Identifier
Created
Classification
Origin
07MAPUTO93
2007-01-22 05:24:00
UNCLASSIFIED
Embassy Maputo
Cable title:  

Embassy Maputo's FY07 BFIF Proposal

Tags:  BEXP BTIO ECON ETRD EAID EINV ABUD MZ 
pdf how-to read a cable
VZCZCXYZ0002
RR RUEHWEB

DE RUEHTO #0093/01 0220524
ZNR UUUUU ZZH
R 220524Z JAN 07
FM AMEMBASSY MAPUTO
TO SECSTATE WASHDC 6725
UNCLAS MAPUTO 000093 

SIPDIS

INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
MILLENNIUM CHALLENGE CORPORATION
DEPT OF COMMERCE WASHDC

SIPDIS

EB/CBA FOR DWINSTEAD
AF/S FOR HTREGER
PRETORIA FOR FAS: RBICKFORD
JOHANNESBURG FOR FCS: PWARD
JOHANNESBURG FOR TDA: DSHUSTER

E.O. 12958: N/A
TAGS: BEXP BTIO ECON ETRD EAID EINV ABUD MZ
SUBJECT: Embassy Maputo's FY07 BFIF Proposal

REF: 06 State 189849

UNCLAS MAPUTO 000093

SIPDIS

INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
MILLENNIUM CHALLENGE CORPORATION
DEPT OF COMMERCE WASHDC

SIPDIS

EB/CBA FOR DWINSTEAD
AF/S FOR HTREGER
PRETORIA FOR FAS: RBICKFORD
JOHANNESBURG FOR FCS: PWARD
JOHANNESBURG FOR TDA: DSHUSTER

E.O. 12958: N/A
TAGS: BEXP BTIO ECON ETRD EAID EINV ABUD MZ
SUBJECT: Embassy Maputo's FY07 BFIF Proposal

REF: 06 State 189849


1. Post requests funding in the amount of USD 25726 under
the Business Facilitation Incentive Fund (BFIF) for FY07.


2. Embassy Maputo proposes the following project for FY07.
We are requesting funding for only one project as we
consider Commercial Outreach essential to increasing trade
between the US and Mozambique.

-------------- --------------
Project 1: Commercial Outreach, USG Trade Agency Promotion
and US Export Market Development
-------------- --------------


A. Justification.

Commercial outreach, including conveying information about
increased trade potential under AGOA, OPIC and Ex-Im
financing possibilities and trade show opportunities, is
critical to strong US participation in Mozambique's economic
growth, as well as increased exports to Mozambique.
Mozambique's large size (twice as big as California and
twice as long) and restrictive transport infrastructure
means that commercial outreach activities in the capital
city, Maputo - which is located in the far southern corner
of the country and has less than 10 percent of the country's
population - reach only a very limited audience. For would-
be US exporters and investors to fully benefit from Post's
commercial outreach, it is essential that available programs
and information be disseminated throughout the country. For
this reason, Post believes that one of the most critical
roles of the Commercial Section is to conduct commercial
outreach throughout the country.

Commercial outreach beyond Maputo City continues to be a
vital tool to increasing trade between the U.S. and
Mozambique. Outreach this year also will be timely, with
the Millennium Challenge Corporation (MCC) in the final
stages of negotiating a compact that is likely to provide

opportunities for US companies to enter into Mozambique.
This compact focuses on the northernmost provinces, where
other exciting synergies are occurring. In Cabo Delgado,
exploration for oil and gas by American company Anadarko
will soon begin. USAID has an ongoing project in the north
to develop the tourism industry. (Note: USAID's program
encompasses Cabo Delgado, Niassa and Nampula provinces. End
Note) Tete continues to be the focus of interest as a giant
Brazilian consortium, in conjunction with a U.S. investor,
moves forward with development of rich coal deposits in the
area. Ancillary business and export opportunities are
likely to follow all of these activities. The goal of
Post's Commercial Section is to ensure that information and
opportunities are widely disseminated and relationships with
valuable contacts deepened.


This project proposal corresponds with Post's MPP goal of
promoting economic growth and development - namely, to
improve the business and investment climate; encourage
mechanisms that build Mozambique's competitiveness and trade
capacity and help U.S. investors and exports; and to promote
rural income growth. This outreach program will build off
of the BFIF-supported Commercial Outreach conducted in
summer and fall 2005 and supports the Hub's, USDA's and
USAID's continuing program activities.



B. Planning Milestones.

Post will build off of the Commercial Outreach programs
conducted with our BFIF FY06 grant, expanding the program to
reach even more potential investors/purchasers.

Commercial Outreach Content:

The cornerstone of the Commercial Outreach project involves
roundtable meetings with local politicians, businesspeople,
entrepreneurs, academics, farmers and commercial
associations to discuss all of the following:

-- Business Concerns
-- Trade Facilitation Issues
-- Success Stories

-- AGOA, OPIC, ExIm Bank, USDA, FSC and USTDA
programs and opportunities
-- American products and services relevant to
the region/specific businesses

Along with meeting with the Mozambican community, it is
important that the Commercial Outreach include meetings with
U.S. businesses located in the provinces to discuss
investment concerns and opportunities and, time permitting,
site visits.

Travel:

April 2007: Niassa/Cabo Delgado Provinces
May 2007: Nampula/Zambezia/Sofala Provinces
June 2007: Inhambane/Gaza Provinces
July 2007: Manica/Tete Provinces
August 2007:Maputo Province (no flight travel
necessary)


C. Estimated Costs.

The estimated cost for the Commercial Outreach program is
USD 25726.

i. Tete/Nampula/Cabo Delgado Provinces
Total Cost: USD 8848
USD 2660 - Airfare
USD 4188 - Lodging/Per diem
USD 1500 - Transportation
USD 500 - Conference Room

ii. Niassa/Zambezia Provinces
Total Cost: USD 6996
USD 2200 - Airfare
USD 3196 - Lodging/Per diem
USD 1200 - Transportation
USD 400 - Conference Room

iii. Inhambane/Gaza Provinces
Total Cost: USD 4836
USD 1140 - Airfare
USD 2396 - Lodging/Per diem
USD 900 - Transportation
USD 400 - Conference Room

iv. Manica/Sofala Provinces
Total Cost: USD 5046
USD 1350 - Airfare
USD 2396 - Lodging/Per diem:
USD 900 - Transportation:
USD 400 - Conference Room:



D. Point of Contacts (USDH and FSN).
Brooke L. Williams
Economic/Commercial Officer
Telephone: 258-21-492797 ext. 3422
Email: WilliamsBL@state.gov

Elizabeth Filipe
Economic/Commercial Assistant
Telephone: 258-21-492797 ext.4459
Email: FilipeEC@state.gov


E. Leveraging Funding.

Post reviewed possibilities for leveraging funding from
other agencies. Post has discussed the possibility of other
agencies joining the Economic/Commercial Officer on
Commercial Outreach trips (USDA/FAS and the Trade Hub) in
order to create synergies between agencies and increase
impact. Both agencies have indicated their willingness to
fund regional representatives during one or more provincial
trips. Post also plans on working with USAID when setting
travel dates to build off of existing USAID travel plans.


F. Outcome/Success Criteria.

A successful outcome will see increased interest on the part
of Mozambican companies, farmers, entrepreneurs and
businesspeople to buy American and greater utilization of US
agency products and expertise to help facilitate purchase
transactions. In addition, the project will be successful

if Post is able to provide more specific, guided assistance
to an increased number of potential U.S. investors and/or
exporters regarding potential markets and opportunities.
Likewise, Post expects this Commercial Outreach to increase
the Mozambican investors' and entrepreneur's knowledge of
AGOA, OPIC and ExIm Bank, increase export of product to the
United States and increased ability to understand and
navigate U.S. import requirements. Ultimately, a successful
outcome will be reflected in increased trade and investment.
To assess effectiveness of the Commercial Outreach program,
Post has identified three main indicators to monitor
success: 1) U.S. Exports to Mozambique, 2) Mozambican
Exports to the U.S., and 3) Share of Foreign Direct
Investment in the Mozambican Economy.


G. Follow-Up Strategy.

Post will continue regular outreach with contacts in each
province, providing them with US trade policy guidance,
information on trade show opportunities. These contacts
will also allows Post to remain informed regarding potential
investment and export opportunities for U.S. companies and
to provide current assessments of provincial and national
business environment. In addition, Post will continue
ongoing contact with the GRM, as well as will new contacts
made on the provincial level, to support business-friendly
commercial, legal and labor reforms and implementation.


Dudley