VZCZCXYZ0002
RR RUEHWEB

DE RUEHTO #0093/01 0220524
ZNR UUUUU ZZH
R 220524Z JAN 07
FM AMEMBASSY MAPUTO
TO SECSTATE WASHDC 6725

UNCLAS MAPUTO 000093 
 
SIPDIS 
 
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 
MILLENNIUM CHALLENGE CORPORATION 
DEPT OF COMMERCE WASHDC 
 
SIPDIS 
 
EB/CBA FOR DWINSTEAD 
AF/S FOR HTREGER 
PRETORIA FOR FAS: RBICKFORD 
JOHANNESBURG FOR FCS: PWARD 
JOHANNESBURG FOR TDA: DSHUSTER 
 
E.O. 12958: N/A 
TAGS: BEXP BTIO ECON ETRD EAID EINV ABUD MZ
SUBJECT: Embassy Maputo's FY07 BFIF Proposal 
 
REF: 06 State 189849 
 
¶1. Post requests funding in the amount of USD 25726 under 
the Business Facilitation Incentive Fund (BFIF) for FY07. 
 
¶2. Embassy Maputo proposes the following project for FY07. 
We are requesting funding for only one project as we 
consider Commercial Outreach essential to increasing trade 
between the US and Mozambique. 
 
--------------------------------------------- -------------- 
Project 1: Commercial Outreach, USG Trade Agency Promotion 
and US Export Market Development 
--------------------------------------------- -------------- 
 
¶A.  Justification. 
 
Commercial outreach, including conveying information about 
increased trade potential under AGOA, OPIC and Ex-Im 
financing possibilities and trade show opportunities, is 
critical to strong US participation in Mozambique's economic 
growth, as well as increased exports to Mozambique. 
Mozambique's large size (twice as big as California and 
twice as long) and restrictive transport infrastructure 
means that commercial outreach activities in the capital 
city, Maputo - which is located in the far southern corner 
of the country and has less than 10 percent of the country's 
population - reach only a very limited audience.  For would- 
be US exporters and investors to fully benefit from Post's 
commercial outreach, it is essential that available programs 
and information be disseminated throughout the country.  For 
this reason, Post believes that one of the most critical 
roles of the Commercial Section is to conduct commercial 
outreach throughout the country. 
 
Commercial outreach beyond Maputo City continues to be a 
vital tool to increasing trade between the U.S. and 
Mozambique.  Outreach this year also will be timely, with 
the Millennium Challenge Corporation (MCC) in the final 
stages of negotiating a compact that is likely to provide 
opportunities for US companies to enter into Mozambique. 
This compact focuses on the northernmost provinces, where 
other exciting synergies are occurring.  In Cabo Delgado, 
exploration for oil and gas by American company Anadarko 
will soon begin.  USAID has an ongoing project in the north 
to develop the tourism industry. (Note: USAID's program 
encompasses Cabo Delgado, Niassa and Nampula provinces. End 
Note)  Tete continues to be the focus of interest as a giant 
Brazilian consortium, in conjunction with a U.S. investor, 
moves forward with development of rich coal deposits in the 
area.  Ancillary business and export opportunities are 
likely to follow all of these activities.  The goal of 
Post's Commercial Section is to ensure that information and 
opportunities are widely disseminated and relationships with 
valuable contacts deepened. 
 
 
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 exports; and to promote 
rural income growth.  This outreach program will build off 
of the BFIF-supported Commercial Outreach conducted in 
summer and fall 2005 and supports the Hub's, USDA's and 
USAID's continuing program activities. 
 
 
¶B. Planning Milestones. 
 
Post will build off of the Commercial Outreach programs 
conducted with our BFIF FY06 grant, expanding the program to 
reach even more potential investors/purchasers. 
 
Commercial Outreach Content: 
 
The cornerstone of the Commercial Outreach project involves 
roundtable meetings with local politicians, businesspeople, 
entrepreneurs, academics, farmers and commercial 
associations to discuss all of the following: 
 
            -- Business Concerns 
            -- Trade Facilitation Issues 
            -- Success Stories 
 
            -- AGOA, OPIC, ExIm Bank, USDA, FSC and USTDA 
               programs and opportunities 
            -- American products and services relevant to 
                     the region/specific businesses 
 
Along with meeting with the Mozambican community, it is 
important that the Commercial Outreach include meetings with 
U.S. businesses located in the provinces to discuss 
investment concerns and opportunities and, time permitting, 
site visits. 
 
Travel: 
 
      April 2007: Niassa/Cabo Delgado Provinces 
      May 2007:   Nampula/Zambezia/Sofala Provinces 
      June 2007:  Inhambane/Gaza Provinces 
      July 2007:  Manica/Tete Provinces 
      August 2007:Maputo Province (no flight travel 
      necessary) 
 
¶C. Estimated Costs. 
 
The estimated cost for the Commercial Outreach program is 
USD 25726. 
 
      i.   Tete/Nampula/Cabo Delgado Provinces 
                  Total Cost: USD 8848 
                        USD 2660 - Airfare 
                        USD 4188 - Lodging/Per diem 
                        USD 1500 - Transportation 
                        USD 500 -  Conference Room 
 
      ii.  Niassa/Zambezia Provinces 
            Total Cost: USD 6996 
                        USD 2200 - Airfare 
                        USD 3196 - Lodging/Per diem 
                        USD 1200 - Transportation 
                        USD 400 - Conference Room 
 
      iii. Inhambane/Gaza Provinces 
            Total Cost: USD 4836 
                        USD 1140 - Airfare 
                        USD 2396 - Lodging/Per diem 
                        USD 900 -  Transportation 
                        USD 400 -  Conference Room 
 
      iv.   Manica/Sofala Provinces 
            Total Cost: USD 5046 
                        USD 1350 - Airfare 
                        USD 2396 - Lodging/Per diem: 
                        USD 900 -  Transportation: 
                   USD 400 -  Conference Room: 
 
 
¶D. Point of Contacts (USDH and FSN). 
      Brooke L. Williams 
      Economic/Commercial Officer 
      Telephone:   258-21-492797 ext. 3422 
      Email:             WilliamsBL@state.gov 
 
      Elizabeth Filipe 
      Economic/Commercial Assistant 
      Telephone:   258-21-492797 ext.4459 
      Email:             FilipeEC@state.gov 
 
¶E. Leveraging Funding. 
 
Post reviewed possibilities for leveraging funding from 
other agencies.  Post has discussed the possibility of other 
agencies joining the Economic/Commercial Officer on 
Commercial Outreach trips (USDA/FAS and the Trade Hub) in 
order to create synergies between agencies and increase 
impact.  Both agencies have indicated their willingness to 
fund regional representatives during one or more provincial 
trips.  Post also plans on working with USAID when setting 
travel dates to build off of existing USAID travel plans. 
 
¶F. Outcome/Success Criteria. 
 
A successful outcome will see increased interest on the part 
of Mozambican companies, farmers, entrepreneurs and 
businesspeople to buy American and greater utilization of US 
agency products and expertise to help facilitate purchase 
transactions.  In addition, 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 regarding potential markets and opportunities. 
Likewise, Post expects this Commercial Outreach to increase 
the Mozambican investors' and entrepreneur's knowledge of 
AGOA, OPIC and ExIm Bank, increase export of product to the 
United States and increased ability to understand and 
navigate U.S. import requirements.  Ultimately, a successful 
outcome will be reflected in increased trade and investment. 
To assess effectiveness of the Commercial Outreach program, 
Post has identified three main indicators to monitor 
success: 1) U.S. Exports to Mozambique, 2) Mozambican 
Exports to the U.S., and 3) Share of Foreign Direct 
Investment in the Mozambican Economy. 
 
¶G. Follow-Up Strategy. 
 
Post will continue regular outreach with contacts in each 
province, providing them with US trade policy guidance, 
information on trade show opportunities.  These contacts 
will also allows Post to remain informed regarding potential 
investment and export opportunities for U.S. companies and 
to provide current assessments of provincial and national 
business environment.  In addition, Post will continue 
ongoing contact with the GRM, as well as will new contacts 
made on the provincial level, to support business-friendly 
commercial, legal and labor reforms and implementation. 
 
 
Dudley