US embassy cable - 05DARESSALAAM116

UNCLAS SECTION 01 OF 03 DAR ES SALAAM 000116 
 
SIPDIS 
 
STATE FOR EB DENNIS WINSTEAD 
COMMERCE FOR ROBERT TELCHIN 
NAIROBI FOR FCS, FAS 
 
E.O. 12958:N/A 
TAGS: BEXP, BTIO, EINV, ETRD, TZ 
SUBJECT: TANZANIA FY05 BUSINESS PROMOTION PROPOSAL 
 
REF: 04 SECSTATE 248715 
 
1. Summary: Post requests Business Facilitation Incentive 
Fund (BFIF) funding to support two projects: a Food 
Processing Fair and/or Catalog Show in May 2005 and a Trade 
USA Booth at the Dar es Salaam International Trade Fair in 
June/July 2005.  Post thanks EB for its continued support 
through the BFIF program. 
 
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Traveling Catalog Show 
---------------------- 
 
2. Proposal One: To fund a two-day catalog show and trade 
event hosted by the US Embassy to highlight U.S. companies 
providing equipment and technologies in agro- and food- 
processing.  The event would also highlight opportunities 
for Tanzanian companies to export processed goods to the 
U.S. under AGOA.  The event may include U.S. company 
participation, expert speakers on topics related to food 
processing, marketing, and U.S. import regulations.  In 
order to attract participants from the U.S., post would like 
to co-ordinate with other eastern Africa posts (including 
those listed as info addressees) to organize a series of 
similar events in each capital.  Detailed planning for the 
event remains to be done in coordination with FCS Nairobi 
and other partner posts.  Post will remain in contact with 
BFIF as planning develops. 
 
3. Justification: Economic prosperity and security is one of 
the mission's top MPP goals.  Agro-processing has been 
recognized as an important potential growth industry for 
Tanzania.  Currently, Tanzania produces significant amount 
of agricultural goods, but exports most goods without 
processing.  A number of new investment projects in the 
industry have been proposed recently, including processing 
of coffee, cashewnuts, cotton, and fruit juice.  The 
developing agro- and food-processing industry in Tanzania is 
a potential market for U.S. products and services.  As 
Tanzania faces increasing competition in the textile 
industry in 2005, post supports developing other AGOA 
industries. 
 
4. Planning Milestones: Post plans to work with FCS Nairobi 
and its other partner posts to organize a traveling catalog 
show.  Planning milestones will include: 
 
-- Developing list of U.S. companies to provide catalogs 
and/or to attend the show, 
-- Inviting speakers or participants through USAID programs 
and/or Public Diplomacy speakers programs, 
-- Setting dates, in coordination with other posts, probably 
for May or June, 
-- Reserving conference space, 
-- Advertising the event. 
 
5. Anticipated Outcomes: The goal of this event is to lead 
to direct sales of U.S. equipment and technologies.  In 
addition, the event will highlight the opportunities under 
AGOA, inform industry businesspeople about potential 
American products, and demonstrate the U.S. mission's 
commitment to assisting Tanzanians in economic development. 
 
6. Estimated Costs: 
 
   Total Costs: USD 2,550 
   Conference room rental: USD 1,200 
   Computer and internet: USD 250 
   Mailing costs: USD 800 
   Advertising: USD 300 
 
Costs are still very general estimates, dependent on the 
level of participation.  Post anticipates using other 
sources of funding, including USAID and Public Diplomacy 
programs and private businesses, to fund travel of visiting 
speakers and company representatives. 
 
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International Trade Fair 
------------------------ 
 
7.  Proposal Two: To fund a "Trade USA" booth at the Dar es 
Salaam International Trade Fair, June 30 - July 10, 2005. 
The booth will be jointly organized by the U.S. Embassy, FCS 
and FAS in Nairobi, USAID contractors and U.S. business 
representatives.  The booth will provide Tanzanian 
businesses opportunities to access information about trading 
with the U.S. under AGOA, discuss trade leads, and learn 
about and order U.S. products. 
 
8.  Justification: The Dar es Salaam International Trade 
Fair (DITF) is one of the prime trade events in East Africa. 
Held annually, the DITF is an ideal platform for companies 
to showcase their products.  Over the years, the DITF has 
attracted more than 1000 companies to attend the fair, 
including many foreign companies.  The fair is sponsored by 
Tanzania's Board of External Trade and therefore has strong 
backing from the Government of Tanzania. 
 
Since Tanzania qualified for benefits under AGOA in 2000, 
there has been a dramatic increase in interest in trading 
with the United States.  Although Tanzania has been slow to 
take full advantage of AGOA, exports under AGOA have 
increased dramatically in the last year.  However, total 
U.S. exports to Tanzania remain stagnant.  The greatest 
barrier to Tanzanians trading with the U.S. remains the lack 
of information and contacts with U.S businesses.  U.S. 
presence at Tanzania's largest trade fair offers U.S. 
companies an opportunity to explore the Tanzanian market, 
and provides Tanzanian businesses an opportunity to gain 
information about trading with the U.S. 
 
Economic growth and development is one of post's priority 
performance goals in its Mission Performance Plan (MPP). 
Increasing Tanzania trade between the U.S. and Tanzania is 
an important aspect of that goal, particularly in 
agricultural products and agro-machinery.  With support from 
the Regional Foreign Agricultural Service (FAS Nairobi) and 
USAID agricultural programs, the trade booth will focus in 
large part on agricultural trade. 
 
9.  Planning Milestones: Post plans to work with GOT 
partners (particularly the Board of External Trade), other 
U.S. agency partners (including USAID, USDA, and Commerce), 
and U.S. businesses to organize a large booth (or a few 
adjacent booths) that will give a single face to the U.S. 
presence at the trade fair.  Planning milestones will 
include: 
 
--Coordinating space requirements with the various U.S. 
participants 
--Reserving space at the DITF through the Board of External 
Trade 
--Preparing relevant information/literature/presentations 
for the booth 
--Organizing multi-agency staffing of booth during fair 
--Setting up the booth in late June 
 
10.  Anticipated Outcomes: Last year, the USA booth received 
positive attention from the press and from GOT officials and 
won second prize among foreign government-sponsored booths. 
A steady stream of VIP visitors dropped by the Trade USA 
booth, including the Minister of Trade.  All expressed 
strong support for increased U.S./Tanzanian trade.  Post 
hopes to recruit even more U.S. companies to participate in 
the fair this year, highlighting U.S. products for sale. 
Participation in the trade fair is an important opportunity 
to disseminate additional market information, build 
U.S./Tanzanian trade linkages, strengthen contacts in 
government and private sector, and influence attitudes about 
U.S. goods and the U.S. market.  In addition, post 
anticipates that the event will serve as a good way to 
strengthen the coordination between FCS, FAS, USAID and 
State commercial efforts.  Ultimately, post expects the USA 
booth to be a keystone to USG efforts to increase bilateral 
trade with Tanzania. 
 
11.  Estimated Costs: 
Total Cost: $7280 
Booth Rental: $4705 ($130/sq meter for 36 square meters plus 
$25 garbage disposal fee) 
Literature, Materials, and Computer Hookup: $575 
Decorations: $900 
Travel to Dar es Salaam for FCS Nairobi representative: 
$1100 
 
Post anticipates additional funding for the booth, or 
adjacent booths, will come from U.S. business participants. 
 
12.  Point of Contact at Post: 
Jefferson Smith 
Political-Economic Officer 
Tel: (255) 22-266-8001 
Fax: (255) 22-266-8296 
E-mail: SmithJD@state.gov 
 
OWEN