TANZANIA FY09 PROPOSAL FOR BUSINESS FACILITATION INCENTIVE

UNCLAS DAR ES SALAAM 000014

SIPDIS

DEPT EEB/CBA FOR DWINSTEAD, AF/E FOR JLIDDLE, AF/EPS
NAIROBI FCS FOR JSULLIVAN

E.O. 12958: N/A
TAGS: BEXP BTIO ECON EINV ETRD TZ
SUBJECT: TANZANIA FY09 PROPOSAL FOR BUSINESS FACILITATION INCENTIVE
FUND (BFIF)

REF: A: 2008 STATE 128559
B: 2008 DAR ES SALAAM 526


1. SUMMARY. In response to ref A, we request Business Facilitation
Incentive Funds (BFIF) to support one FY2009 project: a "Trade USA"
pavilion at the Dar es Salaam International Trade Fair (DITF) in
June-July 2009. The "Trade USA" pavilion, which builds on past
successes, will support the Mission Strategic Plan (MSP) economic
strategy, which prioritizes promoting growth through investment and
trade linkages. The pavilion will target important growth sectors,
including information technology, manufacturing, horticulture and
agro-processing. END SUMMARY.

Dar es Salaam International Trade Fair


2. The 2009 Embassy pavilion will build on the highly successful
outcome of the Embassy's 2008 DITF exhibition, at which the "Trade
USA" exhibit won first place recognition for innovation and
excellence of presentation among foreign-government sponsored
exhibits (ref B). The pavilion was compromised of 23 booths, which
housed exhibits from the U.S. Mission, including a booth featuring
AGOA, and 15 U.S. companies and affiliates. The "Trade USA"
pavilion attracted a steady stream of visitors from the private
sector, the government and the general public. In 2008, over
500,000 people visited the DITF. We estimate that at least fifty
percent of visitors toured the "USA Trade" pavilion.


3. In 2009, the Embassy expects the pavilion will be comprised of
between 20 and 25 exhibit booths, which will include: three to four
booths housing U.S. Mission programs; two to four booths housing
USAID affiliated organizations; and, 12 - 20 booths housing U.S.
affiliated private businesses. In past years, the pavilion's
participating U.S. affiliated businesses exhibited U.S. products and
services from industries such as construction, farming,
communication, energy and natural resources, household products,
foodstuffs and music.


4. Tanzania continues to have substantial untapped potential for
exports to the U.S. under the African Growth and Opportunity Act
(AGOA). DITF provides U.S. companies already established in
Tanzania, or companies doing business in Eastern or Southern Africa,
the opportunity to make sales, take orders, disseminate market
information and survey potential customers--all working toward
reinforcing U.S.-Tanzanian trade linkages.

Planning Milestones


5. In preparation for the DITF 2009 exhibition, Post will work with
the Government of Tanzania, in particular the Board of External
Trade, as well as US Mission organizations, the Foreign Commercial
Service, the American Business Association, U.S companies and
affiliates established in Tanzania to coordinate and improve the
"Trade USA" pavilion. Planning milestones include:

- February 2009: Reserve space at DITF for the "Trade USA" pavilion
through the Board of External Trade.

- April 2009: First planning meeting of 2009 "USA Trade" pavilion
participants

- April 2009: Planning, preparing and acquiring information,
literature, catalogues and presentation for the "Trade USA"
pavilion.

- April 2009: Planning, designing and ordering building materials
for the "Trade USA" pavilion.

- May 2009: Organizing the multi-agency staffing for the US Mission
booths during the 10-day fair.

- June 2009: Second planning meeting of DITF participants

- June 2009: Assembling and setting up the "Trade USA" pavilion.

Anticipated Outcomes


6. At the DITF 2008, the fifteen participating U.S. and
U.S.-affiliated companies increased sales and/or contacts through
participation in the "Trade USA" exhibit. The Embassy anticipates
the long-term outcomes of the DITF 2009 to include:

- increased sales for U.S. and U.S.-associated companies in Tanzania
and the region;

- increased exposure to U.S. franchises;

- a better understanding of the opportunities offered under the
African Growth and Opportunity Act (AGOA);

- increased exposure by Tanzanian businesspersons and investors to
the importation and use of U.S. products.

Estimated Costs


7. Post estimates the total cost of the 2009 DITF "Trade USA"
pavilion to be USD 8,800.00. This estimate reflects an expected 9%
increase over 2008 costs to account for inflation. This funding
will be used to pay for the following items:

- DITF Pre-show Seminar Participation Fee: $25.00

- DITF Booth Rental Fees (three U.S. mission booths): $4500.00

- DITF Parking Sticker: $340.00

- Security Guards for the "USA Trade Pavilion": $990.00

- Printing 500 "USA Trade Pavilion" Brochures: $1220.00

- Decorations and Cleaning: $1690.00


8. Post POC is Patrick Brown; Tel: 255-22-266-8001 x4166; Fax
255-22-266-8296, email brownpj@state.gov.

GREEN