2009 BUSINESS FACILITATION INCENTIVE FUND PROPOSAL

UNCLAS SECTION 01 OF 02 LUSAKA 000034

SIPDIS

DEPT FOR EEB/CBA (DENNIS WINSTEAD)

E.O. 12958: N/A
TAGS: ABUD AMGT BEXP BTIO ECON EINV ETRD ZA
SUBJECT: 2009 BUSINESS FACILITATION INCENTIVE FUND PROPOSAL

REF: A. SECSTATE 128559

B. WINSTEAD-TREMONT E-MAIL (DECEMBER 9

C. 2008)


1. This cable is a response to the reftel solicitation for
Business Facilitation and Incentive Fund (BFIF) proposals.
Embassy Lusaka requests financial support for three business
promotion and commercial outreach activities. Points of
contact for all projects are:

Pam Tremont, Pol/Econ Chief
Tel.: 260-211-250-955, ext. 2251
E-mail: TremontPM@state.gov

Vedruna Santana, Commercial Assistant
Tel.: 260-211-250-955, ext 2321
E-mail: SantanaVJ@state.gov


2. PROJECT ONE: Regional Commercial Service-State
Commercial Training and Strategic Planning Program. The
Commercial Service-State Post Partnership Program will
strengthen the Mission's ability to support U.S. business
interests in Zambia. Per Ref B, on December 9, EEB/CBA
notified Post that it had been selected as a top tier
commercial post for the Africa region. EEB/CBA also invited
Post to nominate two candiates to participate in a regional
training event that will take place in Johannesburg on
February 17-20, 2009. Estimated costs are likely to be
approximately USD 2,700, consisting of per diem for four
training days plus two travel days (USD 850 x 2) as well as
airfare (USD 500 x 2).


3. PROJECT TWO: Biotechnology Outreach. Senior government
officials have indicated that the Zambian Government may be
prepared to lift its ban on imported products containing
genetically modified material, with the possible exception of
bioengineered seed. Given the opportunities that this poses
to U.S. businesses as well as Zambian food security, Post
requests funding to pay for the visit of an expert on
biotechnology. Post would host a series of meetings with
policy-makers, civil society organizations, farmers
associations, parliamentarians, and journalists to discuss
how drought-resistant genetically modified seed and other
biotechnology products could benefit Zambian farmers and
consumers alike. May would be the ideal timing for the
meetings. Total cost of the project would be USD 4,000,
consisting of airfare (USD 2,500) and per diem and lodging
(USD 1,500). The objective of the program is to persuade the
Zambian Government to lift its ban on all biotechnology,
including seed.


4. PROJECT THREE: Development of a White Paper on
Investment Opportunities and Constraints. Economic growth is
Post's top Mission Strategic Plan priority, above health care
and education. Only through private sector-led economic
growth will Zambia develop sustainable food security,
alleviate widespread poverty, create adequate educational
opportunities, and control HIV/AIDS, malaria, and other
health epidemics. Given the abundance of natural resources
in Zambia and the improving business climate, opportunities
abound for U.S. businesses. Notwithstanding these prospects,
the U.S. commercial footprint in Zambia remains small. The
few U.S. companies that operate in Zambia fare well, yet are
quick to point out obstacles to doing business.


5. Post proposes developing a detailed white paper on
investment opportunities and constraints that would form the
basis for diplomatic engagement with the Zambian Government
and that could also be a tool to increase U.S. investor
awareness and confidence. The white paper would supplement
Embassy Lusaka's Investment Climate Statement by pinpointing
specific obstacles to economic growth and encouraging open
markets and better governance. The timing for such a project
is particularly appropriate, given the decline in world
copper prices and Zambia's subsequent emphasis on
diversifying its economy in order to promote non-traditional
exports, particularly in the agricultural sector. The paper
would identify and examine the impacts of trade barriers
(including those on biotechnology). The white paper would
also provide a gauge and outline for Zambia's eligibility for
a Bilateral Investment Treaty. Ultimately, the white paper
would help develop Zambia as an export market for U.S.
products and improve Zambia's competitiveness as an
investment destination.


6. Post will award the contract to an outside consultant,
which will conduct surveys in the business community,
interview business leaders, government officials, and civil
society representatives, and examine existing laws and
regulations. Post anticipates soliciting bids in March,

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awarding the contract in early April, and completing the
report by June. Total cost of the paper would be
approximately USD 5,000. The performance metric for the
project's success will be the level of bilateral U.S. trade
as well as the value of Zambian non-traditional exports.

BOOTH