VZCZCXRO7880
PP RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHDR #1175/01 1941220
ZNR UUUUU ZZH
P 131220Z JUL 06
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC PRIORITY 4362
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY
RUEHDS/AMEMBASSY ADDIS ABABA PRIORITY 3026
RUEHJB/AMEMBASSY BUJUMBURA PRIORITY 2391
RUEHKM/AMEMBASSY KAMPALA PRIORITY 2796
RUEHLGB/AMEMBASSY KIGALI PRIORITY 0840
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0173

UNCLAS SECTION 01 OF 02 DAR ES SALAAM 001175 
 
SIPDIS 
 
SIPDIS 
 
DEPT EF/CBA FOR D WINSTEAD AND EB/EX 
DEPT ALSO AF/E FOR B YODER AND AF/EPS FOR T HASTINGS 
NAIROBI FCS FOR E YAGI 
 
E.O. 12958: N/A 
TAGS: BEXP ABUD AMGMT ECON EINV ETRD PREL TZ
SUBJECT: 2006 TRADE FAIR REFLECTS STRONGER U.S.-TANZANIAN 
TIES 
 
REF: DAR ES SALAAM 00114 
 
SUMMARY 
-------- 
¶1.  The 2006 Dar es Salaam International Trade Fair (DITF) 
revealed the Government of Tanzania's (GOT) efforts to 
gradually transition away from a "shopping mall" atmosphere 
toward a genuine international trade show.  While there 
remains a long road ahead before the DITF, which ran from 
June 29 through July 9, becomes either a fully functioning 
trade show or truly international, the intention to create a 
more business-oriented environment was evident.  President 
Kikwete inaugurated the annual festivity with a speech that 
emphasized commitment to cut the cost of doing business in 
Tanzania and to promote export-led economic growth.  The 
increasingly warm bilateral relations between Tanzania and 
the U.S. were "on display" with President Kikwete mentioning 
the African Growth and Opportunity Act (AGOA) several times 
during his speech and taking an in-depth tour of the U.S.A. 
pavilion, which won first prize as the best foreign 
exhibitors. END SUMMARY. 
 
From Bargain Bazaar To International Trade Show 
--------------------------------------------- ----- 
¶2.  The 30th Dar es Salaam International Trade Fair (DITF) 
was widely praised by the GOT as a successful event, 
attracting more than 400,000 visitors over a two week time 
span.  The fair, organized by the Board of External Trade 
(BET), had noticeable improvements compared with previous 
years including, an increase in the number of local and 
foreign exhibitors (over 1500 total), a higher standard of 
maintenance at the fair grounds, and reduced congestion of 
both pedestrians and vehicles inside the grounds.  By raising 
the price of admission per person and per car by 100 percent, 
BET created a more business-oriented atmosphere.  The 
Minister of Trade, Industry and Marketing (MITM), Nazir 
Karamagi, confirmed this effort, telling Econoff on July 7 
that MITM's goal is to move away from a bazaar-type 
"festival" toward a "truly international trade fair."  While 
the GOT still has work to do before the DITF could be 
considered a world-class trade show, this year's event 
indicated steps in the right direction by trying to limit the 
number of casual shoppers and attract legitimate business 
persons. 
 
U.S. Pavilion Wins First Prize 
--------------------------------- 
¶3.  The Embassy organized a U.S.A. pavilion at the 2006 DITF. 
 Only twelve other foreign exhibitors organized similar 
pavilions:  Botswana, Burundi, China, Kenya, Egypt, 
Mozambique, Nigeria, South Africa, Syria, United Arab 
Emirates, Uganda and Zimbabwe.  The U.S. pavilion showcased 
the following companies and organizations: 
 
-- U.S. Embassy Information Resource Center 
-- Foreign Commercial Service from Nairobi 
-- African Growth and Opportunity Act (AGOA) 
-- Kickstart (USAID partner) 
-- TechnoServe (USAID partner) 
-- DAI Pesa (USAID partner) 
-- Caltex 
-- Colgate-Palmolive 
-- World Initiative for Soy and Human Health (WISHH) 
-- Elite Computers - distributors of Apple computers and iPods 
-- SSTL Security Group 
-- Goodyear Tires 
-- Nufaika - distributors of Proctor and Gamble products 
-- Junior Achievement 
 
¶4.  Due to its attractive variety of displays, unified theme 
and sound layout, the U.S. pavilion won first-prize for best 
foreign exhibitor.  President Kikwete presented this award to 
Ambassador Retzer on July 4 during the official DITF 
inauguration.  The prize not only boosted the morale of the 
U.S. exhibitors, but also encouraged President Kikwete to 
tour the U.S. pavilion himself after the awards ceremony. 
Although expected to be a cursory walk-through, President 
Kikwete ended up spending more than 20 minutes in the U.S. 
pavilion, asking detailed questions of the participating 
firms about the wide range of products and projects on 
display. 
 
 
DAR ES SAL 00001175  002 OF 002 
 
 
Kikwete Urges Export-Led Growth 
------------------------------- 
¶5.  In his inauguration speech at the 2006 DITF, President 
Kikwete emphasized his commitment to making Tanzania "more 
business friendly."  He expressed his dissatisfaction with 
Tanzania's relatively poor ranking on the World Bank's "Cost 
of Doing Business" index and said the GOT was fully aware of 
the problems hindering business such as bureaucratic 
red-tape, nuisance taxes, poor infrastructure and unreliable 
power.  Urging the business community to "prod" the GOT, 
Kikwete promised to work in partnership with the private 
sector to address these lingering impediments to economic 
growth. 
 
¶6.  Promoting export-led growth was a key theme President 
Kikwete stressed in his speech, noting that in 2004, trade 
contributed about 17 percent to Tanzania's GDP.  Kikwete 
urged Tanzania's business community to use the DITF as an 
opportunity to explore creative marketing strategies and 
secure new export markets.  He emphasized the upcoming 
opportunities soon to be offered through Export Processing 
Zones (EPZ) and Special Economic Zones (SEZ).  Kikwete twice 
referred to the Africa Growth and Opportunity Act (AGOA) and 
mentioned Europe's Everything But Arms (EBA) as critical 
opportunities yet to be fully exploited by Tanzanian 
producers. 
 
U.S.-Tanzania: DITF Reflects Strengthened Ties 
--------------------------------------------- - 
¶7.  COMMENT:  The DITF encapsulated the double-sided coin 
that is Tanzania's business environment: on one side the 
trade fair exposed obvious flaws ranging from the unfortunate 
waft of smelly garbage, to unreliable power supply even in 
the main exhibit halls; on the other side were signs of great 
potential ranging from beautiful handicraft displays to 
reports from U.S. partners on the valuable brand promotion, 
contacts and orders secured through participation in the 
Fair.  The GOT made obvious efforts to upgrade the 2006 DITF, 
in-line with the Kikwete government's overall agenda to 
improve Tanzania's business climate.  President Kikwete's 
overall enthusiastic participation in the Trade Fair and keen 
interest in the U.S.A. pavilion underlined his support for 
more business friendly policies and highlighted the 
increasingly warm bilateral relationship between Tanzania and 
the United States.  As a result of his May 2006 trip to the 
U.S., Kikwete appears increasingly determined to exploit AGOA 
and to attract serious U.S. investments to Tanzania.  END 
COMMENT. 
RETZER