ZIMBABWE 2010 BFIF PROJECT PROPOSAL

UNCLAS SECTION 01 OF 02 HARARE 000045 SIPDIS DEPT FOR EEB/CBA - DENNIS A. WINSTEAD E.O. 12958: N/A TAGS: BEXP ECON EINV ETRD ZI SUBJECT: ZIMBABWE 2010 BFIF PROJECT PROPOSAL REF: STATE 126674 -------------- SUMMARY -------------- ¶1. Embassy Harare proposes three projects to be supported by the Business Facilitation Incentive Fund (BFIF). The total amount of BFIF support requested is $15,000. ¶2. The common theme of the projects is transparency and good governance. Zimbabwe is once again open for business after several years of sharp macroeconomic decline, hyperinflation, and acute political uncertainty. But the business climate remains difficult and is the main constraint on opportunities for American firms. In the World Bank's latest "Doing Business" report, Zimbabwe ranked 28th in Africa, well behind South Africa, Botswana, and Namibia, which were second, third, and fourth, respectively. More than ever, Zimbabwe's economic fortunes and opportunities for American businesses now depend on restoring confidence, especially with respect to transparency and governance. All three projects presented below will be implemented by the American Business Association of Zimbabwe (ABAZ),which achieved notable success with BFIF support in previous years. END SUMMARY. -------------- EITI Policy Dialog -------------- ¶3. Lack of transparency and poor governance in Zimbabwe's mining sector have featured in local headlines in recent years and also attracted international attention. Improving standards of governance is essential to attracting vital investment to Zimbabwe's mining industry and creating opportunities for American businesses. In recent months, local business leaders and industry experts have begun efforts to gain Zimbabwe's participation in the Extractive Industries Transparency Initiative (EITI). Turning this effort into a productive dialog can create more opportunities for U.S. exports to Zimbabwe. ¶4. To bring momentum to this incipient effort, ABAZ intends to organize an EITI Policy Dialog that would bring together GOZ policymakers and local business leaders. So far, the GOZ has expressed openness to EITI in principle but taken no action. The proposed BFIF-supported EITI Policy Dialog will allow ABAZ to put this subject on the public agenda. ABAZ would use $2,500 in BFIF support to cover the cost of hiring a venue and preparing briefing materials for this one-day event. -------------- "Just Business" 2010 -------------- ¶5. ABAZ organized an annual "Just Business" forum from 2006 through 2008, but the unsettled circumstances of early 2009 made it impossible to plan a forum for that year. The successes of previous "Just Business" events and changes in Zimbabwe's economic circumstances have led to strong demand among ABAZ members and other participants to resume the series. ¶6. The 2010 "Just Business" forum will expand the usual one-day schedule to two. ABAZ has chosen the theme, "Creating Investor Confidence through Governance and Transparency." In addition to inviting business leaders to address the forum, this year's event will also include workshop sessions aimed at producing an action agenda for improving Zimbabwe's business climate. The workshops will prioritize the challenges in Zimbabwe's business climate and propose an agenda for action. A specific aim of the workshops will be to identify actions the GOZ and Zimbabwe's business associations can take to improve the country's ranking in the World Bank's "Doing Business" rankings. ¶7. The level of BFIF support needed for the "Just Business" forum is $10,000. Half of this amount would be used to cover the cost of the venue and refreshments. A further $3,000 will pay for pre-event Qvenue and refreshments. A further $3,000 will pay for pre-event publicity and communications, and $2,000 will be used for media coverage and publications. ABAZ aims to raise at least $75,000 in contributions from other sources to cover the balance of the costs for the event. -------------- Reviving the ABAZ Website -------------- ¶8. Past "Just Business" events have sparked continuing debate on economic policy issues and the challenges of doing business in Zimbabwe. For this year's event, ABAZ members want to put renewed effort into continuing advocacy for transparency and good governance. The ABAZ website is an ideal tool for this purpose, but it has not been operational since late 2008, due to the chaos induced by hyperinflation. The full cost of reviving the ABAZ HARARE 00000045 002 OF 002 website is estimated to be $5,000, of which $2,500 will be BFIF support for re-design of the website. ¶9. Post's top priority among these three projects is the "Just Business" forum, which is tentatively planned for late August. If funded, the EITI Policy Dialog would take place in March. Work on the ABAZ website would commence once funding is available. Post's point of contact is EconOff James Garry (garryjc@state.gov). RAY