VZCZCXYZ0001
PP RUEHWEB

DE RUEHDR #1430/01 2350918
ZNR UUUUU ZZH
P 230918Z AUG 06
FM AMEMBASSY DAR ES SALAAM
TO RUEHNR/AMEMBASSY NAIROBI PRIORITY 0223
RUEHC/SECSTATE WASHDC PRIORITY 4629

UNCLAS DAR ES SALAAM 001430 
 
SIPDIS 
 
SIPDIS 
 
DEPT EB/CBA FOR D WINSTEAD; AF/EPS FOR T HASTINGS; 
AF/E FOR B YODER 
NAIROBI FCS FOR E YAGI 
 
E.O. 12958: N/A 
TAGS: AFIN BEXP BTIO ECON EINV ETRD ADPM TZ
SUBJECT: TANZANIA'S FY06 BFIF PROGRAMS 
 
REF: STATE 127166 
 
¶1. (U) SUMMARY. FY 2006 funds from the Business Facilitation 
Incentive Fund (BFIF) enabled Post's participation in the 
30th Dar es Salaam International Trade Fair (DITF) and the 
International Franchise Expo (IFE) both held in June 2006. 
By exhibiting with the first-prize winning USA pavilion at 
the DITF, U.S. affiliated companies and non-profit 
organizations achieved valuable brand promotion, received 
orders and made important business contacts.  One company has 
reported over USD 2 million in sales of U.S. equipment linked 
to its exhibit at DITF 2006.  Participation in the IFE also 
proved highly successful, with one Tanzanian entrepreneur 
finalizing a franchise agreement and paying initial fees for 
two additional franchises.  BFIF allocated a total of USD 
14,075 for both activities: USD 10,500 for DITF and USD 3,575 
for IFE.  Of the total BFIF funds allocated, post's 
expenditures amounted to USD 12,873.51; a balance of USD 
1,201.49 remains in fund cite. END SUMMARY. 
 
USA Pavilion at Saba Saba 
-------------------------- 
¶2. (U)  BFIF allocated USD 10,500 for post's participation in 
the 30th Dar es Salaam International Trade Fair (DITF), known 
locally as "Saba Saba."  Total costs amounted to USD 
approximately USD 9,493.  The following budget outlines the 
costs associated with post's coordination of the USA 
pavilion: 
 
Item         Cost (USD) 
--------------------------------------------- 
Booth Space        5,875.00 
FCS Travel and per diem        1,999.13 
Pavilion Decorations/Cleaning       690.71 
Welcome Banner             278.62 
Catalogue            383.73 
Transport Admission Badge              239.23 
Generator petrol/padlock                   27.03 
--------------------------------------------- 
TOTAL:                9,493.45 
 
¶3. (U) The following participants exhibited within the USA 
pavilion from June 29 to July 9, 2006: 
 
-- TechnoServe (USAID partner) 
-- DAI Pesa (USAID partner) 
-- Kickstart (USAID partner 
-- Caltex 
-- Colgate-Palmolive 
-- World Initiative for Soy in Human Health 
-- SSTL Security Group 
-- Goodyear Tyres 
-- Elite Computers (distributing Apple computers and ipods) 
-- Nufaika (sole distributors of Proctor and Gamble products 
such as Pringles) 
-- U.S. Foreign Commercial Service, Nairobi 
 
¶4. (U) For our partners, the U.S. affiliated companies and 
organizations listed above, exhibiting at the DITF provided 
an invaluable opportunity for brand promotion at a two-week 
event attracting more than 300,000 visitors. 
Colgate-Palmolive, for example, distributed over 10,000 
brochures on "dental tips" to educate the Tanzanian public 
about oral hygiene and Caltex used the opportunity to 
introduce new lubricant products to the market place.  SSTL 
Security Group, which sells U.S. security equipment from GE, 
Astrophysics and Honeywell, has reported USD 2 million in 
sales stemming from its DITF participation.  The U.S. Embassy 
won first prize for "best foreign exhibitor" and, most 
importantly, the USA pavilion provided an excellent 
opportunity for outreach and education on key Embassy 
services and USG programs including, the African Growth and 
Opportunity Act (AGOA), Foreign Commercial Services (FCS) 
from Gold Key to International Partner Searches, and Public 
Diplomacy's "Information Resource Center" for educational 
advising. 
 
Thirteen Entrepreneurs to International Franchise Expo 
--------------------------------------------- --------- 
¶5. (U) BFIF set aside USD 3,575 for post's coordination of a 
Tanzanian business delegation to the 2006 International 
Franchise Expo (IFE).  Total costs amounted to USD 3,380. 
The following budget outlines the travel and per diem costs 
for one locally employed staff, Frederick Maeda, to escort 
the delegation of 13 Tanzanian entrepreneurs to the IFE: 
 
Item     Cost (USD) 
---------------------------------------- 
Airfare for F Maeda        1,402.06 
Travel Voucher for F Maeda    1,978.00 
---------------------------------------- 
TOTAL:         3,380.00 
 
¶6. (U) In spring 2006, post recruited 13 Tanzanian private 
sector participants for the 2006 IFE, which took place from 
June 2-4 at the Washington D.C. Convention Center.  The 
Embassy's Commercial Assistant, Frederick Maeda, escorted the 
group of participants more than half of whom had never 
traveled to the U.S. before. The delegation represented a 
cross section of Tanzania's small and medium sized 
entrepreneurs (SME) in line with the 2006 IFE's theme of 
franchising as a tool for SMEs. The following Tanzanian 
entrepreneurs attended the 2006 IFE: 
 
-- Rosemary Kitilya, CEO of H&R Consultants 
-- Dr. Jabu Mwasha, Managing Director of Tan Veterina 
-- Amedeus Chaky, Managing Director of Ametech Tanzanian 
Trading Company 
-- Charles Singili, CEO of Azania Bancorp 
-- Joseph Kusaga, CEO of Clouds FM Radio Station 
-- Ally Madikah, CEO of Atma Electronics and Software 
-- Constantine Mnzeru, Atma Electronics 
-- Kulwa Mapigano, Operations Manager of Planatel 
-- Malik Alani, CEO of Topic64 Computer 
-- Lukonge0M`cnvr+2RK`qjQDaeG.QYp)vgja""QtGdQQQQ veral positive results including: 
 
-- One franchise agreement finalized (Total: USD 250,000) 
Amadeus Chacky finalized a franchise agreement for 
Sign-A-Rama, which he had initiated in 2004.  Chacky 
transferred USD 250,000 for the needed equipment to begin 
operations in Tanzania. 
 
-- Two new franchise agreements signed (Total: USD 60,000) 
Amedeus Chacky bought two more U.S. franchises, EmbroidMe and 
Billboard Connection, which are sister companies to 
Sign-A-Rama.  Chacky paid USD 60,000 as initial fees for a 
Master Franchise Agreement for East and Central Africa. 
 
-- Mutual Non-Disclosure Agreement signed: Ally Madikah of 
Atma Electronics has entered into a Mutual Non-Disclosure 
Agreement and negotiations regarding potential partnership 
with Business COM, an internet franchise involving service 
equipment and bandwidth provision. 
 
-- Potential ventures on horizon:  Ally Madikah is also now 
working with Tiffany Marble Molds International, which is 
based in California, to explore possibilities of establishing 
a marble project in Tanzania.  Dr. Jabu Mwasha of Tan 
Veterina reported that he is currently working to acquire 
FACES, a cosmetic franchise business with more than 50 stores 
worldwide and Joseph Kusanga of Clouds FM is in discussions 
with Black Entertainment Television (BET) for acquisition of 
television broadcasting equipment. 
 
Comment: BFIF Effective Tool for Private Sector Outreach 
--------------------------------------------- ----------- 
¶8. (U) Tangible results from 2006 BFIF-funded activities 
include the sale of more than USD 2 million in U.S. security 
equipment and three additional U.S. franchises: Sign-A-Rama, 
EmbroidMe, and Billboard Connection.  Through their feedback, 
however, participants in both the DITF and IFE, have 
emphasized intangible, yet equally important, results such as 
brand promotion, public outreach, exposure to new business 
models and new business contacts.  Post appreciates BFIF 
support and believes funding crucial to advance private 
sector strengthening efforts in Tanzania's transitioning 
economy. END COMMENT. 
RETZER