000 births): 781 (2005), 740 (2009) - Health service attendance rate: 38 (2005), 39 (2009), 37 (2011) - Health service attendance rate (children 0-5 years of age): 78 (2005), 86 (2009), ND (2011) - Births assisted by medical and/or paramedical personnel: 83 (2005), 86 (2009), 93 (2011) - Prenatal consultation rate: 86 (2005), 86 (2009) - Rate of HIV/AIDS prevalence in pregnant women (in prenatal visits to health centers): 2.2 (2005), 2 (2009), 2.1 (2011); PRSP 1 target: Less than 6 percent - Malaria lethality rate per population of 10,000: ND (2005), 135 (2009), 140 (2011); PRSP 1 target level 62.5 - Source: Health Demographic Survey (EDS1), Urban Survey on Employment and the Informal Sector (ESIC 1) and Research and Planning Directorate (DEP)/Ministry of Public Health (MSP). ### Drivers of poor health outcomes and nutrition concerns - Access and program limitations: - difficulties in accessing high-quality health care and targeted programs. - infant/juvenile mortality rate assessed at 117 deaths per 1,000 births (EDS, 2005) may correlate with insufficient immunization coverage; one out of three children does not have access to measles immunization. - Nutrition and food security: - nutrition problems major cause of morbidity and high mortality. - agricultural and fish production insufficient to achieve public food security; many cannot afford high-cost imported goods. - vulnerable groups: pregnant women, elderly persons, children. - national food production dominated by manioc and tubers; cereals, livestock and oilseed products largely imported. - FAO 2007 study: average consumption 2512 Kcal per person per day. - 2009/2010 analysis: diet lacking more in quality than in quantity. - WFP nutritional assessment in Brazzaville, Pointe-Noire, Likouala and Plateaux: - Severe Acute Malnutrition (SAM) rate measured at 3,8% (note comma as in source). - Global Acute Malnutrition (GAM) at 9,5% is lagging in growth at 15,4%. - departments most vulnerable: Lékoumou, Plateaux and Cuvette; northern part of Pool also potentially included. - Proposed nutrition response: - strengthen nutritional education through introduction of nutritional training modules (for mothers, adults and students). - improve living conditions of households (salaries, pensions, bursaries, school canteens, meal vouchers, ...). ### Health sector resources and investments - Public investment in health (recent three years trend): - increased from F CFA 29,8 billion in 2010 to F CFA 47 billion in 2011, then to F CFA 94 billion in 2012. - 2012 referred to as the “year of health”. - Implementation note: - more relevant, better-quality programmes and greater coherence and diligence in implementation will be necessary to reverse the situation. ### University hospitals — CHU challenges and modernization efforts (Box summary) - Role and specializations: - CHU established under Law 008/87 of February 2, 1987; reference hospital responsible for tertiary care, training, and biomedical research; linked with Université Marien Ngouabi. - Specializations include: Pathological anatomy; Medical biology; Surgery; Cancer treatment; Dermatology; Pediatrics; Rheumatology; Gastroenterology; Hematology; Infectious disease; Metabolic and endocrine disease; Nephrology; Ophthalmology; Otorhinolaryngology (ORL); Pneumology; Urology. - Operational limitations: - patients often evacuated to hospitals in the Maghreb and Europe because equipment is technically obsolete (technological plateau). - CHU does not cover a number of pathologies and certain medical operations (heart or brain operations, organ transplants, hemodialysis, etc.) cannot be performed owing to shortage of equipment. - operational problems: supply of drugs and essential supplies such as oxygen; absence of elevators requires patients to be carried on stretchers by porters paid by families. - Government response: - decided to invest in renovation of the CHU in certain areas; Ophthalmology, Stomatology, Gynecology, and ORL departments have been modernized. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts from _cr12242)_* ### 4. In addition to the modernization of the CHU, the country must be equipped with reference health ### _cr12242 - 4. In addition to the modernization of the CHU, the country must be equipped with reference health ### Health system modernization and planned activities - Government declared 2012 a year for health and decided to make all quality health care services universally available. - Planned activities: - rehabilitation and equipment of health care centers; - reorganization and modernization of hospitals; - creation of dialysis centers and specialized hospitals; - building of health institutions that meet normal standards. - Source of these plans: Technical Secretariat (ST)/DSCERP, and International Development Consulting. ### HIV/AIDS: prevalence, trends, and behavioral indicators - Overall HIV prevalence (both genders combined): - 4.2 percent in 2003; - 3.2 percent in 2009 (a gain of one point). - Highest departmental prevalence in 2009: - Lékoumou: 4.8 percent; - Pointe-Noire: 4.6 percent; - Niari: 4.4 percent; - Sangha: 4.0 percent. - In other areas, prevalence was below 4 percent. - Condom use by gender (survey comparisons 2003 to 2009): - Women: increased from 21 percent in 2003 to 29 percent in 2009. - Men: declined from 42.8 percent in 2003 to 28 percent in 2009. - Government recommendation: support educational efforts to promote the use of condoms in sexual relations, specifically targeting men. ### Public expenditure indicators (extracts from TABLE 12) - Public education expenditure (as a percentage of total public expenditure) — selected entries for Congo, Rep.: - 2003: 9 - 2004: 10 - 2005: 9 - 2006: 8 - 2007: 11.5 - 2008: 11.4 - 2009: 11.4 - Public health expenditure (as a percentage of total public expenditure) — Congo, Rep.: - 2000: 5 - 2001: 4 - 2002: 5 - 2003: 6 - 2004: 5 - 2005: 5 - 2006: 5 - 2007: 5 - HIV/AIDS prevalence rate in adults 15-29 years of age (in percent) — Congo, Rep.: - 2000–2006 (selected): 4.2 4 4 4 4 4 3. ### Scientific research: capacities, achievements, and constraints - Research institutions: Université Marien Ngouabi and research and development agencies. - Notable satisfactory results: - Forestry: development of subculturing for eucalyptus and afara; creation of high-productivity industrial varieties of eucalyptus; creation of clonal plantations; - Agriculture: layering and grafting of fruit trees; micropropagation of food and fruit crops; in-vitro preservation of germplasm for food crops; creation of varieties of cassava resistant to bacterial wither; - Intellectual property: during 2003-2007, 111 applications for protection were submitted to the African Intellectual Property Organisation (OAPI). - Flora and vegetation studies: - established a catalog of vascular plants assessing flora of Congo at 4,397 species among 198 families and 1,338 genuses; - created a national herbarium in Brazzaville accommodating nearly 4,500 species. - Remaining research gaps: studies on fish in Congolese continental waters, snakes and amphibians, and mammals remain fragmentary. - Institutional framework: National Plan for Scientific and Technological Development (PNDST) 2009-2013; implementation covered by a higher council for science and technology and an inter-ministerial council for science and technology. - Constraints to success: internal (resources, management, efficiency), external (sociopolitical problems, development partner priorities), and cross-cutting issues (population explosion, expansion in HIV/AIDS, gender disparities, cultural and socioeconomic constraints). ### Poverty: trends, magnitudes, and drivers - Economic and demographic context (2005-2010 / 2005-2011): - Annual average GDP growth rate: approximately 6 percent (2005-2010). - Population annual average growth: 2.7 percent (2005-2011). - Resulting average annual per-capita income increase: 4.4 percent per annum (period referenced). - Poverty incidence and measurement caveats: - Incidence declined from 50.7 percent of the population in 2005 (ECOM 1) to ** percent in 2011 based on macroeconomic performance and micro trends reported by ECOM 2 (results provisional). - Approximately ** out of ** Congolese nationals were poor in 2011, as opposed to one out of two in 2005. - Just under ** percent of the Congolese population lives under the poverty line (CFAF ** per day in 2011), compared with 50.7 percent in 2005 (CFAF 839 per day in 2005). - Approximately ** million out of 4 million Congolese citizens in 2011 registered average annual income (average annual consumption) levels below the national limit of CFAF ** per year. - Decomposition of poverty reduction: bulk of reduction (approximately ** points out of a total gain of ** points) attributed to sustained growth in average per-capita income (4.4 percent); improved income distribution also contributed (see Table **). - Spatial and demographic patterns: - Poverty more severe in rural areas than urban areas. - 2005 poor-sector shares: - Rural areas: 64.8 percent; - Semi-urban areas: 67.4 percent; - Pointe Noire: 33 percent; - Brazzaville: 42 percent. - Gap between rural and urban areas has persisted and may have worsened; poverty reduction less pronounced in rural areas. - Policy implication: increased emphasis on rural development, enhanced quality and intensified execution of rural development programs in economic activities (agriculture, stock breeding) and infrastructures (rural roads and tracks, water). Government has incorporated rural development into strategy for balanced development. ### Household perceptions of poverty and determinants - Methodology: qualitative component in ECOM 2 to capture perceived poverty, causes, and assessments of poverty reduction strategies. - Key findings on perception vs. measured poverty: - Poverty "perceived and experienced" by households is more severe than poverty "measured" by surveys. - Households often consider themselves poorer in a country perceived as rich, reflecting concerns about inequalities and social cohesion. - Main causes of poverty reported in ECOM 2 (comparisons 2005 vs 2011 where available): - shortage of employment: 91.5 percent in 2011, as against 86.0 percent in 2005; - poor public management: 62.9 percent in 2011, as against 49.0 percent in 2005; - insufficient income: 58.9 percent in 2011, as against 41.0 percent in 2005; - corruption: 51.6 percent in 2011, as against 15 percent in 2005. - Interpretation and policy stance: - Mismatch between experienced and observed poverty can provoke social unrest and undermine credibility of policies. - Government intends to intensify efforts to reduce inequalities and reduce experienced, perceived, and observed poverty. - Access to employment and essential services is a determinant of perceived poverty; improvements in income must be accompanied by better availability and accessibility of essential services. ### Other dimensions of human development: gender and women - Legal and policy context: a number of texts adopted (Constitution, Law on Education, Law on Elections) establish legal equality between men and women; most relevant international instruments ratified. - Persistent issues: - Discrimination remains at legal levels (tax law, criminal law, family code, social and economic rights) and de facto inequalities (Levirat marriages, widowhood customs, estates, gender-specific violence). - In formal education, disparities between girls and boys persist due to substantial dropout rates for girls at the secondary level, attributable to poor guidance, early pregnancy, and family poverty. - Recent trends: Congolese women have fought for emancipation; government efforts made to involve women fully in decision-making. Gender issues have taken on a national dimension despite persistence of negative trends. *Source: National Development Plan CONGO DSCERP 2012-2016 (extracts provided by the content unit).* ### 523. The improvement of the status of women now faces a number of constraints, ### _cr12242 - 523. The improvement of the status of women now faces a number of constraints, ### Constraints on improving the status of women - Identified constraints: - (i) insufficient policy support for gender issues, preventing them from being effectively addressed in all development projects, programs, and policies, despite the 2008 adoption of a national gender policy accompanied by an action plan for 2009-2013; - (ii) insufficient representation of women in decision-making circles; - (iii) persistence of violence against women, with those responsible going unpunished; - (iv) the influence of retrograde customs and practices as women do not understand their rights; and - (v) access to and control of resources and means of production. ### Women's political representation and gender indicators - Decline in parliamentary representation: - Seats occupied by women in the national parliament: 12 percent in 2005; 8.6 percent in 2009; 6 percent in the current parliament. - 2008 study on representation in republican institutions: - Government: five women out of 39 (12.8 percent). - Supreme Court: four out of 21 (9.5 percent). - High Court of Justice: six out of 36 (16.7 percent). - Constitutional Court: one out of nine (11.1 percent). - Departmental and municipal councils: representation for women estimated at 12 percent. - Table 15. Key gender indicators (as presented) - Index of parity between girls and boys enrolled in primary school: 0.93 (2005); 0.92 (2008); 0.97 (2011). - Index of parity between girls and boys enrolled in secondary school: 0.99 (2005); 0.99 (2008); 0.99 (2011). - Index of parity between girls and boys enrolled in higher education: 0.51 (2005); 0.65 (2008); 0.67 (2011). - Seats occupied by women in the national parliament (percent): 12 (2005); 8.6 (2008); 6 percent (2011). ### Social security system coverage and dynamics - Structural limitations and coverage: - National social security system limited to benefits from the Civil Service Retirement Fund [Caisse de Retraite des Fonctionnaires —CRF] and the National Social Security Fund [Caisse Nationale de Sécurité Sociale—CNSS], which covers only 15 percent of the population, excluding the majority operating in the informal or small farming sector. - Coverage of social protection measures limited to civil servants and employees in the private sector despite a drafted and adopted framework law overhauling the social security system. - Specific numbers: - Number of retired persons in the National Social Security Fund (CNSS): 34,594 persons in 2009; 35,205 persons in 2010. - Personnel covered by the Civil Service Retirement Fund (CRF): 18,950 persons in 2010. - Financial equilibrium concerns: - Pay-as-you-go model described as one retired person per four wage earners, which "is no longer at financial equilibrium." - Implication: need to create more formal employment opportunities so retirement funds reach intergenerational equilibrium and remain sustainable. - Government intentions: - A national social security policy is being studied with support from United Nations system agencies. - Government intends to pursue efforts to promote women and other vulnerable groups in line with inclusive development. ### Families, vulnerable groups, and targeted measures (2009–2011) - General gaps: absence of a national policy for families leading to problems in housing, food, education, health, and transportation. - Measures and outcomes: - Free benefits measures: free school fees; malaria treatment for children 0-15 years of age; identification of women with obstetric fistulas and socioeconomic reintegration of those cured; free Cesarean procedures. - Transportation allowance: CFAF 10,000 for civil servants. - Minimum wage increase for government employees: from CFAF 64,000 to CFAF 70,000 (10 percent increase). - Family benefits for children of civil servants: increased from CFAF 1,200 to CFAF 2,000 in 2011 and have now been increased to CFAF 5,000 per child per month (an increase of more than 100 percent). - Stipends increased by 50 percent. - Government care actions during 2009-2010: care of 22,106 orphans and other vulnerable children; reintegration of 300 street children; school enrollment for 411 children. - Handicapped persons: - Following the national action plan for the decade of handicapped persons, the government undertook care for 1,600 handicapped persons during 2009 and 2010. - Indigenous peoples: - Government enrolled more than 4,011 children during 2009 and 2010; 4,864 benefited from other programs during the same period. - Promulgation of Law 5/2011 on protection and promotion of the rights of indigenous peoples (civil, political, social, cultural, and ownership rights). ### Women’s socio-economic role and gaps - Demographic and participation data: - Women constitute 51.4 percent of the population of Congo (ECOM 2 survey). - In rural areas, women participate in production at 58.3 percent. - Role versus status: - Women play central roles in family cohesion, basic education, health, and child assistance, contributing directly to food security. - Economic and political disparities remain: - Economic: limited access to land and financial resources. - Political: insufficient representation in government, constitutional institutions, elected offices, and decision-making circles in public and private sectors. - Government response: - Increased awareness of gaps and decision to place further emphasis on women, children, and the family in its development program. ### Millennium Development Goals (MDGs): progress and targets - Macroeconomic context: - During 2008-2010, Congo registered sound average annual growth levels of 7.4 percent. - MDG 1 — Eradicate extreme poverty and hunger: - Proportion of the poor population: 50.7 percent (2005) to 44.0 percent (2009), a decline of six points, equivalent to an average decline of 1.7 points per annum. At this rate, goal of 35 percent by 2015 is achievable. - Proportion of children under five suffering from hunger (insufficient weight): 14.4 percent (2005) to 10.64 percent (2009), equivalent to an average progress rate of approximately one point per annum. At this rate, goal of 7.8 percent is achievable. - MDG 2 — Universal primary education: - Net primary school enrollment rate: 86.8 percent (2005) to 89.3 percent (2011), equivalent to an average annual progress rate of 0.5 points; insufficient to reach 100 percent by 2015. - Adult literacy rate (persons 15-24 years): 80.4 percent (2005) to 83 percent (2011), equivalent to an average annual progress rate of 0.4 points; insufficient to reach the goal by 2015. - MDG 3 — Promote gender equality and empower women: - Ratio of girls to boys in primary education: 0.93 (2005) to 0.97 (2011), equivalent to an average annual gain of 0.04 points; at this rate the goal of 1 is achievable by 2015. - Lack of reliable statistics on female labor force participation in the non-agricultural sector. - Political representation: "Women now represent only 8.6 percent of parliament." - MDG 4 — Reduce child mortality: - Child mortality rate: 117 deaths per 1,000 live births (2005) to 118 deaths per 1,000 live births (2009); essentially constant; target of 55 deaths per 1,000 live births by 2015 not achievable at this rate. - Neo-natal mortality rate: 75 deaths per 1,000 live births (2005) to 76 deaths per 1,000 live births (2009); target of 33 deaths per 1,000 live births by 2015 will not be reached at this rate. - Government intends to improve accessibility and quality of child health services. - MDG 5 — Improve maternal health: - Maternal mortality: 781 deaths per 100,000 live births (2005) to 740 deaths per 100,000 live births (2008), equivalent to an average reduction of 14 points per annum; target of 390 deaths per 100,000 live births by 2015 will be difficult to achieve at this rate. - Births assisted by qualified personnel: 86 percent (2005) to 91.6 percent (2009), gain of 1.4 points per annum; at this rate the goal of 100 percent is achievable. - Government measures include provision of free Caesarian procedures and plans to intensify activities to improve maternal mortality rates. - MDG 6 — Combat HIV/AIDS, malaria, and other diseases: - HIV/AIDS prevalence: 4.2 percent (2003) to 3.2 percent (2009), equivalent to an average decline of 0.17 points per annum; goal of 2 percent by 2015 not achievable at this rate. - Gender and geographic disparities: women 4.1 percent vs men 2.1 percent (age 15-49); urban 3.3 percent vs rural 2.8 percent. - Higher prevalence in second poorest quintile: 3.7 percent; fifth richest quintile: 3.5 percent. - Lack of indicators describing coverage of persons living with HIV and malaria noted as a constraint to MDG achievement. - MDG 7 — Environmental sustainability: - Protected areas: more than one tenth of the national area (11 percent in 2010). - Forest area percentages: 65 percent (2008); 65.1 percent (1990); 64.6 percent (2002). - Target to reach 70 percent forest areas by 2015 described as potentially achievable. - Proportion of population using an improved source of drinking water is rising but with local disparities; negative trends observed in proportion using improved sanitary facilities. - MDG 8 — Global partnership for development: - Observation: tremendous financial resources required to reach the MDGs; domestic financing will be insufficient and external aid will be required. - Partnership objectives include: - control and reduce the unemployment rate among young persons, particularly in urban centers, - align revenue with the cost of living, - provide the least favored sectors with essential medicines, - reduce inequalities between men and women by promoting strategies for economic empowerment of women, - expand the use of information and communication technologies, and improve living conditions. ### Infrastructure context (relevance to inclusive development) - Roads and transport: - Congolese road system comprises 20,925 kilometers of roads, most in substantially poor repair. - Less than 10 percent (1,976 kilometers) are asphalted, including urban roadways. - Asphalting and rehabilitation programs intensified since the 2000s, with approximately 1,500 km of asphalting programs now in progress. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts)._ ### 548. Despite the efforts that have been made, substantial challenges remain to be met in the ### _cr12242 - 548. Despite the efforts that have been made, substantial challenges remain to be met in the ### Roads — progress, ongoing works, and remaining priorities - Progress to date: - Asphalted more than 100 kilometers, including road sections between Bouansa and Mouyondzi and Inoni Plateau-Imboulou Dam. - Built more than 150 linear meters of bridges (bridge over the Vouma River at Abeya on National Route 2 (Obouya-Owando); bridge over the Loémé River on the Pointe-Noire-Nzassi route). - Development of roadways for the cities: Brazzaville, Makoua, Ewo, Owando, and Ouesso. - Rehabilitation program: asphalted and unpaved roads covering more than 1,000 kilometers, nearly 400 of which have been completed on routes including Owando-Manga; Botanga-Niangué-Malala; Mapati-Zanaga; Dolisie-Londéla-Kayes; and Dongou-Boucy-Boucy. - Projects in progress: - Asphalting program: nearly 1,500 kilometers under construction on major routes including Obouya-Boundji-Okoyo-Border with Gabon; Owando-Makoua-Ouesso-Border with Cameroun; Pointe-Noire-Brazzaville; Makoua-Etoumbi; Sibiti-Mapati-Ibé (Zanaga); Boundji-Ewo; Oyo-Tchikapika-Tongo; and Bouansa-Mouyondzi. - Rehabilitation program continuing on sections including Ewo-Okoyo; Ewo-Palabaka; Etoumbi-Mbomo; Etoumbi-Kellé; Owando-Ngoko-Kenvouomo; Talas-Mbomo; Poueret-Mbomo-Katsoko-Isseyi-Okona; Issabi-Aboundji-Engwala; and Ingoumina-Kebarra. - Structural and regulatory gaps: - Remaining challenges include: (i) scope of deterioration; (ii) shortage of road maintenance; (iii) absence of structured road transportation companies; (iv) inadequacy of technical vehicle inspection organizations; and (v) insufficiency of road administration capacities. - Policy priorities: continue and complete projects in progress; emphasize maintenance and protection of existing road facilities as paramount. - Auxiliary infrastructure: - Establishment and rehabilitation works to upgrade bus stations have been carried out. - Need for substantial upgrading in road transportation regulation to address climate change, road safety, and enhanced security for road transportation documentation in the context of subregional integration. ### Rail transportation — investment outcomes and operational constraints - Investments and rehabilitation (CFCO program launched in 2007): - Rehabilitation of seven CC500 locomotives. - Rehabilitation of six BB700 locomotives. - Purchase of four new locomotives. - Treatment of 27 specific points on the overall rail system. - Construction of a bypass to avoid flood zones in the Kiélé area. - Operational performance and constraints: - Irregular traffic patterns and network service levels prevent optimal operating conditions. - Causes include ageing CFCO equipment and staff, and insufficient transportation and hauling equipment. - Service level issues: average speed of passenger trains is now estimated at 34 kilometers per hour due to constant risk of derailments. - Making the railroad system safe for passengers remains an important challenge in forthcoming years. ### Air transportation — modernization and next challenges - Upgrades and institutional changes: - Substantial rehabilitation and expansion investments for Brazzaville and Pointe-Noire international airports have modernized facilities, making them regional hubs. - Concessions issued for the Brazzaville, Pointe-Noire, and Ollombo airports. - Remaining challenges: - Need to maintain new facilities (infrastructures and equipment) and optimize profitability to serve as true transit platforms for subregional countries. - Current attendance rates for these airports are still low during the initial period; maintenance costs must be offset by future development (Special Economic Zones, industrial areas, and tourism). ### River transportation — navigability, port procedures, and constraints - Efforts and measured outcomes: - Marking: 1,050 kilometers in 2009 and 1,200 kilometers in 2010. - Dredging: 210,000 cubic meters in 2009 and 233,000 cubic meters in 2010. - Operational constraints: - Passenger arrival formalities at the Brazzaville port are lengthy: 45 minutes, as opposed to the average of 10 minutes according to international standards. - Navigability problems in certain Congo River tributaries have led timber transport to be detoured from northern Congo to Douala, Cameroon. - Insufficient investments to purchase handling equipment and develop docks and warehouses, and insufficient traffic organization are main subsector constraints. - Government intentions: - Intensify efforts to maintain riverways and rehabilitate river ports. - Facilitate flow of wood felled in Northern Congo and improve flow of inland fishing products. - Focus on facilitating trade traffic flows transported by river. ### Maritime transportation — Pointe-Noire port expansion - Pointe-Noire deepwater port under PAPN rehabilitation program: - Three storage warehouses have already been renovated. - Major renovation works in progress (access, networks, etc.) to further strengthen functionality and competitiveness and position the port as a regional hub. ### Cross-cutting infrastructure analysis and strategic focus - Planned analysis and review: - Subsectors will be examined for access implications for the public and service operators, impact on transaction costs and competitiveness, and regional cooperation benefits based on Congo’s corridor and border position. - Infrastructure development strategies are reviewed in Chapter 11, Section Three of the source paper. ### Energy — resources, capacity expansion, and challenges - Resource and capacity status: - Hydroelectric potential approximately 14,000 MW as surveyed; current exploitation just under 194 MW. - Capacity-building investments and projects: - Construction of gas-fired plants at Ndjeno (50 MW) and Côte Matève (300 MW). - Rehabilitation of transportation lines and related substations. - Rehabilitation of distribution networks for Brazzaville and Pointe-Noire. - Rehabilitation of the Imboulou hydroelectric plant (120 MW); use of Imboulou to intensify rural electrification and connect Ngo, Djambala, Gamboma, Ollombo, Oyo, Boundji, and Owando to the national electricity network. - Accelerated municipalization enabled certain departments (Likouala, Cuvette, and Cuvette Ouest) to establish electricity production and distribution facilities. - Remaining sector challenges (listed in source): - To continue the rehabilitation of the Brazzaville and Pointe-Noire distribution systems; - To continue construction of the energy boulevard intended to connect the northern and southern Congo and neighboring countries; - To connect all cities located near the boulevard to the national system; - To build new dams (Sounda, Kouembali, Chollet, Liouesso, etc.) to meet potentially increasing demand; - To improve the electricity coverage rate in rural areas with appropriate energy (solar, wind, and pico- et micro-hydroelectric plants); - To optimize management of services in the subsector through management and commercial decisions appropriate for the context. ### Water — access, investments, institutional reforms, and gaps - Access and sources: - Most of the population obtains supplies from artisanal wells (3.3 percent), rainwater (2.3 percent), and undeveloped springs and waterways (17.1 percent). - Sector performance and technical losses: - SNDE network is limited and obsolete, registering substantial technical losses (30.0 percent). - Investments and budgets: - Government budgets for water investments for the past three years: CFAF 27,144 billion in 2009; CFAF 25,430 billion in 2010; and CFAF 31,034 billion in 2011. - Projects implemented include: rehabilitation of the Djoué water treatment plant in Brazzaville; purchase and installation of compact drinking water production units; drinking water connections for outlying areas of Brazzaville; SAEP construction in Pointe-Noire; rehabilitation and expansion of distribution networks; rehabilitation of water production and storage infrastructures in department seats; construction of SAEPs; and borehole construction in rural localities. - Institutional progress and remaining gaps: - Establishment of the Water Sector Regulatory Agency (ORSE) and the National Rural Hydraulics Agency (ANHYR). - Persistent insufficient quality control for public water due to shortages in organizational, technological, and infrastructure resources; improving governance remains a major challenge. ### Hygiene and sanitation — service coverage and deteriorating indicators - Coverage and trends: - ECOM 2 reveals coverage with adequate individual sanitation facilities (flush toilets and improved ventilated latrines) remains insufficient. - Percentage of public sanitation tanks declined from 6.1 percent to 1.9 percent. - Percentage of households discharging waste in public or natural areas increased from 53.7 percent of households in 2005 to 60.0 percent in 2011. - Usage of sanitary facilities remains insufficient: households not using convenience facilities increased from 7.8 percent in 2005 to 9.0 percent in 2011. - One out of two households (52.4 percent) has adequate sanitary facilities, with covered latrines predominating (43.8 percent). - Infrastructure and planning gaps: - Leading cities lack updated master plans addressing waste collection and treatment, controlled public waste disposal systems, drains and sewers, and purification stations. - Shortage of appropriate solid and liquid waste treatment facilities; household waste disposal is a substantial problem for households and local public authorities. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 571. Only 10.6 percent of households use an appropriate wastewater removal system ### 571. Only 10.6 percent of households use an appropriate wastewater removal system ### Public health and sanitation findings - Only 10.6 percent of households use an appropriate wastewater removal system (sewer and drainage systems). - A substantial percentage of households dispose of wastewater in natural areas, courtyards, or in the street: 54.4 percent in 2005 and 83.2 percent in 2011. - The deterioration in wastewater disposal practices signals problems affecting public health and sanitation in urban agglomerations and calls for an urgent effort to rehabilitate public hygiene and sanitation systems. ### Infrastructure and service challenges - Rehabilitation, construction, or implementation of sustainable infrastructures for wastewater removal and improved collection and treatment of liquid, solid, and gaseous wastes are major challenges to improve public living conditions. ### Policy implication / priority - Urgent, sustained action is required to rehabilitate public hygiene and sanitation systems and to implement sustainable wastewater removal and comprehensive waste-collection and treatment solutions. --- ### Housing and urban development (Sections 572–575) ### Housing structure and ownership - 57.7 percent of all households own and live in single-family homes (survey result). - In 2005, 64.4 percent of households owned single-family houses. - Rural households: 83.4 percent live in single-family homes. - Urban tendency: 49.2 percent towards houses comprising several apartments. - Many properties in both urban and rural areas can be considered slums owing to informal construction. ### Government housing programs and outcomes - Property projects launched under urban renewal and densification include (Brazzaville) Jardins de Bacongo, Cité du Clairon, le Camp 15 août, Mpila, and Kintélé; (Pointe-Noire) Songolo Close; (Oyo) Alima Close; and (Kindamba) unspecified project. - These projects produced just under 400 dwellings in 2009 and 2010. - The supply of housing remains largely below expressed demand. - The Banque Congolaise de l'Habitat was established to accompany developers and households in purchasing homes, but results still fall far short of public requirements. ### Urban planning and constraints - In 2009 the government undertook property reform to service urban areas by establishing subdivisions before construction and reorganizing spontaneous neighborhoods. - Obstacles persist due to property problems and insufficient technical and institutional tools for urban management. - Some cities lack updated master plans for urban development: Brazzaville, Pointe-Noire, Dolisie, Nkayi, Ouesso, and Mossendjo; most recently-created urban communities have none. ### Policy priorities - Continue and accelerate the program to build low-cost housing. - Provide adequate financing mechanisms for home purchases, primarily targeting low-income sectors. - Strengthen technical and institutional urban management tools and update master plans for urban development. --- ### Post, telecommunications, and information and communication technologies (Sections 576–580) ### Postal services - The state rehabilitated and modernized post offices; more than 45 post offices have reopened. - The two postal checking centers (in Brazzaville and Pointe Noire) were partially rehabilitated and computerized. - Continued modernization of the postal service remains a major challenge. ### Telecommunications infrastructure and coverage - The government and mobile operators invested in heavy infrastructures as part of a national coverage program. - National coverage rate: 90 percent (100 percent in urban areas and 72 percent in rural areas). - Number of allocated fixed lines increased from 6,200 in 1997 to 15,000 in 2010, equivalent to an average annual rate of nearly 11 percent. - Pre-war level of fixed lines: 23,000. - Mobile telephone subscriptions increased dramatically due to competition among four companies. - Mobile telephone communication costs in Congo are among the lowest in Sub-Saharan Africa. - Ongoing challenge: maintain competitive advantage and attract new investors with communication-equipment requirements. ### Information and communication technologies (ICT) access and sector growth - Access to ICT remains limited to a small proportion of the population owing to excessive cost of supplies and services. - During 2009 and 2010: - Number of households having a computer estimated to have increased to 43 percent. - Number of Internet users per population of 100 increased to 40 percent. - Number of jobs created in the ICT sector increased to 43 percent. - The audiovisual sector faces enormous problems: obsolete production and distribution equipment; insufficiently qualified technical staff; and no statistical database. The sector has few operators and insufficient press enterprises. --- ### Status of infrastructures in Congo: key statistics (TABLE 17, Status in 2010) - Road surface density: 0.06 kilometers/square kilometers - Proportion of asphalt roads: 9.4 Percent - Proportion of road system in good condition: 32 Percent - Average passenger train speed: 34 Kilometer/hour - Volume of goods transported by train: 770.70 Thousands of tons - Number of international airports: 3 Units - Proportion of riverways marked: 16.5 Percent - PAPN ship usage rate: 35 Percent - Rate of access to electricity in urban areas: 45.0 Percent - Rate of access to electricity in rural areas: 5.6 Percent - Installed electricity: 171 MW - Rate of access to drinking water in urban areas: 40.0 Percent - Rate of access to sanitary facilities: 14.0 Percent - Stock of low-cost housing: 2,107 Units - Urbanization rate: 61.7 Percent - Fixed telephone penetration rate: 0.125 % - Mobile telephone penetration rate: 60.00 % - Internet coverage rate: 2.07 % - Number of public communication portals: 12 Unit --- ### Infrastructure gap, energy losses, and strategic implications (Section 581) - Despite Congo’s advantages, the country has a substantial infrastructure gap preventing emergence comparable to Malaysia, Morocco, and Tunisia. - The gap is more pronounced in transportation and energy sectors; Congo cannot sustain comparison with non-emerging countries such as Botswana or Cameroon. - More than three fourths of the electricity produced is lost (as against less than 10 percent in Cameroon). - By increasing efficiency in electricity transportation and distribution, the country could cover most of its current energy deficit without additional production efforts. - A massive, sustained investment effort in transportation infrastructures is required to supply electricity, which will directly and immediately impact enterprise production and competitiveness and performance in education and health sectors, and therefore the country's economic and social development. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpts provided).* ### 590. The aim is to reflect the various dimensions of the foregoing vision and megaprograms in ### _cr12242 - 590. The aim is to reflect the various dimensions of the foregoing vision and megaprograms in ### Objectives of the DSCERP (medium term 2012-2016) - Main objective: - Increase and support growth to create jobs and reduce monetary poverty with a view to reaching the Millennium Development Goals and fulfilling the expectations of the Congolese people. - Diversification and enhanced transformation of the Congolese economy targeting hydrocarbons; mining; the agroindustrial sector; and the construction and services sectors, including exported services, and particularly tourism. - Growth targets: - Sustained average overall growth rate of 7 to 8 percent during the period 2012-2016. - Non-petroleum sector growth target of approximately 9-10 percent. - Social objectives ("sharing of prosperity"): - Develop the social sector to improve living conditions and empower households to participate in production and consumption activities. - Strengthen essential services combined with income growth to improve public well-being. - Secondary objectives include enhanced performance in education (specifically universal primary and secondary education), health (including mother and child health), eradication of HIV/AIDS, and strengthening of social security. - MDG benchmark: - Achievement of the MDGs by 2015 is an important benchmark and has been incorporated into DSCERP sectoral targets, specifically: - (i) reduction of hunger and extreme poverty (growth overall and in food production); - (ii) universal primary education, reduction of infant and child mortality and of the incidence of HIV/AIDS (human resources and social development). ### Strategic governance objectives - Series of strategic objectives relating to governance: - (i) strengthening the democratic process, consolidating peace and preventing conflicts; - (ii) strengthening justice to protect and foster liberties, rights for the public and for transactors, and to fight corruption and impunity; - (iii) developing a modern public security and defense force that respects individuals and republican and democratic values, and that protects the public's liberties and property; - (iv) improving management of public administration and the economy to enhance efficiency in public interventions. ### Strategic pillars (program structure for 2012-2016) - Major strategic areas (pillars): - Governance: political, administrative, judiciary, security, and national defense, as well as economic and financial; - Economic diversification and growth; - Development of economic and social infrastructures; - Social development and inclusion; - Balanced, sustainable development. - Implementation: - These strategic objectives/pillars are addressed through programs and subprograms forming the basis for ministry and stakeholder action plans for 2012-2016. - Programs are described in Chapters 7-15 and linked to the macroeconomic framework and budget allocations under the medium-term expenditure framework in Chapter 15. ### Chapter 7: Strengthen governance — scope and aims - Governance dimensions covered: political, administrative, judiciary, economic and financial, security and national defense. - Good governance aims: - Transparent, responsible management of resources and clear decision-making procedures for public authorities and local governments. - Development of transparent political, administrative, and republican institutions and effective exercise of power to strengthen democracy and civic values. - Strengthen the rule of law and justice; prevent and fight corruption and official lawlessness. - Strengthen republican approach of defense and security forces, adapt to new forms of crime and delinquency, upgrade professional standing, and assume responsibilities tied to development. - Strengthen management of government, the economy, and financial affairs to empower transactors and facilitate participation in economic and social development. ### Political governance — promote an inclusive democracy - Context and goals: - Address participatory democracy deficit and reconcile universal democratic values with African solidarity. - Engage in concerted public affairs management to avoid concentrated gains and concentrated losses among beneficiaries/losers. - Foundations for a state under the rule of law: - (i) participatory democracy, (ii) social cohesion, (iii) decentralization, (iv) regional and international cooperation, (v) prevention of conflicts to consolidate peace. ### Strengthen participatory democracy — objectives and subprograms - Adopted objectives: - (i) strengthen constitutional institutions to fully assume intended functions; - (ii) consolidate the electoral system to guarantee integrity, equity, and transparency of results; - (iii) develop public participation by strengthening civil society organizations and the media; - (iv) improve Congo's international image and standing in democracy and good governance. - Strengthen constitutional institutions: - Strengthen political parties, status of the opposition, quality of political competition. - Enhance parliamentary institutions: representativeness, accountability, independence, autonomy, capacity building for policy assessment and budget oversight. - Political party support: - Pursue financing to ensure greater territorial access and support seasonal political activities. - Implement performance-based subsidization for political and citizens' education; promote better representation for young people and women; require financial reporting. - Consolidate the electoral system: - Legislation reform and capacity building for players and institutions to build credibility. - Strengthen financial autonomy of political institutions via appropriate budget mechanisms, budget streamlining for electoral consultations, and improve integrity, impartiality, and independence of the electoral agency. - Emphasize updating the electoral roll and statistics and strengthen capacities of the Constitutional Court. - Develop citizens' participation: - Prepare an operational program to involve civil society in public affairs management and promote demand for democracy. - Subprograms: - (i) building capacities and autonomy of the media and representative organizations of civil society; - (ii) expansion of forums for dialog and consultation between nonstate players and public authorities; - (iii) participatory monitoring of public authorities and intensification of budget tracking while undertaking vast works to build social services and infrastructures; - (iv) advanced institutionalization of participatory approach in DSCERP implementation with involvement of young people, women, grassroots communities, and unions. ### Promote international and regional cooperation - Objectives: - Promote regional integration beyond CEEAC and CEMAC, leveraging Congo’s position as a corridor between central, east, and southern Africa. - Diplomatic and cooperation actions: - (i) modernize and rationalize the diplomatic system and expand the diplomatic charter; - (ii) contribute to acceleration of subregional integration processes; - (iii) undertake diplomacy in support of development; - (iv) strengthen cooperation and good neighbor relations. - Performance-based diplomatic priorities: - (i) open new diplomatic missions to emerging countries to enhance South-South cooperation; - (ii) restructure diplomatic missions to attract foreign direct investment using a win-win approach; - (iii) ease legal and tax constraints to benefit the diaspora and involve them in development; - (iv) improve coverage and assistance for Congolese nationals abroad. - Resource mobilization: - Approach technical and financial partners according to the five principles of the Paris declaration on public aid for development. ### Promote decentralization and participatory local development - Rationale: - Decentralization is a pillar of good governance at the local level to bring the state and public services closer to citizens and enhance accountability and efficacy. - Subprograms: - (i) promotion of integrated local development — develop local economic activities and provide essential services in social sectors and infrastructures; - (ii) promotion of grassroots democracy — foster public involvement in local governance and decisions affecting living conditions. - Priorities for local governance: - (i) improve institutional and regulatory framework for decentralization; - (ii) strengthen management capacities in local governments by providing territorial civil service with specialized professionals and required infrastructures and equipment; - (iii) promote community mechanisms such as parents' associations, management committees for drinking water wells, mutual health associations. - National program for local development: - Incorporate measures into a national program with support from technical and financial partners; pilot tests already conducted in Plateaux and Kouilou. - Expansion requires capacity building for local planning, execution, and monitoring to make territories more attractive. - Grassroots democracy measures: - (i) define rules governing local elected officials; - (ii) ensure regular renewal of management and representation authorities for local units to avoid “feudal” systems; - (iii) ensure neutrality of devolved governments, the state, and traditional authorities during local electoral consultations; - (iv) strengthen involvement of civil society organizations in local management; - (v) develop social communications at the local level. - Local elections and responsibilities: - Mayors should be directly elected by the people and be responsible for management of resources for program implementation and accountable to the public and central government. - Process includes conversion of urban communities into municipalities and establishment of relevant municipal councils. ### Strengthen justice, fight impunity, and accelerate modernization of justice - Constitutional and human rights context: - Preamble to the Congolese Constitution of January 20, 2002 affirms Congo is a state subject to the rule of law. - Title 2 guarantees fundamental liberties and rights. - Judiciary power is the guardian of citizens' rights and liberties. - Fight against corruption: - Corruption identified as the most serious governance vice; prevention and repression are primary benchmarks of government commitment to good governance. - Commitments to consolidate rule of law: - (i) accelerate process of modernizing justice; - (ii) provide greater protection and promotion of human rights; - (iii) intensify fight against corruption and impunity. - Modernization guidelines: - (i) increase efficacy of justice; - (ii) make law and justice more accessible; - (iii) strengthen credibility of justice; - (iv) make incarceration conditions more humane; - (v) strengthen participation of nonstate players in development of the justice sector. - Legal and organizational actions: - Ensure the new organic framework for the Ministry of Justice and Human rights is fully operational. - Continue juridical and judiciary reform launched with the national commission for the revision of codes, tasked with adapting the national juridical and judiciary framework to current justice requirements, enforcement of decisions, and international standards, specifically priority for implementation of the system of the Organization for the Harmonisation of Business Law in Africa (OHADA). *National Development Plan CONGO DSCERP 2012-2016* ### 624. Modernization of infrastructures is being pursued gradually with the aim of ### _cr12242 - 624. Modernization of infrastructures is being pursued gradually with the aim of ### Modernization of judiciary and penitentiary infrastructures - Modernization is being pursued gradually to coordinate the establishment of judiciary coverage with the administrative map of the territory and the rehabilitation and establishment of new penitentiary institutions. - The movement will be intensified with recourse to grassroots justice through regular open hearings and the institution of conciliation and police courts; as well as appropriate recourse to the judiciary assistance mechanism. - Special emphasis will be placed on improving the system of archives, documentation, and computerization of judiciary and penitentiary services. ### Human resource development in justice and penitentiary services - Human resource development will cover training, reinforcement, and motivation of judiciary staff to affirm their competence, specifically in new business contentious matters and international or environmental contentious matters. - The government intends to create a specialized penitentiary administration agency to reconcile their mission of security with the duty of social reintegration and respect for the dignity of the prisoners. - Programs will be implemented to build capacities in the areas of budget management, planning, programming, monitoring and evaluation, and statistics management. ### Participation of nonstate players and prisoners’ reintegration - Participation of nonstate players will be intensified through: - implementation of a support fund for initiatives by civil society organizations; - redefinition of the legal and institutional framework for private sector operations to create a permanent forum for dialog and consultation to strengthen judicial security for investments; - implementation of mechanisms for prisoners to organize and maintain family or community ties to better prepare them for reintegration into society or for rehabilitation. ### Promote human rights - Congo has incorporated major international and regional texts on human rights into its domestic legislation. - Legal protection for two vulnerable groups has been enacted through: - promulgation of the Law of June 14 on protection of children; - promulgation of the Law of February 25, 2011 in respect of the promotion and protection of the rights of indigenous populations. - The government undertakes to consolidate these dynamics through: - promotion of the knowledge and culture of human rights via human rights education operations, capacity building for the national commission on human rights and its departmental directorates, and intensification of human rights information and awareness campaigns; - protection of human dignity in prisons through improved management and oversight of penitentiaries, improved living conditions for prisoners, and promotion of justice for children. ### Intensify the fight against corruption and impunity - Institutional system to fight corruption and impunity includes: - the national commission to fight corruption, fraud, and misappropriation of public funds; - the national anti-corruption observatory; - ministerial units to fight corruption. - The government has not sufficiently supported the activities of the national entities, acknowledging a proliferation of such institutions along with a dilution of their efficacy. - The government intends to support these organizations more effectively and to rectify the national strategy by: - conducting a prior study to identify the phenomenon of corruption: "active" corruption and "passive" corruption (giving and acceptance of bribes); - implementing codes of ethics and professional conduct within the administration and in public contracting and services; - implementing specific mechanisms such as mandatory accountability, declaration of property and assets, and protection for whistleblowers. - Law enforcement intentions include: - criminal justice reform to reduce the discretionary principle in criminal proceedings; - substantially improved financial information to more effectively fight cross-border organized crime; - strengthening of the system of national integrity, including rewarding merit and excellence. ### Strengthen national defense and security in support of democracy - The defense and security system has shifted focus towards managing new threats: emergence of armed groups, illegal light and small-caliber weapons trafficking, large-scale banditry, religious fanaticism and fundamentalism, transnational crime, armed conflicts in neighboring countries, and destabilizing influences from other countries. - Government adopted two approaches to upgrade professional status of armed forces and police and their role in economic and social development. ### Upgrade the professional status of the armed forces and police - A military programming law has been prepared to use a multiyear horizon to define activities to strengthen intervention capacities of the armed forces and police. - Staff objectives include: - adapt training to requirements in connection with new threats; - optimize the work force to reflect the missions to be carried out; - strengthen the role of the police in execution of laws and regulations to better ensure security at the grass roots level; - take due account of factors related to military status in personnel management; - improve discipline and the attitude of defending republican institutions within all corps of the armed forces and police; - take due account of merit, excellence, and gender issues in promotions and access to responsibilities; - intensify HIV diagnostics; - take exemplary law enforcement action to fight acts against public assets; - take enforcement action against sexual violence. - Infrastructures and facilities priorities: - build administrative and barracks infrastructures to improve working and living conditions; - increase operational capacities of the armies and service support through the procurement of appropriate, effective equipment; - improve and strengthen resources to project and protect the national land, air, and maritime spaces; - equip units with powerful computer and communication systems. - Authorities will strengthen financial management and planning by adopting the performance-based management framework and target-based program budgeting under the medium-term expenditure framework approach. ### Involve the armed forces and police in poverty reduction - The opening of the National Regional School of Engineering and Works (ENVR) will enable defense and security personnel to participate in: - disenclosure of the territory, specifically in construction and public works; - mechanization of farming; - industrialization; - computer, hydraulic, and energy engineering. - Government development tasks include: - territorial disenclosure aligned with accelerated municipalization and balanced development policy; - mechanization of farming to increase productivity; - gradual industrialization to cover essential equipment requirements; - computer engineering; - hydraulic engineering; - construction and public works; - energy engineering. - To fight idleness among young persons and encourage citizen participation, the government will experiment with appropriate forms of conscription and civic service as a partial solution to retraining staff. ### Governance and the quality of economic policies - To eliminate dependence on petroleum and achieve economic diversification, emergence of sectors with comparative advantages is required. - Strengthened economic governance requires: - a clear strategic vision and integrated priority sectoral programs and activities (strategic planning); - macroeconomic and financial management compatible with expectations yet prudent enough for medium-term macroeconomic stability and aligned budget management with emergence program priorities; - a high-quality investment program that promotes economic and social development and is effectively executed to maximize impact; - a technical institutional system involved in execution of activities and in monitoring accomplishments and results. - The government must devote more attention to accompaniment of the private sector and adopt creative mechanisms to finance investments. ### Improve the tax system and mobilize domestic revenue - Level of Congolese public revenue is still low for financing economic emergence and growth. - Essential to increase domestic revenue to avoid financing development with external financing that is often difficult to forecast, insufficient, and volatile. - Mobilization of revenue requires measures to expand the tax base and will involve: - modernization of the financial administrations; - strengthening of the competence of human resources, legal and regulatory texts; - simplification of tax procedures and instruments; - generalized use of information and communication technologies within the financial administrations. ### Contain current expenditure and prioritize spending - Government objective: enhance effectiveness of expenditure to ensure broader credibility in budget policy and to conduct contra-cyclical budget policy when required to sustain economic growth. - Emphasis on rationalization of transfers to state enterprises that are running deficits and not performing so more expenditure can be earmarked to growth engine sectors: water, electricity, roads for general use and agricultural service, and social sectors (health, education, social security, etc.). ### Promote public investment and investment quality - Public investment is a key instrument for establishing a competitive environment, stimulating private investment, and supporting economic and social growth. - Government measures to strengthen public investments: - approve in the state budget only projects first subject to pre-feasibility or feasibility studies; - implement all reforms under the plan to improve public expenditure (PAAGIP) to enhance the quality of investments. - Evaluation process: ensure all projects are subject to feasibility studies and tendering processes required in accordance with the public contracting code, coordinated by authorities involved in public contracting. - Capital expenditure will be financed to reflect constraints of domestic financing capacities and may be cofinanced with external resources mobilized under concessional terms. ### Strengthen budget control - Budget control is necessary for sound fiscal management. - Government intends to give new impetus to internal supervision structures and include networking of external supervision bodies for fiscal management, specifically the audit and budget discipline office, parliament, and various public policy monitoring and evaluation bodies in the framework of the anticorruption law. ### Strengthen strategic and operational planning - Economic emergence strategy requires strategic and operational planning focused on achieving clearly targeted results. - Implementation of performance-based management instruments in the context of strengthened strategic planning organized on the basis of the DSCERP and other national development documents. - The DSCERP constitutes the reference framework for public programs and policies and operations of technical and financial partners, aligned with national priorities under the Paris Declaration and underpinning budget orientations through state budget programming and execution. - Government will ensure generalized use of the sectoral priority action plan/medium-term expenditure frameworks (PAP/MTEF) and establish a new organic framework to organize administrations to reflect pillars, objectives, and strategic missions as defined in the DSCERP, PAPs, and MTEFs. - Aim to move toward target-based planning and budgeting for programs and to strengthen the status of program directors, planning and research directors, and departmental directors. - Continuous program to build human and institutional capacities is deemed very important, with special emphasis on reinforcing the statistics system and ministerial statistics units. - In the long term, the MTEF/PAP approach should become standard operating procedures for all administrations. ### Strengthen administrative and human resource management - Civil service reform objectives: - promote a new administrative culture for development; - establish a modern, effective administration; - foster the emergence of a new type of civil servant; - promote good governance and ethics within government services; - prepare an inter-ministerial directory of civil service professions for rational recruitment management. ### Policy to finance growth and private credit - Limited access to credit is a major obstacle to business development for Congolese enterprises, particularly small and medium-scale enterprises, and to economic growth. - Authorities implemented a financial sector reform strategy prepared with assistance from IMF staff to stimulate growth in credit to the private sector. - The strategy provides a roadmap and schedule of measures, executed in consultation with the private sector, concentrating on promoting better access to credit for small enterprises and households by encouraging competition, eliminating interest rate ceilings, and ensuring that the credit supply is more transparent. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpt).* ### 656. Following the completion point for the enhanced Heavily Indebted Poor Countries ### 656. Following the completion point for the enhanced Heavily Indebted Poor Countries (HIPC) Initiative ### Post-HIPC indebtedness policy and financing stance - The government has undertaken to conduct a prudent indebtedness policy following the completion point for the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. - Financing development will be pursued primarily based on the government's own resources. - The government will seek grants and external assistance only with concessional terms. ### Improve property affairs management - The government intends to control property affairs management in connection with the state reform, with activities to include: - (i) regulation of ownership duality; - (ii) strengthening of institutional capacities in the sector; - (iii) establishment of property reserves to benefit real property developers; and - (iv) facilitation of access to serviced plots of land. ### *National Development Plan — CHAPTER 8. DIVERSIFY THE ECONOMY TO ACCELERATE GROWTH* - Economic diversification is identified as the key to absorbing external shocks, notably petroleum price fluctuations, and to reduce growth volatility. - Diversification combined with greater competitiveness aims to produce more robust, higher-quality growth, broader income distribution, and poverty reduction. ### Rationale and objectives for diversification - Sound competitiveness and sustained growth foster structural economic transformation (example drawn from 13 developing countries that registered sustained growth over 25 years). - Expected outcomes of diversification: - Strengthened economic fabric and intersectoral interactions. - Generation of remunerative jobs and higher income for wage-earners and entrepreneurs. - Sustained higher growth rate that is more broadly distributed, increasing income and reducing monetary poverty. - Diversification strategy goals: - Intra-sectoral consolidation (e.g., agriculture with industries and commercial services). - Intersectoral transformation from primary-sector economy (agriculture, mining, forestry) to industries and commercial services. - Movement of economic players from informal to formal sector. ### Three levels of coordinated actions required - (i) Direct actions and strategies to stimulate growth sectors: agriculture, forestry, and services. - (ii) Public investments to strengthen infrastructures and human resources to reduce factor costs and improve competitiveness. - (iii) Strategies and activities to support economic players (farmers and private sector) to improve business and investment climate. ### Three major categories of diversification strategies - (i) Sector support strategies (cluster approach) to develop production sectors and stimulate conversions from primary to secondary and tertiary sectors. - (ii) Player support strategies focused on private transactors and the business climate. - (iii) Market-strengthening and liberalization strategies to facilitate domestic, regional, and international trade flows alongside institutional and infrastructure support. ### Comparative advantages and priority sectors - Congo’s physical geography (soil types, hydrography, rainfall patterns, vegetation) makes the following potential engines for diversification: - Farming, stock breeding, fishing, agro-industry, forestry, wood processing industries, and commercial services. - Comparative advantage analyses indicate relative competitiveness in: - Agriculture, stock breeding, wood production, mining, construction, and tourism. - Competitiveness can be strengthened via integrated policies on human resources, support infrastructures, regional integration, and cluster-based activity support. ### 8.1. Cluster-based diversification strategy — concept and rationale - Definition: A cluster is a group of enterprises and institutions in different areas of a sector, with lead subsectors, support activities, and basic economic infrastructures, covering primary, secondary, and tertiary activity sequences. - Advantages of cluster approach: - Organizes and facilitates choices of economic diversification and transformation. - Facilitates coordination among public and private actors and across ministries. - Avoids compartmentalization inherent in conventional sectoral strategies that can omit upstream, downstream, and support activities, leading to bottlenecks. ### Clusters envisaged by Congo - The government bases its industrialization strategy on seven clusters: - (i) agriculture and the agrofood chain; - (ii) forestry and wood processing and marketing industries; - (iii) petroleum and hydrocarbons; - (iv) mining; - (v) construction and construction materials; - (vi) tourism and hospitality; and - (vii) financial services. ### Special Economic Zones (SEZ) aligned with clusters - The diversification strategy includes development of clusters and creation of Special Economic Zones. Four SEZs envisaged: - The Pointe-Noire Special Economic Zone on the coast earmarked for petrochemical, iron and steel, and mining activities; - The Brazzaville Special Economic Zone encompassing transportation and services (finance, trade, and hospitality); - The two-center Oyo-Ollombo Special Economic Zone devoted to agrofood, service, transportation and food agriculture activity; - The Ouesso Special Economic Zone devoted to agriculture, forestry, mining, and ecotourism. ### Implementation approach for each cluster - For each cluster the plan presents: - Market outlook; - Congo’s advantages; - Mapping of key players and main products in the subsector; - Key strategic pillars, framework programs, and key projects to develop the cluster and enhance its contribution to growth, employment, and state resources. ### 8.1.1 Petroleum and hydrocarbons cluster — overview and players - PLAYERS: NINE CONSORTIA EXPLORING 15 PERMITS AND 36 FIELDS - Cluster structure: - (i) Upstream: exploration, development, and production for crude oil and gas; - (ii) Midstream: transportation, storage, and trading; - (iii) Downstream: refining and distribution activities. - TABLE 18. LIST OF KEY PETROLEUM OPERATORS (as presented) - No. 1 Total Exportation-Production4 Congo Rep - No. 2 ENI Congo - No. 3 Murphy W.A. Ltd. - No. 4 CMS Nomeco - No. 5 Perenco - No. 6 SNPC - No. 7 AOGC - No. 8 Prest-Oil - No. 9 SNPC - Exploration and production activity details: - Exploration activities involve 16 companies (or consortia) operating with approximately 12 permits, including SNPC, Total, ENI, Perenco, Murphy, Congo Rep, Prest Oil, CMS Nomeco, Maurel Prom, Chevron, SOCO, Pilatus, ADECO, Premier, Wing Wah Congo, and Cliveden. - Exploitation covers 36 fields, primarily operated by the exploration companies listed above. - The cluster lead includes seven petroleum testing and inspection companies involved in downstream activities: - Schlumberger, SGS, ITS, Q&Q Controle Services, Bureau Veritas, Cete Apave, and Cotecna. - Downstream operations and service companies include: - Refineries: CORAF; - Light petroleum gas (LPG) distribution: GPL SA; - Transportation and storage: GPL SA, SCLOG, ILOGS, etc.; - Trading companies: SNPC, Orion; - Fuel distribution companies: Total Congo, Puma Energy, X-Oil, Afric (AOGC), Hydro-Distribution (SNPC, OMEGA EC); - Storage companies: Puma Energy. ### Strengths and production outlook for hydrocarbons - Strengths: - Congo has substantial crude oil reserves and modest gas reserves. - Relative competitiveness in exploration and exploitation costs, which could improve with subsector reforms and investments in capacity rationalization and production methods. - The subsector can be a driving force for national emergence, contributing to national wealth, job creation, and public development financing. - Crude Oil: 40 more years of production at the current rate - Reserves are considered approximately equivalent to 40 years of production at the current rate. - After a sharp decline in 2007, production has steadily increased due to starts in new fields (Azurite and Moho-Bilondo) and stimulation of mature and marginal fields. - At the current rate of production, the potential would permit at least 40 years of exploitation and related activities. - Outlook for future discoveries is encouraging given the scale of exploration investments and favorable natural conditions. - The outlook for growth in petroleum production activities is generally good, with substantial impacts on GDP and state revenue. *Source: _cr12242 - 656. Following the completion point for the enhanced Heavily Indebted Poor Countries (HIPC) Initiative* ### 678. Until recently, gas associated with crude oil was simply torched (burned) or sold ### _cr12242 - 678. Until recently, gas associated with crude oil was simply torched (burned) or sold ### Gas development and reserves - Regulatory change: torching banned as of April 1, 2012 to stimulate prices for and optimize gas. - Expected value-chain expansion: transportation (gas pipeline) and sales (trading) for processing plants: electricity, fertilizer, metallurgy, etc. - Strategic importance: the "Gas" cluster will develop rapidly and entails substantial potential to contribute to Congo's industrialization and development. - Reserve estimates and timeline: - Domestic requirements: approximately 73 billion cubic meters for the next 20 years. - Proven reserves at current rate of exploitation should allow approximately 20 years of production. - Nkossa deposits: 60 billion cubic meters (gas injected into Nkossa deposits expected to be exploitable beginning in 2027) could play a key role in supply. - Potential uses with a national development strategy: electricity production, petrochemicals, light metallurgy. ### Petroleum taxation and fiscal outcomes - General assessment: Congo's petroleum exploitation is quite profitable as a result of an effective taxation system. - Production sharing agreements: guarantee Congo a share of national wealth exceeding 30 percent of total petroleum revenue. - Recent outcome: petroleum revenue share has recently even exceeded 58 percent. - Comparative position: places Congo at the world average and ranks Congo among the best remunerated countries in the region. ### Refining, trading, storage and distribution - State trading: trading activity involves only the sale of the state's share in hydrocarbon production and is incumbent on the national oil company, the SNPC. - Refining (CORAF) capacity and coverage: - CORAF operating at 70 percent of capacity. - CORAF covers only 70 percent of the country's requirements for petroleum products (all products combined, with the exception of asphalt). - Result: Congo imports approximately one third of its petroleum product consumption. - CORAF modernization strategy: - Objective: strengthen CORAF and modernize equipment to improve capacity use and meet domestic market demand; exporting not currently feasible due to scale and competitiveness issues. - Planned units/works: - Unblocking of the hydrocracking and main hydrorefining plants that might be required. - A liquid petroleum gas (LPG) extraction unit for petrochemicals and mining. - A 50,000 ton per year bitumen unit and visbreaker. - Government will study the option of building a new refinery dedicated to export production. - Storage capacities and targets: - SCLOG's storage capacities: 80,000 cubic meters. - Current coverage: represents only 22 days of consumption for Brazzaville and 25 days for Pointe Noire. - Projection: storage capacities estimated to fall below one day of consumption for these areas by 2014. - Government program: vast investment program to double storage capacities so that an initial stock of at least 30 days can be established for Brazzaville and Pointe Noire, and subsequently to increase reserve stock to 30 days by 2014, with the ultimate aim of reaching the average international standard reserve stock of 90 days. - Distribution gaps and 2016 targets: - Territorial coverage insufficient; lacks transportation and storage infrastructure. - Government strategy to create by horizon 2016: - Service stations along the roads and highways; - Petroleum product storage warehouses at all airports and ports; - New filling centers in the interior to make butane accessible to households in the departments; - Strategic warehouses (fuel depots and filling centers) to service neighboring countries. ### Support activities and local content - Current market structure: substantial number of operators (suppliers and subcontractors), predominantly expatriate. - Representative categories and examples: - Suppliers of inputs (plastics, pipes, gas, and lubricants): EXA International, Congo CEAN. - Labor suppliers including labor placement companies for drilling platforms and exploration sites (on-shore). - Engineering companies and service providers in new technologies (hardware and software): Georex Congo, PFI, Upstream, African Energy, Gulf Oil & Gas, Sys+Net, CIM, IAD, and ARD. - Builders and suppliers of infrastructures or specialized services: CSCEC, Baker Hughes, FORSPAC, SENIG, Halliburton. - Logistics service providers (handling, helicopters, and platform services). - Assessment of Congolese participation: - Congolese players are insufficiently represented in the chain of support activities. - Causes: specialized technological requirements (highly specialized personnel and equipment) and absence of a government "domestic content" strategy. - Policy recommendation: - Implement a long-term domestic content strategy to attract and sustain Congolese nationals in the subsector to increase contribution to national wealth, employment, and poverty reduction. - Government intends to involve Congolese nationals through development of joint ventures and phased strategies encouraging national participation in support and subcontracting activities. - Employment potential: dependent on government willingness and effectiveness in implementing a "domestic content strategy"; such a strategy could have more rapid and substantial impacts than capital- and technology-intensive exploration, exploitation, and refining. ### Basic economic services, infrastructure, and human resources - Required infrastructures for hydrocarbons: means of transportation, roads, river and maritime ports, railroads, oil pipelines, gas pipelines, electricity and water systems. - Historical note: infrastructures required for research, exploration, and production were executed by operators rather than by the state. - Economically advisable projects: construction of an oil pipeline and a gas pipeline between Pointe-Noire and Brazzaville. - Past state investments: international airport and deepwater port of Pointe-Noire, upgrading of Chemin de Fer Congo Océan (CFCO) railroad. - Human resources and support services weaknesses: - Qualitative weakness in Congolese human resources and public and private support services. - Retirement of many technicians and lack of available technical resources. - Relevant institutions and needs: - Public agencies: Ministry of Hydrocarbons, Downstream Petroleum Regulatory Agency, SNPC. - Education and training: Université Marien N'Gouabi and professional training centers to provide technical experts, engineers, and specialized professionals (legal experts and economists specializing in petroleum, engineers, geological technicians, geophysicists, petroleum technicians for drilling and deposit management), and computer and automation specialists. - Audit, accounting, and management consulting firms: Next / Schlumberger, Deloitte, CAC. - Policy action: - Implement a public-private partnership with sector transactors to facilitate recruitment and training efforts, including engagement of the Congolese expatriate community. - Strengthen training centers' human and material resources and strategic management capacities with sustained support. ### Sector governance, legal framework, and environmental management - Core governance concern: strengthening capacities of human resources in regulatory and state agencies to anticipate and address sector changes. - Legal and transparency reforms: - Drafting of a new Hydrocarbons Code to adapt the current legal framework. - Need for transparency in petroleum resource management (information on reserves, crude oil production and marketing, etc.), monitoring and control of production and marketing of crude oil by the state. - Absence of a system to manage adverse effects of petroleum activities on the natural environment and health conditions identified as a gap. - Institutional capacity needs: - Public agencies must acquire competent, regularly retrained personnel. - Training centers and professional associations require strengthening to address technological and environmental stakes. - Strengthening subsector governance: rationalize state operations and support into three missions: - (i) sector planning activities; - (ii) sector regulation activities; - (iii) marketing activities for production accruing to the state. - Strategic planning: Ministry prepared a priority action plan; a sectoral policy letter and a strategic plan for hydrocarbons development will be finalized to clarify major programs, guidelines, objectives, and financing strategies. ### Key strategies, programs, and projects (strategic pillars and priority projects) - Strategic pillars guiding medium-term programs: - Cluster leads: resumption of petroleum, gas, and petroleum product production. - Support sectors: accompaniment of support activities, improvement of their national content, and optimization of state revenue. - Infrastructures and other production factors: development of infrastructures, human resources, and public services to support management of the subsector. - Pillar 1 — Direct activities (resumption of production): - Private sector envisages substantial investments to resume petroleum and gas production. - Key private projects: - Development of crude oil production at Moho Bilondo (Total EP Congo): Total EP plans to invest US$10 billion to develop Moho Bilondo Nord, which in 4-7 years will enable a substantial increase over current production levels. - Oil sand production (ENI Congo): estimated output of 40,000 barrels per day. - Gas production and gas and electricity service for mining industries (ENI). - Pillar 1 — Increased refining and storage capacities: - CORAF operating at 70 percent of capacity and covering approximately 70 percent of domestic demand. - Strategy to modernize CORAF, unblock units, add LPG extraction, add a 50,000 ton per year bitumen unit and visbreaker; study a new export refinery. - Storage program to double capacities and reach at least 30 days initial stock for Brazzaville and Pointe Noire, increase to 30 days by 2014, and aim for 90 days international standard. - Pillar 2 — Support activities: - List of support activity categories and representative firms (see Support activities and local content section). - Government intent to involve Congolese nationals via joint ventures and phased support to build capacities. - Pillar 3 — Infrastructures and production factors: - Strengthen transportation, energy, and water supply as indirect support for the subsector. - Implement integrated national infrastructure strategy described in Chapter 11 on infrastructures. - Government commitment to facilitate recovery and expansion through institutional reforms, human resource strengthening, and infrastructure improvements. - Institutional reforms and legal instruments: - Adoption of a new Petroleum Code to overhaul petroleum taxation and optimize capitalization of petroleum revenue; promulgation of implementing texts to control petroleum costs and monitor operations. - Drafting of a Gas Code to organize gas development activities and strengthen local content; instruments to specify delivery points, availabilities, quantities, prices, specifications, and ownership of transportation and processing means. - Local industry development measures: - Encourage and sustain emergence of small and medium-scale enterprises, finance microprojects, and support cooperative initiatives using petroleum-sector resources. *Italic: IMF — National Development Plan CONGO DSCERP 2012-2016 (excerpts provided in content unit)* ### 711. Sector regulation involves establishment of clear rules for competition, as well as the ### Sector regulation involves establishment of clear rules for competition, as well as the ### Sector regulation and marketing - Sector regulation: establish clear rules for competition and operating mechanisms for the sector based on the hydrocarbons code and its implementing texts. - Marketing: place the state's shares of petroleum and petroleum derivatives, and national stakes in operating activities, on the market. - Government program: strengthen the SNPC—the marketing agency for the state’s share. - CORAF pricing: require clarification and formalization of the sale price to be applied by CORAF to enable it to balance its accounts while applying a pump price that is "accessible" to the public. ### Capacity building, training, and local content - Priority: large-scale capacity building and training leading to qualifications for professionals and technical specialists in petroleum, gas, mining, and other sectors where growth clusters may develop. - Government commitment: develop a wide-ranging training program to fill numerous qualified labor gaps identified in sectoral surveys. - Employer engagement: involve key employment-generating operators and adopt specific incentive measures for recruitment of interns. - On-the-job training: encourage on-the-job training leading to qualifications to enrich local content and accelerate Congo’s modernization and industrialization process. ### Environmental protection and resource governance - Sovereign role: state will exercise sovereign power to rationalize choices to reconcile operators' interests and national interests to increase wealth while protecting the environment and natural resources. - Environmental impact assessments: Environmental impact studies will be required before any project is carried out. ### Major projects, reserves, and investment projections - Moho Bilondo Nord Project: Total assesses the investment required to develop the Moho Bilondo Nord oil field at US$10 billion (€7 billion). - Projected key investments: total projected investment amounts to at least US$18.026 billion, including: - US$10 billion for the Moho Bilondo oilfield; - balance for ENI projects to build thermal power plants and extract oil from oil sand. - ENI oil sand project: planned for 2014 (if executed). - Moho Bilondo production target: reach a fully operational level of at least 250,000 barrels per day. - Macroeconomic simulation result: such growth in petroleum production can be expected to lead to a growth increase in the overall petroleum sector of approximately five points, and average annual GDP growth of 1.3 points. ### Reserves and sector totals (selected figures as presented) - Total, Gas: 130 (units as presented), 4,590 (units as presented), 117 (units as presented). - Total, Hydro-carbons: 939 (units as presented). - Subtotal, Proven and developed (Associated gas): 6,000; 0.954 (other line entries as presented). - Subtotal, Proven and undeveloped (Associated gas): 23; 813; 21. - Subtotal, Fields in production: 32; 1,130; 29. - Subtotal, Unexploited natural gas: 41; 1,447; 37. - Total, Gas (repeated): 130; 4,590; 117. - Source for reserves table: ST/DSCERP, international development consulting, data from the Ministries of Mining and Hydrocarbons, and the private sector. ### Employment impacts - Job creation estimate: development and support sectors will contribute to the creation of more than 3,500 jobs, approximately two thirds of which will derive from direct activity in the sector. ### State revenue and fiscal figures - Reported annual average revenue deriving from the hydrocarbons sector: US$12.936 billion. - Government share: approximately 55 percent reportedly accrues to the Congolese government in various forms (production sharing and taxes). - Equivalent to CFAF 3,289 billion corresponding to a price of US$90/barrel based on an exchange rate of CFAF 500 = US$1.00. ### Investment, output, jobs, and revenue (selected table figures) - Total, Crude (Subtotal, Misc., Total): - Investment: 10,000 (millions of US$) - Direct jobs: 2,200 - Secondary jobs: 900 - 2012 Output (barrels per day): 167,197 - 2012 Output (tons per year): 8,402,863 - ENI (oil sand) Tchikatanga-Makola: - Investment: 2,000 (millions of US$) - 2012 Output (barrels per day): 40,000 - 2012 Output (tons per year): 2,000,000 - TOTAL, GAS (selected consolidated figures): - Investment: 1,737 (millions of US$) - Direct jobs: 460 - Secondary jobs: 153 - Output, year, fully operational (tons/yr): 3,023,440 - Total, Hydrocarbons (consolidated): - Investment: 13,737 (millions of US$) - Direct jobs: 2,660 - Secondary jobs: 1,053 - 2012 Output (barrels per day): 328,392 - 2012 Output (tons per year): 19,486,030 - Price and revenue assumptions (from tables): - Price crude: 90 US$/barrel - Price US$/ton (example entries): 657; 280; 250; 470 (as presented in table lines) - Revenue millions of US$/year and State share billions of CFAF/year (55%): example consolidated line shows Revenue 10,816 (millions of US$/year) and State share 2,974 (billions CFAF/year) for subtotal Petroleum line. - Note: The natural gas price of US$272 per petroleum equivalent ton corresponds to US$7/MMBTU (US$7 per million BTU, NYMEX international price unit). *Source: National Development Plan CONGO DSCERP 2012-2016 (selection from PDF content).* ### Box 7. REGIONAL COOPERATION FOR THE REFINERY ### _cr12242 - Box 7. REGIONAL COOPERATION FOR THE REFINERY ### CEMAC regional economic program strategy — core proposal - Rather than expanding national refineries that are "too small, obsolete, and often costly in terms of state subsidies," CEMAC member states will pool resources to establish a large, modern, and competitive regional refinery. - Target production capacity: "a production capacity of 8-10 tons per year." - The regional refinery will be equipped with "a storage platform that can meet the requirements of all CEMAC countries." - Governance and management: - All CEMAC member countries, major oil companies, representatives from the regional private sector, and CEMAC citizens (through the regional stock exchange) will be invited to the round table discussion of the regional multinational. - The unit "will be managed on strictly commercial rules with governance that meets international standards." ### Refining downstream development and LPG production - Establishment of the regional refinery will enable development of regional LPG production with "approximately 12 new industrial units (assembly unit for household and industrial bottled LPG and LPG packaging units)." - A storage platform for refined oil products will be provided "for exports on the regional market." ### Gas sector: liquefaction, regional supply, and ownership - The current liquefaction plant in Equatorial Guinea "has the resources to become a visible player on the world market if it expands substantially." - Expansion premise: support with Equatorial Guinean gas reserves (described as "substantial but insufficient") plus regional reserves, "particularly from Cameroon." - Equity and regional participation: - Equatorial Guinea, "while retaining its majority, may open its shareholding to other countries in the subregion, and specifically those contributing to the gas supply." - Medium-term vision: "New regional LNG centers may next gradually be established to reflect targeted gas prospecting and discoveries in neighboring countries, ultimately making CEMAC a reference center in liquefied natural gas production." ### Short-term gas uses and petrochemical linkages - In the short term, gas will enable "to produce sufficient electricity while the hydroelectric dams are being built and become operational." - Regional gas exploitation will enable development of a regional petrochemical operation to produce NPK fertilizer with: - "the launch of several units using synthetic urea (Gabon), in addition to potassium chloride and phosphate resources (Congo)." ### Petroleum cluster: strategies, key objectives, and flagship projects (Figure 12) - Strategies (numbered 1–7) and associated key objectives: 1. Exploration — "Promote free trade areas." — Key project: "New Petroleum Code/road shows and tendering procedures" 2. Production — "Maximize recovery rates. Develop and diversify uses of gas." — Key projects: "Gas-fired power plants (CEC/ENI and TEP). Gas Code and agreements." 3. Trading — "Regional distribution center" — Key project: "Create a trading center for products under customs control in connection with the new refinery." 4. Transportation — "Promote sharing of gas pipelines. Improve mass transportation for petroleum products." — Key projects: "Common gas pipelines (PPP/BOT). Build the Pointe-Noire Brazzaville petroleum product pipeline." 5. Refining — "Cover domestic requirements. Develop exports." — Key projects: "Removal of blockages + Bituminous unit, CORAF. Liquid petroleum gas unit, CORAF and ENI. Regional study under the aegis of CEMAC." 6. Storage — "Ensure supply security." — Key project: "Doubling of storage capacities." 7. Distribution — "Promote establishment of a network of service stations. Develop butanization." — Key projects: "Pairing of new service stations. New filling centers." ### Support activities, integration, and enabling measures (Figure 12 summary) - National integration strategy to develop local content: - "Application of laws and texts on local content." - "Policy for integration of communities into pipeline projects" with community returns: "Opening of roads, schools, clinics, markets, and other community projects." - Infrastructure and production factors targeted: Transportation, water and energy, and Telecommunications. - Human capital and labor market actions: - "Capacity building in general government" - "Development of skills for the private sector" - Specific programs: "Capacity building program for ministries and state companies; National MLT training program for hydrocarbons specializations; Training center for technicians in the petroleum sector." - Private sector, financing, and business environment reforms: - "Streamlining of the system of support for the private sector" - "Modernization of the legal framework" - "Public-private dialog" - Measures to boost competitiveness and SMEs, and "Popular shareholding" - Institutional and promotional measures listed (selected): - "Organization and operation of the Chamber of Commerce by the private sector;" - "Implementation of a substantial investment and export promotion agency;" - "Framework law on emergence;" - "Promotion of domestic and international arbitration;" - "Establishment of commercial courts;" - "Creation of the Presidential Council on Investment;" - "Implementation of the national fund for professional training;" - "Popular shareholding." *Source: Box 7. REGIONAL COOPERATION FOR THE REFINERY (from the provided content unit)* ### 741. The Government will encourage and provide support to industrialists to ensure the local ### _cr12242 - 741. The Government will encourage and provide support to industrialists to ensure the local ### Local mineral processing and industrial development - The Government will encourage and provide support to industrialists to ensure the local conversion of the minerals: - Primary processing plants: pelletization and production of DRI owing to the availability of natural gas and electricity; - Secondary processing plants: smelters, refineries; - Tertiary processing plants (improvement): machining, casting (sandcasting, permanent, lost wax, in plaster and in polystyrene mousse), manufacturing workshops for steel products; - The Government is examining the option of constructing a new economic zone specially dedicated to steel and metallurgy (“Cité du Métal”). ### National integration and support activities - The Government will launch a national integration plan in the mines sector to promote national content in this sector. - Support activities aim to develop upstream, downstream, and support sectors and to increase national participation and subcontracting by nationals. ### Infrastructure and other factors of production - Basic infrastructure priorities: - Strengthening means of transport and the supply of energy and water as part of a national integrated strategy (described in Chapter 11 of the document). - Particular attention to transport and energy infrastructures that most affect competitiveness of growth sectors such as Mines. - Projects and programs referenced in the mining cluster strategy include: - Thermal power plant and natural gas for local conversion; - Special economic zone; - Upgrading the railway links and ports; - CEMAC Regional market for steel products. ### Institutional reform, governance and regulatory framework - The State will facilitate and support revival and expansion of production and support activities, and promote development of basic services including institutional reforms, strengthening human resources, and improving infrastructure services. - A Mining Code adopted in 2005 aims to revise mining taxation and optimize capitalization of mining income; implementing legislation must be promulgated to clarify supervision and monitoring. - The Government intends to rationalize interventions into three missions: - “Strategic planning”: consolidate into a “Sectoral Policy Letter (LPS)” and a “Strategic Plan for the development of the Mines” to clarify orientations, objectives, major financing programs and strategies. - Regulation: fix clear rules of competition and terms of sector functioning; apply Mining Code texts and strengthen competition. - Marketing: create the Société Nationale des Mines du Congo (SNMC) as the national marketing structure for oil, Mines and their derivatives. ### Strengthening national content, private sector development and SMEs - Recognized problem: local content is poor and is a bottleneck to sector growth, national revenue contribution, and employment creation. - Actions to strengthen national content: - Sign legislation and agreements to involve foreign enterprises in construction of basic infrastructure (energy, hydraulics, transport). - Organize capacity strengthening actions for technology transfer and enable establishment of companies meeting oil industry standards. - Stimulate, set up and support emergence of SMEs/SMIs, finance micro-projects and promote cooperatives. - Public-private dialogue and legal/institutional modernization items listed in the mining cluster strategy include: - Organization and functioning of the Chamber of Commerce by the private sector; - Establishment of a strong agency for promoting investment and exports; - Fostering national entrepreneurship; - Legal Reform Commission; - Framework Act on Emergence; - Promoting internal and international arbitration; - Establishing commercial courts; - Creation of the Conseil Présidentiel de l’Investissement (Presidential Council for Investment); - Strengthening the visibility of professional [actors]. ### Strengthening capacity and large-scale skills training - Priority: develop an extensive national training program in reputable international schools for managers and technicians specialized in Mines, Oil and Gas, forestry and tourism trades. - Inclusion of operators via incentives for recruitment of apprentices, on-the-job training, and merit scholarships for students in nominated establishments. - Planned programs: strengthening public administration capacity; developing competence in the private sector; program for MLT training for specialized fields linked to the National Mines; training centre for mining sector technicians. ### Protection of heritage and the environment - The State will reconcile operators’ interests with protection of Congo’s environment and natural heritage. - Studies must be conducted to understand the environmental impact of mining projects. ### Expected impacts on growth, employment and state revenues — Investment - Flagship projects: Zanaga and Avima iron projects. - The anticipated investments are at least US Dollars 9,756 billion of which US Dollar 4 billion alone will be for Zanaga. ### Production and growth projections - Mining production is projected to increase to model production of 112 million tons in 2016 compared with 45 million tons in 2013. - This represents an average annual growth of 38,4% over the period. - Macroeconomic simulations (see Chapter 15) indicate such growth in mining production and upstream/downstream effects would increase GDP growth by around 5 points. ### Employment projections - Direct developments in support sectors are estimated to create around 25 000 jobs. - Around two thirds will stem from direct activities of the sector and the remainder from support activities. ### State revenue projections - The average annual revenue derived from the Minerals sectors would increase to US$ 6,25 billion. - Around 55% would return to the Congolese State under various forms (production sharing and taxation), being FCFA 1 719 billion. ### Mining cluster: strategy, key programs and projects (summary elements) - Direct activities and projects: - Research: Geological and Mineral Research Center (Application of the decree of establishment). - Exploration: Promotion; Mining Facilitation & Acceleration. - Processing: Local conversion; Thermal power plant and natural gas. - Refinery / Smelter. - Taxation: Special economic zone. - Improvement: Regional market (CEMAC Regional market for steel products). - Export: Logistics; upgrading railway links and ports. - Support and integration: - National Integration Strategy to develop local content; Application of the laws and texts on local content. - Integration policy of communities in mining projects: opening of tracks, schools, dispensaries, markets and other community projects. - Infrastructure and factors of production: - Transport, Water & Energy, Telecommunications. - Human capital and labor market measures listed above. - Private sector support and financing: rationalizing support mechanisms to the private sector. - Modernization of legal framework and public-private dialogue elements listed above. *National Development Plan CONGO DSCERP 2012-2016 — Excerpt sections 741–771* ### 772. The “modernization of small-scale agriculture” axis is organized into two major ### _cr12242 - 772. The “modernization of small-scale agriculture” axis is organized into two major ### Modernization axis: program structure - The modernization of small-scale agriculture is organized into two major programs of activities: (i) direct support to production and (ii) support activities operating upstream or downstream of production, or in a permanent manner. ### Direct support to production (objectives and measures) - Focus: interventions with a direct and immediate impact on production. - Chosen measures: - Revival-by-sector approach based on formulation of specific strategies. - Improvement in quality and quantity of support in: - Technical training of producers. - Supply of inputs. - Combating major threats. - Improving production techniques. - Promotion of mechanization through targeted support to: - Improve yields. - Reduce laboriousness of work. - Make working the land attractive and lucrative for producers. ### Support activities (upstream and downstream) - Purpose: back-up activities enabling optimization of operational results. - Upstream interventions: - Strengthening research and development. - Improvement in the supply of inputs, equipment and agricultural material. - Development of rural engineering activities. - Strengthening training and supervisory structures for producers. - Downstream interventions: - Promote development of transport. - Strengthen storage and preservation capacities. - Facilitate marketing channels to help producers benefit from favorable price developments. ### Box 8 — Program to Strengthen the Potato Sector in Cameroon (PRFPT): objectives, costs, implementation, outcomes - Objective: contribute to growth of national agricultural and food production and sustainable improvement in incomes and living conditions of rural populations. - Specific objective: improve yields that currently do not exceed 15 tons per hectare and, in the long term, support and professionalize 20 groups of seed growers and 2 500 groups of potato producers. - Cost and financing: - The cost of the program is FCFA 6,2 billion and is financed by PPTE funds. - Implementation strategy (main elements): - (i) supporting production of certified seed; - (ii) supporting production of potatoes; - (iii) forming producer groups; - (iv) promoting mechanization through providing soil preparation equipment; - (v) promoting off-season cultivation by putting in place irrigation systems in cultivated land; - (vi) improving marketing through warehouses and a market information system. - Principles of intervention: - (i) program introduced into each of its 12 “production zones” via an umbrella structure of potato producers open to all groups; - (ii) participation of beneficiary groups; - (iii) contracts/agreements with partners (beneficiary groups, service providers, producers’ networks, micro-financing establishments); - (iv) support provided exclusively in kind; - (v) value of support considered as a revolving fund to be capitalized by the group to finance successive cycles. - Financial flows and rollout: - Funds paid by the Treasury Department directly into umbrella Program/Structure joint management accounts held with microfinance institutions in production areas to enable timely provision of inputs. - Interventions effectively launched during the first agricultural season of 2011. - In-kind support and inputs distributed (first season): - Value of in-kind support: around FCFA 550 million to 238 beneficiary groups. - Land developed: 86 ha of seed fields and 102 ha of fields producing potatoes for consumption. - Inputs acquired and distributed: - 172 tons of certified basic seed, 204 tons of certified seed for production; - around 440 tons of base fertilizer, 94 tons of dressing fertilizer, 3,5 tons of pesticides; - 376 sprayers, 25 motor pumps, 19 ploughs and 2 tractors. - Results: - Average yield obtained: 20 tons per hectare. - Production: at least 1 720 tons of certified potato seed and 2 040 tons of potatoes for consumption. - Overall expected income: FCFA 1 268 million, of which: - FCFA 860 million stems from seed sold at FCFA 500 000 per ton; - FCFA 408 million for potatoes for consumption sold at an average price of FCFA 200 000 per ton. *Source: STP/DSCERP* ### Key actors in small-scale farming program - Public services (administrations and their staff, supervised projects, research structures). - Bilateral and multilateral technical cooperation partners. - Producers and producers’ groups. - Civil society support organizations. - Service providers, notably suppliers of inputs. ### Development of industrial agriculture - Peace consolidation has attracted major private foreign investors to agricultural and halieutic potential. - Government intends to exploit potential to promote agro-industrial complexes and rapid expansion of the agricultural sector. - Established partnerships with multinationals include: - South African company “Congo Agriculture” for an agro-industrial complex of food and fruit crops and cattle rearing. - Brazilian company BR AFRICA for production and processing of manioc in the Pool department. - Malaysian company ATAMA PLANTATIONS for development of palm oil. - Activities supported by experience from the Demonstration Center for Agricultural Techniques (Congo–China cooperation) and internal efforts to consolidate sector attractiveness. ### Support for development of the agricultural sector (policy measures) - Strengthening land-resource management through specific legislation: - Actions include (i) adoption of an agricultural land policy to ensure optimal management favorable to significant investments while preserving local population well-being, and (ii) soils mapping to orient sector development according to natural regional allocation. - Improving accessibility to production zones and rural living conditions: - Major works to equip rural areas with socio-economic infrastructure: construction of schools and health centers, supply of drinking water, electrification, sanitation. - Construction/rehabilitation of roads and rural paths to strengthen accessibility. - Plan to assess “agricultural villages” experience to consider extension program. - Improving labor supply and strengthening the agricultural labor market: - Sector growth increases demand for work and specific trades (notably with agro-industry). - Government actions to offer training in agriculture, stock rearing, fishing and aquaculture. - Construction of professional training centers and opening of specialized teaching sectors. - Special emphasis on jobs in the agricultural sector. - Strengthening governance and support to the private sector: - Two principal axes: - (i) strengthening governance capacity of sectoral administration (ministries and government agencies); - (ii) improving general governance in sector channels. - Strategic planning: - Sectoral ministries have prepared strategic planning documents. - Government intends to consolidate work into a “Sectoral Policy Letter (LPS)” and a “Strategic Plan for the Development of the agricultural sector”. - Ministries participate in Priority Action Programs (PAP) and program budgets within CDMT implementation. - Refinement of sectoral strategies to improve strategic planning. - Setting quality and environmental standards: - Government will adopt a regulatory framework to establish quality and environmental standards. - Sector to acquire suitable human and material resources to ensure observance. - Objective: reconcile operators’ interests with national interests and preserve environmental heritage. - Studies to be carried out to understand environmental impacts of projects. ### Expected impacts on growth, employment, and state revenues - Production and growth: - With DSCERP reforms and program implementation, and development by multinationals, agricultural production should show rapid expansion. - Economic projections: on the basis of anticipated investments and program implementation, agricultural production will experience average growth of 11% over the 2012-2016 period. - Historical performance: sector averaged growth rate of 7,3% between 2008 and 2011. - Employment: - Agriculture remains the largest provider of employment in rural areas despite low revenue levels and low mechanization. - According to ECOM2, agricultural employment represented 35,6% of employment in the Congo in 2011. - The sector is expected to continue contributing strongly to curbing unemployment in coming years. ### Box 1 — Government actions promoting agricultural development (programs, projects, funds) - Key programs and projects implemented: - Programme National pour la Sécurité Alimentaire (PNSA) — overall objective: develop natural potential to alleviate food insecurity and poverty. Specific objectives include increasing national agro-pastural and halieutic production through innovative technology and quality inputs; strengthening actor capacities; improving marketing, conversion, storage and preservation; establishing monitoring/early warning/rapid response; improving income and standards of living of rural producers (women and young people); diversifying rural income sources; guaranteeing availability of foodstuffs; protecting environment and conserving natural resources. - Projet de Développement et de Réhabilitation des Pistes Rurales (PDARP). Main objective: improve agricultural production in the Congo. Co-financed equally by the World Bank and the Government for an overall amount of FCFA 20 billion. Project targeted some 600 activities; currently being adjusted (reducing number of activities, roads to rehabilitate, market infrastructures and micro-projects to finance). - Projet de Développement Rural (PRODER). Focus: improving village food supplies and increasing rural incomes; components include developing crops and farms based on manioc, groundnuts, maize and lowland rice, and developing animal husbandry (cattle and small ruminants) with establishment of a self-funding system for distribution of inputs and credit. - Projet “Création des Nouveaux Villages Agricoles”. Funded by the Congolese State for an amount of FCFA 13 billion. Objective: develop special villages to increase production and professionalize agriculture. Examples: Knouo, Odziba and Imbouba in the Ignié agricultural area (Pool) with activities linked to manioc, pig rearing and broiler meat. State provided each young person in these villages 792 laying hens and the equivalent of two hectares in manioc cuttings. Forty families selected (among 358 applicants) live in State-built houses; farmers work for themselves. - Fonds de Soutien à l’Agriculture (FSA): - Aim: finance farmers, stockbreeders and fishermen on the basis of viable projects. - FSA received an amount of FCFA 4 billion (approximately US$ 8 million) to finance activities during 2010. - Funding supported five priority sectors: poultry farming, pig rearing, fishing, fish-farming and the vegetable sector. *Source: DSCERP (National Development Plan CONGO 2012-2016)* ### 2. Cooperation agreements ### 2. Cooperation agreements ### Agricultural cooperation and partnership objectives - Objective: accelerate development of agricultural production by strengthening cooperation with other countries (notably China) and concluding partnership agreements with multinationals to benefit from partners' expertise and advanced technologies. - Partnerships established with South African, Brazilian and Malaysian companies. - Agricultural cooperation with China: creation of the Centre de Démonstration des Techniques Agricoles (Demonstration Centre for Agricultural Techniques) on the outskirts of Brazzaville to conduct experiments supplying new high-yield varieties of fruit and vegetables adapted to the country’s ecology. - Source attribution in text: STP/DSCERP. ### Partnership: South African company “Congo Agriculture” - Agreement signed on 10 march 2011 in Pointe-Noire. - The Congolese State donated 80 000 ha of land to “Congo Agriculture”. - Land location and breakdown: - Niair: 63 000 ha - Bouenza: 17 000 ha - Intended use: establishment of an agro-industrial complex for food crops and fruit growing, as well as cattle rearing. ### Partnership: Brazilian company BR AFRICA - Agreement signed on 5 November 2010 authorizing establishment in the Congo under the label BR Africa Congo. - Capital distribution amongst shareholders: - the Congolese State (49%) - the Brazilians (51%) - Intended production and project: - Produce manioc and convert and market products derived from the agro-industrial complex to be built in the Pool department, between Imbouba and Mbé. - Area set aside for manioc production: 19 500 ha. ### Partnership: Malaysian company ATAMA PLANTATIONS - In December 2010, the Congolese Government donated 470 000 ha of land located between Makoua and Mokeko to ATAMA PLANTATIONS. - Intended production: 9 000 tons of palm oil. ### Agricultural value-chain programs (selected highlights) - Maize value chain (Table 29): roles and actions allocated across ministries, including allocation and assessment of investments; establishment of the corn mill industry; developing areas to be cultivated (mechanization); simplification and diffusion of farming techniques; demarcation and expropriation; development of a program for waste recycling; creation of maize storage centers (silos); training in mechanization, maize industry, storage, preservation and marketing. - Manioc industry value chain (Table 30): actions include establishment of manioc flour and starch production industries, establishment of starch and cattle feed production industries, national and international technical partnership agreements, creation of healthy nurseries (plant material), support for mechanization, simplification of farming techniques, supply of water and electricity to sites, establishment of a marketing network, and training in mechanization, industry, storage, preservation and marketing. - Palm oil value chain (Table 31): actions include establishment of the palm oil and biofuel industry, cabbage oil industry, saponification industry, creation of palm oil nurseries, developing cultivated areas, simplifying palm oil farming techniques, creation of a papain production plant and a factory for biodegradable packaging, creation of a support unit for mechanization, waste recycling to protect sites, product distribution on local and foreign markets (export), establishing market regulatory mechanisms, and training programs for mechanization and simplifying agricultural work. - Fisheries value chain (Table 32): actions include creation of industrial fishing hatcheries for fish farming and restocking, creation of fish-farming fattening stations, creation of fish filleting plants, industrial fish processing and conversion plants, laboratories for quality control of fish destined for export, industrial unit for salt-curing and smoking of fish, creation of refrigerated warehouses, provision of refrigerated vans to CFCO, and extensive training programs in fish farming, aquaculture, processing, conservation and marketing. ### Forestry and timber industry: contribution, trends and challenges - Historical and recent contribution: - Forestry sector contributes close to 10% of the GDP10. - Between 2005 and 2008, the sector represented 13% of exports on average, and more than 60% of the non-oil export earnings. - In 2010: - Contribution to GDP: 5,6% - Contribution to exports: 10% - Employment: around 16 000 people, of which 1 100 were directly employed and 5 000 were employed in related activities. - Production trends: - After strong expansion between 2001 and 2003, forestry production experienced a turndown since 2004 (0,3%), particularly due to a drop in production of logs (-2%) offset by an increase in production of semi-finished wood (+10%). - Causes of underperformance: - Insufficient conversion rate and poor control of the value chain; most timber exported as logs. - Exploitation concentrated on around ten species recognized for market value, including OKOUME, SAPELLI, MOABI, PADOUK, SIPO, AKOUMINATA and WENGE (OKOUME and SAPELLI the most exploited). - Deterioration of transport infrastructure hindering shipment to Pointe Noire; companies in northern regions transport via Douala (Cameroon), incurring transport surcharge and higher fuel price relative to subsidized fuel in the Congo. - International economic and financial crisis from Q3 2007 led to: (i) cut in orders, (ii) drop in production, (iii) decline in sector activities, (iv) reduction in forestry revenues, (v) inability to respect contractual agreements with the State, (vi) reduction or standstill of investments, and (vii) staff cutbacks and technical leave. - Legal and policy context: - 2000 Forestry Code requires foresters to process at least 85% of production (without total prohibition of log exports). - Growth in industrial timber processing remains well below the objective fixed by the Forestry Code (85% local processing). - Sustainable management and concession status (total area and breakdown): - Total forestry development area concerned: 12,8 million hectares. - Sustainable development with full approval: - 3 504 159 million ha (being 27% of the total) currently managed by major groups (including CIB, IFO and MOKABI), internationally recognized and certified. - Sustainable development with provisional approval: - 6 015 531 million ha (being 47% of the total). - Permits not initiating any management process: - around 3 243 246 million ha (being 25% of the total); generally small national permit holders lacking financial standing; uncontrolled and non-transparent allocation practices. - Sectoral priorities and strategic direction: - Vision: “To make the Congo one of the global leaders in certified tropical wood, carried by an industry that fully enhances the resource and which is exploited from a forest under sustainable management, playing its role in full of Carbon Sinks and a biodiversity sanctuary, at the service of humanity”. - Implementation focus: - Improved governance of the forest. - Reorganization of forestry development. - Complete review of timber processing organization through industrial poles to provide shared infrastructure and services. - Need for improved management of logistics costs (notably transport and port freight). - Major strategic guidelines aligned with the “Chemin d’Avenir” (“Future Path”) vision, broken down into major programs including: - (i) knowledge on the wealth of the Congolese forestry domain; - (ii) generalization of sustainable management of the forest to all development sites; - (iii) development and implementation of an industrial strategy organized around the “timber and forestry industry cluster”. ### Sectoral weaknesses, environmental considerations and mitigation actions - Environmental and management concerns: - Need to reconcile: (i) protection of tropical forests as “carbon sinks”, and (ii) the rights of the country and its people to exploit forest resources for timber and construction materials markets. - Reconciliation requires optimal organization of exploitation respectful of sustainable and efficient development and protection against massive deforestation, degradation, illegal trade in timber, fauna and non-ligneous forest products. - Crisis response and stakeholder engagement: - A consultation meeting was held grouping actors in forestry/timber development and employers’ unions (Uni-Congo, Uni-Bois) to discuss mitigation measures. - Forestry development progressing in most concessions based on multi-resource inventories and ecological and socio-economic studies within partnerships between forestry administration, companies and development partners (donors, civil society organizations). *Source: STP/DSCERP — Excerpts from National Development Plan CONGO DSCERP 2012-2016.* ### 803. It concerns a better understanding of the forest and its diversity of wealth, in particular ### _cr12242 - 803. It concerns a better understanding of the forest and its diversity of wealth, in particular ### Biodiversity assessment and resource valuation - Conduct an exhaustive inventory of the forest’s resources using modern geomatic methods and satellite observations to follow forest evolution. - Conduct a soil inventory using tracking tools (GPS). - PAGEF project will enable: - an exhaustive soil inventory; - a stock-taking of the reality of the different forms of exploitation of the forest, the forest populations, the forest enterprises and the activities carried out there. - Objective: determine the economic value of the forest, i.e., the number and the value of ligneous species, of the Non-Wood Forest Products (NWFP) and of the fauna and flora. - The economic value of resources is added to their value as carbon sinks ensured through sustainable management. - Improved knowledge required of animal and plant biodiversity, species’ industrial value, interest in their development, and properties/active principles/significance of non-wood forest products. ### Generalizing sustainable forest development and inclusion - Programme de Mise à Niveau (PMN) with a fund of US$ 15 billion, PAPPF 2 (small forest permits program), and other future aid sources will support generalization of sustainable management of small forest permits—mostly held by Congolese nationals. - Emphasis on integration of Congolese people living off small forest exploitation into sector development. ### Industrial strategy for the timber sector - Aim: extend timber processing projects to all forest exploitation and develop national and regional markets responding to growing African urbanization and housing demand. - Specific industrial strategy targets: - Increase the recovery rate (material output) of felled timber from current 20% to 30% to a minimum recovery rate of 85%. - Enhance full value of waste from forest development (forest residue, waste from wood chips). - Create a cluster of small, medium and micro enterprises, fostering self-employment and revenue in collection and development of forest exploitation waste (pruning, hauling, fagots, grinding of forest waste, collecting and press molding of wood chips). - Use wood shavings for electricity and heat through cogeneration; produce construction materials (e.g., geo-concrete resistant bricks combining wood shavings with clay) and more sophisticated materials. - Develop wooden assembly kits combining different materials for mass-production of houses, linking large export companies with small and medium enterprises across first, second and third processing phases. - Establish partnerships with manufacturers and countries with advanced timber technologies to develop construction materials that preserve wood advantages (thermal comfort, resorption of humidity, durability) while avoiding disadvantages (termites, humidity and warping of non-dried wood). - Incorporate polymers from petro chemistry in design of new materials. ### Housing, market development and enabling policies - Offer under a Congolese label to be developed via partnerships with forest nations mastering construction-materials technologies. - Aim to extend across the Congolese national market and the regional market with rising demand for housing, construction materials and furniture. - Government policy priorities to facilitate access to housing: - urban development; - cadastral policy; - making land available to developers and housing cooperatives; - development of land (VRD, installation of drinking water supply networks, sanitation). ### Flagship program for forest economy (2012-2016) - Government plans an extensive priority program for 2012-2016 to drive transformation of the forest economy; program prepared with World Bank participation. - Main actions enumerated in the program (listed in source table). ### Expected impacts on growth, employment and State revenues - Contribution to growth: - With expected investment volumes and outlook for sustained progress in international timber prices, sector growth projected to increase from -7,8% as an annual average for 2008-2011 to 10,5% over the 2012-2016 period, with knock-on effects in other sectors. - Contribution to employment: - Macroeconomic projections (with conservative assumption of constant productivity of work) indicate significant increase in forestry sector employment. - Anticipated improvement in quality of jobs and remuneration, notably in downstream industrial sectors. - Contribution to State revenue: - Assuming increased tax revenue and sustained sector growth, an increase in the sector’s share of total State revenue is anticipated. - Simulations indicate forestry sector and overall GDP would increase at the same rate. - Improved collection efforts expected to increase sector contribution to State revenue. ### Institutional actions for value-chain development (selected actions) - Ministries and actions listed in source table include: - Economy, Planning, Town Planning and Integration: Allocation and assessment of investments in the value chain. - Industrial Development and Promotion of the Private Sector: Creation of the timber seasoning industry to improve timber product quality. - Forest Economy and Sustainable Development: Monitoring the UFAs for perennial development; establishment of village nurseries; development of the national afforestation program. - Land Affairs and Public Domain: Demarcation of the area for exploitation and expropriation. - Higher Education and Professional Training, Skills Training: Professional training in timber trades; CEFA for timber trades (in-service training); training program for technicians and engineers in further processing of tropical timber. ### Buildings and construction materials cluster: scope and actors - Construction industry covers activities linked to construction and management of civil engineering works, from housing construction to production and distribution of construction equipment and materials. - Cluster components: - Main construction activities (construction, rehabilitation, maintenance, demolition). - Production and distribution of equipment and construction materials. - Property development promotion and support activities. - Infrastructure and other production factors. - Main actors include: - Administration (relevant Ministries); - Companies and individuals: construction/project management companies (CFCO, PAPN, PABPS, SNE, etc.), hoteliers, manufacturers, farmers, individuals; - Companies carrying out BTP projects; consulting and auditing firms; quarry developers; equipment and material haulers; hardware dealers; civil engineering machinery rental; material manufacturers (cement, bricks, tiles, roof tiles, floor tiles, steel reinforcement, sheet metal, window panes, pipes, sanitary ware, planks, laths, rafters, plywood, paneling, laminated wood, lathes, wheelbarrows, etc.); real estate agencies; furniture manufacturers; interior designers; gardeners. - Support actors and basic infrastructure participants include multiple Ministries, VRD project companies, consulting firms, and solar energy manufacturers/installers. ### Strengths and constraints of the construction sector - Strengths: - Policy of modernization of social housing; - Major transport infrastructure policies (roads, bridges, railway lines, ports, airports) in Congo, DRC, and Central African sub-region; - Major construction programs for energy, water and sanitation (hydroelectric dams, thermal power plants, electrical power lines, agricultural irrigation pipes). - Main constraints (grouped into categories in source): - Shortage of construction projects driven by high cost of construction materials and high cost of land for construction (limited local production, pronounced use of imported materials, lack of serviced land). - Uncertain quality of construction due to products not meeting technical specifications, absence of a quality control system, weak national standards, non-respect of rules, poor project ownership/management capacity, and bad governance in monitoring construction work. - Weak organization of the sector: regulatory system/ineffective control, unclear actor roles, ineffective town planning regulations, limited number of structured and efficient enterprises, poorly developed property intermediation, lack of civil engineering equipment, poor network of local construction SMEs. ### Strategies and flagship programs for construction sector development - Strategic axes: - Strengthen performance of the construction industry. - Develop human resources in the BTP sector. - Develop capacity and competitiveness of the BTP private sector. - Programs to strengthen performance: - Growth, diversification and reduction in the price of construction materials: promote local production and facilitate supply of material and equipment to lower prices. - Improvement in the building stock: extensive program of construction, rehabilitation and maintenance across social housing, service structures, transport infrastructure and industrial equipment to raise production of construction materials and improve living conditions. - Improvement in development of land available for construction. *Source: National Development Plan CONGO DSCERP 2012-2016 (content unit _cr12242 - 803).* ### 830. Improvement and development of land for construction: Here it concerns acquiring ### _cr12242 - 830. Improvement and development of land for construction: Here it concerns acquiring ### Improvement and development of land for construction - Creation of subdivisions in Brazzaville, Pointe-Noire and in the secondary towns is identified as the keystone for the success of the program. - Development of sites divided by roads and various networks (VRD) will form a key aspect of the program. ### Developing human resources in the BTP sector - Two major programs: - (i) strengthening training in the BTP professions; - (ii) fostering respect for the rules in use. - Strengthening training in the BTP professions: - Improve the training system through creation of technical schools specialized in construction and creation of an Institut Supérieur de Travaux Publics (ISTP). - Optimize use of human resources by improving conditions governing the civil engineering profession and raising salary levels in the BTP sector. - Promoting respect for the rules in use: - Strengthen project ownership, project management, and the rules of construction and town planning. - Revise all legislation on the subject to tailor it towards more strict control of construction in the Republic of the Congo. ### Developing capacity and competitiveness of the BTP private sector - Two envisaged programs: - (i) strengthening the organization and regulation of the construction sector; - (ii) promoting the BTP private sector. - Strengthening organization and regulation: - Socioprofessional organization of actors and improving governance. - Adoption of a framework law on the construction profession (engineer, architect, technician, project owner, companies responsible for executing the work). - Create a platform for professional dialogue between public and private. - Reorganize administration units for technical execution, control and monitoring. - Promoting the BTP private sector: Authorities intend to promote BTP companies and Bureaux d’Etudes Techniques (BET) through: - promoting the activities of real estate brokerage (strengthening legal framework governing the real estate agent profession; revision/adoption of the regulations governing joint-ownership of property); - making available civil engineering equipment through creation of the Agence Congolaise de Location de Matériels de Construction (ACLOMAC) and creation of a Fonds d’Equipement de Génie Civil (FEGC); - developing infrastructure of local SMEs by redrafting provisions for award of public procurement contracts in favor of local SMEs; facilitation of payment of advances to facilitate start-up of SMEs in the BTP sector; facilitation of bank guarantees and securities to SMEs in the BTP sector. ### Flagship actions for development of the construction industry Key actions the Government intends to implement: - promoting the local production of construction materials; - the construction and rehabilitation of social housing; - the construction and rehabilitation of industrial structures; - the creation of urban developments; - the development of allotted land; - improvement in the system of training and qualification of human resources; - strengthening project ownership and project management; - strengthening the construction and town planning laws; - improving the socioprofessional organization of the actors; - promoting the activities of property brokerage; - making available civil engineering equipment; - Developing the infrastructure of local SMEs. ### Main projects for the development of the construction industry (selected items) - Promoting the local production of construction materials: - Construction of cement works, brick works and tileries — Min. of Ind. Dev.; Min. of Mines; Min. of Trade; Individuals (manufacturers) - Construction of a clinker factory — Min. of Ind. Dev.; Min. of Mines; Min. of Trade; Individuals (manufacturers) - Construction of a ceramic factory (floor and sanitary tiles) — Min. of Ind. Dev.; Min. of Mines; Min. of Trade; Individuals (manufacturers) - Construction of a production unit for laminated steel (steel reinforcement, IPE, IPN) — Min. of Ind. Dev.; Min. of Mines; Min. of Trade; Individuals (manufacturers) - Construction of a manufacturing unit for framework and plastering items (laminated wood, paneling) — Min. of Ind. Dev; Min. Forests; Min. Trade; Individuals (manufacturers) - Geological studies and mapping to determine location of quarries — Min. of Mines; Min. of Construction; Min. TP - Construction/Rehabilitation/Housing maintenance: - Construction of social housing — Min. of Construction; DGGT; Individuals (Property Developers) - Creation of urban developments: - Creation of a land development agency — Min. of Construction; Min. of Land Affairs - Creation of developments within accelerated municipalization — Min. of Urban planning; Min. of the Interior; Min. of Construction; Min. of Land Affairs - Servicing of developed land: - Construction of the VRDs in developments in Brazzaville, Pointe-Noire and Dolisie — Min. TP; Min. of Construction; Min. of Land Affairs ; DGGT - Construction of the VRDs as part of accelerated municipalization — Min. of Urban Planning; Min. Interior; Min. TP; Min. Const.; Min. Land Affairs; DGGT - Improving the training system: - Creation of technical high schools/technical institutes specialized in construction — Min. of Technical Educ.; Min. of Higher Educ.; Min. Construction; Min. of TP - Creation of an Institut Supérieur de Travaux Publics — Min. TP; Min. Const.; Min. of Higher Educ. - Strengthening project ownership and management: - Setting a BET threshold requirement for controlling construction sites — ARMP; Min. TP; Min. Construction - Modernization of the Civil Engineering Laboratory — Min. TP; Min. Construction - Strengthening rules on construction and town planning: - Revision of the Urban Code — Min. Construction; Min. Land Affairs; Min. TP - Revision of the regulations on domestic and industrial waste — Min. Environment; Min. Construction; Min. TP - Promoting property brokerage activities: - Strengthening the legal framework for estate agents — Min. Construction; Min. Land Affairs; Min. TP - Revision/adoption of the legislation on joint ownership of property — Min. Construction; Min. Land Affairs; Min. TP - Making available civil engineering equipment: - Creation of an Agence Congolaise de Location de Matériels de Construction (ACLOMAC) — Min. TP; Min. Construction - Creation of a Fonds d’Equipement de Génie Civil (FEGC) — Min. Finances; Min. TP; Min. Construction - Developing the local SME network: - Improving provisions for award of public procurement contracts in favor of local SMEs — ARMP; Min. Finances; Min. TP; Min. Construction - Facilitating bank guarantees to SMEs in the BTP sector — ARMP; Min. Finances; Min. TP; Min. Const.; Individuals (Financial Institutions) ### Expected impacts on growth, employment and state revenues - Observed/estimated job creation: - The estimate for the largest jobs in construction (housing, service buildings, transport facilities) forecasts a minimum of 77 600 direct jobs that could be created annually in these branches alone over the 2012-2016 period. - Additional jobs will be created through production and distribution of construction equipment and materials, and property development promotion (posted in trade, industry and transport services). - Table 37 — expected employment in the construction sector (numbers by activity and year) - Housing: - Number of jobs — 2011: 13 200; 2012: 13 924; 2013: 14 687; 2014: 15 492; 2015: 16 341; 2016: 17 236; Average 2012-2016: 15 536 - Construction (housing): - 2011: 11 171; 2012: 11 783; 2013: 12 429; 2014: 13 110; 2015: 13 828; 2016: 14 586; Average 2012-2016: 13 147 - Rehabilitation (housing): - 2011: 2 030; 2012: 2 141; 2013: 2 258; 2014: 2 382; 2015: 2 513; 2016: 2 650; Average 2012-2016: 2 389 - Service buildings: - 2011: 3 300; 2012: 3 481; 2013: 3 672; 2014: 3 873; 2015: 4 085; 2016: 4 309; Average 2012-2016: 3 884 - Construction (service buildings): - 2011: 2 793; 2012: 2 946; 2013: 3 107; 2014: 3 277; 2015: 3 457; 2016: 3 646; Average 2012-2016: 3 287 - Rehabilitation (service buildings): - 2011: 507; 2012: 535; 2013: 565; 2014: 596; 2015: 628; 2016: 663; Average 2012-2016: 597 - Transport infrastructure (total): - 2011: 40 244; 2012: 44 016; 2013: 48 808; 2014: 56 440; 2015: 65 587; 2016: 76 097; Average 2012-2016: 58 189 - Construction/Rehabilitation (transport): - 2011: 33 767; 2012: 36 891; 2013: 40 614; 2014: 47 017; 2015: 54 751; 2016: 63 093; Average 2012-2016: 48 473 - Mechanized maintenance (transport): - 2011: 3 048; 2012: 3 353; 2013: 3 856; 2014: 4 434; 2015: 5 099; 2016: 6 119; Average 2012-2016: 4 572 - Entretien HIMO (transport): - 2011: 3 429; 2012: 3 772; 2013: 4 338; 2014: 4 989; 2015: 5 737; 2016: 6 884; Average 2012-2016: 5 144 ### Development of limestone and clay industry value chains (selected actions) - Limestone industry (Table 38) — ministries and actions: - Economy, Planning, Town Planning and Integration: Allocation and assessment of investments in the value chain - Industrial Development and Promotion of the Private Sector: Creation of a clinker factory to promote the cement and construction materials industry; Setting up laboratories for quality control of construction materials - Mines and Geology: Geological studies to determine the grade and potential of deposits - Agriculture: Improving soils for purposes of agricultural yields - Aquaculture: Correction of pH rates of water intended for fish farming and aquaculture - Land Affairs: Demarcation of the area for exploitation and expropriation - Higher Education and Professional Training, Skills Training: Training in the fields of construction materials and ceramics - Clay industry (Table 39) — ministries and actions: - Economy, Planning, Town Planning and Integration: Allocation and assessment of investments in the value chain - Industrial Development and Promotion of the Private Sector: Makoua Complex; Creation of factories manufacturing bricks, roof tiles, floor tiles and other construction materials (Makoua Complex; Brazzaville/Pointe-Noire) - Mines and Geology: Conducting geological studies on clay potential - Land Affairs: Demarcation of the area for exploitation and expropriation - Trade and Supplies: Establishing a distribution network for clay-based products; mechanisms for quality and price control of clay-based material - Higher Education and Professional Training, Skills Training: Professional training in clay-based trades - Tourisms and Hotel Trade: Creation of a supply of tourist hotels along the Congolese coastline ### Tourism and hotel trade cluster (overview and implications for construction) - Tourism cluster activities include sightseeing tours, recreation activities, catering and accommodation services, supported by transport services and trade in cultural and artistic goods. - Tourism cluster head activities: (i) sightseeing tours; (ii) frequenting recreational areas; (iii) hotel and catering facilities. - Support activities: transport services, telecommunications, immigration/visa management, marketing of Congo as a destination, trade in artistic and cultural goods, safety. - Factors of competitiveness: tourist facilities; transport facilities; training in tourism and recreation trades; financing services; governance of the sector. - Strengths: - Ecotourism potential (national parks ODZALA, NOUABALE NDOKI, CONKOUATI) and 170 km coastline at Pointe-Noire. - Plurality of ethnic groups and artisan products. - Transit role—passengers from neighboring countries use Congo’s hotel and catering facilities. - Reputation for being welcoming with safe and available taxi service in Brazzaville and Pointe-Noire. - Competitive communications costs and expanding Internet (optical fiber investments). - Dense multimodal transport network; ongoing investments (Port of Pointe-Noire deep-water port; Brazzaville-Pointe Noire road being tarred; Brazzaville airport extension; facilitation of Congo river crossing; road-rail bridge study between Brazzaville and Kinshasa). - Accelerated municipalization will bring investments and equipment to departments supporting tourism. - Constraints and challenges: - High demand for accommodation and catering in Brazzaville and Pointe-Noire; supply often fails to meet desired quality. - Labor is poorly skilled or not fully utilized. - Government intends a bold investment program for site development, hotel structures, and training to make tourism the third pillar of economic diversification. - Ongoing measures: - Approach foreign tour operators for promotion and marketing. - Creation of Agence de Promotion du Tourisme; opening of Bureaux d’Informations Touristiques abroad; Office National du Tourisme and departmental agencies. - Restructuring the Fonds de Développement Touristique to enable financial support for operators. - Airport infrastructure development aimed at making Brazzaville and Pointe-Noire true hubs in Central Africa. *Source: STP/DSCERP (excerpts from National Development Plan CONGO DSCERP 2012-2016).* ### 855. To meet the challenges of development of the tourism industry in the Congo, the ### _cr12242 - 855. To meet the challenges of development of the tourism industry in the Congo, the ### Strategic axes - Two strategic axes planned: - (i) strengthening tourist and recreational facilities; and - (ii) promoting tourism and recreational activities. ### Strengthening tourism and recreational facilities - Objectives: - Contribute to economic growth and combating poverty. - Equip the sector with appropriate regulations and implement a program of capacity development. - Program components: - (i) the development of tourist sites; - (ii) strengthening hotel and leisure facilities; - (iii) strengthening human resources; and - (iv) improving the environment of the tourist and recreational sector. ### Developing tourist sites - Actions: - Complete inventory of sites with tourist potential and carry out valuation and development studies. - Tourism development of Congo’s ecological heritage via large development projects of the National Parks: ODZALA, CONKOUATI, NOUABALE NDOKI. - Selected sites for development (from inventory) include: - Loufoulakari Falls; - Mah village (Lac bleu in MÂH village (Pool) appears as project); - Lake Nanga; - Djoué waterfalls; - Loango slave route; - Main Sacrée de Sembé caves (including the Châtelet bleu site in Brazzaville); - Creation of recreational parks in Brazzaville and Pointe-Noire. ### Strengthening hotel and recreational facilities - Accommodation planning and classification focus: - “5 Star” hotels: - Central-city location preferred to serve businessmen, speakers, official delegations, exhibitions, conferences. - “4 star” hotels: - Targeted to tourist clientele; large effort to create a pool of 4 star hotels. - Note: “to date, most of the high-end hotels in the Congo offer a level of comfort of 3 to 4 stars.” - Special attention to seaside areas; could be established on the outskirts near main tourist attractions (ocean, ecological reserves). - Resorts: - Parks with community facilities (swimming pools, amenity beaches, sports fields, playgrounds). - Accommodation as hotels, villas or bungalows for rent or sale; generally located some distance from cities. - Holiday villages and camping grounds: - Similar to resorts but more simplified comfort; camping grounds in ecological reserves or hiking stopovers. - Designed for limited groups for short periods, from 1 to 4 nights. - Holiday camps: - Facilities aimed at receiving groups of children during holidays; basic comfort; may host themed classes or sports teams. - Institutional strengthening: - Strengthen managerial capabilities of the Ministry to implement the program. - Set up and staff domestic and international promotional structures to convince tourism professionals and clientele to choose the Congo. - Planned promotional and institutional actions: - (i) creation of a National Tourism Office, with departmental agencies; - (ii) launch an Internet site and Tourist Information Bureaus (BIT) at Brazzaville and Pointe-Noire airports, and agencies in Europe, North and South America, Africa and Asia; - (iii) creation of promotional material and participation in international fairs and events. - Human resources: - Creation of the Institut de Formation Touristique (IFT) (Tourist Training Institute) to ensure professional training of sector staff. ### Improving the environment of the tourist and recreational sector - Adopt a legal and regulatory framework to govern the tourism sector and guarantee tourist quality of services. - Strengthen direct and daily management resources of administration-responsible sites. - Develop access programs to sites using air, maritime, river, road, rail and pedestrian modes. - Integrated transport facilitation program to improve accessibility; actions include: - conducting actions aimed at reducing the cost of international air transport; - scheduling the development of roads providing access to the tourist sites throughout the year; - equipping secondary airports making it possible to access the large ecological reserves, in order to guarantee the safety of tourists; - promoting the putting into operation of boats offering the levels of comfort and security that meet the standards in this industry; - bringing about the commissioning of specialized coaches for tourists on the CFCO lines. ### Promoting tourism and recreation - Promotion objectives: - Make the Congo as a destination available to the public through exploring national tourist potential and producing/publishing marketing material. - Improve organization of tourism and strengthen the tourism financing system. - Promotion activities: - Production and publishing of tourism marketing material; - Developing a tourist map of the Congo; - Developing long-distance trips in the Congo; - Creation and management of bodies promoting tourism and recreation: - Creation of a National Tourism Office; - Creation of the Agence Nationale de promotion du Tourisme et des Loisirs; - Strengthening tourism financing: - Reform of the Tourism Development Fund (F.D.T) in order to fund tourist and recreational activities; - Exploring national tourism potential: - Inventory and execution of the monographs of the tourist sites; - Creation of a Congolese tourist label product: ecotourism; - Creation of Tourist Information Bureaus (BIT); - Facilitating the procedures for issuing entry visas; - Negotiating charter tickets. ### Flagship projects (Table 40 — MAIN PROJECTS FOR THE DEVELOPMENT OF THE TOURISM INDUSTRY) - Development of tourist infrastructure and equipment — Development and rehabilitation of tourist and recreational sites include: - Development of the ODZALA National Park; - Development of the NOUABALE NDOKI National Park; - Development of the CONKOUATI National Park; - Development of the Lac bleu in MÂH village (Pool); - Development of the slave route; - Development of Lake NANGA; - Development of the DJOUE waterfalls; - Development of the LOUFOULAKARI Falls; - Development of the MINGUELE Falls; - Development of the MOUKOUKOULOU Falls; - Development of the DIOSSO gorges; - Development of the NKILA –NTARI caves; - Development of the INONI cliffs; - Development of the main Sacrée de SEMBE caves; - Development of LOUVAKOU lake (NIARI); - Development of the LEFINI reserve; - Development of the MALALA caves. - Construction of tourist and recreational infrastructure: - Construction of a theme park in BRAZZAVILLE; - Construction of a theme park in POINTE-NOIRE; - Construction of a world class hotel in BRAZZAVILLE; - Construction of a world class hotel in POINTE-NOIRE; - Rehabilitation of the MBAMOU Palace Hotel in BRAZZAVILLE; - Rehabilitation of the COSMOS Hotel; - Extension of the KOUYOU Hotel in OWANDO; - Construction of a tourist complex on MBAMOU island; - Development of a hotel development plan in BRAZZAVILLE and in POINTE-NOIRE. - Human resources development: - Creation of the Institut de Formation Touristique (I.F.T) (Tourist Training Institute) in BRAZZAVILLE. - Improving legal and regulatory framework: - Adopting new legislative and regulatory texts to make the tourism sector more attractive. - Improving management of tourist and recreational sites: - Improving the management of the different sites and State hotels. ### Anticipated employment in the tourism industry (TABLE 41) - Hotel Class / 2012 / 2013 / 2014 / 2015 / 2016 - 5* HOTELS: 4258511 4902 129 - 4*HOTELS: 9121 8253 6505 475 - RESORTS: 1482965931 037 - HOLIDAY VILLAGES: 2925841 0221 606 - CAMPING GROUNDS: 97146194292 - HOLIDAY CAMPS: 91146219292 - Total: 1 9653 8487 16810 831 - Source: ST/DSCERP and INT-DEC, data from the Ministry of Tourism ### Implications for growth, employment and state revenue - Expected outcomes: - Combination of favorable global market prospects and implementation of the Government’s program is expected to increase public and private investment in the sector. - The tourist industry could experience accelerated growth and create thousands of jobs in the coming years. - Projection: with implementation of the development strategy of the cluster, the hotel branch alone could generate around 15 000 direct jobs, distributed across the different classes of hotels. *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpt provided).* ### 880. Pension funds and social security funds still need to be further developed. They are ### 880. Pension funds and social security funds still need to be further developed. They are ### Pension and social security funds — assessment - Characterized by performance below expectation due in particular to: - a precarious financial situation - the absence of exhaustive accounting - the absence of a control and auditing mechanism ### Strategy and institutional framework (2009; 2012–2016) - Since 2009, the Government, with support of the international financial community, notably the International Monetary Fund (IMF), defined a strategy for the development of the financial sector as part of the Poverty Reduction and Growth Facility (PRGF) program. - During the period 2012-2016, the Government will: - implement this strategy - adopt additional actions focused on: development of non-financial services to businesses, setting up credit incubators, and creation of specialized institutions ### Modernizing the infrastructure and environment of the banking and financial system - Banks require considerable structural transformation in the Congolese economy and society to play their role in full. - Actions envisaged: - define common rules applicable to all public and private actors - strengthen monitoring systems for respecting these rules - provide an operational sanctions system for offenders - Specific actions to be carried out: - (i) strengthening the legal framework for ownership rights, in particular as concerns land, to facilitate the establishment of businesses and to rigorously establish bank guarantees - (ii) strengthen bankruptcy laws and put in place independent commercial courts capable of ensuring that business law is upheld - (iii) improving the rules and procedures for guarantees in order to encourage banks to engage more actively in the long term financing of businesses and large investment projects ### Developing the supply of banking services - Reorganization since privatization and restructuring of most commercial banks restored public confidence and supported Congolese banks opening abroad via foreign partners. - Increased competition due to establishment of new banks requires: - improved internal control and simplification of internal procedures - implementation of cost accounting to assess departmental performance - management systems by process or by activities to achieve cost competitiveness amid price competition (drop in cost of banking services, especially the cost of credit) - Banks must invest in production and analysis of credit information and explore high-risk market segments using new techniques; Government will encourage banks to develop cost competition and explore new client niches (e.g., SME segment). - Financial inclusion requires presence of credit and microfinance institutions with local agency deployment; Government intends to transform the Centre des Chèques Postaux (CCP) (Postal Check Center) into a postal bank to leverage the dense postal agency network for savings collection and banking services for marginalized populations. - Creation of a Caisse de Dépôts et Consignations: - to manage funds protected by law and serve as reference banker for legal professions and social security/general interest organizations - to overcome absence of an institution specialized in management of funds protected by law - to enable long term recycling of savings collected by the social security fund through financing of general interest projects (social housing, urban renewal, transport infrastructure, hospitals property, etc.) - as a tool to support territorial authorities ### Promoting long term financing - Actions to facilitate long term financing: - (i) mobilization of medium term internal resources through attractive savings products and expansion of the sub-regional financial market - (ii) implementation of targeted reform of certain prudential standards considered restrictive by banks (processing coefficient, division of risks) ### Developing non-financial services to businesses — FIGA (Fonds d’Impulsion, de Garantie et d’Accompagnement) - Need to create new sources of capital and alternatives to classic commercial banks offering loans and non-financial support to SMEs and TPEs. - FIGA-PME/A basic activities (three complementary threads): - impetus: co-financing projects for creation and development of SMEs and artisans through granting additional loans to those already granted by financial and banking partners; granting of loans subordinated by the FIGA-PME/A which reduces the risk for the financial partner or banker - guarantee: partial contribution to the guarantee required by the financial partner or banker; the fund enables the financial or banking organization to partially cover his/its own risk - support: provision of financial techniques required to draft business and financial plans to make projects eligible for bank loans - FIGA support phases: - pre-creation support: guide promoters on target market and product, competition, motivation, training and experience, advice on strengthening capacities, awareness of legal/regulatory/administrative obligations - post-creation support: assist promoters in first managerial decisions; regular reporting to detect financial, administrative and commercial problems in time - FIGA additional missions: - training of promoters/business leaders in preparation of accounting records and certification of accounting practices of SMEs to address lack of reliable bookkeeping - act as SME observatory centralizing documentation and accounting information; observatory’s database fed by certified financial statements on SMEs to provide information to banks, tax authorities, and act as investment promotion tool - strengthen SME equity through grants conditioned on increase in equity and subordinated loans; such financing will be subordinated to bank loans ### Creating credit support tools - Identified support tools: security rights (mortgages, pledges), credit bureau, and central balance sheet data. - Constraints: - constitution of mortgages faces prohibitive cost and unwieldy process; authenticity issues due to judicial system malfunctioning - banks prefer surety, which SMEs have difficulty obtaining - Government responses: - entrust FIGA with guaranteeing credits that financial institutions grant to companies, particularly SMEs, to reduce aversion of microfinance institutions to SMEs - pursue land reform to facilitate constitution, authenticity, and realization of mortgages in case of debtor default - reforms to improve business framework to relieve liquidation procedure of insolvent companies - Central Bank actions: - put in place a bank risk bureau to centralize all bank undertakings; provides banks with level of commitment of their clients towards the entire banking system and enables detection of bad debtors - current risk bureau limitations: does not cover all financing institutions, in particular microfinance institutions - Government will: - assist microfinance establishments in developing a centralization tool for their outstanding credits - improve quality and broaden scope of information produced by the current bank risk bureau (to include the postal bank, the Caisse de Dépôts et Consignations, etc.) - put in place a centrale de bilans des entreprises congolaises (Central Balance Sheet Office) as part of reforms aimed at facilitating credit to companies (response to delays in a Central Bank–initiated CEMAC project) ### Modernizing the microfinance sector - Historical development phases: - first: 1980s emergence of cooperatives and credit unions with absence of regulations - second: halt in proliferation and harmonization of regulations in the CEMAC zone in 2002 - third: from 2005, application of the regulatory framework - Sector performance indicators (2009): - volumes of deposits represented 14,4% of the entire financial system in 2009 - volumes of credits represented 9,1% of the entire financial system in 2009 - Sector weaknesses: continued drop in number of microfinance institutions and fragile financial situation of some institutions - Required actions: - establish an efficient system of supervision; supervision must be provided by the Monetary Authority due to partial coverage by the Banking Commission and staff shortages - strengthen organizational, material, human and technical capacity of the microfinance department within the General Directorate for National Financial Institutions - organize a census of all institutions and close those operating in contravention of the regulatory framework - assist reorganization of the profession through revitalization of the Association Professionnelle des Etablissements de Micro finance (APEMF) - implement a draft accounting plan for microfinance institutions accompanied by software; facilitate adoption and provide training sessions for supervisory agents and operators - facilitate partnerships between APEMF and specialized institutions for capacity strengthening - encourage independent microfinance institutions to form networks to consolidate market share and financial standing; promote microcredit underwritten by mutual guarantee, notably in rural areas ### Promoting an APEC-APEMF partnership - Issue: banks refinance via the Central Bank, but microfinance institutions lack refinancing mechanisms for credit they grant; relations with banks are not dynamic. - Government will promote collaboration between APEC and APEMF to: - facilitate procedures for opening bank accounts with microfinance institutions - relax conditions for granting bank credit to microfinance institutions - Condition for success: improvement in accounting practices of microfinance institutions to enable banks to better understand associated credit risks - Practical measure: recourse to approved management centers to improve presentation of documents, financial transparency, reporting to supervisory authorities, and cost-sharing to reduce cost of producing accounting documents ### Insurance sector and finalization of social security and pension fund reorganization - Insurance sector shortcomings: - weakness of the national control institution (la Direction des Assurances) - non-observance of regulations - financial fragility of existing companies - non-respect of prudential ratios prescribed by the Conférence Interafricaine des Marchés d’Assurances (CIMA) - Consequences: - poor use of insurance premiums, making companies incapable of indemnifying all claims within required time limits - wariness of economic agents to honor obligations of insurance policy subscriptions *National Development Plan CONGO DSCERP 2012-2016 — content unit _cr12242 (excerpt)* ### 913. To remedy these facts, the Government will consolidate the activities of control of the ### _cr12242 - 913. To remedy these facts, the Government will consolidate the activities of control of the ### Insurance sector reform and supervision - Government will consolidate control activities of the sector to ensure respect of the regulatory mechanism and prudential standards by insurance companies. - Direction des Assurances has been reorganized and will be equipped with consequent material, financial and human resources. - Direction des Assurances has integrated the Direction générale des institutions financières nationales. - Government will finalize the reform of the ARC (Assurances et Réassurances du Congo), increase the capital of other insurance companies, and simplify conditions for approval of insurance intermediaries (general agents and brokers). ### Pension funds reform and social security coverage - Two pension funds, Caisse Nationale de Sécurité Sociale (CNSS) and Caisse de Retraite des Fonctionnaires (CRF), are in a fragile financial situation. - Recent Government-funded audits highlighted weaknesses: lack of exhaustive accounting records, absence of regular controls and audits, and ineffective documents. - Reform focus: - Adaptation of the regulatory framework to the new economic environment (pension system through an allocation requiring regular adaptation of the regulatory framework). - Execution of an auditing plan of State arrears vis-à-vis these two funds. - Strengthening the control mechanism. - Government intends to finalize this reform over the next five years. ### Promoting specialized financing institutions (leasing, property financing, agricultural finance) - Current specialized structure: Fonds de Soutien à l’Agriculture (FSA) specialized in financing agricultural activities. - Leasing: - 2009 Conseil National du Crédit survey highlighted widespread ignorance of leasing among SME managers. - Disappearance of SOCOFIN led to near disappearance of leasing; after 2010 takeover by BGFIBANK, leasing is offered by BGFIBANK-CONGO as another financial product. - No fiscal measures planned to encourage leasing development; current fiscal framework does not sanction staggering of VAT over rental period and does not transpose tax advantages for leasing contracts. - No mechanism for tax exemption of assets leased to companies benefiting from tax exemptions (notably oil and gas companies with dispensatory tax regimes regarding VAT), reducing their inclination to use leasing. - Government will put in place regulations to organize leasing activity, following examples in Maghreb countries, Tunisia in particular. - Property financing: - Success of ongoing land reform is perceived as necessary for development of property financing through securing the procedure for constitution and realization of mortgages. ### Payment methods, money transfer activity, and oversight - Development of domestic fund transfer activity by non-authorized economic operators, driven by population demand due to simplicity (no bank account required) and speed enabled by new information and communication technologies. - Risks: laundering concerns and need for improved control by the Monetary Authority. - Government actions: - Conduct an inventory of economic agents other than credit or microfinance institutions practicing fund transfers. - Promulgate specific legislation to achieve true supervision of the activity. - Reorganize transfer-of-funds activity through laws, operator inventory, and strengthened sector control. - Oversee observance of laws governing activities of exchange dealers. ### Strengthening the National Credit Council (CNC) - CNC: consultative organ for financial services development policy, especially credit policy; governed by law no. 24/63 of 15 June 1963. - Institutional changes (creation of COBAC) and harmonization in the CEMAC zone rendered CNC organic texts obsolete. - Process of updating CNC organic texts is underway to revise statutes and broaden CNC’s brief. - Government intends CNC to fully participate in implementation of measures in the financial sector development strategy. ### Encouraging public-private partnerships (PPPs) and investment fund mechanism - State will establish a framework for PPPs (service contracts, management contracts, leases, concession contracts) for public services such as electricity, water and transport. - Due to high level of idle budget savings earning low interest at the Central Bank, Government will establish a mechanism to direct these savings toward private investments. - Government will sign a management agreement for part of budget savings with an investment fund of international standing; State will indirectly participate in financing major projects through this fund. - Investment fund must open a branch in Congo and its capital will be open to local private investors and international financial development institutions. - To comply with the convention governing the Central African Monetary Union (UMAC), particularly repatriation of foreign reserves, capital collected by this fund must be used solely to finance projects in the BEAC issuing area. ### Expected impacts on growth, employment and state revenues - Financial services development expected to contribute to increasing supply of jobs via entry of new banks and opening of new agencies. - Development of banking network will expand support activities: transport of funds, sale of specialized equipment and supplies, security services for branch surveillance and teller counters. - Development of insurance and brokerage sectors will also increase job supply. - Banking and insurance sector development will facilitate financing of economic activities and make a strong contribution to economic growth in terms of GDP. ### Characteristics, constraints and challenges of the private sector - Private sector largely underdeveloped and dominated by informal activities; a few large, mainly foreign, companies form the formal sector. - Out of roughly 22 477 companies identified from 1996 to 2006: - 97.5% are Very Small Enterprises (VSE). - 2.4 % are Small and Medium Enterprises (SMEs). - 0.1 % are large firms. - Trade accounts for more than 80 % of registered businesses; industrial sub-sectors are embryonic with poor primary-secondary-tertiary integration. - Market narrowness (excluding extractive industries) limits private sector; regional integration could expand market to 30 million at CEMAC level and well beyond 200 million by expanding to DRC, SADC and ECCAS. - Business environment constraints: - Institutional/administrative: lack of market and technological information, low computerization of ministerial structures, weak SME support structures, multitude of red tape. - Regulatory: poor adjustment of legislation and taxation, excessive tax burden. - Economic/financial: narrow market, high production costs, lack of specialized banks, difficulties accessing credit due to absence of operational security and risk management systems. - Weak infrastructure and lack of managerial skills hamper SME and craft promotion. - Congo’s rankings in "Doing Business" reports are below what's required; country dropped in rankings in 2010 and 2011; construction sector ranks above the median in granting building permits. - Low direct foreign investment outside extractive industries; majority of local enterprises remain in informal and farming sectors with low capacity and no scale effects, impeding diversification, modernization and industrialization goals. ### Government actions to strengthen private operators and improve business climate - Five focal points: 1. Strengthen dialogue with private sector to reduce red tape and ease incidental tax burdens; render operational the High Council of Public-Private Dialogue (HCPP). 2. Improve functioning of commercial courts and create arbitration courts to facilitate settlement of commercial disputes, leveraging OHADA Uniform Act benefits (speed, confidentiality, cost predictability). 3. Promote autonomy of private sector via independent employers' bodies to ensure representation and sector regulation, reduce corruption, encroachment and predation by the public sphere. 4. Improve functioning of Centre for Business Formalities (CFE) to ease business creation procedure and strengthen public service provision by improving public administration productivity and continuing infrastructure building (electricity, transport and communication). 5. (Implicit in context) Continue broader reforms to facilitate access to credit, enhance competitiveness and support SME development. *National Development Plan CONGO DSCERP 2012-2016* ### 943. Fifth, in order to alleviate the scarcity of skilled labor, the education system will be ### _cr12242 - 943. Fifth, in order to alleviate the scarcity of skilled labor, the education system will be ### Strengthening private sector financing institutions (FIGA) - Objective: Support SMEs and very small businesses (VSEs) by creating funding sources and alternatives to traditional commercial banks that provide both loans and managerial support. - Creation and role of the Impetus Guarantee and Support Fund (FIGA): - Provide "ante-creation" support during project development to guide developers on: market and product target, competition, motivation, training and experience of the applicant, and referrals to capacity building. - Provide "post-creation" support to assist new entrepreneurs with initial managerial choices and regular reporting to detect financial, administrative and commercial problems early. - Train developers and business leaders in the preparation of accounting records and certify the propriety of accounting practices of SMEs to address lack of reliable bookkeeping, an obstacle to bank financing. - Act as an SME observatory by centralizing documentation and accounting information on SMEs; the observatory’s database will be fed by certified financial statements and will provide information to users (banks, tax authorities, ...). - Strengthen SME equity through grants, conditioned by an increase in equity and subordinated loans; such financing will be subordinated to bank loans. - Risk mitigation: - FIGA will guarantee loans that financial institutions grant to companies, especially SMEs, to reduce banks’ and microfinance institutions’ aversion caused by SMEs’ limited collateral. ### Encouraging foreign investors and public-private partnerships - Improve the investment climate to attract foreign investors and facilitate financing of major projects. - Establish a framework for public-private partnerships in the form of service contracts, management contracts, leasing or concessions, focusing on public services such as electricity, water and transport. - Channel idle budget savings into private investment: - Government will establish a mechanism to channel idle budget savings and will sign a management agreement with an internationally renowned investment fund for a portion of budget savings. - The chosen investment fund will open a branch in the Congo, with its capital base open to local private investors and international development institutions (World Bank, African Development Bank, French Development Agency, ...). - To comply with the agreement governing the Monetary Union of Central Africa (UMAC), particularly regarding repatriation of foreign exchange reserves, capital raised by this fund will be used exclusively for financing projects located in the BEAC’s zone of issue. ### Reducing factor and transaction costs; improving competitiveness - Diagnosis: - The Congolese economy is not very competitive despite large potential and government efforts; weaknesses remain in accountability and a judicial system that ensures business law. - Low-quality inputs, weak physical and human capital, and past excessive nationalization represent significant costs for the private sector. - Strategic priorities to render the economy competitive: - (i) Improve the business climate to fight unemployment and strengthen non-oil revenues by creating production units. - (ii) Address health, education, water and electricity to strengthen human resources and basic productive services. - (iii) Increase physical capital through a rational infrastructure development policy. - (iv) Develop the financial sector to improve intermediation and foster private sector development. - (v) Increase institutional capacity of private sector organizations to support business development. - Six implementation axes (summary of focus areas): - Intensify internal adjustment of businesses to align managerial skills and behaviors with modern management rules. - Capacity building of representative employers’ and professional organizations. - Rationalize and strengthen support mechanisms for the private sector to: - ensure promotion of investment and exports; - ensure rational support and technical/technological assistance; - promote quality and standardization; - improve companies’ access to finance. - Revitalize consular chambers as interface between public and private sectors. - Establish control systems for energy, water and telecommunications sectors. ### Strengthening trade policies and instruments - Strategic goal: Structural transformation to reduce dependency on oil revenue and volatility; achieve higher growth driven by the private sector. - Trade policy objectives: - Improve upstream competitiveness by reducing production costs (import costs and internal transaction costs). - Improve downstream competitiveness through trade facilitation and export promotion, including locating outlets for Congolese products and consumer protection. - Three main axes of the Government’s trade strategies: - (i) Stabilizing the national business environment. - (ii) Strengthening trade policy instruments and promoting Congolese exports. - (iii) Maximizing benefits of regional integration and international trade cooperation. ### Stabilizing the domestic trade environment — key measures - Improve conditions of access to trade professions: - Redefine tasks of one-stop windows (CFE). - Respect the regulatory deadline for issuing the trader’s card. - Review registration of businesses in the Trade and Personal Property Credit Register, taking into account recommendations of the OHADA convention held in Brazzaville and Pointe-Noire in November and December 2010. - Reconsider payment of a fee of 1 % of the capital as a guarantee fund at the creation of an establishment (for foreign economic operators) with regard to the provisions of Law No. 019-2005 of 24 November 2005 regulating the exercise of the trade professions in the Republic of Congo. - Introduce legislation to promote competition and protect consumers: - Current framework includes provisions of Law No. 06-94 of 1 June 1994 regulating prices, trade norms, recognition and prevention of fraud, but lacks comprehensive competition and consumer protection law. - Develop a competition law and consumer protection law, including provisions to fight cartels, mergers and abuse of dominance. - Establish a regulatory authority (National Competition and Consumer Council) to oversee implementation; develop laws and regulations based on guidelines in CEMAC’s regulations. - Establish an institution for mediation and arbitration: - Create an alternative institution for settlement of commercial disputes in line with OHADA recommendations from November and December 2010 conventions. - OHADA law recognizes alternative dispute resolution institutions and provides legal basis; OHADA Court of Arbitration is housed within the OHADA Common Court of Justice and Arbitration, headquartered in Abidjan. - Liberalize prices and lift import restrictions: - Government committed to liberalizing prices and lifting import restrictions on general consumer goods to promote competition and reduce import and consumer costs. - Reduce the special levies burden: - Review many tax and special levies imposed by various jurisdictions; assess cost implications for operators and gains for the State. - Action plan to: - assess impact and remove levies of no use; - reduce burden on cost price of economic activities to improve competitiveness; - fight red tape and corruption resulting from these practices. - Note: payment of illegal levies never gives rise to billing and becomes a source of price speculation. - Facilitate trade (streamline cross-border goods flow): - Implement program to: - simplify customs procedures (customs declaration, clearance of goods, inspection, etc.); - reduce cost of port charges (port tax, transportation costs, handling, stevedoring, storage, transit, etc.). - Observation: Congo’s stevedoring costs are the highest in Africa; Port of Pointe-Noire is among the most expensive in Africa per INCOTRANS study commissioned by the Congolese Shippers’ Council. - Main cause identified: multiplicity of administrative controls within the Port of Pointe-Noire by multiple State services (Customs, Port Authority services, gendarmerie, police, territorial surveillance brigade, Ministry of Commerce, Taxation department, Ministry of Livestock and Agriculture, Ministry of Health, etc.), many carrying out inspections and taxing operators in violation of existing laws. - Trade facilitation aims to save time, reduce import and export costs, and improve national competitiveness; aligns with ongoing WTO negotiations. ### Next steps (transition to export development) - Implement the export development strategy and provide better support to companies in conquering foreign markets. *National Development Plan CONGO DSCERP 2012-2016 — excerpt.* ### 958. Exports represent a powerful lever for economic development. In the future strategy for ### _cr12242 - 958. Exports represent a powerful lever for economic development. In the future strategy for ### Export development strategy: objectives and pillars - Objective: develop the full export potential of Congolese companies by focusing their activities on foreign markets. - Strategic intent: major changes to business support mechanisms and the technical and financial assistance granted by the Government. - Four areas of action: - Adoption of a continuous and modulated support approach. - Strengthening of exporter services: - (i) development of export knowledge (information dissemination, training and consulting); - (ii) carrying out group missions and participating in fairs (trade missions and participation in fairs abroad); - (iii) support provided by the economic services of the network of Congolese representation abroad (business intelligence, contacts search, acquisition of market information and assistance in business meetings etc.); - (iv) support for the company’s export strategy. - Establishing export partnership networks to facilitate the creation of clusters in order to increase exports. - Enhancing public/private sector collaboration for the development of exports, including establishment of trade defense instruments (anti-dumping, anti-subsidy, quotas, trade barriers). ### Trade defense measures and institutional capacity - Rationale: ensure fair and transparent trade and protect domestic industry from harmful foreign trade practices within WTO rules. - Key capabilities to develop: - Ability to prove that dumping is taking place, calculate the extent of dumping (compare export price to the exporter’s domestic market price), and demonstrate material injury or threat of injury. - Capacity to apply safeguard measures when a surge in imports causes or threatens injury to domestic industry. - Use of WTO dispute settlement to seek withdrawal of subsidies or removal of adverse effects. - Ability to conduct independent investigations and apply "countervailing duty" on subsidized imports found detrimental to domestic producers. - Priority actions: - development of regulations and institutions to provide trade defense; - capacity building of competent administrations for control and use of trade defense instruments provided in (bilateral and multilateral) agreements. - Ancillary infrastructure: Creation of a quality control laboratory. ### Metrology, standards, certification and SPS (sanitary and phytosanitary) - Metrology actions: - helping implement an internationally recognized metrology; - developing closer collaboration between stakeholders working in the area of standards; - improving the quality of metrological services and making them accessible to users; - managing a national directory of manufacturers, authorized repairers and importers of measuring instruments; - encouraging companies to develop instruments tailored to their needs. - Requirements: - establishment of laboratories equipped with different secondary standards of reference, necessary for a compliance monitoring system; - effective participation of Congolese experts in the work of international standardization and metrological organizations: Codex Alimentarius, International Bureau of Weights and Measures (BIPM), International Organization of Metrology (IOM) etc. - Certification and quality challenge: - Need to develop and raise technical, sanitary and phytosanitary standards to at least internationally recognized levels to allow safe marketing of food products. - Recognizes that developed countries may adopt more stringent standards than international bodies, raising barriers. - Proposes a pragmatic "Congo Quality" system backed by accreditation, certification, standardization, quality promotion facilities and SPS to facilitate progressive compliance, with emphasis on standards of the European Union. ### Storage, preservation and market regulation infrastructure - Current gap: severe shortage of food storage and preservation facilities necessary for proper market regulation. - Policy: - Implement a program to construct storage and preservation facilities in major cities. - Build storage warehouses in all divisions over time; immediate priority: Brazzaville and Pointe-Noire. - Warehouses to be built with public funds and managed according to yet-to-be-determined mechanisms. - Social/economic rationale: project aligns with national strategy for combating the high cost of living, central to Government policy. ### Institutional support: Chambers of Commerce and exhibition infrastructure - Revitalization of Chambers of Commerce: - Assigned tasks: defending interests of economic operators; supervision and training of operators; promotion and management of economic activities; contributing to development of national economic policies. - Current weakness: tasks are not effectively carried out; national restructuring process launched in 1995 remains incomplete. - Current coverage: Brazzaville, Pointe-Noire, Niari and Sangha divisions each have a Chamber of Commerce; Likouala Division has a consular delegation. - Plan: complete installation of consular delegations and introduce new management after elections at all levels. - Construction of exhibition centers: - Need: facilities to host trade promotion events such as fairs and product showrooms; current Pointe-Noire fair premises are inadequate for serious industrial exhibitors. - Proposal: - invest in large exhibition centers in Brazzaville and Pointe-Noire; - build moderately large showrooms in other divisions; - consider specialized exhibition halls for sectors with existing skills but unsatisfactory product quality, e.g., sewing (clothing), carpentry (furniture), agriculture (agricultural show). ### WTO Reference Center and trade information dissemination - Support creation of WTO reference centers as public structures for technical processing and dissemination of multilateral economic and commercial information. - Objective: allow government officials, business communities, university lecturers and students access to trade information available on the WTO website. ### Revitalizing trade in services and trade policy orientation - Historical and recent shares: - services sector accounted for around 50 % of national GDP in the 60s and 70s; - services sector represented only around 30 % of GDP over the 2008-2011 period. - Evidence: countries that regulated and liberalized trade in services recorded higher average growth than others; potential gains from liberalizing trade in services are around four times those from liberalizing trade in goods. - Priority actions: - consolidate gains from past liberalizations and improve efficiency of priority service sectors and subsectors; - Ministry of Trade and Supplies to supervise progressive liberalization of trade in services through successive rounds of negotiations and support implementation of sector programs. - Expected benefits: - increased economic performance stimulated by competition; - development of the service sector through global market access; - lower consumer prices through free competition (particularly in telecommunications); - acceleration of innovation, mainly in telecommunications, financial and information technology services; - technology transfer facilitated by foreign direct investment. - Protection of domestic production: - Trade policy should avoid protectionism but seek mechanisms, in line with CEMAC customs regulations and WTO rules, to protect domestic economic activities by changing the system of economic incentives. - With Economic Partnership Agreements (EPAs) between the EU and CEMAC about to be signed, Congo will implement an incentive policy for differentiation of production. - Proposal to work with other CEMAC States to define a different pricing structure for effective protection of local production via differential rates on imports of inputs and finished products. - With EPAs, mutual abolition of customs tariffs should enable Congolese products to enter the European market, but non-tariff barriers (technical standards, health standards) require measures to ensure positive effects. - Use EU funding to organize "clusters" (business groups) and develop geographical indications, following examples like Tunisia. - Cluster approach: - Organize sectors (e.g., fisheries products, agriculture, forestry) into clusters to implement technical assistance for upgrading companies and coordinating networks. - Clusters facilitate co-financing by development partners and contributions from business networks. - Geographical indications development to provide international market protection, particularly in Europe. - Additional actions to facilitate global market access: - strengthening capacities of trade promotion structures with emphasis on production standards and product quality; - facilitating access to public contracts by the national private sector, particularly SMEs/SMIs; - facilitating access by Congolese products (Made in Congo) to domestic and foreign markets. ### Regional integration and international cooperation: strengths and strategic orientation - Strategic geography: - Congo considered a "Corridor" in the heart of Central Africa, opening Central African Republic and Chad, bridging CEMAC (around 30 million people) and Southern Africa/DRC (DRC more than 60 million inhabitants) and the SADC region (over 340 million inhabitants, including South Africa), and East African Community countries (EAC, Uganda, Kenya, Tanzania, etc.). - Memberships: - Congo is a member of CEMAC, created in 1994 from UDEAC, which includes Cameroon, the Central African Republic, Gabon, Equatorial Guinea and Chad. - Congo is also a member of ECCAS, which includes the six CEMAC countries plus Angola, Burundi, Democratic Republic of Congo and São Tomé and Principe. - Domestic market constraint: - Congolese domestic market remains very narrow (about three million consumers), limiting competitiveness gains from economies of scale. - Policy response: deepen economic openness to conquer foreign markets, starting with CEMAC and ECCAS sub-region, to support industrialization and agricultural development by expanding market share and increasing production scales. - International market strategy: - Promote multilateral agreements, especially with emerging countries, and leverage existing agreements such as AGOA and the EPA currently being negotiated. - Bilateral cooperation: - Government seeks to diversify trade agreements with different partners, selecting partners based on receptiveness to work in a spirit of solidarity and mutual respect. *National Development Plan CONGO DSCERP 2012-2016 — Extract covering paragraphs 958–972* ### 973. It is within this context that everything must be implemented to benefit greatly from the ### _cr12242 - 973. It is within this context that everything must be implemented to benefit greatly from the ### AGOA, EPA, and trade opportunities - The U.S. Growth and Opportunity Act (AGOA) gives African countries south of the Sahara an opportunity to promote investment and increase trade. - A national forum on AGOA is scheduled to be held in Brazzaville in 2012 to identify the Congo’s needs and to adopt a consensual roadmap for implementing cooperation programs. - The Economic Partnership Agreement (EPA) under negotiation between Central Africa and the European Union is an opportunity if the Agreement is balanced, takes into account the needs of trade-off for loss of customs revenue and strengthens the supply capacities of the States of the sub-region. ### Multilateral cooperation and Aid for Trade - The Congolese Government is preparing to develop its national Aid Strategy for Trade to generate support from donors (World Bank, IMF, ADB, EU and other developed countries) to develop economic and commercial activities. - Aid for Trade: initiative of the WTO adopted at the 6th Ministerial Conference in Hong Kong from 13 to 18 December 2005, with support from the World Bank, UNCTAD, the International Trade Centre and various donors; main objective is to provide support to developing countries, especially to LDCs in capacity building related to trade. ### Strengthening integration within the CEMAC zone - Despite being a customs union, CEMAC does not guarantee free movement of goods across Member States due to distortions from non-tariff barriers and unwritten rules. - Implementation of community acts suffers from a "lack of political will". - Share of intra-regional trade within CEMAC does not exceed 5% of foreign trade of member countries. - Exports from the Congo to CEMAC represent 3% of intra-regional trade, destined mainly for Gabon. - Imports from CEMAC to the Congo: 43.6 percent, made up mainly of food products from Cameroon. - In ECCAS, intra-Community trade is insignificant and shows a downward trend. ### Factors accounting for weak intra-community trade - Six factors: - (i) insufficient efforts by member countries to remove barriers to intra-Community trade, particularly in the area of communications infrastructure; - (ii) a trade policy that suffers from a weak industrial fabric, inadequate diversification and the dominant role of single production; - (iii) insufficient financial resources; - (iv) a lack of respect for treaty obligations; - (v) the inability to prevent and resolve conflicts decisively; - (vi) the persistence of national self-interest with numerous administrative controls hindering movement of people, goods and services. ### Recommended adjustments to strengthen integration - Harmonizing the rates of customs duties actually applied by each Member State, and also taking into account exemptions. - Combating double taxation where goods pay customs duties at each border en route to final destination. - Removing tariff and non-tariff barriers. - Identifying, evaluating and reviewing protectionist measures taken by each Member State in violation of community regulations. - Harmonizing trade norms in the CEMAC zone. - Creating common markets by product (case of the OCM - CEMAC SUGAR) to promote cooperation between industries of the sub-region. - Example: CMO-CEMAC SUGAR enabled the Congo to overcome the 2006 obstacles created by CAMEROON; currently, over 50% of sugar produced by SARIS CONGO is sold in the sub-region (in CHAD and CAMEROON) through the facility put in place under the CMO -CEMAC SUGAR. ### Strengthening integration in ECCAS and Southern Africa - Trade cooperation instruments established in 2004 for a free trade zone are not working due to lack of political will and absence of reliable trade-off mechanisms for losses in customs revenue. - Plans existed to create a customs union within ECCAS in 2008 (recall). - The way forward: revive and enforce the Free Trade Agreement of 2004 and apply the same measures as for CEMAC (harmonization of tariffs, elimination of tariff and nontariff barriers, fight against double taxation, commercial standards, and clear rules of origin). - Intensify trade relations with the DRC and leverage DRC membership of SADC to access the booming market of Southern Africa. - Note on multiple REC affiliations: membership in several RECs causes stress due to difficulties in honoring financial contributions and belonging to more than one Customs Union at a time. ### Regional natural-resource and ecosystem considerations - Central Africa has potential: oil from the Gulf of Guinea, large deposits of metals and minerals, huge water resources from the Congo-Ubangi-Sangha basin and the large lakes, second largest forest massif. - Financial valuation of the absorption of 500 million tons of carbon monoxide for the benefit of all mankind and offsetting emissions elsewhere would be legitimate. - Any investment, especially in infrastructure, should take into account the preservation of the ecosystem and biodiversity of the region. ### Inland waterways and multimodal alternatives - Dense inland waterways with high potential are underutilized and should be developed as complements or substitutes for roads in some areas, offering multimodal alternatives similar to the Mekong Basin and the Amazon Basin. ### “Corridor” policies: border markets — objectives and structure - Aim: open foreign markets to Congolese products, improve supply to remote rural areas, and promote sub-regional integration. - Expected positive impact on income of rural producers. - Two-level organization linked by regular periodic transport: - (i) border cities near the borders; - (ii) other “strategic” sites (regional group markets). ### Design and roles of cross-border and regional group markets - Border markets: - Located near borders, easily accessible by road or river from the Congo and neighboring countries. - Infrastructure sized to local products, made available to producers and traders. - Products from remote areas could be routed directly or through regional group markets for display and export. - Regional group markets: - Set up in a few strategic locations with larger infrastructure depending on product characteristics and quantities. - Cater to border markets, receive products collected in these markets for channeling to consumption areas or other borders. - Accommodate products from non-border areas to make them available to buyers from neighboring countries. - Transport systems will connect the two "poles" on a regular basis; private sector involvement encouraged, with probable government role in river transport. - Government will implement an investment program for the creation and functioning of markets in Ouesso, Impfondo, Oyo and Dolisie. ### Specific regional group market roles - Ouesso: - Interconnected to Souanké, Ngbala and Kabo border markets. - Role: display products for export to Cameroon and the CAR. - Impfondo: - Interconnected to Betou and Dongou border markets. - Role: display products for export to the CAR and the DRC. - Oyo: - Connected to border markets of the Congo River at Liranga, Loukolela, Mossaka, Bouemba Mpouya and Ngabe (border with the DRC), and to Lékéty (border with Gabon). - Role: transit point for Congolese products to DRC and Gabon and an integration infrastructure for trade between Gabon and the DRC. - Dual mission: channel food production from Gamboma (south) and Owando/Makoua (north), and fishery products from the river and Alima. - Infrastructure and border annexes will be equipped with cold storage facilities and fishponds for species that can withstand prolonged captivity. - Cargo vessels will be designed to receive frozen and live products and forward them within required standards. - If the road connecting Liranga-Impfondo is built, Liranga border market could develop into a regional group market with links to Impfondo, Bangui (road/river), and Oyo (river). - Dolisie: - Connected to border markets of Mindouli (border with the DRC), Bambama, Mbinda and Nyanga (border with Gabon), and Tchamba-Nzassi Kimongo (border with Cabinda, Angola); communicates with Bas Congo in the DRC. - Primary objective: channel production in the Niari valley and Bouenza for export to the DRC, Gabon and Angola. - Depending on livestock development, the market should include a slaughterhouse and adequate cold storage to become a national meat center. ### Interconnection and complementarity - Regional markets should be interconnected based on potential demand studies in neighboring countries. - Cross-border market organization will be closely linked to domestic product collection, storage, and major export facilities in Brazzaville and Pointe-Noire. ### “Corridor” policies: infrastructure priorities - To benefit from integration the Congo must: - (i) improve the energy sector as part of the drive towards regional integration of energy markets; - (ii) improve navigability on the Congo River, especially Alima, Ubangi and Sangha tributaries, as part of corridors policy; - (iii) fully rehabilitate the rail company, CFCO, to determine traffic potential with the DRC and CEMAC countries and fully enjoy opportunities from modernization and extension of the Pointe-Noire Port Authority. - Key intervention areas to play the role of transit country and draw competitive benefits: - the corridor from Pointe-Noire connecting timber concessions in northern Congo (improvement of inland waterways and railways) is most interesting for investment; - the road corridor from Brazzaville to Ouesso is highly attractive if associated with development of rural roads; - investment along the Pointe-Noire-Brazzaville corridor will develop significantly if extended to the DRC (including the bridge) and/or to the CAR (including the river); - restructuring public utilities (water, electricity, telecommunications) should reduce costs and attract IDEs; - energy investments will be more profitable if coordinated regionally with Cameroon; - improve management capacity and exploit public-private partnership opportunities in infrastructure management; - simultaneous implementation of transport and electricity interventions should significantly improve Congo’s ranking in regional integration. ### Migration, migrants’ contributions, and remittances - Emphasis on: - improving regulations for recruitment of migrants in developing countries, - creating incentives to promote the return of migrants, - maximizing contribution to development by migrant communities, including remittance management. - A comprehensive approach should include: - ensuring integration of migration in development frameworks and strategies against poverty; - effective management of remittances; - mobilization and involvement of the diaspora and transnational networks in development strategies; - facilitating the return and reintegration of migrants; - comprehensive and targeted assistance programs for labor-focused migration. ### Table 44 — Strategic position of the Republic of Congo and the potential to increase revenues (selected figures) - Total imports — Volume: Actual s 0.90; Additional potential total 1.05; Overall total 1.95 (million tonnes per year) - Total imports — Value: Actual s 2,329 (US$ m. per year); Additional potential total 2,718 (US$ m. per year); Overall total 5,047 (US$ m. per year) - Transport revenue (imports): Actual s 645 (US$ m. per year); Additional potential total 711 (US$ m. per year); Overall total 1,356 (US$ m. per year) - Customs revenue (imports): Actual s 121 (US$ m. per year); Additional potential total 142 (US$ m. per year); Overall total 263 (US$ m. per year) - VAT revenue (imports): Actual s 252 (US$ m. per year); Additional potential total 315 (US$ m. per year); Overall total 567 (US$ m. per year) - Total trade (imports) — Total revenues: Actual s 1,018? (table formatting unclear in source) — see source table for full layout and totals - Exports of wood — Volume: Actual s 1.00; Addition 0.90; Overall total 1.90 (million tonnes per year) - Exports of wood — Value: Actual s 1,000 (US$ m. per year); Addition 550 (US$ m. per year); Overall total 1,550 (US$ m. per year) - Exports of wood — Transport revenue: Actual s 7 (US$ m. per year); Addition 0 (US$ m. per year); Overall total 14? (US$ m. per year) — see source table for exact cell relationships - Exports of wood — Customs revenue and VAT revenue: cell values appear in source table (e.g., Potential Republic of Congo 0.20 volume and 2? value entries) — consult the original table for exact cell mapping. (Note: Table 44 in the source contains a multi-column layout with cells whose exact row–column alignment may not be fully unambiguous in plain text extraction; consult the source table for precise cell associations.) ### Chapter 10: Building infrastructure — framing and financing - Building infrastructure is a link in the chain of "virtuous circles" for transformation and emergence of the Congo. - Infrastructure strategies and human resources are costly in investment and maintenance. - Special attention is paid to innovations in financing investments, particularly various public/private arrangements. - Synchronization of investment programs (railways, roads, river/sea) is examined with great attention. - Significant regional opportunities exist by virtue of Congo’s position as "corridor" and frontier between Africa and West/Central, and East Africa. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12242.pdf* ### 999. As part of the implementation of the PRSP-1, as recalled above, the Government has ### _cr12242 - 999. As part of the implementation of the PRSP-1, as recalled above, the Government has ### Overview - The Government has made significant investment efforts for the development of basic infrastructure but faces many challenges because the Congo began very late after the crisis years of 1992 to 1997 to modernize infrastructure. - Goal: achieve a minimum level of modernization of infrastructure capable of pushing the Congolese economy to an emergence rate. ### Development of transport and public works infrastructure — summary findings and objectives - National Transport Plan (NTP) and accelerated municipal growth have improved the condition of transport networks, but large damages identified during NTP development mean level of service is still a concern. - Two major core objectives for roads: (i) improve and develop urban road network, (ii) improve and expand urban infrastructure. - Emphasis on integrating CEMAC and ECCAS network projects (examples listed in source) to strengthen Congo’s role as a transit country. - Complementary objectives: national integration roads, feeder roads, environmental studies and monitoring, capacity building for private construction operators, strengthen human resources in construction, promote job creation via labor intensive techniques (HIMO), promote use of local building materials. ### Roads and road transport — key statistics and issues - Road network totals: 20 925 km consisting of: - 5 569 km of national roads - 4 401 km of divisional roads - 7 380 km of rural roads - 3 575 km of urban roads - Pavement and composition: - 9.4% of the network is tarred - 2.8 % is urban tarred roads - 6.6 % is intercity tarred roads - 90,6% of the road network is dirt roads - Crossings: fleet of 7 158 crossings (bridges, viaducts, culverts and tanks) - Serviceability and seasonal continuity problems: many dirt road sections in poor condition; continuity not assured during rainy season. - Road transport condition indicators: - National road network predominantly dirt roads (90 %) and in poor condition (68 %). - Consequences: impassable roads during rainy season, impeded movement of goods and people, drop in agricultural production, increased cost of goods, higher number of road accidents. - Regulatory and institutional gaps: - No computerized database for vehicle ownership certificates and driver's licenses. - No regulations on automobile pollution. - Road transport development actions: - Strengthen traffic regulations. - Promote road transport services. - Projects: secure vehicle owner certificates, driver training, implement and control road statistics, technical inspection of vehicles including environmental pollution standards. ### Rail, air, river and shipping — current state and planned actions - Rail transport: - Rail network length: 795 km. - Network in poor condition with advanced deterioration of platforms, ballast, structures. - Passenger transport neglected in favor of freight. - State commitments: (i) rehabilitate and strengthen rail network, (ii) repair network materials and equipment (rehabilitation, acquisition, maintenance), with special emphasis on tracks and passenger coaches to improve passenger train speed, safety and comfort. - Air transport: - Three international airports: Brazzaville (Maya Maya), Pointe-Noire (Agostino Neto) and Ollombo; Brazzaville and Pointe-Noire are among the most modern in the sub-region with international safety and security standards. - Five secondary airfields (Nkayi Sibiti Mossendjo, and Makoua Ouesso) largely in poor condition. - Secondary airport needs: rehabilitation of runways and control towers, equipment to reduce operational risks. - General issue: low density of meteorological stations, estimated at 0.05 %. - Government programs: (i) develop airport facilities (infrastructure, equipment, maintenance, modernization of airport management), (ii) strengthen security equipment and navigational aids, (iii) densify meteorological station mesh, (iv) monitor operators (travel agencies, tour operators, airlines, public or para-public dealers). - Objective: involve air transport in tourism expansion and strengthen Congo’s transit role. - River transport: - Navigable waterway network: 7 276 km = 5 200 km international network + 2 076 km domestic network. - Recent improvements noted, but passenger and freight traffic declined between 2009 and 2010: - Passenger traffic: -5.6 % - Freight traffic: -9.1% - Causes: low investment in quays and warehouses, lack of organization at Brazzaville port leading to long processing times for passenger arrival formalities. - Development actions: (i) develop river port facilities (construction, rehabilitation, equipment, maintenance, roads, modernization of port management, study fluidity of passenger traffic at Brazzaville Beach), (ii) enhance equipment and materials for inland navigation, (iii) strengthen river transport regulation, (iv) monitor sector operators. - Shipping (maritime): - Major seaport: Pointe-Noire Port Authority (GCIP), only deep-water port on the coast of the Central African sub-region. - Recent investments: reconstruction and extension of dock G over 800 linear meters, extension of outer embankment, construction of rock fill protection jumper, rehabilitation of embankment alongside quay D, acquisition of patrol boats and beaconing equipment. - Government actions: (i) support PAPN in developing infrastructure and port facilities, (ii) support development of security, safety and shipping infrastructure and facilities. ### Energy — structure, capacities and challenges - Legal liberalization: State withdrawal from operational tasks in water and electricity sectors via Law No. 13-2003 of 10 April 2003 (Water Code) and Law No. 14-2003 of 10 April 2003 (electricity code); State focuses on infrastructure development, legislation and regulation. - Electricity sources: - Hydroelectricity: 52 % - Thermal diesel: 29 % - Thermal gas: 19 % - Main performance indicators of the electric power sector: - Access rate to electricity: - In urban areas: % 45 - In rural areas: % 5,6 - Number of low and medium voltage SNE subscribers: 152,047 (in thousands of inhabitants) - Total installed power: MW 171 - Transmission lines: km 479 - Transformer posts: U 12 - Supply lines: km 770 - Number of MV/LT posts: U 548 - Regional comparison (TABLE 53): - Installed electric power (in MW) and electric power per capita (in KW/1000inhb): - Cameroon 902 45 - Congo 171 49 - Gabon 414 276 - Equatorial Guinea 13 26 - Central African Republic 40 9 - Chad 29 4 - Across CEMAC 1 569 41 - Note: commissioning in 2010 of the Imboulou dam increased hydroelectric proportion. - Primary challenge: supply and consumption — reliability and extension of the supply network and optimization of service management. ### Water and sanitation — resources, access and deficits - Freshwater potential: 1.588 billion m3/year. - Current water use breakdown: - Domestic needs: 69 % - Industrial needs: 22% - Agricultural needs: 9% - Drinking water coverage: - Urban areas: 40% - Rural areas: some places rely on sparsely developed individual water points. - Deficits: significant organizational, technical and infrastructural means for monitoring water quality. - Government intentions: - (i) strengthen capacity for quantitative and qualitative control of water, - (ii) improve access to safe water in urban and rural areas, - (iii) improve governance in the water sector. - Sanitation: - Access to sanitation very limited in urban and rural areas. - Wastewater from industrial units, hotels and hospitals frequently discharged untreated. - Sewage treatment plants are dilapidated or out of use. - Domestic sewage generally discharged into yards and public roads. - Only 14 % of households discharge domestic sewage into a modern device. - Absence or inadequacy of drainage systems causes runoff, erosion, destruction of homes, drinking water supplies, transportation and telecommunications networks. - Solid waste (TABLE 54) — production and collection in Brazzaville and Pointe-Noire: - Brazzaville: - Average daily volume of waste produced (in m3/d): 450 - Average daily volume of waste removed (in m3/d): 20 - Average daily volume of waste collected (in %): 4.4% - Pointe-Noire: - Average daily volume of waste produced (in m3/d): 300 - Average daily volume of waste removed (in m3/d): 20 - Average daily volume of waste collected (in %): 6.7% - Total: - Average daily volume of waste produced (in m3/d): 750 - Average daily volume of waste removed (in m3/d): 40 - Average daily volume of waste collected (in %): 5.3% - Findings: in both cities barely 5 % of household waste is collected; collected waste is dumped in open sites; no treatment of solid waste even when collected. - Policy priority: establish facilities for collection and improved treatment of liquid, solid or gaseous waste. ### Housing and urban development - Housing: - Post-independence State-led housing shifted to private construction after crises; Government reactivated social housing policy with partner support. - Housing stock increased by over 17 % compared to the pool at the beginning of the 2000s. - Stock remains far short of demand driven by population growth and poverty reduction; State must accelerate implementation of ongoing social housing programs. - Urban development: - Rapid urbanization and growth of slum neighborhoods driven by rural exodus and persistent poverty. - Improvements from accelerated municipal development programs, site development, and restructuring of unregulated housing in some neighborhoods. - Major obstacles: land issues and weak institutional and technical tools for urban management. - Housing production statistics (TABLE 55): - Period / Production / Accumulated Stock / Growth rate - 1969-1974 196 196 - - 1975-1980 356 552 181.6% - 1981-1990 1107 1659 200.5% - 1991-2000 135 1794 8.1% - 2001-2010 313 2107 17.4% ### Telecommunications, posts and ICT — performance indicators and objectives - Post sector: - Government will strengthen efforts to revitalize postal services: rehabilitate post offices, extend CCP network to local post offices, accelerate project to transform CCP into a postal bank to popularize postal savings. - ICT sector performance indicators (TABLE 57) — values 2009/2010 and variation: - Proportion of households with fixed Internet access: %0.06 0,07 0.01 - Proportion of households with mobile Internet access: %1.89 2 0.11 - Number of households with a computer: U3500 5 000 42.9% - Number of Internet users per 100 inhabitants: U57 40.0% - Number of public information portals: U10 12 20.0% - Number of jobs in the ICT sector: U350 500 42.9% - ICT sector turnover in relation to GDP: %1.6 1.3 -0.3 - Telecommunications sector indicators (TABLE 565) — values 2009 / 2010 / Variation: - Proportion of households with a fixed telephone line: %0.1 0.12 5 0.025 - Proportion households with a mobile phone: %5860 2 - Average communication cost per minute: FCFANDND (no numeric values provided) - National network coverage: %ND ND (no numeric values provided) - Tele-density of the mobile phone per 1000 inhabitants: %606 55 - Government actions: continue rehabilitation and expansion of telecommunication infrastructure and monitor sector operators. *Source: _cr12242 - 999.* ### 1032. The flagship project in this area concerns the country's connection to the optical fiber ### _cr12242 - 1032. The flagship project in this area concerns the country's connection to the optical fiber ### Flagship ICT project and expected impacts - The flagship project concerns the country's connection to the optical fiber WACS expected to replace the Wireless Local Loop (WLL). - Expected contributions if completed: - Lowering the costs of Internet access. - Allowing the development of the broadband Internet market. - The successful implementation will determine whether to undertake follow-up projects such as: - Building pilot media libraries and Internet classes. - Digitization of Government archives. - Creation of high tech centers. - Government will strive to: - Expand audiovisual coverage to the entire national territory. - Popularize texts on freedom of information and communication within the public and private media. ### Strengthening human resources — overall rationale - Education and training are central to: - Enabling population ownership of new technologies. - Increasing productivity and contributing to economic modernization. - Raising public awareness of rights and responsibilities and demand for quality public policies. - Capacity building of human resources is identified as a major challenge for a successful DSCERP. - Strengthening human resources requires substantial investment (infrastructure) and operational spending (salaries), necessitating attention to policy quality and effectiveness. ### Education system structure and cluster presentation - The education system is presented as similar to a cluster with 4 (four) areas of action: - (i) preschool and primary school education; - (ii) secondary education; - (iii) higher education; - (iv) vocational training. ### Key developments and measures since early 2000s - Government actions to revitalize education and provide primary education for all: - Abolishing school fees (effective free access to primary education). - Free textbooks. - Recruitment of over 6,000 primary school teachers between 2002 and 2008, peaking at 1,800 recruitments in 2008 alone. - Program to build more than 581 new classrooms and provision of more than 11,000 desks since 2005. - Boosting adult literacy and non-formal basic education activities. - Census of teachers paid from MEPSA budget but working in other ministries. ### Preschool, primary and secondary education — indicators and issues - Preschool education: - Coverage increased from 12.3 percent to 13.5 percent between 2009 and 2010. - Primary education: - Student enrollment increased from about 600,000 in 2005 to 705,000 in 2010. - Gross enrollment rate (GER) in 2010: 122 percent. - Retention rate: 69 percent. - Gender: slightly more boys than girls enroll in primary school. - Secondary education: - First cycle enrollment increased from about 191,000 to 206,000 (2005–2010), an annual increase of around 8 percent. - Junior secondary GER in 2010: 65percent. - Senior secondary (high schools) coverage rate in 2010 (GER): 29 percent. - Gender: under-representation of girls. ### Higher education — actions and measures - Measures to increase capacity and quality: - Opening higher education to the private sector; many institutions opened, some officially approved. - Rehabilitation/equipping of schools and university canteens. - Recruitment in 2008: 61 lecturers and 13 non-teaching staff. - Introduction of the LMD (Bachelor’s, Master’s and Doctorate degree) system from the 2007 – 2008 academic year at Marien Ngouabi University. - Increase in student allowances (student scholarships) by 50 percent. ### Technical and vocational education and skills training — status and problems - Distribution of students: - General education: about 87 percent of students. - Technical education: about 13 percent of students. - Technical education (2010) — combined 1st and 2nd level: - 40 commercial and industrial colleges (first level example). - 15 high schools (second level). - 2,222 teachers. - 34,350 students. - 494 classrooms. - 794 teaching classes. - 9,371 desks. - Ratios: one (1) teacher for 18 students; one (1) classroom for 68 students; one (1) desk for three (3) students. - 2010 success rates in Government examinations: - Brevet d’Étude Technique (BET): 29 percent. - Brevet d’Étude Professionnel (BEP): 19 percent. - Baccalauréat: 19 percent. - Vocational education and skills training: - 27 trade centers and 11 vocational schools. - 2010: 571 teachers (mostly part-time) for a total of 3,805 students, ratio one (1) teacher for 7 students. - Recent establishment of two Education, Training and Learning Centers (CEFA) in Brazzaville and Pointe-Noire specializing in general mechanics and construction. - CEFA purpose: train students to acquire a formal qualification; promote continuing training in agriculture, mechanics, construction, hotel business and fine crafts. - Problems identified (technical and vocational subsectors): - Curriculums not adapted to socio-economic needs and often not respected. - Lack of a training policy for trainers. - Training provided is not very diversified. - Inadequate intake facilities. - Obsolete workshop equipment. - Insufficient teaching materials. - Weak partnership with the productive sector. - Low educational level of students. - Lack of a reliable mechanism for the production and publication of statistics. - Cross-cutting issues: HIV / AIDS, gender disparities, lack of public transportation affecting attendance and completion; lack of specialist teachers; lack of retraining; inadequateness of training relative to job profiles; outdated equipment. ### Selected tables and exact indicators (as presented) - TABLE 58. PRIMARY EDUCATION, A FEW INDICATORS - Degree of coverage: 119% 119.50% 0.5 - Gross Intake Rate: 113% 113% 0 - Completion Rate: 73% 86% 13% - Number of establishments: 3224 - Number of teachers recruited: 1,200 1,200 - Number of pupils: 584,370 671,683 14.9% - TABLE 59. SECONDARY EDUCATION, A FEW INDICATORS - JUNIOR SECONDARY (COLLEGE) 2009 2010 Variation - Degree of coverage: 65.50% - Gross Intake Rate: 48% - Transition rate from junior secondary to senior secondary: 70.4 69.4 -1 - Number of students (2005 2009 Variation): 191,857 206,237 14,380 - Number of establishments: 705 960 155 - SENIOR SECONDARY (LYCEE) 2005 2009 Variation - Degree of coverage: - Gross Intake Rate: 23% 24.75% 1.75% - Number of students: 57,708 60,615 2,907 - Number of establishments: 84 89 5 - Number of teachers recruited: 2,196 3 456 1,260 - TABLE 60. TECHNICAL AND VOCATIONAL EDUCATION, A FEW INDICATORS - Number of teachers: 2 ,22 2 - Student/teacher ratio: 18 - Number of establishments: 5 5 - Vocational Education: - Access rate: 31% 36% 5% - Completion rate: 26% 64% 38% - Success rate in state examinations: 74% 79% 5% - Number of students: 3,805 - Number of teachers: 571 - Student/teacher ratio: 15 - Number of establishments: 38 - Certificated education: - Number of applicants: 03000 3000 - Number obtaining qualifications: 01582 1582 - Number of CEFA: 022 ### Constraints to development of the education system - Identified constraints: - Weakness of the population combined with high concentration in large cities. - Strong dependence of the educational system on public expenditure. - High rate of income poverty affecting over a third of the population. - Low level of development support activities, especially shortage of public transport. - Population spatial breakdown (TABLE 61): - BRAZZAVILLE (COUNCIL): 37.1% 37.2% 37.1% - POINTE-NOIRE (COUNCIL): 19.3% 19.7% 19.0% - BOUENZA: 8.4% 8.2% 8.6% - POOL: 6.4% 6.3% 6.5% - NIARI: 6.3% 6.2% 6.3% - PLATEAUX: 4.7% 4.6% 4.8% - CUVETTE: 4.2% 4.2% 4.2% - LIKOUALA: 4.2% 4.2% 4.1% - LEKOUMOU: 2.6% 2.5% 2.7% - KOUILOU: 2.5% 2.6% 2.4% - SANGHA: 2.3% 2.4% 2.3% - CUVETTE–OUEST: 2.0% 2.0% 2.0% - For CONGO’s population (in thousands): 3 697 490 1 821 357 1 876 133 - Dependence on budgetary resources (2007–2011): - Over the past five years (2007-2011), the education sector received over 12 percent of budget expenditures, representing 3 percent of GDP. - TABLE 62. TREND OF BUDGET EXPENDITURES ALLOCATED TO EDUCATION (2007 2008 2009 2010 2011 Moyenne 2007- 2011) - Primary,secondary education, responsible for literacy: 8.1% 7.7% 7.8% 7.5% 6.9% 7. 6 % - Technical and vocational Ed. Certificated training and Employment: 1.6% 1.6% 1.9% 2.1% 2.2% 1. 9% - Higerh Education: 2.6% 2.5% 2.7% 2.3% 2.1% 2. 4% - Total share of education in the State budget: 12. 4% 11. 8% 12. 4% 11. 8% 11. 2% 11. 9% - Ratio to GDP of public spending devoted to Education: 3. 1% 2.7% 3. 5% 2.7% 2. 9% 3. 0% - For the record, nominal GDP (in billions of FCFA): 3563.6 4556.9 3869.8 5336.5 6130.5 4691.5 ### Transport, poverty and spatial concentration impacts - High concentration of population in Brazzaville (37 percent) and Pointe Noire (19 percent) places pressure on educational service supply and concentrates infrastructure. - Low funding capacity of households (poverty affecting over a third of the population) limits access despite free primary policy; households struggle with transportation, clothing, food—contributing to low retention, especially at primary level. - Low level of public transport development causes absenteeism, poor attendance, failure to complete curriculum and school abandonment by students from low-income families. *National Development Plan CONGO DSCERP 2012-2016 — excerpt (sections 1032–1053)* ### 1054. Access to quality basic education is an important factor in poverty reduction. That is why ### Access to quality basic education is an important factor in poverty reduction. That is why ### Overview and objective - Main objective: ensure universal primary education for all by 2015 in accordance with the MDGs. - Government intention: update the Education Sector Strategy paper to take advantage of the “Fast Track” Initiative in favor of Education. - Strategy actions are envisaged by level of education (Preschool; Primary and Secondary; Literacy; Higher Education; Technical and Vocational Education and Skills Training). ### Preschool education - Actions: - Improve access to preschool through promotion of the community model by sensitizing communities and local elected officials to early childhood care to elicit their support for the establishment of nursery schools by communities. - Ensure equitable coverage of rural and urban areas through a communication plan. - Encourage relevant educational initiatives by civil society organizations, the private sector and communities in favor of early childhood. - Raise awareness among the population on the importance of schooling for girls. - Ensure quality care from early childhood through strengthening of mentoring programs provided by the host facilities. ### Primary and secondary education - Government decisions/goals: - (i) improve primary school completion rate to achieve a universal completion rate by 2015; - (ii) very significantly improve retention of students during the cycle, especially by ensuring educational continuity during the six years of education; - (iii) reduce grade repetition; - (v) improve the quality of education; - (vi) improve the retention rate of girls in the school system; - (ix) substantially improve the conditions for teachers; - (x) adapt the school map to regional needs; - (xi) provide incentives to promote the training of young girls in courses where they are poorly represented; - (xii) improve the system for the collection and processing of school statistics. - Planned investments and measures: - Rehabilitate and/or build classrooms, libraries, laboratories, and boarding hostels. - Strengthen governance through revision of the sector strategy for education and by building technical and administrative capacities. - Intensify the campaign against HIV / AIDS in schools. ### Literacy programs - Focus areas: - (i) equitable access to literacy programs; - (ii) the promotion of literacy for women; - (iii) improving the quality of human resources, programs and curricula, the monitoring and evaluation system, piloting and management of the sub-sector to make the literacy program a tool for social change. - Planned infrastructure: construct and equip literacy and “re-education” centers. ### Higher education - Government intent: continue support to train senior executives capable of fostering the country’s development; improve quality and tailor training to market trends and sector development demands. - Expected results of Government support: - (i) improved management and steering of higher education; - (ii) improved quality and gender equality; - (iii) promotion of scientific and technological research geared towards sustainable development; - (iv) reorientation of higher education towards the development needs of the country in light of regional integration and globalization, in a University-Labor World relation approach; - (v) strengthening infrastructure to accompany the LMD (Bachelor, Master, Doctorate) reform; - (vi) granting of scholarships, especially to girls, and facilitating girls' access to university residences. - Decentralization: creation of Departmental University Centers (PUD): - PUD-Brazzaville Pool; - PUD Pointe-Noire Kouilou; - PUD Niari--Bouenza Lékoumou; - PUD Plateaux-Cuvettes; - PUD Sangha-Likouala. - Additional commitment: improve intake capacity of Marien Ngouabi University through rehabilitation of the existing 11 schools. ### Technical and vocational education and skills training - Program goals: better respond to changing job market trends generated by sector developments. - Focused efforts: - (i) improving access and retention rate through rehabilitation and construction of additional infrastructure to obtain better spatial coverage and diversification of training; - (ii) improvement of technical facilities through rehabilitation and construction of laboratories; - (iii) renovation of teaching materials by revising curricula and training content, defining new professional certification and strengthening trainers’ skills; - (iv) mobilizing more human and financial resources through recruitment of qualified teachers and diversifying funding sources; - (v) development of modern and dynamic partnership with the productive sector by signing partnership agreements and improving the educational guidance system through rehabilitation of the corps of guidance counselors; - (vi) stimulation of school attendance by girl students especially in the agricultural and industrial sectors by setting quotas. ### Activities to support development of education (transport, facilities, infrastructure) - Transport and accessibility: - Improve transportation in large cities and accessibility to schools in rural areas. - Actions include improving public transport and targeted subsidies to disadvantaged sectors. - Deploy a rigorous method of selectivity to control targeting of subsidies and avoid overspending. - Strengthen programs to build and/or rehabilitate rural schools to ensure equitable access. - Socio-educational facilities: - Strengthen development of socio-economic structures (spaces for sports, games, etc.). - Facilitate research in schools through construction and equipping of libraries and computer rooms and strengthening school connectivity to the Internet. - Living conditions of teachers in rural areas: - Deploy resources to strengthen programs to build and/or rehabilitate rural roads. - Improve living conditions of teachers in rural areas (housing, sanitation, water, electricity). - Land management and private sector involvement: - Strengthen management of land resources through adoption of specific regulations to encourage private sector financing of education. - Activities: (i) developing a plan for setting up schools in accordance with the school map; (ii) adopting measures conducive to major investments in the sector, to be adjusted according to State priorities by level of education and training sector. - Labor supply and labor market in education: - Initiate actions aimed at (i) increasing supply and quality training of trainers; (ii) regulating the labor market for education by setting benchmarks and minimum wage levels. ### Governance, planning and standards - Governance and private sector support: - Significantly increase governance of the education sector to improve efficiency of public spending and to attract private investment. - Efforts geared to: (i) strengthening school administration governance capacity; (ii) improving overall governance in the sector. - Strategy planning: - Sectoral ministries drafted strategy planning papers for their sub-sectors. - Government intends to consolidate this work with a “Sector Policy Letter (LPS)” and a “Strategy Plan for the development of the education sector” to clarify goals, major programs and funding strategies and foster discussions with development partners. - Quality norms and environmental standards: - Adopt a regulatory framework to set quality norms and environmental standards to be observed by schools, universities and training centers. - Sector will take steps to obtain necessary human and material resources to ensure compliance and foster intellectual stimulation in a healthy environment. ### Education sector development and job implications - Budgetary commitment: Government intends to continue to devote a significant portion of budgetary resources to financing the measures described. - Expected job creation: - Continuation and diversification of education sector developments and greater private sector involvement should increase job opportunities in the education sector. - On the assumption that the current rate continues, there should be a minimum of about 3,000 direct jobs available per year, in addition to ancillary jobs (teaching staff, technicians and others), as well as jobs generated by development of support activities (librarians, archivists, booksellers, etc.). ### Key strategy programs and projects (selected items from Figure 28) - Improvement in management of human resources and educational establishments. - Construction and rehabilitation of infrastructures and equipment in: - preschool sector; - primary sector; - secondary sector; - literacy centers. - Cross-cutting accessibility and quality actions for preschool, primary and secondary education: - Incentivization of teachers in rural areas; creation of school canteens; - Awareness campaigns on STIs and HIV/AIDS; organization of competitions in sport, cultural activities and production. - Higher education actions: - Development and rehabilitation of university infrastructures; - Capacity building and financing through partnership development policy with the private sector and other universities; - Improving management of bursaries and access to university residences. - Technical and vocational training actions: - Construction of technical high schools, technical training colleges, vocational high schools, trade training centers; rehabilitation and equipment of establishments for vocational training and teacher training. - Reinforcement of training programmes, reinforcement of training of trainers, improvement of management of educational establishments, creation of boarding hostels, libraries and school canteens. - Employment and entrepreneurship support: - Reinforcement of the monitoring system of qualified individuals by creation of an employment office; - Establishment of units to guide qualified individuals in their search for their first job; - Establishment of specialized lines of credit and units to advise, support and monitor young entrepreneurs; - Reinforcement of the Labour Office for collection and publication of job offers; - Development of on-the-job training contracts between specialist training sectors and key businesses. - Infrastructure and environment improvements: - Drafting a plan to establish schools, universities and technical institutions according to the school map and development policy; - Construction and rehabilitation of means of access to schools, especially in rural areas; - Provision of socio-economic infrastructures for schools, universities and technical institutions (water, electricity, sanitation). - Governance and financing: - Reinforcement of framework for exchange and consultation between Government and operators of the Education Cluster; - Technical and material capacity building, diagnostic study and reinforcement of human resources, development of quality control activities, financial capacity building. - Social support for teachers: - Construction and rehabilitation of housing for teachers and socio-economic equipment and infrastructures (water, electricity and sanitation). *Source: National Development Plan CONGO DSCERP 2012-2016 (excerpt).* ### 1.1 Facilit at ing access t o land re source s for ### _cr12242 - 1.1 Facilit at ing access t o land re source s for ### SCIENTIFIC RESEARCH AND INNOVATION - Scientific research conducted at Marien Ngouabi University and R&D structures has produced satisfactory results in: - Forestry: development of cuttings of eucalyptus and limba; creation of a highly productive industrial variety of eucalyptus; creation of clonal plantations. - Agriculture: layering and grafting of fruit trees, micro-propagation of food crops and fruits; vitro conservation of germplasm of food crops; creation of cassava varieties resistant to vascular bacteriosis. - Intellectual property: over the period 2003 to 2007, 111 applications for protection were addressed to the African Intellectual Property Organization (OAPI). - Flora and fauna studies: - Catalog of vascular plants: Congolese flora at 4397 species, broken down into 198 families made up of 1338 genera. - Creation of a national herbarium in Brazzaville. - Note: research on fish in Congolese inland waters, snakes, amphibians and mammalian fauna remain fragmentary. - Institutional framework and constraints: - National plan for scientific and technological development (PNDST) 2009-2013 implemented by a higher council for science and technology and an inter-ministerial council of science and technology. - Development hampered by internal constraints (resources, management, efficiency), external constraints (socio-political inertia, limited prioritization by development partners), and cross-cutting issues (population explosion, increase in HIV / AIDS, gender disparities, cultural and socio-economic constraints). - Strategies and key actions: - Government commitments: (i) generating knowledge for transmission-dissemination through education; (ii) generating knowledge for the information of development actors; (iii) producing, disseminating and utilizing knowledge; (iv) participating in the production of global knowledge; (v) making knowledge available to development actors. - Major programs: (i) strengthening supply capacity (management of researchers, construction and rehabilitation of infrastructure); (ii) strengthening supply of high level scientific and technical knowledge through programs on human and animal health, food security, environment and biodiversity, engineering, mineralogy and materials, the man and his environment. - Main actions include: - Increasing productivity of production systems based on roots and tubers. - Improving quality of post-harvest conservation and diversifying products for processing. - Ensuring regular supply of accessible products to urban centers. - Developing a wide range of varieties of cereals, vegetable crops and farm to market products adapted to diverse agro-ecological conditions. - Contributing to sustainable management of natural ecosystems and genetic resources (plant, animal and fish). - Improving knowledge of PFNLs (Non-Timber Forest Products) for sustainable management. - Disseminating information on climate change and contributing to restoration and sustainable conservation of land. - Tapping mineral resources. - Studying representations and practices of social actors around issues affecting humans and their environment. ### CHAPTER 12: PROMOTING JOB CREATION — CONTEXT AND RATIONALE - Growth does not automatically translate into job creation, poverty reduction or social progress; may be non-inclusive. - Government commitment: more targeted efforts to translate growth into job creation, especially in the formal sector, and to ensure inclusiveness. - Cross-cutting policies should be housed in production sectors and target demand for jobs by improving qualifications, skills and productivity through basic education and relevant skills training. - State roles: ensure effective market regulation, support contracting processes, align wages and incomes with productivity, and ensure work is valued economically and socially. ### LABOR MARKET PERFORMANCE AND CHALLENGES - Recent context and opportunities: - Major infrastructure construction under “accelerated development of municipalities” provides job opportunities via High Labor Intensive (HIMO) projects. - Political will expressed in the “ROAD TO THE FUTURE” to remove barriers to job creation and to regulate the labor market. - Employment trends and statistics: - ECOM2 findings for 2005-2011: - Unemployment rate decreased from 19.4 percent to 7 percent. - Urban unemployment: 30.2 percent to 10.0 percent between 2005 and 2011. - Rural unemployment: 6.3 percent to 1.7 percent between 2005 and 2011. - Youth (aged 15 to 29) unemployment around 12.0 percent. - Youth underemployment rate estimated at 27.8 percent. - Employment structure and quality: - Two thirds of those "employed" are self-employed, often in informal, low-productivity, low-income activities. - Employment shares: public service 11.4 percent; SMEs 7.7 percent; large private companies 4.8 percent. - Employment by sector: agriculture and forestry 37.8 percent; trading 23.1 percent; services 10.9 percent. - Mines and quarries employment only 0.9 percent despite higher private pay. - Modern sector employment dominated by public service providing more than six out of ten jobs. - Private sector employment grew 8.0 percent annually between 2008 and 2010, indicating medium-term prospects for quality job creation. - Institutional capacity and gaps: - Formal labor market regulated and facilitated by Directorate General of Public Service (DGVT) and National Employment and Manpower Bureau (ONEMO). - Only 3.2 percent of the unemployed use ONEMO services (urban employment survey). - Low demand and low satisfaction with ONEMO reveal administrative capacity shortcomings. - Qualification and retraining of job seekers need strengthening to meet employers’ requirements. ### STRATEGY FOR JOB CREATION — OBJECTIVES AND TARGETS - Strategy focus areas: - (i) increased supply of sustainable employment in priority diversification sectors (clusters and infrastructure projects); - (ii) increased efforts to “render capable” job-seekers via sound basic training plus operational skills training; - (iii) strengthening functioning of the labor market and regulatory structures, especially ONEMO; - (iv) expanding employment frontiers (extension of activities, transfer of skills). - Supply-side actions: - Promote employment across diversification sectors, especially: “Agriculture”, “Forestry and Timber”, “Mines”, “Buildings and Building Materials”, and “Tourism and Hotel Business” clusters. - Establish schools and specialized institutes in timber, mining, fisheries resources, construction, tourism and hotel business, ICT, financial services, etc. - Promote employment through construction of major infrastructure with priority for high labor intensity projects (HIMO). - Demand-side actions: - Equip young people with sound and universal basic education up to secondary level and skills training oriented to promising growth sectors. - Government intends to: (i) adapt courses and training programs to labor market needs; (ii) improve national workforce skills, especially in trades with structural manpower deficits; (iii) capacity building to empower disadvantaged groups. - Institutional and regulatory reforms: - Reform labor legislative and regulatory framework to make it more attractive for job creation and to protect workers' rights. - Strengthen capacity of ONEMO and Directorate General of Public Service (human resources, information bases, intermediation methods). - Organize participation of Congolese diaspora to cover market needs for skilled workers. - Develop institutional mechanisms for qualification, retraining, continuing training and sandwich courses. - Assist graduates of technical training institutes in creation and development of new businesses and recruitment by companies. - Quantitative employment targets: - Reduce unemployment among 15 to 29 years from 12.0 to 5.0 percent by 2016. - Reduce underemployment rate of the young from 27.8 to 9 percent by 2016. ### COORDINATED SECTORAL ACTIONS AND JOB CREATION MEASURES - Agriculture: - Redevelop agriculture to create wealth and jobs by: (i) supporting private investments in agriculture; (ii) supporting infrastructure policies (e.g., new farming villages at Nkouo and Imvouba); (iii) investing in inputs, production and acquisition of improved seeds; (iv) intensifying upstream and downstream links between agriculture, industry and services; (v) improving focusing of the Support Fund for Agriculture. - Forestry and timber: - Promote industrial processing of Congolese timber and revitalize the forestry sector in job creation by: (i) effective implementation of Decree 437/2002 which states that 85 percent of Congolese timber must be industrially processed within the national territory; (ii) creation of timber industry to increase job-creating potential via structuring effects. - Infrastructure and multimodal communication: - Continue provision of basic infrastructures (land, river, rail and air) in context of major infrastructure projects and accelerated development of municipalities. - Community infrastructure and decentralization: - Develop community-interest infrastructures to expand domestic labor market opportunities; implement decentralization laws enacted in nine (09) Acts, including Law No. 10/2003 of 6 February 2003 on transfer of powers to Local Authorities. - High Labor Intensive (HIMO) approaches: - Promote HIMO by: (i) sustaining PARSEGD through PADEC; (ii) training youth for employment in road paving, road maintenance and pre-collection, collection and recovery of household waste; (iii) upgrading local human resources within major infrastructure for ownership and maintenance tracking. - Entrepreneurship and SMEs: - Promote entrepreneurial and managerial culture to support SMEs/SMIs, NGOs and community interest groups. - Strengthen support for SMEs/SMIs via institutional reform and revision of law 019/86 of 31/07/86 establishing measures to promote SMEs. - Develop micro-finance guarantees for enterprises, NGOs and GIEs; develop legislation for capacity building in management and running of community organizations. - Support for job-generating investments: - Support via: - Public-Private Dialogue as a permanent consultation platform. - Implementation of the industrialization policy letter (National Industrial Redeployment Program - PNRI). - Agricultural development strategy (AAPG- Congo component). - All master development plans for sectors. - Special Economic Zones (SEZs). *Source: _cr12242 - 1.1 Facilit at ing access t o land re source s for* ### 1091. Adaptation of courses and training programs to labor market needs. Government has ### 1091. Adaptation of courses and training programs to labor market needs. Government has ### 1091. Areas of action - Government has opted for two areas of action: - (i) the planning of training on the basis of information on the labor market - (ii) promoting vocational training and learning, including the block-release training component, to adapt vocational training and trade apprenticeship to the needs of the labor market ### 1092. Improving national workforce skills, especially in shortage areas - Skilled jobs identified within businesses will be filled through tailor-made training: - (i) the promotion and adaptation of training programs to new technologies - (ii) the implementation of the training programs for trades contained in the “clusters” - (iii) the training of young Congolese in marine trades (welding, painting, diving, instrumentation, etc..) - (iv) training of youth in new environmental trades, related to the protection of ecosystems and to the development of oil subcontracting and the establishment of an incentive scheme for the local content - Public-Private Dialogue will help resolve bottlenecks that will arise in the implementation of this co-operation mechanism ### 1093. Capacity building to empower disadvantaged groups - Government tasks: - identification, mentoring and support of the target populations identified - establishment of the Social and Economic Rehabilitation Fund for Disadvantaged Groups (FORSEGD) as part of the support provided by PARSEGD - promote self-employment and creation of income-generating activities ### STRENGTHENING OF THE FUNCTIONING OF THE LABOR MARKET ### 1094. Legislative and regulatory framework - Improvement of the legislative and regulatory framework aligned with modernization of institutional and regulatory work, focusing on: - (i) the adaptation of labor regulations and laws to international conventions ratified by the Congo - (ii) updating the labor code, to integrate the new market requirements, including integration of new branches of economic activity (ICT and internet services, for example) ### 1095. Redefining incentives for businesses to create jobs - Measures include: - (i) improving the current levels of incentive in the fiscal and parafiscal sectors and incentives to the development of investment - (ii) improvement of regulatory inputs and financial assistance which may induce firms to hire ### 1096. Consolidation of intermediation on the labor market - Actions: - Modernization and institutional strengthening of administrative structures to support job creation (ONEMO, DGVT, DGFQE;) - Creating effective synergies to facilitate the search for jobs - Facilitating access to information about national and international jobs - Creation of economic directories of suppliers and job-seekers as tools ### 1097. Creation of a central structure for employment and skills training - Proposal: - Creation of a central structure (High Commission or General Delegation) in charge of employment and skills training, in close collaboration with local chambers and businesses, government ministries in charge of technical and higher education - Responsibilities: - design and implementation of policies to promote employment, on the basis of justified resolutions of the High Council of Public-Private Dialogue on these issues - oversight by an Inter-Centers Committee (economic and socio-cultural coordination centers) responsible for monitoring and evaluating policies on employment, vocational and skills training - Committee composition: sector ministries involved in training, qualification and retraining, assisted by PTFs ### 1098. National Employment Observatory and National Fund - Proposals: - Creation of a National Employment Observatory to describe, at predetermined deadlines (biannual / annual), the main trends and changes in the labor market, to guide policy on training, qualification and requalification - Creation of a National Fund for Support to Vocational Integration and Self-Employment to finance training, qualification and retraining to help young people in their socio-professional integration ### EXPANSION OF EMPLOYMENT FRONTIERS ### 1099. Pro-active search for job opportunities - Government will: - pursue pro-active search for job opportunities and resources in the sub-region and internationally - promote the development of ICT to facilitate the sharing of experiences, providing expertise and transfer of skills and specialties in the framework of values conducive to development ### BOX N: Promising growth and employment sectors — summary - Government positions in the Growth, Employment and Poverty Reduction Strategy Paper (DSCERP 2012-2016): - Capacity building of human resources, skills and qualification is the main medium and long term lever for economic emergence - Economic diversification by “clusters” requires availability of skilled and qualified manpower for selected clusters - Definition and role of “promising occupations”: - Offer business opportunities to an entrepreneur - Offer the possibility to a government to develop a sector with high added value - Provide a young person the means for socio-economic integration - Provide a training mechanism a module very popular with learners and highly sought-after by business - “Promising occupations” may include jobs that promise socio-economic integration, economic growth, innovation and sustainable development; they do not necessarily refer to “new occupations” - ILO hierarchical typology for paid employment (socio-professional categories): - executive, engineer and persons ranking as such (Diploma in Engineering, Master, Doctorate) - middle management, supervisor (BTS, Degree) - worker, highly skilled worker (Baccalauréat, BT) - worker, skilled worker (CAP, BET, BEP) - worker, semiskilled worker (CQP) - unskilled labor (without qualification) ### Clusters and selected trades/specialties (excerpted mapping) - “Mines” Cluster: - Stones and gravel crusher operator — Skilled worker - Driller — Highly skilled worker - “Oil and Hydrocarbons” Cluster (selected entries): - Maintenance technician — Skilled worker - Geologist — Engineer and persons of similar status - Geophysicist — Engineer and persons of similar status - Diver — Skilled worker - Pipeline technician — Highly skilled worker - Pipefitter — Semiskilled worker - Welder — Semiskilled worker / Skilled worker (entries listed) - Electrician — Skilled worker - Electrical engineer — Highly skilled worker / Supervisor / Engineer and persons of similar status (entries listed) - Car and heavy plant driver — Semiskilled worker - Engine rectifier — Highly skilled worker - “Agriculture and Agro-business” Cluster (selected entries): - Cattle breeder — Semiskilled worker / Skilled worker / Highly skilled worker - Fisherman — Supervisor - Food production technician — Supervisor - Refrigeration and air conditioning technician — Skilled worker - Agricultural and food industries engineer — Engineer and persons of similar status - Veterinary surgeon — Doctor, Engineer. and persons of similar status - “Forest and Wood industry” Cluster (selected entries): - Carpenter- furniture and fittings maker — Skilled worker - Forest manager — Supervisor - Forest Engineer — Engineer and persons of similar status - Sawmill operator driver — Semiskilled worker - “Buildings and Building Materials” Cluster (selected entries): - Quantity Surveyor — Supervisor - Concrete bricklayer — Skilled worker - Tiler — Semiskilled worker - Plumber — Skilled worker - Architect — Engineer and persons of similar status - Air conditioning fitter and repairer — Skilled worker - “Tourism and Hotel Business” Cluster (selected entries): - Cook — Skilled worker - Restaurateur/ caterer/ banquet organizer — Semiskilled worker - Receptionist — Highly skilled worker - Taxi driver — Semiskilled worker - Manager of natural recreational areas — Supervisor *Source: National Development Plan CONGO DSCERP 2012-2016* ### CHAPTER 13: ENSURING SOCIAL DEVELOPMENT AND INCLUSION ### CHAPTER 13: ENSURING SOCIAL DEVELOPMENT AND INCLUSION — HEALTH AND NUTRITION ### Presentation of the Congolese health sector - Administrative and service geography - Health districts / Socio-Sanitary Districts (CSS): 50,000 to 100,000 inhabitants in rural areas; 100,000 to 300,000 in urban areas; a few rural CSS may have fewer than 50,000 inhabitants. - Health areas / primary care units (SSPE or Integrated Health Centre, ISC): serve 2,500 to 10,000 inhabitants in rural areas and 10,000 to 15,000 inhabitants in urban areas. - Network organization: a set of CSI revolves around a District/Referral/Base Hospital; referral hospitals sit above those. - Financing method: cost recovery system. - Three hierarchical administrative levels - Central level: strategic and normative role in planning, monitoring, evaluation, coordination, mobilization and allocation of resources. - Intermediate level: technical support for CSS, adaptation and implementation of national standards, supervision of CSS executive teams. - Peripheral/operational level: CSS subdivided into health zones; CSS composed of public and private outpatient networks supported by a referral hospital; CSS administered by an Executive Team responsible for planning and resource management. - Operational service levels and capacities (network composition) - 199 Integrated Health Centers - 24 functional Basic Hospitals with an overall intake capacity of approximately 1945 beds - 6 General Hospitals, including the University Teaching Hospital (CHU) in Brazzaville - Health care provided by public and private sectors, including traditional medicine structures ### Strengths and human resources - Workforce snapshot and diaspora opportunity - In 2006 health personnel of all categories numbered 10,314 workers, with a predominance of female staff and patchy urban/rural distribution. - Health personnel numbers have grown significantly over the past fifteen years. - A strong asset: a large Congolese health diaspora (practitioners in France, Belgium, Germany, USA, other African countries) who outnumber those working inside the country. - Policy implication: improving terms and conditions domestically could encourage return and address scarcity and inadequacy of human resources. ### Main problems plaguing the Congolese health sector (excerpted issues) - Institutional and legal framework - 1. Weak enforcement of the integrated district health system, due to inadequate leadership and lack of control of the system by central level decision makers - 2. Poor governance of the health sector due to an inadequate organizational chart of the Ministry and insufficient decision-making bodies in health facilities - Health coverage and infrastructure - 3. Existence of several CSS without referral hospitals - 4. Poor coverage in CSI, HR and HG - 5. Obsolescence of most health center buildings and biomedical health equipment - 6. Poor geographical access to health facilities because of insufficient roads and poor quality of the road network - Human resources for health - 7. Absence of a consistent human resources development policy - 8. Uneven distribution of staff between the rural and urban areas - 9. Low quantity and quality of staff - 10. Low pay of health care workers - Monitoring and evaluation - 11. Absence of an effective national health information system - 12. Absence of plans for monitoring and evaluation of service activities - Decentralization and community engagement - 13. Poor community adherence to health policy - 14. Non–compliance with coverage plans in Departments because of the patronage of local politicians - Hygiene, health promotion, financing - 15. Poor environmental hygiene - 16. Insufficient information on how to promote health - 17. Low budget allocations for health, less than 8 percent (against 15 percent expected) - 18. Low rate of disbursement of state budgets ### Health status challenges highlighted - High mortality attributed to high morbidity mainly from infectious and parasitic diseases. - Resurgence of epidemics and rising prevalence of illnesses such as stroke, diabetes, sickle cell disease, and trauma. - Malnutrition and food insecurity manifested by low birth weight and delayed growth (EDS, 2005); goiter cases among the population. ### Main strategy axes, programs and key projects (overview) - Three strategy axes to improve population health: - (i) strengthening of health provision - (ii) improving access to services and health care - (iii) improving governance of the health sector Strengthening health provision - Objectives and planned actions - Two-pronged: (i) strengthen national health coverage, and (ii) develop human resources. - Target: enhance national health coverage by 2016 to at least 90 percent for national health facilities through health centers (Integrated Health Centers, Basic Hospitals and General Hospitals) and support structures: National Public Health Laboratory (LNSP) and National Blood Transfusion Center (CNTS). - Infrastructure and equipment plans: build and equip 8 General Hospitals, 15 Basic Hospitals, and 100 Integrated Health Centers. - Medical imaging (Scan, MRI) to be included in hospital equipment. - Human resources development - Strengthen management planning of human resources, improve social and working conditions for health personnel. - Strengthen staff recruitment and training programs; encourage return of skilled personnel practicing abroad. Improving access to services and health care - Program components (planned focus areas) - (i) strengthening quality of health care and services - (ii) improving access by vulnerable populations to quality care and services - (iii) improving medication management - (iv) combating transmissible and non-transmissible diseases - (v) strengthening management of emergencies, disasters and epidemic responses - Strengthening quality of care and services - Ensure continuing training of health personnel (including Congolese Armed Forces and private structures); establish tools and procedures for certifying quality of care. - Major projects: set up hemodialysis units at Brazzaville CHU and in three general hospitals at Loandjili, Dolisie and Oyo; establishment of quality insurance companies. - Improving access for vulnerable populations - Establish compulsory health insurance policies for all Congolese. - Activate referral and non-referral systems; set up mobile clinics for indigenous peoples. - Improving medication management - Continuous and secure supply of drugs at low cost through coordination of supplies, strengthening COMEG, rationalizing prescription of generic drugs (MEG), use of appropriate guides in FOSAs, development of a quality insurance system. - Ensure full territorial coverage of points of sale and drug distribution; emphasis on availability of generic drugs to reduce treatment costs. - Strengthening fight against communicable and non-communicable diseases - Focus on reducing infant and child mortality rates, prevention and treatment of non-communicable diseases, nutrition and food safety, hygiene promotion and basic sanitation. - Specific targets (see section on targeted objectives and indicators). - Management of emergencies, disasters and epidemic response - Strengthen health monitoring and emergency management system. - Provide emergency kits to all divisions; strengthen mobile structures to support local teams. Improve governance in the health sector - Governance programs - Improve leadership, management and operating capacity of health system organs. - Program actions: (i) capacity building in leadership, management and functioning; (ii) strengthen institutional and legal framework; (iii) develop national health information system; (iv) improve planning and programming of health sector activities; (v) strengthen partnership and cooperation, including bilateral/multilateral cooperation and intersectoral collaboration with civil society and professional associations; (vi) strengthen decentralization by effective participation of people in management and operation of the health system. - Strengthening management of health facilities - (i) Establish functional COSA and COGES in at least 90 percent of socio-sanitary districts in 2016. - (ii) Establish a master plan for organization of health services at central, divisional and peripheral levels. - (iii) Integrate operational components of specific health programs (HIV-AIDS, tuberculosis, malaria, vaccine preventable diseases) into the Minimum Package of Activities and Package of Essential CSI Services and the Complementary Package of Activities of Basic and General Hospitals. ### Targets and expected impacts (selected objectives to be achieved by 2016) - Strengthening of national health coverage - Increase national health coverage by 90% in health facilities (Integrated Health Centers, Basic Hospitals and General Hospitals and support structures, National Public Health Laboratory, blood transfusion units). - Reduce by 50% the burden of morbidity and mortality of the population, especially women and children under 5 years. - Enhancing quality of care and services - Reduce by 50 percent the prevalence of neglected tropical diseases. - Reduce the prevalence of HIV / AIDS to less than 2.1 per 100. - Reduce new cases of malaria to less than 50 per 1,000. - Reduce cases of TB to less than 130 per 100,000. - Make available essential and generic drugs, reagents and medical devices of quality to 100 percent of health centers. - Increase capacity of EPI and immunization services to achieve the 90% target set in the PPAC. - Improved accessibility for vulnerable populations - (See specific program actions above, including compulsory health insurance and mobile clinics) - Reduction of infant and child mortality rates (tabled targets) - Reduce maternal mortality ratio to below 390 deaths per 100,000 live births (LB). - Reduce the neonatal mortality rate to below 17 deaths per 1,000 live births. - Reduce the infant mortality rate to less than 38 deaths per 1,000 live births. - Reduce mortality of children under 5 years to less than 59 deaths per 1,000 live births. - Strengthening prevention and treatment of non-communicable diseases - Reduce by ¾ the respective prevalence of diabetes mellitus, hypertension, strokes. ### Selected baseline indicators and targets for 2016 (tabled values) - Maternal death ratio: baseline data 781 deaths per 100,000 LB; targets for 2016 390 per 100,000 LB. - Percentage of births attended by skilled health personnel: baseline/current 86 %; target 95%. - Contraceptive prevalence rate: baseline 13 %; target 50%. - Birth rate among teenagers: baseline 23 %; target 11%. - Antenatal coverage: baseline 82%; target 95%. - CPN coverage rate, per CSS: baseline 88%; target 95%. - Percentage of integrated health centers (CSI) that provide quality comprehensive packages of services in reproductive health (RH): target 95 %. - Percentage of HRs providing quality comprehensive SONUs: baseline 60%; target 100 %. - Percentage of HRs with the required equipment: baseline 80%; target 100 %. - Percentage CSIs with the required equipment: target 100 %. - Percentage of health workers trained / retrained by type of care and occupation: target 100 %. - Percentage of health workers applying technical instructions and guidelines: target 100 %. - Proportion of CSS applying the quality care assurance program: baseline 00; target 100 %. - Proportion of referral hospitals ensuring the availability of EmOC 24h/24: target 100 %. - Proportion of CSS with a referral system: baseline 0%; target 80%. - CPON coverage rate: baseline 20 %; target 95 %. - PTME coverage rate: current 75 %. ### Expected impacts of poverty reduction - Combined implementation of selected programs expected to significantly improve key health indicators in Congo and contribute to reduction of poverty, precariousness and vulnerability through improved health outcomes and service coverage. *Source: CHAPTER 13: ENSURING SOCIAL DEVELOPMENT AND INCLUSION — HEALTH AND NUTRITION (excerpt) — _cr12242* ### 1126. The improvement of the epidemiological situation of HIV will be achieved ### _cr12242 - 1126. The improvement of the epidemiological situation of HIV will be achieved ### AXIS I: Strengthening of HIV and STI prevention services - Overall approach: five axes; Axis I focuses on prevention services in schools, communities, health settings, and high-risk locations; includes social mobilization, multimedia campaigns, condom social marketing, and targeted interventions for vulnerable groups. - Key quantitative targets (all by the end of 2013): - Reduce by 50 percent the proportion of adults aged 15-49 who indulge in high-risk sexual practices (baseline: DCAT-I: 38.4 percent for females and 59.8 percent for men). - Reduce to less than 15 percent the proportion of adolescents aged 10-17 who engage in high-risk sex. - Increase the proportion of people suffering from STIs who are receiving a syndromic treatment in a health facility from 55 percent to at least 80 percent, including expansion of syndromic treatment integration and establishment of an etiological treatment program for resistant STIs. - Increase the proportion of adults aged 15-49 who know their HIV status from 10 to 50 percent by strengthening counseling and voluntary testing services. - Ensure safe blood transfusion protected against HIV and other transmissible disease markers (HBV, HCV, syphilis) in 100 percent of people receiving transfusions and other blood products by improving availability of safe blood products and promoting voluntary blood donation. - Reduce the proportion of newborns infected with HIV by HIV–positive mothers to less than 10 percent by strengthening and expanding voluntary HIV testing of pregnant women during antenatal consultations and extending treatment for HIV positive pregnant women within the drive to eliminate transmission from mother to child (ETME). - Ensure bio-clinical safety and prevention of accidental exposure to HIV in 100 percent of health care facilities across the country by the end of 2013 through improved biomedical waste management, prevention and treatment programs for accidental exposure, and education programs for traditional healers and hairdressing workers. ### AXIS II: Strengthening psychosocial and medical treatment of people living with HIV - Strategic objectives and service areas: - Increase access to medical and psychosocial treatment for people infected with HIV (estimated at 110,000). - Quantitative target: increase access from 6.7 percent to at least 15 percent by the end of 2013 via expanded adult and pediatric treatment, psychosocial care in hospitals and communities, and strengthened treatment for HIV/TB co-infections. - Increase tolerant attitudes among adults aged 15-49 toward people living with HIV from less than 25 percent to over 50 percent by the end of 2013 through intensified fight against stigma and discrimination. ### AXIS III: Reduction of the impact of AIDS and promotion of human rights - Strategic objectives and service areas: - Ensure 100 percent access to basic social services by the poorest households affected by HIV via reinforced programs for orphans and other vulnerable children, economic empowerment of people living with HIV and vulnerable groups, educational and nutritional assistance, and workplace HIV/AIDS interventions. - Promote and protect the rights of people living with HIV by fostering a favorable legal environment to protect the rights of PLWHA. ### AXIS IV: Improvement of monitoring and evaluation, research, epidemiological surveillance and information management system - Strategic objectives and service areas: - Improve epidemiological surveillance of HIV among pregnant women and specific groups (sex workers, blood donors, persons infected with tuberculosis) through epidemiological monitoring, behavioral monitoring combined with biological surveillance for highly vulnerable groups, and monitoring of drug resistance. - Promote operational research on HIV/AIDS. - Strengthen the national system for monitoring and evaluation of HIV/AIDS. ### AXIS V: Strengthening coordination, partnerships and governance - Strategic objectives and service areas: - Promote a conducive environment for multi-sectoring and decentralization of the national response to HIV/AIDS by strengthening coordination. - Strengthen advocacy and partnerships at national and international levels for the national response to HIV/AIDS. - Ensure mobilization and rational, transparent management of resources allocated to the fight against HIV/AIDS. ### Food security and nutrition (paragraph 1127) - Four aspects of food security: - availability (within country production, import capacity and storage as well as food assistance); - access (depends on the buying power and infrastructure availability); - stability (of the infrastructure but also of the weather and of the political environment); - salubrity/quality (hygiene). - Cross-cutting program targets: - Strengthening of foodstock and fishing products. - Improvement of households' buying power. - Logistics development (storage infrastructure, preservation infrastructure, distribution chain, transportation, etc.). - Availability of quality food. - Development of law related to standards of food production corresponding to criteria on good and balanced nutrition. - Nutrition education programs at all levels via: - social communication; - communication through school programs; - institutional communication. ### Social welfare and inclusion of vulnerable groups (paragraphs 1128–1131) - Social welfare focus: risk management integrating labor policies, social insurance, social safety nets, prevention/mitigation/response strategies involving many actors. - Priority services and actions: - Socio-professional integration of disabled persons. - Support to senior citizens for active aging. - Psychosocial care of the needy and victims of HIV/AIDS and other debilitating diseases. - Establishment of protection and social security mechanisms for informal sector workers. - Better management of vulnerability to shocks. - Capacity building of structures and human resources for social action, including creating a higher institute of social work. - Promotion of mutual health insurance: - Government measures to promote micro-insurance, encourage health care mutual societies and community mutual health insurance companies, raise awareness of benefits of mutual societies, and promote community entrepreneurship. ### Vulnerable groups, family, childhood and related programs (paragraphs 1132–1139) - Recent social measures and statistics: - Provision of some free services (tuition fees, malaria treatment for children from 0 to 15 years, identifying women suspected of obstetric fistula, socio-economic reintegration of women cured of that disease, caesarean operations, etc.). - Transport allowance of CFA F 10,000 for civil servants and 10 percent increase in the minimum wage paid to state employees, from 64,000 to 70,000 CFA francs. - Increase by more than 100 percent of monthly family allowances paid by the State to dependent children of civil servants (from 1,200 to 2,000 CFA francs in 2011, now increased to 5,000 CFA francs per child per month). - 50 percent increase in student scholarships. - Government financial responsibility for approximately 22,106 orphans and other vulnerable children; rehabilitated 300 street children between 2009 and 2010; sent 411 children to school during the same period. - Disabled persons: - Government took charge of 1,600 persons with disabilities between 2009 and 2010. - Planned actions: production of media for sign languages and Braille; literacy programs for adolescents and adults with disabilities; support for early detection and treatment of disabilities. - Indigenous peoples and minorities: - Enrolled more than 4,011 indigenous children between 2009 and 2010; 4,864 benefited from other programs during the same period. - Promulgation of Law No. 5/2011 on protection and promotion of indigenous rights. - Specific medical support planned for albinos. - Female empowerment: - Women represent 51.4 percent of the population (ECOM2 survey); in rural areas women actively involved in production: 58.3 percent. - Female empowerment objectives: improve political, economic, social and cultural status of women; protect and preserve the family; capacity building of institutions promoting family and households with orphans and vulnerable children. - Main programs: - Economic: improvement of the land code to facilitate women's access to land, facilitation of access to finance including microfinance, accelerated literacy programs targeting women, and strengthening managerial capacities via targeted training. - Legal: revision of the legal framework to ensure gender equality (laws on inheritance, matrimonial laws, political parties, etc.). - Political/administrative: appointment of women into government, public and private organizations, and direct support to women's associations. ### Sports, culture, arts, civic education and youth (paragraphs 1140–1143) - Sports infrastructure investments: rehabilitation of MASSAMBA-DEBAT stadium and Pointe-Noire municipal stadium; construction of Denis SASSOU NGUESSOU Stadium at Dolisie, Marien NGOUABI Stadium at Owando, and a multi-sports gymnasium at Oyo. - Notable sports achievements: - Football: African champion in the African Juniors’ Cup in 2007; winner of the CEMAC Cup in 2007 and 2010; bronze medalist at the CAF African U-17 Championship and a quarter-finalist at the World Cup for the same category in 2011; gold medalist at the Francophonie Games in 2009. - Handball: Congolese teams twice reached the finals of African competition; Congo was a silver medalist at the African Games in Maputo in 2011. - Table tennis: gold medalist at the African championship in 2007; gold medalist for ladies and bronze medalist for men at the 2009 world championships. - Programs and key actions: - Finalization of the national sports development plan as part of a public-private partnership to equip every division with sustainable infrastructure. - Capacity building for sporting activities with continued construction and rehabilitation of infrastructure. - Promotion of physical education via development of sports platforms in schools and universities. - Development of cooperation and partnerships with sports associations and international organizations. - Organization of school and university games and local/divisional competitions to identify talent. - Culture and Arts: - Recent national and international recognition (e.g., Prix Goncourt in 2004; participation at FESMAN in December 2010). - Programs and key actions: protection of national heritage; promotion of arts and cultural industries; construction of the City of Culture (to house FESPAM), the National Museum, and the department of national archives and documentation; construction of cultural and artistic premises in each division; development of national and international partnerships. *Source: National Development Plan CONGO DSCERP 2012-2016, paragraphs 1126–1143* ### 1144. After the long period of political instability and disintegration of public ### After the long period of political instability and disintegration of public administration ### Civic education and ethical rehabilitation - Congolese society requires "a form of ethical rehabilitation." - Civic education is identified as "an essential ingredient" to achieve Congo’s modernization and industrialization goals as advocated in "the Road to the Future." - Main programs and key actions: - (i) the development of the National Youth and Civic Education Policy; - (ii) the fight against anti-values; - (iii) promoting a culture of peace and citizenship education; - (iv) improving the management of young people’s associations; - (v) the creation of a venture capital fund for youth; - (vi) the development and teaching of civic education programs at the preschool, elementary and secondary levels, and in the workplace; - (vii) the rehabilitation of youth camps (Djoué Kindamba Aubeville, Odziba). ### Balanced territorial development — overall objectives - Aim: "to make each portion of the territory a decisive link in the creation of wealth, training, development of economic centers and multiform exchanges." - Mechanism: decentralization to define relevant areas, a policy-making framework, limits of State action, and forms of support for decentralized communities. - Outcome: decentralized communities will be endowed with legal personality and financial autonomy to formulate development policies through a participatory approach. ### Spatial imbalances and strategy - The distribution of population and activities is "particularly unbalanced" with "considerable differences in living standards" between urban and rural areas. - Strategy for balanced regional development includes: - opening up production areas; - ensuring environmental sanitation; - strengthening the quality of public services; - accelerated development of municipalities; - programs to revitalize the fabric of village life; - development of cross-border development basins. ### Program for the accelerated development of infrastructure in municipalities - Purpose: proactive urban program to set up basic infrastructure and equipment to gradually eliminate the deficit in core public services. - Two major components: - (i) major works projects; - (ii) projects described as prefectural. - Major works projects target an urban structure composed of: - two benchmark cities: Brazzaville and Pointe Noire; - seven smaller cities creating a balance: Dolisie, Mossendjo, Nkayi, Owando, Ouesso, Oyo, Impfondo and the Oyo/Ollombo double center; - five Departmental centers: Sibiti, Madingou, Kinkala, and Djambala Ewo (as listed). - Types of projects to be implemented: construction of urban road networks, sanitation facilities, local government offices, official residences, bus stations, heliports, airports, electricity and water supply networks, high courts, modern markets, sports platforms. - Multilateral cooperation programs mentioned: Water, Electricity and Urban Development Program (PEEDU) and Transparency and Governance Capacity Building Program (PRCTG). - Prefectural (medium-size) projects: construction and equipping of integrated health centers, nursery, primary and secondary schools, public security stations, gendarmerie brigades and official housing. - Policy role: "support tool and a means for implementing Government’s economic and social policy" and strengthening attractiveness of cities. ### Revitalization of the village fabric - Problem statement: - Villages are largely "the legacy of a former organization" with reduced population density and threatened with extinction. - Deterioration of living conditions has restricted rural producers' ability to supply urban markets; isolation and lack of storage/warehousing lead villagers to consume their own products. - Proposed response: redeployment of activities across rural areas with targeted interventions and contributions from private sector, local communities, associations. - Two major components of the revitalization program: - (i) contracts between State and Department; - (ii) Millennium Villages. - Contracts between State and Department: - Tool for financing regional planning policy and formalizing relations between State and divisional councils. - Provide annual enumeration of priorities "supported by figures" expressed by local authorities. - Current estimate: "1.5 billion CFA francs per year, per Department council." - Expected effects: - stimulate production methods adapted to demand; - intensify trade networks within rural areas and with neighboring countries; - strengthen rural areas by creating structured, integrated and attractive village centers. - Millennium Villages tested at Etoro Obaba: - Financing by State, local governments, NGOs and development partners (notably UNDP). - Aim: trigger local economic initiatives and contribute to achieving the Millennium Development Goals (OMD). - Expected to facilitate repopulation of villages and develop village functions via investments in eight spheres of activity. ### Eight spheres of activity for village investment (exact list) - (i) Supply of electricity by generator or solar panels to provide the energy needs for refrigeration, telecommunications and water pumping; - (ii) Construction or rehabilitation and equipping of full cycle primary and secondary schools with latrines and housing for the teaching and administrative staff; - (iii) Construction of markets with conservation structures for fresh food (fish, meat, fruits and vegetables) and warehouses for various products for urban markets; - (iv) Construction or rehabilitation and equipping of integrated health centers with housing for nursing and administrative staff; - (v) Development of areas for practicing sports leading to inter-village competitions; - (vi) Construction of multipurpose halls in major villages for community meetings. They will also be used for the celebration of marriages, the organization of small local civil status events, projection of films, theater; - (vii) Construction of equipped lodging houses located close to the multi-purpose hall with an accommodation capacity of 3 to 4 bedrooms; - (viii) Construction of a small commercial area in large villages including a shop and service station to be negotiated with the private individuals, and surrounded by small shops for carrying out repairs, maintenance, vehicle troubleshooting, mopeds, nautical facilities and generators. It will have a spare parts store, and a system for recharging cellphone batteries. ### Categories of basic communities in the village program - (i) village centers as main hubs concentrating equipment to stop rural collapse; - (ii) regrouped villages promoted via incentives to increase production capacity and return on investment; - (iii) large border villages as showcases and "bridgeheads" of Congo to strengthen Congo’s role as a "transit country" in the sub-region, taking into account infrastructure projects in neighboring countries. ### Development of cross-border development areas - The village-equipment program will lead to development of cross-border development areas to revitalize trade with neighboring countries. - Cross-border areas are located close to priority development corridors identified by NEPAD and heavy transport roads in the Consensual Master Plan for Transport in Central Africa (PDCT-AC). - Note on regional integration: - Macroeconomic coordination is advancing in the Economic and Monetary Community of Central Africa, but cross-border cooperation is lagging. - Integration within ECCAS is low, especially between DRC and RC, due to weak communication infrastructures, difficulties implementing trade agreements, and regional business climate issues. - Main cross-border areas (as listed in the source): - Littoral (Kouilou): Pointe-Noire, Tchiamba - Nzassi — Angola /DRC — Cabinda Matadi - Bas-Congo (Niari, Bouenza, Pool): Madingou, Mindouli, Kinkala — DRC — Bandza-Ngungu, Luozi - Stanley-Pool: Brazzaville, Pool — Brazzaville — DRC — Kinshasa - Moyen-Congo: Cuvette — Mossaka — DRC — Mbandaka - Haut Oubangui: Likouala — Enyelle, Betou — DRC/CAR — Bangui - Haute Sangha: Sangha — Ouesso — Cameroon/ CAR/ Gabon — Mouloundou, Nola, Mékambo - Haut Ogooué: Niari, Lékoumou, Plateaux, Cuvette-Ouest — Mossendjo, Sibiti, Zanaga, Okoyo — Gabon — Franceville, Mouanda, Léconi - Each cross-border area will have a portfolio of projects housed in a common cross-border development plan (PCADT) with a development vision for the area. ### Protection of the environment and the fight against climate change - Territorial and natural resource facts: - Republic of Congo surface area: "342,000 square kilometers"; - "65 percent" of the country is covered by a forest ecosystem of an area of "22,471,271 hectares"; - Navigable inland waterway network: "7,276 km" with "5,200 km" for the international network and "2,076 km" for the domestic network. - Basins and coastal facts: - Two basins: the Congo-Ubangi Basin (north) and the Kouilou-Niari Basin; - Coastal zone spans "170 km" and has a continental shelf of "200,000 nautical miles." - Fresh water resources and uses: - Total fresh water produced estimated at "1.588 trillion m3." - Water captured use breakdown: domestic "69 percent", industrial "22 percent" and agricultural "9 percent". - In urban areas, the drinking water supply coverage rate is "barely close to 40 percent." - Policy framing: - All actions must be conducted in an environmentally-friendly framework to limit depletion of natural resources and effects of climate change. - Emphasis on developing mechanisms for adapting to climate change. - The integration of environmental dimension in DSCERP focuses on: (i) analysis of the situation that integrates management, environmental protection and climate change aspects; (ii) strategies and programs for 2012-2016 defining guidelines and programs. - Approach: action pole that takes into account cross-cutting issues. - Environmental status and concerns: - The 1992 status highlighted weaknesses: irrational tapping of natural resources, increasing air pollution, destruction of aquatic fauna and coastal ecosystems, release of foul odors and proliferation of insects. - Need to implement a sustainable development policy that builds on positive correlations between development and environment. ### Environmental protection — policy intents - Environmental policies aim to: - (i) strengthen institutional capacity; - (ii) combat all forms of pollution; - (iii) clean up the environment and improve the living environment in compliance with international Conventions and Treaties, especially those related to the Millennium Development Goals (MDGs); - (iv) develop sector policies on the environment in all areas. *Source: _cr12242 - 1144. After the long period of political instability and disintegration of public administration (National Development Plan CONGO DSCERP 2012-2016).* ### 1169. With regard to natural resources, although the level of implementation is ### With regard to natural resources, although the level of implementation is ### Natural resources management — overall intent and goals - Government wishes to ensure the sound management of renewable natural resources and to ensure that the plant, animal and marine environment sectors are managed sustainably. - The level of implementation is dictated by the PNAE, which needs to be refreshed like the PAFN which is being updated. - Major objective: manage natural resources rationally to improve conditions and living environment of the population and ensure that future generations have sufficient natural resources. ### Forestry resources — status, targets, and initiatives - Draft plan prepared to implement REDD+ to access the trade-off mechanism for efforts to limit greenhouse gas emissions from the forest sector and to develop potential to obtain payments for environmental services (PES). - Key performance indicators: commitment to and implementation of sustainable forest management. - Achievements and statistics: - more than 2 million hectares of forest have been certified (FSC) for logging; - low annual rate of deforestation estimated at 0.07 percent (the lowest in the sub-region); - protected areas currently occupy about 11 percent of the country. - Vision excerpt (Convergence plan for Central Africa): "The Central African States shall sustainably manage in a concerted manner their forestry resources for the welfare of their populations, for the conservation of biodiversity and for the safeguarding of the global environment". - Protected-area development: development plans for Odzala-Kokoua and Lossi parks support protected-area extension. Box 2 — Forestry issues and climate regulation (policy elements and targets) - Forest roles: reservoir of biological resources; provision of environmental goods and services; regulation and stabilization of the global climate. - National policy elements: - The reduction of deforestation and the sustainable development of 5 million hectares of forest; - FSC certification of large forest concessions over an area of 2.5 million hectares; - The establishment of a timber traceability system as part of voluntary partnership agreements with the European Union; - Creation of a national and cross-border network of protected areas totaling 11.2 percent of the country for the conservation of biodiversity; - The adoption of RPP REDD+. - Objectives of the forestry policy: - strengthen legality and exploitation and management of forests through national and council forest control strategies; - improve transparency via traceability techniques and a reliable forest information system; - strengthen forest governance. - Additional commitment: Government has undertaken to plant one million additional hectares over the next ten years (cf. National Afforestation and Forestation Project). ### Water resources and coastal zones - Hydrographic basins and coastal features: - Country is home to two basins: the Congo-Ubangi Basin and its tributaries in the north, and the Kouilou-Niari Basin and its tributaries, lakes and lagoons; - Both basins drain fresh surface, ground and atmospheric water; - Coastal zone extends for over 170 km with a continental shelf of 200,000 nautical miles. ### Climate change — vulnerability, mitigation, and adaptation needs - Vulnerable areas identified in the Initial National Communication (INC) of the Congo (2001): - i) water resources; ii) coastal areas; iii) agriculture; iv) forestry; and v) energy. - Two levers for action: mitigation and adaptation. A project called PAA plans to support the Government's efforts. - Current mitigation focus: - Forestry policy used to reduce or mitigate GHG emissions because forest acts as an indisputable carbon sink; carbon gas sequestrated by the forest is higher than the total GHG emissions of the country. - Need to improve quality of the inventory of emissions and to work to reduce emissions from deforestation and forest degradation in the context of the RPP, REDD and carbon sequestration by afforestation and reforestation. - GHG emissions in the Congo in 2000 remain largely offset by the sequestration capacity of forests. - Bushfires are said to be responsible for the vast majority of GHG emissions from the agricultural sector. - Adaptation gap and requirements: - Adaptation strategy is lacking and needs to be established. - Measures to be addressed: - i) consistent cross-sector adaptation strategies necessary at the national level for an overall adaptation vision for the country; - ii) reliable information and data on the results of climate change must be collected; - iii) legislative and technical assistance necessary to strengthen the human and institutional capacity of Congo; - iv) a solid institutional framework necessary for coordination, effective implementation of a strategy for the adaptation and integration of adaptation into mainstream development activities. - Specific strategic objective: establishing the adaptation unit at the level of climate governance. ### Strategy, principles, and institutional approach - Strategy foundations: conventional foundations and policies applying principles of precaution, prevention, information, education, communication, accountability, participation, intergenerational equity, coordination and operational synergies, and cost internalization on the “he-who-pollutes-must-pay” principle. - Biodiversity conservation: manage conservation of biodiversity in a participatory manner involving all national and international stakeholders, sub-regional organizations and donors on the basis of partnership agreements (public/private, national/international, men and women). - Multisectoral approach: - Strategy for conservation of biodiversity will be developed in an integrated multi-sectoral approach as recommended in the NEAP in synergy with other policies and programs and consistent with sectoral programs of the ministries concerned. - Requires coordination between different technical departments involved in biodiversity management. - Four specific objectives to achieve the major objective of rational natural-resource management: - (i) capacity building of all actors involved in the management of biodiversity; - (ii) preserving in a participatory manner representative areas of the different ecosystems to ensure their sustainability; - (iii) ensuring the rational and sustainable use of resources and equitable sharing of roles, responsibilities and benefits arising from the management of biodiversity; - (iv) establishing the adaptation unit at the level of climate governance. - Implementation framework: - Actions organized as a National Program for Environmental Management serving as a framework for priority actions for the 2012-2016 period, organized around key action sub-programs based on a National Strategy for the Integrated Management of the Environment. - Republic of Congo is committed to developing regional cooperation programs, like actions on forest issues in the Congo Basin (COMIFAC). - Republic of Congo will establish an essentially cross-cutting strategy implemented by several sectoral ministries using integrated and multisectoral approaches and ecosystem-based management, with the Ministry for the Environment allocated a coordinating role. *Source: National Development Plan CONGO DSCERP 2012-2016 (STP/DSCERP).* ### 1199. Emphasis will also be placed on the development of human capital by strengthening ### _cr12242 - 1199. Emphasis will also be placed on the development of human capital by strengthening ### Human capital development - Strengthen the education system and improve the health system to support development of other sectors. - Education: strengthen construction of government high schools and vocational training centers in particular. - Health: strengthen national coverage of basic health care by (i) construction and rehabilitation of health infrastructure and transformation of health units into modern clinics (in terms of equipment), and (ii) promoting the fight against major epidemics, pandemics and disabling diseases. ### Growth and inflation trend - Overall growth projection: - The Congolese economy is expected to grow on average by around 8 percent over the 2012-2016 period, or by a 1 percentage point above the average growth recorded between 2008 and 2011. - Non-oil sector expected average growth: 10 percent over 2012-2016. - Sectoral growth expectations: - Primary sector (excluding oil): average growth of around 10.5 percent (up from 4 percent between 2008 and 2011). - Secondary sector: average growth of 11 percent (up from 7 percent between 2008 and 2011). - Tertiary sector: average growth of 9.5 percent (4 percentage points above the average growth rate recorded between 2008 and 2011). - Mineral resource scenario: - With tapping of mineral resources, the economy could grow by an average of 13 percent over the 2012-2016 period. - Production of other minerals should begin in 2012 with output of about 76 000 tons, expected to reach 112 million tons by 2016, with 98 percent of output being iron. - Structural change in GDP shares by 2016: - Tertiary sector share expected to increase by 2 percentage points to 43 percent in 2016. - Secondary sector share expected to increase by 1.5 points to 14.5 percent in 2016. - Primary sector weight expected to decline by 3.5 points over the period. - Demand drivers and investment: - Economic growth expected to continue to be supported by domestic demand driven by the public sector (particularly investments). - Volume of investments expected to increase at an annual rate of 17.8 percent over the period. - Consumption growth expected to average 4.5 percent over 2012-2016 (3 percentage points below average GDP growth). - Resulting increase in national savings to support private investment. - Trade balance: - Trade balance expected to contract due to increased imports required for modernization and transformation. ### Money and Credit - Monetary policy: remain prudential while accommodating economic growth needs. - Financial deepening: - Ratio of money supply to GDP: 32.2 percent on average over 2012-2016 (up from 24.6 percent between 2008 and 2011). - Money supply growth: about 19 percent on average over 2012-2016. - Money supply growth consistent with pace of non-oil sector activities (13 percent on average). - Net foreign assets expected to grow strongly. - Banking system backing of economic activities: 12 percent on average over 2012-2016. ### Tax support: Revenues and Expenditures - Fiscal strategy: - Continue efforts in non-oil revenue collection and expenditure control to obtain sufficient budgetary margins to implement key DSCERP programs, especially human capital improvement and basic infrastructure provision. - Revenue projections: - Own revenues expected to record an 8 percent average growth over the period, driven by higher non-oil revenue (10 percent average). - Ratio of tax revenues to non-oil GDP expected to increase by 2 percentage points compared to the average level for 2008-2011. - External resources expected to record strong growth; external financing mobilized over 2012-2016 would represent 10.6 percent of GDP on average compared to very low levels during 2008-2011. - Mobilizations to be predominantly concessional in keeping with HIPC Initiative commitments. - Expenditure projections: - State expenditure expected to record an average growth of around 20 percent during DSCERP implementation. - Capital expenditure growth: 26 percent on average. - Total spending expected to represent an average of 38 percent of GDP (up from 27 percent between 2008 and 2011). - Running costs growth: 11 percent on average; expected to remain sufficient to meet social commitments. - Fiscal balance: - Despite funding needs, expected tax performance would allow maintaining a surplus in the basic balance for commitments, excluding grants. - This surplus would represent an average of 3.4 percent of the GDP. ### Inflation - Inflation outlook: - 2012-2016 period expected to be marked by a significant decline in inflationary pressures. - Inflation rate should fall below the community standard of 3 percent by 2016. - Drivers of lower inflation: - Better supply of major urban centers by rail and land. - Improved electricity supply. - Decrease in international prices of basic commodities resulting from a drop in European demand. ### 2012-2016 Budget guidelines — Methodology - Organizational process: led by officials from the Ministry of Finance, Budget and Public Portfolio (MFBPP) and the Ministry of Economy, Planning, Regional Planning and Integration (MEPATI). - Technical basis: funds obtained from the macroeconomic framework of reference. - Two government concerns reconciled: - Maintaining a stable macroeconomic framework through rigorous pursuit of the Government’s (Extended Credit Facility) Program supported by development partners. - Ensuring sustained growth in public spending, especially actions accompanying diversification policies to accelerate growth, create jobs and reduce poverty; increased attention to social sectors, infrastructure, and productive sectors. - Modeling: budget simulations based on the Central MTEF module of the Macroeconomic and Budget Framework Model (MTEF MCMB-RC-Central) produced a profile of budget allocations reconciling these goals. ### Major challenges and strategy guidelines - Government ambitions for 2012-2016 include: - Modernization and industrialization of the country. - Improvement of governance and consolidation of peace. - Promotion of growth and macroeconomic stability. - Improvement of access to basic social services and the social environment. - Integration of vulnerable groups and fight against debilitating and endemic diseases, particularly HIV/Aids. - Achieving objectives requires proper orientation of budgetary allocations. ### Budget allocations per strategy axis and objective - Guiding principle: align resource allocations with Government priorities and sector needs drawn from Priority Action Programs (PAP) of ministries and institutions, within the Medium Term Expenditure Framework (MTEF). Social development - Focus: increase resources to strengthen education and health promotion; attention to youth issues and inclusion of vulnerable groups. Education - Allocations for education: 12.95 percent of total expenditure in 2016 (up from 11.68 percent in 2011), an upward trend of 1.27 percentage points. - Sector PAP challenges include: - (i) strengthening human capacity, constructing infrastructure and providing equipment for the educational system, - (ii) improving sector management, - (iii) improving quality of service and teachers’ conditions, - (iv) improving social services, - (v) reducing disparities between boys and girls and keeping girls and children of disadvantaged groups in the system, - (vi) strengthening the fight against HIV/Aids in schools. - Primary and secondary education priorities: - Construction and rehabilitation of classrooms. - Construction and acquisition of laboratory and library equipment. - Construction of government high schools of excellence. - Planned construction/rehabilitation: Marien Ngouabi University, Pointe-Noire Polytechnic School, Kintele University, Dolisie Advanced Teachers Training College of Arts and Trades and the Sibiti School of Tropical Agriculture. - Higher education: - Improve availability of education opportunities by building engineering schools and instituts in geographic regions. - Planned building/renovation: "Marien NGOUABI" University, Polytechnic of Pointe-Noire, University of Kintele, "Ecole Normale Superieure des Arts et Metiers" of Dolisie, and "Ecole Superieure d'Agronomie Tropicale" of Sibiti. - Technical Education and Vocational Training: - Focus on skills training suited to economy needs. - Plans include: government agricultural technical high schools at Makoua, vocational training center at Owando, fishery and inland water economy school at Mossaka. Health and nutrition - Allocations for health and nutrition: 8.22 percent of total expenditure in 2016, an increase of 0.88 percentage points compared to 2011. - Goals: improve health status of population, especially woman and child (significant reduction in mortality rates), by strengthening health system and controlling HIV/Aids, malaria and tuberculosis. - Actions: strengthen national health coverage through construction and rehabilitation of health infrastructure and equipping health units to transform them into modern clinics. Social welfare and inclusion - Extend social welfare to entire population. - Improve access to education by children with disabilities. - Reduce youth vulnerability for social and economic insertion. - Promote and protect rights of indigenous peoples and other minorities. Diversification of the economy and promoting growth - Pursue diversification policy to break dependency on oil and position economy for sustainable growth by increasing resources devoted to production activities. Agriculture, livestock and fisheries - Aim: increase agro-pastoral production sustainably to reduce dependency and ensure food security. - Support farming communities by developing infrastructure for production, transportation and marketing. - Fisheries actions: create conditions to improve fish production and strengthen technical capacities of operators. - Plans to construct and equip docks in Brazzaville, Pointe Noire, Mpouya and Mossaka Makotipoko. - Construct modern fish markets in Yoro, Pointe-Noire, Oyo, Mossaka and Kintele. - Improve and equip laboratory for microbiological and chemical analyses of fishery products at Pointe-Noire. - Resource allocation to agriculture and fish production expected to rise to 3.97 percent in 2016 (up from 3.78 percent in 2011). - Objective: tap the country’s agricultural and fisheries potential. Industry, services and employment promotion - Allocate substantial resources to activities supporting development of industries and services. - Promote businesses that generate employment: commerce, agriculture, tourism, handicrafts, leisure activities through integrated development policies. Economic governance and public finance management - Enhance economic governance, step up fight against corruption, promote judicial governance and strengthen internal security. - Measures and reforms include: - Government Plan of Actions for Public Finance Management (PAGGFP). - Plan of Actions for Improving Public Investment Management (PAAGIP). - New procurement code. - Strengthening the Medium Term Expenditure Framework (MTEF) in all ministries and institutions. Financial sector development - Continue implementation of strategy adopted in December 2008 to expand financial services supply: - Strengthen microfinance sector. - Expand the banking sector. - Remediate insurance sector. Infrastructure development - Infrastructure (notably roads and energy) prioritized as indispensable to growth and private sector development. - Government will devote significant resources to development of energy and water infrastructure. Road sub-sector priorities - Activities planned under Priority Action Program for 2012-2016 DSCERP: - (i) construction and tarring of the Pointe-Noire Brazzaville-Ouesso-Bomassa-Enyele (RN1 & RN2) ridge, - (ii) rehabilitation and tarring of the convergence roads of ten (10) divisions towards this ridge, - (iii) improving level of linking roads between towns and those of the eighty-six (86) districts and six (6) other related municipalities, - (iv) works in village cantons, - (v) stimulating and increasing technical skills of divisional bodies and local authorities, - (vi) protection of heritage (adopting proper regulations, acquisition of axle weighing machines and respect of rain barriers), - (vii) regional integration linking roads: with the CAR and Chad through the Ouesso Enyele-Mongoumba road, with Cameroon through the Ketta Sembé-Souanké road, with Gabon from Ngongo, with Cabinda from Nzassi, and with the DRC through the Brazzaville Kinshasa road-rail bridge. *National Development Plan CONGO DSCERP 2012-2016 — excerpt (pages provided).* ### 1231. Air transport. The Government will continue with the construction of the Brazzaville ### _cr12242 - 1231. Air transport. The Government will continue with the construction of the Brazzaville ### Transport infrastructure (air, maritime, rail, inland waterways) - Air transport - Continue construction of the Brazzaville and Ollombo international airports. - Construct airfields and secondary terminals to improve national coverage. - Merchant Navy - Support diversification of maritime activities. - Establish mechanisms to facilitate maritime transport and enhance monitoring of Congolese territorial waters. - Protect marine and coastal environment by strengthening the fight against polluting effects of oil production barges. - Rail transport - Rehabilitate and construct infrastructure, focusing on workshops and training centers. - Work on the Pointe-Noire - Brazzaville railway link through the removal of singular points, rehabilitation of the long tunnel, and construction of structures. - Acquire locomotives and passenger cars to improve service quality. - Inland waterway transport - Continue inland waterway maintenance and river ports rehabilitation. - Develop river transport to facilitate timber flow from northern regions and improve inland fisheries. ### Energy and water supply - Production and supply of electricity - Expand infrastructure for production, transmission and supply of electricity by the NES. - Increase energy production by the Djéno gas plant. - Construct Very High Voltage transmission lines associated with the Imboulou dam. - Construct a hydroelectric dam on the Li-Ouesso. - Improve operational capabilities of the NES. - Supply of running water - Expand and modernize the Djiri plant. - Improve SNDE operational capabilities. ### Balanced and sustainable development; forestry and environment - Increase resources allocated to climate change and environmental issues to provide adequate solutions. - Promote harmonious regional development taking environmental issues into account. - Logging sector actions: - Develop non-timber products. - Implement community forest plantation projects. - Promote regeneration and sustainable management of degraded forest ecosystems. ### Governance and promotion of democracy - Resources allocated to Governance and Promotion of Democracy will grow less quickly compared to infrastructure and social axes. - Maintain resources for: - Enhancing internal security and judicial governance to improve conditions inside the country and support private sector emergence. - Efforts to improve administrative governance. - Given progress in political governance and final return to peace, increases in funding for “Promoting Political Governance and Strengthening Democracy” and “Strengthening of National Defense” will be contained. ### 2012-2014 budget guideline shares (selected figures from Table 67) - Strategy Axis 1 : Promotion of Democracy and Governance - 2010: 23,96% - 2011: 21,15% - 2012: 20,78% - 2013: 20,54% - 2014: 20,25% - 2015: 20,13% - 2016: 19,94% - Strategy Axis 2 : Economic Development and Growth Promotion - 2010: 15,46% - 2011: 13,93% - 2012: 13,81% - 2013: 13,71% - 2014: 13,48% - 2015: 13,42% - 2016: 13,34% - Strategy Axis 3 : Development of infrastructure - 2010: 32,56% - 2011: 36,84% - 2012: 36,93% - 2013: 36,76% - 2014: 36,93% - 2015: 36,76% - 2016: 36,52% - Strategy Axis 4 : Social Development - 2010: 23,07% - 2011: 22,03% - 2012: 22,40% - 2013: 22,89% - 2014: 23,23% - 2015: 23,59% - 2016: 24,10% - Strategy Axis 5 : Balanced and sustainable development - 2010: 4,95% - 2011: 6,06% - 2012: 6,08% - 2013: 6,09% - 2014: 6,12% - 2015: 6,10% - 2016: 6,10% ### Social desirability and MDGs — growth, poverty, education, health - Growth assumptions and projections - Economic growth over 2012-2016 expected to be around 8 percent. - Non-oil sector growth expected to reach 10 percent on average. - Non-oil sector historical performance: average 6.6 percent over past 10 years with an 8.5 percent peak in 2001. - Poverty reduction projections - Income poverty rate: 50.7 percent in 2005 to 33.4% in 2015. - Projected further decline to 31.4 percent in 2016. - The 2015 projection is 2 percentage points below the fixed target of 35 percent. - Education - Major efforts in education expected to achieve universal education by 2015, driven by considerable public spending on education and sustained per capita income growth. - Health (projections) - Increased resources for free treatment of malaria, HIV/Aids and caesarean sections. - Child mortality: 117 percent in 2005 to 98.7 percent in 2016. - Infant mortality: 75 percent in 2005 to 59.3 percent in 2016. - Despite gains, respective targets of 85 percent (child) and 56 percent (infant) set for 2015 would not be met. ### Macroeconomic sustainability: key projections and indicators - Growth and inflation - Baseline assumes average growth of 8 percent over 2012-2016. - Non-oil activities expected average growth of 10 percent. - Consumer price trends expected to fall below the community’s standard of 3.0 percent by 2016. - Investment and capital efficiency - Investment rate projected to increase from 32 percent on average (2008-2011) to 47 percent (2012-2016). - Increase of 15 percentage points over the five-year period; average increase ~3 percentage points per year. - Public component expected to record overall increase of 16 points over the period. - Non-oil sector private investments expected to increase by 3 percentage points, closing at 10 percent on average over 2012-2016. - Investment rate in oil sector expected to decline by 4 percentage points compared to 2008-2011. - Private consumer rate expected to drop from 62 percent (2008-2011 avg) to 58 percent (2012-2016). - Credit to the economy expected to grow by 12 percent on average over the projection period. - Return on invested capital expected to improve over 2012-2016 due to DSCERP reforms. - Tax levy trend - Average tax levy rate (ratio to GDP) projected to increase from 23 percent (2008-2011) to 25 percent (2012-2016). - Note: tax levy was 26.1 percent in 2011. - Expenditure growth and composition - Public spending average growth projected at 22 percent over 2012-2016 (up from 10.0 percent between 2008 and 2011). - Ratios to GDP: from 27.0 percent on average (2008-2011) to 37 percent (2012-2016). - Of the 2012-2016 increment, 11 percent is for current expenditure and 26 percent for capital expenditure. - Current expenditure to GDP ratio expected to drop by 3 percentage points from 14 percent (2008-2011 avg). - Staff expenses expected to remain around 3 percent of GDP, with average growth of 8%. - Capital expenditure ratio to GDP projected to rise from 12 percent (2008-2011 avg) to 26 percent (2012-2016), an increase of 14 percentage points. - By 2016, foreign-financed expenditure share in total capital expenditure expected to be 38 percent (21 percent in 2011). - Public debt and repayment capacity - Outstanding debt expected to remain below 30 percent of GDP. - Induced debt services expected to represent less than 2 percent of budget revenues. - Debt service relative to export earnings expected to be around 1 percent. - Continued receipt of concessional financing in the form of project loans within sustainability limits. ### Risk analysis and scenarios - General note - Baseline assumptions depend on international economic environment, internal socio-political situation, and the country's ability to carry out DSCERP reforms and programs. - Significant deviations in assumptions could affect growth, employment, and poverty reduction. - Three main scenarios analyzed: - (i) Trend scenario: “business as usual” - (ii) Unfavorable reversal scenario: fall in prices of Congo’s major export products (oil, timber and other mining products) - (iii) “Procrastination” scenario: sluggish implementation of major reforms and key DSCERP programs/projects - TREND SCENARIO: “BUSINESS AS USUAL” — assumptions - Maintenance of budgetary guidelines as they existed in 2011. - Renewal of the rate of increase of current expenditure. - Slowing the rate of capital expenditure financed from own resources that experienced strong growth in 2011 (54.0 percent). - Maintaining the rate of foreign direct investment, with no sector policy incentives. - Absence of new reforms by tax collection authorities, causing a decrease in the yield of certain taxes. - Persistence of certain dysfunctions observed in public management resulting in low effectiveness of government actions. - Reducing the average growth rate of external support, in line with observations prior to reaching the Completion Point under the HIPC Initiative. *Source: CPCMB* ### 1261. Under these assumptions, the macroeconomic framework would be characterized ### _cr12242 - 1261. Under these assumptions, the macroeconomic framework would be characterized ### Scenario: Trend/procrastination (assumptions summary and macroeconomic outcomes) - Average growth of 4.7 percent, or almost three percentage points below the expected growth in the baseline scenario (8 percent). - Non-oil sector average growth of 8.3 percent or 2 percentage points below the average growth posted in the baseline scenario. - A loss in budget resources of 3.6 percent compared to the expected level in the baseline scenario. This loss will be due, in particular, to non-oil resources (-12.percent). - Poverty outcomes: - Poverty rate would be 45.1 percent in 2015. - Poverty rate would be 44.5 percent by 2016. - These are 10 percentage points above the 35 percent target set for 2015. - Social indicators (2015): - Net primary school enrollment: 92.7 percent (target 100 percent). - Child mortality indicator: 104.7 percent (target 85 percent). - Performance is lower than baseline scenario values (100 percent and 101.9 percent). ### “Unfavorable international environment” scenario: assumptions - Scenario drivers: - (i) a significant decrease in oil and timber prices; - (ii) a drop in the rate of direct foreign investments, particularly in the extractive and timber industries. ### “Unfavorable international environment” scenario: macroeconomic and social outcomes - Economic growth: - Stagnant economic growth at an average rate of 0.6 percent, or a loss of 7 growth percentage points compared to the expected baseline level (8 percent). - Oil sector: average decrease of 23.4 percent over the period. - Non-oil sector average growth of 7 percent, or 3 percentage points below baseline expectation. - Resource mobilization: - Overall loss of resources of 27.4 percent compared to baseline expectations. - 15.6 percent of the loss would be due to the sharp drop in oil resources. - Poverty and social indicators: - Poverty reduction low: 5.4 points against 17.3 points in the reference scenario. - Income poverty rate would be 39.0 percent by 2015 (4 percentage points above the 35 percent target). - Net primary education enrollment ratio: 95.0 percent (target 100 percent). - Child mortality indicator: 111.5 percent (target 85 percent). - Progress below baseline scenario. ### Comparative facts and table highlights (figures preserved as in source) - Baseline scenario growth (average 2012-2016): - GDP: 7,8% - Non-oil GDP: 9,6% - Trend scenario / procrastination: - GDP: 4,7% - Non-oil GDP: 83 (source table shows "83" aligned with formatting in original) - Unfavorable development: - GDP: 0,6% - Non-oil GDP: 67 (source table shows "67" aligned with formatting in original) - Public finances average loss or gain compared to baseline (selected): - Overall loss under trend scenario: -3,6% - Non-oil resources under trend scenario: -12,4% - Overall loss under unfavorable scenario: -27,4% - Oil resources under unfavorable scenario: -32,2% (table entries as presented) - Non-oil resources under unfavorable scenario: -15,6% - MDG indicators by 2015 (selected): - Reference income poverty rate: 33,4% - Trend scenario income poverty rate: 44,5% - Unfavorable scenario income poverty rate: 39,0% - Net primary education enrollment ratio (target 100%): trend scenario 92,7%; unfavorable scenario 95,0% ### Assessment and policy implications from scenarios (text conclusions) - The three scenarios demonstrate the sensitivity of the Congolese economy to: - changing international environment (notably oil prices), and - the implementation (or lack) of internal reforms. - Policy directions to mitigate risks: - Diversification of the economy and reducing dependence on oil to mitigate impacts of unfavorable international reversals. - Government should undertake all efforts for a speedy implementation of DSCERP key reforms and programs to ensure sustained growth, rapid reduction of poverty and job creation. ### Strategy financing: overview and public sector role - Mobilization constraint: transforming development visions into reality is constrained by mobilizing financing; significant needs require strong mobilization of public and private resources. - Government priority: funding strategy for the 2012-2016 DSCERP is a priority, split into: - (i) public sector financing; and - (ii) private sector contribution. ### Instruments and mechanisms for financing the public sector - Main instrument: the State Budget. - Identified obstacles undermining the economy: - Excessive tax burden and special levies: - Tax ratio (excluding oil) said to stand, on average, at above 19%. - A European Union study indicates Congolese companies pay 2.3 times more taxes than in other African countries. - Inefficiency and dispersion of support mechanisms for private sector development. - Government commitments to improve public action: - Strengthen alignment of State Budget with sector priorities; - Enhance transparency in public management; - Tighter control of public spending to reduce unnecessary costs; - Upscale effectiveness and efficiency of tax services; - Programs to reform and improve public finance management. ### Strategy and actions for the 2012-2016 period (public financing needs and allocation) - Total estimated budget financing need: CFAF 13 167 billion (2012-2016). - Average breakdown of needs by strategy axis: - 19,2 percent for Promotion of Democracy and Governance (68.2 percent of needs in this area for “Promotion of Judicial Governance and Strengthening of National Security”). - 20,1 percent for Economic Diversification and Growth Promotion (subshares: 35.2 percent, 14.7 percent and 27.9 percent for three main objectives referenced). - 30,6 percent for Development of Infrastructure (transport infrastructure and public works 58.2 percent; Energy and water infrastructure 28.2 percent of axis needs). - 28,5 percent for Social Development (89 percent of these needs: “strengthen the educational system” 66.1 percent; “Health Promotion and Nutrition” 23.0 percent). - 1,5 percent for Balanced and sustainable development (33.2 percent for “promote local development”; 66.8 percent for “Sustainable Development, Environmental Protection and Climate Change”). - Estimated financing capacity and gap: - Estimated financing capacity can cover up to 73.5 percent of needs for 2012-2016. - Financing gap to be financed: CFA F 3,487 billion (26.5 percent). ### Detailed financing table totals (figures preserved) - TOTAL Needs (2012-2016): 13 167 217 (Figures in million CFA F as presented in source table). - Allocations (2012-2016): 8 832 890. - Provisions (2012-2016): 846 517. - Gaps (2012-2016): 3 487 810. - Coverage rate of needs: 73,5% - Average breakdown of needs: 100,0% ### Traditional financing measures (2012-2016) - Traditional financing consists of: - Domestic resources (oil and non-oil); - External resources (loans and grants). - Government focus: reduce dependence on volatile oil resources and increase non-oil resources (particularly tax component). ### Internal resource mobilization actions - Four policy focuses: - (i) improving the fiscal environment (renewal of printed tax declaration forms; establishment and application of service quality indicators; improvement in taxpayer information); - (ii) continued reorganization and computerization of services (establish specialized management by client and business; expand SYSTAF in sub divisional and divisional centers; develop computer links with Customs and the Budget department); - (iii) rationalization and control of tax expenditure (remove irrelevant incentives; supervise granting of tax benefits under special tax schemes; monitor conformity; systematic assessment of approved tax expenditure); - (iv) broadening the tax base (improve identification and registration of taxpayers; eliminate tax avoidance sources; overhaul taxation to encourage informal sector formalization). ### External resources and debt strategy - Establish a public debt strategy and annex a public debt analysis to the finance law each year specifying: - (i) justification for borrowing; - (ii) debt limits and guarantees granted by the State; - (iii) structure of the portfolio of new loans; - (iv) indicative terms of the new loan capital; - (v) debt sustainability profile. - Implementation of Regulation No 12/07-UEAC-186-CM-15 of 19 March 2007 (CEMAC reference framework) to strengthen the State’s “middle office” role on debt policy. - Continued efforts: - determine and structure financing needs based on programs/projects from PAPs by ministries/institutions; - provide detailed guidelines for negotiation (“front office”) and collect/account public debt information (“back office”). - Government policy: proactive prompt payment of public debt servicing to restore confidence and avoid accumulation of arrears. ### New funding strategy (supplementing traditional financing) - Issuance of government securities: - Use sub-regional and regional monetary and financial markets by issuing government securities (bonds and treasury bills). - Ensure quality of signature by honoring commitments regularly. - Strengthening Public-Private Partnership (PPP): - Introduce service, management or concession contracts for certain public services; - Use BOT (Build-Operate-Transfer) in construction of infrastructure; - Create semi-public companies; - Call to the people for direct contribution to realization of certain socio-economic infrastructure. *Source: CPCMB — National Development Plan CONGO DSCERP 2012-2016 (excerpts)._ ### 1284. Beyond the financial benefits offered by Public-Private Partnership through the loosening ### _cr12242 - 1284. Beyond the financial benefits offered by Public-Private Partnership through the loosening ### Private sector role and PPP rationale - Public-Private Partnership (PPP) combines private sector advantages (access to capital markets, innovation, managerial efficiency) with public service attributes (social responsibility, environmental awareness) to increase chances of policy implementation success. - Government will implement policies to increase private sector funding capacity to enhance contribution to the DSCERP. ### Mobilizing domestic savings and microfinance - Problem: Establishment of banks in major urban centers and account opening requirements limit access by small investors to structured finance. - Strategy: Better regulate development of microfinance institutions through an institutional arrangement to broaden geographical and sectoral coverage by: - (i) bringing together cooperative initiatives that collect resources of organized groups of operators; and - (ii) providing support for multiple mutual benefit associations within administration and other sectors. - Government will assist microfinance institutions to develop a tool to centralize their outstanding loans because the existing central banking risks office does not cover microfinance institutions. ### Regional financial markets and diaspora resources - The stock exchange market of Central Africa (BVMAC) is important for attracting private capital, especially foreign capital, and for collecting long-term savings for medium and long term investments and capital strengthening through public calls for savings. - Diaspora mobilization: Migrant remittances are identified as a significant source of foreign exchange; authorities plan to encourage Congolese living abroad to invest through diplomatic guidance, protection of the diaspora, and incentives to channel remittances into productive investments, such as opening local bank offices abroad. ### Access to financing: constraints and diagnostics - Bank lending in Congo is predominantly short-term, targeted primarily at the business sector and large enterprises, which represent only 0.1 percent of enterprises operating on the national territory. - The financial system is underdeveloped, poorly diversified and largely dominated by the banking sector; other components include insurance companies, retirement funds, microfinance institutions, foreign exchange offices and money transfer facilities. It is noted that there are no pension funds. - The World Bank’s performance indicator (CPIA) for the country is 2.5. The Doing Business classification ranks the country at 173/183, according to its 2011 report. ### Strategy and actions for 2012-2016 (levers and approaches) - Levers to target during 2012-2016: - Development of access to capital; - Improvement of the regulatory, judicial and security environment; - Promotion of risk-sharing systems; - Strengthening of information systems concerning business opportunities; - Promoting entrepreneurship training and development of a spirit of rigor in management; - Improving conditions for increased competitiveness; - Removing (administrative and commercial) barriers to creation and development of private entrepreneurship. - Two complementary approaches: - (i) a comprehensive approach to promote emergence of the private sector as a whole; - (ii) an approach by product or by industry to promote products or key sectors. - Overarching “Matrix Strategy” to combine both approaches while focusing on products and strategic sectors that contribute to economic diversification. ### Development of the financial sector and improving access to capital - Government will implement the financial sector development strategy adopted in 2008 under the PRGF program with support from the international financial community, particularly the IMF. - Objective: Make the financial system the primary means of financing the economy over the next five years, including faster internalization of regional reforms and greater facilitation of establishment of foreign banks. - Capacity building: Increase vocational training in financial careers (banks, insurance companies, fund managers, venture capitalists, brokers, analysts, rating/evaluation agents). ### Measures to develop banking services and SME support - Complementary measures include development of non-financial services supply to companies, establishment of credit incubators, and creation of specialized institutions. - Support for enterprise creation through FIGA (Impulsion, Guarantee and Support Fund), being created, to provide: - “ante-creation support” and “post-creation support”; - training for developers/business leaders; - SME Observatory role via centralization of SME documentation and accounting information; - strengthen SME capital base by granting subordinated loans conditioned on equity increase. - Key actions: accompany developers in creating business and create tools to support credit. ### Credit support tools and information infrastructure - Obstacles: Mortgage constitution hampered by prohibitive cost and complex procedures; dysfunctional judicial system raises authenticity concerns; banks prefer personal guarantees which SMEs struggle to provide. - Central banking risks office: - Centralizes bank liabilities and provides level of commitments of customers across the banking system to identify bad debtors. - Does not cover all financing institutions, notably microfinance institutions. - Government will improve quality of information and extend scope to cover postal bank, the Deposit and Consignment Office, etc.. - Central corporate balance sheets office: - No current national tool centralizes corporate balance sheets. - A Central Bank project for all CEMAC countries is delayed; Congo will establish a central corporate balance sheets office to facilitate business credit. ### Key measures to develop supply of banking services (Box 11) - Consolidation and privatization of most commercial banks, backed by community institutions (COBAC and BEAC), restored public confidence and opened Congolese banks to external partners. - Attractiveness led to establishment of new banks, increasing competition; banks must adapt strategies to maintain competitiveness. - Actions to undertake: - Increase institutional efficiency via stronger internal controls, simplified procedures, and cost accounting to reduce operating costs and increase competitiveness. - Increase market share through production and analysis of credit information, development of new techniques and products, and exploration of new market segments. - Create new types of banking institutions: - A Postal Bank rehabilitating postal network to reach marginalized populations and improve the banking rate. - A Deposit and Consignment Fund for collecting funds for legal professionals, social security and public interest organizations; recycle savings for long-term employment financing projects of general interest (social housing, urban regeneration, transport infrastructure, hospital property) and support local authorities. - Finalize consolidation of the insurance sector by strengthening control activities to ensure compliance with regulatory provisions and prudential standards. ### Specialized financing, subsidies and guarantee mechanisms - Gap: Lack of specialized financing institutions for leasing, real estate, etc.; only specialized structure is the Agricultural Support Fund (FSA). - Expected expansion of financial instruments: consumer or investment loans, specialized loans, structured financing and venture capital. - State strategy under DSCERP: - (i) develop investment credits and specialized credits to expand sectoral supply of goods and services; - (ii) develop installation and equipment credit to stimulate domestic demand. - State role: Act as “catalyst” focusing on improving socio-economic environment and strengthening governance across political, legal/judicial, administrative, economic and financial segments. - Government will develop guarantee funds and credit lines in partnership with banks. - Credits at subsidized rates (especially housing): credit lines for installation/equipment or housing credits could be open to public and private sector workers; framework agreements with banks and employers expected to reduce risks; rate differential expenses would be borne by the State (example cited: Housing Support Fund in Côte d’Ivoire (FSH)). - Social funds entrusted to banks: State to fund and monitor, banks to manage to reduce risk of loss and non-payment. - Guaranteeing loans for professional groups: encourage formation of groups to pool risks, increase bargaining power and access guarantee funds and specialized credit lines. ### Promotion of foreign investment and microfinance - (i) Promotion of foreign investment: Improve attractiveness of national economy by improving the business environment and pursuing actions to ensure lasting social peace and political stability. - (ii) Promotion of microfinance: Reorganization and strengthening of microfinance sector to attract a substantial share of floating national savings to the modern banking sector, increasing financing capacity for the 2012-2016 NDP. ### Targeted funding and sectoral choices - The diversity of financing instruments raises the issue of efficiency and adaptation of financing choices for the 2012-2016 development strategy. - Financing approaches will be chosen for key areas (agriculture, livestock, fisheries, agro-processing) based on successful experiences elsewhere and Congo’s characteristics to target promising sectors. *National Development Plan CONGO DSCERP 2012-2016 — excerpt* ### 1311. Even though industrialization and the development of services are crucial for Congo’s ### _cr12242 - 1311. Even though industrialization and the development of services are crucial for Congo’s ### Agricultural sector: challenges and needs - Rural development and growth of agricultural production are crucial to raise income levels and living conditions of the rural population. - The agricultural sector faces significant financing needs that limit tapping into the country’s potential. - Funding problems impact productivity and competitiveness (difficulties in adapting to new technologies, tougher competition from imports). - Infrastructure in rural areas is often inadequate, generating high transaction costs and greater risk for producers and lenders. - Funding problems are more acute for small producers who are often poor or with limited incomes and have little access to traditional banking finance. - A specific strategy and special financial products must be developed for small producers. ### Lessons and instruments from international examples (Malaysia, Tanzania, Uganda, Mali) - Malaysia: rural development strategy priorities - Crop diversification, opening and development of new land, and increasing productivity through new agricultural techniques. - Integrated development of rural areas with “direct” and “indirect” contributions focused on: 1. Socio-economic infrastructure: construction of roads and bridges; improving schools and health facilities; supply of water and electricity. 2. Supporting production: agricultural research and wide dissemination of results; granting production credits and marketing assistance; supporting producer associations; encouraging production through tariffs and subsidies. 3. Improving production conditions: drainage and irrigation; redevelopment of existing agricultural areas; opening new lands; outreach campaigns on new techniques. 4. Promoting production diversification via targeted outreach campaigns. - Targeted funding mechanisms and institutions: - Rubber Industry Smallholders’ Development Authority (RISDA) manages replanting subsidies for small farmers defined as those who own a farm of less than 40 hectares. - Federal Land Consolidation and Rehabilitation Authority (FELCRA) regroups fragmented plots into larger units and enhances land with high-yielding crops. - Research institutes: Rubber Research Institute of Malaysia (RRIM); Palm Oil Research Institute of Malaysia (PORIM). - Support mechanisms for prices and guaranteed purchase: national marketing board guarantees purchase of farmers’ production; land reclamation programs run by Federal Land and Development Authority (FELDA). - Outcome: Within two decades of agricultural development, Malaysia achieved production and financing goals; crop diversification and product-specific strategies developed palm oil, cocoa, rubber and rice and contributed to raising and stabilizing rural incomes. - Emphasis on rural schools, health centers, community development, adult literacy, child care, nutrition, sanitation, and using traditional institutional structures (FELDA, FELCRA, RISDA) to build trust and prevent premature rural exodus. - Source cited in text: STP/DSCERP Malaysia, Social development, poverty reduction and transformation of the economy, Leong Choon Heng and Tan SiewHoey. - Storage receipt systems (Tanzania and Uganda) - Tanzania: Oridoyi Rural Cooperative Society increased seed cotton production by almost 10 fold over a four year period using a regulated storage receipt system. - Funding example: CRDB Bank Ltd lent some USD 10 million per year on the basis of a coffee collateral. - Cooperative sold raw cotton for the 2005/06 crop year directly to a cotton merchant in the United Kingdom; increased production funded mainly by retained earnings from marketing using the storage receipt system. - Uganda: Nyakatonzi Cooperative Union offered storage and ginning services enabling member cooperatives to use storage receipt system; members were willing to wait for payment after sale; participating producers recorded a gradual increase of over 40 percent of their income by selling raw cotton and cotton planting seeds rather than seed cotton. - Source cited in text: STP/DSCERP, International Trade Center, What is meant by the storage receipts system? - Mali example (cooperative lending) - Loans granted directly to organized producer communities (cooperatives and producer groups) with a management committee to monitor resource utilization and loan repayment, as with cotton producers in Mali. - Advantages: timely provision of funds, promotion of self-management, and incentives for good management (transfer of a portion of profits, transformation into microfinance, construction of community facilities). ### Proposed financing mechanisms for agriculture (policy measures and instruments) - Pre-financing of production and crop-year credits - Promote pre-financing and start-of-crop year credit mechanisms to enable producers to cover production needs with assurance of timely product purchase. - Mechanism: banks grant loans to large buyers as security for tonnage to be bought; buyers lend to producers; during the crop year a crop-year credit line is opened in the buyer’s account with periodic withdrawals based on tonnage bought. - To address possible bank resistance, the State will contribute to opening credit lines by making available some resources to the banking system. - Cooperative-based lending and incentives - Direct loans to communities of producers organized in cooperatives with management committees to monitor use and repayment. - Incentives for good management: transfer to community of a portion of profits, transformation of the cooperative into microfinance, construction of community facilities. - Structured finance and value-chain financing - Create links between “Producer - Buyer - Agro-industry” or “Producer - Buyer - Supermarket” to provide assurance across the value chain. - Agro-industrialists or supermarkets can extend financing capabilities to producers and buyers while securing their commodity supply. - Lender risk primarily limited to crop risks (insufficient quantity or required quality). - Institutional weaknesses and inadequate legal environments deter banks; Government must ensure contractual obligations are properly implemented and improve the business environment. - Public-Private Partnerships (PPPs) for agricultural infrastructure - PPPs can finance irrigation systems, warehouses in rural areas, wholesale markets, and roads/transport linking producer concentration areas. - Forms: exclusive concessions on beneficiary production areas for production-preserving infrastructure, or BOT contracts for marketing infrastructure such as wholesale markets. - Footnote example: construction and setting up of basic socio-economic infrastructure in villages in the Yamoussoukro region, Côte d’Ivoire. - Warehouse receipt financing and collateral management - Farmers store crops and receive warehouse receipts (denominated in kilos or tons) from safe warehouses. - Farmers can pledge receipts or draw cash/buy inputs from accounts, enabling delayed sales to capture better prices and obtain financing against stocks. - Government role: construct adequate storage infrastructure; management could be entrusted to producers via management contracts. ### Tourism sector: rationale and financing instruments - Benefits of tourism - Source of economic growth and job creation; promotes accumulation of foreign exchange and capital inflows. - Significant spillover effects via connected commercial activities; drives integration with the global economy. - Sector complexity and financing needs - Sustainable development of tourism depends on commitment, coordination, and cooperation between local and international players. - Funding must integrate all pillars/components (basic infrastructure, transportation, housing, related services). - Banking sector should be supported by specific instruments to implement ambitious tourism development by 2016. - Recommended financing instruments for tourism (banking-sector support) - Develop partnerships for financing basic infrastructure through BOT (Build-Operate-Transfer) or BOOT (Build-Own-Operate and Transfer) concession contracts. - Outsource tourist site management to tour operators to attract foreign direct investment. - Public sector focus: develop support activities—improve safety, business climate and investment in general; grant debt subsidies; develop promotion and marketing mechanisms. ### Case study: Tunisian tourism industry and financing strategy - Historical and capacity characteristics - Before independence in 1956, tourism was an important economic activity. - At that time, the country had 91 hotels with an accommodation capacity of 2 498 rooms, half located in Tunis. - As at the end of 2003, Tunisia had 800 hotel establishments with a total accommodation capacity of 222 000 beds, 183 000 of which were in operation. - With 5 million tourists in 2002, Tunisia was receiving 23 percent of tourists in the Mediterranean basin (France, Italy and Spain excluded). - Funding strategy and patterns - Initially strong public-sector contribution; sector now dominated by the Tunisian private sector carrying out the bulk of investments. - Share of foreign investments in the sector is roughly 7-8 percent of total investments. - Hotel investments have benefited from interest rate subsidies (later transformed into investment premium) and significant tax advantages; since 1998 benefits granted only for investments in priority development zones. - Typical financing pattern for hotel investments: 60 percent credit and 40 percent equity, and 70/30 for priority zones. - Development banks often took minority stakes in hotels they funded; bank funding based on standard investment costs per bed fixed by Tunisian National Tourism Office (ONTT), which reportedly led to overestimation of actual investments and reduced effective capital inputs. - Consequence: some hotels potentially built with debt leverage of 100 percent (or more), leaving banks to assume all investment risks. - Governance role: Ministry of Tourism sets standards for hotels in terms of development and facilities (room size and equipment). - Gap noted: incentives did not sufficiently encourage investors to entrust management to specialized operators, resulting in many hotels managed by operators without full experience or qualifications. *National Development Plan CONGO DSCERP 2012-2016* ### 1322. The quantity and modernity of economic infrastructure are key factors for the takeoff of a ### 1322. The quantity and modernity of economic infrastructure are key factors for the takeoff of a country. ### Infrastructure financing: challenges and instruments - Finding: Development of economic infrastructure is constrained by the significant amount of fundraising needed despite a relatively high share of public resources devoted to infrastructure. - Government objective: Rapid development of infrastructure is central to the 2012-I 2016 development strategy. - Two instrument types identified to fill funding gaps: - (i) Public-Private Partnership (PPP) - (ii) Structured Financing #### Public-Private Partnerships (PPP) - Use: Increasingly used to raise private funds for economic infrastructure, thereby relieving public accounts. - Forms: concession contracts, sharing of production, management contracts, BOOT or BOT contracts. - Risks identified: - Compensation for private operators raises issues of cost and accessibility (example: highway tolls) that can undermine poverty reduction if costs are not well controlled. - BOT contract experience raises questions about sustainability of investments beyond the contractual period. - Government response: Create a framework for exchanges involving all stakeholders to safeguard the interests of all. #### Structured financing - Problem: Companies in the infrastructure sector lack the right equipment, which reduces quality of work and makes it difficult for the State to pay invoices, creating a vicious circle. - Government measure: Help create centers for heavy equipment rental as part of the national development strategy. - Management structures of these devices will be excluded from the bidding process so as not to distort competition. - These structures will lease equipment on credit to successful contract bidders. - Contracting authorities will guarantee payment of rental charges by involving structures hiring the equipment in the payment of accounts. - Expected effect: Break the vicious cycle, encourage quality infrastructure construction, and develop this area of the sector. #### Tourism sector financing - Recommendation: Establish guidelines to increase and diversify sources of financing in the tourism sector to accelerate development during implementation of the PND/DSCERP. - Caution: Meaningful tourism sector development by 2016 requires State involvement. - Specific proposal: Create a Tourism Development Fund to help finance investments to build housing infrastructure. ### Financing education and health; private sector involvement - Observation: Health sectors receive significant funding from the private sector; Government intends to continue devoting a significant share of budgetary resources under the NDP while encouraging private sector support. - Government intent: Strengthen monitoring and evaluation of private interventions to avoid excesses that can affect development efforts. - Risk: Strong private sector presence in public services provision, especially health, may lead to high access costs that exclude the poor. Box 16 — Private sector involvement in basic social services (selected findings and policy implications) - Latin America example: Since the 1990s the private sector has had an enormous impact on health management systems, with multinational firms (Aetna, CIGNA, Prudential, American Insurance Group) present in health insurance and services. - Private sector investment modes: (i) repurchase of established companies selling insurance or prepaid health contracts; (ii) joint ventures; (iii) management deals for basic social coverage or public health establishments. - Resulting problems: - Limited access by vulnerable populations. - Chile: in the late nineties almost a quarter of people under private managed care preferred public establishments due to high financial contributions required. - Argentina: refusal rate by private doctors/insurers ranges between 30 and 40 percent in some hospitals; relatively healthy people accepted by managed care, the sickest directed to public sector. - Education parallels: Asking poor households to pay school fees (private or public) undermines universal primary education and Millennium Development Goals progress. Box 16 — Policy recommendations to tie private financing to universal access - Pooling of charges: - Encourage and enhance universal insurance systems. - Contributions should be indexed-linked to incomes while ensuring equal access to health care for all, without exception. - Targeting of public interventions: - Assist poor households through targeted policies rather than general subsidies. - Example: Government could distribute coupons for free access to schools. - NDP implementation stance: - Rely on private sector funding capacity to rapidly increase capabilities and quality of education and health services. - Accompany private funding with effective management of pooling of charges and targeting of public actions. - Emphasize prevention of disease over curative approaches to reduce overall health expenditure. ### Institutional framework for implementation and monitoring (CHAPTER 17) - Overarching requirement: Establish a permanent and effective information and monitoring-evaluation system to highlight impacts of poverty reduction strategies and provide timely information on living conditions. - Current gap: Poverty situation is not sufficiently understood; country lacks a fully operational national monitoring and evaluation system. - New system role: Monitoring and evaluating performance of the PAP-MTEF within DSCERP to inform sectoral development of growth, employment status, and all identified dimensions of poverty. - Operational structure: Two poles of operationalization 1. The Committee for Monitoring and Evaluating Public Programs and Policies (CSEPPP), under the administration of the Presidency of the Republic. 2. The National Poverty Reduction Committee (CNLP), presided over by the Minister of Economy, Planning, Territorial Development and Integration (MEPATI). #### Information system objectives - Monitor developments and effects of policies in priority areas and measure performance of development actions carried out through programs and projects. - Adopt a Managing for Development Results (MfDR) framework to periodically measure relevance, effectiveness, efficiency, and sustainability of program/project actions and the scope, depth and evolution of poverty. - Research focus: quantitative and qualitative data. #### Public policy cycle and DSCERP operationalization - Policy cycle steps outlined: 1. Definition of general objectives; 2. In-depth needs analysis; 3. Development of strategy; 4. Implementation of strategy; 5. Monitoring/Evaluation of strategy. - Political vision: Defined by the President in the “Future Path” concerning modernization and industrialization toward emergence. - Strategy basis: Axes of the PRSP broadly taken up in DSCERP; AIDS integrated into pillar 4 “Social Development and Inclusion”; environmental challenge made a specific axis. - DSCERP axes: (i) Governance, (ii) Growth and Diversification, (iii) Development of social and economic infrastructure, (iv) Social development and inclusion, (v) Balanced and sustainable development. - Implementation responsibility: All ministerial departments based on flagship strategies, actions, programs, budget allocations and sectoral PAP/MTEF given in volumes 1, 2 and 3 of the National Development Plan. - Collective responsibility: Development concerns Government, private sector and civil society; DSCERP is the Government’s reference document guiding actions of technical and financial partners. #### Monitoring/Evaluation bodies and mandates - Two responsible bodies: - Committee for Monitoring and Evaluating Public Programs and Policies (CSEPPP) — under Presidency; tasks include monitoring/evaluating national development policies and strategies, putting in place a system for monitoring/evaluating public policies, regularly reporting to the President and making evaluation results public, and overseeing execution of financing decisions fixed by the treasury committee. (cf. Art. 2 of Decree no. 2011-107 of 12 February 2011) - National Poverty Reduction Committee (CNLP) — permanent technical secretariat by the General Directorate of Planning and Development; presided by the Coordinator of the “Economic Governance” governmental cluster, the Minister of Economy, Planning, Territorial Development and Integration (MEPATI). (cf. Decree no. 2003-60 of 6 May 2003 amending Decree no. 2001-532 of 31 October 2001) #### Permanent Technical Secretariat of CNLP responsibilities (Decrees no. 2001-532 of 31 October 2011 and amendment no. 2003-60 of 6 May 2003) - Study and analyze reliable poverty data in the Congo on an ongoing basis. - Coordinate all human and financial resources linked to the poverty reduction strategy. - Strengthen the dynamic of poverty reduction policies. - Control and measure the impact of socio-economic policies on poverty reduction. - Monitor and evaluate policies linked to poverty reduction in the Congo within negotiations with international financial institutions. - Design strategies enabling the Congo to derive maximum benefit for long term poverty reduction. - Necessity: Put in place and ensure functioning of decentralized structures for poverty reduction at the departmental level to monitor public intervention. ### Monitoring-evaluation specific objectives of the National Development Plan - Monitoring-evaluation is a means to improve public policy effectiveness; useful only if lessons learned and recommendations inform future public policies. - Specific objectives: - Noting the progress and delays compared with activities and objectives defined beforehand. - Ensuring allocation of resources and proper use of allocated resources. - Measuring results obtained with the help of chosen indicators. - Identifying and locating factors of success and bottlenecks. - Providing a critical and constructive analysis on strategy design, implementation and responsibilities of actors. - Putting forward recommendations for continuation of implementation of the strategy and for design of future public policies. *National Development Plan CONGO DSCERP 2012-2016 (excerpts).* ### 1349. In order to pursue the objectives listed above, the following principles will guide the ### _cr12242 - 1349. In order to pursue the objectives listed above, the following principles will guide the ### Principles guiding the monitoring and evaluation process - The monitoring and evaluation mechanism must be based on existing structures. It is not a question of creating new structures, but of making existing ones and those that were slow in becoming operational during the first-generation implementation period of the DSRP, operational and effective. The challenges encountered in the monitoring and evaluation of the DSRP are also outlined in the DSRP completion report. Characterized by pragmatism, the new monitoring and evaluation mechanism must be flexible, functional and must be adaptable to the challenges encountered on the ground. - Emphasis must moreover be placed on the development of available statistics to favor a rigorous quantitative approach based on reliable and comparable data. The quality of the monitoring and evaluation will largely depend on the dynamism of the new National Statistical Institute (INS). Indeed, statistics are essential for preparing an objective and exhaustive report, which are beneath criticism, to formulate policies that take into account this report and to measure the progress achieved. - Beyond this quantitative approach required for any evaluation of public policy, it is also advisable to develop a qualitative and analytical approach based on the evolution of the living conditions of the populations, the curbs and the obstacles to the sustainable improvement of their living conditions, and the perceptible and possible limitations of the growth, employment and poverty reduction strategy. - The SCERP monitoring and evaluation mechanism will also be marked by transparency and communication of the overall progress of the strategy. A cross-cutting objective of monitoring/evaluation will be to give an accurate an unbiased account of these different elements to all the ministerial departments, parliamentarians, citizens, civil society organizations, as well as to the technical and financial partners (TFP). - A coordination effort must be carried out under the leadership of the presidency of the Republic and of the Ministry of Economy, Planning, Territorial Development and Integration tasked with first and second level monitoring and evaluation, in order to ensure that the actions carried out on the ground by all the actors are effectively structured around the guidelines advocated in the DSCERP. ### Breakdown of the monitoring-evaluation phases - The monitoring and evaluation is broken down schematically into several phases: continuous monitoring, mid-term evaluation and a final evaluation. - While the phases follow the objectives previously mentioned in a complementary manner, they answer to a specific logic: - the continuous monitoring aims to ensure the smooth progress of the actions and observance of the timetable according to the technical, financial and human constraints under the responsibility of MEPATI; - the objective of the mid-term evaluation is to note the main progress and to recommend, if needs be, any modifications aimed at refining and modifying the axes/programs of the strategy in accordance with the constraints that arose and the bottlenecks noted; - the aim of the final evaluation is to provide an analysis and a general assessment on the achievement or the non-achievement of the expected outcomes. They may, in particular, serve as a starting point and a reference point for developing a new strategy. This falls under the full responsibility of the presidency of the Republic. - For each phase the following elements must be determined: the object of the analysis, the form (method of distribution of the analysis, frequency, confidentiality), the chain of responsibility (actors involved, level of responsibility, relations between the actors). ### Continuous monitoring of actions — Departmental level - The Planning and Development departmental offices will put forward a list of the public bodies (decentralized departments in the fields of health, teaching of TP28, etc.), civil society and of the private sector together with their representatives, that must constitute the Departmental Poverty Reduction Committee (CDLP). - Quarterly meetings of the Departmental Poverty Reduction Committee will be organized in each department. These meetings, chaired by the Prefect, will be hosted by the Planning and Development departmental offices, supported if necessary, by the staff of the DGPD. The technical and financial partners involved in the departmental projects may also be invited. - At the conclusion of these quarterly meetings, a report drafted by the Planning and Development departmental offices, co-signed by the Prefect and the representative(s) of local civil society and of the private sector, shall be made public. This report must accurately echo the content of the discussions and the information disclosed. The following indicative outline may serve as a common base for the development of the report: - I. Actions carried out and progress noted per axis - II. Constraints and bottlenecks recorded - III. Existing measures (a), utilized (b) to be created (c) to remedy the bottlenecks. - The reports will be submitted to the Chairman of the National Poverty Reduction Committee (Minister of State, Coordinator of the Economic Cluster, MEPATI), and thereafter analyzed by its technical secretariat (Directorate General of Planning and Development – MEPATI). - On the basis of the departmental reports, a summary report will then be prepared by the Permanent Technical Secretariat of the CNLP, signed by the president of the National Poverty Reduction Committee and will then be made public. It may contain recommendations aimed at the governmental clusters and their respective ministerial departments, in order to facilitate the implementation of the strategy at national and departmental levels. ### Continuous monitoring of actions — Central level: overall system - The Committee for Monitoring and Evaluating Public Policies and Programs (CSEPPP) attached to the General Secretariat of the Presidency, will be tasked with supervising and managing the overall process of monitoring-evaluation and the implementation of the SCERP. - The set of monitoring activities will be orchestrated by the General Directorate of Planning and Development as technical secretariat of the National Poverty Reduction Committee. ### Continuous monitoring of actions — Level of governmental clusters - DESCRP monitoring must be the object of a biannual meeting under the coordination of the political representatives of the thematic discussion and drafting groups. Pillar assignments: - Pillar 1: “Governance”, will be led by the Ministry of Justice and Human Rights; - Pillar 2 “Growth and Diversification” will be led by the Ministry of Industrial Development and Promotion of the Private Sector; - Pillar 3: “Infrastructure” will be led by the Ministry of Transport, Civil Aviation and Merchant Marine; - Pillar 4 : “Social Development and Inclusion” will be led by the Ministry of Labor and Social Security; - Pillar 5: “Balanced and Sustainable Development” will be led by the Ministry of Sustainable Development, Forest Economy and the Environment. - The permanent technical secretariat of the National Poverty Reduction Committee will take part in these meetings. The CSEPPP, the presidential body, may participate in these meetings. - These meetings will be the opportunity to carry out an inventory of the actions implemented and provided for under the strategy. Each ministerial department will have prepared feedback beforehand on the qualitative and quantitative information of these decentralized structures. - A summary of the conclusions of these biannual meetings will be produced by the permanent technical secretariat of the National Poverty Reduction Committee and shall be made public. This summary may take the following form: - Actions carried out per program - Problems encountered - Existing measures (a), utilized (b) to be created (c) to remedy the bottlenecks. - In view of the development of the thematic approach, the National Poverty Reduction Committee must mutate into the permanent technical secretariat for growth, employment and poverty reduction (a new decree reorganizing and expanding the prerogatives of the CNLP will be issued in this respect). It must, among others, ensure the specific monitoring of the implementation of the policy of diversification through the clusters. ### Continuous monitoring of actions — Level of technical and financial partners (TFP) - Biannual meetings with all the technical and financial partners will be held to present the progress of the operations, the initiatives under way and those to come. These meetings will be co-chaired by the Minister of State and Economy, Planning, Territorial Development and Integration, the President of the National Poverty Reduction Committee (reformed) and the United Nations resident representative. The secretaryship will be provided by the DGPD as part of the responsibilities of the Permanent Technical Secretariat of the National Poverty Reduction Committee. - The objectives of the meetings with the TFP will be to: - carry out a review of the actions carried out by each partner; - take advantage of the sectoral expertise of the technical and financial partners; - ensure the link-up of the interventions of the technical and financial partners with the sectoral orientations of the DSCERP; - avoid possible duplication in the interventions of the sponsors; - take advantage of the geographic and thematic synergy between the interventions of the sponsors and the actions carried out at the same time by the government; - Identify the existing bottlenecks and putting forward concrete solutions to improve the framework and the quality of the interventions of the sponsors and of Government. - These meetings will constitute a permanent consultation framework (Government-TFP) for the establishment of a management platform for official development assistance. ### Physical control of public investments - The General Directorate of Planning and Development (MEPATI) will prepare quarterly inspection reports on the public investment projects. These reports produced on the basis of field missions in all the departments, will enable the financial and physical monitoring of the projects. The decentralized administrative structures will also participate in these technical control missions. - An effort will be developed to improve the qualitative content of the observations and information on the performance indicators that are linked to the projects. - These quarterly reports will also be the object of an annual summary report that will be made public (to parliament, civil society organizations); the TFP may receive certified copies at their request. ### Statistical monitoring (role and tasks of the National Statistical Institute, INS) - As stipulated in the Priority Action Program of the Ministry of Economy, Planning and Development, the National Statistical Institute (INS) is tasked with, among others: - Guaranteeing the definitions and methods of calculation of the indicators; - Centralizing the following indicators: macro, meso- and micro-economic, social indicators of good governance, environmental, etc.; and annual); - Collecting data at the departmental level; - Conducting panel surveys; - Processing and cleaning up the data; - Organizing the sessions; - Publishing periodic indexes (quarterly, half-yearly training in the field of statistics). - It must have the following resources: - raw data collected from surveys conducted on the ground; - statistical data provided by the central government office for studies and planning of the ministries and departmental divisions; - the data in partnership with the University and the TFP. - The following actions will thus be implemented by the INS within the framework of the NDP during the period 2012-2016: - Execution of the national statistics development strategy (SNDS) 2012-2016; - Detailed exploitation of the data obtained from the national household poverty assessment survey (ECOM-2); - Continuing with conducting the second demographic and health survey of the Congo (EDS 2); - Country statistics development program and labor statistics; - Exploiting the results of the RGPH and preparation of the next RGPH; - National survey on employment and the informal sector; - Conducting periodic sector-based surveys; - Conducting the ECOM-3 survey; - Conducting the EDSC 3 survey; - 2017 RGPH; - etc. - The information gathered at the close of these surveys will assist in understanding the evolution of the Congolese socio-economic indicators. The National Statistical Institute will be tasked with updating the indicator matrix from the results of the DSCERP. ### Mid-term evaluation - Mid-terms evaluations are conducted in order to prepare the mid-term reports of the actions carried out, the results achieved and the recommendations for the remaining period. These evaluations must commence prior to the start of the second semester of 2014. The results will then be presented at the end of the third quarter of 2014 so that the recommendations may be formulated and taken into account in the redefinition of the programs and actions to be implemented for subsequent years. - Each axis of the strategy will be subjected to a specific evaluation conducted by an independent body, with the involvement of the decentralized departmental structures, the civil society organizations and the development partners participating in the programs. The terms of reference of these evaluations will be compiled by the Permanent Technical Secretariat of the National Poverty Reduction Committee, together with the sectoral ministries and will then be validated by the Chairman of the National Poverty Reduction Committee and the CSEPP. These evaluations must address the following points: - the actual allocation of State expenditure in comparison with the forecasted allocation; - the actual use of these funds; - the activities carried out and the progress noted; - the problems, curbs, bottlenecks noted and the existing means or those to be worked out to resolve them; - the recommendations for the forthcoming period. - These evaluations will be the object of a government assessment note that will also be made public. This note will specify the position of the Government and the manner in which it intends to implement the recommendations and its action plan for the next period. - In order to carry out these evaluation missions and in addition to facilitating the field mission, the following documents will be made available to the teams: - PRSP1 completion report; - National Development Plan volumes (1, 2, 3 and 4); - Basic statistical data (ECOM, EDS, etc.) as well as that concerning the implementation of the SCERP; - Quarterly reports of the Departmental Poverty Reduction Committees for the Fight against Poverty, Executive summary and recommendations of the STP-SCERP; - Quarterly and annual reports on the control of the physical and financial execution of public investments; - An account of the conclusions of the ministerial meetings; - An account of the conclusions of the State-TFP meetings. - Etc. ### Final evaluation - A final evaluation per axis will be carried out. It will focus on a final assessment of the components of the mid-term evaluations with recommendations to strive towards the guidelines of the prospective “Congo Vision 2025” document. - Cross-cutting evaluations will be carried out which will focus on: - the involvement of the private sector and the voluntary sector in the implementation of the SCERP; - the contribution of sponsors; - the institutional mechanism for the implementation of the SCERP; - the effectiveness of the monitoring and evaluation mechanism of the SCERP. - The terms of reference of these evaluations will be developed by the STP of the CNLP, in conjunction with the Sectoral Ministries and validated by the CNLP and the CSEPP. These evaluations will commence in 2017. Once completed, they will be made public and will serve as a support to the preparation of the new development strategy for the forthcoming period. - These evaluations will be the object of a government assessment note that will also be made public. This note will specify the position of the Government on the contents of the evaluation reports and the manner in which it intends to adjust its sectoral policies for the next period. ### Specific responsibilities of different actors - The Committee for Monitoring and Evaluating Policies and Programs (CSEPP) set up by the Presidency of the Republic through Decree 2011-107 of 12 February 2011 concerning the creation, responsibilities and organization of the aforementioned Committee, is entrusted in particular with: - Monitoring and evaluating the implementation of the national development policies and strategies; - Putting in place a system for monitoring and evaluating public policies; - Undertaking studies and surveys aimed at assessing the impact of the public policies implemented; - Reporting regularly to the President of the Republic and making public the results of the evaluations of the public policies implemented; - Overseeing the execution of the financing decisions adopted by the Committee and the Treasury (cf. Article 2). - Its organization and functioning are described in the Decree mentioned above. - The Permanent Technical Secretariat of the National Poverty Reduction Committee, which is provided by the General Directorate of Planning and Development (MEPATI), is responsible, on behalf of the said Committee, for: - Studying and analyzing the reliable data on poverty in the Congo on an ongoing basis; - Coordinating all the human and financial resources linked to the poverty reduction strategy; - Strengthening the dynamic of the poverty reduction policies; - Overseeing the implementation of the projects linked to poverty reduction; - Controlling and assessing the impact of the socio-economic policies on poverty reduction; - Monitoring and evaluating the policies linked to poverty reduction in the Congo as part of the negotiations with the international financial institutions; - Designing strategies that may enable the Congo to derive maximum benefit in order to achieve long term poverty reduction (cf. Article 3 of Decree no. 2001-532 of 31 October 2001). *Source: 2012-2016 NDP CONGO VOLUME 4 : Institutional Framework for monitoring and evaluating the 2012-2016 PAP-MTEF (excerpts pages 393–399).* ### 1381. In this regard, it will ensure the proper organization and convening, by the Planning ### _cr12242 - 1381. In this regard, it will ensure the proper organization and convening, by the Planning ### Roles and responsibilities for monitoring and evaluation - Secretariat of the National Poverty Reduction Committee: - Reports to the Minister of Planning, Territorial Development and Economic Integration, who is the Chairman (Decree 2003-60 of 6 May 2003, Article 2 (new)). - Provides the CSEPPP with “material” as part of its responsibilities. - General Directorate of Planning and Development (DGPD): - Permanent Technical Secretariat of the National Poverty Reduction Committee. - Ensures the Programming and Control of Public Investments, in line with the DSCERP, the PAP and the sectoral MTEF defined beforehand. - Together with the Centre for Investment Project Studies and Evaluation (CEPI), supports departmental offices in identifying public investment projects at the local level. - Ministries responsible for the Strategic Axes: - Facilitate implementation of the DSCERP and intervention of external actors. - Organize bi-annual meetings to assess progress of activities under their portfolios within the scope of DSCERP implementation. - Make public a communiqué on the conclusions of these bi-annual meetings. - Compile preliminary terms of reference for mid-term and final evaluations and submit to the Directorate General of Planning and Development. - Compile draft government assessment notes of mid-term and final evaluation reports for submission to the National Poverty Reduction Committee and to the CSEPPP. - Minister of Planning (as Chairman of the National Poverty Reduction Committee): - Responsible for convening a bi-annual consultation meeting with the TFP. - Sectoral Ministries: - Responsible for implementation of the Growth, Employment and Poverty Reduction Strategy in cooperation with decentralized structures. - Prepare their budget, budget allocation within their structure and within their MTEF, and implement priority activities. - Prepare an Annual Work Plan and Budget (AWPB) taken from their respective PAP-MTEF for the period of implementation. - Prefects or appointed representatives: - Chair meetings of the Departmental Committees for Poverty Reduction. - Co-sign minutes of the meeting together with the civil society representative. - Planning and Development departmental offices: - Define a progressive list of departmental poverty reduction committees, coordinate departmental meetings, compile reports, and contribute expertise in engineering and local development. - Decentralized ministerial offices: - Actively participate in Departmental Poverty Reduction Committee meetings. - Propose avenues for sustainable local solutions. - Make available full information on implementation of activities at the level of their central administration. - National Statistical Institute (INS): - Organize surveys and carry out data processing, analysis and publication of results. - Provide statistical monitoring of DSCERP indicators within its competence. - Assist and participate in CNLP and TFP meetings. - Tasked with updating the matrix of indicators of the results of the DSCERP. - Technical and Financial Partners (TFP): - Implement development and support programs and projects in accordance with DSCERP strategies. - May participate in monitoring-evaluation departmental meetings and in the evaluation process. - Invited to actively participate in the State-PTF meetings. - Civil Society Organization (CSO) representatives: - Participate constructively in Departmental Poverty Reduction Committee and State-TFP meetings. - Bring field expertise and knowledge close to vulnerable populations. ### Deliverables and methods of distribution - Deliverables of the monitoring-evaluation phase for the 2012-2016 period of the DSCERP: - Quarterly reports of the 12 Departmental Poverty Reduction Committees; - Quarterly summaries compiled by the STP-CNLP; - Reports on the conclusions of the bi-annual meetings of the Ministries heading up the axes of the DSCREP; - Report on the conclusions of the quarterly “State-TFP” meetings. - Quarterly (4) and annual (1) report on the control of the financial and physical execution of public investments; - Mid-term evaluation reports; - Final evaluation report. - Distribution resources (insofar as is possible): - Hard copy - The press - Mailing List - Website ### Indicators and monitoring framework - Indicator matrix: "Indicator matrix for monitoring the DSCERP (cf. Annex 1)." - Stated overall objective for monitoring: - “to have on the one part, the possibility of identifying and assessing the impact of the actions, interventions, decisions or measures concerning the macro-economic sectoral policies regarding development in general and, on the other hand, to verify and evaluate the success of the Programs and Projects and the impact of their intervention on the living conditions of the people”. - Monitoring focus areas: - the policies and the political, economic and social development measures; - the implementation of the Priority Development Programs and Projects. - Annex 1: MATRIX OF THE MAIN INDICATORS OF THE OUTCOMES OF THE STRATEGIC DOCUMENT FOR GROWTH, EMPLOYMENT AND POVERTY REDUCTION, including specific objectives, indicators and sources across policy objectives such as: - Improving per capita wealth: "GDP per capital in $ - purchasing power parity" (World Bank). - Improving the level of human development: "Human Development Index" (United Nations Development Program). - Means of achieving policy objective "MODERNIZATION": indicators like "Number of households with fixed Internet access" (National Statistical Institute - ECOM – Ministry of Post, Telecommunications and New Communication Technologies), "Change in life expectancy at birth" (World Health Organization – World Bank data), "Tertiary enrolment rates (total, girls, boys)" (National Statistical Institute – Ministry of Higher Education and Research). - AXIS I - GOVERNANCE: indicators such as "Allocation provided for in the Central MTEF", "Allocation included in the initial budget", "Final budgetary execution" (sources include National Development Program - Volume 3 Macro-economic and budgetary framework - Macro-economic and Budgetary Framework Committee; Budget bill – Ministry of Finance; Annual budgetary execution report – Ministry of Finance). - AXIS 2 – ECONOMIC GROWTH and DIVERSIFICATION: indicators include "Real GDP growth", "Non-oil GDP growth", "GDP growth of the secondary sector", "Number of jobs created" (General Directorate of Economy -MEPATI). - AXIS 3 – INFRASTRUCTURE: indicators include "Number of kilometers of tarred roads", "Number of operational air terminals", "Energy access rate", "Drinking water access rate" (Ministry of Transport, Civil Aviation and Merchant Marine; Ministry of Energy and Hydraulics). - AXIS 4 – HUMAN RESOURCES: indicators such as "Primary enrollment ratio", "Primary completion rate", "Maternal mortality rate per 100 000 live births", "Infant and child mortality rate", "HIV/AIDS prevalence rate" (Ministry of Primary and Secondary Education; Ministry of Health – National Statistical Institute). - AXIS 5 – BALANCED AND SUSTAINABLE DEVELOPMENT: indicators include "Gap between the poverty rate in urban and rural areas", "Percentage of public revenue allocated to the local authorities", "Evolution of net CO² emissions", "Percentage of developed forests" (National Statistical Institute; Ministry of Finance, Budget and Public Portfolio – Ministry of the Interior and Decentralization; Ministry of Sustainable Development, Forest Economy and the Environment). - Outcome indicators for each cluster (examples): - Agriculture: "Value added of the cluster (in volume, in annual growth and % of GDP)"; "Change in the number of foreign and national SMEs in the cluster"; "Change in the number of formal jobs in the sector". - Forestry: "Conversion rates for the local production of wood". - Public Works & Construction: "Number of social housing projects". - Mines: "Number of mining sites started"; "Percentage of production converted on site". - Oil: "Change in oil revenues / Share of the State in oil production". - Tourism: "Change in the number of tourists / Share of tourist visits in the overall number of visits". - Financial services: "Access rate to financial services". ### Capacity building, sustainability and system advantages - Rationale and advantages: - "The implementation of an information system for monitoring and evaluating the SCERP presents undeniable advantages in a country like the Congo, where numerous constraints are interfering with the functioning of the State apparatus and the regular production of national statistics." - "This new system brings elements of response to the concerns that have arisen from the interventions of the authorities, of civil society, of the private sector and of the TFP, in the different domains targeted by the SCERP, with a view to reducing poverty." - Key requirements for effectiveness and sustainability: - Enhanced policy support for structures at all levels to honor terms and assume responsibilities. - Sufficient human, material and financial resources. - Permanent technical support from development partners in the Congo, with monitoring and evaluation as a priority area. - Training of human resources as "one of the pillars of the effectiveness and sustainability of the system" to harmonize tools for collection, processing, analysis and distribution of poverty information. - Operation on the basis of permanent concertation and dialogue with all partners to ensure information availability for appropriate decision-making. *Source: 2012-2016 NDP CONGO VOLUME 4 : Institutional Framework for monitoring and evaluating the 2012-2016 PAP-MTEF.* ### Annex 2 : EXPLA ### Annex 2 : EXPLANATORY DIAGRAM OF THE MONITORING/EVALUATION MECHANISM ### Institutional roles and main functions - National Committee for Monitoring and Evaluating Public Programs (General Secretariat of the Presidency) - Main function: Supervising the overall process, providing guidelines and reporting to the Presidency - Permanent Technical Secretariat of the Poverty Reduction Committee (Directorate General of Planning and Development – Ministry of Economy, Planning, Territorial Development and Integration) - Main function: Supporting the CSEPP and the CNLP in their respective responsibilities, executing the directives of the CSEPP and the CNLP and ensuring that the monitoring/evaluation operations are carried out efficiently ### Continuous monitoring of actions — five components (2012–2016) - I. At the departmental level - Body responsible: Departmental Poverty Reduction Committee - Associated structures: Prefecture, Planning and Development departmental offices, civil society organizations - Frequency of meetings: Quarterly - Deliverables: - Meeting report, co-signed by the Prefect and the civil society representative - Summary prepared by the PTS of the CNLP to the CNSEE and made public - II. At the national level per axis - Body responsible: Ministries appointed to lead the monitoring of the DSCERP - Associated structures: Ministers involved in the different axes of the Permanent Technical Secretariat of the CNLP - Frequency of meetings: Biannual - Deliverables: - Summary of the conclusions of the meetings made public - III. State‑TFP dialogue - Body responsible: CNLP - Associated structures: Technical and Financial Partners, CSO representatives, Permanent Secretariat of the CNLP, CNSEPP - Frequency of meetings: Biannual - Deliverables: - Summary of the conclusions of the meetings made public - IV. Control of the execution of public investments - Body responsible: Directorate General of Planning and Development - Associated structures: Ministerial Departments, Decentralized structures - Frequency of missions: Quarterly - Deliverables: - Procedure manual - Quarterly reports - Annual summary - V. Statistical monitoring - Body responsible: National Statistical Institute - Associated structures: Ministerial Departments, Decentralized structures, Technical and Financial Partners - Deliverables: - Updating the indicator matrix - Publication of the different surveys (ECOM, ENDS, etc.) ### Departmental and national monitoring process (workflow highlights) - Departmental outputs: - CDLP reports for each department (examples listed in source: Brazzaville, Kouilou, Pointe-Noire, Cuvette Centrale, Sangha, Plateaux, Likouala, Lékoumou, Cuvette Ouest, Niari, Pool, Bouenza) - Compilation: Réalisation d’une synthèse des comptes rendus départementaux par le Secrétariat Technique Permanent du CNLP - Distribution and publication flows include the Presidency, congressmen, ministries, non-state actors, TFP, press - National-level consolidation: - Ministerial Group Meetings per axis (Axis 1 through Axis 5) - Preparation of a biannual summary of conclusions of each ministerial group - Summary of the departmental meetings prepared by the Permanent Technical Secretariat of the CNLP - Publication of results of Public Investment Control and publication of surveys; updating of the Outcome Indicator Matrix ### Mid-term evaluations - Object of the mid-term evaluations for each pillar of the DSCERP: - actual allocation of State expenditure in comparison with the forecasted allocation; - actual use of these funds; - activities carried out and progress noted; - problems, curbs, bottlenecks noted and existing means or those to be worked out to resolve them; - recommendations for the forthcoming period. - Structures responsible for developing the ToR: Ministry responsible for the pillars, STP of the CNLP, CSEPP. - Deliverables made public: 5 evaluations + government assessment notes. - Body responsible for the mid-term evaluations: Independent bodies recruited on the basis of a call for tenders. - Period: Mid-2014 ### Final evaluations - Object of the final evaluations for each pillar of the DSCERP: - the actual allocation of State expenditure in comparison with the forecasted allocation; - the actual use of these funds; - the activities carried out and progress noted; - the problems, curbs, bottlenecks noted and existing means or those to be worked out to resolve them; - recommendations for the forthcoming period. - Cross-cutting evaluation topics: - the involvement of the private sector and the voluntary sector in the implementation of the SCERP; - the contribution of sponsors; - the institutional mechanism for the implementation of the SCERP; - the effectiveness of the monitoring and evaluation mechanism of the SCERP. - Structures responsible for developing the ToR: Ministry responsible for the pillars, STP of the CNLP, CSEPP. - Deliverables: 6 evaluation reports + government assessment notes. - Body responsible for the final evaluations: Independent bodies recruited on the basis of a call for tenders. - Period: 2017 *Source: 2012-2016 NDP CONGO VOLUME 4 : Institutional Framework for monitoring and evaluating the 2012-2016 PAP-MTEF — Annex 2 : EXPLA* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12242.pdf_