SOUTH AFRICA: OPIC LOAN TO AFRA AIR CARGO

UNCLAS PRETORIA 003175

SIPDIS

SENSITIVE

DEPT PLEASE PASS TO OPIC (CCOWAN)

E.O. 12958: N/A
TAGS: EINV EAIR ECON ZU SF
SUBJECT: SOUTH AFRICA: OPIC LOAN TO AFRA AIR CARGO

REF: STATE 138148

(U) This cable is Sensitive But Unclassified. Not for
Internet distribution.


1. (SBU) Embassy Pretoria welcomes the prospect of Afra Air
Cargo entering the South African and sub-Saharan Africa air
cargo market. The air cargo industry in southern Africa is
biased toward Europe and slaps a hefty price tag on shipments
to and from the United States. Additional competition from a
U.S. company has the potential to reduce transportation
costs, increase efficiency, and facilitate bilateral trade.
Reducing transportation costs and having more direct routes
from southern Africa to the United States can only encourage
trade between North America and Africa, and increase the
developmental value of our African Growth and Opportunity Act
(AGOA). Regular direct air cargo shipments between the
United States and Southern Africa could also reduce USG costs
and improve the regional support services Embassy Pretoria
provides for other U.S. Missions in Africa. Currently,
Fedex, UPS, and DHL operate package services in the region.
Delta, United, American, and Northwest all have alliances
with airlines that fly cargo to South Africa. To our
knowledge, Bax Global is the only U.S. transportation and
logistics company with operations in South Africa.
FRAZER