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AP Blog From Visit to Congo

 
By The Associated Press

AP chief of bureau for Canada, Beth Duff-Brown, is in the Democratic Republic of Congo, which she visited many times as a West Africa correspondent in the mid-1990s. She has returned to visit to a remote village in central Congo, where she was a Peace Corps volunteer from 1979 to 1981.
 

THURSDAY, Aug. 31, 4:30 p.m. local

KINSHASA, Democratic Republic of Congo

I just got approval to hop on a U.N. cargo plane bound for Kananga tomorrow morning at 5:30. I could take a commercial flight, but virtually every airline in the Congo has been deemed unsafe by international aviation organizations, and what with my fear of flying, I'll take a pass. We're trying to get a pass for my translator Kamanga as well, so he can travel with me. The only words I remember in Tshiluba are ``Moyo mamu,'' ``Malu kai?'' and ``Malu bimpe.'' Hey ma'am. How are you? I'm good.

Kananga is the provincial capital of Kasai Occidental, in southwestern Congo, and the closest city to the village where I served in the Peace Corps. The volunteers from around Kasai used to go into Kanaga every few months for shots, anti-malarials, mail and usually a round of Simba beer. I'd also stop by the Catholic mission to pick up mail and supplies for my school.

From there I'll see if I can hitch a ride with missionaries or aid workers, or see if the freight trains are running again. The village is only about 100 miles south of Kananga, but with no paved road, it can take us a full day by jeep. The rainy season has just started, so I'm eager to get there before the roads become unpassable.

I'm also eager to get there by Monday, when schools open nationwide. It would be a hoot to walk into one of my old classrooms on the first day of school. The Institute Untu, where I taught English, was once a nationally recognized high school run by the Belgians. I remember running down the path in the morning, usually late, to stand with the kids in their white shirts and blue skirts or slacks, proudly singing ``La Zairoise'' - the country was known as Zaire then - with their hands over their hearts as the flag was raised.

This afternoon, Kamanga and I walk through the hugh open-air market in Gombe, the commercial and administrative capital of Kinshasa. I want to check out the goods and chat with folks about politics and the economy. Everything from dried fish to used sandals from India is available. People are funny and friendly as always, yelling out greetings and making fun of my green sneakers. But they say times are hard.

Pablo Kongolo, 33, sells the short wigs and long hair extensions that I've seen a lot this time around, instead of the intricate cornrows of days gone by. The wigs are made in China and imported via Nigeria. He charges five to 15 bucks; on a good day he makes just enough to eat.

``At the time of Mobutu, it was good,'' he says, as other vendors shout in agreement. ``Now it's like someone has dug holes in the ground, stuffed us in, and strangled us.''

Aimee Marte, 50, sells ``pagnes,'' the batik fabric that many African women wrap around their bodies like sarongs or sculpt into elaborate headgear. Some of the fabrics sport the smiling faces of political candidates, the pope, and singers or actors.

Her ``super wax'' from Belgium costs $90; but she concedes she's not selling much of those. The standard Congolese pagne - six yards that are used for the wrap and blouse - costs 10 bucks. On a good day, she says, she makes $20; six years ago it was more like $100.

She said inflation and the fluctuating Congolese franc are killing her.

Aimee might buy each pagne at $10 each from her dealer, then sell them in the market for $12. But then, when she goes to buy her next stock, the wholesale price has gone up to $12, so she's lost her $2 profit. Yet like so many others here, she's happy to talk, jokes with me, asks about my family. I ask her how the Congolese manage to maintain their well-known charm and humor.

``We've had so much pain, so why be sad? With the grace of God, we just keep smiling,'' she said.

- Beth Duff-Brown

---

TUESDAY, Aug. 29, 6:47 p.m. local

KINSHASA, Democratic Republic of Congo

Just spoke to our 8-year-old, Caitlin, via the Internet; a long, leisurely call over the Internet, a conversation that would have been near impossible when I first came here 27 years ago. It was so good to hear her tell stories about visiting Grandma Stephie in California, then sign off by shouting at the computer: ``I love you bigger than the, um, what is it, the Kanga River?''

To find her a gift today I went to the Memling Hotel - a five-star accommodation too pricey for my taste and budget - where outside are craftsmen who cleverly market cool kitsch, items that their own families would roll their eyes over. Ten years ago, my husband got a great little faux camera made out of bent copper wire, complete with flash.

Today, a guy rushes me with a small painting of ``Tintin au Congo,'' taken from a famous series of comic books on which all Belgians and Congolese were raised. I never cared for the comic about a reporter and his adventures around the world, as well as in this former Belgian colony. But this painting, done on the back of a flour sack, was so over-the-top tacky and the artist looked so hungry, I figure it makes a nice addition to Caitlin's African collection. Though she was born in Malaysia and lived in India for nearly five years, I remind her that the prayers that preceded my pregnancy with her came from my Peace Corps village in central Congo and are part of her unconventional heritage.

Another reminder of home today, seeing dozens of new Nissan X-Trails bumping along the potholes of Kinshasa. It's the same SUV that we have back in Toronto, but not sold in the United States. Here the Parliament arranged a bargain price for its 500 members. They stand out in a country where most cars are decades-old Renaults and gas costs about $4 a gallon.

Driving back from NBA basketball star Dikembe Mutombo's new hospital on the outskirts of the city, I see a cherry-red Mazda sports car by the side of the road in a neighborhood they call ``La Chine,'' or China, because it's so congested. Kinshasa has about 8 million people, many of whom live in nothing more than plywood shacks with tin roofs, surrounded by concrete, dirt and rubbish. With only some 600 miles of paved roads nationwide, cars are a luxury, and a convertible sports car really shouts for attention.

I ask the driver to pull over so I can see who owns such a car. Turns out it belongs to the entourage of a large woman, dripping in gold chains, who is barking at a cameraman to get in closer, as she takes a shovel and appears to help clean out a stinking, backed up sewage drain.

When I ask what on earth she's doing, I discover she's a political worker for President Joseph Kabila, making a campaign ad about how her boss would make all this go away. All you have to do is vote for him in the upcoming runoff against rival Jean-Pierre Bemba.

New home audio leader is driven, Directed    
By Mike Freeman    Tuesday, September 26 2006, 12:27 AM     
 
THE AUDIENCE IS LISTENING 
 
 
In a faux home-theater room at Directed Electronics, Jim Minarik fiddles with the remote control to call up an Eagles concert on a flat-screen television.

The chief executive of Directed - a Vista, Calif., company whose roots are in car alarms - Minarik points to two speakers in the ceiling, two thin tower speakers next to the TV and a cube-shaped woofer underneath. As the band breaks into "Hotel California," he cranks up the volume so each bass note seems to vibrate the sofa.

The demonstration highlights Directed Electronics' aim to make noise in the home theater market.

Founded in 1982 by U.S. Rep. Darrell Issa, R-Vista, Directed spent more than a decade primarily as a car alarm maker. But over the past five years, the company has diversified into in-car video, car audio, satellite radios and home audio.

Recently, Directed announced that it was buying Polk Audio for $136 million. In the speaker business since 1972, Baltimore-based Polk Audio is one of the better known brand names in home audio. The sale is expected to be completed soon.

Analysts liked the deal, in part because it's expected to contribute to Directed's earnings immediately. It complements Directed's DefinitiveTechnology brand, said Ralph Jean, an analyst with Wachovia Capital Markets. Directed purchased the brand in late 2004 for $50 million.

"We view Definitive as a slightly higher-end brand that is being distributed at specialty retailers such as Magnolia," wrote Jean in a research note. "The Polk brand is distributed via the large box consumer electronics retailers ... We believe Directed now is the market share leader in three major categories - car security and convenience, satellite radio and home speakers."

The acquisition is another step in Minarik's blueprint for diversifying the company in the hotly competitive consumer electronics market. "When we were just vehicle security, the market we were competing in within the U.S. was a $350 million market," Minarik said. "Today, when you add satellite radio, home audio, mobile audio, mobile video, we're now competing in a $2.6 billion market. "

The Polk Audio deal gives Directed another potential growth story to tell Wall Street beyond satellite radio, according to analysts. The primary supplier of Sirius satellite radios and accessory products, Directed has seen its sales soar.

The company began carrying Sirius products in 2004. By 2005, the Sirius business accounted for 39 percent of the company's revenue - or roughly $120 million. Satellite radio is the main reason Directed's sales jumped more than 60 percent last year to $304 million.

Before the Polk Audio acquisition, Directed was on pace to do more than $430 million in sales this year. "I would say without the satellite angle, I don't know if this would be a terribly interesting stock," said Bud Leedom, publisher of the California Stock Report. "That's really what's providing the growth."

Satellite radio is not without risks. Both Sirius and XM have failed to meet profitability targets, despite corralling about 15 million subscribers to date. And the pace of subscriber growth, while fast now, is expected to taper off.

Market research from the Consumer Electronics Association found that shipments of in-vehicle satellite radio receivers grew from $209 million in 2004 to $447 million in 2005. But the association only forecasts satellite radio sales to reach $470 million in 2007. "I've been a student of the satellite radio business since its inception," Minarik said. "Nobody is more aware than I am that it loses a ton of money. At the same time, XM and Sirius have multibillion dollar market capitalizations. Analysts that cover satellite radio all project 30 million to 40 million subscribers."

Although he doesn't say so directly, Minarik agrees with Leedom that the Polk Audio acquisition adds another leg to Directed's product portfolio that has the potential for growth.

With the increased popularity of flat panel televisions and the emergence of high-definition sets, more consumers are seeking home theater loudspeakers.

According to Minarik, the combined Polk Audio and Definitive Technology products will have the top market share in the home theater market, ahead of Bose.

"There are many reason why we did the Polk acquisition," Minarik said. "One is it's one of our strategic areas for growth. It's also an offset for this exploding satellite radio category."

Before he got into politics, Issa founded Directed in 1982 with $5,000. He developed the company to roughly $85 million in sales before selling a majority stake 1999 to private equity group Trivest. Issa maintains a seat on Directed's board of directors and owns about a 4 percent stake in the company, according to filings with federal regulators.

Trivest brought in Minarik, a former Clarion Audio executive with more than 25 years of experience in consumer electronics. While Minarik has expanding Directed beyond vehicle security, he's quick to point out that car alarms and remote starters remain the company's core business, including the Viper and Python brand names. "Our philosophy has been to have the brands that matter in each of our respective markets," he said. "So in vehicle security, we have all the brands that matter."

This fall, the company is introducing a remote starter that can start a car from 1 mile away.

In car audio, the company has Orion, Precision Power, A/D/S and other brands. In home audio, it has Definitive Technology and now Polk.

The acquisition of Polk Audio will make Directed a roughly $500 million company, with about 430 employees, said Minarik. "With home audio, it's a highly fragmented market," Minarik said. "Bose has the No. 1 market share. It's hard to overtake Bose with a single brand. But we are able to achieve No. 1 market position collectively with our two brands."

Matt Polk, a co-founder of the 130-employee company, did not reveal specifics of the deal, but he did say the home theater market is consolidating. A week before Directed agreed to buy Polk Audio, speaker maker Klipsch Group of Indianapolis purchased Audio Products International of Toronto for an undisclosed price. "There are a lot of opportunities," Polk said. "But that means there can be risk. Consolidation makes sense in that it makes it much more possible to go after some of the opportunities while mitigating the risk by being part of a larger organization."

Polk and co-founder George Klopfer will remain with the company, developing new products.

Directed first talked to Polk Audio in 2003. "We've known these guys for a while," Polk said. "It's not like we're getting in bed with a stranger."

Minarik said talks didn't go anywhere two years ago. "Their side of the story is after a few months of talks they decided they were not ready to sell," he said. "Our side of the story is we showed them how they could make a lot more money, and they did."

Then, Directed competed in an auction to purchase Polk, with private equity funds offering rival bids.

"I will tell you that the price we offered two years ago was a whole lot less, but the company was a lot less profitable," he said. "It's a better company today than it was two years ago."

Polk Audio will add to Directed earnings without layoffs. But Minarik also hopes to find cost savings. For example, the companies both use the same contract manufacturers in Asia. So Minarik expects to get bulk buying discounts and other benefits.