VZCZCXRO9516
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHLU #0757 2040740
ZNR UUUUU ZZH
R 230740Z JUL 07
FM AMEMBASSY LUANDA
TO RUEHC/SECSTATE WASHDC 4183
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHTN/AMCONSUL CAPE TOWN 0334
RUEHJO/AMCONSUL JOHANNESBURG 0470
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS LUANDA 000757 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
JOHANNESBURG AND CAPETOWN FOR FCS 
 
E.O. 12958: N/A 
TAGS: BEXP ETRD ECON AO
SUBJECT: CAE:  GOOD FOR ANGOLA AND FOR AMERICAN BUSINESSES 
 
¶1. (U) Summary.  The Angolan Center for Business Support 
(CAE), founded to help bridge the gap between Angolan small 
and medium sized enterprises and the oil industry, now 
includes support for American businesses entering the Angolan 
market.  To Angolan SMEs it provides the full range of 
business development, capacity building and matchmaking 
services and instills in them norms of international 
transparency and business ethics.  For US businesses, CAE can 
provide valuable information on business trends, 
opportunities for networking, and (soon) due diligence 
checks.  End Summary. 
 
Background: Center for Business Support (CAE) 
--------------------------------------------- 
¶2. (U) According to Angolan law, the oil industry has a 
twenty percent local content requirement.  Sonangol, BP, 
Chevron, Esso and Total hired the US-based Citizens 
Development Corps (CDC) to evaluate the oil sector's needs 
against the capacities of Angolan small and medium sized 
enterprises (SMEs).  The study found two major gaps: supply 
and capacity.  As a result, CDC formed the Center for 
Business Support (CAE) (www.caeangola.com) to strengthen 
capacity through the  Supplier Initiative Program. 
 
¶3. (U) CAE employs twelve people, including 3 Americans.  Its 
main goal is to build the capacity of Angolan businesses to 
participate more actively and with greater success in the oil 
and gas industry.  As of June 31, 2007, 29 contracts valued 
at more than $2.75M had been awarded to CAE clients; more 
than 75 new employees were hired by these clients; more than 
375 companies have utilized CAE services; fourteen clients 
participated in foreign trade missions and more than 800 
clients have participated in CAE training events.  Company 
products and services range from those directly related to 
the petroleum industry to general service providers such as 
caterers and cleaners.  In the near future, CAE intends to 
offer due diligence checks on Angolan companies on a fee 
basis to US or other companies. 
 
Capacity Building and Matchmaking 
--------------------------------- 
¶4. (U) CAE's primary mission is to assist Angolan SMEs but it 
can also help American businesses new to the Angolan market. 
CAE offers the following to US businesses: introductions to 
the oil companies, business trend reports, and links to a 
number of CAE-certified potential Angolan partners.  The 
matches are beneficial to both sides - American companies 
looking to evaluate and/or start businesses in Angola can see 
proven models and American businesses can share know-how and 
contacts with local certified SMEs. 
 
¶5. (U) CAE also offers training on health, safety, security, 
and environment (HSSE), bids and contracts, ethics, financial 
management, supply chain management, human resources, 
marketing and communications, business plans, and quality 
management systems in five locations  (Luanda, Benguela, 
Soyo, Zaire, and Cabinda).  Consultants work individually 
with local client companies to improve their managerial 
efficiency, the quality of service delivery, and perform due 
diligence.  Recognizing that access to financing is one of 
the biggest challenges facing Angolan SMEs, CAE researched 
and produced a booklet listing the financing services 
available in Angola through local banks.  In conjunction with 
the launch of its financing book, it sponsored a financing 
fair for representatives from the local banks and the 
companies registered with CAE - one of the first in Angola. 
 
A Bumpy Road to Success 
------------------------ 
¶6. (SBU) CAE has helped fill the void in Angola of providing 
practical - and often basic - business advice to SMEs.  In 
has conducted due diligence checks on its client companies, 
collecting confidential business information in a country 
which guards information closely.  More importantly, it has 
succeeded in impressing acceptable operational and ethical 
standards upon a new generation of entrepreneurs.  Although 
the oil companies helped create and fund CAE to develop SME 
capacity and create a base of independent companies to 
satisfy their local content requirements, they are still not 
able to source directly from many of CAE's beneficiaries as 
these companies do not yet have the capacity or money to 
purchase and store the quantities of goods necessary to meet 
the demands of large multinationals.    Though still 
relatively small, CAE has evolved into a valuable resource 
for both Angolan and new-to-market US SMEs. 
FERNANDEZ