TANZANIA FY05 BUSINESS PROMOTION PROPOSAL

UNCLAS SECTION 01 OF 03 DAR ES SALAAM 000116

SIPDIS

STATE FOR EB DENNIS WINSTEAD
COMMERCE FOR ROBERT TELCHIN
NAIROBI FOR FCS, FAS

E.O. 12958:N/A
TAGS: BEXP BTIO EINV ETRD TZ
SUBJECT: TANZANIA FY05 BUSINESS PROMOTION PROPOSAL

REF: 04 SECSTATE 248715


1. Summary: Post requests Business Facilitation Incentive
Fund (BFIF) funding to support two projects: a Food
Processing Fair and/or Catalog Show in May 2005 and a Trade
USA Booth at the Dar es Salaam International Trade Fair in
June/July 2005. Post thanks EB for its continued support
through the BFIF program.

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Traveling Catalog Show
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2. Proposal One: To fund a two-day catalog show and trade
event hosted by the US Embassy to highlight U.S. companies
providing equipment and technologies in agro- and food-
processing. The event would also highlight opportunities
for Tanzanian companies to export processed goods to the
U.S. under AGOA. The event may include U.S. company
participation, expert speakers on topics related to food
processing, marketing, and U.S. import regulations. In
order to attract participants from the U.S., post would like
to co-ordinate with other eastern Africa posts (including
those listed as info addressees) to organize a series of
similar events in each capital. Detailed planning for the
event remains to be done in coordination with FCS Nairobi
and other partner posts. Post will remain in contact with
BFIF as planning develops.


3. Justification: Economic prosperity and security is one of
the mission's top MPP goals. Agro-processing has been
recognized as an important potential growth industry for
Tanzania. Currently, Tanzania produces significant amount
of agricultural goods, but exports most goods without
processing. A number of new investment projects in the
industry have been proposed recently, including processing
of coffee, cashewnuts, cotton, and fruit juice. The
developing agro- and food-processing industry in Tanzania is
a potential market for U.S. products and services. As
Tanzania faces increasing competition in the textile
industry in 2005, post supports developing other AGOA
industries.


4. Planning Milestones: Post plans to work with FCS Nairobi
and its other partner posts to organize a traveling catalog
show. Planning milestones will include:

-- Developing list of U.S. companies to provide catalogs
and/or to attend the show,
-- Inviting speakers or participants through USAID programs
and/or Public Diplomacy speakers programs,
-- Setting dates, in coordination with other posts, probably
for May or June,
-- Reserving conference space,
-- Advertising the event.


5. Anticipated Outcomes: The goal of this event is to lead
to direct sales of U.S. equipment and technologies. In
addition, the event will highlight the opportunities under
AGOA, inform industry businesspeople about potential
American products, and demonstrate the U.S. mission's
commitment to assisting Tanzanians in economic development.


6. Estimated Costs:

Total Costs: USD 2,550
Conference room rental: USD 1,200
Computer and internet: USD 250
Mailing costs: USD 800
Advertising: USD 300

Costs are still very general estimates, dependent on the
level of participation. Post anticipates using other
sources of funding, including USAID and Public Diplomacy
programs and private businesses, to fund travel of visiting
speakers and company representatives.

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International Trade Fair
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7. Proposal Two: To fund a "Trade USA" booth at the Dar es
Salaam International Trade Fair, June 30 - July 10, 2005.
The booth will be jointly organized by the U.S. Embassy, FCS
and FAS in Nairobi, USAID contractors and U.S. business
representatives. The booth will provide Tanzanian
businesses opportunities to access information about trading
with the U.S. under AGOA, discuss trade leads, and learn
about and order U.S. products.


8. Justification: The Dar es Salaam International Trade
Fair (DITF) is one of the prime trade events in East Africa.
Held annually, the DITF is an ideal platform for companies
to showcase their products. Over the years, the DITF has
attracted more than 1000 companies to attend the fair,
including many foreign companies. The fair is sponsored by
Tanzania's Board of External Trade and therefore has strong
backing from the Government of Tanzania.

Since Tanzania qualified for benefits under AGOA in 2000,
there has been a dramatic increase in interest in trading
with the United States. Although Tanzania has been slow to
take full advantage of AGOA, exports under AGOA have
increased dramatically in the last year. However, total
U.S. exports to Tanzania remain stagnant. The greatest
barrier to Tanzanians trading with the U.S. remains the lack
of information and contacts with U.S businesses. U.S.
presence at Tanzania's largest trade fair offers U.S.
companies an opportunity to explore the Tanzanian market,
and provides Tanzanian businesses an opportunity to gain
information about trading with the U.S.

Economic growth and development is one of post's priority
performance goals in its Mission Performance Plan (MPP).
Increasing Tanzania trade between the U.S. and Tanzania is
an important aspect of that goal, particularly in
agricultural products and agro-machinery. With support from
the Regional Foreign Agricultural Service (FAS Nairobi) and
USAID agricultural programs, the trade booth will focus in
large part on agricultural trade.


9. Planning Milestones: Post plans to work with GOT
partners (particularly the Board of External Trade),other
U.S. agency partners (including USAID, USDA, and Commerce),
and U.S. businesses to organize a large booth (or a few
adjacent booths) that will give a single face to the U.S.
presence at the trade fair. Planning milestones will
include:

--Coordinating space requirements with the various U.S.
participants
--Reserving space at the DITF through the Board of External
Trade
--Preparing relevant information/literature/presentations
for the booth
--Organizing multi-agency staffing of booth during fair
--Setting up the booth in late June


10. Anticipated Outcomes: Last year, the USA booth received
positive attention from the press and from GOT officials and
won second prize among foreign government-sponsored booths.
A steady stream of VIP visitors dropped by the Trade USA
booth, including the Minister of Trade. All expressed
strong support for increased U.S./Tanzanian trade. Post
hopes to recruit even more U.S. companies to participate in
the fair this year, highlighting U.S. products for sale.
Participation in the trade fair is an important opportunity
to disseminate additional market information, build
U.S./Tanzanian trade linkages, strengthen contacts in
government and private sector, and influence attitudes about
U.S. goods and the U.S. market. In addition, post
anticipates that the event will serve as a good way to
strengthen the coordination between FCS, FAS, USAID and
State commercial efforts. Ultimately, post expects the USA
booth to be a keystone to USG efforts to increase bilateral
trade with Tanzania.


11. Estimated Costs:
Total Cost: $7280
Booth Rental: $4705 ($130/sq meter for 36 square meters plus
$25 garbage disposal fee)
Literature, Materials, and Computer Hookup: $575
Decorations: $900
Travel to Dar es Salaam for FCS Nairobi representative:
$1100

Post anticipates additional funding for the booth, or
adjacent booths, will come from U.S. business participants.


12. Point of Contact at Post:
Jefferson Smith
Political-Economic Officer
Tel: (255) 22-266-8001
Fax: (255) 22-266-8296
E-mail: SmithJD@state.gov

OWEN