The World Bank

Document of The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 4951-ZR Public Disclosure Authorized

ZAIRE

REGIONAL DEVELOPMENTPROBLEMS - THE CASE OF KIVU Public Disclosure Authorized May 31, 1984 Public Disclosure Authorized

Regional Programs Department II Eastern Africa Regional Office

This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEQUIVALENTS AND UNITS

Currency Unit: Zaire (Z) Z 1.00 = 100 makuta

Exchange Rates:l/

June 19, 1981-September 12, 1983 Z 1.00 = SDR 0.1575 US$ 1.00 = Z 5.754 Z 1.00 = US$ 0.17

September 12, 1983-February 24, 1984 Z 1.00 = SDR 0.03542 US$ 1.00 = Z 26.93 (29.93) Z 1.00 = US$ 0.04 (0.03)

February 24, 1984 Z 1.00 = SDR 0.0288 US$ 1.00 = Z 33.0 Z 1.00 = US$ 0.03

1/ From March 12, 1976 to November 1, 1978, the zaire was pegged to the SDR at a rate of Z 1.00 = SDR 1.00. The zaire underwent a 73.8 percent devaluation vis-a-vis the SDR in 7 stages between November 1, 1978 and June 19, 1981. On September 12, 1983, Zaire introduced a transitional dual exchange rate regime, consisting of an official rate and a free market rate, shown separately above. The two rates were unified on February 24, 1984; henceforth, the rate will float on a weekly basis.

NOTE: All conversions to US dollars in this memorandum have been made at the average exchange rate prevailing during the period covered. FOR OFF-ICIAL USE ONLY

ABSTRACT

TITLE ZAIRE: REGIONALDEVELOPMENT PROBLEMS - THE CASE OF KIVU

COUNTRY: ZAIRE

REGION : EASTERNAFRICA

SECTOR : SPECIAL ECONOMICREPORT

REPORT TYPE CLASSIF VfA/IY! LANGUAGES

ZAI SER Confidential 05/84 English and French

PUBDATE:

ABSTRACT: This pilot study of Kivu was undertaken primarily to increase the Bank's understanding of the regional aspects of development in Zaire. The report describes the distinguishing features of the Kivu Region, examines the past performance of its economy with emphasis on agriculture, industry, transport, and education, and discusses the implications for Zaire and the donors which emerge from the analysis. The report argues that while external factors, such as the disruption caused by the political upheaval of the 1960s and the sharp increase in petroleum prices, have adversely affected economic development in the region, domestic policy deficiencies and administrative constraints have also been important factors.

The analysis suggests that Kivu's prospects depend on: sustained appropriate macroeconomic management; implementation of institutional measures at both the national and regional levels; execution of priority investments for regional development; more systematic involvement of private sector enterprises, including non-governmental organizations; and active support from the external aid donors through coordinat.ing bodies which are already in place.

This documenthas a resticted distributionand may be used by recipientsonly in the performanceof their officialduties. Is contents may not otherwisebe disciosedwithout World Bank authorization. - ii -

PREFACE

This report is based on the findings of a mission that visited Kinshasa and Kivu in June/July 1983. The mission was composed of Monique Garrity (mission chief), Adriana De Leva (assistant economist)and Hendrick Koppen (consultant). The mission worked closely with the Division of Regional Planning of the Planning Ministry in Kinshasa and the Regional Planning Unit of RCivu in Bukavu. The report was discussed with the Zairian Government in April 1984.

The analysis that follows does not take fully into account the exchange rate adjustment and the associated measures of September 1983. - iii -

LIST OF ACRONYMS

ACOGENOKI : AssociationCooperative des Groupements d'Eleveurs du Nord-Kivu ANEZA : Association National des Entreprises Zairoises BAD : Banque Africaine de Developpement BCZ : Banque Commercialedu Zaire BDEGL : Banque de D4veloppement des Etats des Grands Lacs BIA : Broyage BIA BRALIM : Brasserie Malterie et Limonaderie de Kinshasa CACAOZA : Cacaoyeres du Zaire CADEZA : Caisse GSnerale d'Epargne du Zaire CAFEKIT : Cie de Vente de Cafd au Kivu CAPACO : Cafe, Papaine et Commerce CAPSA : Centre Agricole pour la Production de Semences AmelLor4es CC? : Compagnie de Commerce et de Plantations CCCE : Caisse Centrale de Cooperation Economique CECOP.AE : Centre de Commercialisation des Produits Agricoles du Nord-Est CEDERU : Centre de D4veloppement Rural CEETA : Centre des Etudes pour la Technologie Appropri4e CEiLZA : Cultures et Elevages du Zaire CEPGL : Communaute Economique des Pays des Grands Lacs CERUKI : Centre de Recherches Universitairedu Kivu CIDA : Canadian International Development Agency CU*MYT Centre International de Majoramento de Maize y Trigo CIINAT CimenterieNational CI? : Centre Internationalde la Pomme de Terre CIZA Societe des Ciments du Zaire CODAIK Compagnie de D4veloppement Agro-Pastoral Integrg de Kwango-Kwilu COGEMIN : Compagnie G6n6rale Miniare COMINCEN : Combinat Industriel de Gemena COMIJELE : Compagnie Commerciale et MiniAre de L'U4le COOCEC : Cooperative Centrale d'Epargne et du Credit COOPEC : Cooperative d'Epargne et du Credit COTONNIERE:Societe Catonniaereet Agricole du Kasai et Maniema CPK : Contribution Personnelle Minimum DANE : Dveloppement Agricole du Nord-Est du Zaire DPR : Direction de Planification Regionale DRP : Division Regionale du Plan ECA : Economic Commission for Africa EEC : European Economic Community EGL : Electrification des Grands Lacs ERCC : External Resources Coordination Committee ESTAGRICO: Societe Cotonniire et Agricole de l'Est EXFORKA : Exploitation Forestiare du Kasai FAO Food and Agriculture Organization FED Fonds Europeen de D6veloppement FILTISAE Filatures et Tissages Africains FOMULAC : Fondation Medicale de l'Universlt6 de Louvain en Afrique Centrale FONAMES Fonds National pour L'AssistanceMedico-Sociale - iV -

FORESCA1 : Socigte Forestiare et Comerciale Canadienne FORESCOM : Societe Forestiare et Commerciale GECAMINES : Generale des Carriares et des Mines du Zalre ICO : International Coffee Organizatlon IDA : InternationalDevelopment Association INERA : Institut National pour l'Etude et la Recherche Agronouiques INS : Institut National de la Statistique IRAZ Institut de Recherche Agronomique et Zootechnique ISDR Institut Sup4rieur de D4veloppementRural ISP Institut Superieur de Pedagogie ITENCO Enterprise Italienne de Constructionet de Marbrerie du Zaire IZB Industrie ZairoLse des Bois KINAPLANT : Plantations de Quinquina au Kivu HIBA : Societe MiniAre de Bakwanga MIDEXA : Minoterie de Matadi NGO : Non-GovernmentalOrganization OAT : Organizationof African Unity OKIMO : Office des Hines d'Or de Kilo-Moto ONAFITEX : Office National de Fibres Textiles ONATRA : Office National des Transports OPEZ : Organizationpour la Promotion des Petits Entreprises Zairoises O.R. Office des Routes OXFAM Oxford Committee for Famine Relief PALXEZA Palmeraies du Zaire PETRO-ZAIRE Entreprise Petroliere du Zaire PIP Public InvestmentProgram P12 PlantationsLever au Zaire PNM Projet National du Mais PMKO Projet Mais Kasai-Oriental PNR Projet National du Riz PRONAM Programme National Manioc REGIDESO Regie de Distributiond'Eau SAMAWOS Service d'Approvisionnementen Manuels et Fournitures Scolaires SBC Societe des Boissons des Cataracts SBK Societe des Brasseries de Kinshasa SCZ Societes des Cultures du Zaire SDID Socifdt de D4veloppementInternational Desjardins SERAZ Societe d'Etudes et Realisation Agricole au Zaire SEZ Societ& d'Elevageau Zaire SINELAC Societe Internationaled'Electricit£ des Pavs des Grands Lacs SOBRABAhND : Societe des Boissons de Bandundu SOCOBELAN : Soci4t4 de ConstructionNavale et de Lamboissage du Bois SODI2IZA : SociEte de D6veloppementIndustriel et Minier du Zaire SOFIDE : Societe Financiere de Dgveloppement SOKINEX : Societe Kinoise d'Expansion SOMINKI : Soci4t& Minigre et Industriellede Xivu SOTEXCO : Societe Textile Cotonniere et Agricole du Haut Zaire SOTEXKI : Societe Textile de Xisangani SOZACOM : Societe Zairoise de Commercialisatioades Ninerais SOZIR : Societe Zairo-Italiennede Raffinage -v-

SNCZ : Soci6tS Nationale des Chemins de Fer du Zaire SNEL : Societe Nationale d'Electricitf SUCRAP : Sucrerie et Raffinerie Centre-Afrique (Kiliba) MK : Transport et Messagerie du Kivu UCCEC : Union des CooperativesCentrales d'Epargne et du Credit UNAZA : Universite Nationale de Zaire UNDP : United Nations DevelovmentProgram UNICEF : United Nations Children's Fund UNIDO : United Nations Industrial Development Organization UNTZA : Union des Travailleurs du Zaire USAID : United States Agency for International Development UZB : Union Zairoise de Banques VTIPA : Village Pilote d'AgricultureModerne ZAIREP : Socite de Recherche et d'Exploitationdu PEtrole au Zaire - vi -

ZAIRE: REGIONALDEVELOPMENT PROBLEMS - THE CASE OF KIVU

TABLE OF CONTENTS

Page No.

ABSTRACT i

PREFACE ii

LIST OF ACRONYMS iii

EXECUTIVESUMMARY 1

I. THE SETTING 10

A. Purpose and Organization of the Study 10 B. The Macroeconomic Setting 10 C. Regional Development and Disparities 13 D. Characteristicsof the Kivu Region 15 E. Local Government in Kivu 18 F. Public Finance 20 G. Regional Planning Division (Kivu) 22

II. AGRICULTURE 25

A. Background 25 B. Types of Production Units 26 C. Livestock and Fishing 28 D. Principal Constraintis on Kivu Agriculture 29 E. Investments in Kivu Agriculture 34 F. Conclusions 37

III. INDUSTRY 38

A. Background 38 B. Review of Principal Industrial Activities 41 C. Pr-incipalConstraints on Industry 44 D. Promotion of Small-ScaleEnterprises 47 E. Conclusions 48

IV. TRANSPORTATION 49

A. Background 49 B. Transport Infrastructure 49 C. Determinants of Transport Costs 50 D. Road Transport Services 31 E. Responsibilitiesfor Road Maintenance in Kivu 53 F. Air Transport 56 G. Conclusions 56 - vii - Page No.

V. EDUCATION 58

A. Background 58 B. Current Situation 58 C. Constraints and Issues 60 D. Budgetary Allocations 63 E. Conclusions and Recommendatlons 64 F. Case Study: Institut Superieur de DdveloppementRural (ISDR) 65

VI. NON-GOVERNMENTALORGANIZATIONS 68

A. Background 68 B. Principal NGO Projects 69 C. Comit'eAnti-Bwaki 71 D. Cooperative Savings and Loan Associations 74 E. Conclusions 74

VII. IMPLICATIONSFOR ZAIRE AND THE DONORS 76

A. Introduction 76 B. Implicationsfor Zaire 76 C. Implications for External Aid Donors 80

ANNEXES 81

1. Excerpts from February 25, 1982 Law Establishing Territorial,Political and Administrative Organization of the Republic 82

2. Regional Comparisons 101

3. Organizationof the Regional AgriculturalDivision 110

4. Great Lakes Economic Community 115

5. List of Selected References 120

STATISTICALAPPENDIX 127

MAPS - viii -

LIST OF TEXT TABLES

Page No.

Table I.1 Kivu and Zaire: Investment Budget, 1980-1983 17 Table 1.2 : Levels of Regional Administration 18 Table 1.3 : North-Kivu Sub-Region: Permanent Civil Service Employment by Ministry, 1983 19 Table 1.4 : Collectivities of the Zone of Beni/North-Kivu: Sources of Revenue 21 Table I.5 : Bukavu Tax Revenue, 1981 and 1982 22

Table II.1 : Kivu - Selected Indices of Agricultural Production, L981 25 Table II.2 : Kivu - Highlands Farming Systems by Altitude 27 Table II.3 : Kivu - Operating Budget for Agricultural Field Services 31 Table II.4 : 1981-83 PIP Allocation to the AgriculturalSector by Region 35

Table III.1: Selected Data for Manufacturing and Mining in Kivu aud Zaire, 1979 38 Table III.2: Selected Data for Production Sectors In Kivu, 1979 39 Table 111.3: Number of Employees by Sector and Size of Enterprises in Kivu, 1979 40 Table 111.4: Production of SOMINKI, L977-82 41

Table IV.1 : Distance of Kivu's Main Cities to Matadi, Mombasa and Dar-es-SalaamPorts and Number of Transshipments g9 Table IV.2 : Transport Cost Between Kisangani and Butembo for Certain Products, 1980 51 Table IV.3 : Distribution of Capacity by Size of Enterprises - Butembo, Goma, Isiro, Bunia, Kisangani, 1980 52 Table 17.4 : Flow of Main Products Between Kisangani, Beni and Butembo, 1980 53 Table IV.5 : Kivu Program "Routes de desserte agricole' - Contracts by Category of Signatories,1982 55 Table IV.6 : North-.Kivu:Exports of Meat to Other Zairian Cities by Air Carriers, 1979-82 56

Table V.1 : Primary and Secondary Schools in Kivu and Zaire,1981/8259 Table V.2 : Qualified Teachers in Catholic and Protestant Primary and Secondary Schools, 1981/82 63 EXECUTIVE SUSARY

I. The Setting

1. This pilot study of Rivu was undertaken primarily to Lucrease the Bank's understandingof the regionalaspects of economic developmentin Zaire. The resultsare also intendedto serve as a basis for discussion with the Governmenton regionaland other issuesof mutual concernand to providebackground material which could be usefulIn the preparationof new developmentprojects. After providLngsome backgroundinformatlon on the macroeconomicsetting and on regionsin general,the report examinesthe performanceof the agriculture,industry, transport and educationsectors and reviewsthe role of non-governmentalorganizations in Kivu. 2. Althoughthe difficultiesexperienced by Zaire slnce 1975 have been due in part to factorsbeyond the controlof the Zairianauthorities, inappropriateeconomic and financialpolicies have also been significant contributingfactors. Againstthe backdropof wideningexternal and inter- nationalimbalances which were severelyaccentuated in 1982 as copperpri- ces continued to decline,the Governmentput into effect in September1983 far-reaching price and exchange rate reforms coupled with a substantial liberalization of the trade system as well as appropriate fiscal and monetary policies. The exchange rate reform involveda large initialdevalua- tion of the zairewhich broughtthe rate to a more realisticlevel and the implementationof a floatingexchange rate reglme based on an interbank foreignexchange market. 3. The presentpattern of regionaldevelopment in Zaire was to a large extent shapedby colonialpolicies which encouragedprivate fpreign investmentfor the developmentof agriculturaland mineralcommodities for export. As a result,commercial economic activities were concentratedin the copper-producingareas of Shaba,in linshasa,the administrative,com- mercialand financialcenter, and, to a much lesserdegree, in the agricultural export-producingzones of Equateur,Haut-Zaire, Bandundu and Kivu. This patternstill prevallstoday; for example,in 1981 lCinshasaand Shaba accountedfor 97 percentof the consumptionof electricity,69 percentof the consumptionof light petroleumproducts and 85 percentof the consumption of cement, as well as the bulk of privatesector employment. There are also wide socialand economicdisparities both betweenand withinthe nine regions of Zaire: Bandundu, 3as-Zaire,Equateur, Haut-Zaire,iasai- Oriental,Kasai-Occidental, Kivu, Shaba and Kinshasa. To cite a few figures which should be interpreted with caution because of the weaknessof the data base, the population per physician is 20,000 in Shaba but as high as 72,000 in Bandundu. Primaryeducation enrollment is 181 per thousand population in Kinshasa compared to 107 in Haut-Zaire. Secondary education enrollment per thousand population ranges from a low of 14 in 'Kivu to a high of 55 in Kinshasa. The percentage of girls in secondary schools ranges from a low of 19 percent of the total secondaryschool enrollmentin Kasai-Occidental to more than 40 in Kinshasa, while Kinshasa and Shaba account for 75 percent of the water supplied by legideso. The Government -2- is aware of the social, political and econoiLc implicatLons of the growing regional Lmbalance and has started to address the problem.

4. The Kivu region was chosen as the reglon to be studiod becaus of the presence of a Regional Planning Unit which could serve as the host institution, and on-going sector work by the Bank, particularly the Hlgh- land Farming Systems Study. Klvu, *Ituated on the eastern frontier of Zaire, where It borders the countries of tganda, Rwanda, Burundi and Tanzania, possesses a number of unique characteristies when compared to the remaLider of Zalre. It Is one of the most densely populated reglon. (reaching levels of 250 Inhabitants/km 2 In the eastorn part) and one of the poorest. The diversity of soil and climate, resulting from the different altitudes in the region as a whole, have produced condLtions highly favorable for a wide range of food and Industrial crops. Moreover, the region Is a major livestock breeding area, Its lakes have an enormous fishing potential, and It also has nom mining potential. In light of the region's location in the easternmost part of the country accessibliLty problems are very severe.

5. Under the new law on territorial,polltical and adminLstrative organization, which was enacted on February 25, 1982, the administratIve division of the regions into sub-entities remains essentially unchanged. The Kivu region, with a population of 4.8 million inhabitants,has four sub-regions,24 zones and 78 collectivities. The autonomy of decentralised entities remains quite restricted because (1) top offclials are still appoLnted by the President or the Minister of Territorial Adminiltration who continues to exercise strict control over whatever decisions are taken by the local bodies; (il) they are very limited in theIr revenue-ralsing powers and must depend on Central Government resources, human and.financial, for the provision of servLces.

6. The main agency responsible for regional planning In Zaire is the Direction de PlanificationRegionale of the Planni.g 'liistry (DPR). The 11vu Regional Planning Division (one of four regional planning units super- vised by DPR) has been operating since February 1981 and over the last two years has shown a potential for making a valuable contribution to the social and economic life of the region. While the unit is serving effectively as a technical advisory service for the Governor who makes regular use of its expertLse, its work has been hampered by lack of operating funds. For example, the unlt does not have the resources to generate data and must depend on the field offices of the ceontral ministries and of the INS which are ill-equipped to generate reliable statlstlcs. Given the role that regional planning units are expected to play in the formulation of the five-year development plan for 1986-!990, It may be necessary to reassess their functions (or to increase their resources).

II. Agriculture

7. The economy of the Kivu region is predominantly agricultural. The region is an Important producer of coffee, legumes, sugar, and cotton. I: is the sole producer of tea, cinchona and pyrethrum. Xivu's production units can be classified into two categories: the traditional small lamily farms which account for almost all foodcrop production and the bulk of the -3- export and industrial crops, and the large-scale agro-industrial plantations of coffee, tea, cinchona and sugar. The traditionalsector comprises about 680,000 farming units occupying a total area of about one million hectares. Farming systems in Kivu are diverse, reflecting adaptations by farmers to different conditions. Altitude is the most important of the differentiating factors for Kivu farming systems. The eastern part of Kivu, with high altitudes and better soils, has a beans/tuber/perennial crop production structure, while the western part with low altitude and poorer soils has a cotton/rice/maize economy. Export crops mainly coffee, tea and cinchona make up less than 5 percent of the crop area, but they permit farmers to buy the goods they cannot produce and consequently to live above the bare margin of subsistence. The plantation sector that produced most of the tea, coffee, cinchona and pyrethrum during the colonial period has declined drastically since Independence. The Kivu region is a major livestock-breeding area, particularly North-Kivu. About 85 percent of the cattle herd is held by traditional farmers and 15 percent are found on modern ranches. The most striking development affecting the livestock sector in recent years has been the sevenfold increase in meat exports transported by air to Kinshasa and other cities between 1980-81.

8. Against the backdrop of Kivu's enormous agriculturalpotential, the performance of the sector over the last decade has been disappointing. Although foodcrop production has grown at a faster rate than population, export and industrial crop production has experienced significant declines. However, the picture is clouded by the unrecorded export of coffee through Burundi and Rwanda in recent years, when the official exchange rate was seriously out of line with the parallel market rate. kvailable evidence suggests that while external factors, such as the disruptions caused by the insurgency of the 1960s and the sharp increase in petroleum prices, have adversely affected agriculturalgrowth in Kivu, domestic policy deficiencies and administrative constraints have also been important factors. For example, the gross overvaluation of the zaire which prevailed until September 1983 resulted in depressed prices for Xivu producers of agricultural exports and in the emergence of a variety of illegal, non-productive and speculative activities. Improved performance of the agricultural sector in Kivu - as in Zaire - is restricted by a set of complex and interrelated constraiats, namely: Ci) deterioration of the transport network and shortages of equipment; (ii) inappropriatepricing policies; (iii) weak institutional support; and (iv) lack of confidence of the private sector. In addition there are some Xivu-specificconstraints, such as the land tenure problem, affecting the cattle-rich MYasisiand Rutshuru areas and the plantations sub-sector,and the impact of the liberalizationof gold prospecting and trading on the agriculturallabor force.

9. Until 1983, Kivu had benefitted very little from the many agricultural projects - financed to a large extent by multilateral and bilateral aid agencies - which have been or are being carried out in Zaire. Externally-financedagricultural projects have included the FED financed tea projects, a FAO animal haalth projec: in North 'Kivu, a CIDA commercialization pilot project in North Xivu, and a USAID-assisted legumes -4- program for the iulungu research center in South-Kivuw. The World Bank's Second Cotton Rehabilitation Program (with CCCE co-financing), which includes the cotton-producing areas of Uvira (South-Kivu) and Mamiema, became effective in 1983. Early in 1982 a committee called the 'Xivu Comr- mlttee- - composed of Government and aid agency representatives- was created with the aim of coordinating the many development programs (mainly agriculture-related) being planned for Kivu in order to avoid duplication of effort and the waste of resources that may ensue.

III. Industry

10. In terms of output and regional income, industrial activity mining and manufacturing - is relatively unimportant in 'Kivu. While mining generated a sizeable 11 percent of 'Kivu's GDP in 1970, it has declined sharply since then; manufacturing may have slightly exceeded its 1970 GDP share of 2 percent. The industrial sector's contributionis also small at the national level: around 3 percent of the national manufacturing output and 4 percent of the mining output originated in K,ivu. Yet, the region's climate and geographical features allow a wide range of crops to be grown and favor the development of livestock, fisheries and forestry. Manufacturing, which has played a significant role in processing the products from these activities for domestic use and export, has provided about one-third of wage employment. Much of 'Kiwvu's industrial activity is centered in and around Bukavu, in South Kivu, while Goma in North Kivu is largely a comaercial center and the Maniema sub-region houses SOMINKI, the largest mining enterprise.

11. .A11 information indicates to a significant drop in industrial output in the region. For the whole of Zaire, manufacturing output fell by 27 percent between 1972-74 and 1981, and it would appear that the trend in ,iwvuhas been similar. The number of enterprises in operation has declined considerably and many have experienced a decrease in capacity utilization. The Kivu region offers considerable opportunities for the development of industry, given its favorable resource base, its prospects for trade with members of the Great Lakes Economic Community, and its enterprising population. Yet, the performance of the sector has been hampered by insufficient local demand for industrial production, mainly due to a relatively low income level, and has been constrained by the following factors:

(i) Lack of raw materials. In view of the heavy dependence of Kivu's industry on agricultural inputs, the poor performance of the agricultural sector is a key factor behind the severe weakening of the region's industrial sector;

(ii) Foreign Exchange Constraint. Throughout the 1970s the inability to satisfy import requirements has affected virtually all industries in Kivu. It directly Limited production levels and led to inadequate and delayed maintenance and replacement of plant and equipment, creating a situation in which many enterprises are badly in need of rehabilitation (e.g., brewery, sugar refinery, SOMINKI, cotton ginnery). -5- -

(iii) Energy constraint. Although Kivu is relatively well- endowed with energy resources - wood, hydro power potential, gas methane - the inadequate supply of electricity and the expensive and unreliable supply of petroleum products have constituted a severe bottleneck to the development of industrial activities in Kivu. Electricity supply has been unreliable due to the shortage of diesel oil and the lack of maintenance of the plant and transmissionand distributionsystems. Private generation of electricity represents about 37 percent of the total, compared to only 8 percent for the country as a whole. Much more constraining has been the acute shortage of petroleum products which has caused cutbacks in production and in some instances permanent closures, either directly by interfering with the running of plants or indirectly by limiting transport. The acute shortage of foreign exchange, combined with the overvaluation of the zaire throughout the 1970s, has led to the severe nationwide scarcity of petroleum products. The situation in Kivu has been exacerbated by the (a) dependence on transport routes crossing other countries (North Kivw is supplied from Kenya via Uganda and South Kivu from Dar-es-Salaam via Kigoma), which increases the vulnerability to interruptions in supplies; (b) limited storage capacity, representing less than one percent of national capacity; and (c) the currently-used price setting formula which provides a powerful incentive to Petro-Zaire - the only authorized importer - to underfulfill the petroleum quota for Kivu. The problem of fuel scarcity is unlikely to be resolved satisfactorilywithout greater reliance on the market mechanism through the removal of control over fuel prices and the lifting of restrictions on the import of fuel products. The September 1983 increases in fuel prices are an encouraging move in this direction.

(iv) Administrative Constraints. Industries in Zaire. have to work within an intricate centralized system of fiscal and administrative regulations and controls. This makes operations costlier, causes extensive delays, and creates opportunities for administrative discretion that tend to encourage inefficiency.-The many cumbersome formalitiesmake heavy demands on the scarce administrative resources of both Government and enterprises. In Kivu, the problem is aggravated by the long distance from Uin- shasa and the virtual non-functioning of the post and telecommunications system. A simplificationof the tax system also appears hIghly desirable, considering the multitude of taxes, duties and levies that can be imposed on firms by the Central, regional and urban authorities.

12. - Because most industrial firms in '.Kiv are small and medium-sized enterprises involved in the processing of local materials, including agricultural products, the small-scaleenterprise sub-sector currently receiving MNIDO and CIDA assistance deserves the particular attention of the authorities.

IV. TransDort

13. Given Kivu's remoteness, probably the most severe bottleneck to agricultural growth in Kivu is transportation. The long distances, combined with a severely deteriorated transport infrastructure,result in a -6- spatially-fragmentedregional economy, and constitute disincentives to production. Xany vital roads linking production areas to markets have fallen into disrepair, and roads connecting Xivu to the main ports of Kinshasa, Mombasa and Dar-es-Salaam have many sections which are substandard, resulting in long transit tIme, wastage and high transport costs. .Air transport facilities include the Goma airport which accomodates wide-bodied jets, airports at Bukavu and Kindu which can handle medium-range aircrafts and a number of grass strips.

14. Transport costs are very high due to the long distances travelled, the many transshipments, the poor condition of the road network, the high cost of gasoline and the imbalance in the tonnage of products leading to back-hauls with large unused capacity. Transport to East Africa ports typically takes 15 to 30 percent of the c.i.f. prices at East Africa ports of coffee, tea, cinchona and pyrethrum, although they all have high value per unit weight and bulk. Road transport services in Kivu are largely provided by small-owner operators Who are mainly engaged in trading, with trucking as a secondary activity. A recent study of transport services in North-Kivu found that there was a high degree of competition and, a result, tariffs reflected real costs.

15. .4though a number of organizations are involved in the maintenance of the road network - Office des Routes (OR) , regional administrations, private firms, chu-ch groups - by far the most important of these is the regional Office des Routes. Performance of OR/Kivu has been disappointing due to the lack of recurrent funds and inefficient utilization of these limited resources. There seems to have been a turnaround during 1983 as a result of increased availability of resources, coupled with a change in the management of the regional office. Although performance has notably improved, for some time to come there is likely to be a gap between actual performance and the badly tarnished image of the OR/Kivu. Kivu has benefitted from the Ministry of Agriculture's program for feeder roads under which funds were put at the disposal of the Governor for the maintenance of 2,200 km of feeder roads. The regional administration gave a very high priority to this program and closely involed the private sector in its implementation. The program seems to enjoy widespread support, although given the small amount of resources involved, its impact is relatively limited. Other arrangements include the relatively successful road maintenance program of the two cotton companies, La Cotonniere in Maniema and Estagrico in North-Civu.

16. The analysis contained in this report suggests that a strategy for transport in support of the productive sectors calls for (L) increased involvement of local entrepreneursand other interest groups in the determination of t.xe Office des Routes/Kivu work program and in the maintenance of the feeder roads network; (ii) search for joint solutions with Rwanda and Burundi to the problems related to the use of external transport routes through Uganda, Kenya and Tanzania; and (iii) a realistic assessment of the economic and financial viability of expanding air transport infrastructure and of completing the Bukavu-Kisangani axis in the medium-term. -7-

V. Education

17. As on the national level, the quality of education in Kivu is gradually deteriorating,mainly due to the severe financial constraints of and the mismanagementof availableresources by the Central Government. In the past two years, the Governmenthas attempted to address and correct the issues by implementing a seemingly-improved payment system for teachers salaries and by carrying out a school inspection and control exercise, which has led to the closing or consolidating of a number of fictitiousor sub-standard (according to government criteria) schools. Despite these steps, however, the highly-centralized education sector continues to face serious problems of cost-effectivenessand transparency of funds.

18. Although the school inspection exercise was a first step in ridding the school system of unqualifiedand fictitious teachers and reassigning the qualified teachers to other schools, the control of teacher recruitment should be carried out on a regular basis. In fact, education specialists familiar with Zaire recommend that given the present student/ teacher ratios in Zaire - rather low compared to other sub-African countries - the Government could attack the problem of teacher underqualification by reducing the number of teachers and increasing the salary of the rest. These actions should be accompanied by strict criteria with regard to the opening of new schools and classes.

19. The shortage of.operating revenues for schools at the local level has placed an increasinglyheavy burden on parents of school children. The policy of remitting tuition receipts to the central authorities is a quest- ionable one and has actually aggravated the financial situation of the schools, considering that regional governments are receiving very limited funds for school operations. The rationale behind this policy deserves, therefore, to be reconsidered, together with -the use of the funds that are remitted to the Treasury. The large increase in all school fees, effected in September 1983 does little to increase school revenues if tuition receipts continue to be remitted to the Treasury. Administrative costs would be lower and operating standards improved if fees were to remain at the school level. Moreover, it is uncertain whether this increase in school fees can adequately finance minimum quality improvement when, in fact, parents have had to purchase textbooks and materials, even though these were to be covered by the fees. The inefficient centralized distribution system for textbooks and school supplies has only met a small part of the total demand for school materials, forcing school administrators and parents to rely on non-market domestic channels and external markets for scarce supplies - at a very 'nighcost. It would appear that, especially in Kivu, where geographicaldistances and a poor road system truly isolate it from Kinshasa, a decentralizedor "privatized"distribution system would be more efficient and responsive to local needs. The regional coordinators of the Church-affiliatedgroups, who can better assess the needs of their schools, could probably assume the distributionfunction.

20. Moreover, Kivu's extremely low share of total education investment in the 1983-85 PIP provides little hope for improvementin the quality of education in the region in the near future. This point suggests another consideration; namely the need for greater involvement of the religious bodies in sectoral policy formulation and closer contact among them and with the external community, especially regarding investment opportunities. -8-

Traditionally, the religious groups, motivated by their own sense of mission, have administeredtheir schools more efficiently,despite severe financial constraints. In addition, their long experience in the local communities has provided continuity in a sector which has been frequently jolted by political developments.

VI. NGO's

21. As in all of Zaire, religious groups have been active in Kivu for many decades - traditionallyin the education and health sectors. However, their impact in Kivu goes beyond the social sectors to involvementin agricultural extension-type work, to small-scale agro-industrial production, to construction and maintenance of feeder roads, and to coordiaation of human resettlement schemes. In addition, the region has a very active non- governmentalentity, the Comite Anti-Bwaki, originally established to combat serious infant malnutrition. In the past few years, the Comite has extended its activities to other regional concerns and needs, such as (i) a livestock resettlement scheme, which would alleviate the strong population land pressure in an area which is densely-populated and also provide milk and meat to a rural population suffering from a protein-deficient diet; (ii) coordinating the activities of the various groups interested in rural water supply (e.g., UNICEF); and (iii) promotion and education of erosion control methods within the local communities.

22. The sample of NGO activities in Kivu illustrates the variety of involvement of the different groups and their relative effectiveness and success in responding to local needs. Given their visible presence in the local cowmunities, the NGO's can identify better the problems of the area and formulate appropriately-designedsolutions. As demonstrated by the Comite Anti-Bwaki, the VIPAM program (a pilot village resettlementscheme in South Kivu) and the soya processing plants (processing of soya flour for local nutrition centers), the contribution of NGO's to economic and social development, though on a small-scale, can be measured by the active involvement of the local population in the various activities and the high demand for existing programs. 3y purposely seeking the cooperation of the communities, the NGO's not only 'localize" their operations, but also foster a local sense of trust and confidence in their programs.

VII. Imalications for Zaire and the Donors

23. The far-reaching policy reforms, adopted in September 1983 and centered on the introduction of a market-determined exchange rate and substantial liberalization of the domestic pricing system, have important implications for the recovery of the Xivu economy. These measures go a long way toward removing the serious cost/price distortions created by the previous system and realigning relative prices in favor of production and export sectors. In lignt ofl Kivu's output mix and border location, the new measures would not only favor producers of exports and efficient import substitution at the expense of traders and speculators, but should also provide an incentive to shift from the -underground" to the open economy. -9-

This shift would increase foreign exchange going through the legal channels and government revenues. Important as these new measures are in putting In place a macroeconomic policy environment more conducive to the productive sectors, alone they will not bring recovery to the Kivu economy unless the necessary institutionaland investment priority changes - improvements in infrastructure and maintenance, training of manpower and generation and dissemination of technological packages - are also made. Finally, it should be kept in mind that even with major policy changes, it will take time to restore lost confidence, strengthen weakened institutions and improve badly-deterioratedinfrastructure.

24. Regional development stands to benefit from greater cooperation among the donors. In 1982 a promising start was made with the creation of the "'Mvu Committee". Another related development is the decision announced at the Consultative Group Meeting in December 1983 to reactivate the External Resources Coordination Committee (ERCC). Enhanced cooperation among donors through an effective ERCC would also translate into better cooperation for assisting regional development. Through their intervention, donors can encourage the involvement of private firms and parallel organizations in the regional development process. This study of Kivu, has shown the complementarity of the sectoral and regional approaches. Explicit consideration of the regional aspects makes it possible to focus on the development potential and problems of particular regions in a more concrete and integrativeway. - 10 -

I. The Setting

A. Purposeand Organizationof the Study

1. This report, conceived as a pilot study of a region, 'Kivu,was undertaken primarily in order to increase the Bank's understanding of the regional aspects of development in Zaire. More specifically, it is expected that the study will be an important input into and a tool for broadening the Bank's future macroeconomic analysis, particularly in assessing the impact of Government policies on regional development, ln preparing macro forecasts for Zaire and in opening up a dialogue on regional and other issues; and in providing findings which could be useful in the preparation of new development projects. The study does not pretend to be a comprehensive evaluation of the development issues, policy and prospects of Kivu, nor does it aim to produce a regional development plan.

2. The report is divided into seven chapters. This chapter (i) provides background information on the macroeconomic setting; (ii) highlights regional disparities;and (iii) gives a profile of the Kivu region. Chapters II through V assess the sectoral performance of the Kivu economy and Chapter VI reviews the role of non-governmentalorganizations- Chapter VII discusses the implications for Zaire and the donors which emerge from the analysis contained in the previous six chapters and offers a series of recommendations for future action by the Government and the donors.

B. The Macroeconomic Setting

3. The economic history of Zaire since Independence can be divided into three periods: (i) the years 1960-67, which were marked by political strife and economic turmoil; (ii) the years 1968-7A, when GDP expanded at a rate of about 7 percent per annu. in an environment of relative political and economic stability; and (iii) the period since 1975, which can be labeled .the crisis years", as it witnessed serious economic and financial imbalances, a decline in per capita income, a deteriorationof productive capacity and infrastructure,a weakening of institutions, and an erosion of internal and external confidence.

4. The difficulties experienced since 1975 have been due In part to factors beyond the control of the Zairian authorities. In particular, the sharp deterioration in Zaire's terms of trade in the mid-1970s, brought about mainly by the drop in world copper prices from an average (as recorded on che London Metal exchange)equivalent to USSO.93 per pound in 1974 to TYSS0.56per pound in 1975, dealt a heavy blow to the economy, government finances, and the external payments position. A4though world copper prices subsequently recovered in nominal terms, averaging US$0.99 per pound in 1980, most of this improvement was offset by the steadily rising prices of Lmports. Further- more, the upturn in copper prices was short lived, owing to the adverse impact of the recession in the major industrial countries. Trhe Zairian economy also suffered greatly from the hostilities in the Shaba region in 1977 and 1978, as -well as from recurring disruptLons in internal and external transportationroutes. - 11 -

5. To a much greater extent, however, Zaire's large internal and external imbalancesare the result of a long period of inappropriateeconomic and financial pollcies. No event ia the last decade had a more negative and lingering effect on the economy than the zairianization and nationalization measures of 1973-74 which, though rescinded since, destroyed the distribution network and infrastructure linking the urban and rural areas and severely undermined private sector confidence. Another important event was the heavy external borrowing of 1973-74, much of it at unfavorable terms and for projects of questionablebenefit, which persisted through the first two years of the crisis. More than half of Zaire's current outstanding debt dates from borrowing decisions made during that period. A third important development was the erosion of the ability of Gecamines (the state-owned mining company and by far the largest foreign exchange earner of Zaire) to rehabilitateor renew its productive capacity. Agriculturaldevelopment was also neglected during the crisis (although the trend had started earlier), with Zaire changing from a net exporter of agricultural products to a net importer. Last but not least, the crisis saw an expansion in the Government's expenditures far beyond its means, as the Government assumaed a bigger rolein thFe economy and as expeaditures of a non-economic character proved difficult to control.

6. Until the late 1970s, Zaire's attempts to cope with the crisis were uneven and uncoordinated. The year 1979 saw the beginning of more systematic efforts by Zaire and its major donors to deal with the crisis. These included a new stabilizationprogram supported by the IMF; debt rescheduling agreements with the Paris Club (December 1979) and the syndicated private banks (April 1980); the preparation of a public investment program (PIP) for 1979-81 with the help of the World Bank; the installation of external advi- sers at the Central Bank and the Ministry of Finance; the revamping of some institutions(the Customs Office, the Ministry of Agriculture,the Investment Commission). These and other efforts produced considerable improvements in 1980.

7. Largely on the strength of this improved performance, in mid-1981 Zaire adopted a three-year program of economic and financial adjustment supported by an 'Extended Fund Facility" (EFF) from the IMF in an amount equivalent to SDR 912 million. Zaire also concluded (in July 1981) a new debt rescheduling agreement with the Paris Club. However, economic performance during the year fell below expectations because of external and internal factors. The weakening of the copper and cobalt markets caused Zaire's mer- chandise exports to fall by about US$540 million (or 26 percent) in nominal terms. Real imports were lower than at any year during the crisis and amounted to 40-50 percent of the pre-crisis level. Zaire could not comply with either the criteria under the EFF or the July 1981 debt rescheduling agreement; it began accumulating external debt arrears in the third quarter of 1981; and the EFF was formally cancelled effective June 21, 1982. -12 -

8. The world copper price fell sharply in 1982 - to the lowest level (in real terms) in more than 30 years - thus accentuating Zaire's economic difficulties. By year end, exteraal debt arrears amounted to about US$940 million, of which US$690 million were on public debt and US$250 milllon on commercial debt and invisibles. The budgetary deficit expanded, too, to about twice the level of 1981 (in nominal terms), and was equivalent to about 10 percent of GDP. After recovering by 2.4 percent a year in 1980 and 1981, GDP contracted marginally (by about 1 percent) in 1982; the inflation rate edged upward, averaging 37 percent; and the exchange rate came under strong pressure, the spread between the parallel market rate and the official exchange rate of the zaire rising to 3.5 to 1.

9. AgaLast the backdrop of widening external and internal imbalances whi-ch were severely accentuated in 1982 the Government put into effect in September 1983 far-reaching economic and financial measures. The most important of these were: (i) the immediate devaluation of the zaire by about 80 percent vis-A-vis the US dollar; (ii) introduction of a transitional dual exchange rate regime, consisting of an official market rate and a free market rate leading to the unification of the two rates in February 1984; (iii) a substantial liberalization and simplification of other exchange and trade arrangements; (iv) a comprehensive revision of customs duties involving significant reductions in tariffs on essential foodstuffs, raw materials and intermediate goods and major increases on luxury goods; (v) a considerable adjustment and liberalizationof the interest rate structure, including the lifting of all administrative controls on lending rates of commercial banks (except for those applicable to the noncoffee agriculture sector, for which they are 15 perceat); (vi) the further liberalization of prices including producer prices of all agricultural commodities; (vii) the increase of the retail price of petroleum 3-5 times, depending on the grade, to take full account of the change in the exchange rate; and (viii) the decision to limit wage Lncreases to about 40 percent through 1984, well below the estimated rate of inflation.

10. In addition to adopting a new program of financial and economic adjustment, Zaire has begun to implement an agricultural strategy based on price liberalizationand reliance on the private sector. It has also taken concrete steps to strengthen the management of Gecamlnes and to relieve some of the pressure hampering operations and investment. Among the most important are the adoption of a new fiscal regime for the company, the revaluation of assets, and the announced intention to strive for greater transparencyof policymaking through a new marlketingagreement with Sozacom. The Government has also made important policy adjustments in the transport sector and has started giving attention to the formulation of an energy policy.

11. The Government's stabilization program is being supported by an IMF standby arrangement and major debt rescheduling. However, economic recovery will require not just resources, debt reschedulingand macroeconomic policies, but also proper sector-specific,production-oriented interventions. In particular, efforts to revitalize agriculture, the mainstay of the regional economy, will need to be continued and strengthened. - 13 -

C. Regional Development and Disparities

12. The present pattern of regional development in Zaire was to a large extent inherited from the colonial era. A key objective of the Belgian colonial administrationwas to encour.geprivate foreign investment for the development of agricultural and mineral commodities for export, and to establish the associated infrastructure. As a result, market-oriented economic activities were concentratedin the copper-producingareas of Shaba, in Kinshasa, the administrative, commercial and financial center, and to a much lesser degree in agricultural export-producing zones of Equateur, Haut-Zaire, Bandundu and Kivu. The transport net-work,i.e., the Zaire River route above 'Kinshasaand the Shaba-Kinshasaaxis, was conceived mainly to evacuate mining and export agricultural products. Cross-country linkages between Equateur, Haut-Zaire and Kivu, on one hand, and Shaba and the Kasais, on the other, were to a large extent ignored. Superimposed upon these regional disparities was the excessive concentrationof economic power in the hands of expatriates who o,ntrolled the mining and export agriculture enclaves. On the eve of Independence, they represented one percent of the population and controlled 95 percent of the capital assets, 70 percent of the marketed production and 50 percent of the monetary national income.l/ By 1970 these two regions, with 19 percent of the population, accouuted for more than 60 percent of GDP compared to 46 percent in 1957.2/ This tread has continued, resulting in further increase in the relative economic importance of Kinshasa and the copper-producing Shaba region. In 1981, for example, Kinshasa and Shaba accounted for more than 97 percent of the consumptionof electricity,69 percent of the consumption of light petroleum products and 85 percent of the consumption of cement. They also accounted for the bulk of private sector employment.

13. Aanex II presents the key administrative, demographic,economic, physical and other features of each of the nine administrative regions. These regions are: Bandundu, Bas-Zaire, Equateur, Haut-Zaire, Kasai-Oriental, Kasai-Occi-dental, Kivu, Shaba and Kinshasa. It should be noted that the city of Kinshasa has the status of a region.

1/ J. Ph. Peemans, The Social and Economic Development of Zaire since Independence:An Historical Outline", African Affairs, Vol. 74, No. 295, April 1975.

2/ Leon de St. Moulin, "La ?lace de Kinshasa dans l'evolution national', Congo-Afrioue,August-September 1971, and World 3ank, Urban Sector Survey, Vol. II (Report No. 208-CK), July 31, 1973. - 14 -

14. Distribution of social services is quite uneven among the regions. A number of social indicators on health, education and water supply are presented in Table 8.1 of the Statistical Appendix. To cite a few figures, which should be interpreted with caution because of the weakness of the data base, the population per physician is 20,000 in Shaba but as high as 72,000 in Bandundu. Primary education enrollment is 181 per thousand population in Kinshasa but only 107 in Haut-Ziire. Secondary education enrollment per thousand population ranges from a low of 14 in Kivu to a high of 55 in Kin- shasa. The percentage of girls in secondary schools range from a low of 19 percent of the total secondary school enrollment in Kasai-Occidentalto more than 40 in Kinshasa, while Kinshasa and Shaba province account for 75 percent of the water supplied by Regideso. The relatively equal regional distribution of hospital beds per population and of teacher/pupilratios for primary and secondary schools should be interpretedwith caution because health facilities may not actually exist or function, and education personnel are often overestimated.

15. There are no reliable data on the extent of intra-regionaldispari- ties but they are apparently quite wide given that most services are located in the few urban centers scattered throughout Zaire. A study iade in the early 1970s found that in Kivu the average urban income was some 20 times higher than the lowest rural per capita income, while in Shaba the ratio was 10 to one.3/ The extensive migration from rural to urban areas must be due in part to the widening gap between urban and rural incomes.

16. The Government is aware of the social, political and economic implications of the growing regional imbalance. Excerpts from an editorial which appeared last year in an official publication highlight the Govern- ment's concern:

"The city of Kinshasa has an over-abundance of schools... The same may be said for health facilities, concentration of the elite, manufacturing plants, etc. The observation made... by the Executive Council points up the need to give a new direction to the relations between Kinshasa and the rest of the country. This is essential to equitable progress. What mist at all costs be avoided is that one day histor- ians will write that Zaire consisted of !ilnshasa on one side and the desert on the other." 4/

31 Leon de St. Moulin, -Les villes et le dtveloppement economique du Zaire" in J.P. Breitengross (ed.) Planificationet d&veloppement Sconomique au Zaire. Hamburg: Deutsches Insti-tut fUr Afrika-Forschung, 1974.

4/ Agence Zaire Presse (AZAP), February 8, 1982. - 15 -

This pilot study of Kivu responds to the need for improved knowledge of the regional aspects of economic development in Zaire. The 1ivu region was chosen for a number of reasons, inter alia: the Government's concerted development effort in favor of the region - an effort being supported by many aid donors including the Bank; the presence of a regional planning unit which could serve as the host institution;and on-goiag sector work by the World Bank, partlcularlythe Highland Farming Systems Study. The remainderof this chapter presents a profile of Xivu.

D. Characteristicsof the Kivu Region

17. The Kivu region is situated on the eastern frontier of Zaire, where it borders the countrles of Uganda, Rwanda, Burundi, and, across Lake Tangaa- yika, Tanzania. To the north is Haut-Zaire, and to the south, Shaba. The region accounts for about 11 percent of the area of Zaire and 16 percent of its population. It is the most densely populated region with a density of 18, compared to 12 for Zaire. The average density hides the disparity between the sparsely populated western part of the region and the relatively dense population in the eastern part. Table 1.2 of the Statistical Appendix indicates that 50 percent of the region's populatlon lives in areas with a density greater than 50 persons/km2; 31 percent in areas with a density greater than 100 persons,'km2. The region is well known for its entrepreneurial tradition and dynamism and its farmers are among the most industrious of the country.

18. The region possesses a number of unique characteristicswhen co0- pared to the remainder of Zaire. The eastern part comprises the mountains which border part of the African Rift Valley, in the basin of which a series of lakes-Tanganyika, Kivu and Vitshumbi--extendfrom south to north. The valley is flanked by several mountain ranges, -withelevation of up to 5,000 meters, which give this area a more temperate climate then the rest of the country. Moving westwards, the altitude declines to below 500 meters in the extreme north-west. Most of the central and south-western area lies between 500 meters to 1,000 meters. The diversity of soil and climate, resulting from the different altitudes in the region as a whole have produced conditions highly favorable for a wide range of food and industrialcrops. It is the sole producer of tea, cinchona, and pyrethrum. It is also a major livestock breeding-area and its lakes have an enormous fishing potential. Kivu also has some mining potential: deposits of tin ore, gold, monazite (type of phosphate), aad recently discovered pyroclore.

.19. The regional capital and major urban center is Bukavu at the southern end of Lake K.ivu,with a populationof about 150,000. As the administrative center, the city houses the Governor and the various field offices of the line ministries. With its many pleasant vistas, Bukavu holds considerable potential as a tourist center. Moreover, it could become a marketing, distributionand processing center for the production of its its rich volcanic hinterland. But the city is in a bad state of disrepair. The town sustained considerable damage during the troubles of 1963-64 and has suffered neglect since that time. Over the last few years the three NTorth-Kivu towns of Goma (population54,000), Butembo (population51,000) and Beni (population - 16 -

38,000), have experienced a revival of economic actLvity. Other major towns are Kindu (population 54,000), Kalima (population 27,000), Kasongo (population 26,000) and Kaimtuga (populatLon 25,000).

20. In light of i'vu's location iv the easternuost part of Zaire, accessibilityproblems are severe in much of the region. The region's road network which is In very poor conditlon consists primarily of several roads radiating from Bukavu, including the one under construction from Kisangani, one going to Kindu (the head of the southern railway line), one north through Goma and one south to Kalemie. The railway line from Kindu in vest-central Kivu goes southwards into Shaba where it joins the main south-eastern lUne extending into Zambia. Water transport in the region is facilitated by the lakes on the eastern border and the river Lualaba, which flows in a north-south direction In the western part of the region.

21. There are no recent estimates of regional gross domestic product. Estimates made for 1957 and 1970 indicate that Kivu's share of national GDP declined over the period from 9.4 percent to 7 percent. Since Independence. the region has suffered a setback in terms of declining output caused by the political upheaval of the early 1960's, the nationalization-retrocessionmeasures of 1973-75, the large scale emigration of European settlers and the reduction of links with the rest of the country as a result of deterioration in the physLcal transport system. Ktvu ls one of the poorest regions in Zaire. Per capita monetary income ls estimated at no more than US$40 in the rural sector. Per capita GDP in Kivu which represented 56 percent of the national average in 1957, sunk to about 40 percent in 1970. These figures are probably still valid today. Malnutrition,aggravated by extensive erosion due to high population density, is widespread in South xivu.5/

22. Until recently very few development projects were being implemented in Kivw. Kivu's share of the Investment budget as shown in Table 1.1 has lncreased from less than two percent of the total for the two year period 1980-1981 to 7 percent for the 1982-1983 period. The region's share ln the 1983-1985 PI? is about 13 percent of the total intended lnvestment expenditures. These figures indicate a shift toward supporting a concerted development effort ln Kivu, one of the regions with the most potential for increased agriculturalproduction.

5/ In addition to severe malnutrition, numerous diseases (e.g., malaria, cholera, tetanus, typhoid, dysentery) a'flict the population of Xlivu. The generally poor health situation is a reflection of socio-economic conditions - poor sanitation due to lack of potable water and bad hygiene, as well as shortages of medical personnel and pharmaceutical products and inaccessibilityof health facilities. -17-

Table 1.1: Kivu and Zaire: Investment Budget, 1980-1983 (Thousand of zaires)

Rivu as Xivu Zaire Z total 1980 al Education 395 20,800 1.9 Transport 3,247 34,600 9.4 Health 44 8,800 0.5 Agriculture 5,015 32,400 15.5 Other - 149,600 - Total 8,701 246,000 3.5

1981 a/ Health 236 2,000 11.8 Agriculture 969 19,600 4.9 Water/Energy 850 309,900 0.2 Other - 264,300 - Total 2,055 595,800 01

1982 b/ Higher education 126 9,226 1.4 Transport 3,267 154,929 2.1 Water/Energy 2L,268 105,254 20.2 Posts and Telecommunications 3,000 72,000 4.2 Public Works 3,383 101,254 3.3 Other - 342,212 - Total 31,044 784,875 3.9

1983 b/ Agriculture and Rural Development 5,000 31,800 15.7 Higher Education and Research 1,937 15,029 12.9 Transport 2,000 59,853 3.3 Public Works 18,375 92,875 19.8 Energy/Water 46,150 137,'L-40 33.7 Other - 390,203 - Total 73,462 726,900 10.1

M4emoitem:

Klvu population as percentage of total population (1981) 16.0 a/ Actual expenditures. b/ Budgeted expenditures.

Source: Ministry of Finance. -18-

E. Local Government in Kivu 6 /

23. Under the new law on territorial, politicaL and administrative organizationwhich was enacted on February 25, 1982, the administrativedivi- sion of the region into sub-eatities remaias essentially the same as before (see Annex I). Each region is subdivided into sub-regions and cities (villes); sub-regions are in turn subdivided into rural zones and towns (cites); cities into urban zones; rural zones into collectivities (collecti- vit4s) and one or more towns; urban zones into neighborhoods (quartiers); collectivities into groups (groupements) and the groups into localities (localites),which are the smallest administrative units. Table 1.2 below shows the structure of regional administration for the nation, the region of Kivu, the North-Kivu sub-region and one of the zones of the North-Kivu sub- region.

Table 1.2: Levels of Regional Administration

Zone of Kivu North-Kivu Benr./North-Kivu Zaire region Sub-region sub-region

Regions 9 - - Sub-regions 40 4 - Zones 175 24 6 - Collectivities 750 78 17 4

Source: Division Regionale de la PlanificationIKivu,La region du Kivu; Zone de Beni, Annual Report 1981.

24. Regional and local bodies deal with the maintenance of law and order, the issuance of licenses for a whole range of activities, public sanitation services, public health, management of primary and secondary schools, and the maintenance of local roads. Until the price liberalization measures of 1982 and 1983, regional authorities were also given broad powers to control prices, particularlyproducer prices. The autonomy of decentralized entities remains quite restricted because (i) top officials are appointed by the President or the Minister of Territorial Administration who exercises strict control or tutelage over whatever decisions are taken by the local bodies; (ii) they are very limited in their revenue-raisingpowers and must depend on Central Government human and financial resources for the provision of services.

6/ For background information on public administration in general, see M.pinga-Kasenda, L'Administration oublique du Zaire (Paris: Editions Pedone, 1973); Mpinga-Kasenda and D.J. Gould, Les reformes administratives au Zaire: 1972-73 (Uinshasa: Presses Universitairesdu Zaire, 1975); Serge A. Vieux, L'Anainistration Zairoise (Paris Ed. Berger-Levrault, 1974); D.J. Gould, Local Administration in Zaire and Underdevelopment",Journal of Modern African Studies, September 1977. - 19 -

25. Most regional services are provided by permanent civil servants technically attached to ministerial departments in Kinshasa. Not counting primary and secondary education teachers, nearly 7,300 positions for permanent civil servants from the Central ministries were allocated for Kivu in 1983 although the actual number filled was only about 6,300. These positions are distributed among the various levels of regional administration, e.g., 2,100 for the sub-region of North-Kivu. 7 / The following table gives the distribution of permanent civil servants by ministry for the North-Kivu sub-region which has a population of more than 2 million inhabitants. It can be seen that agriculture, public works, health and social welfare account for 82 percent of total public service employment in the sub-region; if primary and secondary education employment is taken into account, the share increases to 97 percent.

Table I.3: North-Kivu Sub-Region: Permanent Civil Service Employment, by Ministry, 1983

Ministry Number Percent

Territorial Administration 181 8.6 1.4 Defense and Veterans 27 1.3 0.2 Justice 68 3.2 0.5 Information, Culture and Arts 4 0.2 Finance 41 2.0 0.3 Agriculture and Rural Development 777 37.1 6.1 Nqational Economy 8 0.6 0.1 Mines and Energy 4 0.2 - Public Warks 291 13.9 2.3 Transport and Communication 16 0.8 0.1 Health 525 25.0 4.1 Land Management 12 0.6 0.1 Social Affairs 127 6.1 1.0 Labor 5 0.2 - Public Administration 1 - - Sports 9 0.4 0.1

Sub-Total 2,096 100.0 16.5

Primary and Secondary Education 10,629 83.5

Total 12,725 100.0

Source: Personnel Management Division, North-Kivu sub-region, July 1983.

7/ See Annex III for a description of the organization of agricultural services at the regional, sub-regional, zone, collectivit7 and locality levels. - 20 -

According to the law, the Governor exercises admLnistrative authority over civil servants working in his region. The two-headed nature of authority, whereby the central ministries exercise technical supervision and the regional authorities' administrativesupervision, sometimes creates confusion which adversely affects the performanceof civil servants in the region.

F. Public Finance

26. Although the 1982 decentralization law restores some measure of fiscal autonomy to the various regional bodies, in practice there has been very little change and the major flows of taxes and expenditures (recurrent and capital) continue to be channelled vertically through central government 8 departments controlled from Kinshasa. 1' According to Article 16 of the loi financiare of February 23, 1983, revenue for decentralized entities must come from:

(i) indirect taxes on local goods and services that have not already been taxed at the national level;

(ii) fees for services rendered;

(iii) property taxes on vehicles, land and buildings;

(iv) minim=u head tax ("contribution personrelle minimum" - CPM);

(v) Equalization Fund; and

Cvi) Central Govermment subsidy.

27. Regions and sub-regions rely almost entirely on the Central Govern- ment for thelr budgetary resources. The Kivu regional administration received in 1982 a total of Z 14 million (about $2.4 million at the then prevailing official exchange rate) for operating expenses of all its services (not including salaries). The tiorth-Kivu sub-region, on the other hand, received about Z 2.5 million (less than half a million dollars) for the same year.

28. The situation is somewhat di.Zferentfor collectivitiesand cities which raise the larger proportion of their revenue. In the case of the collectivities, the head tax (CP-()is the main source of revenue (about 50 percent of total revenue). Table 1.4 below shows the sources of revenue for the collectivitiesof the zone of Beni duriag 1981.

8/ A recent review by the World Bank on decentralizationin developing countries emphasizes the point, however, that decentralization should be viewed as -an incremental process of building the capacity of noagovern- mental and local organizations to accept and carry out effectively new functions and responsibilities". World Baak, Decentralization in Deve- loping Countries. (World 3ank Staff Working Papers, g4o. 581), 1983. 221 -

Table 1.4: Coilectivitiesof the Zone of Beni/North-Kivu: Sources of Revenue, 1981 (Thousand of zalres)

Sources of Revenue Amount Percentage

Indirect taxes and fees for services rendered 394.7 19.0

Read tax 1,142.9 55.1

Judiciary receipts 218.9 10.6

Economic receipts 138.8 6.7

Miscellaneous receipts 179.3 8.6

Total 2,074.6 100.0

Source: Annual Report-,Zone de Beni, 1981, p. 22.

The head tax is levied on residents over eighteen years of age whose annual income is less than or equal to Z 3,000. Women working at home, soldiers retired from active duty, students, invalids and elderly persons are exemp- ted. To take the case of the collectivitiesof Beni, for the 1977-R1 period an average of 63 percent of the eligible men paid the head tax while only 21 percent of the eligible women did so. The tax varies among localities,e.g., in 1981 it ranged from Z 12.57 (about US$3 at the average exchange rate for 1981) in the collectivityof Bashu to Z 29.99 (about US$7) in the collectivity of Ruwenzori, both in the zone of Beni.

29. In the case of urban zones and cities, the single most important source of revenue is the tax on beer, alcoholic beverages and bars. Most of the other taxes produce very little, even less than Z 1,000 in some cases. Revenue sources for the city of Bukavu for 1981 and 1982 are given below. (See Table 1.5) Information on the amount and structure of local expendituresis scant, but the available evidence indicates that the bulk of revenue goes toward the payment of wages and salaries. The sectoral review contained in Chapters II to V of this report highlights how the lack of operating resources severely affects services in Kivu. - 22 -

Table 1.5: Bukavu Tax Revenue, 1981 and 1982 (zaires)

Sources of Revenue 1981 1982

Tax on beer 242,612 304,801 Tax on alcoholic beverages 62,220 93,942 Tax on bars 76,574 40,576 Taxi license fees 2,404 18,050 Tax on rental buildings 49,490 10,444 Street tax 3,738 24,683 Tax on employees 4,876 1,445 Tax on market traders 77,509 133,264 Tax on advertisements 4,550 10,000 Tax on parking of taxis 359 6,870 Tax on horses 500 600 Tax on sports complexes 900 500 Tax on residence permits 171,267 289,326 Tax on restaurant meals 9,950 18,343 Administrativereceipts 3,432 3,775

Total 710,381 958,419

Source: City of Bukavu, July 1983.

G. Regional Planning Division (Kivu)

30. The 1982 decentralizationlaw stipulates that one of the functions of the regional governor is to prepare the regional component of the national development plan aad submit it for approval by the regional assembly. He is also supposed to be responsible for the execution of development programs decided by the Executive Council and the Regional Assembly. The main agency formally responsible for regional planning in Zaire is the Direction de Planification Regionale (DPR) of the Planning Ministry. DPR was established in 1980 and is in the process of decentralizingwith the creation of Divi- sions Regionales du Plan (DRP). So far, four DRPs are already operational in Bandundu, Equateur, Kivu and Shaba. The DRPs are expected to fulfill the following three roles: - 23 -

(i) Information: collect and submit to the regional authorities and the Executive Council, reliable socio-economic data to be used for planning purposes; collect and analyze regional economic and social statistics, undertake feasibility studies of regional projects, draw up regional investment plans and supervise regional projects under the guidance of the Planning Ministry.

(ii) Coordination: coordinate studies on regional planning through the definition of objectives and the determination of programs, within the context of the guidelines set by the Executive Council and the regional authority;

(iii) Support: support the development activities of regional economic and social agents and serve as the secretariat of the Regional Comite de Conjoncture.

The regional Comite de Conjoncture is patterned after the national Comitk de Conjoncture. The regional committee is expected to monitor socio-economic developments of the region and address short-term problems. Presided over by the regional governor, the committee members are the regional division chiefs for the Ministries of Agriculture, Finance, National Economy and Planning; the manager of the regional branch of the Bank of Zaire, and a representative each from the national labor organization (UNTZA) and from the national businessmen's association (A^NEZA).

31. The Kivu Regional Planning Division has been operating since February 1981 and over the last two years has shown a potential for making a valuable contributionto the social and economic life of the region. To its credit, the unit was able to attract as its first director a qualified economist and a number of university-trainedstaff in the area of economics socio- logy, demography, statistics, veterinary medicine and public finance. At present the unit has a staff of about 20, of which 12 are professionals. The unit has published a number of documents, particularly the comprehensive Region du Kivu (December 1981) and the trimestrial Synthese Economique R4gionale. The unit has also served effectivelyas a technical advisory service for the Governor who seems to make regular use of its expertise. The mission worked in close cooperation with the unit and benefitted greatly from its contributions.

32. Although the performance of the unit so far is encouraging, it is too early to tell whether its potential will be realized. With the exception of the director, the professionalsare recent university graduates who need systematic training in all phases of project planning - identification, preparation, evaluation and implementation. The work of the unit is hampered bv lack of operating funds. Rot only operating resources are scant but they are received very irregularly which precludes a rational utilization of the DRP staff for the various functions they are expected to perform. For example, during the first sLx months of 1983, the unit received practically no - 24 -

operating funds. The unit does not have the resources to generate data and must depend on the field offices of the central ministries and of the INS which in turn are ill-equipped to generate rellable statistics. The local INS office receives only an average of Z 3,000 per month for its operating expenditures, half of which is used for buying commodities needed to compute the monthly consumer price index for Bukavu. INS/Kivu does not have the funds to print the series that it generates. The ability of DRP/Kivu to contribute to regional planning and the monitoring of the execution of projects depends on effective cooperation with the field offices of the central ministries (particularly agriculture, transport, public works, education, health, etc.), regional branches of the parastatals (Office des Routes, Regideso, SNCZ, etc.), non-governmental organizations and private firms. The Kivu planning unit attempted an inventory of projects being implemented in the region and found that the regional entities not only had no input in the design of the projects and no role in the monitoring of execution but very often did not even know of the existence of the project(s) in their sector. Given the role that regional planning units are expected to play in the formulation of the five-year development plan for 1986-1990 there is a need to reassess.realistically their functions. - 25 -

II. AGRICULTURE

A. Background

1. The economy of the 'Kivuregion is predominantly agricultural. More than 80 percent of the population live in the agricultural sector compared to 66 percent for Zaire as a whole. 1/ The diversity of soil and climate, resulting from the different altitudes in the region as a whole, have produced conditions highly favorable for a wide range of food and industrial crops. The region is an important producer of coffee, vegetables, sugar, and cotton. It is the sole producer of tea, cinchona and pyrethrum. It is also a major livestock breeding-area and its lakes have an enormous fishing potential.

2. Selected indices of agricultural production for Kivu and Zaire are presented in Table 11.1 below. In light of the unreliability of the data, all that can be inferred is that food production, particularly beans and maize, has grown at a much faster rate than population in the region,

Table II.l: RCivu - Selected Indices of Agriculture Production - 1981

Share of Total Production ProductionIndices Yields (Percentage) (1975 - 100) (tons/ha)

Foodcrops Kivu Zaire Kivu Zaire

Manioc 17 118 107 10.0 5.0 MXaize 14 184 114 1.0 0.7 Rice 28 161 104 0.8 0.8 Bananas 34 143 109 2.6 - Beans 27 212 113 0.8 0.5

Export Crops

Coffee 24 129 124 0.6 0.3 Tea 100 60 60 0.3 - Cinchona 100 60 60 0.1 -

Industrial Crops

Sugar Cane 28 79 80 59.0 67.0 Cotton 15 163 89 0.7 0.3

Sources: Department of Agriculture, Le Plan de Relance Agricole, 1982-84 (April 1982), Kivu - Regional Division of Agriculture and Bank of Zaire Annual Reports.

1/ Boutg and L. de Saint-Moulin. ?ersvectives dfmographiques Regionales 1975-1985, R4publique du Zaire, DOeartement du Plan. 1978. -26 - while in the country as a whole it has stayed substantiallybelow the population growth rate. Export crop production,except for coffee, appears to have declined since 1975. In the case of industrial crops, sugar cane production went down, while cotton production - particularly in the Maniecta sub-region - experienced a turn-around. The available information on yields suggests that, compared to the rest of Zaire, Rivu has a comparative advantage in the production of manioc, maize, cotton and coffee.

B. Types of Production Units

3. Kivu's production units can be classified into two categories: the traditional small family farms which account for almost all foodcrop production and the bulk of the export and industrial crops, and the large-scale agro-industrialplantations of coffee, tea, cinchona, and sugar.

4. The traditional sector in Kivu comprises about 680,000 farming units occupying a total area of about one million hectares. Farmaingsystems in Kivu are diverse reflecting adaptations by farmers to different conditions. The chief differentiatingfactors are altitude, because it largely determines and correlates highly with rainfall and temperature;soil; population density (partly a variable dependent on altitude and soil, but also partly independent of them). Altitude is the most important of these differentiating factors for Kivu farming systems. The Eastern part of Kivu with high altitudes and better soils has a beans/tubers/perennialcrop production structure while the western part with low altitude and poorer soils has a cotton/rice/maize economy. Information on location-specific farming systems in Kivu is particularly limited. However, a recent World Bank study on the Great Lakes Highlands Farming Systems, encompassing Kivu, Rwanda and Burundi, has started to fill our knowledge gap. 2 / The discussion which follows sum- marizes the main findings of the studtv

5. Highlands agriculturalzones are characterizedby high population density ranging from 45 inhabitantsper square kilometer in the Mitumba Range to a high of 179 in the Volcanic Highlands (Table II.2) compared to only 6 for the Maniema sub-region of Kivu situated in the low altitude area of western Kivu. In some areas, i.e., Kivu Lakeshore and Volcanic Highlands, agricultural use of land has reached the point where there is little fallow land or grazing land left. In the other areas, natural fallow is still practiced, the length of the fallow period depending on the availability of land. As population densities have increased, particularlywhere land is most scarce, farmers have turned to tubers as a starch source. Statistics show a consistent and continuous displacementof grains and legumes by tubers, which yield more starch per hectare. The mix of tubers depends on altitude, with sweet potatoes dominant, especially at middle altitudes of 1500-1800 m, partly replacing potatoes, which grow only above 1800 m, and with more and more manioc at lower altitudes and lower soil fertility. Legumes are the Highlands' principal source of protein and a major source of food energy, too. Today

2/ TWorldBank, 7aire/Rwanda/Burundi- Great Lakes Highlands Farming Systems Study. December 30, 1983, Preliminary version. .

TABLE 11.2. KIVU - llghlandsFarming Systems, by Altitude

1400 - 1800 m Above 1800 m

Kivu Maniema Volcanic Butembo Mltumba Lakeshore Kayna Slope Hlighlands Illglands Range

Area (km2) 2,200 400 26,400 1,450 3,500 12,400 Population (tHousand) 340 40 1,580 260 520 550 Popu:lationidensity 154 100 60 179 148 45

Land available per/farm (ha) 2.0 1.8 4.0 0.7 1.8 1.4 CroppLng intensity 1.0 0.84 0.45 2.0 1.0 1.0 lInergy(K cals) 3,574 4,109 6,876 2,264 4,144 4,171 percenltfrom: legumes 14 28 - 31 20 21 4 gralns 15 52 14 41 39 62 tubers 39 - 86 28 42 17 bananas 31 20 - - - -

Protein (g) 76 139 85 84 125 126 percent from: legumes 47 57 - 56 44 47 grains 17 40 21 28 33 44 tubers 28 - 79 16 22 9 bananas 7 3 - - - -

Fats (8) 14 27 15 11 23 20

Source: World Bank, Zaire-Rwanda-Burundi:Great Lakes Highlands Farming - System Study, December 30, 1983, Preliminaryverslon. - 28 - beans are dominant, except at altitudes over 1800 m -wherethey do not do well and have to be substituted by peas. Not only are beans indispensablefor a high-prctein diet on small Highland farms, but, as pressure on land has grown and fallows have shortened, they have become ever more important for the nitrogen they fix in the soil, making it possible to grow cereals and tubers.

6. Export crops make up less than 5 percent of the crop area, but they permit farmers to buy the goods they cannot produce and consequently to live above the bare margin of subsistence. Four crops account for virtually all of the Highlands' agricultural export: coffee for 84 percent, tea for 7 percent, clnchona for 7 percent and pyrethrum for 1 percent.

7. On the basis of altitude, soil and population, the authors of the Righlands study identified ten agricultural zones, six of which are relevant to the Eastern part of Kivu, where more than 70 percent of the region's population resides. Table II.2 shows the six zones by area and population and gives for each an approximate picture of agricultural output and land use. Unfortunately, there is no data to specify the more critical production input - labor. It is important to bear in mind, when interpreting the caloric and protein totals, for instance, that the models do not give a com- pleta picture of family enterprises,excluding as they do, livestock raising, wage employment, and gathering activities. It is also important to recognize that the figures on area-cultivated and yield are converted to show the pure-stand-equivalentof cultivationwhere, very frequently, different crops are inter-cropped,relay-cropped, or both.

8. The plantation sector that produced most of the tea, coffee, cinchona and pyrethrum during the colonial period has declined drastically since Independence. The sector has been severely affected by the political upheaval of the early 1960's, the zairianization/nationalization/retrocession easures of 1973-75, shortages of labor and other inputs (because of the exchange rate issue discussed below). About 400 plantations,half of which in the North-Kivu sub-region, were nationalized. Today there are about 100 plantationsin North Kivu with an average size of 200 hectares (150 planted) and an average labor force of 100. The sector accounts for about 15 percent of the coffee and 80 percent of the tea produced in North Kivu. Moreover, 20 percent of the cinchona acreage is controlled by plantations.

C. Livestock and Fishing

9. The Kivu region is a major livestock-breedingarea, particularly North-Kivu. In 1981, there were an estimated 245,000 head of cattle in North-Kivu, representing about 22 percent of the national herd, with more than 70 percent of the herd concentratedin the zones of Masisi and Rutshuru 3/ (Statistical Appendix, Table 2.3). There are two types of livestock exploitations: the traditional and the modern. About 85 percent of the cattle herd is held by traditionalfarmers and 15 percent is found on modern

3/ F. J. Chagnaud, Commercialisationdu b6tail et des viandes dans le Nord-Kivu (January 1982) - Consultantreport for FAO. - 29 -

ranches. Not much ls known about the evolution of the cattle herd in Kivu since Independence. The most stTiking development affecting the livestock sector in recent years has been the sevenfold increase in meat exports transported by air to Kinshasa and other cities between 1980-81 - from about 250 to 1800 tons.

10. According to a recent document of the Ministry of Agriculture,Kivu has 40-50 percent of the total fishing potential in Zaire4 / (Statistical Appendix, Table 2.4). However, the fishing catch has decreased substantially over the past twenty years. For example, prior to Independence,Lake Tanga- nyika provided about 30,000 tons of fish annually compared to only 16,000 tons in 1982. Total yearly catch for the entire region represents only about 10-15 percent of the potential.

D. Principal Constraintson Kivu Agriculture

11. Improved performance of the agricultural sector in Kivu is inhibi- ted by a set of complex and interrelated constraints namely: (i) deterioration of the transport network and equipment shortages; (ii) inappropriate priclng policies; (iii) weak institutional support, and (iv) suspicion of the private sector. In addition there are some Kivu-specific constraints, such as the land tenure problem and the impact of the liberalization of gold prospecting and trading on the agricultural labor force.

12. Transport. Given Kivu's remoteness, probably the most severe bottleneck to agriculturalgrowth in Kivu ls transportation. The long distances combined with an extremely deterioratedtransport infrastruture result in a spatially fragmented regional economy and constitute disincentives to produce. Many vital roads linking production areas to markets have fallen into disrepair, and roads connecting Xivu to the main ports of Kinshasa, Mombasa and Dar-es-Salaam have many sections which are substandard, resulting in long transit time, wastage and high transport costs. Inadequate transport facilities unduly lengthen the marketing period and account for substantiallosses, resulting in extremely hlgh marketing margins. Analysis of the consumer price structure for beans and potatoes (Statistical Appendix,Table 2.5) transportedby road and river from North-Kivu via Kisangani to Kinshasa indicates that marketing activities absorb between 85 and 94 percent of the retail price of these two commodities. The Kisangani-Kinshasalink of the marketing chain absorbs up to 60 percent of the final price for perishable products and between 20 and 30 percent for less perishable products. For llve- stock as well, inadequacy of transport links is a severe constraint. In early 1983 cattle owners were receiving bet-ween20 and 25 percent of the final price while 75-80 percent went to the various intermediaries(Statisti- cal Appendix, Table 2.6). Transport to East Africa ports typically takes L5 to 30 percent of the c.i.f. prices at East Africa ports of coffee, tea, cinchona and pyrethrum, although they all have high value per unit weight and bulk.

4/ Ministry of Agriculture,Evaluation du Plan de Relance Agricole 1982-84, October 1983. - 30 -

13. The lack of transport facilities lead not only to lover prices for Kivu producers but also to higher prices and/or unavailability of off-farm inputs and consumer goods, which further dampen the incentive to produce. For example, a bag of cement and a liter of palm oil cost respectivelyfour and three times more in Kivu than in Kinshasa. The potential impact of better transport infrastructureis highlightedby the boost which has been given to the vegetable and livestock subsectors in North-Kivu, by the upgrading of the Goma airstrip and by the resulting greater ease of access to the Kinshasa market. This is an example of what could happen on a wider scale.

14. Pricing. Problems related to pricing of agricultural products, particularlythe foreign exchange issue, have been an important factor behind the disappointing performance of Kivu agriculture. Until the September 1983 measures, which brought the official rate for the zaire to a more reallstic level and put in place a floating exchange rate system, the zaire had been grossly overvalued. For about nine months prior to the September 1983 changes, the spread between the parallel market rate and the official exchange rate of the zaire had widened substantially,with the ratio between the two being on the order of five to one compared to the two-to-one ratio which prevailed after the devaluation of July 1981. Given Kivu's output mix consisting of a large proportion of export crops and Lmport substitutes, the overvaluation of the zaire which prevailed until September 1983 resulted in lower domestic prices for agricultural exports and food imports, which depressed production levels below what they could have been. Moreover, In light of 'ivu's locatlon on the eastern frontier of Zaire where it borders Uganda, Rwanda, Burundi and across Lake Tanganyika, Tanzania, the overvaluation of the zaire resulted not only in lower production levels but also in smuggling of an increasing share of the reduced production.5/ This, in turn, led to lower amounts of foreign exchange going through the legal channels, as well as lower government revenue. For example, prior to the recent devaluatlon, Kivu coffee farmers were receiving the equivalent of USSO.60 per kg. (Z 12 per kg converted at the parallel rate of Z 30 - USSl.0), compared to the equivalent of US$1.16 and USSl.07, respectively, for Rwandese and Burundian coffee growers.6/ On the other hand, [ivu meat exported to Kinshasa had to compete with meat imported at the official exchange rate.

15. Support Services. The Government's inability to provide satisfactory support services is an important faccor behind the disappointingperform- ance of the agricultural sector in Kivu and Zaire. About a tenth oE the Ministry of Agriculture and Rural Development staff are deployed in Klvu (1,147 out of 11,374). Staff are represented ;. all administrativelevels: region, sub-region, zone, collectivities and localities, and at each level all three services (crops, livestock, rural development)are expected to be

5/ For an excellent discussion of the unde-ground economy in Zaire, particularly in the Eastern regions of Haut-Zaire and wivu, see Janet MacGaffey, 'How to Survtve and Become Rich Amidst Devastation - The Second Economy in Zaire', African Affairs, Vol. 83, '328, July 1983.

6/ WAorld3ank, Great Lakes Highlands Farming Systems, op. cit. pp. 21-Z2. - 31 -

represented. The recent reorganization of the Ministry of Agriculture cor- plements the former vertical organizational structure under which staff of each of the three services were vertically linked with Llttle or no horizontal coordination. Under the new system, there is a coordinator who oversees the activities of all three services at each level . There is general agreement that agricultural field staff in Xivu are unable to deliver services which would be of benefit to farmers7 /. Technical staff lack the motivation (because of the extremely low salaries), the technical competence, and the logistical support to reach farmers effectively. The seed multiplication centers, with the exception of the Luhotu CAPSA (Centre Agricole pour la Pro- duction de Semences Amelior6es)which has benefited from Canadian assistance, are not operational. To what extent the new organizationalset-up will improve the delivery of services will depend on whether complementary c-anges related to the sources of the problem - access to operating funds, higher pay for technical staff, improved traiaing, better technical packages and better organization -. are also made. Table 11.3 below gives for the regional head office the operating budget (not including salaries) for 1982.

Table II.3: Kivu - Operating Budget for AgriculturalField Services, 1982 (zaires)

Regional Office/Bukavu Budgeted expenditures Actual expenditures

Rural Development 82,400.00 64,283.25 Livestock & Animal Health 99,402.00 51,172.00 Crop production 97,340.00 40,658.00

Total 279,142.00 156,113.25

Source: Division de l'.griculture et D6veloppement Rural, Inspection Regionale/Kivu.

16. Agricultural technical staff are expected to deal with all aspects of the farmer's economic environment (see Annex III), but in practice they spend a great deal.of their time gathering statistics for administrativere- ports (despite the fact that they have no methodology and resources through which to obtain valid figures) and enforcing administrative regulations of production. Even though since 1981 agricultural prices have been progressively liberalized, there still remain quite a number of constraints on the behavior of farmers. A recent report issued by the Governor of Riwvu on the agriculturalcampaign of 1981-82 notes that:

-in the constant concern to ensure qualitative and quantitative food self-sufficiencyfor the people through domestic production, the Executive Council has assigned each Region a foodcrop production quota. This assignmeatof quotas starts with the 1981-82 crop

7/ Even the Government acknowledges the problem. Department of Agriculture,Le Plan de Relance Agricole (1982-84)pp. 4-5. - 32 -

year and thus establishes our country's new agricultural policy. According to letter No. 01457/BCE/AGRIDAL/81of May 15, 1981, the system fixes for each zone three basic parameters for action with respect to each crop selected in the Region: number of planters to be lnvolved, area to be sown, and production to be expected from that area, depending on which farming practice or practices are common in each Region. The Kivu Region has received instructions to intensify the cultivation of groundnuts, beans, maize, cassava and paddy." 8/

17. Given the constraints outlined above, the emphasis on enforcing regulations provides extension agents with opportunities for extortion of funds from farmers. The available evidence suggests that support services as presently organized in Kivu probably have a negative impact on agriculturalproduction. The ineffectivenessof extension services is compounded by additional coercive measures taken by the local authorities such as local taxes un- related to identifiable benefits and 'forced labor- on the chiefs' plots. For example, a recent study reported that in recent years Buloho women traders of cassava and peanuts were subjected to three separate -tolls' in a distance of about 10 km as they walked on the road/footpath linting Maibano, Buloho's administrative center, to the Bulambika market. These tolls consisted of a tax of 50 makuta per basket of cassava and one zaire per basket of peanuts (imposed by the local collectivity's chief), another toll paid-in- kind (five to ten tubers of cassava and two glasses of peanuts) levied by a 'localitV official at a bridge, and a toll collected at the entrance of the market by the chief of another -localit64. 9 /

18. Two notable exceptions to the situation described above are the extension services provided to cattle farmers in North-Kivu and to cotton producers in Uvira (South Kivu) and Maniema. In both cases, the private sector is playing a predominant role. In the first case, the FAO-financed animal health project relies heavily on the Cattle Farmer Cooperative ACOGENOKI (Association Cooperative des Groupements d'Eleveurs du Nord-Kivu). This association, created in 1979, includes 33 groups totalling 5500 cattle farmers in North Kivu. A recent consultant report on the project found that

"the work of the cooperativemovement, which comprises 80 percent of the sub-region's cattle herders, is significant with respect to animal health. Despite the difficulties of obtaining foreign exchange, this association has succeeded in organizing the supply and distribution of veterinary medicine and equipment to

8/ Office of the Governor/Ktivu,Productions Vivrieres, Campagne 1981-1982 Bukavu, November 1982, p. 1.

9/ Historically these tolls were for the maintenance of the road and the bridge but local chiefs have since stopped using them for this purpose. For a case study of the traders' reaction to these levies see Catherine M. Newbury, Ebutumwa 3w'Emiogo: the tyranny of cassava - A women's tax revolt in Eastern Zaire," Canadian Journal of African Studies, Vol. 18, NTo. 1, 1984, pp. 35-54. - 33 -

rattle herder groups. It has also carried-out systematic vaccin- ation campaigns, thereby considerably reducing epidemics despite the irregular supply of vaccines produced in the laboratories of Lubumbashi and Kinshasa.- 10/

19. The second case is the program of the cotton companies which provides extension services for cotton producers iu the firms' areas of intervention. The World Bank Second Cotton Rehabilitation Proj.Pct included a component aimed at enhancing the effectiveness of this program through expanded numbers of extension workers, availability of vehicles, in-service training and supervision. According to a recent Bank supervision report, La Coton- niere and Estagrico, the two companies operating in Rivu, have reached the objectives concerning the extension workers with a mid-1983 ratio of farmer/ extension worker of about 140:1 (compared to an average of 350:1 in 1980). It was found that the companies' serious efforts to make extension services more effective were showiug positive,results. In the mission's view the results in the trial sectors of La CotonniAre have been very satisfactory probably due to the psychological effects of a regular presence of extension workers and due to more systematic training in cultivation methods. In areas where a conscious extension effort has been made, cotton fields appear, in general, more homogeneous and better kept than in other areas. The next logical step will be for the cotton extension agents to provide advice not only on cotton but also on other crops grown in rotation with cotton, in line with Government's policy. It should be noted, however, that these efforts can have greacer impact if the system of imposed cultivation, which is still being applied in the cotton-produciagzones, is phased out and replaced by a market-determined pricing mechanism.

20. Land Tenure. There are two aspects of land tenure in Kivu which act as disincentives to agricultural growth. First there is the problem of the cattle-richMasisi and Rutshuru areas where the attractivenessof cattle farming has prompted many outsiders to acquire land directly from the chiefs at the expense of the traditional settlers. 4gainst the backdrop of the colonial policy of encouraging settler plantations in Kivu, some 170,000 Rwandese were resettled in the region between 1937 and 1955.11/ A main objective of the resettlementprogram was to provide hired labor ror the coffee, tea, cinchona and pyrethrum plantations. According to the 1970 census, some 335,000 settlers were living in North-.Kivu. The number is much higher today and it is estimated that they represent 43 perceat and 25 percent of the population of Masisi and Rutshuru zones, respectively. Although these immigrants were the first to clear and cultivate the land starting some fifty years ago, the issue of their nationality has never been satisfactorilyset- t.ed. This has led to a great deal of insecurity of land tenure and tended to limit the initiative of the occupants. An indication of the importanceof the land tenure issue is the fact that more than 50 percent of legal cases in

10/ Chagnaud, F.J. op. cit.

I1/ For background information on this issue see Buc7alimwe Manano, Migrationsrwandaises vers la zone du Masisi (Kivu, Zaire): Prix d'une rationalisation, (I.S.?. - Bukavu), May 7, 1983;-and H. Carael, C. Tondeur and W. tWils, 'Le Xivu Montagneux: surpopulation, sous-nutrition,4rosion du sol", Les Cahiers du CEDAF No. 2-3, 1979. - 34 - the Goma court deal with land related problems.121 The other important aspect of the land tenure issue is the still uncertain legal status of the plantations which were zairianized and retrocededA13/ About 400 plantations and ranches were nationalized, of which 57 percent were in North-Kivu, 35 percent in South Kivu and 8 percent in Maniema. The continuing confusLon regarding ownership rights remains a serious constraint to a possible recovery of this important sub-sector.

21. Gold Prospecting and Trade. The liberalizationof gold prospecting and trade in November 1982 removed all barriers to entry into these activities and allowe' retention of 100 percent of foreign exchange earned through gold sales at the then parallel rate which was three to four times higher than the official rate. 14/ The increased competition brought out by the larger number of buyers has in turn led to a greater share of the higher zaire-denominatedprice of gold going to prospecting. Plantations relying on crops grown with the help of hired labor, e.g., coffee, tea, cinchona, and sugar, have been hit by the large-scale desertion of workers who found it more attractive to prospect for gold. At mid-year 1983 one gram of gold that took an average of one week to obtain was worth about Z 300 compared to the average monthly salary of Z 150 per mouth paid to plantation workers in Kivu. In many parts of 'Kivu- Walikale, Masisi, Beni, lwenga, Shabunda, Walungu, Pangi - digging for gold was replacing cash crops as a means of acquiring cash. The September 1983 drastic and courageous economic reforms undertaken by Zaire are designed to correct these serious distortions.

E. Investments in Kivu Agriculture

22. Despite its vast untapped agriculturalpotential, Kivu has so far beqefitted very little from the many agricultural projects - financed to a large extent by multilateraland bilateral aid agencies - which have been or are being carried out in Zaire. Table 11.4 below shows that of the Z 260 million allocated to the agricultural sector in the 1981-1983 Public Invest- ment Program, Kivu's share represented only Z 5.5 million or 2 percent.

12/ Katuala Kaba Kashala, 'Four un droit foncier realiste et une justice equitable dans le Word-Kivu", 20 mai 1982.

13/ For discussion of these zeasures, see World Bank, The Manufacturing Sector of Zaire (Report No. 2212-ZR), October 29, 1979, knnex III, pp. 95-113.

14/ For a discussion of this issue, see Tshilombo wa Nshimba, .tiberalisation dans le domaine des matieres precieuses et liquiditg mon4taire au Zaire: quelques r6flexions et recommandations,' Zaire-Afrique,No. 176, Juin-AoCt 1983, pp. 335-354. - 35 -

Until 1983, externally-financedagricultural projects in Kivu have included: FED tea projects in Butuhe, Kavu=u and Ngweshe, a FAO animal health project in North-Kivu, a CIDA (CanadianInternational Development Agency) commercialization pilot project in North Kivu and a USAID assisted legume program for the Mulungu research center in South-Kivu. The resources involved are not very large, and most of the projects are in North-Kivu. The Canadian- assisted commercialization project (CECOPANE)is serving as a basis for other projects financed by Canada in the North--ivu sub-region; the North-Kivu Livestock Project has been quite successful as explained earlier (para. 18). The Mulungu project is achieving its objectives of strengthening the research institute and developing appropriate technical packages for legume growing in Kivu. Implementationof the tea project by the Ministry of Agriculture has encountered a number of difficulties because of the unavailability of coun- terpart funds and management weaknesses; the decision has recently been taken to transfer the management of the project to a private consultant firm. In addition to the projects receiviag external financing, some. projects have been totally financed by the Government of Zaire: Uvira-Assistanceto Young Fishermen, Vitshumbi Fishery Cooperative, the Fizi Agricultural project and the Ruzizi Agro-pastoral project (since 1980 following the phase-out of Chinese assistance). In all cases the sums involved are rather small and the projects have suffered frow design problems and lack of financial, technical and managerial resources. With the exception of the Fizi Agri-ultural project, they have all been dropped from the updated 1983-1985 Public Investment Program which found them insufficiently promising to receive scarce and severely constrained budget resources. (Table 9.9 of the Statistical Appen- dix lists the projects in the 1983-85 PIP.)

Table I1.4: 1981-1983 PIP Allocation to the AgriculturalSector by Region (Millionsof zaires; 1980 prices)

Region Amount Percentage

;inshasa 23.3 8.9 Bas-Zaire 3.5 1.3 Bandundu 29.4 11.3 Equateur 45.0 17.3 Haut-Zaire 49.0 19.1 Kasai-Occidental 1.3 0.5 Kasai-Oriental 68.4 26.2 KIVU 5.5 2.1 Shaba 6.9 2.7 Multi-regional 27.5 10.6

Total 260.7 100.0

Source: Ministry of Planning. Plan Mobutu: Programme de Relance Economi- que 1981-83, Kinshasa, mars 1981. - 36 -

23. Besides the externally and Government-financedagricultural projects, there are some small projects financed and implemented by church groups and at least one by a private firm. Projects sponsored include, inter alia, the CEDERU project (Eglise du Christ, Baptist Community of Kivu) in the zone of Rutshuru with emphasis on community health, adult education and extension services; the soya program of the diocese of Bukavu; the extension program for cattle farmers of the Lushebere cattle farm in Nasisi (diocese of Goma), and the wheat project of the private firm MrDEMA in the Beni-Lubero zones. (The role of NGOs in Kivu is discussed in Chapter VI.)

24. Recent developments indicate a shift toward increased support to the development of agriculture in Kivu. Early in 1982 a committee called the 'Kivu Committee' - composed of Government and aid agency representatives- was created with the aim of coordinating development programs (mainly agriculture-related)in Kivu. In April 1983, the Ministry of Agriculture sent a large mission to Kivu with a view to proposing a program of action in two or three phases over a period of 10-15 years and aimed at removing the main constraints to agricultural growth in North-Kivu. In August 1983, the Ministry issued the mission's report which analyzes agricultureand livestock in North Kivu and makes a number of project proposals, dealing with inter alia, concentration of livestock production at high and medium altitudes, agricultural intensification in densely-populated areas, an agricultural development plan for low-altitude zones (e.g., Walikale, Lubero), and institutional support programs (such as marketing and credit cooperatives). The World Bank's Second Cotton Rehabilitation Program (with CCCE co-financing)which includes the cotton-producingareas of Uvira (South-Kivu) and Maniema became effective in 1983. Other agricultural projects are in various stages of preparation:

(i) In 1982, ttieFAO prepared a study of the coffee sub-sector of Zaire and made proposals for assistance aimed at improving the quality and yield of coffee. Kivu stands to benefit from such a project.15/

(ii) CIDA is cormitted to a long-term intervention in the area -- 12-15 year time-frame - and to an integrated approach. Pro- jects expected to be financed include: a slaughterhousein Goma with ACOGENOKI participation; construction and maintenance of transport infrastructure (maintenance of the Beni-Lubero-Goma road; upgrading of the Butembo airport; and construction of the Goma-Masisi-Walikale road); marketing in close cooperation with a cooperative of private traders in the Butembo area; and an integrated rural development project in the zone of Beni and Lubero - Projet de D4veloppement Agricole du Nord-Est du Zaire (DANE). The first five-year phase of the DANEproject will cost USS15 million and Z 10 million.16/

(iii) The World Bank may assist a project aimed at increasing livestock, fisheries and agriculture productions in the North Kivu sub-region.

15/ FAO, Zaire - Le Secteur Cafe, Propositions de D6velopDement Mission d'Identification,Harch 22, 1982.

16/ CIDA, Projet de D4veloopementAgricole du Nord-Est du Zaire, Etude de definition, juillet 1982. - 37 -

(iv) The African Development Bank will be financing the rehabilitation and expansion of the Kiliba Sugar Refinery- Cost of the project is estimated at Z 100.4 million (pre-devaluation 1983 prices) of which Z 1 million represents Local financing and Z 99.4 million external financing.

(v) A number of fishery projects are being considered: a French- assisted project for Lake Kivu slated to start in 1984, and possible FED intervention in support of fishing in Lake Vitshumbi (ex-ldi Imin) and Lake Tanganyika.

F. Conclusions

25. Agaiast the backdrop of Kivu's substantial agricultural potential, the performance of the sector over the last decade has been very disappointing. Although foodcrop production has grown at a faster rate than population, export and industrial crop production have experienced significant declines. The available evidence suggests that while external factors, such as the disruptions caused by the insurgency of the 1960s and the sharp increase in petroleum prices, have adversely affected agricultural growth in Kivu, domestic policy deficiencies and administrativeconstraints have also been important factors. The analysis presented in this chapter suggests that recovery of agriculture in Kivu will in the first instance depend on rigorous implementationof the policy reforms adopted by the Government in September 1983 in the fiscal, foreign exchange, pricing and monetary areas. These reforms are intended to improve the economic environment for all economic agents, including farmers. Given Kivu's output mix of agricultural exports and import substitutes,the new foreign exchange regime, which is expected to ensure a more realistic exchange rate for the zaire, is particularlysignlfi- cant. In addition, areas which require priority attention include:

ii) the adequacy of key transport links between agricultural areas and inter- and intra-regionalmarkets CCh. IV, paras. 5-6);

(ii) the land ownership problem affecting the Masisi and Rutshuru zone settlers, on the one hand, and the nationalized plantations on the other;

(iii) the system of *imposed cultivation"and the arbitrary taxing of producers and traders by local authorities;and

(iv) research aimed at developing the appropriate technical packages for Highland farmers in Kivu - more than 70 percent of the region's farm population. - 38 -

III. INDUSTRY

A. Background

1. In terms of output and income, industrial ac'Lvity - mining and manufacturing- is relatively unimportant in Kivu. While mining generated a sizeable 11 percent of Kivu's GDP in 1970, it has declined sharply since then; manufacturingmay have slightly exceeded its 1970 GDP share of 2 percent. The industrial sector's contribution is also small at the national level, where around 3 percent of manufacturing output and 4 percent of mining output originated in Kivu (Table I11.1). Yet, the region's climate and geographical features allow a wide range of crops to be grown and favor the developmentof livestock, fisheries, and forestry. Manufacturing,which has played a significant role in processing the products from these activities for domestic use and export, is an important source of wage employment.

Table 111.1: Selected Data for Manufacturingand Mining in Kivu and Zaire, 1979

Kivu as a Kivu Zaire % of total

Manufacturing

Number of establishments 84 1142 7.4 Output (million zaires) 120 4142 2.9 Number of employees 7609 12075 6.3 Wages and salaries (million zaires) 12 424 2.7 dining

Number of establishments 5 31 16.1 Output (million zaires) 35 827 4.2 Number of employees 16464 52494 31.4 Wages and salaries (million zaires) 25 113 22.1

Source: Institut National de la Statistique- Recensement des Entreprises, 1979. July 1983. _ 39 -

2. The 1979 census of enterprises identified 209 establishments(with 5 or more workers) in the Kivu region, of which 84 (40 percent) were engaged in manufacturingand 5 in mining operations (Table III.2). 1/

Table III.2: Selected Data for Production Sectors in Kivu, 1979

Number of Output Number of Wages and Establishments (Mill. Z) Employees Salaries (Thousand) (Mill. Z)

Agriculture 120 87.8 31.2 21.3 (Z of total) (11.6) (19.2) (23.8) (20.0)

Mining 5 34.5 16.5 25.4 (% of total) (16.1) (4.2) (31.4) (22.1)

Manufacturing a/ 84 120.3 7.6 11.6 (% of total)- (7.4) (2.9) (6.3) (2.7)

Total 209 242.6 55.3 58.3

a/ Excludes coffee and tea prortessingwhich is classified under agriculture.

Source: Institut National de la Statistique,Recensement des Entreprises, 1979, July 1983.

The manufacturingsector has extremely close ties with agriculture;with few exceptioas, manufacturing operations consist of processing locally grown crops, mostly only to seml-finished stage. Three-quarters of manufacturing activity consists of food processing,in whi^h 47 establishmentsare engaged, most of them grain-mills, but including a lazZe sugar refinery. There are also 12 sawmills and timber processing plants. Other activities Laclude the production of cinchona and of papaene (an enzyme derived from papaya), a brewery and soft drinks plant, three textile companies, and a large number of coffee and tea processing plants which in the census have been classified as agriculturalenterprises (StatisticalAppendix, Table 3.3). The most important mining enterprise is Societe Miniere et Industrielle du Kivu (SOMINKI), which extracts mainly cassiterite and gold in various sites in Western Kivu. The Liberalizationof gold mLning in 1982 has led to an increase La the operations of individual gold prospectors, where output is now thought to be approaching that of SOMINKI.

1/ iXostof the information provided here ls based on the preliminary results of the 1979 census of enterprises, and should be interpreted with caution. The census covers establishments with 5 and more workers in agriculture, mining and manufacturing and that were in operation in 1979. The census is thought to have omitted a significant number of small enterprises. - 40 -

3. Only two industrialoperatioas are "very large-, i.e. with 500 or more workers: SOMINKI, which at the time of the census employed about 16,000 people, and the Kiliba sugar refinery in Uvira (StatisticalAppendix, Table 3.4). 2/ The number of 'small" industries - 50 in a region with 4.5 million Lnha5itants - has probably been underrecorded.

4. Together, mining and manufacturing provided 60 percent of total wage employment in Kivu, about two-thirds of it in the mines (Table III.3). In manufacturing,most of the jobs were in food processing (68 percent) and in large enterprises (59 percent). Agriculture, mining and manufacturing together employed 228 expatriates half of whom (110) worked for SOMINKI and 62 in manufacturing.

Table III.3: Number of Employees by Sector and Size of Enterprises in Kivu

Small Hedium Large Very Large Total Expats. (5-49) (50-99) (100-499) (500 or more)

Agriculture 4026 1525 10222 15472 31245 56 Mining 99 56 - 16309 16464 110 Manufacturing 1941 1153 3872 643 7609 62

Total 6066 2734 14094 32424 55318 228

Source: Inseitut National de la Statistique, Recensement des Entreprises, 1979, July 1983.

5. Much of Kivu's industrial activity is centered in and around Bukavu. The 5 zones, comprising Bukavu and surroundings, account for 38 industrial establishments,including PHARMAKINA and BRALIMA (the brewery), out of a total of 87 (StatisticalAppendix, Table 3.5). SOMINKI, the largest enterprise, is in the Maniema sub-region. The sugar refinery, a cotton ginnery and several grain mills are located in South Kivu. Goma, in North Kiwvu, which is arguably the largest and most dynamlc towa in the whole region, is largely a commercialcenter and counts few Lndustrialestablishments.

6. All information points to a significant drop in industrialoutput in the region. For the whole of Zaire, manufacturing output fell by 27 percent bet-ween1972-74 and 1981, and Lt would appear that the trend in Kivu has been similar. The number of enterprises in operation has declined considerably and many have experienceda decrease In capacity utilization.

2/ The census classifiesenterprises by size as follows: small : 5-49 workers medium : 50-99 workers large : 100-499 workers very large : 500 or more workers - 41 -

B. Review of Principal Industrial Activities

7. The following review of developments and problems in Kivu's main industries will help to identify main constraints to Industrial development in Kivu.

8. The most important mining ente~prise in Klvu Is SOMINKI, a joint venture of the government of Zaire (28 percent) and COGEMIN (72 percent) of the Belgo-FrenchEmpain Group. The firm produces mainly cassiteriteand gold but also wolframite, columbo-tantaliteand monazite. SOMINKI's production has declined steadily during the 1970s but has stabilized in recent years. Output has dropped from 5000 units of production (SOMINKI uses for purposes of cost analysis the concept of unit of production in which one kg of gold is the equivalent of one ton of the other minerals) in 1977 to 3,400 in 1980 through 1982. Current output represents only 44 percent of the level in 1968.

Table III.4: Production of SOMINKI, 1977-82 (Units of production)a/

1968 1977 1978 i979 1980 1981 1982

Gold (Kg) 1337 553 472 476 548 586 Cassiterite 6037 4060 3490 2856 2593 2635 Wolframite. 142 317 276 210 134 89 NA Columbo tantalite 45 83 48 48 72 44 Monazite - 94 77 90 51 35

Total 7561 5107 4363 3680 3398 3389 3351 a/ One kg of gold is equivalent to one ton of the other minerals.

Source: SOMINMI.

There are many reasons for the downward trend. Ore grades have been declining, and the gradual exhaustion of alluvial deposits requires exploitation of less accessible primary deposits at higher cost. Operations are also severely hampered by transport difficulties caused by a poorly-maintained road network and frequent fuel shortages. These result in long delays, irregular supply of inputs and increased wear and tear on- the vehicle fleet. The company has been forced to incur considerable expense on maintaining public roads, amounting to Z 1.8 million in 1982. 3/ Moreover, it takes 6 months to move the cassiterite from the mine to Matadi, from where it is shipped to its final destination. If the pipeline of inputs is also taken into account, a value equal to around half the company's turnover Is tied up in transit. Recently, cassiteritehas been flown to Matadi on a trial basis and this is expected to continue assuming sufficient air freight capacity.

3/ The roads have been principally in the zones of Bagira, Ibanda, Kabare, Kalehe and Walungu. - 42 -

9. SOMINKI is concerned about the fall in its labor force which currently numbers 12,500 compared to 17,000 when the company took over. Since restrictions on the prospecting and sale of artisanal gold were lifted in late 1982, workers have been leaving at the rate of 200 per month. The exodus of miners is accompanied by an increase in the theft of mining tools. Hechanizationof operations is limited by the nature of the deposits as well as by the lack of skilled operators.

10. Following the liberalization of gold trade in November 1982, SOMINKI established 7 offices to purchase gold which it sold to SOZACOM at a price based on the then parallel market exchange rate, while it was receiving only about a fifth of that for the gold it was mining. The exchange rate issue was a crucial one for SOMINKI's profitability in view of its sharply rising local costs - unit costs rose by 72. percent in 1981. In 1982 the outlay on wages and salaries was up by 20 percent for a labor force whlch, by the end of the year, was about 15 percent smaller. Investment decisions, notably that regarding the opening up of new gold deposits, hinged on the exchange rate. The company stands to benefit from the recent adoption of a market-determinedforeign exchange system.

11. Coffee Processing.4/ More than a fifth of Zaire's coffee crop is grown in Kivu. In 1979, the region had 85 registered coffee treatment plants, the majority of them in North Kivu. This proliferacionof processing -operations had been encouraged by the region's proximity to Rwanda and Burundi and the opportunity this offered to obtain scarce foreign exchange through legal or illegal coffee exports. The number of processors was sharply reduced following the introductionby the Government of strict conditions on coffee trading and treatment, as well as by the reluctance of Rwanda and Burundi to accept any but high quality coffee, as both countries have already been producing coffee in excess of their ICO quota. The smaller plantations,in particular, have suffered from labor shortages and a lack of imported inputs, which led to several of them being abandoned.

12. Tea Processing. Kivw is the only region in Zaire growing tea, most it for export. Production has been halved over the past decade and is now down to just over 3,000 tons. Of the 25 processing plants that were at one stage operating, about 10 are still working, and these at only a fraction of their capacity. Following zairianizationseveral plants were abandoned, and many suffered from the combination of low prices and the inability to maintain or replace equipment. Currently, the overriding constraint is the shortage and irregular supply of fuel, which has forced some firms to close down. Interruptions in the treatment process, caused by fuel scarcity, also affect the quality of the tea and thereby its exportability.

13. Grain Milling. In the 1979 census, grain milling (mostly rice mills) was the principal manufacturingactivity for about 40 percent of the total number of industrial establishments, as well as of manufacturing output. The number of mills was less than half the 70 that were registered in 1975, and is thought to have fallen still further since then. 5/ The Maniema sub-region,a traditional rice-exportingarea, can no longer produce enough to meet local demand. SOMINCI reports that it must now buy some of

4/ Includes dryiag, cleaning and grading of coffee beans.

5/ See -Rapport de la Division R6gionale de I'Economie et de l'Industrie, 1975. This number may include mills employing less than 5 vorkers, which are not covered by the 1979 census. - 43 -

the rice needed for its workers from the Equateur region. Some mills have been abandoned because of difficulties in obtaining spare parts and fuel, while others have been forced to close down due to a lack of grain. Irrlgated rice schemes have suffered from the unavailability of labor and poor management (e.g., the Ruzizi project). There are signs of an upturn, however. Last year SOFIDE approved three rice mill projects in Maniema and received requests for another three.

14. Sugar Refinery. The 'Sucrerie de Kiliba" (50 percent Government and 50 percent foreign-owned)is located in the Ruzizi valley in South Kivu, and has approximately2000 ha (out of a total of 6000 ha) of cane sugar under cultivation. Output of the refinery, which has a technical capacity of 24,000 tons of sugar, has dropped from over 18,000 tons in 1975 to about 11,000 tons in 1981. The underutilizationof capacity, and the fall in output, are due to factors affecting the growing as well as the processing of sugar cane. Worn-out and poorly-maintained equipment, the result of a lack of foreign exchange for spare parts and replacement of machinery, limits output of the refinery and of mechanized operations in the field. Although the company gave preference to customers who paid partly in foreign exchange, it was still unable to meet its import requirements. Since the price of sugar was only decontrolled in January 1983, the company could not afford to buy foreign exchange in the parallel market. A key problem on the plantationwas the labor shortage, which had been exacerbated by the liberalization of gold prospecting and trading.

15. Quinine. In Zaire, cinchona from which quinine is derived is grown only in Kivu on a few large, mostly foreign-owned,plantations and a multitude of smaller local holdlngs. Much of lt ls exported as bark, but one enterprise, Pharmakina, exports quinlne ln semi-processed form. Pharmakina -works at full capacity (3 shifts) using mainly bark from its own plantation, supplemented to the extent necessary by purchases from local growers. Many small growers appear to neglect thelr plantatlons due to a lack of financial incentives. First, export earnings from bark were in part converted at the official exchange rate whereas many inputs for growers had to be purchased at the parallel rate. Secondly, transport costs are high. Exporters find it economical to fly bark directly to Europe, but the airfreight cost absorbs a third of the c.i.f. price. Finally, the Government has banned exports of bark with a Quinine content (QAA) of less than 5 percent, though bark con- taining as little as 3 percent QAA is traded on the world market. This res- triction hurts small growers in particular, as they often cannot afford to wait the seven years It takes for the bark to reach the 5 percent minimum. Some of the younger bark is smuggled to R-wandaand a limited quantity can be sold to Pharmakina at unattractiveprices for processing. The recent establishment of a processing plant in Rwanda, across lake Uivu, has induced opportunities for smuggling, but the Zairian Planters Association strongly supports the idea of setting up a second processing facility in Kivu.

16. Brevery. BRALI.4Ais currently producing about 1.5 million bottles of beer a month, or less than 40 percent of its technical capacity of 4 million bottles.6/ Taking into account the state of its plant and machinery, it could probibly achieve an output of 2.5 to 3 million bottles, were lt not for the lack and irregular supply of inputs, notably bottles, caused by botn

6/ The company also operates a soft drinks factory. - 44 - transport diffLcultLes and insufficient foreign exchange. Because of the latter it has been exporting to Rwanda and Burundi, even though it cannot meet local demand. Bralima had stopped distribution through its normal channels in favor of selling to those who could pay partly ln foreign exchange. However, when the Covernment allowed the company to charge a "prLme conventionelle'of Z 23 per case (12 bottles), the additional revenue generated enabled Bralsia to purchase forelgn exchange from the "Mining Recovery Fund' at the parallel rate, and at the same time regaln control over its distributionnetwork. This premium did not meet the import demand asso- clated wlth a rehabillitationof machinery and equipment which was badly run down following zairianlzation. The Governmentwants Brallms to revlve an old malt factory to reduce import needs. However, the area suitable for growing barley Is 500 km away and transport costs are thought to make such a project uneconomlcal.

17. Cotton GLnning. While ONAFITEX was supposed to supervise seven cotton gLnneries ln Kivu ln 1979, only 2 were recorded ln the census. The other five had presumably closed down. One of the two in operation, the ESTAGRICO ginnery in Uvlra, was working at less than half its capacity in 1982, unable to obtain enough cotton. Farmers are obliged to grow cotton on part of thelr land but are reluctant to do so because of low returns relative to other crops. Estimated returns per hectare were: cotton - Z 500, groundnuts - Z 2000, cassava - Z 3000, and rice - Z 6000. 7/ Other constraints on ginning lnclude the inabllity to maintain equipment due to lack of spare parts (2 out of 4 glns at ESTAGRICOare out of order), unrellable sources of power, and great dlfficultiesIn moving cotton from farm to factory.

18. Other Industries. The scarclty of spare parts and fuel has been the overriding constraint for sawmills, haltiLg logging operations and che transport of logs and sawn timber. Of the 20 sawmills operating in 1975 only a few are belleved to be still working. Other manufacturing actlvities that have been stopped in recent years lnclude the pyrethrum processlng plant in Gona due to a lack of pyrechrum; varlous soap factories which were unable to import caustic soda; and an alumLnium household utensil plant in Bukavu, which ran out of imported raw materials. Although a 60,000 ton cement plant at Katana has been closed since the civil strife of the mid-1960's, plans are underway to reopen lt.

C. Principal Constraints on Industry

19. There ls for the ioiuent no coherent pollcy for the development of the industrial sector in Zaire. An underlying constralat of the sector in Kivu is the relatively low income level, roughly estimated at half that of the country as a whole, which severely limits local demand for industrial production. In addition, the revLew of the performance and problems of various branches of industry in the region points to a number of common constraLnts that are outlined below.

20. Lack of Raw Materials. As manufacturing activity in ;ivu consists in large measure of processing locally grown crops, lts fortunes are closely tied up -withthose of the agricultural sector. The steady decline in agricultural output over the past 20 years and, with it, the failure of

7/ See Rapport de la Division Regionale de l'Agriculture-,1979. - 45 - agriculture to meet industries' raw material requireiients share the responsibility for the poor performance of manufacturing. Particularly affected by the shortage of local inputs have been the grain mills, the sugar industry and the cotton gins. While some of the constraiats on agriculture - inadequate transport facilities, foreign exchange and labor shortages - are also responsible for the depressed state of the manufacturing industry, other factors, specific ro agriculture,have contributed as well, including serious weaknesses in the institutionalaud policy support for farming.

21. Foreign Exchange Constraint. Throughout the 1970s the inability to satisfy import requirements has affected virtually all industries in Kivu. It directly limited productionlevels and led to inadequateand delayed maintenance and replacement of plant and equipment, which created a situation in which many enterprises are badly in need of rehabilitation (e.g., brewery, sugar refinery, SOMINKI, cotton ginnery). Prior to the adoption of the September 1983 measures, firms had supplemented their limited foreign exchange allocations,obtained at the official exchange 'rate,by purchases on the parallel market or by engaging in some export activity which allowed then to retain part of their export earnings (e.g., coffee).

22. Credit. Throughout Zaire, enterprises face serious liquidity problems. Factors such as the Government's demonetizationmeasure of December 1979, the import deposit requirements, and the need to finance large stocks of goods in transit, have put many businesses under great financial strain. The private sector's recourse to bank credit has been restricted by the overall limit on credit expansion, by the public sector's large borrowing requirement, and by the sectoral ceilings imposed by the Bank of Zaire on comm-rcial bank lending. There are no quota or ceilings by region. In Xivu the regional branches of the four commercial banks - Banque Commerciale du Zaire (BCZ), Banque de Kinshasa (BK), Banque du Peuple (BP), and Union Zairoise de Baaques (UZB) - refer most decisions on loan applications (those in excess of about Z 20,000 to their head offices in Kinshasa. Those firms producing for the domestic market may suffer more from lack of working capital than exporters, who appear to receive priority from their banks. SOFIDE is the only financial institution providing term finance in Kivw. However, its operations are limited by financial and staff constraints. SOFIDE's total lending in Kivu amounted to Z 23.5 million for 20 projects by the end of 1982. Almost two-thirds of the loans are for less than Z 1 million with the majority of these under Z 0.5 million.

23. Energy. Although Xivu is relatively well-endowedwith energy resources - wood, hydro power potential, gas methane - the inadequate supply of electricity and the expensive and unreliable supply of petroleum products have conwtituteda severe bottleneck to the developmentof industrial activities. SNEL, the national electricity company, owns and operates an hydroelectric station, Ruzizi I, at the outlet of Lake KLvu. Ruzizi which has a capacity of 95 percent of SNEEL'sgenerating capacity in Kivu serves Bukavu, Uvira and also exports electricity to Burundi and Rwanda. SLEL also operates small thermal plants in Gona, Kindu, Kasongo and Butembo. ElectricitTy supply has been unreliable due to the shortage of diesel oil and the lack of maintenance of the plant and transmissionand distributionsystems. Private firms and missions must finance their own generating s7stems, which are reliable but exnensive. In Kivu, private generation of electricity represen s 37 percent of the total, compared to only 8 percent for the country as a whole. A number of planned projects are addressing issues and problems of the electricity sub-sector in Kivu. The sub-sector stands to benefit from (i) the joint - 46 - hydroelectric power venture, Ruzizi II, which will be undertaken by Rwanda, Burundi and Zaire with IDA assistance; (ii) the 110 kV transmission line from Katana to Goza, and the upgrading of the 70 kV line from Ruzizi I to Katana to 110 k, being financed and con3tructed by the Yugoslavs; and (iii) the rehabilitation of the Ruzizi I hydroelectric plant, the rehabilitation of the distribution networks in Bukavu, Goma and Uvira, the construction of transmissionLines in the Bukavtw,Goma, Katana and Uvira areas and possibly the construction of a hydroelectric plant between Butembo and Beni, expected to be assisted by IDA.

24. Much more constraining has been the acute shortage of petroleum products which has caused cutbacks in production and in some instances permanent closures, either directly by interfering with the running of plants or indirectly by limiting transport. The mines, the tea and timber industries have felt the shortage most acutely. The shortage and irregular supply of fuel Ls a key factor behind the closing of tea processing plants over the last decade (15 out of total of 25). The reactivation of the Katana cement works, closed since the mid-1960's, remains contingent on access to a reliable source of energy. The acute shortage of foreign exchange, combined with the overvaluation of the zaire thoughout the 1970s has led to the severe nationwide scarcity of petroleum products, the situation in Kivu has been exacerbated by the following factors:

(i} dependence on transport routes crossing other countries (North Kivu is supplied from Kenya via Uganda and South Kivu from Dar es Salaam via Kigoima), which increases the vulnerability to interruptions in supplies, e.g., during the hostilities between Uganda and Tanzania in 1978-79, shutdown of the Kenya's refinery in 1Q82, etc;

(ii) limited storage capacity, equivalent to 1000 m3 out of a total of 190,000 m3 for Zaire, less than one percent - the lowest capacity of any region; and

(iii) Petro-Zaire import monopoly,. and the formula used to determine retail prices of petroleum products have led to a strong bias toward supplying Kivu with much less than the planned amount. The price structure of petroleum products incorporates the higher foreign exchange cost of petroleum products coming from Mombasa and Dar-es- Salaam. This provides a powerful incentive to Petro-Zaire to underfulfill the quota for Kivu. For example, in 1981, actual sup- pLy for Zaire represented95 perceat of "planned supply' but in the case of Kivu the percentage was only 50 percent. It was estimated that as much as 40 percent of the petroleum consumed in Kivu was bought by private iadividuals and firms with foreign exchange obtained at the parallel exchange rate. Prior to the September 1983 increases in fuel prices and the adoption of a market- determined foreign exchange rate, the large discrepancy between black market and official fuel prices (the former were as high as six times the latter) illustrated the extent of the scarcity of petroleum products in Uivu. In light of 'Kivu'sremoteness from markets and the importance of insuring transport services at reasonable cost, regular supply of petroleum products. deserves the highest priority. There are large quantities of methane dissolved in the lower depths of Lake Kivu, which is sharel with Rwanda. The - 47 -

methane could prove a partial substitute for imported oil and/or electricity. The problem of fuel scarcity is unlikely to be resolved satisfactorily without greater reliance on the market mechanism through the removal of control over fuel prices and the lifting of restrictions on the import of fuel products. The September 1983 increases in fuel prices are an encouraging move in this direction.

25. AdministrativeConstraints. Industries in Zaire have to work within an intricate system of fiscal and administrativeregulations and controls, the Implementation of which is highly centralized. This makes operations costlier, causes extensive delays, and creates opportunities for administrative discretion that tend to encourage inefficiency. The many cumbersome formalities make heavy demands on the scarce administrative resources of both Government and enterprises. In Kivu the problem is aggravated, given the high degree of administrativecentralization, by the long distance from Kin- shasa and the virtual non-functioning of the post and telecommunications system. For example, decisions regarding the issuance of export and import licenses must be referred io Kinshasa although there is a regional branch of the Bank of Zaire in Bukavu; the distribution of ICO quota stamps is determined in ginshasa. A simplification of the tax system also appears highly desirable, considering the multitude of taxes, duties and levies that can be Imposed on firms by the Central, regional and urban authorities. The retail price of beer for example includes no fewer than seven different taxes and levies (Statisticalkppendix, Table 3.6).

D. Promotion of Small-Scale Enterprises

26. Of the 87 Uivu industrial establishments included in the 1979 census of enterprises, about 50 were classified as small enterprises (between 5 and 49 workers). As would be expected, these firms were mainly involved in the production of basic consumer goods, e.g., food products, beverages and tobacco, textiles and garments, leather products, paper and printing, rubber and plastic products, fabricated metal products, etc.

27. Much of the Government'scurrent effort to assist small enterprises is focused on the Klivuregion. For many years, the Organization for the Pro- motion of Small Enterprises (OPEZ), established in 1973, was the principal vehicle through which small firms received support, though lack of funds had considerablyreduced its impact.

28. In 1981, a report by an official working party, set up to look into the problems of small-scale enterprises (SSEs), underlined the need for urgent action. 8/ Soon afterwards a SSE project was initiated by UNDP/UNIDO and A&NEZA. The-project,limited in scope and of an experimentalnature, com- bines several forms of assistance in a regional context. Kivu was selected as the first region for various reasons, including its relatively dense population, the presence of an enterpreneurial spirit, an active cooperative movement, and the existence of a number of institutions whose work is relevant to SSEs.

29. The project, which is supported by a $2.37 million UJNDPgrant over the 1982-84 period, has several components. At the regional level it aims at

8/ The working group was chaired by the Minister of National Economy and Industry and included representativesfrom the Ministry of Planning, the Central 3ank, SOFIDE, and'NEZA, and received assistance from UNIDO. - 48 -

(1) the establishment of a pilot mechanical workshop in Bukavu, (ii) coordinationof the work of regional organizations,public and private, (iii) strengthening the regional ANEZA branch, (iv) providin.gtechnical assistance to small enterprises, and (v) training staff from ANEZA and enterprises. Furthermore, in Kinshasa, the project created an SSE unit within ANEZA, as well as a central service organization which will eventually serve all regions.

30. SSEs in Kivu stand to benefit from a CIDA line of credit and a grant in the amount of $5 and $2.1 million, respectively, to SOFIDE in support of small and medium-sized agro-industrial firms for financing production, processing and marketing activities in Kivu and Raut-Zaire. At least 10 percent of the amount must be used for the support of small enterprises in the form of untied loans ranging from a minimum of $4,000 to a maximum of $100,000.

31. While the ANXEZA/UNIDOproject is still at an early stage and was affected by problems associated with Kivu's weak economy and infrastructure, it has already been notably successful in setting up the pilot workshop in Bukavu, establishing close cooperation with local training and research institutes, arranging finance for some small ventures from SOFIDE and COOPEC, and in organizing several training seminars.

F. Conclusions 32. Several conclusions are evident from the above review:

(i) The Kivu region offers considerable opportunities for the development of industry, given its favorable resource base, its enterprising population, its prospects for trade with members of the Great Lakes Economic Community (see Annex IV).

(ii) In view of the heavy dependence of Kivw's industry on agricultural inputs, the poor performance of the agricultural sector is a key factor behind the severe weakening of the regLon's industrial sector.

(iiL) Compared to firms operating in Kinshasa, industries in Kivu are more expensive to operate because firms incur additional costs to solve the problems of power shortages and the inadequaciesof the transport, communicationsand water infrastructure.

(iv) Development of the industrial sector in Kivu has also been affected by the poor climate for the private sector, e.g., the unresolved issue of the ownership of agro-industriesnationalized in 1973-74; the extreme centralization in Kinshasa of all decision-making regarding industries in Kivu which exacerbates the problems of the repressive nature of economic administration; inadequate fiscal system; and limited credit.

(v) Most industrial firms in Kivu are small and mediun-sizedenterpri- ses involved in the processing of local materials, including agri- cuLtural products. The sub-sector is presently receiving limited technical and financial assistance from UNIDO and CIDA/SOFIDE. - 49 -

IV. TRANSPORT

A. Background

1. Possibly the most severe bottleneck to the economic development of Kivu is the poor state of the transport links within the region and with the rest of the country. 1/ Located in the easternmost part of Zaire, Kivu is remote from the main commercial centers and ports. Its situation necessi- tates many transshipmentsto arrive at the final destination with long and unpredictable transit times, excessive loss, pilferage and spoilage. For example, to ship cargo from Bukavu to Matadi via Kisangani requires traveling some 2,650 km and two transshipments. Access to the sea by way of Mombasa or Dar-es-Salaam is much shorter; the Bukavu-Dar-es-Salaamroute is about 60 percent the leagth of the Bukavu-Matadiroute via Kisangani and involves also two transshipmentsat Kalundu or Bujumbura and Kigoma; but administrativeand customs proceduresare cumbersomeand Tanzania Railways and the Dar-es-Salaam port suffer from dilapidated infrastructure and management problems. On the northern route via Uganda to Mombasa in Kenya, efficiency is also impaired by cumbersomeinternational transit procedures,as well as the general political instability in Uganda, which, over the past decade, has led to frequent interruptionsin traffic flows.

Table IV.l: Distance of Kivu's Main Cities to Natadi, Mombasa and Dar-es-SalaamPorts and Number of Transshipments

Route Distance (Km) Transshipments

Bukavu-Matadivia Kisangani 2,650 2 Bukavu-Dar-es-Salaam 1,610 2 Goma-Matadivia Kisangani 2,622 2 Goma-Mombasavia Ishasa 1,873 1 Beni-Matadivia Kisangani 2,766 2 Beni-Mombasa via Kasindi 1,791 1

Source: Administrative and road maps.

B. TransDort Infrastructure

2. Kivu's road network under the responsibilityof Office des Routes (OR) consists of 2893 km of national roads (inter-regional linkages), of which 408 km are paved, and 2639 km of priority regional roads (intra- regional linkages). klthough the network is adequate in length for current needs, it is in poor condition and many parts of it are substandard for handling traffic at reasonable cost. Many vital links of the network are

1/ For an historical perspective on Kivw's transport see Centre de Recherches Universitairesdu Kivu (CERUKI), "UTnproblame de transDort au Kivu - les Relations des Hautes Terres Orientales avec l'Exterieur Zairois et Etranger',mimeo, no date. - 50 - passable with great.difficultyin the rainy season. For example, in 1983 it took up to two weeks to travel the 400 km Goma-Beni road and the 100 km Beni-Kasindi stretch which links the zones of Beni and Lubero to Uganda. It takes about six months to transport cassiterite from the Maniema sub-region through Kisaugani to Matadi. The Bukavu-Walikale-Kisanganiroad is passable only up to Walikale. As a result there is practically no trade between South-Kivu and the complementary sub-region of Maniema, a surplus producer of palm oil, rice and manioc.

3. Lake, Rail and Air Transport. SNCZ is in charge of commercial navigatiou on Lakes Tanganyika and Kivu. However, the berthing facilities and the fl3et at the ports of Kalundu, Goma and Bukavu are in a state of disrepair. Combined with the lack of spare parts and the shortage of fuel, this has resulted in limited and very unreliable services. SNCZ is also in charge of the mixed river/rail link between Kisangani, Kindu and Shaba. Besides the Goma airport which accomodates wide-bodied jets, the air transport infrastructure consists of airports at Bukavu and Kindu which can htandle medium- range aircrafts and a number of grass strips (Beni, Butembo, Rutshuru, Uvira, etc.). Because of the lack of electricity in Goma, the airpor; cannot be used at night.

C. Determinantsof Transport Costs

4. Transport costs are very high due to the long distances travelled, the many transshipments, the poor condition of the road aetwork, the high cost of gasoline and the imbalance in the tonnage of products leading to back-hauls with large unused capacity. The deterioration of the transport network - whether the primary national and regional roads under the responsibility of the Office des Routes or the feeder roads which are supposed ro be maintained by the collectivities -- reflects insufficient recurrent resources for maintenance. In addition, the region's mountainous terrain makes road constructionand maintenanceunusually costly.

5. On average it takes a truck four days to travel the 800 km Butembo-Kisanganiroad. From Kisangani to Kinshasa the trip down river is supposed to last five to six days but the majority of the trips take longer. Because of the long transit times, spoilage of perishable products, such as potatoes, onions and carrots, is high. For example, the loss per shipment of potatoes can be as high as 70 perceat. Another factor which increases the cost of transport for agricultural products is the imbalance in the traffic flows. Examination of the 1980 Kisangaui-NorthKivu trade flows (Table IV.2) indicates flows of agricultural products out of Xivu in exchange for more expensive and less bulky finished products, e.g., beer, palm oil, cement, and textile products. During the period under consideration,an average of 21.3 tons of cargo was transported daily from Butembo to Kisangani compared to 18.3 tons in the other direction. 2/ Truckers use a differential tariff

2/ S.D.I.D./CIDAStudy, Commercialisationdes Produits agricoles du nord-est du Zaire, September 1981, Vol. I=, p. 121. - 51 - which discriminates against agricultural products.3/ Another Kivu-specific problem which affected the cost of transport in the past was the extremely high price of gasoline, which, prior to the September 1983 price increases, was about six times the official price (Chapter III).

Table IV.2: Transport Costs Between Kisangani and Butembo for Certain Products, 1980 (Z/Kg)

Kisangani-Butembo Butembo-Kisangani

Beans 0.91 Potatoes - 1.16 Cement 0.55 Beer 0.46 a/ a/ Adjusted to take into account the transport cost of the empty beer bottles on the return trip.

Source: S.D.I.D./CIDAStudy, op. cit.

6. Transport costs are both high and discriminatoryresulting in lower prices for Kivu producers, higher prices for Kivu consumers of imported goods, and disincentives to relatively efficient activities. In the case of coffee and tea, transport costs from the producing region to the port of embarkation represents about 30 percent of the export price; while for beans and potatoes, transport from North-Kivu to Kinshasa absorbed between 22 and 29 percent of the final price of these commodities,compared to 15-20 percent received by the producers (StatisticalAppendix, Table 2.5). On the other hand, prices that Kivu consumers must pay, are extremely high. For example, during the summer of 1983, a liter of palm oil cost three times the Kinshasa price and a bag of cement between three and four times.

D. Road Transport Services

7. Road transport services in Kivu are largely provided by small-owner operators. The only exceptions are T.M.K. (Transport et Messagerie du Kivwu), which has about 100 trucks and operates out of Goma, and B. Israel based in Bukavu. TMK trucks, mainly used on the '.Kivu-MomDasa route, carry mainly coffee to Mombasa. T,K also transports and distributes petroleum products on behalf of Petro-Zaire . Until the September 1983 measures, the firm was paid partly in foreign exchange, which insured access to spare parts, gasoline and

3/ On the contrary, ONATRA tariff structure is not directly linked to capacity use as for the private truckers,but rather to the nature of the commodity. For example, the tariff applying to industrial goods is higher than the foodcrop tariff. Industrialproducts travel up river and there is usually unused capacity. - 52 -

trucks. Small operators, with an average of two trucks, are mainly engaged in trading, with trucking as a secondary activity. A recent study of transport services in North-Kivu found that lack of operating vehicles was not a major constraint because Kivu operators had managed to obtain trucks, spare parts and fuel, albeit at very high parallel market prices prior to the September 1983 measures. 4/ Transport tariffs were found to reflect real costs as a result of the high degree of competition which existed in the sub-sector. Table IV.3 below gives some indicators of concentration of transport capacity for Butembo, Goma and the three Haut-Zaire cities, Isiro, Bunia and Kisangani, which together with the Kivu cities form an important iaterregionalmarket.

Table IV.3: Distributionof Capacity by Size of Enterprises - Butembo, Goma, Isiro, Bunia, Kisangani, 1980

Percentage of Traders/Truckers by order of Number of Capacity percent percent importauce Traders Ton With TSRK Without TMR

5 31 1,838 30 16.1 10 61 2,457 40 28.0 20 122 3,338 54 45.0 40 244 4,377 71 64.9 100 610 a/ 6,196 100 100.0 b/ a/ Total number of vehicles is 991. b/ Total capacity without TIIKis 5200 tons.

Source: CECOPAXE road study, cited in S.D.I.D./CIDAStudy, Commercialisation des produits agricoles du nord-est du Zaire, September 1981, Vol. L, op.cit.. p. .

The small operators are traders who transportmanufactured products, such as textiles, powdered milk, sheet-irons, cement, soap, palm oil, on their own account and on the back-haul agricultural products for third parties. The following table shows the flows of products for Beni, Butembo and Kisangani. It highlights the nature of the exchange between these two Northern Kivu cities and Kisangani- agricultural products for manufacturedgoods -- and the resulting imbalance. It also underlines the importance of beer as an incentive good in rural Zatre. In terms of weight, beer accounts for 40 percent of the trade between Kisangani and the two cities of Beni and Butembo.

4/ S.D.I.D./CIDAStudy, Commercialisationdes produits agrLcolesdu nord-est du Zaire, op. cit. Vol 1, p. 98; and Vol. 2, p. 253. - 53 -

Table IV.4: Flows of Main Products between Kisangani, Beni and Butembo, 1980

Risangani-Beui Kisangani-Butembo (ton/day5 (Z) (ton/day) (Z)

Beer 3.24 34 8.82 44 Cement 2.45 26 5.25 26 Fuel 0.65 7 0.92 5 Clothes 0.40 4 0.35 2 Palm-oil 1.35 14 3.56 18 Flour 0.39 4 0.33 2 Miscellaneous 1.06 11 0.65 3

Total 9.54 100 19.88 100

Beni-Kisangani Butembo-Kisangani (tonlday) (Z) (ton/day) (Z)

Coffee 2.77 25 0.12 1 Rice/maize - - 0.74 3 Potatoeslvegetables - - 3.61 16 Beans 4.70 42 10.32 45 Fish 0.62 6 - - Empty bottles of beer and palm oil 2.08 19 4.17 18 Miscellaneous 0.92 8 3.73 17

Total 11.09 100 22.69 100

Source: S.D.I.D./CIDA Study, Commercialisationdes produiLs agricoles du nord-est du Zaire, op. cit. vol. I, pp. 110-111.

E. Responsibilitiesfor Road %Maintenancein Kivu

8. In Kivu, as in the rest of Zaire, a number of organizations is involved in the maintenance of the road network: Office des Routes, r2gional administrations,private firms, individualbusinessmen and Church groups. By far, the most important institution responsible for road maintenance is the regional office of the Office des Routes. It is responsible for the maintenance of 5532 km of national and priority regional roads (13 percent of the national OR's network) in Kivu. Given the overall scarcity of local and foreign recurrent funds available for road maintenance in ZaXre, the network effectivelymaintained, in terms of kilometrage, is well below the theoretical 5532 km. In 1983, some 3268 km were programmed to be maintained, representing 68 percent of the theoretical O.R./t±vu necwork. But the execution of the program usually falls far short of the planned level. In 1982, for - 54 - example, Office des Routes/Zaire achieved only 40 percent of its planned program because of fuel shortages. Moreover, there is general agreement that the limited resources put at the disposal of OR/Kivu have not been used efficiently. The frequent misappropriation of OR spare parts, gasoline and equipment has further compounded the problem and seriously undermined the credibility of the Office in the region. The situation was perceived to be serious enough to warrant the dispatch of two Lnspectors-general from Kinshasa, for a period of six months starting January 1983, who were given broad powers to take whatever measures they judged necessary to streamline the operations of the regional office. The inspectors replaced the management and put in place procedures for the proper implementation of the regional program. Although performance has notably improved, for some time to come there is likely to be a gap between actual improved performance and the badly tarnished image of the OR/Kivu.

9. In some cases, OR/Kivu subcontracts the maintenance of sections of the network to firms which are main users oz the sections in question. For example, in 1983, some 962 km were subcontracted to six firms, including SOMINKI, the Maniema-bared mining concern, which received 40 percent of the subcontractedtotal. These firms are paid about Z 1000/km or about US$170, at the official exchange rate prior to the September 1983 devaluation (US$34 after the devaluation).5/

10. Regional administrationshave historicallyplayed a key role in the maintenance of feeder roads. Since Independence, the program has ceased to function satisfactorilyas a result of widespread misappropriation of funds by local authorities,the low level of remuneration paid to the road workers (Z 150 per month), and the lack of equipment, effective supervision, and technical and complementary financial resources needed for the repair and reconstructionof bridges and ferries. A recent inspection of the Kivu road network, carried out by the Office of the Governor, found more than 300 bridges and ferries in need of repair. The Ministry of Agriculture's program, Routes de desserte agricole', aims at correcting some of these deficiencies; in 1982, Z 53 million were put at the disposal of the regional governors for the maintenance of 31,290 km of feeder roads, of which 2,200 km were in Kivu.

11. The Kivu regional administrationgave a very high priority to this program and the Governor took an active role in its implementation. A special committee, made up of the Governor, his technical advisor, the chief of agriculturalservices in the region, and the technical chief of Office des Routes/Kivu,was set up to monitor the program, whose main thrust was to rely as much as possible on the private sector for its implementation. To this end, the regional administration signed contracts with local firms, church groups and in some cases (mainly in Maniema) local collectivities. This was a significant departure from the past when the maintenance of feeder roads was considered the exclusive prerogative of the local authorities. To

v/ Kenya has a similar arrangement and in 1981 was paying about USS250/km. World Bank, Accelerated Development in Sub-Sahara Africa, (1981) p. 108. - 55 -

Table IV.5: K-ivu- Program "Routes de desserte agricole" - Contractsby Category of Signatories,198Z

Church Individual Collectivities Firms Groups Businessmen Total Km

North-Kivu - 5 1 3 9 700 South-Kivu - - 1 - 1 49 Maniema 13 4 2 2 21 1767

Total 13 9 4 5 31 2516

Source: Office of the Governor/Kivu,Routes de desserte agricole - rapport d'inspection (Bukavu,June 1983) pp. 23-25. oversee the implementation of the program, a special committee made up of the the Governor, his technicaladvisor, and the chief of Office des Routes/Kiwvu, was set up. This committee determined the criteria to be used for participation in the program and supervision of execution. There has been an attempt, successful so far, to make the operation as transparent as possible. The committee has already published three reports which document the program, actual execution, reasons for differences between the two and sug- gested actions. 6/ The program seems to enjoy widespread support, although, given the smalf amount of resources involved, its impact is relatively limited. Other arrangementsinclude the road maintenance program of the two cotton companies, La COTONNIERE in Maniema and ESTAGRICO in South-Kivu. These firms have created road maintenance units, which have been provided with vehicles and equipment under a FED grant while their operating costs are financed by the Economic Recovery Funds. In the opinion of a recent World Bank supervision mission, the program is working fairly well in Maniema but has encountered difficulties in Sourh Kivu because of the unavailabilityof roadworkers'at the going wage (Z 150 per month). Finally, a number of private businessmen maintain various sections of the road network at their own expense.

12. Most of the resources - domestic and foreign - allocated to the transport network since Independence have aimed at the rehabilitation and maintenance of the Vote Nationale. However, the entire network has benefited from the strengtheningof the management of the transportagencies, including Office des Routes, through technicalassistance and training. The Highway IV project, assisted by the World Bank, included the setting up of a training center in Bukavu and the reconstruction of a number of Kivu bridges and ferries. Kivu is also the beneficiary of one of the rare new road construction projects in Zaire, the Kisangani-Bukavu axis financed by the European

6/ These reports are : Office of the Governor of Kivu, Routes de desserte Agricole - Programme 1982-83: Sous-region du Maniema et Zones de Beni et Lubero, Bukavu, September 1982; Routes de desserte Agricole-?rogramme T9T3_-4: Sous-region Nord-Kivu and Sud-Kivu, Bukavu, May 1983; Rapport d'Inspection-Sous-regiondu Maniema, Zones de Beni, Lubero-Mwenga, Bukavu, June 1983. - 56 -

Development Fund, KfW and the African Development Bank.7/ Total length of the axis is 637 km; 367 km are open to traffic; 125 km are under construction at a total cost of about US$52 million and 145 kcmare planned at a total cost of about US$60 million. There are also plans to upgrade the airports of Beni and Bukavu but so far very llttle progress has been achieved.

F. Air Transport

13. The potential impact of better transport infrastructureis high- lighted by the boost which has been given to the vegetables and livestock sub-sectors in North Kivu by the upgrading of the Goma airstrip. Between 1979 and 1981, the quautity of meat sent by alr from Goma to Kinshasa increased sevenfold from 250 tons to about 1800 tons. Besides the government-ownedAir Zaire, there are about 6 other private air carriers providing cargo services. Increased competicion in air transport as well as the very low cost of fuel until September 1983, on one hand, and increased vehicle operating costs, on the other, narrowed the differential between air and road transport. For example, road cost represented 25 percent of the final price of Kivu beans in Kinshasa compared to 30 percent for air transport cost (StatisticalAppendix, Table 2.5). The relatively small differential paid for air transport more than compensates for the time saved and wastage avoided.

Table IV.6: North-Kivu: Exports of Meat to Other Zairian Cities by A=_rCarriers, 1979-82 (Tons)

1979 1980 1981 1982 Carriers Tons Tons . Z Tons Tons Total

Katal - 239.9 97 936.0 68 957.5 53 1236.9 76.8 Air Zaire 8.1 3 321.5 23 543.5 30 331.4 20.6 Inter-Fret - - 127.0 9 276.6 15 12.1 0.8 Zaire-Cargo ------21.1 1.3 Others - - - - 27.8 2 8.7 0.5

Total 248.0 100 1384.5 100 1805.4 100 1610.2 100.0

Source: Ministry of Agriculture, Rapport de mission - North Kivu, August 1983, op. cit., p. 112.

G. Conclusions

14. Because of Kivu's remotenessfrom main markets, an adequate transportation infrastructure is a key element in the development of the region. The present inadequacies of transport links both within tivu and with the rest of the country and the eastern ports of Mombasa and Dar-es-Salaam,

7/ See, Ministry of Planning, Zaire - Programme Interimaire de Rehabilitation Economigue 1983-85 Vol. IV, October 1983. - 57 probably represent the most severe constraints to the economic recovery of the region. A strategy for transport in support of the productive sectors calls for the following actions:

(a) give high priority to the maintenance and rehabilitationof intra- regional links and to the completion of the Bukavu-Kisanganiaxis, the most direct route to Kinshasa, the major internal market; assess the need for possible reconstruction of small stretches of the secondary road network;

(b) assess the need for further expansion of air transport and identify economic investments and institutional arrangements which can accompany this expansion;

(c) involve more systematicallylocal entrepreneurs and other interest groups in the determinationof the Office des Routes/Kivu work program;

(d) continue to rely on local entrepreneursand nongovernmentalorgani- zations for the maintenance of the feeder road network and strengthen the capacity of the regional administration to administer the program; and

(e) find joint solutions with Rwanda and Burundi to the problems related to the use of external transport routes through Uganda, Kenya and Tanzania. - 58 -

V. EDUCATION

A. Background

1. The highly-centralizededucation system has been plagued with serious problems, specificallyshortage of budgetary resources, mismanagement of resources, and lack of planning and coordination.l/Given Kivu's geographical distance from Kinshasa, the region has been pirticularly hit by these constraints. 2 1 This review of the sector in Kivu shows that the education system as presently organized does not respond to regional needs. The section will present the current situation of primary and secondary education in the Kivu, the main sectoral constraints and issues and some recommendations for future action. This section will also include a case study of a university-levelagricultural institute that is successfully meeting the aca- demic and practical needs of students.

B. Current Situation

2. Recent available statistics,which should be interpretedwith care, indicate a slightly unfavorable position of educational facilities and personnel in Kivu vis-a-vis the nation (Statistical Appendix, Table 7.1). Although the region has 16 percent of the national population, it contains roughly 10 percent of all primary and secondary schools. This fact ls particularly reflected ln the region's enrollment rates, which are more than 40 percent and over 50 percent below the national average for primary and secondary schools, respectively.3/ The same pattern is noted for enrollment of girls. These differences mia be partly explained by the low share of Kivu's population in urban areas (16 percent compared to a national average of 34 percent) and its lower than average per capita income (about half the national average of US$220). Intra-regionally, the differences are also striking. In Bukavu, the enrollment rate is 60 peraent higher than in rural areas for secondary schools. This distortion highlights che maldistribution of schools among the sub-regions (reflecting the lack of adequate school planning); the inaccessibility of schools in the interior (particularly

1/ Particularly,since 1974 when the Government announced the nationalization of schools and the ongoing economic crisis began, the quality of education in Zaire has steadily deteriorated. In 1977 the Government returned the administration of national schools to the former veligious organizations (para. 4).

2/ Prior to Independence, Bukavu, the capital city of Kivu, was considered one of the main educational centers of eastern Zaire, as well as of neighboring Rwanda and Burundi. It should be noted, however, that many of the schools were exclusively for Europeans.

3/ Kivu's enrollment rates for the school-age population are 50 percent for primary schools and 12 percent for secondary schools, as conpared to national averages of 90 for primary and 23 for secondary schools. - 59 -

Manieua); and the early participation of children in. economic life (especially in the North Kivu towns of Beni, Rutshuru and Hasisi). Other education indicators, namelv, the student/teacher ratio of 32 and 24 and the student/classratio of 30 and 33 for primary and secondary schools, respectively, show, however,- that Kivu's school system is comparable with the nationdl average.

3. Another characteristic of the Kivu educational sector which deserves mention is the high percentage of church-affiliated primary and secondary schools. As shown by the table below, Catholic and Protestant primary schools account for 96 percent of primary schools, as compared to 63 percent for all of Zaire; while the secondary schools represent 64 percent, compared to a national average of 48 percent.

Table V.1: Primary and Secondary Schools in Kivu and Zaire, 1981/82

Primary Secondary Total No. X No. Z No. %

Zaire 11859 100 5345 100 17204 100

Official 3571 30 2374 44 5945 34 Catholic 4212 35 1225 23 5437 32 Protestant 3280 28 1353 25 4633 27 Kimbanguist 681 6 298 6 979 6 rslamic 115 1 95 2 210 1

K.-ivu 1240 100 (10) 493 100 (9) 1733 100 (10)

Catholic 611 49 (15) 128 '6 (10) 739 43 (14) Protestant 578 47 (18) 186 38 (14) 764 44 (17) Other 51 4 (1) 179 36 (7) 230 13 (3)

N.B. (1) The number of official schools has been estimated and should therefore be interpretedwith caution.

(2) Figures in pareathesis represent the share of Kivu schools as percent of total schools, in the respectivegroups.

Source: National CoordinationOf'ice for Catholic Education. - 60 -

Traditionally there has been a heavy concentration of religious missions in Eastern Zaire since the colonial period. 4/ Moreover, the 1982 national campaign to inspect and determine the actua? number of viable schools in each region has further accentuated the large presence of religious schools. For Kivu, this control has resulted in the closing of over 240 primary schools and nearly 100 secondary schools - most of which were official schools in the poorest condition. 5/

C. Constraintsand Issues

4. Although the 1977 accord between the Government and the religious organizations gave a certaia degree of administrative control to the religious Sroups, it made them more dependent on the central Government for scarce budgetary resources. Moreover, in recent years, the Government's increased inability to allocate sufficient funds for educational operating expenses (except for salaries) and its policy that all tuition ("minerval') payments no longer be retained by the schools, but be remitted to the Central Treasury, have accelerated the deterioration of the education system, both in terms of physical infrastructureand quality of education (para. 6). Regions like Kivu which are farthest away from Kinshasa have been particularlyaffec- ted by the budgetary constraints, translated into low teacher salaries, insufficient school materials and supplies, and inadequate maintenance of school infrastructure.

5. The low level of and the payment system for teachers' salaries, have in recent years disrupted school operations, through frequent teacher strikes. Moreover, the quality of education has suffered because of the large number of uaderqualified teachers entering the teaching profession, often considered a last resort by school graduates. According to regional education officials, the payment system for teachers' salaries introduced in February 1982 appears to have eliminated the difficulties- long delays in payment of salaries and frequent teacher strikes - with the previous system. Under the new system, the 'enveloppe-for teachers'salaries is divided into two tranches: (i) the base salary, coming from the Bank of Zaire in Kin- shasa, is deposited directly in the bank account of the regional religious organizationsor earmarked to the regional education division in the case of official schools; and (ii) a supplement, covering recent personnel changes (e.g., grade level, marital status, family size) is allocated by the Governor

4/ At Independence the great majority of pupils were attending schools oper- ated by religious organizations:more than 75 percent were In Roman Cath- olic schools and 19 percent in Protestant schools. Most Roman Catholic schools were government-subsidizedwhile only a few Protestant-run schools were aided by the Government.

5/ A remarkable difference ia terms of iafrascructure,is evident between the religious and official schools. For example, near Goma, two science- oriented secondary schools, one Catholic and the other official, are situated less than two miles apart. The Catholic school, though in need of repairs and'laboratory materials, contrasted sharply with the neighboring official school, the school buildings of which were crumbling, classrooms were windowless and a laboratory did not exist. - 61 - to the individual organizations from his general budgetary allocation. 6/ Once received, the salaries are a'.locatedby the regional coordinatorsto the sub-regional coordinators (via t:.ebanking system if a bank branch exists in the sub-region, othertwiseth~e subi-regional coordinator must physicallyobtain it from the regional office), who then personally distribute the money to each school director. Transportation difficulties do arise for directors whose schools are in areas with particularly bad roads, sucti as in the Maniema sub-region. Yet, despite this improvement in the salary payment system, the low level of salaries renders teaching an unattractive profession, as witnessed by the number of teachers (and students) who, struck by the recent gold fever phenomenon in the Kivu and surrounding regions have abandoned their schools in search for gold. Moreover, the low salary vis-a-vis the rising cost-of-living occasionally leads to extortion of funds from students (this appears particularlytrue in the official schools).

6. A very definite constraint that all schools are facing is the lack of operating funds, resulting in an acute shortage of school supplies and materials and poor maintenance of school buildings and equipment.7/ The problem has been particularly aggravated since February 1982 when the schools were ordered to return the tuition receipts to the Government in Kinshasa, leaving them with only the school fees (frais scolaires) to meet their operating expenses. 8/ This decision deprives the regional schools of a maximm of Z 12 million a year (under the new rate) and also reduces the operating funds of the national and regional offices of the religious groups, who had been receiving 30 percent of the tuition receipts for their normal operations. Since school fees are generally insufficient to purchase the required textbooks and school supplies (notebooks, pencils, chalk, etc.), the parents are obliged to bear nearly 100 percent of chese expenses, in addition to the school fees.

7. As mentioned earlier, because of its isolation, Kivu is particularly vulnerable to the inefficiencies of the highly-centralizededucation

6/ The supplement is based on information provided by the regional coordinators and represents data (relevant for salary adjustments) aot yet recorded ia the Ministry of Education computer listings.

7/ The Government allocates practically no funds for operating expenses -- a breach of the 1977 covenant between the Government and the religious organizations.

8/ Until September 1983, the tuition for primary school amounted to Z 5/year- /student and for secoadary school to Z 21/year/student; school fees waere equivalent to the tuition. Since then, the Ministry of Primary and Secondary Education has raised the annual tuition for both type of schools to Z 20, while the annual school fees were increased to Z 50 and an insur- ance fee of Z 3 was added. - 62 - system. As an example, SAMAFOS 9/ the state-subsidizeddistribution agency for school books, materials and supplies (with only one branch operating in the Kivu at Bukavu), is unable to meet the region's demand for educational supplies. 10/ Moreover, regions furthest from Kinshasa tend to receive only a fraccioniof their request and/or the wrong supplies. Kivu schools are, therefore, often obliged to buy their materials (generally originating from neighboringEast African countries) directly from private merchants at prices double those of SAKAFOS. The religious groups also depend on donations from external non-profit organizations for books (or paper) and equipment.

8. Maintenance of school buildings has also been ignored because of inadequate operating funds. A large number of schools, particularly the official schools, are underequipped and in inoperable condition. In general, the school management committee, headed by the school principal and composed of parents, teachers and community members, determines the developmental aspects of the school, but because of limited resources it is often forced to request additional assistance from parents for school repairs in the form of cash and/or participation in self-help projects.

9. Teacher underqualification is another worrisome national issue negatively affecting the quality of education. As mentioned above, because of low salaries and poor working conditions, the teaching profession is left 'with the least-qualified graduates or those who cannot find another job. A concern particular to Kivu's secondary schools is the common exodus of qualified teachers to neighboring countries where salaries are higher.-1/ Based on recent information from the Catholic and Protestant coordination offices (Table V.2), slightly over three-fourthsof their primary teachers and only one-third of their secondary teachers in Xivu are considered qualified. Qualificationlevels have apparently improved over the past few years for the primary level due to a conscientious effort on the part of the regional education divisioa to re-train unqualified teachers. The region has three centers for on-the-job trainingr one for additional training of teachers, another for specialization of schoolmasters, aad an institute for the formation of higher-level staff. Nearly 800 candidates (about 20 percent of all underqualified staff) successfully completed their respective program during 1982. It should be noted, however, that the program suffered from a shortage of appropriate manuals. For the secondary level, where the problem

9/ Service d'Approvisionnementen Manuels et Fournitures Scolaires.

10/ In theory, there should also be 4 SAMAFOS branches in the region at Goma, Butembo, Uvira and Kailma; in reality, these stores are either not yet opened or not stocked.

11/ For example, in 1983, base salaries for teachers in Burundi were nearly four times greater than in Zaire: primary teachers receive an equivalent of USSlO8-164/month(compared to US$30-38/monthin Zaire); while secord- ary teachers got between USS1B5-285/month(compared to tTSS50-82imonthin Zaire). These amounts reflect the pre-devaluationrate. - 63 - of teacher underqualification is the greatest, the regLon has not yet designed an on-the-job training program.

Table V.2: QualifiedTeachers in Catholic and Protestant Primary and Secondary Schools, 1981/82

Qualified Underqualified Total no. z_N No. Z

Primary 9692 77 2918 23 12610 100 Catholic 5592 76 1761 73T3 TU Protestant 4100 78 1157 22 5257 100

Secondary 990 33 1977 67 2967 100 Catholic 609 40 893 60 L502 100 Protestant 381 26 1084 74 1465 100

Sources: National Catholic Coordination Office and Regional Protestant CoordinationOffice

D. Budgetary Allocations

10. As in the country as a whole, the financial woes of the education sector in the Kivu are best-illustratedby the extremely low budget allocation for non-salary expenditures, both in absolute amounts and percentage terms. Education represents 2-3 percent of the regional operating budget. As Table 7.2 of the Statistical Appendix indicates, for 1981 and 1982, the regional education division in Bukavu received an average of around 30 percent of its proposed budget, and roughly 60 percent of the approved budget, equivalent to an average annual amount of Z 60,000 (US$10,000). Although this budget pattern is not inconsistentwith that of other sectors in the region, the insufficientamount precludes any substantial improvementin the sector. The region is also provided with a budget for school inspection, which averaged Z 330,000 per year for 1981-82, only two-thirds of which was actually received (StatisticalAppendix, Table 7.3). .Althoughthe inspection budget is nearly four times that of the administrativebudget, the amounc allotted per school for inspectionaverages Z 155 - a ludicrousamount considering the high transport costs involved in covering the long dlstances between schools. Nevertheless, the share of the two budgets in the total regional budget for education is not inconsistentwith the share of schools in the Kivu, i.e., about 10 percent.

11. Kivu's share of education in the total 1983-85 Public Investment Program comprises 2 projects, totalling about Z 0.6 million in mid-1983 prices, representingless than 1/5 of one percent of the total education investment program. These projects, retained in the Interim Economic Recovery 'ro- gram are both for higher education,under the aegis of :he Institut Superieur de Developpement Rural (ISDR) in Bukavu (para. 14). They include an increase in student housing and the constructionof an electrical station on - 64 - the ISDR campus. Other than by the World Bank, there has been virtually no externally-financedinvestment in the sector. The two IDA-financed education projects were both hampered by a weak central administrationand an inadequate implementation capability, which resulted in excessive cost overruns and long delays. In fact, US$18.8 million of the US$21 million Credit for the Second Project, which included the rehabilitation of six agricultural technical institutes, one of which in Butembo (North Kivu), was cancelled after six years, at which time only the studies and fellowship components were successfully completed. Other donors involved in the sector are: (i) Belgium and France who supply technical assistance ("cooperants")for higher education and for the primary/secondaryinspectorate; (ii) Belgium and USAID who provide nominal amounts for vocational school materials and self-help programs; and (iii) the Peace Corps whose volunteers have been active for many years as secondary school teachers, mostly in the scientific schools.12/

E. Conclusionsand Recommendations

12. As on the national level, the quality of education in Kivu is gradually deteriorating,mainly due to the severe financial constraints of and the mismanagement of available resources by the Central Goverament. In the past two years, the Government has attempted to address and correct these issues by implementinga seemingly-improvedpayment system for teachers salaries and by carrying out a school inspection and control exercise, which has led to the closing or consolidatingof a number of fictitious or sub-standard (according to government criteria) schools. Despite these steps, however, the highly-centralizededucation sector continues to face serious problems of cost-effectivenessand transparencyof funds.

13. Although the school inspection exercise was a first step in ridding the school system of unqualified and fictitious teachers and reassigning the qualified teachers to other schools, the control of teacher recruitment should be carried out on a regular basis. In fact, education specialists familiar with Zaire recommend that given the present student/teacher ratios in Zaire - rather low compared to other sub-African countries - the Govern- ment could attack the problem of teacher underqualificationby reducing the number of teachers and increasing the salary of the rest. These actions should be accompanied by strict criteria to the opening of new schools and classes.

14. The shortage of operating revenues Eor schools at the local level has placed an increasingly heavy burden on parents of school children. The policy of remitting tuition receipts to the central authorities is a quest- ionable one and has actually aggravated the financial situation of the schools, considering that regional governments are receiving very limited funds for school operations. The rationale behind this policy deserves,

12/ In early 1982, the Peace Corps volunteers, assisted by three Zairian professors (all from Kivu), prepared a proposal for the scientific, agricultural, and veterinary programs in the secondary schools, which would better address the practical needs of the students and be more logical in the sequence of topics studied and the number of hours spent on them. The proposal was presented to the Ministry of Primary and Second- ary Education for approval, but, as of mid-1983, no response had been given. - 65 - therefore, to be reconsidered, together with the use of the funds that are remitted to the Treasury. The large increase in all school fees, effected in September 1983, does little to increase school revenues if tuition receipts continue to be remitted to the Treasury. Administrativecosts would be lower and operating standards improved if fees were to remain at the school level. Moreover, it is uncertain whether this increase in school fees cani adequately finance minimum quality control improvement, when, in fact, parents bave had to purchase textbooks and materials, even though these were to be covered by the fees. The inefficient centralized distribution system for textbooks and school supplies has only met a small part of the total demand for school materials, forcing school administratorsand parents to rely on non-market domestic channels and external markets for their supplies -- at a very high cost. It would appear that, especially in Kivu, where geographicaldistances and a poor road system truly isolate it from Kinshasa, a decentralized or "privatized" distribution system would be more efficient and responsive to local needs. The regional coordinators of the Church-affiliatedgroups, who can better assess the needs of their schools, could probably assume the distribution function.

15. Moreover, Kivu's extremely low share of total education investment in the 1983-85 PIP provides little hope for improvement in the quality of education in the region in the near future. This point suggests another consideration, namely the need for greater involvement of the religious bodies in sectoral policy formulation and closer contact among them and with the external community, especially regarding investment opportunities. Tradi- tionally, the religious groups, motivated by their own sense of mission, have administered their schools more efficiently, despite severe financial constraints. In addition, their long experience in the local communities has provided continuity in a sector which has been frequently jolted by political developments.

F. Case Study: Institut Suparieur de DeveloppementRural (ISDR)

16. The ISDR, established in Bukavu as a four-year secondary institute for economics and social sciences in 1962 by the Belgian White Fathers, was transformed to its present position as a higher educat±on institute in 1977, when it was incorporacedinto the National University of Zaire (UNAZA). 13/ Since its inception, the ISDR has had the following objectives: (i) trainIEg in economic, social and human develoment at the rural level; (ii) formulatiou of a training program that would cover all aspects of rural life; and (iii) active participationof students in the analysis and solution of economic and social problems common to the rural environment. To achieve these objectives, the ISDR today offers a three-year degree program in social sciences with three areas of specialization: social organization, regional planning and rural administration. The Institute emphasizes a multi-disciplinaryedu- cation, inclnding, inter alia, courses on preventive public health care, agriculturalmethods, and organizationof cooperativesand cottage industries adapted to local conditions.

13/ The only other higher education institute in Kivu is the Institut Supgrieur de Pedagogie (ISP) ia Bukavruwith a student population of around 700 and a faculty of nearly 100 professors. - 66 -

17. The basic philosophy of the ISDR is that the students must gain practical technical experience in the rural milieu along with theoretical instruction,so as to understand and respond better to the needs and problems of their future work environment. Accordingly, begiuning with their first year, the students, guided by two professors, are assigned field work and are encouraged to discuss regularly in class and in small groups their 'real life' experiences. The 'practicalprogram", representingover 40 percent, or more than 1700 hours, of the total hours in the three-year program, covers all aspects of rural life, from harnessing potable water sources to providing extension services for the planting of fruit trees, to offering nutrition, hygiene and family planning classes, to carrying out sample surveys of market prices of food products in Bukavu and surrounding towns. The culmination of a student's practical studies is an intensive six-month period, at the end of his first two years in one of ISDR's rural development centers (para. 20), where he performs as a technician in rural development within his own specialization. At the end of this period, the student prepares a summary report of his experiences and presents it to a panel of professors and students.

18. At present, the ISDR accomodates close to 200 students (its maximum capacity), but expects to expand its facilities in the late 1980's. About 5-10 percent of the student population are women and around 10 percent are foreigners, mainly from Rwanda and Burundi. The faculty consists of 26 professors, including economists,agronomists and sociologists; only the aca- demic secretary is a Catholic priest from the White Father Congregation. As part of the national University, the Institute is financed by the State, that is, the Govermena pays the salaries of professors and provides Z 15,000/month for operating expenses.l4/ Moreover, the State subsidizes student room and board of about Z 120/month and gives each student an allowance of around Z 260/month. On the other hand, the Government receives one-third of the student's tuition of Z 150/year. On average, 50 percent of the graduates (diplomes) specialize in sociaL organization, while the rest choose equally between regional planning and rural administration.

19. The Institute has been successful in meeting its objectives (i.e., training agricultural techniciansat the Local level) over its short history, as witnessed by (i) the demand for ISDR graduates in local communities,despite the fact that the communities must provide housing, food and medical support to the ISDR trainee; and (ii) growing studeat applications. More- over, only the two projects of the ISDR (for expansion in student housing and an electrical station) have remained in the 1983-85 Public InvestmentProgram for the education sector as a whole (para. 11). However, given ti) the shortage of higher-level staff qualified as "generalists"in rural development at the aational and regional level; (ii) the number of ISDR graduates who travel abroad to pursue their studies; (iii) the lack of a rural development institute in neighboring countries (principally Rwanda and Burundi), which frequently request placements of their students; and (iv) the need for a qualified faculty in both theory and applied research in rural development,

14/ Salary levels for professors are: Z 3000 for professors with a doctor- ate, Z 2400/month for assistants with University degree, and Z 800-1200 for secondary school graduates. - 67 -

the ISDR has requested the Ministry of Higher Education, University and Scientific Research that it be allowed to add an advanced "cycle de licence" in rural development to its program. This proposed cycle, with the main purpose of forming generalists and planners in rural development,would offer an interdisciplinaryapproach to both theory and technical methods.

20. In addition to being an institute for higher education in rural development,the ISDR, through its local involvement and its rural branches, is actively involved in socio-economicdevelopment. The Institute has legal and technical responsibilityfor five centers of development within a radius of about 100 km around Bukavu. These centers, located at Murhala, Bunyakiri, Kaziba, Lemera, and the Ruzizi plain and partly staffed by ISDR students, work with the local communities in identifying and resolving common problems, often via appropriate technologies (para. 21). For example, in 1981/82, these centers assisted in a variety of activities, such as planting of trees (mainly eucalyptus) to fight deforestation;the promotion of cooperatives in fishing, livestock and retail marketing; the preparation of community vegetable gardens; introductionof new high-protein vegetables,such as soybeans; and meetings on nutrition and hygiene practices. ISDR coordinates many of these activities with other organizations,such as the Comite Anti-Bwaki (a committee set up to fight infant malnutrition, see Chapter VI, para. 8) and UNJCEF. It is interesting to note also that the ISDR was recently given respon-sibility for the Ruzizi Agro-Pastoral Project, which was initially handled by FAO, then by the Chinese and lastly by the Ministry of Agriculture and &ural Development.

21. Both in class instruction and direct community activities, ISDR places the emphasis on appropriate technologies, i.e., a "tailor-=ade- tech- nology which, taking into account local priority needs, can be applied efficiently, is easily acceptable to the population and is adaptable to local resources (manpower, investment, materials, management, and maintenance). The Center for Study and Research of Appropriate Technology (CEETA), created by the Institute, is responsible for studying specific Local technological needs, carrying out theoretical and practical research on simple and locally-relevanttechnoLogies and demonstrating and disseminating the use of appropriate machinery to the local population. CEETA, using strictly local materials-scrap metals and other recyclable waste--has designed a number of machines and tools which do aot require either gasoline or electricity, but rather rely on human labor, the wind or the sun for energy. A few interesting examples are: a low-cost cooking stove, a solar-heated device for producing hot water, a peanut decorticator,and a non-electricrefrigerator. In general, ISDR students train the local population in the use of such equipment as part of their practicalprogram. - 68 -

VI. NON-GOVERNMENTALORGANIZATIONS (NGO's)

A. Background

1. As in all of Zaire, the Roman Catholic and Protestantl/ Churches have been active in the Kivu for many decades. Traditionally,both religious groups are well-known for their strong contributions to the education and health sectors. As the examples in the following section will show, however, their Impact in the Iivu goes beyond the social sectors to involvement in agricultural extension-type work, to small-scale agro- industrial production, to construction and maintenance of feeder roads, and to coortdination of human resettlement schemes 2 !. Special focus will be placed on a critical non-governmental entity in the Kivu, namely, the Comite Anti-Bwaki, created to fight the region's serious problem of infant malnutrition. Activities of UNICEF, the most important multilateralagency operating in the Kivu, will also be discussed.

2. In addition to operating traditionalhealth facilities (hospitals, dispensaries and maternity clinics), Catholic missions, in collaboration with other NGO's, support a number of nutrition centers and satellite soya and maize processing plants in North and South 1ivu,e.g. in Murhesa (near Bukavu) and Xaboya (between Beni and Butembo). The objective of both the centers and the agriculturalplants is to fight malnutrition by encouraging the rural population to produce crops that are rich in protein, especially soya. The centers produce soya, maize and sorghum and/or buy them from che local population, then process them into flour which is distributed and sold to designated clinics and nutrition centers of the Comitd Anti-Bwaki (e.g., the Murhesa plant services 84 centers); any surplus is sold to the local population3/. Under this soya/maize program, the relevant diocese of Kivu owns the land, the mills and equipment, while Mondo Giusto (an Italian private non-profit organization) provides the personnel for implementing the project, the FED contributes powdered milk and UNICEF donates vehicles, mostly trucks, to the centers. This project, though small in scope, has not only provided a number of surrounding clinics with nutritional soya and maize flour, but has also supported and promoted the activities of ISDR's rural develooment centers (Ch. V, para. 20). However,

1/ There are presently 16 Protestant denomination groups active in KRwvu, all under the aegis of the Church of Christ in Zaire (Eglisedu Christ au Zaire).

2/ The recent manufacturing enterprises census includes three enterprises owned by the Catholic archdiocese of 3ukavu (two small-scale ones for grain production and non-food agricultural production and one medium- scale firm for manufacturing of furniture and wood articles) and three owned by the Catholic diocese of Goma (one small-scale furniture and wood articles enterprise, a small printing press company and a medium- scale livestock ranch).

3/ The price of flour (summer 1983: Z 5/kg) compared to Z 20/'kgon the local market, is fixed by mutual agreement among the Econonat GSnfral of Bukavu, the Anti-Bwaki Commissionand the nutrition centers. - 69 -

common problems, such as bad roads, shortages of gasoline and inadequate water supplies often limit its effectiveness.4/

B. Principal NGO Projects

3. Rural Development Project (CEDERU). The management of the rural development project CEDERU (Centre de Diveloppement Rural) In the zone of Rutshuru (North Kivu) was ultimately entrusted to the Baptist Community of Kivu in 1979 and became effective in 1982 with the recruitment of a new Director5/. The project has three main objectives: (i) the improvementof sanitary conditions in the rural areas of Rutshuru; (i1) an increase of vegetable and animal production;and (Lii) general adult education. In the health sphere, the project offers curative health care in the Center's dispensary and maternity clinic and educational programs on maternal and child care and on the fight against contagiousand infectious diseases. In rural development, the project, employing around 50 farm familles as extension workers, has introduced the production of soya, green beans and maize and the breeding of rabbits. The project directs its education component to training in family health care practices and to functional literacy for women. As of the end of 1983, however, the project appeared to have little impact at the zone level, principallybecause of f±nancialconstraints.

4. Cheese Factory and Slaughterhouse. In tNorthXivu, a Cathollc mission, comprising three Belgian Catholic priests, is famous for its cheese facrory. The mission is located in Lushebere in the diocese of Masisi, a mountainous region (5000 km2) which is suitable for livestock production. The mission's 500 hectare farm, self-sufficientin food, water and electricity, owns 800 head of cattle, from which it obtains an average of 2500 liters of milk per day, and employs a staff of about 300 workers (including veterinarians,cheese-makers and electricians). Additional milk is bought (Z 2.5/liter) from the local population to produce a variety of Gouda and Camembert cheeses for the Goma market. With a production capacity of 120 kg of cheese per day, the factory is unable to meet the high urban demand for its cheese. Although the Fathers plan to double the factory's capacity in the near future, they estimate that the capacity of the factory would have to be increased ten-fold to meet total demand. The farm also runs a slaughter-house that provides meat to the surrounding urban towns. Once a year, the Fathers offer a seminar in cattle-breeding to the local livestock breeders, who receive room and board; ln the past FAO has helped with the cost of the training centers. The farm is a profitable enter- pr1se, yet faces serious constraints, including extremely bad mountain roads (of which 34 kms are maintained by the mission), high costs of fuel which until the September 1983 measures had to be bought at the parallel rate, shortage of electricity for refrigeratioa and lack of forelgn

4/ At the Maboya mission, the staff is working with Mondo Giusto to build an hydraulic turbine near the mill.

5/ At the beginning of the project (1973), OXFAX1was to finance the Infra- structure,but changes within the organizationresulted in a three-party management system, consistingof the Regional Synod of Xivu, the Eglise du Christ au Zaire and the Baptist Community of KiLu. Due to technical and administrative difficultieswith the project director, this system was also abandoned in favor of the above. - 70 -

exchange (cheese is fraudulentlysold by the local population in Rwanda for foreign exchange). 5. Village RessettlementScheme (VIPAE). Catholic priests, assisted by a small umber of Catholic missionary Sisters, are also involved in a village resettlementscheme in the valley of Lwana (97 km from Bukavu), in the zone of Bunyakiri (South Kivu). The valley is characterized by a large forest, a stream, medium altitude, abundant rainfall, and low population denslty. The project, which started in 1981, intends to traasfer a number of families away from the densely-populatedareas of South Kivu toward this underutilized, fertile land in the western area of the sub-region - the soil is particularly favorable to tropical plants, such as mountain rice, palm oll, manioc, bananas and tropical fruits. The land for the Village Pilote d'Agriculture Moderne, VIPAM, around 300 hectares situated in th area of the Batembo tribe, was granted by the regional Government and the local chief. Because of social sensitivities and general reluctance of the Bushi tribe to resettlement schemes, the project was begun as a pilot operation with a small number of pioneer families, who were be given 10 hectares per famaly, the required materials and equipment to clear the land and construct their own homes6/. The male heads of the families, who were actively involved in the decision-makingof their new village, resided in a training center in the village for an initial period of six months (a crop season), at the end of which they returned to their old homes to either return with their whole family or abandon the scheme. If a family returned, Lt was given a food ration and about Z 500/month for one year and was expected to be self-sufficient at the end of two years. The family could sell its surplus foodcrops at the village cooperative7/ and could obtain a loan to improve its home (to be repaid in-kind).

6. By the end of the first year, the project had established 13 families in the village of Maendeleo, and five other families from the island of Idjwi were in the process of forming another village in the valley 8 /- A -welcome center', composed of the training center mentioned above, a five-year primary school with an enrollment of about 200 students, a dispensary, supported by doctors from FOWULAC(the contact hospital in the zone, 100 km away), and a store selllng basic necessities to the families, was also built by the pioneer families. The village, wanting to establish good relations in the community, has opened its school and dispensary to its neighbors. Moreover,VIPAM's families (supportedand encouraged by the Governor of 'Kivu), play an active role in the community. As an example, the parents association was instrumental in pushing for the extension of

6/ Favorable climate and fertile soil, coupled with strong cultural ties to the area, have encouraged high population growth in the region surrounding 3ukavu, despite severe erosion and malnutrition.

7/ Each family plot is broken down as follows: 2-3 hectares for palm oil, 3-4 hectares for foodcrops and 3 hectares left as forest.

8/ To qualify a family must have at least one child, but not more than four children. - 71 -

the school from three grades to five -- requesting it directly from the Governor of the Region during an official visit - and participatedin the construction of the additional classrooms. The families are hoping to install a micro-hydroelectricgenerating plant in order to process the village's wood and palm oil, but are in need of additional financing; so far, the project has been financed strLctly from external private donations and contributionsfrom nearby parishes.

7. Although the project Is a small step toward attacking the problem of rural overpopulationand its accompanying problems of deforestation,erosion and malnutrition, the enthusiasm of the few resettled families, as well as of the local population of the Lwana Valley, indicate that VIPAM is addressing important local needs, particularlyfor practical training, primary education and health care. In addition, the project is gradually introducing modern appropriate techniques in agriculture and livestock- breeding to an area which had hardly been touched by the modern world.

C. Comit4 Anti-Bwaki

8. The Comite Anti-Bwaki9/, established in 1965, was set up to combat serious malnutrition, especially among infants, in the Bushi territory (from ICaleheto Uvira and from lake Rivu to Hwenga in the West - all in South Xivu, Kivu's most densely-populatedsub-region). The Comite, consists of over 60 members - a combination of lay persons and mlssionaries with equal representation of Zairians and expatriates -- is presently involved in five areas: improved food nutrition, livestock resettlement (Project Mulume Munene), potable water supply, health, and erosion control, all of which are handled by separate sub-committees.

9. Malnutrition in infants, characterized by low weight (one-quarter the weight of their European counterparts),dilated eyes, and extended bel- lies, is the result of unfavorablesocio-economic conditions includingpoor sanitary conditions; insufficientprotein-intake by expectant mothers, who survive on a starch-based (usually manioc) diet; short breast-feeding period (a few weeks) due to the economic fact that the mother is needed in the field or must market the family's crops; the lack of clean potable water (a major cause of diarrhea and parasitic diseases), resistance to diversification of traditional diet because of cultural taboos, and over- population. The Comit4 Anti-Bwaki, represented by a sub-committee on improved food nutrition, has attacked the problem of malnutrition with a combined feeding and nutrition education program, carried out by a number of nutritional centers, soya/malze/sorghumprocessing plants, and selected hospitals scattered throughout Rivu. The primary function of the centers has been to treat and monitor malnourishedinfants in their area. Although the program differs slightly among centers, Its general requirements are: (i) that mothers bring their sick Infants to the center to be checked for the degree of malnutrition,after which a diet consisting of a mixture of maize flour and soya flour is prescribed biweekly (generally a nominal fee

9/ The full title is Committee for the Fight against Malnutritionand for the Protection of the infant in Kivu. Bwaki is the 3ushi word for infant malnurrition. of one zaire/child/monthis charged); and (Li) that the infant be checked weekly for weight change and general health. Depending on the available resources and the local need, the centers also provide training classes on pre-natal care, food hygiene, nutrition (including better cooking practices), preventive health care, family planning and small animal breeding; promote vaccinations agaLnst common diseases; and sell flour of soya and maize, and promote sorghum to the local population. The centers encourage active participation of the local communltiesin their programs and empha- size the application of proper health care practices. Although recent reports from the centers Lndicate that limited success is being achieved in controlling the number of cases of malnutrition and in the number of infants who improve, the full impact of the nutrition program is difficult to assess since, in many areas, parents do not or are not able to practice the training received because of negligence and/or lack of means. Obviously, the necessary work undertakenby the centers, staffed by various religious groups and ISDR students, needs continued support and reinforce- ment in terms of infrastructure(potable water sources, passable roads) and supplies and equipment (e.g., milk, medicine, vehicles) by the Regional Authorities,as well as private groups and external agencies.

10. Moreover, the nutrition sub-committee, working with representatives of peasant groups, tries to promote the consumption of high-protein local products, such as fish and mLlk. For example, in Uvira, fishermen could supply 80 sacks of 50 kg each (4 tons) per month, and up to 300 sacks during the peak months of March and June. However, the high price of Z 80/kg for the fish has discouraged consumers, while transport difficulties (the available truck has a capacity of 7 tons and is thus reluctant to carry a lighter load in view of the shortage of gasoline) and lack of storage facilities has banned fishermen from continuing in this activity. The sub-committee has also been influential in the building of a biscuit factory in Bukavu. Almost completed, the factory is now looking for funds to purchase additional primary ingredients (e.g., wheat) 1 0/. An appraisal of the project estimates that one kilo of biscuits (around 120) would cost Z 10; the factory intends to sell small packages of 10 biscuits. The Comitf's basic policy of mobilizing local resources (publLc and private) to fund its activities is illustrated in this case, where the sub-committee recently received financial support from the local Lion's Club to purchase the first order of sacks for the biscuits.

It. In addition to supporting the nutrition centers and soya procesiing mills, the Comit&, represented by its livestock settlement sub-committee, has been the leading force in launching a livestock project in Mulume Munene in the zone of ICabare, near Bukavu, a grazing area settled by Euro- peans before Independence but abandoned during the civil unrest of the 1960's. The objectives of the project are (i) to reLntroduce cattle to the mountainous area by resettling a number of families from neighboring over- populated areas and giving each family 40 head of cattle and (ii) to permit livestockbreediag for small cattleowners. Therefore, the project would serve several purposes, inter alia, alleviate the strong population land

10/ UNICEF has already committed initial supplies of vitamins A and n con- centrate for the biscuits. 73 -

pressure in the area which has a population density of nearly 250/km2 and a population growth rate of around 3.3 percent a year; and provide milk and meat to a rural population suffering from a protein-deficient diet. (The city of Bukavu has a population dens!ty of over 2000/km2 .) Acting as main organizer sor the feasibility studies and preparationwork of the project, the Comite, :after a two-year delay due to lack of lands, obtained permis- sion from the Regional Governor in May 1983 to rent over 1000 hectares of government farmland for this project and is presently seeking external financing assistaace to launch the pilot project (financing from the local credit cooperative is also being sought). The Comite would like to extend the project to cover around 100,000 hectares.

12. Another eevelopmentactivity created by the Comite Anti-Bwaki at the end of 1980 is a sub-committeefor potable water. Working with the local population surrounding Bukavu (Walungu, Kabare and Kalehe), the sub- com- mittee aims at coordinatingthe activities of the various groups interested in rural water supply; determining the hydraulic needs of the Comite's centers (para. 2); giving technical assistance in locating water springs; and collaborating with the Ministry of Agriculture and Rural Development and UNICEF to ensure assistance in materials. During 1980, the sub-committee carried out a number of surveys to make an inventoryof existing water springs. The following year, in collaboration wita REGIDESO's -Brigade Hydraulique' of Rutshuru and UNICEF, it organized a short training session for nearly 50 spring operators and received cement and water-pipes for 150 springs from UNICIF. Since 1981, about 250 springs have been developed and the first two gravity-operatedsources have started to operate, all of which have supplied water to about 100,000-120,000persons. UNICEF is continuing to furnish the potable water sub-committeewith construction materials and tools, vehicles and hydraulic supplies (water pipes, pumps, etc.). Moreover, in conjunctionwith REGIDESO's Hydraulic Project Direc- tor, it expects to conduct basic technical training on the development of springs at the village levelll/. The prospects for future hydraulic works between Uvira and Goma (South and North Kivu) seem promising, while in Maniema a lack of rural hydraulic technicians precludes any similar activity. UNICEF hopes to direct its activities toward heavily-populatedareas and to integrate them with health educacion and serwagedisposal.

13. The sub-committee on health cooperates with the public health centers to study priority health problems in the region (malnutrition, polio); to find practical ways of combatting them, to obtain medicine and supplies from external sources, and to educate people in better health care (importanceof vaccinations).

14. With regard to the crucial problem of erosion in (ivu, particularly South Kivu, the sub-committeeon erosion control was created to promote and educate local officials (chiefs of the ccllectivities, rural extension workers, staff of the rural development division)an! staff and students of

11/ A Peace Corps volunteer has been recruited to work along with the Sub-Committeeon trainiagand constructingthe water springs. - 74 -

the ISDR on anti-erosion farming techniques, especially horizontal cultLva- tion. In order to raise local awareness to this continuing process of erosion, the sub-committee is planniag a local campaign, widely publicized by radio, newspaper and in the parishes, which would select experimental fields to demonstrate the difference between protected and eroded fields aud the application of vegetable wastes as fertilizer. In some zones, a campaign for reforestation,carried out by local students, is being encouraged.

D. Cooperative Savings and Loan Associations

15. The cooperative movement, aimed at encouraging savings and the provision of credit to small enterprises, has had active support in Kivu since it was established in 1972. The NGO's, in general, have promoted the movement through their various activities, particularly at the local level. The base of the movement consists of the local savings and loans cooperatives (COOPEC) which accept deposits and lend to members. A large proportion of their deposits are subsequentlyplaced with the regional ozganiza- tion (COOCEC). Each regional COOCEC is at the national level represented in the union of regional cooperatives (UCCEC). COOCECand the COOPECs pay 4 percent annual interest on deposits. COOCECin turn places the bulk of the savings it receives from the COOPECs as term deposits with commercial banks, currently earaing 24 percent for 12 months, giving it a very large margin between the cost of and return on their funds. Annual lending rates vary from 12 percent (when secured by deposits) to 30 percent.

16. Ia Butembo, the local COOPEChas been growing at a rapid pace since its beginning in early 1982.12/ Managed by an enthusiastic and dedicated entrepreneurial group, the cooperative strongly promotes social and economic development for its members, who totalled over 600 at the end of 1982, of which 100 were founding members. On the social side, it advocates democratic treatment of all members, regardless of class, sex and ethnic ori- gin. In the economic sphere, it invests savings in economic activities; promotes the creation of small- -andmedium-scale enterprises,particularly in agro-industries;lends only.for profitable activities; and educates its members in the importance of saving in small amounts for the future well- being of their family. Motivated by this socio-capitalisticspirit, the cooperative was already handling over Z I million in mid-1983, lending roughly two-thirds of it for small loans or as short-term credit. With respect to deposits, this COOPEC has virtually replaced the local branch of CADEZA (Caisse d'Epargne.iu Zaire), a government-ownedsavings institution, whose ficancial &xlficultiesprevent it from lending.

E. Conclusions

17. The sample of NGO activities in !Civu illustrates the variety of involvement of the different groups and their relative effectiveness and

12/ In June 1983, the COOPEC was officially approved as a branch of -. ivu's COOCEC for the zones of Beni and Lubero. - 75 - success in responding to local needs.13/ Given their visible presence in the local communities, the NGO's can 'etter idencify the problems of the area and formulate appropriately-designedsolutions. As demonstrated by the Comite Anti-Bwaki, the VIPAM program and the soya processing plants, the contribution of TGO's to economic and social development, though on a small-scale,can be measured by the active involvement of the local population in the various activities and the high demand for existing programs. By purposely seeking the cooperation of the local communities, the NGO's not only -localize' their operations, but also foster a local sense of trust and confidence in their programs - elements often missing in the centralized and slover-moving government programs.

13/ It may be argued, however, that in some cases NGOs may provide unfair competition to the private sector to the extent that they have, for example, tax-exempt status and easier access to foreign exchange from external sources. - 76 -

VII. IMPLICATIONSFOR ZAIRE AND THE DONORS

A. introduction

1. The preceding descriptLon and analysis suggest that the economic development of Kivu requires a sustained commitment to an agriculturally led strategy. Throughout the 1970s and the early 1980s, tivu's economy was adversely affected by the inappropriatemacroeconomic policies followed by the Goverument. For example, the gross overvaluation of the zaire which prevailed until September 1983 resulted in depressed prices for Kivu producers of agricultural exports and in the emergence of a variety of illegal, non-productive and speculative activities. Domestically-produced and imported goods were smuggled across Kivu's frontiers with substantial losses to the country's official exchange reserves. Continuing decline in the real value of producer prices and the shortage of consumer goods in rural areas acted as a further disincentiveto agriculturalproduction.

2. The far-reaching policy reforms, adopted in September 1983 and centered on the introduction of a market-determinedexchange rate and substantial liberalization of the domestic pricing system, have important implications for the recovery of the Kivu economy. These measures go a long way toward removing the serious cost/price distortions created by the previous system and realigning relative prices in favor of production and export seccors. In light of Rivu's output mix and border location, the new measures would aot only favor producers of exports and efficient import substitution at the expense of traders and speculators, but should also provide an incentive to shift from the -underground"to the open economy. Important as these new measures are in putting in place a macroeconomic pollcy environment more conducive to the productive sectors, alone they will not bring recovery to the Kivu economy unless the necessary institutional and invesment priority changes - improvementsin infrastructureand maintenance, training of manpower,and generation and dissemination of technological packages - are also made. Finally, it should be kept in mind that even with major policy changes, it will take time to restore lost confidence, strengthen weakened institutions and improve badly--deteriorated infrastructure.

B. Implicationsfor Zaire

3. The following pages highlight the measures which emerged from the analysis contained in the previous chapters as deserving priority.

Agriculture

4. .Agricultureought to be the centerpiece of any development strategy for (i"u. The prospects for agricultural growth are excellent but they depend on appropriate incentives, improvement in sector services, effective resea-ch and extension, availabilityof inputs and a capacity for policy, project and program implementation. The following deserve priority: - 77 -

(a) resolving the land ownership problem affecting the Masisi and Rutshuru areas and the nationalized plantations;

(b) phasing out the system of 'imposed cultivation";

(d) rehabilitating key transport links between agricultural areas and inter- and intra-regional markets;

(e) carrying out studies of crop rehabilitation needs, including investment requirements and relative rates of return among them; and

(f) focussing research on Righland farming systems.

Industrv

5. While the agricultural sector is the key to Kivu's development strategy, there is an important potential for industry as well. In addition to actions aimed at recovery of the agricultural sector, which have been discussed above, prospects for industrial growth in Xivu would be improved by the following measures:

(a) ensuring that Kivu receives its full quota of petroleum products as determinedunder the present 'supply program' administered by the Ministry of Energy and Mines. In view of the Government's decision to have full pass-through of fuel price increases,giving serious consideration to the lifting of restrictions on the import of fuel products; and

(b) simplifying the administrativeand fiscal system and decen- tralizing the administrationof procedures regardiag external trade and financial services. A change in the environment for private enterprises could bring major benefits by harnessing the profits earned during the late 1970s and early 1980s in the parallel market, which could become an important source of industrial capital.

Transport

6. Because of Kivu's remoteness from main markets, an adequate transportationinfrastructure is a key element in the development of the region. The present inadequaciesof transport Links both within Kivu and with the rest of the country and the eastern ports of Mombasa and Dar-es- Salaam, probably represent the most severe constraints to rhe economic recovery of the region. A strategy for transport in support of the productive sectors may call for: - 78 -

(a) involving more systematicallylocal entrepreneursand other interest groups in the definition of the Office des Routes/. Kivu work program;

(b) continuing to rely on local entrepreneurs and nongovern- mental organizationsfor the maintenance of the feeder road network;

tc) emphasizing the maintenance and rehabilitation of intra- regional links; assessing realistically the economic and financial viability of completing the Bukavu-Kisanganiaxis in the medium-term and of expanding air transport facilities.

(d) strengthening the capacity of the regional administrationto administer the program; and

(e) monitoring the progress of ongoing studies on international transport links and examining their economic consequences for the Kivu region.

Education

7. In the education sector, the major issues of equity, efficiency, productivity, quality and management need to be addressed. Attention to the following appears crucial:

(a) reducing the number of teachers (the unqualified) and increasing the salaries of the rest. These actions should be accompanied by strict criteria for the opening of new schools and classes;

(b) allowing schools to retain tuition receipts (minerval) for their operating expenses;

(c) given the remoteness of Kivu and the poor road network, shifting the distribution of textbooks and school supplies from the inefficient centralized system to the private sector; and

(d) involving more systematically the religious bodies in sectoral policy formulation.

Local Administration

8. The most fundamental problems which beset public administration in Zaire are of a general nature and lie beyond the scope of this regional study. Upgrading the country's administrative capacity will require reducing the number of public employees, increasing the salaries of the rest and training them in critical functional areas such as financial management. At present, local administrationdoes not have the institutional base and/or financial resources to shoulder new responsibilities. The Government may want to consider:

(a) undertak±nag a study of local finance, on which very little information is available; and - 79 -

(b) assessLng training needs of local government officials and making recommendations on appropriate training programs. Expert assistance may be required for both the assessment and the implementationof these programs.

Regional Planning

9. The Kivu Regional Planning Unit lacks the mandate, the resources, the data base, as well as the expertise to prepare a regional development program, which would articulate the financing, phasing and priorities of various projects. In light of the Government's intention to prepare a five-year developmentplan (1986-1990)whose main thrust would be regional development, the question arises as to the possible role the 'Kivuplannlng unit would be expected to play. Expectationsregarding the involvementof the Kivu planning unit in the exercise should be realistic because of the prior need to (i) strengthen the capabilitiesof the regional field offices of ministries, (ii) improve the basic data system; and (iii) train the existing staff. The following measures deserve consideration:

(a) strengtheningthe coordinationrole which the planning unit of Kivu is expected to play among the field offices of the sectoral ministries and the local public and private organizations;

(b) providing the National Institute of Statistics in Kinshasa and its field offices with adequate funds to carry out their functions properly;

(c) drawing up and implementinga program to train the staff of the planning unit of Kivu (and other regions), in-house or through fellowships abroad. In the short term, foreign technical assistance may be required;and

(d) establishinga medium-term plan for the improvement of statistics. From the point of view of regional planning, the following statistical series deserve priority: output of agricultural crops, inter-regional trade flows by tonnage and value, migration flows, sources and distribution of regional and local government revenues.

Private Sector

10. Private sector enterprises and non-governmental organizations are playing a crucial role in the maintenance of infrastructure and the delivery of services in Kivu. Examples of private involvement include the provision of extension services by the cotton companies and ACOGENOCI and the maintenance of feeder roads by many private firms and NGOs. Non-governmental organizationsin Ki-vunot only manage schools and health facilities but also sponsor a number of small-scaleincome-generating projects in collaboration with other external NGOs. The contributionof NGOs to econoaic and social development, though on a small scale, can be measured by the active involvement of the local population in the various activities and high demand for existing programs. The availableevidence in Kivu suggests - 80 - that Government's interventioncan become more effective by making greater use of the skills of non-governmentalorganizations and the commercial private sector. Participation of these locally-basedgroups would increase accountability and result in more relevant, better-planned programs, that are less costly to put in place and to maintain. Although the provision of support services by private firms may in some instances result in monopoly pricing and/or diseconomies of small scale, these disadvantages may still be less costly than greater inefficiencies of Government services. It appears important to involve systematicallyprivate sector enterprises and groups such as ANEZA, the NGOs and cooperativesin the planning and management of development programs and projects.

C. Implicationsfor the External Aid Donors

11. It is desirable for IDA and the other donors to support whenever possible the actions recommended in paragraphs 4-10. Moreover, regional development stands to benefit from greater cooperation among the donors. In 1982 a promising start was made with the creation of the "EKvu Commit- tee', the aim of which is to coordinate development programs in Rivu. Ano- ther related development is the decision announced at the last Consultative Group Meeting of December 1983 to reactivate the External Resources Coordi- nation Committee (ERCC).1/ .Enhanced cooperation among donors would also translate into better Eooperation for assisting regional development. Through their intervention, donors can encourage the involvement of private firms and parallel organizationsin the regional development process. This study of Kivu has shown the complementarityof the sectoral and regional approache- Explicit consideratioa of regional aspects makes it possible to focus on the develoument potentialand problems of particular regions in a more concrece and integrativeway.

1/ The ERCC was reactivatedand given legal status on September 22, 1983. Its objectives are to be acnieved partly through the creation of a Com- mittee for the Follow-up of the ConsultativeGroup which had its first formal meeting on April 16, 1984. - 81 -

A N NE X E S Annex 1 -82 - Page 1 of 19

Ordonnance-LoiNo. 82-006 of February 25, 1982, Establishing the Territorial, Political and AdministrativeOrganization of the Republic

The Chairman and Founder of the Popular Movement of the Revolution, President of the Republic; Pursuant to the Constitutionand, in particular, to Articles 1, 2, 3, 35, 36, 41, 43 and 110 thereof; Pursuant to Decision No. G5-CC-81 of June 8, 1981 of the Party's Central Committee; And in view of the urgency of the situation; On the recommendationof the State Commissionerand Vice Premier, and of the State Commissionerfor TerritorialAdministration, HEREBY DECREES AS FOLLOWS:

TITLE 1: PRELIMINARYPROVISIONS

Article 1:

The Republic of Zaire shall be a unitary, democratic, social and lay State.

The Republic of Zaire shall comprise the City of Tinshasa and the following regions: Bandundu, Bas-Zaire, Equateur, TRaut-Zaire,Kasai-Occidental, Kasai-Oriental,Kivu, Shaba.

Article 2:

It shall be a decentralizedadministrative unit with the same legal personality as a region. Its statutes shall be determined by law. The city of Kinshasa shall be subdivided into urban areas. These shall be subdivided into neighborhoods (Quartiers).

Article 3:

The region shall be a decentralized administrativeunit, having legal personality. It shall be subdivided into subregions and cities (villes). Subregions shall be subdivided into rural zones and towns (cit8s). Citiesshall be subdividedinto urban zones. Rural zones shall be subdivided into communities(collectivit4s) and one or more towns. Urban zones shall be subdivided into neighborhoods. Communities shall be subdivided into groups. Groups shall be subdividedinto localities.

Article 4:

The Chairman of the PopularMovement of the Revolution, ?resident of the Republic, shall establish by order (Ordonnance):

- the capital and boundaries of the regions;- - the number, name, capital and bot.ndaries of the subregions and cities within a region; 83 -Annex Page 2I of _j

- the number, name and boundaries of rural zones within a subregion; - the number, name and boundaries of urban zones within a city; - the number, name and boundaries of towns.

He may, by order, constituteas a city, urban area or town, any sizable agglomerationlocated in a region, subregion or rural area.

Article 5:

Similarly, the Chairman of the Popular Movement of the Revolution, President of the Republic, shall determine by order the number, name and boundaries of communities,neighborhoods, groups and localities.

TITLE II: ORGANIZATIONALSTRUCTURE

CEAPTER 1: THE REGIONS

Section 1: Legal Status

Article 6:

The region shall be a decentralizedadministrative entity having legal personality.

Section 2: Orzans

Article 7:

The organs of the region shall be: (1) the Regional Committee of the Popular Movement of the Revolution; (2) the Regional Assembly; (3) the Regional Chairman of the Popular Movement of the Revolution; and Governor of the Region.

Subsection 1: The Regional Committee of the Popular Movement of the Revolution

A: COMPOSITION

Article 8:

The Regional Committee of the Popular Movement of the Revolution shall be composed of: (1) the Regional Chairman of the Popular Movement of the Revolutionand Governor of the Region: (2) the Chairman of the Regional assembly; (3) the Vice-Governorof the Region; (4) the Director of the Region; (5) the Urban Commissioner; (6) The Regional Secretary for Mobilization, Propagandaand Political Awareness (AnimationPolrtioue); Annex 1 - 84 - Page _ of _9

(7) the Regional Secretary for Women's Affairs (Condition Feminine): (8) the Regional Secretary for Youth of the Popular Movement of the Revolution; (9) the President of the Court-of Appeal; (10) the Attorney General at the Court of Appeal; (11) the Commander of the Military Region; (12) the Regional Administratorof the National Research Center (CNRI); (13) the Commander of the Military District; (14) the Regional Secretary of the Union of Workers of Zaire; (15) the Regional Chairman of the National Association of Zairian Enterprises.

3: POWERS

Article 9:

Without prejudice to the provisions of other laws, and specificallv the electoral law, the Chairman of the Popular Movement of the Revolution, President of the Republic, shall establish the powers delegated to the Regional Committee of the Popular Movement of the Revolution.

Subsection 2: The iegional Assembly

Article 10:

The Regional Assembly shall be a deliberativeorgan. It shall act by means of decisions. These snall be published or announced, as the case may be, by the Regional Chairman of the Popular XMovementof the Revolution and Regional Governor, in accordance with the law.

A: COMPOSITION

Article 11:

The Regional Assembly shall be composed of: (1) Key individualsin the region, appointed by the Chairman of the Popular Movement of the Revolution, Uresident of che Republic, making up one-third of ehe membership of the Regional Assembly; (2) Representativesof the urban councils elected by persons who were themselveselected, at the rate of three per urban council; (3) Representativesof rural zone councils elected by persons who were themselveselected, at the rate of one per rural zone; (4) Representativesappointed by economic and social interest groups at the rate of one per group.

Under the terms of this Article, the only economic and social interest groups considered shall be the National union of Workers of Zaire (UNTZA), the '.ational Association of Enterprises of Zaire (AlEZA), the 'National Association of Parents of UJniversityand School Students of Zaire (ANAVIRZA)and -B85 - Annex I Page 4 of 19

four recognizedmajor religiouscults, to be determined by order of the President of the Republic.

Article 12:

Persons making up the Regional Assembly shall be bnown as "Members of the Regional Assembly."

Article 13:

There shall be as many alternate members as members elected to the Regional Assembly. Alternate members of the Regional Assembly shall be called on to take the seats of members in the event of absence.

B: CONDITIONSOF ELIGIBILITY

Article 14:

The conditions of eligibility for (election co) the Regional Assembly shall be prescribed by the electoral law.

C: POWERS

Article 15:

Subject to the provisions of the present Ordonnance-Loior other legal texts, the Regional Assembly shall have jurisdictionover all matters of regional interest. The Regional Assembly shall have the power of decision in the following areas: (1) the establishment, within the limits of the Finance Law, of taxes and charges; (2) adoption of the regional budget and supplementary appropriations and issue of opinions on the proposed transfer of any appropriations requested, the regional budget of the region being submitted co the State Commissionerfor Territorial Administrationfor approval; (3) closing of the region's provisionalaccounts; (4) the acceptanceor rejection of grants and bequests to the region, authorizing the regional authority to obtain loans, subject to the approval of the supervisory authority; (5) the issue of administrativeand police regulations, authorizingpenalties not exceeding 30 days' imprisonment and 200 zaires in fines, or either of such penaltiesalone; (6) organizationof the policing of graveyards,shows and public gatherings; (7) support for the action program of the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region, and subsequent supervision of its implementation; (8) discussion of the program for the maintenance and imDro-ementof roads of regional interest; - 86 - PageAnnex 51 of 19

(9) supervision of the activities of the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region. It may not, however, under any circumstancesprescribe purely administrativeacts or encroach on areas reserved to the c.ntral authority and its local agents, in particularin the areas of justice, defense, internal and external security, foreign relations, etc.

Article 16:

The Regional Assembly shall express an opinion on: (1) the proposed names and boundaries of subregions,cities, rural areas, urban areas and towns; (2) the proposed number, name and boundaries of communities, neighborhoods, groups and localities; (3) the proposed urban development pLan for cities; (4) and generally all proposals on which it is called upon to express an opinion pursuant to laws or regulations,or about which it is consulted by the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region, acting either on his authority or at the request of the State Commissioner for Territorial Administration. The Regional Assembly may, on its own initiative, express an opinion on all matters of regional interest. Such opinions shall be forwarded by the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region to the central authorities. The Regional Assembly may request from the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region any information relatin3 to his actions.

D: FUNCTIONS

Article 17:

The Regional Assembly shall be elected for a five-year term running from the date of its installation.

Article 18:

The Regional Assembly is presided over by a Chairman, elected in accordance with the provisions of the electoral law.

Article 19:

The Regional Assembly shall meet twice each year in regular session. Regular sessions may not last more than 30 days.

Article 20:

The first regular session shall start ou the first Monday of February and the second regular session on the fir;L ;onday of August. -87- Annex I Page 6 of 19

Article 21:

The Regional Assembly may also meet in special session when local business so requires, on the initiativeof at least half of its memb-rs or at the request of the State Commissionerfor TerritorialAdministration or, with the latter's authorization,at the request of the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region. Discussions in special session may cover only such topics as appear on the agenda and were adduced as reasons for convening the special session.

Article 22:

Sessions shall be convened in writing by the officers of the Regional Assembly at least 15 clear days before the date of the session, with indication of the agenda. A copy of the notice shall also be sent 15 days in advance to the State Commissioner for Territorial Administration.

Article 23:

In any event, and even if not within the time limits prescribed under Article 20 above, the State Commissioner for Territorial Administration may have a matter included on the agenda or removed therefrom if it does not fall within the jurisdiction of the Regional Assembly. The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region may also propose the addition of items to the agenda.

Article 24:

No meeting may adopt decisions unless an absolute majority of its members is present. Decisions are adopted by an absolute majority of the members present. The chairman shall have the casting vote in the event of a tie. In the event that a quorum as indicated above is not achieved during the course of a meeting, said quorum shall not be required during the next meeting for items that were on the agenda of the preceding meeting. For the review of the budget, however, the quorum shall always be required.

Article 25:

The members of the Regional Assembly may not attend discussions of matters in which they have a personal interest.

Article 26:

Members of the Regional Assembly shall be entitled, for each session and for each of that session's meetings, to a fee the amounc of which shall be determined by the Chairman of the Popular Movement of the Revolution and President of che Republic.

Article 27:

Meetings of the Regional Assembly shall be open to the public unless three-quarters of the members present decide othervise. All meetings held to -88- Annex 1 Page 7 of 19

discuss the budget, taxes, borrowing and the accounts shall be open to the public. The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region, or his deputy, may attend sessions of the Regional Assembly with the right to speak in an advisory capacity. The Regional Assembly may invite as advisors any persons whose presence could, in the Assembly's opinion, be of assistance during the discussions. Such persons shall not be entitled to vote.

Article 28:

The chairman of the Regional Assembly shall arrange for the policing of the Assembly. He may eject from the meeting hall or have arrested any person who disturbs ihe peace. In the event of any violation, he shall draw up the pertinent report and the Attorney General of the Republic shall be immediately apprised thereof.

Article 29:

The chairman of the Regional Assembly shall forward the minutes of meetings to the State Commissioner for Territorial Administrationwithin eight days from the closure of each session. These minutes shall be countersignedby the Regional Chairman of the Popular Movement of the Revolution and G;overnorof the Region. Any person may examine the minutes in the region, without the need for the documents to be moved.

Article 30:

The term of a member of the Regional Assembly shall end: - upon expiration of the term as provided for in Article 17 above; - upon death; - upon resignation accepted by the Regional Assembly: - in the event of a permanent physical disability that prevents the member from performing his duties; - in the event of unjustified and unauthorized absence from meetings of the Regional Assembly, as provided in its rules of procedure; - in the event of loss of Zairian nationality; - through the assumption of a status incompatiblewith membership of the Regional Assembly; - in the event of: (a) sentencing for violation of common law to forced labor or penal servitude for six months or more; (b) insanity; Cc) withdrawal of civil and political rights; - for any other reason provided for in the electoral law.

Article 31:

The term of the Regional 4ssembly may, in the case of 'orce majeure, be extended by order of the Chairman of the popular Movement of the Revolution and President of the Republic for a maximum of one year. Annex 1 - 89 - Page 8 of IL

Article 32:

Members of the Regional Assembly shall be entitled to "attachment of privilege,'*as determined by a law.

Article 33:

The organizationand operation of the Regional Assembly shall be established in rules of procedure approved beforehand by the State Commissioner for TerritorialAdministration.

Subsection 3: The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region

A: APPOINbTMENT

Article 34:

The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region shall be appointed by the Chairman of the Popular Movement of the Revolution, President of the Republic, who shall establish the statutes pertaining to his appointment. He shall be assisted by a Vice-Governor of the region, who shall be appointed under the same conditions.

B: POWERS

Article 35:

The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region shall be both the Executive Council's representative and the regional authority. In this position, he shall assume responsibility for the proper functioningof State services in the region and for the efficient operation of the authorities in his area of jurisdiction. In addition to the specific powers conferred upon him pursuant to other provisions of this Ordonnance-Loi or to other laws, the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region shall perform the following specific functions: (1) He shall enforce the laws, regulations and decisions of higher authority or of the Regional Assembly; (2) He shall enforce Lwa and order in his region. For this purpose he shall have at his disposal the units of the national police assigned to the region; (3) He shall execute the State budget in his capacity as representative of the Executive Council in the region. He shall authorize expendituresand arrange for the collection of taxes, charges and fees within the limits and under the conditions establishedby the laws and regulations;

* Translator's Note: -Attachmentof privilegeappears to mean the right to be heard in a court of one's own choosing. Annex 1 90 Page 9 of 19

(4) He shall be responsiblefor the protection of State and regional property throughout his area of jurisdiction; (5) He shall, to the extent provided in the laws and regulations,exercise supervisionover all the administrativeunits in his region; (6) He shall prepare that section of the national development program that pertains to his region, for submission to the Regional Assembly for approval. Re shall assume responsitilityfor the executionof developmentprograms decreed by the Executive Council and the Regional Assembly; (7) He shall prepare budget projectionsfor the region which he shall submit to the Regional Assembly for approval,and shall ensure execution of the regional budget; (8) He shall prepare for his region, within the frameworkof directives issued by the Executive Council, the economic developmentactivities program, which he shall submit to the Regional Assembly for approval; (9) In an emergency, he may issue police regulationsand impose penalties not exceeding 15 days penal servitude and 100 zaires in fines, or either of such penalties alone. He shall keep the State Commissioner for Territorial Administration informed of such matters. The regulations so issued shall be ratified by the Regional Assembly at its next meeting; (10) He shall visit each subregionand area in his region at least once a year, for purposes of inspection and supervision, reporting on these visits to the State Commissioner for Territorial Administration; (11) He shall represent the region in court, in accordance with the law.

Article 36:

The Regional Chairman of the Popular Movement of the Revolution and the Governor of the Region shall send a quarterly report on the activities of his Subregional Commissioners to the State Commissioner for Territorial Administration. He shall submit an annual report on the general situation of the region to the State Commissionerfor TerritorialAdministration.

Article 37:

The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region shall forward annual budgetary projections for territorial services to the State Commissioner for Territorial Administration who shall approve them and forward them to the State Commissioner for Finance and the 3udget. The regional budget shall be included as a special section of the budget.

.Article 38:

In the exercise of nis powers, the Regional Chairman of the popular M1ovement of the Revolution and the Governor of the Regions (1) shall have at his disposal the servicts of all those civil servants and employees with the status of public-service Annex 1 - 91 - Page 10 of

career personnelwho are assigned to the region, and shall, in accordance with the provisions of the pertinent statutes and their implementingregulations, exercise in their regard a hierarchical authority including, inter alia: (a) disciplinary powers, which authorize the Regional Chairman of the Popular Xovement of the Revolution and Governor of the Region to impose or cause to be imposeddisciplinary sanctions against offending personnel; (b) the power to assign personnel; (c) the power to give orders, to give service instructions and to control, revise or cancel, where appropriate, any action undertaken by them; (2) shall have the right to inspect the activities of judges and of civil servants and employees of the judiciary system with duties in his administrative unit. For this purpose, the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region may request in writing or verbally any information relating to the running of the public prosecutor'soffices in his region. At least once each year, he shall forward to the State Commissionerof Justice a general report on the activities of judges and of civil servants and employees of the judiciary system, a copy of said report being sent to the State Commissionerfor TerritorialAdministration. (3) shall have the power to impose injunctionsupon the staff of public establishments and public enterprises operating in the region. The nature and scope of said power shall be determined in an order of the State Commissioner for Territorial Administration. The Regional Chairman of the Popular Movement of the Revolution and Governor of the Region shall act by decree.

Article 39:

In the event of absence or incapacity, the Vice-Governor of the Region shall subs;titute for the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region. In the event of the absence or incapacity of the Regional Chairman of the Popular Movement of the Revolution and Governor of the Region, and of the Vice-Governor of the Region, the Director of the Region shall deputize for them. -92- Annex 1 Page 11 of 19

TITLE III: DISTRIBUTIONOF RESPONSIBILITIESBETWEEN THE EXECUTIVE COUNCILAND THE DECENTRALIZEDBODIES

Chapter I: General Provisions

Article 172:

The distribution of responsibilitiesbetween the Executive Council and the decentralizedbodies shall be determined by law, and may only be abrogated by law.

Article 173:

Without prejudice to the other provisions of this Ordonnance-Loi,all matters relating to the general policy of the country and to national sovereignty shall be the exclusive prerogative of the central authority, specifically: - justice; - foreign relations; - national defense; - the internal and external security of the State; - commercial policy; - macro economic equilibria (grands equilibres economigues); - currency; - the State budget; - the drafting of legislation; - national equalization measures; - major national infrastructures in particular ports and airports; - postal services and telecommunications; - the main guidelines for regional development; - overall planning; - scientific and technologicalresearch policy; - education policy; - economic sectors deemed strategic: mines, hydrocarbons, and energy; - national public enterprises.

Section 1: Political and .4dministrativeMatters

Article 174:

Without prejudice to the other provisions of this Ordonnance-Loi, the power to determine the organization,powers and organic framework of local government authorities shall be the exclusive responsibilityof the central government.

Article 175:

The management of the permanent staff of State and parastatal agencies working for local bodies shall be subject to rules enacted by the central government. Anexc 1 -93 - Page 12 of 19

Article 176:

Without prejudice to the provisions of the preceding Article, - recognitionof the Chiefs of Communities and Chiefs of Groups, and their dismissal,shall be the responsibilityof the State Commissionerfor TerritorialAdministration; - the power to suspend territorialsupervisory staff, from the Assistant Zone Commissionerup to the Governor of the Region, shall be vested in the State Commissionerfor Territorial Administration; - the power to appoint and to dismiss territorial supervisory staff, from the Assistant Zone Commissioner up to the Governor of the Region, shall be vested in the Chairman of the Popular Movement of the Revolution, President of the Republic.

Article 177:

Without prejudice to other special provisions vesting authority in the Executive Council and local bodies, the local authority shall provide for the maintenance of law and order in its area. It shall coordinate and ensure the efficient operation of the activities of the various State services established in its area.

Article 178:

The local authority shall have disciplinaryauthority over career personnel employed in national public services, as provided for by the laws and regulations: - It shall have the right to inspect (the activities of) the supervisoryand other staff of national and parastatalagencies; - as regards the Highways Office, it may requisition the services of this agency operating in its area for execution of the local roads maintenance program.

Article 179:

The local authority shall also have the right to inspect and impose injunctions. on personnel employed by such specializedservices as the police and the National Research Center (CNRI) operating in the area. It shall supervise the actions of members of the Zairian Armed Forces (FAZ) operacing in its area and shall forward a documented report to the higher authority, the State Commissioner for Territorial Administration being apprised thereof. The local authority shall have the right to inspect the activitiesof judges and of civil servants and employees of the judiciary system operating in its area. For this purpose, the local authority may request in writing or verbally any information relating to operation of the prosecutor's offices in its area of jurisdiction. Annex 1 994 _ Page 13 of 19

Section 2: Economic, Financial and Development Affairs

Subsection 1: Economic

A. OFFICIAL APPROVAL OF PRICES*

Article 180:

The Executive Council shall be responsible for: (1) the drafting of basic legislationas regards the official approval and control of prices and inventories; (2) the fixing of prices of industrialproducts for domestic consumption,such as cement, sugar, wheat flour, oalm oil, beer, etc; (3) the fixing of prices of agriculturalproducts for export and processing; (4) the fixing of prices of oil products and of food products imported under aid agreements; (5) the fixing of price ranges for all categoriesof hotels; (6) the establishmentof tariffs for interregionalair, river, lake, rail and road transportation; (7) the establishmentof standards for weights and measures; (8) the fixing of prices of strategic products.

Article 181:

The Decentralizedbodies shall be responsiblefor: (1) the fixing of ex-factoryprices of industrialproducts exclusivelyfor local consumption; (2) wholesale and retail prices for local and imported industrialproducts; (3) cattle and poultry prices; (4) the price of fresh, dried or smoked fish; (5) the prices of harvested products or game; (6) the establishmentof service tariffs; (7) public transportation,taxis and taxi-bus fares, charges for regional highway transportationand funerals; (B) tariffs for restaurants,snack bars, "nganda' and other eating establishments; (9) the establishmentof restaurant tariffs on boats and long-distancetrains; (10) bar tariffs;

* Hission's note: EffectiveSeptember 12, 1983, there was a de jure liberalizationof all domestic prices which de facto had been set free during 1982 and early 1983. - 95 ~~~~Annexsl Page 14 of 19

(11) the fixing of prices of food staples, in particularrice, cassava, maize, peanuts, soybeans,etc.; As regards rice and maize, however, prices shall be fixed in coordination with the Executive Council.

B. PRICE CONTROL

Article 182:

The Executive Council shall be responsible for: (1) Inspection in all areas where the Executive Council is responsible for the official approval of prices; (2) the counter-inspectionand control of economic regulations reserved for the regions;

Article 183:

The decentralizedbodies shall be responsiblefor: (L) enforcement of legislation and economic regulations in areas under regional jurisdiction; (2) information and execution; (3) economic surveys; (4) the control of prices the official approval of which is the responsibilityof decentralizedunits; (5) the control of prices the official approval of which is the responsibilityof the Executive Council. The Executive Council, however, shall reserve the right to exercise direct control whenever required in the national interest; (6) The checking of weights and measures.

C. SUPPLIES

Article 184:

The Executive Council shall be responsible for: (1) the distributionof foreign exchange to manufacturing enterprises for commodity imports, taking account of the needs expressed by the local bodies; (2) imports passing through the banking system; (3) the evaluationof interregionalprojects; (4) the distributionof foreign aid and loans on the basis of lists proposed by the local bodies, taking obllgatorily into account the preferencesestablished by those bodies; (5) the distributionof local products based on lists proposed by the local bodies.

Article 185:

The decentralized bodies shall be responsible for: (1) the evaluationof needs; (2) the designation of the beneficiariesof the aid, loan and grant allocations from the Executive Council; (3) authorization of importers; Annex 1 96- Page l5 of i9

Subsection 2: Finance

Article 186:

Without prejudice to the special provisions regarding the distribution of responsibilities,the respective responsibilitiesof the Executive Council and the (decentralized)bodies in matters of public finance shall be determined by legal provisions and regulations,in particular by the finance law (loi financiere).

Subsection 3: Agriculture and rural development

Article 187:

The Executive Council shall be responsiblefor: (1) the design, organization,orientation and planning of national agriculturaland rural development policies; (2) . export agriculture; (3) training projects or farm, livestock or fishery production projects of national interest requiring foreign or Zairian participation; (4) the organizationof research institutionsin the area of agriculture and rural development; (5) agricultural inputs (selectionand import of seeds and tools); (6) legislationin agricultural,cooperative and rural developmentmatters; (7) the design and planning of housing policies; (8) preparationof the economic plan for the Republic.

Article 188:

The decentralizedbodies shall be responsible for: (1) the execution of rural housing policies, taking into account the type of materials available locally in each area; (2) the issuing of opinions on the preparation of the agricultural program; (3) activities affecting regional agricultural development and improvements in the living conditions of the rural population, in particular as regards agricultural cooperatives,savings and credit cooperatives, the organizationand planning of farmer communitiesand centers for the adaptation and production of improved seeds, farms, small holdings and training farms, agriculturaland crafts brigades, irrigation,water supply to rural zones, agricultural mechanization with the support of the rural bodies (Zones, Communities, Groups), buildings for livestock or the storage of agricultural produce, sanitation programs in rural areas, integrated social developmentactivities, integrated rural development centers, the marketing of agricultural products,and the distribution of agricultural inputs; - 97 Aannex1 P'age 16 of

(4) training projects and farm or livestock projects of rural interest; (5) the rational utilizationof technicaland specialized personnelin the various aspects of agricultureand rural development placed at the disposal of the local bodies by the central administration; (6) the organizationof fisheries; (7) the promotionof crafts activities; (8) the preparationof agriculturaland rural development programs, and their execution in accordancewith plans drawn up by the Executive Council, in accordancewith the standardsestablished under Zairian agriculturalpolicy and the rural developmentphilosophy defined by the Executive Council; (9) the planning of regional development,based on the order of priorities established by each local body, and the monitoring of public capital expenditure; (10) the storage, processingand packaging infrastructuresfor agricultural products; (11) the marketing of staple foodstuffs,in particular cassava, maize and rice, these being among the major items supplied to the large urban centers; (12) the supply to rural areas of basic industrial commodities, in particular those in the following categories: construction materials, textiles, packaging materials, certain tradable articles, etc.,in accordance with needs expressed by the local bodies.

Subsection 4: Public works and regional development

Article 189:

The Executive Council shall be responsible for: (1) the development and preparation of development plans, either initiated by the Executive Council or based on proposals submitted by the local authorities; (2) activities of a national characterarising out of the capital expenditureor ordinary budget, such as the purchase of vehicles; (3) passing on to the decentralizedlocal bodies the appropriationsearmarked for them;

Article 190:

The decentralizedbodies shall be responsiblefor: (1) the administrativehandling of public works and road maintenance in their areas; (2) the maintenance of all buildings belonging to the local bodies; (3) proposing the retirement of vehicles and their sale by auction, with the approval of the central authority; (4) the execution of developmentplans; (5) prerogatives, in matters of land subdivision,subject to legal provisionsgoverning the general system of ownership, the tenure and property systems and the securities systems; -98- Annex 1 Page It of lq

(6) building permits, subject to the opinion of the commission responsiblefor approving or rejecting applications. The following departments: Territorial Administration and Public Works must be kept informed.

Subsection 5: The environment, natural conservation, tourism

Article 191:

The Executive Council shall be responsible for: (1) planning and coordination,based on the national sanitation program, of activities designed to maintain a hygienic human environment; (2) vector control, in particular insect control in all forms: aerial spraying, spraying of streets, spraying in institutions(hospitals, schools, including boarding schools, bakeries, post offices); (3) the geographicalreconnaissance of areas requiring control measures, entomological surveys of vectors, and evaluation surveys to check on the quality and effectivenessof operations carried out.

Article 192:

The decentralized bodies shall be responsible for: C1) authorizing the collection and shipment of trophies (ivory, precious hides, etc.) in accordance with rules established by the Executive Council; (2) the opening and closing of hunting seasons throughout their areas, subject to conditions establishedunder legislation in force; (3) the issue of industrial fishing permits, subject to legislationin force; (4) the issue of wood felling permits within the limits and in accordancewith rules established by the Executive Council; (5) authorizationto operate hotels not officially approved and those in the -o star' category; (6) protection of sites located in their areas, as well as monuments and works of national art; (7) street cleaning, and the collection and disposal of household refuse; (8) the rehabilitation and maintenance of storm drainage systems; (9) making the population aware of environmental hygiene problems; (10) drainage and the cleaning of main drains. Subsection6: Xlning

Article 193:

The Executive Council shall be responsiblefor: (1) the issue of research permits to corporations; (2) industrial operations, the local authority being informed of the various authorizations issued to applicants; Annex 1 - 99 _ Page of

(3) the approval of sales outlets, on the recommendationof the local authorities; (4) the supervisionof sales outlets for crafts products end the establishment of activities reports;

Article 194:

The decentralizedbodies shall be responsible for: (1) the Issue of individualprospection permits and research permits; (2) the issue of permits for small-scalemining activities on the basis of criteria establishedby the ExecutiveCouncil; (3) the control of authorizedmining activities; (4) the issue of auchorizationsto transport mineral samples; (5) the drafting of reports on the activities of holders of small-scale mining rights; (6) the coordination of operatlons to control fraudulent dealings in precious minerals, at all levels: (7) collaboration with the mining companies, small-scale enterprlses and outlets with a view to achieving a coordinated policy regarding the implementation of agricultural programs; (8) checking on compllance with the legal obligations of industrial enterprlses in the area of agricultural and social development, keeping the Executive Council informed.

Section 3: Social and Cultural Affairs

Subsection1: Public health

Article 195:

The Executive Council shall be responsiblefor all matters relating to national health policies.

Article 196:

The decentralizedbodies shall be responsiblefor: (1) the opening and closing, at the expense of the local bodies concerned,of health establishments(hospitals, maternit7 hospitals,dispensaries and laboratories); (2) the establishmentof fees for medical services and examinationsin the above-mentionedestablishments, on the basis of criteria defined by the Fxecutive Council; (3) the opening end closing of pharmacies and pharmaceutical depots established in their areas.

Subsection 2: frimary and secondarv education

Article 197:

The Executive Council shall be responsible for: (l) the design, educational orientationand control of the representaciveregional institutions; - 10 0- Annex 1 a1g 19 of 19

(2) tuition and boarding fece; (3) the merger and transfer of primary schools as required, when proposed by the Regional Assembly.

Article 198:

The decentralized bodies shall have jurisidiction over; (1) the management of nursery, primary and secondary schools; (2) the appointment of heads of regional, primary and secondary education subdivisions seconded to the decentralized bodies; (3) the appointment and transfer of school principals, as proposed by the chief of the regional primary and secondary education division; (4) inspection and control of schools run by the decentralized bodies.

Subsection 3: Higher and maiversity education

Article 199:

All matters relating to higher and university education shall be the exclusive responsibility of the Executive Council.

Subsection 4: Social and cultural affairs

Article 200:

In general, the development and preparation of the social and cultural action program for internal use in Zaire shall be the responsibility of the Executive Council.

Article 201:

The decentralized bodies shall be responsible for: (1) issuing opinions on preparation of the social program of national interest; (2) the execution of social and cultural programs of national interest prepared by the Executive Council; (3) the preparation of local social and cultural actlon programs; (4) the establishment and canagemeut of social and cultural centers of local interest. - 101- Annex 2 Page 1 of 9

lREGIONAL.COMPARISONS

Chart

1 Administrative Divisions

2 Physical Features

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Inspection Regionale de l'Agriculture et du Developpement Rural

Organizationof the Division: From Region to Villaae Grouvs

I. KimU Region

Staff: Duties:

1 Division Chief: Regional Inspector - Coordinationand supervisionof of Agriculture and Rural Development agriculturaland rural promoticn activities in the region

Secretariat

'.AttachE de Bureau,* 2nd class 1 Agent de Bureau, 2nd class 1/3 Messenger

First Office Genera! Services

1.Office Chief - SuDervision and administration . Attache de Bureau, lst class (animation)of the Secretariat, . Attache de Bureau, 2nd class personnel management, acccuntimg . Agent de Bureau, Ist class and budget . .AgentAuxiliaire, lst class 1/6 Messenger

Second Office R.ezionr2 Studies -ad ?l'annin

Office Chief - Sucervision and ar^cistra_on cf

I Attach. de Bureau, is. class regional studies, statiszics anc 2 'Aents de Bureau, ist class repc-rs 1/5 Agent A"'ilziaie, 1st class

* Translazc-rsnoce: 21o Eng_s^ ecuival.entcou'ld be fo=d for os- of -hese grades. Annex 3 - 111 - Page 2 of 5

Third Office Office of Plant Production and Protec--

1 Office Chief - Coordinates the activities of the Office

First Unit Plant Production and Protection

1 Office Chief - Food crops, annual crops, perennial 2 Attaches de Bureau, 1st class crops, plant health measures 1 Agent de Bureau, 1st class 1/5 Agent Auxiliaire, 1st class

Second Unit Industrial Production

1 Attache de Bureau, 1st class - Agroindustries, small and 1 Attache de Bureau, 2nd class medium-sizedfarms 1 Agent de Bureau, 1st class 1/4 Agent Auxciliaire,1st class

Foux-thO0fice Animal Production and Health

1 Office Chief - Animal husbandary,Irevention and treatment of livestock diseases, livestock health policy

First Aima' 'roductionUnit

1 Attach6 de 3ureau, Ist class - Coordinationof the activitiesof

I Agent de Bureau, 1st class farms, raising small and large 1/3 Agen= Auxiliaire, 1st class livestock, aloc farmyard animals

Second Ani--l Production Unit

Office Chief - Veterinar--edicie, -rophy1axis ^-ac-' de Bureau, ls5 class and !lealth = icy 1 Attach; de 3-ureau, 2nd class l/c Agen Auzl--1iai=e,ist class - - Annex 3 Page 3 of 5 Fifth Ofice Rural Develomment

1 Office Cbief _ Rural promotion, agricultural ccoperatives, rural engineering

First Unit: .Markets. crices and seasonal credits

1 Attache de Bureau, 1st class 1 Attache de Bureau, 2nd class 1 Agent de Bureau, 1st class 1/4 Agent Auxiliaire, 1st class

Second Rural Eng-eering Unit

1 Attache de Bureau, 1st class 1 Attache de Bureau, 2nd class I Agent de Bureau, ist class 1i/IAgent de Bureau, 2nd class

Third Unit: Rural Develomme=-

1 Attache de Bureau, 1st class . Attache de Bureau, 2nd class 1 Age-t de Bureau, 1st class / Agent Auxiiiaire, ist class

Sub-region

1 Off ce Ch-ef: Inspector - Coordinat4onand suzer'rsic= of agriculturaland -ural -rootion activities in the sub-region

- General A-er-rices

1 Attach-e Ae 3B-eaeu, 2:-n c-ass =Agentde 3ureau, 2-d class :/1 M'essenger -113 - Annex 3 Page 4 of 5 Fi-st Unit: Plant Production

1 Attache de Bureau, 1st class 1 Agent de Bureau, 1st class 1 Auxiliaire, 1st cl.ss 1/4 Messenger

Second Unit: Livestock Production and Health

1 Attache de Bureau, 1st class 1 Agent de Bureau, Ist class 1 Agent Auxiliaire, 1st class 1/4 Messenger

Third Unit: Rural Develonuent

1 Attache de Bureau, 1st class 2. Agent de Bureau, 1st class 1/3 Agent Auxiliaire, 1st class

Zcnes

Agricultu.ral lmsmectiom Office for Each Zone

1 Attache de 3ureau, 1st class 3 Agents 4e 3ureau, 1st class 3 Agents le 3ureau, 2nd class 3/10 Messenger

IV.VillageGro=us (Coi ec-ivit&s)

3 Agents de Bureau, 'st class

. ocalti es .- renAux-74maire, 1st cZass (for 23 2ocal.4,es) - 114 - Annex 3 Page 5 of 5

VY. Agricultural Projects

. Division Chief (Project Director) a Office Chiefs 4Technical and Administrative Assistants)

'71I. Agricultural Centers

For the multiplication and reproduction of plant and livestock material. 1 Office Chief (Center Chief) 1 Attache de 3ureau, lat class (Technical Assistant) 2 Agents de 3ureau, lat claas h Agents AuxS'iaires,Ist class - 115 - Annex 4 Page 1 of 4

GREAT LAKES ECONOMIC COMMUNlTY

Similaritiesand Differencesbetween Member Countries

1, The Convention establishingthe Economic Community of the rGreat Lakes Countries (CEPGL) was signed in Gisenyi, Rwanda on September 20, 1976, by the Heads of State of Burundi, Rwanda and Zaire. Its purpose is to bring about economic integration among its member States and to pursue objectives consistent with the United Nations Charter and the Charter of the Organization of African Unity (OAU). Specifically, CEPGL is intended to: (i) ensure security of its member countries; (ii) promote political, economic and cultural cooperation;and (iii) facilitate free movement of persons and goods within the Community. This annex will (i) highlight the similarities and differences between the member countries; (ii) describe the institutional framework; and (iii) briefly assess the performance of the Economic Community so far.

2. Burundi, Rwanda and Zaire, with populationsof about 4, 5 and 28 (of which 5 in Kivu) milllon, respectively,make up the Economic Community of the Great Lakes (CEPGL), which covers a territory of about 2.4 million sq.km. (Attachment 1). The countries have a number of structural features in common but differ in terms of natural resources, economic management and recent economic performance. The salient characteristics which all three countries share are: landlocked geographical location, resulting in high transport costs for traded goods; poor internal transportationsystems; and serious poverty, which is mainly reflected in a low level of per capita income and in poor sanitary and health conditions. Rwanda and Burundi, which were formerly one country, share additional common traits: (i) small size; (ii) high density of population; (iii) hilly terrain and high average altitude; (iv) a predominantlyagricultural economy; and (v) lack of natural resources. They also face similar development problems: (i) heavy dependence on coffee for foreign exchange and government revenues; (ii) precarious balance between domestic food supply and population (which is particularly acute in R-vanda);and (iii) the pressure of people on land, which has led to cultivation of marginal lands, soil degradation,erosion and deforestation. Zaire, on the other hand, differs from its two eastern neighbors in two important ways: it is the third largest country in Africa; it has relatively low population density; and it is endowed with substantial natural resources (it has the largest cobalt reserves in the world, is one of the largest copper producers and has a significant unex- ploited agricultural and forestry potential).

CEPGL Institutions

3. The institutional framework established for achieving CEPGL's objectives includes: a Secretariat,a Regional Development Bank (BDEGL), and two specialized agencies: the Institute of kgronomic and Zootechnical Research (IRAZ) and the Organizationfor Energy (EGL). -116 - -Annex 4 Page 2 of 4

4. The Secretariat of CEPGL, located in Gisenyi, Rwanda, was set up in 1976 to design and execute programs and coordinate with the three national administrations. It is headed by an Executive Secretary and two Deputy Executive Secretaries, who are appointed for four-year renewable terms. The Conference of Heads of State, which meets in regular sessions once a year, is the key policy-making body of the Community. The Council of Ministers and State Commissioners, which meets twice a year in regular session, is generally composed of the Ministers of Foreign Affairs of the member States.

5. In addition to coordinating closely with the three national administrations, the Secretariat also has close institutional ties to the Economic Commission for Africa (ECA) and to the Gisenyi MULPOC (Multi- national Programming and Operational Center), an agency set up in October 1977 by the UN Economic Commission for Africa. The objective of the Gisenyi XULPOC is to provide assistance to the staff of the Secretariat in identifying and implementing projects and programs. The agency receives logistical support from the ECA headquarters (Addis Ababa), and partial funding from UNDP for technical assistance and preparation of feasibility studies for projects in the Region.

6. To carry out its mandate, the Secretariat receives budgetary support not only from the three member Governments, but also from a number of external donors: USAID, Belgium, France, and the European Development Fund. External assistance has been utilized for carrying out feasibility studies, technical assistance in economic planning and construction of housing.

7. CEPGL is promoting economic cooperation in agriculture, power, tourism and, in particular, industry. The Secretariat is thus organized into about ten operational divisions. Projects are submitted to the responsible division for a feasibility study following a formal request to the CEPGL from the Government concerned. In the industry sector, a number of projects are being considered or are underway for various products such as bottles and glass, corks, pharmaceuticals, agricultural tools, cement, plastic products and sugar.

8. The Great Lakes Community Development Bank (BDECL) was established in 1978 and formally began its operations in Goma, Zaire, in March 1980. The official justification for the creation of the BDEGL was to finance regional projects requiring substantial financing, but it could also participate in smaller operations, that are usually financed by the individual national development banks (BNDE for Burundi, R)RDfor Rwanda and SOFIDE for Zaire). Out of the authorized capital, originally set at SDR 25 million but raised to SDR 50 million in 1982, 50 percent was to be provided by Zaire, while Burundi and Rwanda were to contribute 25 percent each. As of end-1983, the three members and a number of national and international organizations had subscribed SDR 33.4 million, of which SDR 10 million had been paid-in. - 117- Annex 4 Page 3 of 4

9. BDEGL's pipeline includes the projects of the natlonal development banks but gives priority to operationswith co-financingand relies on the development banks for project preparation and appraisal. As a new institution, with modest capital and a small inexperienced staff, these aims are ambitious. As part of its ongoing operations, the Bank will participate on a small scale in the co-financingof the World Bank's Ruzizi II project. Belgium and the UNDP (with the World Bank acting as the executing agency) have agreed to provide technical asslstance in project appraisal to the Bank; however, the role of the BDEGL In regional development and its relationship vis-i-vis the national development banks remain to be clearly defined.

10. The decision to create the Institute of Agronomic and Zootechni- cal Research (IRAZ) was taken by the three heads of State at the Lubumbashi summit in 1979, and in September 1980 the General Assembly authorized the launching of activities. At Lts provisionalheadquarters on the outskirts of Gitega, Burundi, the organization is run by a Director General and two Directors from the other member countries. At the fourth General Assembly, held in Kinshasa Ln October 1982, IRAZ presented a Five-Year Plan for research.

11. The research mandate, work program and funding of IRAZ, as well as its very existence appear uncertain. A study carried out by a joint team from ISNAR (InternationalService of National Agricultural Research) and ITTA (International Institute for Tropical Agriculture) was prepared to inventory agricultural research and to decide what part of lt was or could be common.-/ The conclusion of the ISNAR mission was that there is baslc- ally no need for a fourth agricultural research institution, except to centralize international contacts and to set priorities for the three national research institutions. The specific recommendations of the mission included: (i) that IRAZ be limited to a coordinatingrole; (ii) that it limit its activities to the ecologically homogeneous highlands areas of the three countries; and (iii) that it be located in existing facilities in Bujumbura. A World Bank mission, which visited IRAZ in conjunction with the Farmlng Systems Study (para. 14) in July-August 1982, concluded that these recommendationsare basically sound. The mission also proposed that IRAZ's Five-Year Plan, recently drafted by a team of nine agronomists and veterinarians, should be reviewed by the World Bank and considered as a possible basis for coordinating research in the region. Despite the lack of a strong technical justificationfor IRA7, there is strong enthusiasm on the part of 3urundi and Zaire toward the institute: Burundi supports a community institution ln.Gitega, which would enhance its plans to move its capital there and Zaire feels that there are stronger political gains to be reaped from having a regional institute rather than a technical one focus- ing on the highlands areas.

12. The Organization for Energy (EGL) was originally formed in 1974 to promote electrificationof the region and was separate from CEPGIL. When

1/ Rapport d'une Mission ISNAR/ITTAauDres de 'IREAZ de la CEPGL (3urundi, Rwanda, Zaire), July 1981. - -118- .4nnex4 Page 4 of 4 absorbed by CEPGL in 1980 its responsibilities expanded to covering all energy-related matters. ECL's mandate is limited to the study and promotion of energy development. The first Bank Group-financed energy project, constructionof the Ruzizi II hydroelectric facilities, therefore, necessitated the creation of a new company Socigte Internationale d'Electricite des pays des Grands Lacs (SILNELAC)- to execute the project, and upon completion to operate the facilities and sell electricity to the three national power authorities.

Assessment

13. Despite the three governments'belief in regional development, the CEPGL has had limited success in either promoting regional trade or elaborating a common industrial strategy for the three countries. The principal cause for this failure has been inefficient commercial and monetary arrangements among the countries, mainly explained by (i) exchange rate differentials (e.g., the wide gaps between official and parallel rate for the zaire2/ and the Rwandese franc and Burundi franc); (il) con- flicting national interests, such as the building or expansion of sugar refineries in each country; and (iii) protectionist policies for national industries. It appears that, particularly for Burundi and Rwanda, where industrial production capacity is quite low, the CEPGL could play a leading role in discussions on removing constraints for regional trade, such as reducing tariff barriers among the countries, as well as on a trade and industrial policy vis-1-vis non-member countries.

2/ This was the case until the September 1983 devaluation and freeing of the exchange rate system. - 119 - Attachment 1

PROFILE OF THE ECONOMIC COMffWITY OF THE GREAT LARES (CEPGL) -

3URUNDI RWANDA ZAIRE

Area, '000 sq.km. 27.8 26.3 2,345.4 Agriculturalland (Z) 61.0 55.0 6.0

Population,millions (mid-1981) 4.2 5.3 29.8 Density per sq.km. 151 202 12 Density per sq.icm.agric. land 248 366 212 Annual growth rate (1970-80) 2.2 3.4 3.0 Urban population (%, 1980) 2.0 4.0 37.8

Average life expectancy (yrs., 1980) 42 45 47 Literacy rate (%, 1977) 23 50 58 Labor force in agriculture (%, 1980) 84 91 75

GNP per capita (US$, 1981) 230.0Q 250.0 210.0

Share of GDP (X, 1980) Agriculture 55 48 32 industry 16 22 23 Investment 14 16 11

Coffee (%.of Total Bxports)l/ 90.4 (76-79) 52.4 (78-8') 92.3 (78-81)

1/ For Zaire, the figure refers to coffee as a percentageof total agriculturalerDorts. -120- Annex 5 Page 1 of 7

LIST OF SELECTEDREFERENCES

GENERAL

American University. Foreign Affairs Studies, ed. by Irving Kaplan. Zaire - A Country Study. Washington, D.C., 1979.

Banque du Zaire. Rapports Annuels.

BucyalimweManano. Migrations Rwandaises vers la Zone de Masisi (Kivu, Zaire): prix d'une rationalisation. May 7, 1983.

Bureau d'etudes d'amenagementsurbains. 4menagementdu territoire, esquisse d'un schima national. January 1982.

Carael, M.G. Tondeur, U. Wils. 'Le Kivu Montagneux: surpopulation, sous nutrition, erosion du sol-. Les Cahiers du CEDAF, No. 2-3, 1979. de St. Moulin, Leon. -La Place de Kinshasa dans l'evolutionnational-, Congo-Afrigue,-August-September1971.

Doucy, Arthur et al, Etude des Conditious d'Ameliorationdu bien etre des Populations,Institut de Sociologie,University of Brussels, June 1976.

Institut National de la Statistique. Indice National des Prix. Kinshasa, April 1983.

JUA. Rebdomadaire du Kivu. 3ukavu.

MacCaffey, Janet. "Row to Survive and Become Rich Amidst Devastation - the Second Economy in Zaire,' African Affairs, Vol. 82, #328, July 1983.

ITALCONSULT. Etude Agro-Socio-Economiguede L'Ouest du Zaire. Societe d-lngegneriae Consulenza Attivita Industriali (SICAI), Rome, June 1977.

Newbury, Catharine M. 'EbutumaBw'emiogu: The Tyranny of Cassava a Women's Tax Revolt in Eastern Zaire,' Forthcoming in Canadian Journal of African Studies.

Peemans, J. Ph. "The Social and Economic Development of Zaire since Independence: An Historical outline-, African Affairs, Vol. 74, No. 295, April 1975.

Republique du Zaire. Les Atlas Jeune Africue. Paris, 1978.

Reyners, M. -L'Immigrationen zone de Masisi et de Kalehe', Goma, August 1980.

Spake, Bruce and Tshishiku Kabundi. Trip Report on visit to Uvira, Ruzizi Valley, and Kalemie from March 2 through March 14, 1982. U.S.A.I.D./Minshasa,March 29, 1982. Annex 5 121 - Page 2 of 7

Tshilombo wa Nshmiba. "Liberalisationdans le domaine des matieres precieuses et liquiditemon4taire au Zaire: quelques reflexions et recommandations," Zaire-AfrigueNo. 176, June-July-August1983.

United States Agency for InternationalDevelopment. A Brief Introductionto the Regions of Zaire. Kinshasa, March 1983.

WiorldBank. Zaire Economic Memorandum - Recent Economic and Sectoral Developmentsand Current Issues. Report No. 4077-ZR, December 30, 1982.

. Urban Sector Survey - Republic of Zaire. July 31, .973, Report No. 208-CK.

PUBLIC ADMINISTRATION

Administrationdu territoire. Zone de Beni. Rapport Annuel - 'xercise 1981.

Gould, David. -Local Administrationin Zaire and Underdevelopment,' The Journal of Modern African Studies, Cambridge,England, 15, No. 3, 1977, 349-378.

Katala Sok-Hayaz. 'Applicationdu Principe de l'unite de Commandement dans l'AdministrationR4gionale,n Cahiers Zairois de la Recherche et du Developpement,Volume XIX, 61-76, February 1974.

______.Quelques reflexions sur les rgfgmes zairois du personnel des zones et sous-regions urbaines de 1959 a nos jours, Cahiers Zairois de la Recherche et du Divelopoement,Volume XVIII, 137-157, January 1974.

Mpinga-Kasenda. L'Administrationpublique du Zaire, l'impact du milieu socio-oolitiauesur sa structure et son fonctionnement. Paris: A. Pedone, 1973.

Mpinga-Kasendaand D. Gould. Les Reformes Administrativesau Zaire (1972-1973). Kinshasa: presses 'Jniversitairesdu Zaire, 1975.

Nsaman 0. Lulu. -Le management face a la crise de l'Administration publique zairoise. Quelques temoignagesintrospectifs," Zaire-Afriaue, 271-280, May 1983.

Nzongola-INtalaja.Urban Administrationin Zaire: A Study of Kanaga. 1971-73. Ph.D. Dissertation,Madison, Wisconsin: University of Wisconsin, Department of Political Science, 1975.

Ordonnance-LoiNo. 82-006 portant organizationterritoriale, politique et administrativede la Ripublique du Zaire, !ebruary 25, 1982. _122 A4nnex5 Page 3 of 7

Rondinelli, Dennis A. et al. Decentralizationin Developing Countries - A Review of Recent Experience. World Bank Staff Working Paper, No. 581, 1983.

Schatzberg,Michael G. Bureaucracy,Rusiness, Beer: The Political Dynamics of Class Formation in Lisala. Ph.D. Dissertation, Madison, Wisconsin: University of Wisconsin, Department of Political Science, 1977.

Vieux, Serge A. L'AdministrationZairoise. Paris: Editions Berger-Levrault,1974.

Willame, Jean-Claude. Les Provinces du Congo: Structure et Fonctionnement. Leopoldville:Institut de Recherches Economiques et Sociales, Lovanium, 1964-65.

PLANNING

Ministry of Planning. Plan Mobutu: Programme de Relance Economigue 1981-1983, Kinshasa, Harch 1981.

Pprogramme Interimaire de RehabilitationEconomigue, 1983-85, Preliminary Draft. Kinshasa, October 1983.

URPD/Kivu. Region du Kivu, Bukavu, December 1981.

Synthese5 Economigue Regionale, Bukavu,1981.

_ SynthiseEconomigue Regionale, August, October, December 1982.

Rapportsx Annuels, 1981 and 1982.

POPULATION

Boute, R.F. Joseph, s.j. La PhysionomieDgmographigue de la R.D.C. en 1970. Kinshasa: Institut National de la Statistique,June 30, 1971.

"Lta population regionale du Zaire de 1956i 1975," Cahiers Economicueset Sociaux, Vol. XVIII, No. 1, March 19R0.

Boutr, J. and de St. Moulin. ?erspectivesdemographiques regionales 1975-1985. Dgpartement du Plan, Kinshasa, 1978.

Centre de Recherche et d'InformationSocio-Politiques (CRISP). Les Resultats du Recensement de la Population 1970 au Zaire. Bruxelles, June 15, 1972. de Saint Ifoulin,Leon. Atlas des Collectivitrsdu Zaire. Kinshasa: Presses Universitairesdu Zaire, 1976.

"esL Statistiquesfnlmographiques en Republique Democratique du Congo," Congo-Afriaue,

"Les" villes eL 2e developpement economique du Zaire," in J.P. Breitengross(ed.) Planificationet d6eveloppement Economigueau Zaire. Hamburg: Deutsches Institut fUr Afrika-Forschung, 1974.

Institut National de la Statistique. Etude Socio-Dfmographiquede Kinshasa, Resultats provisoires. Kinshasa, June 28,.1968.

. Projection de la Populationde la Republique du Congo Proposee pour la Periode 1970 a 1980. Kinshasa, March 16, 1972.

Ministry of Interior. Rgsultats officiels du recensement geneiralde la population de la R6publique Democratiquedu Congo. Xinshasa, July 31, 1970.

Romaniuk, Anatole. "The Demography of the Democratic Republic of the Congo- in The Demography of Tropical Africa by Brass et al, Princeton, N.J.: Princeton University Press, 1968.

AGRICULTURE

ACOGENOKI - Association cooperativedes groupements d'eleveurs du Nord-Kivu - Status modifies, (May 13, 1980.)

CIDA. Projet de developpementagricole du Nord-Est du Zaire, Kinshasa, July 1982.

Departement de l'Agricultureet du DeveloppementRural. Le Plan de Relance Agricole 1982-84. Kinshasa, February 1982.

______Rapport de missiou sur l'identificationd'un programme de d&veloppementrural pour la sous region du Nord-Kivu. Kinshasa, August 1983.

. Evaluation du Plan de Relance Agric8le 1982-84. Kinshasa, October 1983.

FAO. Commercialisationdu betail et des viandes dans le Nord-Kivu, Rapport de mission de F.J. Chagnaud,Januarv 1982.

FAO. Zaire - Le Secteur Cafe, Propositionsde D4veloDpementMission d'Identification. Rome: March 22, 1982.

'tatuala,K.K. Pour un droit foncier realiste et une justice 4ouitable dans le Nord-Kivu, May 1983.

Xatty, G.J.D. '?roblimes de Conservationet de commercialisationdu poisson au Rwanda, cas de la sardine du Lac Kivu-, May 1982.

Region du Kivu, Cabinet du gouverneur,Productions Vivieres Camoagne 1981-82, Bukavu, November 1982. -124- Annex 5 Page 5 of 7

Societe de developpementInternational Desiardins. Commercialisation des Produits Agricoles du Nord-Est du Zaire. (4 volumes) September 1981.

World Bank. Great Lakes Highlands Farming Systems Study. (December 30, 1983), yellow cover report.

INDUSTRY

ANEZA. Memorandum de l'ANEZA/Nord-Kivua l'attentiondu citoyen Premier Commissaire d'Etat en mission officiellea Goma - April 28, 1983, 15 pp.

Complexe agro-industrielsucrier de Kiliba. Etude de rehabilitationet d'extension,S.S.A. SOPEX N.V. Antwerpen-Belgique,October 1981.

Division Regionale de 1'Economie et de l'Industrie. Rapport Annuel 1975. Bukavu, 1976.

Institut National de la Statistique. Recensementdes Entreprises 1979. Resultats Statistiques1979, Kinshasa, July 1983.

Service Presidentiel d'Etudes. Les possibilitiesd'industrialisation du Zaire. December 1977.

Sominki, Rapport Annuel 1982, Rinshasa.

World Bank. The Manufacturing Sector of Zaire. Report No. 2212-ZR, October 29, 1979.

TRANSPORTATION

Office des Routes/Bukavu. Proces Verbal de la Commission Regionale, April 1983.

ONATRA, De'partementdes Votes Fluviales. RaDvort Annuel 1981. K inshasa.

Cabinet du Gouverneur de Region. 'rogramme 1983-1984 sous-r6gions Nord-Kivu, Sud-Kivu, May 1983.

_ Routes de desserte agricole, Programme 1982-83 sous-regiondu Xaniema et zones de Beni et Lubero, September 1982. - 125 - Annex 5 Page 6 of 7

* Routes de desserte agricole rapport d'inspection- sous-regiondu Maniema - zones de Beni, Lubero, Muenga, Bukavu, June 1983.

EDUCATION

Commissariatd'Etat de l'EducationNiationale. Convention de Gestion des Ecoles Natiouales. Kinshasa, February 26, 1977.

CoordinationNationale Catholique. Statisticuesdes Ecoles ConventionneesCatholiques, 1981-82. Kinshasa.

CoordinationRegionale pour les Ecoles ConventionneesProtestantes au Kivu. Rapport Annuel, 1981/82. Bukavu, 1983.

Division Rfgionale de l'EngeignementPrimaire et Secondaire,Kivu. Rapport pour 1'exercise 1982 - Sommaire. Bukavu, 1983.

Documentation on Institut Superieur de DeveloppementRural.

Institut Superieur de DeveloppementRural/Bukavu. (MUKA(quarterly bulletin of ISDR). 1980-82 issues.

NGO Is

Comite Anti-Bwaki. Analyse de la Malnutritionau Bushi. lBukavu,Kivu: Kivu-Presses,1971.

. Journee Commemorative, 15 ans d'existence 1965-80. Bukavu, 1981.

. 9'eme Rapport Annuel, 1980-81. Bukavu, 1982.

UNICEF, 'Aperqu sur l'1istoire de la Cooperationdans les regions du Kivu et du Haut-Zaire," Bukavu, August 1q83.

Village Pilote d'AgricultureModerne (VI-AM). Le Lien, (quarterly newsletter). La Lwana, Zaire, ;981-82 issues. - 126 - Annex 5 Page 7 of 7

OTHERSECTORS

Cooperative Centrale d'Epargne et de Credit du Kivu. Rapport Annuel 1983. Bukavu.

_ Quel Bilan?. Bukavu, April 1982.

Le Mouvement Cooperatif d'Epargne et de Credit au Zaire, 1969-81, Kinshasa.

REGIDESO, Direction regional du Kivu, Resultats et Comptes d'exploitat±on. Kinshasa, 1982. - 127-

STATISTICALAPPENDIX

LIST OF TABLES

Table No. Table Title Page No.

Sectien I : Population and Employment

1.1 Demographic Indicators,by Region, 1970 130 1.2 Distributionof the Rural Population and Rural Land Area, by Density and by Region, 1970 131 1.3 Kivu - Population and density per zone, December 31, 1982 132 1.4 Central and Regional GovernmentEmployment, 1974-81 133 1.5 Private Sector Salaries by Region, 1974-81 134

Sectio. I: : Agriculture

2.1 Kivu - Food Crops Comercialized, 1981 135 2.2 North-Kivu - Coffee and Tea Average by Type of Production Unit 136 2.3 North-Kivu- Livestock Herd by Administrative Sub-Zone and Type of Production Units 137 2.4 Kivu and Zaire - Fishing Potential and Actual Production, 1982 138 2.5 ?Xarketand Price Structure of North-.Kivu 139 2.6 Price Structure of Beef Originating from North-Kivu and Sold in Kinshasa, April 1983 140 2.7 -DA Financed Agricultural Projects by Region, as of June 1983 141 - 128 -

Table No. Table Title Page No.

Section III : Industry

3.1 Regional Distributionof Establishments,by Economic Activity, 1979 142 3.2 Regional Distributionof Establishments,by Size, 1979 143 3.3 Kivu - Selected Data for Manufacturing,by Sub-sector, 1979 144 3.4 Kivu - Numbers of Employees in Manufacturing,by Sub-sectorand Size of Enterprise,1979 145 3.5 Kivu - GeographicalDistribution of Industrial Establishments,by Size of Establishments,1979 146 3.6 Kivu - Taxes and Levies on Beer, June 1983 147

Section IV : Transportation

4.1 Office des Routes - Road Network 148 E.2 Office des Routes - Regional Distributionof Working Units 1 9 4.3 Kivu - Personnel of Office des Routes, 1983 150

4.4 K_vu - Office des Routes - Equipment, July 1983 151 4.5 Kivu - Office des Routes, 1983 Budget 152

Section V Energy

ElectricityInstalled Capacity, by Region, 1979 153 ElectricityConsumption, by Regicr, 1974, 1979-80 154 ?etroleum Produc: Storage Capacity, by Region 155 5.4 Consumptionof ?etroleum Light Froaucts, by Region, 1981 156 129 _

Table No. Table Title Page No.

Section VI : Finance

6.1 Commercial Bank Loans for Agriculture,by Region, December 31, 1981 157 6.2 Bank Current Accounts, by Region 158 6.3 Bank Term Deposits,by Region 159 6.4 SOFMDE: Breakdown of Approvals, by Region 160 6.5 SOFIDE: Loans and Investments in 1982, by Sector and Region 161

Section VII : Education

7.1 Kivu - Summary Table of Prinary and Secondary Education, 1979/80-1981/82 162 7.2 Kivu - Ordinary Budget for Primary and Secondary Education, 1981-82 * 163 7.3 Kivu - Budget for Regional Inspection of Primary and Secondary Education, 1981-82 164

Section VIII : Health

8.1 Social Indicators,by Region, 1980 163 8.2 Kivu - Number of Hospital Beds, by Sub-region, 1979 166 8.3 Kivu - Medical Personnel, 1979 and 1982 167

Section LX : Other

9.1 Public Investment Program, 1981-83, by Region and Sector 168 9.2 imvu- Projects in 1983-85 PIP, by Sector 171 9.3 Inflation Rates in Regional Capitals, bv Consumption Categories, 1980-82 174 Table 1.1: Demographic Indicators, by Region, 1970

Aninual Natural Sex Ratios Age Ratio (%) Crude Crude Growtli Rate Population Rural (M/IOOF) (Under 18 yrs.) Life Birth Death lst.Pop. 1958-70 Density Pop. UIrban Total Mlale Female Expectancy Rate Rate (ihous.) (%) (per kni) (%) (Years) (%) (%)

Kinsliasa 1323 4.2 649 70.9 116.8 116.8 50.7 49.3 48.5 54.9 15.0

Blas-Zaire 1504 3.0 25 80.6 108.9 92.1 48.0 52.0 43.6 52.3 19.3 llandtindu 2601 2.5 9 88.3 114.1 91.6 47.8 52.2 42.3 50.9 20.8

1Equateur 2432 1.9 6 90.0 107.5 94.1 48.9 51.1 45.8 42.4 17.4

Ilaut-Zaire 3356 1.0 7 85.9 102.3 93.9 48.6 51.4 44.9 39.5 18.1

Kivui 3362 2.7 13 90.7 104.4 94.2 48.5 51.5 41.7 52.3 20.4 1

Shiaba 2754 3.1 6 70.4 109.8 97.6 49.4 50.6 48.0 50.0 15.7 o

Ktasal Oriental. 1872 2.3 11 82.6 102.0 92.3 48.0 52.0 44.8 47.6 18.2

Kasai Occidenital 2434 1.7 15 76.5 96.7 94.3 48.6 51.4 37.4 49.1 24.7

Zaitre 21638 2.3a/ 9 78.5 105.0 95.2 48.7 51.4 43.5 48.2 19.0

a/ Tlils does not reflect the census result of 4 percent population growth rate. Tlhe political disturbances of the 1960's resulted in a high deathi rate, particularly among children, and in a substantial deterioration of the pIublic lealthi system, characterized by a rapid drop in the number of medical personnel and in constant shortages of medicine. Tlherefore, according to de Saint Moulin and Nicolari, a growthi rate of around 2-2.3 percent appears to be a mijore probable growth rate. At this rate, tihe 1970 population would approach 19 million instead of 21.6 million.

Sources: "Projection de la Population de la Republique du Zaire propos6e pour la p6riode 1970 a 1980", INS, "l.es Kesultats du recenseinent de la Population 1970 au Zaire", Centre de reclierchie et d'inforniatioi Soc lo-p ol]Itiques - CRISP, Brussels, Jutne 15, 197?. I.&Mde Saint Moulln, Atlas des CollecLivitl.s tiu Zaire, Presses Universitaires du Zaire, Kinshasa, 1976. Re6suIlL.ts officluls dUi recensewiient 'dnL6ral de la Ponulation de la-6publinue du Conuo Ministry of the Tnt-rior Tab le 1.2 D)istribuLtion of t1h lturail Populalioll ald lttiralL.and Area by Deonsi ty aidtl by Region, 1970 (perceuta8e)

I1ia&- Ilaiut- Ka.4ai Kasai I)ell ity sr 11.1(llundIuII\ Slhaiba KivUL Zaire Occittentiil Oriental Equateur To:L

** Rural lPopuilatiol ** 2 i.tSS tihail oune person/KnI - 0.47 - 0.09 2.20 - 0.88 0.43 0.60

I to 2 per:sons/KIn1 2 - 4.98 34.28 5.08 11.72 2.15 13.01 11;13 10.43 3 to 5 per8ons/K:n1 2 0.65 15.09 19.52 12.27 14.06 8.33 15.42 23.42 14.33 6 to 9 persols/Knl 2 5.37 11.04 25.61 5.38 17.74 24.02 12.78 26.82 15.84 10 Lo 19 parssois/KnI2 18. 89 35.14 13.48 7.64 15.68 29.37 12.12 28.40 19.59 20 to 49 persom1s/KOII2 54.82 30.91 4.14 20.12 16,32 31.47 25.70 9.80 21.82 50 Lo 99 persons/Kin" 14.32 2.37 2.97 18.56 17.44 4.1)6 16.16 - 9.99 2 10()persons andi more/KI 5.95 - - 30.86 4.84 - 3.93 - 7.40

** Rural Laud **

2 Less tiLulloue porson/K1 - 4.16 3.15 l7.67 2.04 - 7.19 - 5.770 I to 2 persons/Knu2 - 24.73 30.57 35.47 33.24 63.54 42.02 11.96 37.00 3 to 5 persons/Km2 3.00 28.86 32.97 20.64 34.53 17.67 25.49 19.66 24.57 6 to 9 persons/KMO 16.88 11.46 19.39 14.60 8.50 13.69 11.93 32.70 15.18 10 Lu 19 pursonis/Kn2 31.40 21.28 11.93 6.65 7.68 '.25 6.06 21.97 10.58 20 Lo 49 persons/Kli(2 42.35 9.21 1.99 3.12 7.48 0.67 5.48 12.52 5.41 50 Lo 99 pursons/KIm12 5.06 0.30 - 1.58 3.50 0.18 1.55 1.19 1.11 2 100 persons iidti nore/Kin 1.31 - - 0.27 3.03 - 0.28 - 0.45

MumoiLe'01. Total Rural lPopulation 1,266.7 2,342.2 1,932.2 3,070.0 2,911.2 1,444.6 1,202.8 2,188.8 16,357.7 ( Lllolt. ) Source: I..du SL. Moulin, Atlas diesCollectivit8s (lu Zaire. (Kinislihsa:Presses Universitairesdti Ziire, 1976) p.20 - 132 -

Table 1.3 Kivu - Population and density per zone (December 31, 1982)

Sub/region/zone Area Population Density (RmZ) (Thousand) (Pop./ Km') Urban Sub-region

Bukavu

Bagira 38 56.5 1,487 Ibanda 12 41.1 3,425 Kadutu 10 64.4 6.440 60 162.0 2,700

Rural Sub-regions

Maniema

Kabambare 19,513 106.2 5 Kasongo 16,201 221.5 .17 Kibomgo 24,953 46.7 2 Kindu 21,181 147.2 7 Lubutu 16,055 50.6 3 Pangi 14,542 148.7 10 Punia 19,805 79.4 4 132,250 800.3 6

N'orth-KRvu

Beni 7,484 517.7 69 Goma 405 112.3 277 LuDero 18,096 587.1 32 Masisi 4,734 453.2 96 Rutshurn 5,289 399.0 75 Walikale 23,475 145.7 6 59,483 2,215.0 37

South-Kwvu

Fizi 15,786 146.6 9 Idjwrri 281 72.3 257 Kabare 1,960 313.2 159 Kalehe 5,707 204.1 36 .iwenga 11,172 157.9 14 Shabunda 25,216 191.6 8 Uvira 3,148 248.9 79 TWalungu 1,800 331.8 184 65,070 1,666.4 26

Total Region 256,863 4,843.7 19

Source: Kivu, Division Regcionale de l'Agriculture. T'able 1.4 : Central and Regional CovernmenitEmployment (Thousanids)

1974 1976 1978 1980 1981

No. X No. x No. % No. % No.

A. Central Coverniiient 193.5 70.1 240.3 77.4 338.7 86.2 392.1 90.7 n.a. n.a.

of wlhichI Educatlull (133.0) (48.2) (172.4) (55.5) (221.5) (56.4) (249.9) (57.8) (285.9) (64.1) La

.B. Regions 82.7 29.9 70.1 22.6 54.3 13.8 40.4 9.3 n.a. n,a.

'I'otal 276.2 100.0 310.4 100.0 393.0 100.0 432.5 100.0 446.1 100.0

SOurce: Bank of Zaire, AnniualReport. - 134 -

Table 1.5 : Private Sector Salaries by Region (percent)

Region 1974 1976 1978 1980 1981

Kinshasa 35.8 38.7 40.7 40.1 40.0 Bas-Zaire 7.5 5.2 6.1 5.7 6.0 Bandundu 1.6 1.7 1.8 1.7 1.8 Shaba 37.4 27.5 26.2 24.1 24.2 Kivu 7.6 12.9 12.4 9.4 8.5 Haut-Zaire 5.1 8.1 6.4 6.9 6.9 Kasai-Occidental - 0.6 0.5 0.5 0.5 Kasai-Orienral - 1.8 2.0 3.2 3.8 Equateur 5.0 3.5 3.9 8.4 8.3

Total 100.0 100.0 100.0 100.0 100.0

Source: Bank of Zaire, Annual Report - 135 -

Table 2.1 : Kivu - Food Crops Commercialized, 1981 (Thousand)

Production Percent Production Food Crop Total Production Coomercialized Commercialized

Rice paddy 90 20 22.2

Peanuts 94 11 11.7

'manioc 3236 235 7.3

Potatoes 148 13 8.9

M.aize 177 16 9.0

Beans 217 52 24.0

Peas 18 3 16.6

Bananas 557 111 19.9

Sweet Potatoes 416 15 3.6

Vegetables 18 3 16.6

Source: Civu, Regional Division of Agriculture. - 136 -

Table 2.2 North-Kivu - Coffee and Tea Acreage by Type of Productiou Unit (hectares)

Plantationsas TraditionalFarms Plantations Total percentage total

Arabica coffee 28,283 4,879 33,162 14.7

Robusta coffee 33,186 6,585 39,771 16.6

Tea 1,374 3,176 4,550 69.8

Cinchona 1,435 549 1,984 27.7

Source: Annual Report of the Agricultural Service of Norrh-Kivu sub-region. - 137 -

Table 2.3 North-Kivu - Livestock Herd by Administrative sub-Zone and Type of Production Units

Tocal Zone Traditional Modern No. percent

Coma 6,800 200 7,000 2.8

Masisi 140,000 30,000 170,000 69.4

Rutshuru 39,500 3,500 43,000 17.4

Walikale 5,000 - 5,000 2.0

Lubero 9,700 1,300 11,000 4.5

Beni 8,000 1,000 9,000 3.7

TOTAL 209,000 36,000 245,000 100.0

Source: F.J. Chagnaud, ''Commercialisation du betail et des viandes dans le Nord-Kivu'", (januarv 1982) - Consultant report for FAO. -1 8 -

Table 2.4 : Kivu and Zaire - Fishing Potential and Actual Production, 1982 (Tons)

Potential Production Actual Production Minimum percent LMaximum percent, 1982 percent

Kivu

Lake Vitshumbi 15,000 20,000 4,629

Lake Kivu 15,000 30,000 305

Lake Tanganyika 135,000 145,000 16,450

Tocal Kivu 165,000 50.1 195,000 26.9 21,557 22.0

Rest of Zaire 164,500 49.9 530,000 73.1 77,000 78.0

TOTAL 329,500 100.0 725,000 100.0 98,557 100.0

Source: Ministry of Agriculture,Evaluation du Plan de Relance Agricole 1982-84, October 1983. *-139_

Table 2.5 : Market and Price Structure of North-Kivu Products co Kinshasa Consumer (January-April 1983)

Beans Potatoes Z/kg Z/kg Transport by Air from Goma

Price paid by cooperative or collector to producer 2.5-3.0 1.5-2.5 Price paid to cooperative or collector by trader-trucker 3.0-3.5 2.5-3.0 Price paid to trader-trucker by Goma shipper 4.5-5.5 3.5-4.5 Cost of Air transport to Kinshasa 3.5-4.5 3.5-4.5 Price paid to semi-wholesaler or wholesaler by Kinshasa retailer 10.0-11.0 10.0-12.0 Price paid retailer by consumer 15.5-16.5 15.0-18.0

Transport by Road and River via Kisangani a/

Price paid by cooperative or itinerant trader to producer 2.5-3.5 1.0-1.5 Price paid to cooperative or itinerant trader by trader-trucker 3.0-4.0 2.5-3.5 Transport cost to Kisangani by road 2.5-3.5 2.5-3.5 Price paid to trader-trucker by semi- wholesaler of Kisangani or Kinshasa 5.5-6.0 6.0-8.0 Transport cost to Kinshasa by river 1.0 1.0 Price paid to semi-wholesaler by Kinshasa retailer 9.0-10.0 10.0-12.0 Price paid to retailer by consumer 15.0-16.5 15.0-18.0

a/ This description of the price and market structures does not explicitly take into account losses, handling costs, taxes, etc.

Source: Ministry of Agriculture, Rapport de mission sur l'identification d'un programme de developpement rural pour La sous-reeion du Nord-E-ivu, Kinshasa, August 1983. - 140 -

Table 2.6 : Price Structure of Beef Originating from North-Kivu and Sold in Kinshasa, April 1983

Traditional Modern Z/Kg percent Z/Kg percent

1. Price of live cattle at Mushaki market 8.13 20.3 15.03 25.1 Tax .Mushaki Market 0.02 0.02 Tax transport 0.01 0.01 Transport Mushaki/Goma 0.20 0.24

2. Cost of live cattle, Goma 8.36 20.9 15.30 25.5 Slaughter tax 0.04 0.04 Slaughter fee 0.32 0.38 Sale of fifth quarter (0.70) (1.73) Transformation rate (%) 50 50

3. Cost at cold storage, Goma 16.03 40.1 28.00 46.6 Freezing 2.00 5.0 3.00 5.0 Loss bv dessication 0.75 1.29 'Stockinette'" 0.40 0.70 Air transport Coma/Kinshasa 4.50 11.2 4.50 7.5 Tax R.V.A. O.U5 0.05 Regional tax 0.11 0.11 Coma Wnolesaler margin 1.16 2.9 1.85 3.1

4. Cost at airport Kinshasa 25.00 62.5 39.50 65.8 Transport Kinshasa 0.10 0.20 Kinshasa Wholesaler margin 6.20 15.5 7.30 12.2

o. Sale price carcass Kinshasa wholesaler 31.30 78.3 47.00 78.3 Kinshasa retailer margin 8.70 21.7 13.00 21.6

6. Rerail price Kinshasa 40.00 100.0 60.00 100.0 (carcass equivalent)

Source: Ministry of Agriculture, Rapport de mission sur l'identi-ication d'sr. oroeramme de d6veioooement rural pour la sous-region du Nord-:Kivu, Kinshasa, August 1983. - 141 -

Table 2.7 : IDA Financed AgriculturalProjects by region, as of June 1983 (Million US$)

Commitments Region Project (date of effectiveness) Total IDA

Bas-Zaire Kwilu-NGONGO (1981) 80.4 26.4

Bandundu Kwango-Xwilutechnical assistance 5.9 2.9 (1981)

Shaba First livestock (1973) 15.0 8.5

Kivu Second Cotton Rehabilitation1/ (1983) 39.3 11.3 (ESTAGRICO)

Haut-Zaire Ituri livestock (1977) 27.1 8.0 Second Cotton (SOTEXCO)l/ Oil Palm (1981) 2/ ka'asai-Occidental -- -

Kasai-Oriental Smallholdermaize (1980) 38.5 11.0 Second Cotton (La Cotonniare) 1/

Equateur Cotton Rehabilitation(1976) 14.6 8.0 Oil Palm 2/ 57.4 9.0

Total 278.2 85.1

Mon-Region Agriculture technical assistance 6.0 5.0 (1982)

Toccl 2S3.2 90.1

, Amount to be allocatedamong La Cotonniere,SOTEXCO and ESTAAGRICO.

21 Amount was to be allocated among CC?, PLZ and Busira-LomaniEstates. The later firm has since withdrawn .rom the nroject. T'able3.1 : lRegioualDistr1butiozt of Establishments,by Economic Activity, 1979

Agriculture Extractive Forestryand lndustrles Rugl -- r[isiang limcl.mining Manufacturing Total No$ No. 2 NO. Z No.

K1nuililsa 68 6.6 4 12.9 434 38.1 506 23.0

Bas-Zaire 132 12.8 4 12.9 116 10.2 252 11.4

B;linndituidi 122 11.8 - - 80 7.0 202 9.2

Slhaba 197 19.1 10 32.2 188 '6.5 395 17.9 KIvt S120 11.6 5 16.1 84 7.4 209 9.5 * llatft-Zaire 102 9.9 2 6.5 115 10.1 219 10.0

Kasai-Occldelital 130 12.6 5 16.1 46 4.0 181 8.2

Kuual-Orlental 50 4.8 1 3.2 33 2.9 84 3.8

IEqiuaLeur 112 10.8 - - 43 3.8 155 7.0

'T'otal 1,033 100.0 31 100.0 1,139 100.0 2,203 100.0

Sotirce: latitut NatLionllde la Statistique,Relpertoire des etabliusementsrecenses, (Annex I), avril 1982. Trable 3.2 : ltegionial MLatribulJon of HatablishineuitsL by size, 1979

8'nauI Average Large Very Large Total l:lion No. No. No. Z No. No.

KInaliasaa 373 24.0 56 22.3 59 18.8 18 22.2 506 23.0

Ilas-ZaIre 182 11.7 24 9.6 38 12.1 8 9.9 252 11.4

JlundlIlndt 133 8.5 38 15.1 30 9.6 1 1.2 202 9.2

Slhabla 298 19.1 33 13.1 47 15.0 17 21.0 395 17.9

K.lvt 128 8.2 26 10.4 45 14.4 10 12.4 209 9.5

h1auL-ZaIre 106 6.8 42 16.7 56 17.9 15 18.5 219 10.0

KLasai-Oecidental 163 10.5 10 4.0 8 2.6 - - 181 8.2

Kasai-OrientLL . 73 4.7 5 2.0 4 1.3 2 2.5 84 3.8

E'cilateur 102 6.5 17 6.8 26 8.3 10 12.3 155 7.0

'I'otul 1,558 100.0 251 100.0 313 100.0 81 100.0 2,203 100.0

Nole: Small: from 5 to 49 employees Average: from 50 to 99 emiployees large: from 100 to 499 employees Very L.arge.: more tliain 500 emiployees

Source: InsLilut Natlonal de la Statist:ique, R6purtoire des Etablissemnents recenses (Annlex 1), avril 1982 - 144 _

Table 3.3 : Kivu - Selected Data for Manufacturing, by Sub-sector, 1979

Number of Number of Wages + Sub-sector establishments employees Output Salaries (thousand Z) (thousand Z)

Food products 47 5184 86694 7573

Beverages and tobacco 3 215 7948 1759

Textiles and garments 3 663 4478 819

Leather and leather goods -- - -

Wood and wood products 12 607 7247 356

Paper and printing 7 222 2736 240

Chemical, petroleum, 5 302 10405 486 rubber, plastic products

Non-metal mineral 6 395 568 229 products

Basic metal products - - - -

Fabricated metal 1 21 45 14 products

Other

TOTAL 84 7609 120121 11476

Source: tastitut National de la Statistique, Recensement des EntreDrises, 1979, July 1983 - 145

Table 3.4 :Kivu - Number of Employees in MXanufacturing by Sub-sector and Size of Enterprise, 1979

Very Sub-sector Small Medium Large large Total Expats (5-49) (50-99) (100-499) (500)

Food products 1011 639 2891 643 5184 38

Beverages + 45 - 170 - 215 6 tobacco

Textiles + 62 - 601 - 663 2 garments

Leather + - - - - - leather goods

Wood + 195 307 105 - 607 5 wood products

Paper + 222 - - - 222 3 printing

Chemical, 85 112 105 - 302 8 petroleum, rubber, plastic goods

Non-metal 300 95 - - 395 mineral goods

Basic metal - - - products

Fabricated metal 21 - - - 21 products

Other ------

TOTAL 1941 1133 3872 643 7609 62

Source: Institut National de ia Statistiaue, Recensemenc des Entreprises, 1979, July, 1983 - 146 -

Table 3.5 : Kivu - Geographical Distribution of Industrial Establishments by Size of Establishment, 1979

Very Subregion/zone Small Medium Large large TOTAL (5-49) (50-99) (100-499) (500)

BUKAVU 15 3 1 - 20

Bagira 3 1 1 - 5 Ibanda 12 2 - - 1;

SOUTH KIVU 15 4 7 1 28

Kabare 4 2 1- - 8 Kalehe 3 - 2 - 5 Zwenga 3 - - - 3 Shabunda 1 - - - 1 Uvira 3 - 2 1 6 Walungu 1 2 2 - 5

'!ANIE4LA 10 5 5 1 22

Kasongo 4 3 1 - 9 Kibombo - 1 1 - Kindu 3 - 2 - 5 Pangi 3 1 1 1 6

NORTH KIVU 8 3 6 - 17

Beni 1 1 3 - 5 Goma 2 - 1 - 3 Lubero I I - - 2 Xasisi 2 - - - 2 Rutshuru - - 2 - 2 Walikale 2 1 - - 3

TOTAL 48 15 19 2 84

Source: Institut National de la Statistique, R6censement National des Entreprises, 1979, July 1983. - 147 _

Table 3.6 : Kivu - Taxes and Levies on Beer, June 1983 (zaires per crate)

Ex-factory price 53.78

ConsumptionTax 1.12

Economic Recovery Fund 1.10

Equalization Tax 1.00

National Urban Tax 0.24

Regional Development Tax 4.00

Complementary Urban Tax 3.76 11.22 1/ Special Premium - 23.00

Price per crate 88.00

Source: Bralima - Bukavu.

1/ 'Prime conventionelle' I'able4.1 : Offtce des Routes - Road Network

Area of Secondary Area Regloni National l'riorityRegional Regional Total per km (km2) (km) (km) (km) (km) of Road Paved Cravel Earth Total Oravel Eartht Total Earth (kmi) llus-Zaire 61,250 601 210 569 1,380 270 621 891 869 3,140 20

Banlitidiu^duI 295,059 361 190 1,626 2,177 210 3,295 3,505 3,160 8,842 33

KEJluatMur 401,342 - 90 2,849 2,939 120 2,587 2,707 3,158 8,804 46 llaut-Zalre 502,242 123 115 3,374 3,612 120 3,458 3,578 3,075 10,265 49

KLVLI 258,545 408 150 2,335 2,893 170 2,469 2,639 1,932 7,464 35

Sliaibt 489,639 486 280 3,298 4,064 290 3,734 4,024 2,958 11,046 44 1

Kasal Occidenital 153,240 - 110 1,799 1,909 170 1,060 1,230 859 3,998 38

KatsalOriinLaLl 170,642 132 150 1,175 1,457 160 1,467 1,627 1,234 4,318 40

Kinshlusa 2,916 252 - - 252 - - - - 252 12

'Totall. 2,334,875 2,363 1,295 17,025 20,683 1,510 18,691 20,201 17,245 58,129 40

Souirce: Office des Route&a, Julle1981 - 149 -

Table 4.2 Office des Routes - Regional Distributionof Working Units

Brigades Maintenance Units

Kinshasa 1.

Bas Zaire 6 2

Bandundu 7 4

Kasai Occidental 3 -

Kasai Oriental 3 1

Shaba 5 2

Kivu 5 3

Haut-Zaire 5 2

Equateur 7 1

Zaire 42 15

Note: 3rigade refers to an autonomous unit in charge of road maintenance for a unole zone and a maintenance unit serves practically the same function but is about half the size of a brigade.

Source: Office des Routes. -150 -

Table 4.3 : Kivu - Personnel of Office des Routes, 1983

total

U.P.550 - Goma 145

U.P.551 Maniema 21g

B.A.510 Bukavu 432

B.A.507 Bukavu 31

B.A.Sominki / Kamituga 77

sub-total 904 (o.w. 500 sous-contrat)

S.G.M.T.P. O.R. 570 75

S.G.1.T.P. O.R. 571 Kindu 46

Training Center 43

Total 1068

NTOTE: I.P. - Unite de Droduction B.A. - Brigade Autonome S.G..X.T.?.- Service de Gestion du Xateriel des Travaux Publics

Source: Ofice des Routes, Direction G4nerale, Kivu. - 15 1 -

Table 4.4 :.ivu - Office des Routes I Euipment (end July, 1983)

Not Non- Total Working working usable

A. North-Kivu and South-Kivu

Bulltlozer 10 9 - 1 Load Truck 14 10 4 - Compactor 15 11 - 4 Leveller 1 12 2 Truck 56 54 - 2 Pick-up + Jeeps 28 22 4 2

Total 137 118 10 9

Percent 100 86 7 7

B. Maniema

BuLldozer 6 4 - 2 Load Truck 5 3 1 1 Compactor 5 3 - 2 Leveller 7 4 1 2 Truck 44 10 16 18

Pick-up + Jeeps 9 4 3 2

Total 76 28 21 27

Percent 100 37 28 35

Total Kivu 213 146 31 36

Percent 100 69 14 17

Source: Office des Routes, Direction Gan6raie, Kivu. - 152 -

Table 4.5 Office des Routes, 1983 Budget (Thousandzaires)

Quar..er Total O.R. Unit Ist 2nd 3rd 4th 1933

U.A.R. 540 423 447 468 597 1,935

U.P. 550 - Goma 894 942 987 1,253 4,076

- 5indu 1,053 1,107 1,164 1,475 4,799

U.P. 552 (SOMI?1KI) 288 303 318 403 1,312 - Kamituga

Contracts 243 255 270 340 1,108

Total 2,901 3,054 3,207 4,068 13,230

NOTE: U.A.R. - Unite AdministrativeRegionale U.P. - Unite de Production

Source: Office des Routes, Direction Regional Kivu - 153 _

Table 5.1 : ElectricityInstalled Capacityby Region, 1979 (MW)

SNEL Private Total Private as hydro Diesel Hydro Diesel percent of tocal

Kinshasa - - -

Bas-Zaire 437 4 - - 441 0.0 Bandundu - 2 - 1 3 33.3 Shaba 489 3 46 4 542 9.2

Ki-ru 28 3 18 - 49 36.7 Haut-Zaire 18 13 14 - 45 31.1 Ka-sai-Occidental 2 - - 2 4 50.0 Kasai-OrLenta! 14 23 8 - 45 17.8 Equateur - 10 - - 10 0.0

Total 988 58 86 7 1,139 8.2

Source: TWorldBank, Shaba Power Svstem Rehabilitation (Staff kppraisal Report), March 15, 1982 I'able5.2 : ElectricityConsumption by Region, 1974, 1979-80

1974 1979 1980 REGION (T'ri. WM (Th. tw)i) Z (Th. Mwh) X

ktinslhasa, Bas-Zaire 690 19.0 893 24.5 866 22.3 and Bandundu of whllichl Kinslhasa 545 15.0 694 19.1 653 16.8

Slhaba 2,732 75.3 2,510 68.9 2,769 71.2

Kivti 66 1.8 62 1.7 61 1.6

Ilaut-Zaire 71 2.0 86 2.4 85 2.2

Kasai Or. & Occ. 55 1.5 80 2.2 97 2.5

Equateur 12 0.3 12 0.3 10 0.2

Totai 3,626 100.0 3,643 100.0 3,888 100.0

Source: Bank of Zaire, Annual Report, 1980. - 155 -

Table 5.3 Petroleum Product Storage Capacity by Region

Number of Depots Capacity (cu m) Percent of Total

Kinshasa 3 72,450 38.1

Bas-Zaire 4 69,295 36.4

Bandundu 9 3,875 2.0

Shaba 7 8,910 4.7

Kivu 3 1,095 0.6

Haut-Zaire 7 10,605 5.6

Kasai-Occidental2 5 13,870 7.3

Equateur 10 10,025 5.3

Total 48 190,125 lC0.0

Source: World Bank, IntroductoryEnergy Sector Review, December 1981 - 156 -

Table 5.4 : Consumptionof Petroleum Light Products by Region, 1981-/ (Thousandmetric tons)

Planned 4 ctual Actual as % Regional Distributi-- Supply Supply of Planned of Actual

Kinshasa 261.0 274.9 105.3 43.1

Bas-Zaire 79.2 75.9 95.8 11.9

Bandundu 17.6 29.2 166.0 4.6

Shaba 139.8 150.3 107.5 23.6

Kivu 38.4 16.6 50.1 2.6

Haut-Zair b/ 31.6 32.2 102.1 5.0

Kasai-Occidental) 606 31.8 52.5 5.0 Kasa4-Otiental 6

Equateur 31.8 27.0 85.0 4.2

Total 660.0 637.9 96.7 100.0

a/ Gasoline, Kerosene, Diesel 01 bD \ot including Bunia

Source: Petro-Zaire - 157 _

Table 6.1:CommercialBank Loans for Agricultureby Region Dec. 31, 1981 (million of zaires)

Percent of Region Amount Total

Kinshasa 102.6 21.2 Bas-Zaire 22.8 4.7 Bandundu 29.7 6.1 Shaba 10.1 2.1 Kivu 171.5 35.5 Haut-Zaire 33.0 6.8 iasai-Occidental 4.5 .9 Kasai-Oriental 13.0 2.7 Equateur 96.4 19.9

Total 483.6 100.0

Source: Bank of Zaire. - 158 -

Table 6.2 : Bank Current Accounts By Region (Millions of zaires)

Region: Dec. 31, 1974 Dec. 31, 1978 Dec. 31, 1980 Dec. 31, 14RI Amount f Amount Ammount Amount -

Kinshasa 162.8 71.3 565.7 67.9 978.3 62.2 1,542.0 7l?- Bas-Zaire 6.2 1.9 21.6 2.6 38.7 2.5 42.5 Bandundu 1.4 0.6 7.4 0.9 14.2 0.9 23.5 1.1 Shaba 33.6 15.2 107.5 12.9 299.0 19.0 295.0 13.' Haut-Zaire 5.9 2.7 33.2 4.0 64.2 4.1 57.8 I . Kivu 8.0 3.7 36.1 4.3 65.6 4.2 73.2 3._ Kasai-Occidental 3.4 1.1 14.5 1.7 35.5 2.2 42.3 1.- Kasai-Oriental 4.0 2.0 30.0 3.6 49.2 3.1 73.2 3.4 Equateur 3.4 1.5 17.0 2.0 28.3 1.8 47.1 2.1

Total: 228.6 100.0 833.3 100.0 1.573.1 100.0 2,196.5 100.0

Source: Bank of Zaire. - 159 -

Table 6.3 : Bank Term Deposits by Region (Millions of zaires)

Region: Dec. 31, 1974 Dec. 31, 1978 Dec. 31, 1980 Dec. 31, 1981 Amount Z Amount % Amount x Amount *

Kinshasa 48.8 91.2 169.0 91.4 241.0 89.1 293.3 91.6 Bas-Zaire 0.2 0.4 0.5 0.3 0.6 0.2 0.7 0.2 Bandundu 0.2 0.4 0.2 0.1 0.3 0.1 0.9 0.3 Shaba 2.0 3.7 7.4 4.0 12.7 4.7 9.8 3.0 Haut-Zaire 0.4 0.7 1.8 1.0 1.6 0.6 1.8 0.6 Kivu 0.9 1.7 2.3 1.2 4.3 1.6 8.3 22.6 Kasai-Occidenta 0.1 0.2 0.6 0.3 1.1 0.4 1.5 0.5 Kasai-Oriental 0.4 0.7 2.4 1.3 1.4 0.5 2.5 0.8 Equateur 0.5 0.9 0.7 0.4 7.6 2.8 1.2 0.4

Total: 53.5 100.0 184.9 100.0 270.6 100.0 320.0 100.0

Source: Bank of Zaire. Table 6.4 i SOFIDE: Breakdownof Approval.by Region (Thousandsof zaires)

1977 1978 1979 1980 1981 1977-1981 Amount Amount x Amount X Amount X Amount X Amount X

Kinanilma 7,548 34 10,862 48 15,207 29 30,006 45 51,246 40 114,870 39 Bas-Zaire 1,465 7 3,132 14 8,959 17 3,627 5 12,927 10 30,110 10 Bandundu 245 1 1,559 6 2,540 5 7,915 12 10,958 9 23,277 a Shiaba 3,750 17 2,428 11 9,206 18 9,635 IS 9.734 7 34,753 12 Kivu 845 4 2,428 11 4,034 8 1,352 2 5,918 5 14,577 5 llaut-Zaire 1,430 7 381 2 3,933 8 1,500 3 4,203 3 11,467 4 Kasai-Occidental 2,508 ll 429 2 2,011 4 3,620 5 14,534 11 23,102 8 Kaeai-Orlental 264 1 240 1 4,250 8 6,635 10 3,205 2 14,594 5 Equateur 3,962 18 1,154 5 1 524 3 1 780 3 16,984 13 25.404 9 Total 22,017 100 22,613 i& 51664 1T0 66,130 100 129,709 100 292,154 too

Sourcel SOVIDE Table 6.5: SOFIDE L.oaii and Investmoiits in 1982, by Sector and Region (Million of zaires)

Total Agric. Livestock Forestry gro-Ind. Hines Manufacturing Transport Other Value Kinalasa 0.8 2.1 - - - 13.3 - 2.0 '18.2 Zaire Bns 5.1 2.0 0.9 1.0 - 1.0 - - 10.0 Banduiicltu - - 10.7 1.6 - - - 0.7 13.0 Slhuba - 1.1 - 2.5 0.7 18.5 4.2 - 27.0 Klvu . 0.1 3.3 - 1.5 - - 10.0 1.2 16.1 llaut Zaire 0.5 1.4 - - - - - 1.9 Kasai Occ. 1.0 - - 3.4 0.4 0.1 - - 4.9 Kasai Or. 0.6 1.1 5.4 0.6 - 0.5 - 0.1 8.3 Equtiteur 0.1 - 2.7 - 1.3 - - 4.1

TOTAl. 8.2 11.0 17.0 13.3 1.1 .34.7 14.2 4.0 103.5

Source: SOFIDE Table 7.1 : KIVII SurmnaryTable of Primary and SecondaryEducation, 1979/80-1981/82

Enrolleuet Classes Students 1, Personnel l _ Student/Student/ Rate of 1979/80 1980/81 1979/8o 1980/81 198l/82- 1979/80 1980/81 1981/82-L Class Teacher School Pop. Total Girls Total Clrls Total Teacters Total Teachers Total Teachers 79/80- 79/8Q- 79/80-8e/81 Stab-regios ___ 2 2 _ S _ _ _ 80/81 80/8l TotalGirls

Primary Education

Bukavu 797 815 30410 47.8 31001 48.3 62295 41.7 1188 812 1226 823 1972 1559 38 38 80 78 Sud Kivu 6805 6834 179530 31.0 194151 32.3 121641 32.3 8979 6858 8796 6780 5025 3680 28 29 56 35 Nanlama 2926 3000 74442 34.0 89085 34.3 79739 36.1 3672 3064 3750 3020 2922 2382 28 29 59 42 Nord Kivu 5731 5760 180346 37.2 199687 37.7 20585l 38.4 7080 5743 7784 6120 6319 4989 33 35 42 28

Kivu 16259 16409 464728 35.0 513924 35.7 469526 37.3 20919 16477 21556 16743 16251 12610 30 32 50 32 T-of Zaire)-' TITF (na) -fTiT (I0) -Tii6a( na)(n na) Tna)T() I 11) (na) -(na) (na) (na) l1 16 TF

SecondaryEducationl Dukavu 340 391 11204 34.4 12686 34.9 12315 35.2 956 573 1044 634 1018 528 33 21 45 31 Sud Kivu I13 1198 34126 20.9 38034 22.1 23029 21.0 3113 1696 4056 1946 1557 918 32 22 12 5 Hanlema 432 447 14672 21.3 16135 24.2 38122 31.6 1222 718 1418 824 969 566 35 35 11 5 NordKivu 860 853 28228 30.1 29831 30.4 22093 32.7 2524 1316 2938 1515 1813 955 34 21 9 5 Kivu 2/ 2745 2859 88231 25.6 96736 26.7 95559 30.0 7815 4303 9456 4919 5357 2967 33 24 12 6 TX-ofZaire)- (12) (na h ID - - (11) TM - - 33 22 2313

I/ Data for the acadetaicyear l981/82 reflect only Catholicand Protestantscilool..

2/ The student/class,student/teacber and enrollmentratios Indicate the averagefor Zaire.

Souirces NRgiomalPlanninilg DivLsion, Hinistry of Planning. RegiuilaEducation Division, Hiniatry of Primary and SecondaryEducation. NationalCoordination Office for CathiolicEducation. RegionialCoordination office for ProtestantEducation. Table 7.2 RIVU Ordinary Budget for Primary and SecondaryEducation, 1981-82 nThousandZaires)

1981 1982 Proposed Approved Actual Approved/Proposed Actual/Approved Proposed Approved Actual Approved/Proposed Actual/Approve Budget fliidgt Amount S S Budget Budget Amount 2 2S fiLssionisto tlieliterior 72.7 35.9 25.6 49.4 71.3 158.8 34.2 33.0 21.5 96.5

Transfer costs to 17.0 9.4 - 55.3 - 17.0 9.4 4.5 55.3 47.9 interlor

Office furniture 27.4 20.8 7.5 75.9 36.1 72.6 20.8 13.6 28.7 65.4

HaLntenanceand repalrs 25.0 - - - - 75.0 12.6 8.1 16.8 64.3

Durable equipmant 30.0 12.4 6.5 41.3 52.4 122.0 12.3 7.0 10.1 56.9 _ a, lluusingand settlemetit 22.5 6.8 1.1 30.2 16.2 80.0 6.8 5.3 8.5 77.9 W

Local conference costs 8.0 4.0 - 50.0 - 16.0 6.0 6.0 37.5 100.0

Total 202.6 89.3 40.7 44.1 45.6 541.4 102.1 77.5 18.9 75.9

Sources Resional Division of Primary and SecondaryEducation in Kivu. Table 7.3 ; KIVU; Budgetfor Ruelonal Inspection of Primaryand SecondaryEducation, 1981-82 (TlousandZaires)

19B1 1982 ProposedApproved Actual Approved/Proposed Actual/Approved Proposed Approved Actual Approved/PorposedActual/Approved Budget Budget Amount 2 2 Budget Budget Amount S 2

HisuioIUato tbe Interior 333.8 107.1 75.9 32.1 70.9 328.9 142.0 64.6 43.2 4S.5

TranMfercosts to 108.0 18.8 13.7 17.4 72.9 30.0 25.0 13.2 83.3 52.8 hiterior

Officefuriliture 30.0 15.0 14.6 50.0 97.3 23.0 20.0 6.4 87.0 32.0

Haitennanceand repaira 55.6 12.9 11.4 23.2 88.4 31.0 20.0 14.0 64.5 70.0 Durabloequipmunt 117.6 28.0 25.8 23.8 92.1 46.8 37.3 29.5 79.7 79.1 hlouainB - - - - 48.0 48.0 40.3 100.0 84.0

Local conferenice costs 42.7 13.0 3.5 30.4 26.9 26.0 18.5 15.0 71.2 81.1 Stateexaas 56.7 30.0 30.0 52.9 100.0 120.4 45.0 43.0 37.4 95.6

Repatriation - 18.7 3.5 - 18.7 18.8 - - - -

Vehiicleindemnity 0.2 0.1 - 50.0 - 64.8 64.8 44.1 100.0 68.1 'total 744.6 243.6 178.4 32.7 73.2 737.6 421.4 270.1 57.1 64.1

Source; Hiniatryof Primaryand SecondaryEducationi Table 8.1 : Social Indicatorsby Region, 1980

Primary Education Secondary Education Population Enrollment Pupil/ Enrollmetit Pupil/ Water Sup- Per Poplulation Per reacher Per Teacher Girls as Z plied by PhysLciani Per Bed 1,000 Pop. Ratio 1,000 Pop. Ratio Enrollment SNEL (X)

Klnlslhasa 4,500 443 181 43 55 26 43.3 45,3 Bas-Zaire 23,700 219 175 28 46 18 35.4 7.2 BandIId1ELI 72,100 348 168 26 27 25 27.8 0.5 Slialba 20,200 340 177 25 32 22 26.9 29.6 Kivu 37,200 322 119 32 14 20 26.2 5.1 llaut-Zaure 31,700 393 107 25 15 19 25.3 6.2 Kusaii-Occidenital63,200 369 178 36 31 20 19.2 1.6 Kasal-Orieiital 47,700 379 209 27 37 21 22.7 2.0 Equateur 31,700 375 116 26 21 26 20.0 2.6

ToLal 34,488 349 -/ 152 29 28 22 20.0 100.0

1/ [ncludeshospitals, clinics, maternity, dispensaries and specializedhospitals.

Souirce: PlanninigMlinistry, Hlealtlh tMinistry, Mlinistry of Primary and Secondary Education Table 8.2 : KIVU- Number of hlospital.Beds, by Sub-Region, 1979

General _ Specialized lotal flospital Dispensaries MaLernity Gynecology Surgery Pediatrics Tuberculosis Other ltikuvu aiId Soutil KLvu 938 182 682 110 258 468 100. 122 2,860 Govurnmiant 265 74 188 42 87 134 24 30 844 Milsslolis 244 22 362 * 45 124 206 - 68 1,071 1'rivatu 429 86 132 23 47 128 76 24 945

(oima alnd Klvtu North! 581 786 430 45 307 265 105 79 2,598 Coverniwi.imt 305 640 224 30 170 184 84 33 1,670 Hissiond 86 - 142 15 60 66 10 27 406 PrivaLe 1'JO 146 64 - 77 15 11 19 522

KI.nduandl Marlema 335 631 216 43 223 225 29 101 1,803 Coveriummnt 113 431 99 8 75 88 8 8 830 Missionaia 118 25 75 - 87 76 - 77 458 PrivaiLe 104 175 42 35 61 61 21 16 515

KLvi 1,854 1,599 1,328 198 788 958 234 302 7,261 Governtient 683 1,145 511 80 332 406 116 71 3,344 Milsslolis 448 47 579 60 271 348 10 172 Private 1,935 723 407 238 58 185 204 108 59 1,982

Source: hlegional Planning Division, Kivu. Table 8.3 : KIVU - Medical Personnel, 1979 and 1982

Covernnient FMissions Private Total Total Foreigners Total Foreigners Total Foreigners Total Foreigners

Doctors 81 15 26 16 32 22 139 53 PhIarmnacists 3 1 1 1 15 3 19 5 D)entlsts I - - - 1 1 2 1 Nnrses: graduates 2 - 2 1 2 , 2 6 3 first category 141 10 32 12 58 15 231 37 aLiuxiliary 173 1 52 - 147 4 372 5 aides 425 - 120 - 90 - 635 -

Medical graduates 22 6 - - 10 1 32 7 I'larnmaceutical 5 6 11 - Assistants5 AdmIillstrators 21 - 2 - - - 23 - Otlher 987 5 430 10 562 17 1,978 32

I'otaL& 1,861 38 664 40 923 65 3,448 143

Source: Regional Planining Division, Kivu 1168-

Page 1 of 3

Table 9.1 : Public Investment Program, 1981-83 by Region and Sector

Project Cost (Xiillionzaires, 1980 prices) Z of Total Total 1981 1982 1983

Kinshasa 370.5 6.1 113.8 137.2 119.5 Agriculture 23.3 0.4 11.8 8.2 3.3 Transportation 45.4 0.7 8.9 19.0 17.5 Energy 190.3 3.1 55.3 76.3 58.7 Education 28.5 0.5 6.2 12.3 10.0 Health 41.4 0.7 6.8 12.4 22.2 Roads 31.4 0.5 19.1 6.0 6.3 Other 10.2 0.2 5.7 3.0 1.5

Bas-Zaire 274.2 4.5 178.1 53.0 43.1 Agriculture 3.5 - 0.8 2.1 0.6 Transportation 158.0 2.6 106.6 27.6 23.8 Energy 64.2 1.1 56.5 5.7 2.0 Education 11.5 0.2 0.2 6.1 5.2 Telecommunications 37.0 0.6 14.0 11.5 11.5

Bandundu , 130.1 2.2 33.9 46.5 49.7 Agriculture 29.4 0.5 5.6 12.0 11.8 Transportation 80.2 1.3 27.0 26.9 26.3 Education 15.7 0.3 - 6.1 9.6 Health 0.3 - 0.3 - - Roads 4.5 0.1 1.0 1.5 2.0

Equateur 283.5 4.7 132.0 97.9 53.6 Agriculture 45.0 0.7 27.0 8.8 9.2 Transportation 31.0 0.5 30.0 1.0 - Energy 127.1 2.1 60.8 40.0 26.3 Education 80.4 1.4 14.2 48.1 18.1

Haut-Zaire 344.4 5.7 117.3 141.9 85.2 Agriculture 49.9 0.8 26.9 15.4 7.6 m!ining 164.9 2.8 51.9 77.6 35.4 Transportation 84.7 1.4 34.4 26.6 23.7 Education 25.4 0.4 1.2 14.0 10.2 Health 19.5 0.3 2.9 8.3 8.3

.1/. -169- Page 2 of 3

Table 9.1 Public Investment Program, 1981-83 by Region and Sector

ProJect Cost (Millionzaires, 1980 prices) X of Total Total 1981 1982 1983

Kasai-Occidental 46.5 0.8 7.7 19.8 19.0 Agriculture 1.3 0.1 0.3 0.5 0.5 Energy 44.7 0.7 7.3 19.1 18.3 Education 0.5 - 0.1 0.2 0.2

Kasai-Oriental 229.8 3.8 75.0 74.9 79.9 Agriculture 68.4 1.1 18.8 19.3 30.3 Mining 50.3 0.8 20.7 19.7 9.9 Transportation 15.4 0.3 4.0 5.0 6.4 Energy 65.7 1.1 25.1 20.6 20.0 Education 9.7 0.2 0.6 4.4 4.7 Health 16.7 0.3 4.8 4.6 7.3 Telecommunications 3.6 - 1.0 1.3 1.3

KIVU 6-40.7 7.3 121.0 147.4 172.3 Agriculture 5.5 0.1 2.9 1.8 0.8 Mining 72.5 1.2 15.7 12.1 44.7 Transportation 268.8 4.5 77.8 89.6 101.4 Energy 89.4 1.5 23.3 42.0 24.1 Education 0.9 - 0.3 0.6 - Telecommunications 3.6 - 1.0 1.3 1.3

Shaba 2,688.5 44.5 896.3 1,018.8 773.4 Agriculture 6.9 0.1 5.6 0.7 0.6 Mining 1,956.0 32.4 561.0 699.0 696.0 Transportation 325.3 5.4 133.3 121.5 70.5 Energy 392.5 6.5 191.8 194.4 6.3 Education 6.5 0.1 3.3 3.2 - Telecommunications 1.3 - 1.3 - -

Zaire - Multi-regional1,229.0 20.5 464.9 432.3 331.8 Agriculture 27.5 0.5 13.9 8.1 5.5 Transportarion 1,032.7 17.1 374.7 380.2 277.8 Energ-' 120.4 2.0 47.3 33.0 '0.1 Education 42.6 0.7 29.0 7.8 5.8 E.ealth 5.8 0.1 - 3.2 2.6 170 -

Page 3 of 3

Table 9.1 Public Investment Program, 1981-83 by Region and Sector

Project Cost (Million zaires, 1980 prices) x of Total Total 1981 1982 1983

Total Zaire 6,037.2 100.0 2,140.0 2,169.7 1,727.5 Agriculture 260.7 4.3 113.6 76.9 70.2 Mining 2,243.7 37.2 649.3 808.4 786.0 Transportation 2,041.5 33.8 796.7 697.4 547.4 Energy 1,094.3 18.1 467.4 431.1 195.8 Education 221.7 3.7 55.1 102.8 63.8 Health 83.7 1.4 14.8 28.5 40.4 Telecomumications 45.5 0.7 17.3 14.1 14.1 Roads 35.9 0.6 20.1 7.5 8.3 Other 10.2 0.2 5.7 3.0 1.5

Source: Ministry of Planning - 171 - Page 1 of 3

Table 9.2 KITVU- Projects in 1983-85 PIP, by Sector (Million mid-1983 zaires)

Total Cost Cost of Cost of PIP Beyond Share of PIP 1983-85 Only 1983-85 Foreign Fin. Xor (x) Amount Sector

Agriculture 314.4 281.4 27.4 33.1 34.9 CECOPANE 2.9 2.9 0.3 - 65.5 Small-scale fishing 50.7 50.4 4.9 0.3 75.0

Integrated rural development 16.8 16.8 1.6 - 100.0 in North Kivu

Agricultural Center in Eizi 4.0 4.0 0.4 -- Extension of Kiliba Sugar 100.4 100.4 9.8 - 99.0 Refinery .Researchon legume production 18.3 8.6 0.8 9.7 41.9 improvement of potato 3.6 2.0 0.2 1.6 (Mulungu) Introductionof two types or fish in Lakes Tanganyika 3.4 3.4 0.3 - - and Kivu Second Cotton Project- (also Haut-Zaire,Kasai 70.7 50.7 16.5 20.0 72.0 Oriental and Shaba) Plan for National Parks 13.9 13.9 1.4 - 27.3 Sites of World Patrimony (Protectionof Virunga and 1.7 1.7 0.2 - 29.4 Garamba National Parks)

National ReforestationService .8 2.8 0.3 - (with other regions) Management and maintenanceof Mational Parks (also 24.4 23.6 2.3 0.8 91.1 FHaut-Zaireand Equateur) AgriculturalBrigade of Sange 0.8 0.1 - 0.7 -

.4Imin*g 11.2 11.2 0.4 - Exploitationof old and new deposits and search for 11.2 11.2 0.4 new deposits

. J. - 17 -2

Page 2 of 3

Table 9.2 KIVU - Projects in 1983-85 PIP, by Sector (Millionmid-1983 zaires)

Total Cost Cost of Cost of PIP Beyond Share of PIP 1983-85Only 1983-85 Foreign Fin. % of (%) Amount Sector

Energy and Water 763.5 630.9 28.8 132.6 57.9 High Tension Line 220.6 220.6 10.1 - 42.2 Katana-Goma. Hydroelectricinstallation 3.2 3.2 0.1 _ 84.4 for Butembo/Beni Restoration and extension of electrical stations in 2.2 2.2 0.1 - 59.1 Bukavu, Goma, Uvira Ruzizi II 411.0 280.0 12.8 131.0 95.6 Bukavu - Water 4.1 4.1 0.2 - 85.4 Kabambare - Water 6.8 6.8 0.3 - 22.1

Uvira - Water 74.5 74.5 3.4 - -

Beni - Water 21.6 21.6 1.0 - - Rutshuru - Water 3.1 1.5 0.1 1.6 - Pu=ia - Water 7.6 7.6 0.3 - 42.1 Kindu - Water 8.8 8.8 0.4 - -

Transportation 840.4 490.0 9.7 350.4 24.5 Kisangani-Bukavuaxis 669.1 337.0 6.7 332.1 58.0 Drawbridges (also Bandundu, 54.4 47.7 0.9 6.7 23.7 Equateur)

Ramps for ferryboats (also 30.2 30.2 0.6 - 11.6 Equateur,Haut-Zaire)

Rehabilitation of bridges - 11.6 11.6 0.2 - - Uvira-Fizi stretch

Langtheniz.gof ai-port 66.5 54.9 1.1 11.6 - strip - Bukavu

Airport - Be=i 9.3 9.3 0.2 - -

.1.- - 173 - Page 3 ot 3

Table 9.2 KIVU - Projects in 1983-85 PIP, by Sector (Millionmid-1983 zaires)

Total Cost Cost of Cost of PIP Beyond Share of PIP 1983-85 Only 1983-85 Foreign Fin. Z of (Z) Amount Sector

Education and Health 1.9 1.9 0.4 -

Construction of student 0.1 0.1 - - housing ISDR/Bukavu

Constructionof electrical 0.5 0.5 0.1 - station ISDR/Bukavu Study on non-poisonousplants 1.3 1.3 0.3 - -

Other 74.7 60.2 8.0 14.5 43.8 Pilot Project on Small- and 16.6 16.6 2.2 - 90.0 Medium-ScaleEnterprises Drainage of roads - Bukavu I, 29.0 14.5 1.9 14.5 _ and erosion control

Roads - Bukavu: construction 25.0 25.0 3.3 - of sewers FMNU II

Study of geophysical 1.1 1.1 0.2 - phenomena 3uilding for BCTA/Goma 3.0 3.0 0.4 - -

Total Kivu 2,006.1 1,475.6 12.1 530.6 39.6

1/ Reflects only Kivu's share (mission'sestimate).

Source: Ministry of Planning - 174 -

Table 9.3: Tnflatio Bates in Pegional Capitals, by 22!t!ES!m= Categories, 1980-82 * (1978- 100)

Zaire KIziSusa Matai KAt Ykamdp MbujiiMty Inbtsbaskd Rsamrew Ravu mya-

1979 109.4 111.9 107.1 123.3 102.4 98.3 110.4 100.5 113.6 116.4

Food 100.2 104.8 100.1 111.4 75.0 90.6 96.0 101.7 107.3 111.7 lbt.ulg 1C6.4 106.8 113.9 134.4 137.9 95.8 100.5 92.9 1lZ.9 99.5 Clothing 121.0 116.3 126.3 122.2 125.1 117.5 156.9 63.1 126.6 155.2 Nkaisca1)zus~w 152.8 148.7 136.3 163.5 194.9 140.3 152.2 156.7 136.8 150.8

1980 35.3 35.1 36.4 33.9 36.2 34.9 39.1 38.1 30.5 24.4

Food 27.0 24.0 29.2 19.8 39.6 25.8 36.5 26.3 2L7 22.2 1bEuimg 54.5 57.9 38.2 53.0 32.5 52.5 62.7 77.3 41.1 38.7 Clothbi 56.2 56.8 62.3 56.8 48.8 67.1 37.8 105.6 57.9 40.7 tHkaUS~2L8zeou 29.2 38.9 62.7 50.1 21.3 43.4 26.5 16.0 56.0 14.3

1981 59.9 59.2 50.5 51.5 60.1 60.8 62.6 64.9 60.0 65.3

Food 58.1 57.1 49.5 53.7 60.6 62.3 59.3 58.4 59.3 61.7 ib'sXlzg 82.4 84.5 73.4 72.9 69.7 71.8 93.5 78.3 94.3 80.8 Clothdig 56.6 51.8 72.1 64.3 49.0 61.6 52.8 74.3 93.9 65.0 rIscrllanems 50.6 40.3 17.1 31.1 55.9 40.2 44.9 78.5 3)-A 73.2

1982 39.4 45.1 56.8 32.3 26.2 30.1 40.5 35.2 12.8 38.5

Food 45.2 39.1 38.6 38.0 27.4 30.1 35.6 36.7 35.4 38.2 Fxtusixg 71.8 85.4 58.8 43.3 37.4 46.5 73.8 63.0 67.2 68.4 Clothing 14.4 19.0 4.2 14.7 13.7 9.8 17.5 0.5 6.7 11.8 xwcrv711mstns 25.4 22.2 55.3 17.7 17.2 31.1 33.8 17.1 48.9 25.3

iNote: Kixshasa (169 iom); 1*xji-Mayi(144 item); YaKan (122items); Uwtbashi (112 inumc); Buka'zu (136 it±em); KLsaRgani(109 itesm); Kikwit (129 items); Axhia (145 icecs); Xvadi (138 inis).

Weigtsbsed ca bxusehold smneys aoodiztadin 1972 (Kisangani);1973 (Ihbubasthi); 1975 (MEnstbJasa, Mataddi); 1976 (ananga,Buckvu, mtndka), 1979 (.Mbuji-.%yi).

Souzce: 1, Directimn of FEcorwic ard FYlnamial StatisdI s, Apil.1983. 2r' 25 27 - 2r8- 29

Z A I REE I KIVU REGION ADMINISTRATIVE DIVISIONS & Y ...... POPULATION DENSITY ......

POPULATION DENSITY PER KM. Y, ::IMp3 :. _ More than 100 ) : 40.1 -100 . R J;t 25.1 - 40 ...... 15.1- 25 - - 5.1 -15 1'A..711,VA-...... 2- 5 . % %t> K.s. Jmo gn-AIute.r ......

O National Capitals ; N - * Region Capital f \ e Sub-Region Capitals \\ 'Lubutu', IV ' * Zone Capitals 2 c,bObkok. \-- .-- IMe Rivers '- ylu *Mera\\Muh . . - - - Zone Boundaries \ - Sub- Region Boundaries - - Wohkal. Regional Boundaries -urb- _. International Boundaries a K' r No

-j . Uc- ... r..-...

) --. .~~~~~~~~~~~~~~~:"0~~~~~~KaimocaIi--¾

"A, 'S Q UT~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,

N.' % ~~~, bhobnda 037< 7,, t~~ukaba 9> '&, KINDU // 'A 0/. ., ,

.. , ,, -7 ,'" ,, ',-,--'''F ' _,_',''_A-,______/

Tw map tias been prepared by . '7' --

readers a/sec>-usetye sey fo ' / aner use ofThe WorlFnance k ' ' / / , -N. / and Viel*fm/3Tar>/ 1 -Ce'N C-arportc The denamitest l -G; /// t .u ,'1 a -. '0"' used and Ve baunnews shown7/ a..,,,t on /ls nu do not vrg*f an the - N part ofThbels Bankandtt wZ Y , //, / Wrcts_ o IYernatWCl FrnUE Corprabtr. -f / / /A W =WFizmW arrrante!egVsXhz~~~~ 9 // N ../ ///f -- anry an y Kl Ieaarry emreeteorarcearie of >' f///, e f,,

N/ . / //X/st5"/ - KILOMAETERS - - bob 0 20 40 60 80 100 o 2 40 60 N J / f MILES . - JN / ' / ,.r

2A1 25 26 27' 23 29. IBRD 17977 28' 29' 30- FEBRUARY 1984.

'~ ~ N MF-'*'

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28- 29- BIA , 2'4- 25- i6' i7- 28- Z A I R E to Afamba.10 KIVU REGION w TRANSPORTATIONNETWORK

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Tha map has beer r The WorldSams staff O.Chimm* -1 Ube ;t - -, -, i for the canv&vence of ft readffs ards, exchtswly for NW nterral use of The WoM Bank Kla,b. and mr intenabonal Founce k .dcr- J C-ziparabon.The donarivotorts% used ancrMe bouridarwssham an On m40 do not art*. an fte parf of The Worldflar* and Me intwmbonal Fowce Corporabon. ariylucVrwe on Me legal status of any femtoryor NW 0 er,dar5ernentor acceP r1ceol jvsomhc) such boundenes j KILOMETERSta 0 20 40 60 so 100 r0 0 MILES

41 ro Kablabo K, ro 27' Xv*mlv 29- ' - | ------, _. _ ~~~~~~~IBRD 17976 26- 29' fion ton 30' FEBkUARYt 1984

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TO _ - ZAMIBIA _ 2tS' Keee 29', \ _ ;I. 24- A~~~~2 26- 27- la-2 Z AI R E KIVU REGION AGRICULTURAL PRODUCTION/

t Cotlie L..J Cotton 1a' ' Coffee ~~~PlantainNgm * Fruitis Cassava *Tea Csaa:N ORT7H * Tobacco Rice\ tueo 0 SugarCane LuLo

* National Capitals '.OPone AIS -. Aiimbj

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Sub- Region Capitals -z'I - T J- . * Zone Capitals ILubuf K-K V >

--- Rivers 0~too.- f - -C- ----Zane Boundaries -'-sI -MhlO'-- Marac

- Sub- Region Boundaries MIhlc

Regional Boundaries - International Boundaries C klej Mo0s r Kandjol7- 24o.kl

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f .. ~~~~~~~~~~~~~~~~~~ _~~~~~~ AblunguKa~FJm0

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such bounbdarisI '

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24' 25 1 26' 2?- 20- 29 28-.1;1 _ BRD 17979 2829- 30' FE6RuARY19B4

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-- 0 /of' t} 1) rti f - t 4' EC~~~~UINEA T-/)_ '- / -' 4-PEPL'$ GABON QEP .° : . >_ \ \ \ og .r} ~~~~~~~~~Z A I R E t.<.

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< / } <> < ( ~~~~~~~~~~~~~~~~~~~~~~~~~~~KIVUUADA

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ITS \ Z O~~~~~~~~~~~~~Komino_

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f CENTAFR RPFIv \\/ v>_

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GABON'OL j% ZAIRE i iY _= IoWjO

tt £.t e 5 I.~~~TANZANNIA {-.;Ubh

0X 0^ 1 s _PJ42 O .?O0 2ZOO 00 ! _- ripUSI; ;\l

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TANZANIA 0 Ak-e tso + AfIANfIC -isoo Imu.4. Butc) I ANGOLA 0 C E A M r IMALAWI lb tv- 0 + + I ZIMBABWE \ I 0- + 'BOTSWAN + - - J + + 0 Z

+ 0 -0. e KIS (J Bute bo

4j G A B 0 N Ubund f

0 .A 0 V Mblibile bln-Vo *,L-LJ -- 7- t 0/' KIGAII

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Ki 10 77-L l0m 'r! P E Q P LE Ba -wo

BRAZZAVILI E

7 T" nw -77 usam.

ko otodi ngo 'sh a erme TANZANIA

A N G 0 L A

REPUBLICOF ZAIRE !II, i$-K IL AGRICULTURALPRODUCTION ;H' Ccittle Moize to- Z A M B I A A Cococi Cassava Predominant Coffee Plantciin Food Crops Fruits Rice |pEQ pLvE BRAZZAVILLE~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ & B UJM&RA1S w|

_ I~aboIo Kcem,e TANZANI

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~olfu Cattle AAo,ze Is Cocoa Coi~~avo Predanimnant ZAMBINANI

|0\ 0:0 :; t ~~~REPUBLICOF ZAIRE |:;$L',.el45 lit 2;: t g ZIT, :.* PRODUCTION4AGRICULTURAL

Ai, LgorCne r i0 Coffee~FoorCrop~ ~~~~~~~~~~~~~~~~~~~~~~~~~CpvI~ ~~~ Plnnton ~~~~~~~~~~~~~j~ Rube ~~ ~ ~ Paved~ RoodsWBa~ ~ ~ ~ ~ * r0 n rhfnbfweCcprl t ie,0

0IIOMETEtlSO.(° 200 20,0 3000j0Z A M B I A Tobocco Rail'oods~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3

A.o.'-Predominat -|ce pa he ratcns used and Die houida,is sn an Us map do not

Tea Moin Earth/ 20Grovelads ,______'______i______..._6D 6

,r,,,-e-,-z^.ve .; .__._ S *f/- \ '1..P.\

/' - t s ! --/ .- xt =<-a HAUT-ZAI

v:wi";GC; n sx ^ A d 7-G -L C

t 7 i > ...... ~~~~~~~~~~~~~~~~~....*A KIVU lMN~~DA \ I _ _. ,

*NOUNOIr

~~~~~~~~~~~~~~~~~iA N£TA^LRE!, -~ ~ ~ jj~ANZANIA01

TRANSPORTU-MONNETWORK

4FrP hl' - ^ ~. ?Zv CCIAPEV - _ . a4._,_n 18A )

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