Identifier
Created
Classification
Origin
07COTONOU93
2007-02-08 05:02:00
UNCLASSIFIED
Embassy Cotonou
Cable title:  

BENIN: US-BENIN BILATERAL BUSINESS FORUM WRAPUP AND NEXT

Tags:  BEXP ECON EINV BN 
pdf how-to read a cable
VZCZCXRO1462
RR RUEHMA RUEHPA
DE RUEHCO #0093/01 0390502
ZNR UUUUU ZZH
R 080502Z FEB 07
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC 9229
INFO RUEHLMC/MILLENNIUM CHALLENGE CORP
RUEHZK/ECOWAS COLLECTIVE
UNCLAS SECTION 01 OF 02 COTONOU 000093 

SIPDIS

SIPDIS

EB/CBA FOR DENNIS WINSTEAD
AF/W FOR DANA BANKS
DAKAR FOR FCS (CGRIFFIN-GREENE)
ACCRA FOR USAID (KMCCOWN)

E.O. 12958: N/A
TAGS: BEXP ECON EINV BN
SUBJECT: BENIN: US-BENIN BILATERAL BUSINESS FORUM WRAPUP AND NEXT
STEPS

REF: A) 06 STATE 189849; B) STATE 12989; C) WINSTEAD/HALL EMAIL

EXCHANGE OF 1/29

COTONOU 00000093 001.2 OF 002


UNCLAS SECTION 01 OF 02 COTONOU 000093

SIPDIS

SIPDIS

EB/CBA FOR DENNIS WINSTEAD
AF/W FOR DANA BANKS
DAKAR FOR FCS (CGRIFFIN-GREENE)
ACCRA FOR USAID (KMCCOWN)

E.O. 12958: N/A
TAGS: BEXP ECON EINV BN
SUBJECT: BENIN: US-BENIN BILATERAL BUSINESS FORUM WRAPUP AND NEXT
STEPS

REF: A) 06 STATE 189849; B) STATE 12989; C) WINSTEAD/HALL EMAIL

EXCHANGE OF 1/29

COTONOU 00000093 001.2 OF 002



1. SUMMARY. Embassy Cotonou and USAID's West Africa Trade Hub (Ghana
office) sponsored the "US-Benin Bilateral Business Forum", January
25-26. The event, which was organized in collaboration with the
Chamber of Industry and Commerce of Benin (CCIB),the Ministry of
Foreign Affairs, and the Ministry of Development, Economy and
Finance, brought together USG representatives, GOB policymakers,
corporate executives, and Beninese entrepreneurs to discuss the
business climate and to present USG business facilitation and
promotion agencies to key economic stakeholders in Benin. Over 100
officials and businesspeople attended on both January 25 and January

26. END SUMMARY.

PROGRAMMATIC OUTCOMES
--------------


2. Opened on January 25 by GOB Minister of Finance Pascal Koupaki
and Ambassador, the first day of the forum provided a venue for
in-depth discussion of the business climate in Benin, presentations
on key business issues including importing from - and exporting to -
the United States, transportation and customs, financing commercial
activities, and the prospects for using gas from the West Africa Gas
Pipeline (WAGP) to allow Benin to augment its capacity to generate
electric power. Regional Senior Commercial Officer Cynthia
Griffin-Greene gave a presentation on USG business facilitation and
promotion agencies, including the US Foreign Commercial Service and
EXIM Bank and MCA Benin National Coordinator Simon Pierre Adovelande
made a presentation on the components and objectives of the
Millennium Challenge program in Benin.


3. January 26 was dedicated to the detailed presentation and
discussion of how Beninese entrepreneurs (particularly those in the
textile and agribusiness sectors) can and should derive benefit from
AGOA's provisions.


4. On both days the forum provided a venue for in-depth discussion
and debate, sometimes heated, of the business climate in Benin and
the existing constraints to its development. The presentations on

both days were balanced by "testimonials" from Beninese
businesspeople who are actively importing from (or exporting to) the
US. The forum also allowed for coffee-break, lunch-time, and
pull-aside discussions between those seeking to do business with the
United States.


5. Constraints present in the business climate discussed during the
forum included the comparatively high cost in Benin of electric
power and telecommunications, difficulties SMEs face in obtaining
loans, and red tape. According to the World Bank's "Doing Business"
statistics in Benin it takes 31 days to register a new business; 333
days to obtain the permits to build a warehouse and secure water,
electricity, and phone service; and a minimum of 5 days for a
container of goods to clear customs at the Port. Some participants
complained about cheap Chinese products being "dumped" in Benin, but
Beninese customs officers (who participated on both days of the
forum) also came in for strong criticism from entrepreneurs, to
which they responded. During a session on financing business
operations, a presenter from Ecobank rebuffed hostile questions by
pointing out that banks charge SMEs loan interest rates in the
neighborhood of 15% because they have a high number of
non-performing loans in their SME portfolios.

FOLLOW UP AT POST
--------------


6. Post intends to follow up on this event with a trade delegation
in 2007 and by using information from this workshop to develop a
more focused approach to increasing bilateral trade, particularly in
the energy, agribusiness, and transportation sectors. The business
forum is already producing specific inquiries to the participating
USG agencies to access their services.

BACKGROUND
--------------


7. A key MPP objective at Embassy Cotonou is to promote and support
economic development in Benin. There is limited commercial activity
with the US at present (U.S.-Benin trade consists largely of used
car imports). However, Benin is anxious to become an international
business partner for the United States, attract foreign direct
investment, and make better use of its AGOA eligibility. The
US-Benin Bilateral Business Forum was an event designed to 1)
introduce Beninese policymakers and decision-makers, entrepreneurs,
and business support organizations to key USG partners such as EXIM,
USFCS, OPIC, USAID's West Africa Trade Hub, MCC, and others; 2)

COTONOU 00000093 002.2 OF 002


provide an opportunity to examine the existing constraints present
in Benin's business climate; and 3) examine how to increase
commercial activity between Benin and the United States.

ACTUAL EXPENDITURES
--------------


8. During the two-day business forum, USAID/WATH and CCIB covered
the following estimated costs:

Venue rental (2 days): $2,800
Catering services: $4,460
Publicity and materials (banners, pens, pads, etc.): $400

Embassy Cotonou paid for the airline travel of Dakar-based Regional
Senior Commercial Officer:

Travel/per diem of 1 USG participant: $1,000

Total estimated cost of event: $8,660

Per Ref B, Embassy Cotonou received approval to use BFIF funding to
defray the costs of organizing and hosting the business forum. Per
Ref C, Post will use these funds to fund the travel of the Regional
Senior Commercial Officer, publish and disseminate conference
materials, and further Post's business promotion activities.


9. Without generous funding and technical assistance (moderating,
AGOA-related presentations) from USAID's West Africa Trade Hub,
organizing the forum would not have been possible.

BROWN