Identifier
Created
Classification
Origin
05MAPUTO537
2005-04-28 15:43:00
UNCLASSIFIED
Embassy Maputo
Cable title:  

SUCCESSFUL USG-SPONSORED FORUM ENCOURAGES

Tags:  ETRD ECON EAGR BEXP BTIO MZ EINV BFIF 
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UNCLAS SECTION 01 OF 03 MAPUTO 000537 

SIPDIS
STATE FOR EB/CBA - DWINSTEAD, AF/S - HTREGER, OES - JSTORY
GABORONE FOR ECON/COMMOFF - HMARONEY
GABORONE PASS TO SOUTHERN AFRICA GLOBAL COMPETITIVENESS HUB
- AHILLIGAS AND VMONG-GAE
COMMERCE FOR INTERNATIONAL TRADE SPECIALIST - RTELCHIN
LABOR FOR ILAB - PWHITE
MCC FOR SGAULL
AID FOR DMENDELSON
E.O. 12958: N/A
TAGS: ETRD ECON EAGR BEXP BTIO MZ EINV BFIF
SUBJECT: SUCCESSFUL USG-SPONSORED FORUM ENCOURAGES
MOZAMBICAN ENTREPRENEURS

REF: MAPUTO 439

UNCLAS SECTION 01 OF 03 MAPUTO 000537

SIPDIS
STATE FOR EB/CBA - DWINSTEAD, AF/S - HTREGER, OES - JSTORY
GABORONE FOR ECON/COMMOFF - HMARONEY
GABORONE PASS TO SOUTHERN AFRICA GLOBAL COMPETITIVENESS HUB
- AHILLIGAS AND VMONG-GAE
COMMERCE FOR INTERNATIONAL TRADE SPECIALIST - RTELCHIN
LABOR FOR ILAB - PWHITE
MCC FOR SGAULL
AID FOR DMENDELSON
E.O. 12958: N/A
TAGS: ETRD ECON EAGR BEXP BTIO MZ EINV BFIF
SUBJECT: SUCCESSFUL USG-SPONSORED FORUM ENCOURAGES
MOZAMBICAN ENTREPRENEURS

REF: MAPUTO 439


1. Summary: On March 22-23 the Embassy and the USAID-funded
Southern Africa Global Competitiveness Hub together hosted a
business seminar - the Entrepreneurship Forum - in Maputo,
attended by Mozambican university students, private sector
representatives, and government officials, with outside
speakers from the U.S., Ghana, Senegal, Zambia, Bostwana, and
the Netherlands. The Forum's aim was to encourage potential
and current entrepreneurs to capitalize on business
opportunities in Mozambique and export markets abroad,
including the U.S. Focus was given to the creation of a
sound business plan, the choice of a competitive product, the
profiling of target customers, the quest for technical and
financial assistance, transport to foreign markets, and
finding U.S. business partners. Overall, the Forum proved a
great success in publicizing opportunities and technical
assistance available for Mozambique's fledgling business
community. Post is considering several follow-up actions.
End Summary.

--------------
BILATERAL TRADE
--------------

2. Bilateral trade between the U.S and Mozambique is small,
but growing. In 2004 the U.S. exported approximately USD 50
million in goods to Mozambique. Exports included second-hand
clothing, machinery, wheat, corn, milk products, footwear,
and other miscellaneous items. Mozambican exports to the
U.S. in 2004 only reached USD 10 million, and consisted
mainly of garments, seafood, cashews, tobacco, and other
agricultural products.

--------------
SETTING THE STAGE
--------------

3. The Ambassador and the newly-appointed Minister of
Industry and Commerce, Antonio Fernando, opened the Forum.
The Ambassador emphasized growing commercial ties between the
U.S. and Mozambique, including the entry into force of the

Bilateral Investment Treaty and ongoing negotiations for a
Millennium Challenge Account compact. She also called
attention to the upcoming Summit of the Corporate Council on
Africa, in Baltimore in June, and urged Mozambique to send a
delegation. Minister Fernando outlined measures
newly-elected President Guebuza (who took office in early
February) would undertake to improve the business climate and
attract greater investment. He focused on the need to
continue Mozambique's record of rapid export-led growth (GDP
growth has averaged nearly 8 percent per year for the past
decade) to reduce poverty, particularly in rural areas - a
key goal of the Guebuza government. Noting that increasing
Mozambique's exports would depend on its private sector's
competitiveness, Fernando stressed the necessity of improving
domestic commercial policies, the desirability of gaining
access to new international markets and called for the
elimination of trade barriers. He encouraged Mozambican
producers to research and understand quality control
requirements for export to the U.S. and EU. He also
encouraged donors to continue providing technical assistance
to help Mozambican producers comply with international
standards. Fernando ended by promising the Guebuza
government would do "everything possible in its power to
support entrepreneurs and businesspeople."

--------------
ENTREPRENEURSHIP IN VOGUE
--------------

4. The presentations by the three African entrepreneurs were
received with considerable attention. The CEO of the Zambia
Export Growers Association (ZEGA) presented a thorough
account of the production and export of fresh
horticultural/floricultural products from Lusaka to markets
in Europe, South Africa, Australia, and New Zealand. The
ZEGA example demonstrated the success of an association
buying from hundreds of local producers. In addition, ZEGA
succeeded because it was able to lobby the Zambian government
for improved commercial policies and coordinate logistical
arrangements for the packaging and exportation of vegetables,
fruit, and cut flowers to international markets. The
Ghanaian presenter, a true self-starter and the most
energized participant at the Forum, described how he began by
selling maize in the evenings after his day job with
Unilever, and how his company grew into a much bigger
business, now named Yedent Agro-Procesing. Yedent now
supplies big name breweries such as Heineken, South African
Brewing Company (SABCO),and Guinness. In fact, the World
Food Program has recently become one of Yedent's biggest
clients. The third and final non-Mozambican entrepreneur to
present made his start processing yogurt in Senegal. Taking
advantage of locally procured ingredients, his company,
Yaourtjaboot, now processes and distributes domestically to
the Senegalese market.

--------------
MOZAMBIQUE SUCCESSES
--------------

5. Following these three entrepreneurs, a panel of four
Mozambican business leaders shared stories of their
successful operations. One spoke of the resurgence of the
cashew sector through the help of technical and financial
assistance provided by several NGOs, including the U.S. NGO
Technoserve. He reported that Mozambique growers recently
have agreed to a brand name for all of their cashew nuts,
"Zambique," in an effort to stimulate greater interest in
their product in Europe and the U.S. Zambique cashews are
sold in the U.S. through a distributor in the Netherlands.
Similarly, another panelist noted the considerable growth of
Mozambique's shrimp aquaculture industry. In January 2005,
the first boxed, frozen aquacultural shrimp from Mozambique
arrived in the U.S. By the end of February 75 tons had
entered the American market for distribution to Tasty Choice,
Wal-Mart and other food companies (septel).

--------------
U.S. HELP
--------------

6. The Forum also featured speakers from the Corporate
Council on Africa, the U.S. Department of Commerce, and the
Southern Africa Trade Hub. They all highlighted
opportunities for U.S. financial and technical support,
market opportunities, business linkages, and networking
events. On the second day, a business consultant gave a
hands-on presentation on creating a sound business plan,
choosing a competitive product, and profiling of target
customers.

--------------
WHAT'S NEXT?
--------------

7. To maintain the enthusiasm and strong interest generated
by the Forum, Post is considering a variety of follow-on
steps, including:
--Establishing a "Business Plan Competition." The
competition would involve inviting business students to
participate in a USD 25,000 scholarship competition for the
best business plan. The plans would be judged by an
independent group of business consultants, and the winner
would receive the money to implement his/her plan.
--Identifying a group of Mozambican farmers to visit ZEGA
facilities in Zambia. Post would call on the U.S. NGO
Technoserve to identify Mozambican agricultural producers
most likely to benefit from a visit to ZEGA facilities. ZEGA
officials would show them how they achieved high quality
standards and now successfully export to world markets.
--Working more closely with the Southern Africa Global
Competitiveness Hub. As a follow-on to the Forum, the Hub
has agreed to provide technical assistance to the seafood
industry in Mozambique so that fishermen are able to comply
with environmental and phytosanitary requirements to export
prawns, lobster, and fish to the U.S. The Hub is also
considering how to assist in increasing demand for Zambique
cashews in the U.S. and Europe. Post will continue to liaise
with the Hub on visits by U.S. companies. Recently GE
Transportation and Rail and Anadarko (oil and gas) sent
exploratory delegations to Mozambique, and Post expects a
visit by the bridge building company, Acrow Bridge, in May.

--------------
CORPORATE COUNCIL ON AFRICA SUMMIT
--------------

8. Post is already working alongside the Mozambican
government on organizing a government/private sector
delegation to the Corporate Council on Africa's U.S.-African
Business Summit in Baltimore this June. President Armando
Guebuza will lead the delegation and is scheduled to address
the Summit on agribusiness issues. To date, representatives
of Mozambican businesses in agribusiness, fisheries,
manufacturing, and energy and power sectors have confirmed
their attendance.
LALIME