EMBASSY MAPUTO HOSTS U.S. INVESTOR CONFERENCE

UNCLAS SECTION 01 OF 02 MAPUTO 000971 SIPDIS STATE FOR EEB/CBA DWINSTEAD STATE PLEASE PASS TO USAID E.O. 12958: N/A TAGS: BEXP EINV ECON ETRD AMGT MZ SUBJECT: EMBASSY MAPUTO HOSTS U.S. INVESTOR CONFERENCE REF: 08 MAPUTO 715 ¶1. SUMMARY: In an environment of economic crisis, Mission Maputo's State and USAID colleagues partnered to increase investor interest in Mozambique's commercial opportunities, drawing upon the Department of State's FY09 Business Facilitation Incentive Fund (BFIF) and joining efforts with the USAID mission and regional representatives from the Foreign Commercial Service (FCS) and Foreign Agricultural Service (FAS) to successfully hold a two-day Trade and Investment Conference, July 15 and 16 in Maputo. The outcomes highlight the impressive potential return for American business from the USG's modest BFIF outlay. END SUMMARY. -------------- -------------- U.S. MISSION'S LARGEST TRADE/INVESTMENT CONFERENCE -------------- -------------- ¶2. In opening the conference on July 15, the Charge addressed 180 participants, primarily from U.S. companies with a presence in the region, describing commercial opportunities in Mozambique, doing business in the country, and the importance of building capacity for transformational change through trade rather than aid, stating that conferences like these allow U.S. companies to meet their counterparts and "get down to business." Mozambican President Armando Guebuza inaugurated the event, highlighting the GRM's focus on attracting foreign investment, commenting on our excellent diplomatic relations, and explaining that the great distances between the United States and Mozambique were shortened by the strength of the countries' cooperation and friendship. Guebuza, who skipped a meeting of the Non-Aligned Movement in Egypt in order to be present, was joined by senior cabinet members, including Minister of Commerce and Industry Antonio Fernando, Minister of Mineral Resources Esperanca Bias, Minister of Energy Salvador Namburete, Minister of Tourism Fernando Sumbana, and a senior representative of the Minister of Agriculture. Corporate Council on Africa's (CCA's) Ronald Langston also addressed the audience in Maputo, outlining the entrepreneurial case for investing in Africa. -------------- DELIVERABLES -------------- ¶3. Deliverables from the conference include a planned reverse agriculture Trade Mission in coordination with CCA, three confirmed projects totaling more than $20 million in new investment, new impetus for the formalization of the status of Maputo's American Chamber of Commerce (CCMUSA), additional planned informational DVCs for investors, and greater international press focusing on Mozambique as an investor destination. Participant survey results confirmed that the high level of participation by Mozambican companies and government officials in key areas of agriculture, tourism, natural resources, and energy suggest that Mozambique is serious about attracting additional U.S. foreign investment. -------------- EXPENDITURES -------------- ¶4. Post confirms that USD 4551.12 was spent against the BFIF project budget of USD 6,750 for Mozambique for FY09, with USD remaining 2198.88. Copies of receipts and other back-up documentation have been faxed to EEB/EX. Below please find specific fiscal information for each approved project. Project: CS-State Regional Training and Strategic Planning Program-Johannesburg Amount of Grant: USD 1,750 Total Amount Liquidated: USD 1,742.91 USD 570.79 Airfare to Maputo/Johannesburg USD 154.00 Transport by Personal Vehicle Maputo/JHB USD 801.75 M&IE (2) USD 216.37 Taxi Fees (2) Project: U.S. Trade and Investment Conference Amount of Grant: USD 5,000 Total Amount Liquidated: USD 2,808.21 USD 520 Invitation cards with gold seal USD 42 Invitation cards with envelopes MAPUTO 00000971 002 OF 002 USD 472.32 U.S./Moz flag pins USD 61.60 Transportation Costs USD 875.75 Choir for the Mozambican Anthem USD 177.40 Airport Fee to hang banner USD 394.09 Printing of Welcome Kit Folders USD 4.57 Receipt Books USD 260.48 Cables for the projectors -------------- -------------- COMMENT: MAPUTO CONFERENCE GETS INVESTORS' ATTENTION -------------- -------------- ¶5. While Post hosted a similar conference last year (reftel),the 2009 iteration was more successful and ambitious, with three new confirmed U.S. investments totaling more than $20 million. Mission Maputo expects post-conference buzz to generate a significant amount of additional investor interest, particularly in the areas of large-scale agriculture and forestry investments. This successful trade and investment conference, and the participation of the highest levels of the GRM confirm that Mozambique is ready to "get down to business." CHAPMAN