TANZANIA'S FY06 BFIF PROGRAMS

UNCLAS DAR ES SALAAM 001430

SIPDIS

SIPDIS

DEPT EB/CBA FOR D WINSTEAD; AF/EPS FOR T HASTINGS;
AF/E FOR B YODER
NAIROBI FCS FOR E YAGI

E.O. 12958: N/A
TAGS: AFIN BEXP BTIO ECON EINV ETRD ADPM TZ
SUBJECT: TANZANIA'S FY06 BFIF PROGRAMS

REF: STATE 127166


1. (U) SUMMARY. FY 2006 funds from the Business Facilitation
Incentive Fund (BFIF) enabled Post's participation in the
30th Dar es Salaam International Trade Fair (DITF) and the
International Franchise Expo (IFE) both held in June 2006.
By exhibiting with the first-prize winning USA pavilion at
the DITF, U.S. affiliated companies and non-profit
organizations achieved valuable brand promotion, received
orders and made important business contacts. One company has
reported over USD 2 million in sales of U.S. equipment linked
to its exhibit at DITF 2006. Participation in the IFE also
proved highly successful, with one Tanzanian entrepreneur
finalizing a franchise agreement and paying initial fees for
two additional franchises. BFIF allocated a total of USD
14,075 for both activities: USD 10,500 for DITF and USD 3,575
for IFE. Of the total BFIF funds allocated, post's
expenditures amounted to USD 12,873.51; a balance of USD
1,201.49 remains in fund cite. END SUMMARY.

USA Pavilion at Saba Saba
--------------

2. (U) BFIF allocated USD 10,500 for post's participation in
the 30th Dar es Salaam International Trade Fair (DITF),known
locally as "Saba Saba." Total costs amounted to USD
approximately USD 9,493. The following budget outlines the
costs associated with post's coordination of the USA
pavilion:

Item Cost (USD)
--------------
Booth Space 5,875.00
FCS Travel and per diem 1,999.13
Pavilion Decorations/Cleaning 690.71
Welcome Banner 278.62
Catalogue 383.73
Transport Admission Badge 239.23
Generator petrol/padlock 27.03
--------------
TOTAL: 9,493.45


3. (U) The following participants exhibited within the USA
pavilion from June 29 to July 9, 2006:

-- TechnoServe (USAID partner)
-- DAI Pesa (USAID partner)
-- Kickstart (USAID partner
-- Caltex
-- Colgate-Palmolive
-- World Initiative for Soy in Human Health
-- SSTL Security Group
-- Goodyear Tyres
-- Elite Computers (distributing Apple computers and ipods)
-- Nufaika (sole distributors of Proctor and Gamble products
such as Pringles)
-- U.S. Foreign Commercial Service, Nairobi


4. (U) For our partners, the U.S. affiliated companies and
organizations listed above, exhibiting at the DITF provided
an invaluable opportunity for brand promotion at a two-week
event attracting more than 300,000 visitors.
Colgate-Palmolive, for example, distributed over 10,000
brochures on "dental tips" to educate the Tanzanian public
about oral hygiene and Caltex used the opportunity to
introduce new lubricant products to the market place. SSTL
Security Group, which sells U.S. security equipment from GE,
Astrophysics and Honeywell, has reported USD 2 million in
sales stemming from its DITF participation. The U.S. Embassy
won first prize for "best foreign exhibitor" and, most
importantly, the USA pavilion provided an excellent
opportunity for outreach and education on key Embassy
services and USG programs including, the African Growth and
Opportunity Act (AGOA),Foreign Commercial Services (FCS)
from Gold Key to International Partner Searches, and Public
Diplomacy's "Information Resource Center" for educational
advising.

Thirteen Entrepreneurs to International Franchise Expo
-------------- --------------

5. (U) BFIF set aside USD 3,575 for post's coordination of a
Tanzanian business delegation to the 2006 International
Franchise Expo (IFE). Total costs amounted to USD 3,380.
The following budget outlines the travel and per diem costs
for one locally employed staff, Frederick Maeda, to escort
the delegation of 13 Tanzanian entrepreneurs to the IFE:

Item Cost (USD)
--------------
Airfare for F Maeda 1,402.06
Travel Voucher for F Maeda 1,978.00
--------------
TOTAL: 3,380.00


6. (U) In spring 2006, post recruited 13 Tanzanian private
sector participants for the 2006 IFE, which took place from
June 2-4 at the Washington D.C. Convention Center. The
Embassy's Commercial Assistant, Frederick Maeda, escorted the
group of participants more than half of whom had never
traveled to the U.S. before. The delegation represented a
cross section of Tanzania's small and medium sized
entrepreneurs (SME) in line with the 2006 IFE's theme of
franchising as a tool for SMEs. The following Tanzanian
entrepreneurs attended the 2006 IFE:

-- Rosemary Kitilya, CEO of H&R Consultants
-- Dr. Jabu Mwasha, Managing Director of Tan Veterina
-- Amedeus Chaky, Managing Director of Ametech Tanzanian
Trading Company
-- Charles Singili, CEO of Azania Bancorp
-- Joseph Kusaga, CEO of Clouds FM Radio Station
-- Ally Madikah, CEO of Atma Electronics and Software
-- Constantine Mnzeru, Atma Electronics
-- Kulwa Mapigano, Operations Manager of Planatel
-- Malik Alani, CEO of Topic64 Computer
-- Lukonge0M`cnvr+2RK`qjQDaeG.QYp)vgja""QtGdQQQQ veral positive results including:

-- One franchise agreement finalized (Total: USD 250,000)
Amadeus Chacky finalized a franchise agreement for
Sign-A-Rama, which he had initiated in 2004. Chacky
transferred USD 250,000 for the needed equipment to begin
operations in Tanzania.

-- Two new franchise agreements signed (Total: USD 60,000)
Amedeus Chacky bought two more U.S. franchises, EmbroidMe and
Billboard Connection, which are sister companies to
Sign-A-Rama. Chacky paid USD 60,000 as initial fees for a
Master Franchise Agreement for East and Central Africa.

-- Mutual Non-Disclosure Agreement signed: Ally Madikah of
Atma Electronics has entered into a Mutual Non-Disclosure
Agreement and negotiations regarding potential partnership
with Business COM, an internet franchise involving service
equipment and bandwidth provision.

-- Potential ventures on horizon: Ally Madikah is also now
working with Tiffany Marble Molds International, which is
based in California, to explore possibilities of establishing
a marble project in Tanzania. Dr. Jabu Mwasha of Tan
Veterina reported that he is currently working to acquire
FACES, a cosmetic franchise business with more than 50 stores
worldwide and Joseph Kusanga of Clouds FM is in discussions
with Black Entertainment Television (BET) for acquisition of
television broadcasting equipment.

Comment: BFIF Effective Tool for Private Sector Outreach
-------------- --------------

8. (U) Tangible results from 2006 BFIF-funded activities
include the sale of more than USD 2 million in U.S. security
equipment and three additional U.S. franchises: Sign-A-Rama,
EmbroidMe, and Billboard Connection. Through their feedback,
however, participants in both the DITF and IFE, have
emphasized intangible, yet equally important, results such as
brand promotion, public outreach, exposure to new business
models and new business contacts. Post appreciates BFIF
support and believes funding crucial to advance private
sector strengthening efforts in Tanzania's transitioning
economy. END COMMENT.
RETZER