VZCZCXRO6843
OO RUEHDU RUEHJO
DE RUEHTO #0097/01 0200955
ZNR UUUUU ZZH
O 200955Z JAN 06
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4868
INFO RUEHOR/AMEMBASSY GABORONE PRIORITY 1550
RUEHSA/AMEMBASSY PRETORIA PRIORITY 5294
RUEHDU/AMCONSUL DURBAN PRIORITY 0166
RUEHJO/AMCONSUL JOHANNESBURG PRIORITY 0652
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS SECTION 01 OF 06 MAPUTO 000097 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EB/EBA - DWINSTEAD, AF/S - HTREGER, AF/EPS 
COMMERCE FOR RTELCHIN 
PRETORIA FOR FAS:RBICKFORD 
GABORONE FOR TRADE HUB:AHILLEGAS 
JOHANNESBURG FOR FCS RDONOVAN 
DURBAN FOR FCS LKOHRS 
 
E.O. 12958: N/A 
TAGS: BEXP BTIO ECON ETRD AMGT EINV ABUD MZ
SUBJECT: EMBASSY MAPUTO'S FY06 BFIF PROPOSAL 
 
REF: 05 STATE 215954 
 
¶1. Post requests funding in the amount of USD 27,882 under 
the Business Facilitation Incentive Fund (BFIF) for FY06. 
 
¶2. In order of priority, we propose the following two 
projects for FY06: 
 
 
--------------------------------------------- -------------- 
Project 1:  Commercial Outreach, AGOA Promotion and U.S. 
Export Market Development 
--------------------------------------------- -------------- 
 
¶A. Justification. 
 
Commercial outreach, including conveying information about 
trade possibilities under AGOA and opportunities for US 
exports to Mozambique, is critical to strong US participation 
in Mozambique's economic growth.  Mozambique's large size 
(twice as big as Texas) and primitive transport 
infrastructure mean that business promotion activities 
conducted in the capital city, Maputo - which is located in 
the far southern corner of the country - reach only a very 
limited national audience.  For would-be business partners in 
other parts of the country to benefit from US commercial 
programs, these programs must be advertised and promoted by 
commercial outreach activities conducted within their 
communities. 
 
Conducting commercial outreach in the regions now is 
particularly timely.  The Millennium Challenge Corporation 
(MCC) is in the latter stages of negotiating a compact with 
Mozambique, with a formal signing expected this fall. 
However, MCC investment, some of it directed specifically 
toward improving the business environment, will be only in 
northernmost provinces.  In the west, in Tete province, a 
giant Brazilian consortium is beginning a massive program to 
exploit rich coal deposits in the region - and ancillary 
business opportunities are sure to follow.  Further south in 
Manica province, along the frontier with Zimbabwe, over the 
past several years hundreds of former Zimbabwean farmers have 
resettled in this rich agricultural area and are anxious for 
support and investment as they struggle to establish 
themselves. 
 
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 exporters; and to 
promote rural income growth.  The outreach program also 
builds off the BFIF-supported Entrepreneurship Forum held by 
Post and the Global Competitiveness Trade Hub in March 2005 
(with help from USDOC, USAID and USDA) and supports both the 
Hub's and USDA's continuing program initiatives. 
 
 
¶B. Planning Milestones. 
 
Program Approach/Content: 
------------------------- 
 
This project has a three-pronged approach, to be implemented 
in two phases:  1) Investment Concerns, 2) AGOA Education and 
3) U.S. Export-Market Expansion. 
 
Phase One: 
 
Post will conduct the following proposed program in Maputo 
city, Maputo province.  The program will be both developed 
and implemented with input from and coordination with USDA 
and the Trade Hub.  (Note:  USDA and the Hub will pay for the 
airfare, lodging and per diem of their representative to 
participate in this phase.  End note.) 
 
i. Day One:  Investment Concerns.  Econ/Pol Officer, Econ/Pol 
FSN and USDA and/or Hub representatives, will meet with U.S. 
businesses located in the province to discuss investment 
concerns and opportunities and, time permitting, visit 
investment sites. 
 
 
 
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* Missing Section 002 * 
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MAPUTO 00000097  003 OF 006 
 
 
States.  Post also anticipates increased knowledge regarding 
U.S. import requirements and important contact information 
for more detailed information. 
 
U.S. Export Market Expansion: 
 
Post expects that local officials, businessmen, prospective 
entrepreneurs, companies, farmers and related associations 
will learn the importance of a positive business and 
investment climate.  Post,s exposure to each province and 
potential investment and export opportunities outside of 
Maputo will enhance Post,s involvement with USG agencies and 
prospective investors/exporters in promoting U.S. business 
throughout Mozambique. 
 
Performance Metrics: 
 
i. Share of Foreign Direct Investment in the Economy 
ii. Exports as a Share of GDP 
iii. AGOA and other U.S.-assisted Exports to the U.S. 
iv. Average Rural Income Per Capita 
v. Policy Reforms Approved 
vi. Policy Reforms Implemented/Procedures Improved (e.g. 
Number of Days to Start a Business) 
vii. Demand for Business Development Assistance Services 
 
Note: Many of these metrics are also outlined in Post,s MPP, 
enabling project outcomes to be included in the Post,s, as 
well as EB,s, performance evaluation. 
 
 
¶D. Estimated Costs. 
 
The estimated cost for the Commercial Outreach, AGOA 
Promotion and U.S. Export Market Development Program is USD 
¶23206. 
 
i. Johannesburg/Pretoria Consultation Travel (2 persons, 4 
days/3 nights) 
 
Total Cost: USD 2696 
 
a. USD 1000/Round-trip Airfare 
b. USD 1396/Per diem (Lodging & MI&E) 
c. USD 300/Transportation (taxi) 
 
ii. Maputo Province (2 days) 
 
Total Cost: USD 1200 
 
a. USD 600/Conference Room 
b. USD 600/Translator 
 
iii.  Gaza/Inhambane Provinces (2 persons, 6 days/5 nights) 
 
Total Cost: USD 4976 
 
a. USD 1140/Round-trip Airfare 
b. USD 2396/Per diem (Lodging & M&IE) 
c. USD 840/Car rental 
d. USD 600/Conference Room 
 
iv.   Sofala/Manica Provinces (2 persons, 6 days/5 nights) 
 
Total Cost: USD 5186 
 
a. USD 1350/Round-trip Airfare: 
b. USD 2396/Per diem (Lodging & M&IE) 
c. USD 840/Car rental 
d. USD 600/Conference Room 
 
v. Tete/Nampula/Cabo Delgado Provinces (2 persons, 10 days/9 
nights) 
 
Total Cost: USD 9148 
 
a. USD 2660/Round-trip Airfare 
b. USD 4188/Per diem (Lodging & M&IE) 
c. USD 1400/Car rental 
d. USD 900/Conference Room 
 
 
 
MAPUTO 00000097  004 OF 006 
 
 
¶E. Post,s Point-of-Contact. 
Brooke L. Williams 
Economic/Commercial Officer 
Telephone:  258-21-492797, ext. 3422 
Email: WilliamsBL@state.gov 
 
 
¶F. Leveraging Funding. 
 
Post reviewed possibilities for leveraging funding from other 
agencies.  Post spoke with both USDA and the Trade Hub, who 
agreed to pay for their respective transport, lodging and per 
diem for travel to Maputo to plan and implement the Maputo 
program (Phase One).  Post will then build off of this 
program, coordinating with USDA and the Trade Hub, to deliver 
province-tailored programs through Phase Two.  In this 
regard, USDA has indicated it may be able to fund the USDA 
regional representative accompanying the Econ/Pol Officer and 
FSN during one or more provincial trips. 
 
 
¶G. Outcome/Success Criteria. 
 
This outreach project will succeed, in one respect, if it can 
demonstrate how it prompted U.S. investors in Mozambique 
renew or increase their business efforts here.  Likewise, 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.  Success will also 
be demonstrated by the GRM,s continued investment-friendly 
reforms of commercial, labor, and financial policies, as well 
as by the Mozambican investor/entrepreneur's increased 
knowledge of AGOA, increased export of product to the United 
States and increased ability to understand and navigate U.S. 
import requirements. 
 
 
¶H. Follow-Up Strategy. 
 
Post will continue regular contact with contacts in each 
province: to provide them with the most recent US trade 
policy guidance, to assess the provincial business 
environments for US businesses, and encourage greater 
investment and trade.  In addition, Post will follow-up with 
the GRM, as well as new contacts made on the provincial 
level, to support business-friendly commercial, legal and 
labor reforms/implementation. 
 
--------------------------------------------- -------------- 
Project 2:  Agricultural Seminar:  Moving Beyond Sustenance 
--------------------------------------------- -------------- 
 
¶A. Justification. 
 
Mozambique has still predominantly an agrarian economy - more 
than 75% of its 19 million people rely on agriculture to 
survive.  Commercial agriculture (as opposed to subsistence 
agriculture) is only partially developed and still offers 
enormous potential.  As Mozambique improves its business 
environment, there will be increased synergy between 
agriculture and commercial investment.  The US Department of 
Agriculture and USAID are heavily involved in encouraging the 
growth of commercial agriculture in Mozambique and Post is 
committed to supporting this effort.  Commercial agriculture 
provides the opportunity to increase Mozambican exports while 
increasing potential American investment and trade 
opportunities - from horticulture to John Deere.  In 
addition, this project will build on momentum created by the 
Development Credit Authority's (USAID-managed) partnership 
with the Commercial Bank of Mozambique (BCI) to guarantee 
agricultural loans to agribusiness. 
 
The target group for this seminar would be ex-Zimbabwean and 
local entrepreneurial farmers and/or agri-businesspeople, 
working on small to medium-size operations in Manica 
province.  This area of the country is especially fertile and 
supports a wide variety of fruit and vegetable crops.  The 
ex-Zimbabwean farmers are struggling to establish themselves 
in Mozambique, despite open support from national and local 
officials in the province, and would be very receptive to 
outside advice and support. 
Agricultural experts from USDA, USAID, and a local branch of 
 
MAPUTO 00000097  005 OF 006 
 
 
the US NGO Technoserve, as well as the Trade Hub, and will 
cover the following topics:  Financing Agribusiness 
Operations; Emerging Crop Opportunities for the Small to 
Medium Operations; Fair-Trade Exporting; How to Get 
Certified; Importing to the US - Phytosanitary Regulations 
and Beyond; Specialty Foods and Niche Marketing; and Buying 
from the U.S.- What America has to Offer the Commercial Farm 
Operation.  (Note:  If USDA and/or the Hub are able to 
participate, they will pay for their representatives, 
travel, lodging and per diem. End note.) 
 
 
¶B. Planning Milestones. 
 
Planned as a one-day seminar in the Manica provincial capital 
of Chimoio, the tentative date is currently August 21, in 
advance of the 2006-2007 agricultural season.  In addition to 
the seminar format, with the topics listed above, the project 
envisions having tables with brochures offering information 
on American agricultural-related products available for 
import by Mozambican farmer/agri-business operation. 
 
i. Late June:  Finalize and confirm program agenda and 
contact presenters; work with FAS, USDA and Trade Hub to 
arrange product information for expo-tables; work with PAO to 
create information/contact pamphlets for distribution to 
participants. 
 
ii. Early July: Draft participant invitations (for specified 
participants); draft public announcement in conjunction with 
PAO; secure forum location; contract translation services and 
confirm presenter/moderator participation. 
 
iii.  Late July:  Send out invitations and begin publicizing 
event (with RSVP request); secure U.S. product pamphlets, 
samples and other information for expo-tables; secure 
information pamphlets for distribution. 
 
iv. Early August:  Confirm number of participants, draft 
opening speech to be given by Ambassador/CDA. 
 
v. Mid-August:  Re-confirm program agenda and presenters; 
confirm forum location and translation services. 
 
vi. August 21:  Conduct Agricultural Seminar. 
 
 
¶C. Performance Metrics/Anticipated Outcomes. 
 
Post anticipates that this seminar will provide farmers and 
agro-businesspeople not only with important fundamental trade 
regulation information and greater knowledge of financial and 
technical assistance available to them from the USG in 
Mozambique, but also with the contacts to obtain more details 
and support.  In time, Post anticipates improved agricultural 
production, more exports, and more demand for US-sourced 
products. 
 
Performance Metrics: 
 
i. Agricultural Exports as a Share of GDP from Manica Province 
ii. AGOA and other U.S.-assisted Exports to the U.S. 
(agricultural products) from Manica Province 
iii. Average Rural Income Per Capita for Manica Province 
iv. Requests for Assistance in Obtaining U.S.-sourced 
products and/or for Business Development Assistance Services 
 
Note - These metrics are components of metrics also outlined 
in Post,s MPP, enabling project outcomes to be included in 
the Post,s, as well as EB,s, performance evaluation. 
 
 
¶D. Estimated Costs. 
 
The estimated cost for the Chimoio Agricultural Seminar is 
USD 4676 (4 persons, 2 days/1 night). 
 
i. Travel, Per Diem & Transportation 
 
a. USD 2300/Round-trip Airfare 
b. USD 1196/Per diem (Lodging & MI&E) 
c. USD 280/Car Rental 
 
MAPUTO 00000097  006.3 OF 006 
 
 
 
ii. Seminar Expenses 
 
a. USD 300/Interpreter 
b. USD 300/Information Pamphlets 
c. USD 300/Conference Room 
 
 
¶E. Post,s Point-of-Contact. 
 
Brooke L. Williams 
Economic/Commercial Officer 
Telephone: 258-21-492797, ext. 3422 
Email: WilliamsBL@state.gov 
 
 
¶F. Leveraging Funding. 
 
Post has not yet coordinated funding with other Bureaus or 
U.S. Agencies; however it plans to approach other agencies 
with interest in this topic to seek their participation, 
which they will then fund.  In addition, Post has discussed 
this project proposal with USAID and will create the seminar 
agenda in conjunction with USAID, USDA and the Hub. 
 
 
¶G. Outcome/Success Criteria. 
 
This seminar will prove successful if farmers, potential 
entrepreneurs and agri-business businesspeople utilize the 
financial and technical assistance resources made available 
to them.  In addition, the seminar will be successful if it 
harnesses the growing energy around agri-business in 
Mozambique, creating increased interest in agricultural 
investment and emerging areas (e.g. bio-fuels and specialty 
foods). 
 
¶H. Follow-Up Strategy. 
 
Post will work with USAID and USAID-supported NGOs to 
continue to support agri-business projects in Mozambique.  In 
addition, Post will keep the agri-business community informed 
of AGOA opportunities, as well as emerging agricultural 
products with export potential. 
Dudley