The Courier

Public roadworks, financed by the Commission in Kinshasa, and outside, are vital to guarantee the capital’s food supply.

© EU Delegation, Kinshasa

There are certain preconditions to taking up the challenges of the five areas of roads, health, education, energy and water, according to Senator André-Philippe Futa, President of the ‘Alliance pour la Majorité Présidentielle’ (Alliance for the Presidential Majority – AMP) and a former Finance Minister. Initially, consolidation of the micro-economic framework for good governance and a constitutional state is necessary to reassure individual citizens and the business community. This was forcefully put by the managing director of the ‘Fédération des Entreprises Congolaises’ (Federation of Congolese Businesses – FEC), Henri Yav Mulang, who also advocates dealing with the internal debt to the private sector and the urgent rehabilitation of the communication network.

New Order

During the transition, it was not possible to carry out these much needed initiatives with the best of efficiency due to the mixed make up of the new coalition government, says André-Philippe Futa of the AMP. Elections, which brought in a majority government, have created a new order, “but we should not believe that all problems will be solved by investing a billion dollars in roads”, Futa warned, adding: “It will be necessary to attack the inefficiencies of the system, the ‘anti-values’ which are still far too widespread in society and that will take time”. The former Finance Minister says it is possible to make more use of tax revenue on top of financial support from donors who should be dissuaded from imposing new deadlines. Currently, work underway includes performance contracts signed between the State and the Tax Directorate-General (DIG) and the Customs and Excise Office (OFIDA) which raises half of State revenue. This will not solve the problem of massive corruption, gaining momentum during the transition period due to corrupt officials who often went unpunished. Futa also suggested that it would be possible to increase the number of BOT type contracts (Build, Operate and Transfer), with foreign investors.

Tax system revision

Sesanga Hipungu, MP, the former Planning Minister – and now spokesman of the opposition leader and President of the Movement for Liberation of Congo (MLC), Jean-Pierre Bemba – thinks that the government should reach beyond the ‘minimal perspectives’ of the Strategy Document for Reduction of Poverty (SDRP) for the reconstruction of the country. From 2007, he says, tax revenue could be doubled by getting to grips with customs fraud, outsourcing the civil service to a private entity, systematically strengthening controls on goods on loading and overcoming the endemic haggling between customs officers and businesses. Equally, he believes that taxation in the mining and telecommunications sectors is too low, and tax should be applied to real estate.

It is also imperative that the judicial review – financed by the World Bank – of the so called ‘léonin’ (one-sided) contracts signed by the State between the two wars, should be used by the Parliament to “restore the balance”, without “destabilising businesses”.

As for the Economic Partnership Agreement (EPA) with the EU, which is currently being negotiated by Congo in a grouping that also includes Sao Tome and EMCCA (the Economic and Monetary Community of Central Africa), the head of the AMP is not overly concerned. In a country where taxes presently raise less than 10% of GDP, he predicts that there will be no loss of revenue resulting from the dismantling of current tariffs. However, there is one condition: Congo must have a sound statistical basis and proper national accounting, and this will take time. He also says it will be necessary to identify the branches of the economy that will not be able to stand excessively high Value Added Tax (VAT).

According to Sesanga Hipungu, the commitment to move to an EPA with the EU has been given and there is no going back. However, he doubts Congo is ready for the 2008 deadline, the European Commission’s schedule for introducing an EPA.

An opening of markets is not only about disadvantages. It is true that the country’s economic and industrial fabric – in tatters today – will need to be revitalised to be competitive, but competition with the outside world will drive forward the necessary reform in certain sectors, provided that proper supportive measures go hand-in-hand with the Agreement’s implementation.

Henri Yav emphasises the urgency of bringing the uncompetitive industrial fabric up to the necessary standard, as well as addressing the issue that the Central Africa Negotiating Group is currently involved in several parallel regional integration processes.

Pandora’s Box

On the political front, André-Philippe Futa regrets that the word ‘Congolitis’ was again used by politicians to accuse their adversaries of not being ‘real Congolese’, hence challenging their legitimacy. Looking to the future, the President of the AMP says that the concept of dual nationality, if accepted, would enable the Congolese Diaspora to integrate better into their host country and augment their ability to send funds back to their country.

Like President Kabila, André-Philippe Futa says that what’s needed is a “change in mentalities” to promote sustained development. He acknowledges – and is critical of the fact – that corrupt practices occurred in a number of areas during the elections but also points out that it was the first democratic experiment in the Democratic Republic of Congo.

Still referring to ‘Congolitis’ – one of the now shelved MLC campaign themes – Sesanga Hipungu says that the country should not seek to open a ‘Pandora’s Box’. “If we were to create a commission of enquiry to track down those involved in nationality fraud, the political class would experience a real tsunami”, he warns. He is concerned about ongoing corruption, which in his opinion tarnished the election of certain governors at the beginning of February (which led to the disturbances in Lower Congo – resulting in 137 deaths, according to the UN). Furthermore, there is also a risk of opening up a crisis of legitimacy of the Congolese institutions, says Sesanga Hipungu, who feels that the majority is not allowing the opposition sufficient room to manoeuvre.