VZCZCXRO8653
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0044/01 0161011
ZNR UUUUU ZZH
P 161011Z JAN 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC PRIORITY 3939
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2168
RUEHAR/AMEMBASSY ACCRA 2562
RUEHDS/AMEMBASSY ADDIS ABABA 2684
RUEHBY/AMEMBASSY CANBERRA 1953
RUEHDK/AMEMBASSY DAKAR 2308
RUEHKM/AMEMBASSY KAMPALA 2733
RUEHNR/AMEMBASSY NAIROBI 5161
RUEAIIA/CIA WASHDC
RUEHGV/USMISSION GENEVA 1844
RHEHAAA/NSC WASHDC
RHMFISS/JOINT STAFF WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEFDIA/DIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RUZEHAA/CDR USEUCOM INTEL VAIHINGEN GE

UNCLAS SECTION 01 OF 02 HARARE 000044 
 
SENSITIVE 
SIPDIS 
 
AF/S FOR B. WALCH 
AF/EPS FOR ANN BREITER 
NSC FOR SENIOR AFRICA DIRECTOR B. PITTMAN 
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN 
TREASURY FOR D. PETERS 
COMMERCE FOR ROBERT TELCHIN 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
 
E.O. 12958: N/A 
TAGS: ABUD AMGT BEXP ECON ETRD ZI
SUBJECT: HARARE 2009 BFIF PROJECT PROPOSAL 
 
REF: 08 STATE 128559 
 
¶1.  (U)  Embassy Harare proposes to draw on the Business 
Facilitation and Incentive Fund (BFIF) to promote corporate 
governance in Zimbabwe. 
 
-------------------------------- 
Support for Corpoate Governance 
-------------------------------- 
 
¶2.  (SBU)  Post proposes providing financial suport to the 
Institute of Directors of Zimbabwe (IDZ) to secure an 
international speaker on corporae governance at IoDZ,s 
Director of the Year Awar ceremony -- the country,s most 
prestigious annul business event.  In addition, the funding 
willsupport corporate governance workshops to be conduted 
on the following day by the guest speaker at Zimbabwe,s 
leading business organizations. 
 
¶3. (U)  IoD is a more than 100-year-old international 
organization based in the UK that promotes professionalism in 
the boardroom and an environment conducive to business 
success.  In Zimbabwe, where it has 350 members, including 
directors of state-owned enterprises, IoD,s focus is on 
corporate governance and executive training. 
 
¶4.  (U)  On April 2, 2009, IoDZ will hold its annual Director 
of the Year award ceremony, in which the Director of the Year 
will be announced in the categories of large and listed 
companies; small and medium enterprises; parastatals, NGOs 
and public sector enterprises; plus an overall winner. 
Candidates are identified and nominated by the business 
community and the winners are selected by a committee of 
eminent businessmen and women. 
 
--------------------------------------------- -------- 
The Corporate Governance/Public Governance Connection 
--------------------------------------------- -------- 
 
¶5.  (SBU)  Post continues to regard the business community as 
a critical player in supporting economic and political 
reform.  Within the business community, IoDZ plays an 
important role.  It includes numerous directors who have 
supported the ruling party since the country,s independence. 
 We saw in the past year, however, the extent to which 
business community support for the ruling party has eroded, 
when it backed a pro-business opposition candidate for 
president of Zimbabwe.  The intense pressure bearing down on 
the government is now coming from the business community as 
well as the general populace. 
 
¶6.  (SBU)  Post has sought to engage traditionally pro-ruling 
party business leaders in a series of lunches hosted by 
Ambassador McGee and at business organization roundtables 
where the Ambassador has presided as guest speaker.  In the 
past year, Post supported IoDZ,s corporate governance 
agenda.  Ambassador McGee broke ground in 2008 in making the 
connection between corporate governance and public governance 
in an address to the IoDZ.  We see the Director of the Year 
award ceremony as a vehicle for continuing to put reformist 
ideas in the public sphere.  The Director of the Year award 
ceremony and opening address receive wide coverage in the 
government and independent press.  We anticipate that the 
address will embolden public discussion about Zimbabwe's need 
 
HARARE 00000044  002 OF 002 
 
 
to start planning for the post-Mugabe era. 
 
¶7.  (SBU)  In a time of economic distress in Zimbabwe, our 
financial support to the event would allow IoDZ to attract 
and pay for a more eminent corporate governance speaker than 
the organization could otherwise afford.  Additionally, while 
political sensitivities would preclude public disclosure of 
our involvement, our support would bring us closer to IoDZ 
and the business community in general, and would place us in 
a position to exercise more influence with that sector. 
 
¶8.  (U) We are requesting US$5,000 for costs of travel and 
remuneration for a speaker for two days.  The amount could be 
less depending on where the speaker is from.  Planning 
milestones are identification of potential speakers in 
Embassy coordination with IoDZ, and securing the 
organizational support of business groups such as the 
Confederation of Zimbabwe Industries (CZI), the Bankers' 
Association of Zimbabwe, the Employers' Confederation of 
Zimbabwe (EMCOZ), and the American Business Association of 
Zimbabwe (ABAZ) in conducting follow-on workshops. 
 
¶9.  (U)  Post point of contact is econoff Frances Chisholm, 
263-4-250-595, ext. 4337, chisholmfm@state.gov. 
 
MCGEE