US embassy cable - 04MAPUTO1445

UNCLAS SECTION 01 OF 02 MAPUTO 001445 
 
SIPDIS 
SENSITIVE 
AIDAC 
STATE FOR AF/S, AF/EPS, AND EB/IFD 
USAID FOR AFR/SA 
MCC FOR APPLEGARTH, HEWKO, HARRINGTON, AND 
HERING MCC ALSO FOR BRIGGS AND GAULL 
E.O. 12958: N/A 
TAGS: EAID, EINV, MZ, MCC, OPIC 
SUBJECT: MCC CEO PAUL APPLEGARTH'S VISIT TO 
MOZAMBIQUE, 20-24 OCTOBER 2004 
 
 
Sensitive but Unclassified - Handle Accordingly. 
Not for Internet Distribution. 
 
1. (U) SUMMARY: DURING A FOUR-DAY VISIT, 
MILLENNIUM CHALLENGE CORPORATION CEO PAUL 
APPLEGARTH AND HIS TEAM MET WITH PRESIDENT 
CHISSANO, SENIOR GOVERNMENT OFFICIALS, PRIVATE 
SECTOR LEADERS, AND THE PRESS IN AN EFFORT TO 
BECOME MORE FAMILIAR WITH MOZAMBIQUE AND RAISE 
AWARENESS OF THE MILLENNIUM CHALLENGE ACCOUNT 
(MCA). THE MCC DELEGATION ALSO TRAVELED NORTH TO 
THE PROVINCES OF CABO DELGADO AND NAMPULA, THE 
GEOGRAPHIC FOCUS OF MOZAMBIQUE'S MCA PROPOSAL. 
THE VISIT WAS A SUCCESS, AND MOZAMBICANS AND POST 
LOOK FORWARD TO WORKING WITH MCC STAFF AS 
EVALUATION OF MOZAMBIQUE'S PROPOSAL CONTINUES. 
END SUMMARY. 
 
2. (U) MCC CEO PAUL APPLEGARTH TRAVELED TO 
MOZAMBIQUE OCTOBER 20-24 WITH MCC VICE PRESIDENT 
JOHN HEWKO, SENIOR ADVISOR MAUREEN HARRINGTON, AND 
PRESS OFFICER KRISTEN HERING. THE TEAM'S VISIT 
INCLUDED MEETINGS AND SITE VISITS IN AND AROUND 
MAPUTO AND AN OVERNIGHT TRIP TO THE NORTHERN 
PROVINCES OF CABO DELGADO AND NAMPULA. MCA 
TECHNICAL GROUP CHAIR IN THE MINISTRY OF PLAN AND 
FINANCE, PEDRO COUTO, AND THE GROUP'S PRIVATE 
SECTOR REPRESENTATIVE, SERGIO CHITARA, ACCOMPANIED 
THE TEAM ON THE TRIP NORTH. 
 
3. (U) THE MCA TECHNICAL GROUP HAD TASKED CHITARA, 
EXECUTIVE DIRECTOR OF THE CTA - THE CONFEDERATION 
OF MOZAMBICAN BUSINESS ASSOCIATIONS, WHICH IS THE 
PREEMINENT BUSINESS GROUP IN MOZAMBIQUE - WITH 
PRIMARY DRAFTING RESPONSIBILITIES FOR MOZAMBIQUE'S 
MCA PROPOSAL. MOZAMBIQUE SUBMITTED ITS PROPOSAL 
O/A 23 SEPTEMBER. THE PROGRAM DETAILED IN THE 
DOCUMENT IS FOCUSED ON INFRASTRUCTURE, 
AGRICULTURE/AGRIBUSINESS, AND TOURISM IN THE 
NORTH, PRIMARILY IN THE PROVINCES OF CABO DELGADO, 
NIASSA, AND NAMPULA WITH A SECTION OF NORTHERN 
ZAMBEZIA. 
 
4. (SBU) THE MCC DELEGATION'S VISIT COINCIDED WITH 
THE FIRST WEEK OF THE CAMPAIGN PERIOD FOR WHAT 
PROMISE TO BE HISTORIC NATIONAL ELECTIONS. 
PRESIDENT CHISSANO'S AGREEMENT TO MEET WITH THE 
DELEGATION DURING THIS TIME REFLECTS THE 
IMPORTANCE THE MOZAMBICAN GOVERNMENT PLACES ON THE 
MCA AND HIS PERSONAL SUPPORT FOR ITS PRINCIPLES. 
BECAUSE MOST SENIOR MEMBERS OF THE GRM WERE IN THE 
PROVINCES CAMPAIGNING, THE ONLY OTHER MEETINGS 
WITH GOVERNMENT LEADERS WERE WITH MINISTER OF 
TOURISM SUMBANA AND GOVERNOR JOSE PACHECO OF CABO 
DELGADO PROVINCE. 
 
5. (SBU) IN THE MEETING, PRESIDENT CHISSANO 
EXPRESSED HIS STRONG SUPPORT FOR THE MCA AND 
SHOWED HIMSELF TO BE WELL-BRIEFED ON THE SUBJECT. 
CEO APPLEGARTH COMPLIMENTED CHISSANO FOR 
IMPLEMENTING THE POLICIES THAT HAD ENABLED 
MOZAMBIQUE TO QUALIFY. CHISSANO SAID HE BELIEVED 
STRONGLY IN THE IDEAS BEHIND THE MCA AND INTENDED 
TO CONTINUE HELPING MOZAMBIQUE MAKE PROGRESS IN 
EACH OF THE MILLENNIUM DEVELOPMENT GOALS AFTER 
LEAVING OFFICE IN A FEW MONTHS. CEO APPLEGARTH 
CONFIRMED THAT MOZAMBIQUE'S NATIONAL ELECTIONS (1- 
2 DECEMBER) WOULD PLAY A ROLE IN MCC CONSIDERATION 
OF MOZAMBIQUE FOR FY05 ELIGIBILITY AND FUNDING, 
NOTING THAT MOZAMBIQUE NEEDED TO DEMONSTRATE FULLY 
TO ALL THAT THE ELECTIONS WERE TRANSPARENT. 
(COMMENT: THIS WAS A REFERENCE TO THE ONGOING 
DISPUTE BETWEEN THE EU AND THE NATIONAL ELECTIONS 
COMMISSION OVER ELECTION OBSERVER ACCESS TO 
PROVINCIAL AND NATIONAL-LEVEL VOTE COUNTING. END 
COMMENT.) 
 
6. (U) THE MEETING WITH PRESIDENT CHISSANO WAS 
ONLY ONE OF THE HIGHLIGHTS OF THE VISIT. OTHERS 
INCLUDED: 
-- MINISTER OF TOURISM FERNANDO SUMBANA. THE 
MINISTER MET WITH THE TEAM PRIOR TO THEIR 
DEPARTURE FOR THE NORTH. HE DESCRIBED 
MOZAMBIQUE'S TOURISM STRATEGY AND EXPRESSED HIS 
PLEASURE THAT MOZAMBIQUE'S MCA PROPOSAL INCLUDED 
THE TOURISM SECTOR AND RELATED INFRASTRUCTURE 
PROJECTS. HE ALSO ATTENDED A DINNER IN CEO 
APPLEGARTH'S HONOR HOSTED BY THE AMBASSADOR. 
-- PRIVATE SECTOR. THE TEAM DISCUSSED THE 
POTENTIAL FOR AND CONSTRAINTS TO POVERTY-REDUCING 
ECONOMIC GROWTH IN MOZAMBIQUE WITH INDIVIDUALS 
REPRESENTING THE PRIVATE SECTOR IN A VARIETY OF 
SETTINGS: A MEETING IN MAPUTO WITH MEMBERS OF 
CTA'S INFORMAL "STEERING COMMITTEE" FOR THE 
PROPOSAL; THE DINNER HOSTED BY AMBASSADOR LA LIME; 
A LUNCH IN MAPUTO; A DINNER IN PEMBA THAT INCLUDED 
THE GOVERNOR OF CABO DELGADO; AND LUNCH ON ILHA DE 
MOZAMBIQUE. PARTICIPANTS FOR THESE EVENTS 
INCLUDED MEMBERS OF CTA'S LEADERSHIP AND 
REPRESENTATIVES FROM BUSINESS SECTORS SUCH AS 
AGRICULTURE/AGRIBUSINESS, TOURISM (INCLUDING GAME 
RESERVES), AQUACULTURE, BANKING, LAW, AND PRIVATE 
CONSULTING. 
-- DONORS. DURING A DONOR BREAKFAST, CEO 
APPLEGARTH NOTED THE MCC'S WILLINGNESS TO WORK 
WITH OTHER DONORS, INCLUDING POSSIBLY CO-FUNDING 
OTHER DONOR PROGRAMS. 
-- SITE VISITS. ALL OF THE SITE VISITS WERE TIED 
IN SOME WAY TO MOZAMBIQUE'S PROPOSAL AND OFFERED 
THE TEAM INSIGHT INTO THE PROPOSED PROGRAM'S 
OPPORTUNITIES AND CONSTRAINTS. WHILE IN THE 
NORTH, THE TEAM VISITED TWO OF MOZAMBIQUE'S 
POSSIBLE TOURISM DESTINATIONS, IBO ISLAND AND ILHA 
DE MOZAMBIQUE. ALSO ON THE AGENDA WAS A TOUR OF 
NACALA PORT AND AIRPORT - THE PORT IS PROPOSED AS 
THE SITE OF AN EXPORT PROCESSING ZONE, AND THE 
AIRPORT IS ONE OF SEVERAL AIRSTRIPS SLATED FOR 
UPGRADES - AND A VISIT TO THE MIRANDA CASHEW 
PROCESSING PLANT. WHILE IN MAPUTO, THE TEAM 
TOURED MAPUTO PORT, AND HEWKO AND HARRINGTON 
VISITED CITRUM, A CITRUS FARM THAT, LIKE MIRANDA, 
IS EXPORTING TO EUROPEAN AND OTHER MARKETS. 
-- PRESS EVENTS. POST ARRANGED A NUMBER OF PRESS 
EVENTS DURING THE VISIT. A PHOTOGRAPHER FROM THE 
PORTUGUESE-LANGUAGE ECONOMIC MONTHLY "TEMPO" 
ACCOMPANIED THE TEAM ON THE TRIP NORTH. ON THE 
EVENING OF 21 OCTOBER, THE INDEPENDENT TELEVISION 
CHANNEL STV AIRED NINETEEN MINUTES OF A ONE-ON-ONE 
INTERVIEW WITH CEO APPLEGARTH DURING ITS WEEKLY 
BUSINESS ROUNDUP "ECONOMIC PERSPECTIVES." THE 
CONTENT INCLUDED AN EXPLANATION OF THE MCC, THE 
PURPOSE OF THE VISIT, AND ELIGIBILITY AND FUNDING 
CRITERIA. THE PROGRAM HAS A LARGE LEAD-IN 
AUDIENCE AND TARGETS THE PRIVATE SECTOR AND MIDDLE 
CLASS. CEO APPLEGARTH HELD A BREAKFAST WITH 
SEVERAL JOURNALISTS ON OCTOBER 24 AND LATER GAVE A 
FOLLOW-UP INTERVIEW TO STV. STATE TELEVISION 
(TVM) INCLUDED COVERAGE OF THE TEAM'S VISIT TO 
NAMPULA PROVINCE, AIRING A BRIEF INTERVIEW DURING 
THE TOUR OF THE MIRANDA CASHEW PLANT. 
-- POST Q AND A. A STAFF BRIEFING FOR THE TEAM 
EVOLVED INTO A QUESTION AND ANSWER SESSION THAT 
WAS CONTINUED LATER ON THE FIRST DAY OF THE VISIT 
AT CEO APPLEGARTH'S REQUEST. THIS ADDED GREATLY 
TO POST'S UNDERSTANDING OF MCC ISSUES. 
 
7. (U) COMMENT: CEO APPLEGARTH SUCCEEDED IN 
INCREASING MCC FAMILIARIZATION WITH MOZAMBIQUE, 
BROADENING MOZAMBICANS' UNDERSTANDING OF THE MCA 
AND MCC, AND RAISING PUBLIC AWARENESS OF THE 
COUNTRY'S PROPOSAL. MOZAMBICANS AND POST LOOK 
FORWARD TO WORKING WITH MCC STAFF AS EVALUATION OF 
MOZAMBIQUE'S PROPOSAL CONTINUES. END COMMENT. 
LA LIME