[Federal Register Volume 72, Number 189 (Monday, October 1, 2007)]
[Notices]
[Pages 55747-55750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4835]


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DEPARTMENT OF COMMERCE

International Trade Administration


Trade Mission Statement: Sub-Saharan Africa Trade Mission to 
Ghana, Nigeria, and South Africa; March 3-11, 2008

Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service is organizing a Trade Mission 
to Sub-Saharan Africa March 3-11, 2008, to help U.S. firms find 
business partners and sell equipment and services in Accra, Ghana; 
Lagos, Nigeria; and Johannesburg, South Africa. Targeted

[[Page 55748]]

sectors include, but are not limited to, energy, health care, 
information technology, safety and security, and telecommunications. 
The Director General for the U.S. Commercial Service will lead the 
mission, which will include business-to-business matchmaking with local 
companies, marketing briefings, and meetings with key government 
officials.

Commercial Setting

    U.S. Total trade with Sub-Saharan Africa increased 10 percent in 
the first half of 2007 from the same period in 2006, as both exports 
and imports grew. U.S. exports increased by 30 percent to 46.7 billion, 
driven mainly by increases in parts for oil field equipment, vehicles 
and parts, aircraft, wheat, platforms for offshore oil drilling, non-
crude oil, and medical equipment. Of the top five African destinations 
for U.S. products, exports to South Africa rose by 8 percent and to 
Nigeria by 42 percent. As the markets in Sub-Saharan Africa continue to 
show substantial growth and potential--encompassing a burgeoning 
consumer base of 650 million people--Ghana, Nigeria, and South Africa 
stand out as particularly advantageous destinations for U.S. exporters 
seeking to leverage business opportunities in this exciting region.

Market Overview

Ghana

    A strong multiparty democracy, Ghana has long served as a model for 
other African nations due to its free and fair elections and rule of 
law. Accordingly, Ghana offers not only an increasingly sophisticated 
market of 22 million consumers but also a solid platform from which to 
access west Africa's regional market of 250 million potential 
customers. Ghana has qualified for Millennium Challenge Account funds, 
available only to countries that have adopted good governance policies. 
In 2006 Ghana ranked among the top 10 reforming countries in the world. 
Its per capita output is among the highest in West Africa, and its 
steady economic growth over the past four years--6.2 percent in 2006--
is expected to continue, driven by industry and services.
    Ghana is in the midst of an energy crisis, controlling an estimated 
600-megawatt (MW) demand deficit through load shedding. With upcoming 
completion of the West African Gas Pipeline, which will provide 
relatively inexpensive gas for industrial usage, the government plans 
to increase generating capacity to 2600MW, primarily through gas-fired 
plants financed by independent power producers. Plans to restructure 
the electricity sector include the eventual privatization of Tema plant 
operations and allowing more private-sector thermal generation. The 
government is to spend $470 million in the next three years to improve 
energy generation and has signed purchase agreements with three U.S. 
suppliers for high-speed diesel generators totaling 90MW. The Volta 
River Authority, Ghana's power-generating agency, has procured a 126MW 
plant soon to go on line. Various power generation projects under 
review include a 300MW thermal power plant in Tema and expansion of an 
existing plant in Takoradi to 110MW. In addition, a Chinese-funded dam 
project aims to add an additional 400MW generating capacity within the 
next five years.
    Ghana's health care delivery system, among the best in the region, 
is constantly challenged to meet the needs of its growing population. 
Lacking the relevant manufacturing base, the country relies almost 
exclusively on imported medical devices. Equipment for diagnostics, 
intensive care, and surgery; ambulances and related equipment; and 
disposable supplies are in high demand.
    The United States is the major supplier to Ghana's $28 million 
import market for computers and accessories, providing desktop personal 
computers, floppy diskettes, printers, and monitors. A growing number 
of firms serve the Ghanaian hardware and software markets. Local 
assembly is growing, while improved local servicing capacity, coupled 
with growth of offshoot activities such as shareware, software design, 
computer graphics, and systems consulting, drives demand for 
information technology. The government has removed the Value Added Tax 
on imported computers supplied to recognized educational institutions.
    In 2007, Ghana hosted the U.S.-Sub-Saharan Africa trade and 
Economic Cooperation Forum, which focused on optimizing the benefits of 
the African Growth and Opportunity act (AGOA). Growing recognition of 
Ghana as an advantageous venue for diplomatic, educational, and 
commercial activities suggests potential for opportunities in safety 
and security sectors.
    The government's liberalization of its telecommunications sector 
spurred significant annual growth in recent years. There are 2 land 
providers, 4 cellular companies, 10 paging service providers, 128 
Internet service providers, 106 VSAT data operators, and 61 public/
corporate data operators. FM stations number 128, and TV stations 24. 
Imports of telecommunications products are mainly for landline 
projects, private mobile telephone services, and broadband data 
transfer services. There has been a tremendous increase in the 
subscriber base of mobile operators as they attempted to out compete 
each other.
    The rapid increase in the market size of the telecommunications 
sector has resulted in a high volume of imports of telecommunications 
equipment, including switching and transmission equipment, telephone, 
and fax machines, radio and television equipment, and cellular 
radiotelephones. One mobile provider, Kasapa, upgraded from analogue 
equipment to digital CDMA, and Ghana Telecom installed a pre-paid 
platform for its landline service. Areeba, the leading mobile phone 
service provider, extended its service to rural areas. Countrywide, as 
landline density remains very low (2.9 lines per hundred people) 
cellular companies with prepaid cards have had made major gains in 
market share. While mobile penetration into rural areas has recently 
increased tremendously, the areas still remain largely under served by 
both landline and cellular companies. The national network operators 
have programs underway to meet the performance targets under their 
licenses. Ghana Telecom has been expanding to meet a 400,000-telephone 
line requirement.

Nigeria

    Nigeria, the most populous country in Sub-Saharan Africa at over 
120 million people, continues to push forward economic reforms, while 
its $121 billion GDP is growing at around 10 percent. Pending 
development of its agricultural and non-oil industrial capacities, the 
country continues to depend heavily on imports. Last year Nigeria 
received a ``BB-'' rating from two international credit rating 
organizations, Fitch-Ratings and Standard & Poor, which acknowledged 
the stability of the Nigerian currency and the government's commitment 
to economic and social reforms. Nigeria holds tremendous potential for 
U.S. businesses willing to conduct due diligence and draw on Commercial 
Service assistance in screening prospective partners and customers.
    One of the world's top ten oil producers, Nigeria holds oil 
reserves of about 36.24 billion barrels and gas reserves estimated at 
187 trillion standard cubic feet. The life expectancy of Nigeria's 
crude oil reserve is 35 years, and that of its gas reserves is more 
than 109 years. Natural gas, increasingly seen

[[Page 55749]]

as an enormous income-generating resource, is now being captured for 
processing and sale both regionally and abroad. Nigeria's oil and gas 
sector accounts for over 90 percent of the country's foreign exchange 
earnings, and U.S. equipment and technology account for at least 80 
percent of imports in this sector. With increased movement of oil and 
gas activity into Nigeria's deep offshore areas, American companies are 
expected to maintain a dominant market share of imports of high-end 
oilfield machinery.
    Like Ghana, Nigeria imports most of its medical equipment. Recent 
health care reforms have included introducing national health 
insurance, transforming eight teaching hospitals into centers of 
excellence for tertiary health care, and rehabilitating nearly 300 
primary health centers. Plans to establish more HIV/AIDS testing and 
treatment centers, and to combat AIDS generally, will cost the Nigerian 
government an estimated $63 million. Nigeria's health care sector holds 
significant opportunities for professional training, given the dearth 
of expertise in many specialized fields and a near absence of cutting-
edge technology.
    Factors spurring interest in high technology include the 
government's plans for an information and communications technology 
park and the emerging success of the ``Computers for All Nigerians 
Initiative (CANi)'' program, for which Microsoft and Intel are 
supplying operating systems and processors respectively.
    Nigeria's safety and security market offers potential in a wide 
range of sectors, with rising demand for products and services to 
protect its burgeoning financial and information technology sectors. 
Best prospects also include technologies for airport security; 
personal, residential, and industrial protection; and crime fighting.
    Nigeria is one of the world's most profitable telecommunications 
markets, with monthly revenue from services averaging $615.4 million. 
Leading cellular mobile operators such as MTN Nigeria are said to 
generate as much as $138.5 million every month. Nigeria's emergence 
into the consumer market era is driving demand for improved 
telecommunications and information technology. The country's commercial 
centers are awash with ATMs as banks compete for customers, offering 
mobile banking and service delivery around the clock.

South Africa

    South Africa's market size of 47 million people, well-developed 
infrastructure, productive economy, and pro-business environment make 
it a logical choice for many U.S. companies seeking to conduct business 
on the African continent. The country's GDP reached $587.5 billion last 
year, marking 5-percent growth. South Africa boasts a sophisticated 
financial sector with a stock exchange (Johannesburg Stock Exchange) 
that ranks among the top exchanges in the world. Thanks to the 
commodity-driven export boom and surging retail demand, a medium-term 
growth rate of 6 percent is attainable. Preparations for the 2010 FIFA 
World Cup, scheduled to take place in South Africa, are expected to 
increase demand for U.S. goods and services in a country that already 
ranks as one of the most popular destinations for U.S. exports on the 
African continent.
    South Africa's rapid economic growth in recent years has resulted 
in demand for electricity rising faster than anticipated, creating the 
need for new power stations, pebble bed modular reactors, transmission 
and distribution equipment, systems control equipment, network 
upgrades, and refurbishment of turbines. Eskom, the state power 
company, estimates that up to $16 billion will be spent on new 
transmission and power generation infrastructure in the next five 
years. Eskom is investigating technological advances in the use of 
coal, its current fuel supply, and the use of alternative fuel sources 
(particularly gas and hydropower).
    Although most of South Africa's medical equipment imports come from 
Europe, the United States leads in the supply of sophisticated high-
tech medical equipment. U.S. companies are encouraged to consider a 
presence in the South African medical market. A number of large U.S. 
firms are already represented there, a situation that holds joint-
venture potential for smaller and medium-sized U.S. companies offering 
specialized technologies that can be incorporated into existing 
operations. Rising crime rates in South Africa have created a market of 
opportunity for providers of safety and security equipment and 
services. Upgrading security has been identified as a top priority by 
businesses and homeowners, who are increasingly looking for external 
expertise and new digital technologies. Surveillance equipment, 
particularly CCTV, is the largest sector of South Africa's security 
market, which is valued between $85 million and $165 million.
    South Africa's $12 billion telecommunications equipment market 
relies heavily on imports, more than 50 percent of which come from the 
United States. As South Africa prepares to host the 2010 FIFA World 
Cup, industry sources predict a growth rate in telecommunication 
equipment of over 20 percent, beginning in 2007, particularly in the 
area of Second Generation Network Solutions products and equipment.

Mission Goal

    The goal of the Sub-Saharan Trade Mission is to provide U.S. 
participants with first-hand market information, access to government 
decision makers, and one-on-one meetings with business contacts, 
including potential agents, distributors and partners, so they can 
position themselves to enter or expand their presence in the African 
market.

Mission Scenario

    The Sub-Saharan Trade Mission will include three stops: Accra, 
Ghana; Lagos, Nigeria; and Johannesburg, South Africa. In each city, 
participants will meet with new business contacts. Additional business 
meetings can be arranged in Johannesburg or Cape Town through the Gold 
Key Service for an additional cost of $400 per city. This fee is 
exclusive of interpreter and transportation costs, estimated at $200.

Proposed Timetable

Accra

    Monday, March 3, 2008: Market briefing. Meetings with government 
and industry officials, Reception.
    Tuesday, March 4, 2008: One-on-one business appointments.
    Wednesday, March 5, 2008: Morning departure to Lagos.

Lagos

    Wednesday, March 5, 2008: Reception, Market briefing.
    Thursday, March 6, 2008: Meetings with government and industry 
officials, One-on-one business appointments.
    Friday, March 7, 2008: One-on-one business appointments.
    Weekend departure to Johannesburg.

Johannesburg

    Sunday, March 10, 2008: Reception at the Ronald H. Brown Commercial 
Center.
    Monday, March 10, 2008: Market briefing, Meetings with government 
and industry officials, One-on-one business appointments.
    Tuesday, March 11, 2008: One-on-one business appointments.
    Mission concludes Tuesday evening. Participants may return to 
United States or remain in South Africa for additional appointments 
arranged separately under the Gold Key Service.

[[Page 55750]]

Criteria for Participants' Selection

     Relevance of a company's business line to mission goals.
     Timeliness of the company's signed application and 
participation agreement (including the participation fees).
     Minimum of 8 and a maximum of 15 participating companies 
on the mission.
     Potential for business in Sub-Saharan Africa for the 
company.
     Provision of adequate information on the company's 
products and/or services, and the company's primary market objectives, 
in order to facilitate appropriate matching with potential business 
partners.
     Certification that the company meets Departmental 
guidelines for participation. Generally, a company's products or 
services should be either produced in the United States, or, if not, 
marketed under the name of a U.S. firm and have at least 51 percent 
U.S. content of the value of the finished product or service.
    The participation fee is $3,950 per firm, which includes one 
representative. The fee for each additional firm representative is 
$750. Mission recruitment will be conducted in an open and public 
manner, including publication in the Federal Register, posting on the 
Commerce Department trade mission calendar--http://www.ita.doc.gov/doctm/tmcal.html--and other Internet Web sites, press releases to 
general and trade media, direct mail, broadcast fax, notices by 
industry trade associations and other multiplier groups, and publicity 
at industry meetings, symposia, conferences, and trade shows. 
Recruitment for the mission will begin October 1, 2007, and conclude 
December 10, 2007. Applications will be vetted on a rolling basis. 
Applications received after December 10, 2007, will be considered only 
if space and scheduling constraints permit. Any partisan political 
activities (including political contributions) of an applicant are 
entirely irrelevant to the selection process.

Contacts

    Jessica M. Arnold, International Trade Specialist, Global Trade 
Programs, U.S. Commercial Service, Washington, DC 20230, Tel: 202-482-2026/[email protected].
    Diane Jones, Senior Commercial Officer, U.S. Commercial Services, 
Accra, Ghana, Tel: 221-823-4296/Fax: 221-822-1371, 
[email protected].
    Larry Farris, Senior Commercial Officer, U.S. Commercial Service, 
Lagos, Nigeria, Tel.: 234-1-261-0050/Fax: 234-1-261-9856, 
[email protected].
    Craig Allen, Senior Commercial Officer, U.S. Commercial Service, 
Johannesburg, South Africa, Tel.: 27-11-778-4800 Fax: 27-11-268-6100, 
[email protected].

Nancy Hesser,
Manager, Commercial Service Trade Missions Program.
[FR Doc. 07-4835 Filed 9-28-07; 8:45 am]
BILLING CODE 3510-25-M