[Congressional Record Volume 141, Number 109 (Friday, June 30, 1995)]
[Extensions of Remarks]
[Page E1388]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page E1388]]


                  TRIBUTE TO PRESIDENT SOGLO OF BENIN

                                 ______


                            HON. DAN BURTON

                               of indiana

                    in the house of representatives

                         Friday, June 30, 1995
  Mr. BURTON of Indiana. Mr. Speaker, I would like to express my 
support for the initiatives of the Government of Benin. Benin, a 
country the size of Pennsylvania with a population of 5 million, is 
located in West Africa on the Gulf of Guinea. It captured international 
attention when in 1991 it was the first African nation to 
democratically elect a head of state, President Nicephore Soglo, a 
former World Bank director and friend of the United States of America.
  Over the last 5 years President Soglo and his administration have 
instituted a series of economic reforms intended to reduce debt, 
increase exports, control inflation, and foster growth in general. By 
1992 Benin's economy began to respond and by the first quarter of this 
year, economic growth was evident. As a result of this economic 
turnaround, investment possibilities abound in many of Benin's 
industries, especially oil production and agriculture. Benin is clearly 
one African country setting out to disprove the notion that the 
continent is becoming marginalized.
  One of the most important of Benin's economic reforms was the 
devaluation of its currency, the CFA franc, in 1994. As a member of the 
West African Monetary Union, Benin uses the CFA--French for African 
Financial Community--franc which is tied to and supported by the French 
franc and is fully convertible. The overvalued CFA franc had skewed the 
economy towards trade rather than investment which is necessary for 
growth. ``Finance & Development'' magazine stated in a June, 1995 
article that, since the devaluation, member countries of the franc zone 
have made great strides toward economic recovery. The goal of the 
devaluation was to help member nations regain competitiveness by 
shifting resources from low growth sectors, often artificially 
protected, to sectors where the country enjoyed a comparative 
advantage. These objectives were largely met in Benin, as evidenced by 
the growth in GDP, limited inflation, and improved balance of payments.
  Benin has numerous resource-based enterprises which offer many 
investment opportunities for American businesses. One of the most 
promising is oil and gas. An offshore petroleum field is located near 
Cotonou, the principal city in Benin, and 4 billion cubic meters of gas 
reserves were recently discovered in the Seme oil field. These 
discoveries have generated serious attention in the World Bank plans 
for a major natural gas trunk line from Nigeria to run west through 
Benin, Togo, and Ghana.
  Recently, many American investment houses have started to see Africa 
as an economic area on the cusp of exploding growth, the last true 
emerging market.
  Mr. Speaker, the U.S. Government must support all efforts of African 
nations like Benin to democratize and continue on the path of economic 
reform and growth. The Government of Benin's efforts will mark a new 
era not only in West Africa but in all of Africa.


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