[Federal Register Volume 74, Number 192 (Tuesday, October 6, 2009)]
[Notices]
[Pages 51257-51261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24036]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration


 Mission Statement; 2010 Executive-Led Trade Mission to Senegal 
and South Africa; March 7-12, 2010

AGENCY: Department of Commerce.

ACTION: Notice.

-----------------------------------------------------------------------

I. Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service is organizing a 
Trade Mission to Dakar, Senegal and Johannesburg, South Africa, March 
7-12, 2010. Both of these cities serve as major gateways to other 
country markets on the African continent, Senegal being the main portal 
for French-speaking West Africa, and South Africa as the starting point 
for doing business in southern Africa. This mission will be

[[Page 51258]]

comprised of U.S. firms from a cross section of industries with market 
potential, including, but not limited to, products, services, and 
technologies in the following sectors: Electric power systems, 
automotive spare parts, construction and mining equipment, and 
agribusiness. Businesses with clean technologies in those and other 
sectors are also encouraged to apply.
    The goal of the mission will be to help U.S. companies launch or 
increase their export business in the Senegalese and South African 
markets. Participating firms will gain market information, make 
business and government contacts, solidify exporting strategies, and 
advance specific projects, towards the outcome of increasing U.S. 
exports. The mission, to be led by an executive level U.S. Department 
of Commerce official, will include business-to-business matchmaking 
appointments with local companies, networking events, and meetings and 
briefings with government and industry officials. The mission 
delegation will be comprised of U.S. firms that design, manufacture, 
supply, and/or integrate products, services, and technologies in the 
target industries.

II. Commercial Setting

Senegal

    Senegal is a secular republic with a strong presidency, bi-cameral 
legislature, multiple political parties, and historically peaceful 
transfers of power. Senegal plays a significant role in regional and 
international affairs, and President Wade has made excellent relations 
with the United States a high priority. His administration has advanced 
a liberal economic agenda, including privatizations and other market-
opening measures. To support ever growing international trade, Senegal 
has well-developed port facilities, an international airport that 
serves as a regional hub for more than 28 airlines, and a serviceable 
telecommunications infrastructure, including a fiber optics backbone 
and cellular phone penetration approaching 15% of the population.
    The Senegalese are generally well disposed towards Americans, and 
actively seek U.S. trade and investment. The country's geographic 
location and its market forces present U.S. companies with significant 
business opportunities. As of 2008, U.S. foreign direct investment 
stock in Senegal totaled $18 million. Total bilateral trade in 2008 
reached $155 million, with the United States exporting $137 million in 
goods and services and importing $18.7 million in goods and services 
from Senegal. A driving force for the growth of this international 
trade is Senegal's expanding group of higher-income consumers of 
upscale consumer-ready products. Robust population growth (at 2.6 
percent annually) and urbanization stand to bolster such consumer 
patterns in the long term. The African Development Bank (AfDB) and the 
World Bank are actively financing public infrastructure projects in 
Senegal. The AfDB is currently putting a great emphasis on private 
sector financing; the International Finance Corporation, the private 
sector-lending arm of the World Bank, has recently financed major 
infrastructure projects in Senegal. The West African Development Bank 
and the Islamic Development Bank are also very active lenders in 
Senegal. The U.S. Trade and Development Agency (USTDA) has financed 
several studies in Senegal in recent years. In carrying out its 
mission, USTDA emphasizes economic sectors that are most likely to 
benefit from U.S. exports of goods and services. Additionally, the U.S. 
Government's Millennium Challenge Corporation (MCC), created to provide 
financial aid to qualifying countries towards the goal of sustainable 
development, recently signed a $540 million compact grant with Senegal. 
The grant and soon-to-be announced public tenders will be directed to 
national road rehabilitation, irrigation, and water resources 
management projects. The MCC proposed Irrigation and Water Resources 
Management Project, comprising infrastructure investments in the 
Senegal River Delta and Podor areas, is designed to improve the 
productivity of the agricultural sector by extending and improving the 
quality of the irrigation system in certain agriculture-dependent areas 
of northern Senegal. It also seeks to provide additional supply of 
water for human and animal use there.
    In the power sector, projects for rural electrification, the 
rehabilitation and replacement of antiquated plants, and the 
construction of improved transmission and distribution lines will lead 
to opportunities for U.S. companies. Senegal's growing reliance on 
crude oil as a power source is of concern to the country because of its 
cost and price volatility. The search for cheaper alternatives such as 
coal should lead to the pursuit of more attractive energy resources, 
and more opportunities for U.S. companies. While coal is a less 
expensive option, Senegal is also exploring possibilities to become a 
major biofuel supplier, as well as pursuing other alternative energy 
schemes, including wind turbine installations and small-scale, 
decentralized photovoltaic panel systems. Hydroelectricity is also 
being considered as an alternative to diesel power for Senegal. The 
Gambia River Basin Development Organization is embarking on a project 
to construct two hydroelectric power plants along with an 
interconnection of the power grids to confront persistent power 
shortage problems and the heavy dependence on imported petroleum 
products for the production of electricity.
    Good prospects for U.S. automotive spare parts suppliers stem from 
the need to support the increasing number of U.S.-origin cars, second-
hand vehicles, automotive accessories, and car servicing franchises in 
Senegal. The market for imported automobiles, spare parts, and 
accessories has climbed to $10.4 million during the period of January-
July 2009, an increase of 28% from the $8.1 million in automotive 
imports during that same period in 2008.
    In the construction sector, the Millennium Challenge Corporation 
compact grant creates opportunities for U.S. companies to participate 
in the Roads Rehabilitation Project (RN2/RN6). The Roads Rehabilitation 
Project seeks to expand access to markets and services and reduce 
transportation time and costs by improving the condition of certain 
strategic roads. The Government of Senegal has prioritized these roads 
in its Road Sector Master Plan, and their rehabilitation is in line 
with the national policy of increasing growth through road creation, 
renovation, and maintenance. The RN2 serves as the primary road to 
transport and export products from irrigation areas along the Senegal 
River, thereby complementing the Compact's Irrigation and Water 
Resources Management Project. The RN2 is also a strategic road, 
connecting Dakar harbor to Mauritania and Mali, and to southern cities 
in Senegal. The RN6 is the only road available to transport local 
agricultural products from Casamance to the rest of Senegal. Strategic 
as well, it connects Senegal with Guinea Bissau, Guinea-Conakry, and 
Mali. The improvement of both roads is expected to stimulate domestic 
and trans-border traffic and commerce.
    Senegal's planned Arcelor Mittal (Faleme) iron ore project is 
expected to provide the best prospects for U.S. companies working in 
the mining sector. The implementation of this anticipated effort, 
awaiting the stabilization of the economy, should yield opportunities 
in mining operations, rail rehabilitation and construction, port 
development, and

[[Page 51259]]

engineering and project management. Sales opportunities should also 
develop for materials handling equipment such as trucks, loaders and 
dozers. A recent study commissioned by the U.S. Trade and Development 
Agency estimated U.S. export potential for this project, including 
services and equipment at $170 million.
    Globally rising food and commodity costs, supplier shortages, and 
the devaluation of the dollar have increased Africa's interest in U.S. 
farm equipment, agribusiness technologies, products, and services. 
Local entrepreneurs recognize that these products and services are 
needed to support Senegal's modernization of the agricultural 
production and processing sectors to meet an increasing share of its 
domestic food needs. Given the high percentage of Senegal's population 
engaged in agriculture and agricultural processing, coupled with 
renewed focus on investment and development of the sector, 
opportunities exist for U.S. companies to supply the full range of farm 
inputs, new and used agricultural farm equipment, tractors and trucks, 
irrigation equipment, as well as food processing, transportation and 
food storage equipment and facilities.

South Africa

    Enjoying macroeconomic stability and a pro-business environment, 
South Africa is a logical and attractive choice for U.S. companies to 
enter southern Africa. The mature nature of the South African economy--
the most advanced, broad-based, and productive in Sub-Saharan Africa--
can be seen in its wide variety of economic sectors and national retail 
consumption patterns, which range from basic needs (e.g., condensed 
milk) to high-end durable consumer goods (e.g., SUV's). The growth of 
the country's consumer base and its efforts to upgrade and develop its 
infrastructure to match and further fuel its economic growth translates 
into opportunities for U.S. exporters and investors in South Africa. 
U.S. exports there have shown a steady growth over a period of years, 
rising to 18 percent in 2008, with a an estimated 25 percent decrease 
in the first half of 2009 due to the world economic crisis. However, 
the South African Rand is strengthening against the dollar, which will 
make dollar-denominated products more affordable for South Africans in 
the near term leading to an upturn in U.S. exports.
    Other factors benefiting U.S. exporters include a sophisticated and 
well-capitalized banking sector, the country's position as the gateway 
to southern Africa, ongoing growth in market share for U.S. branded 
goods, and over $50 billion in formalized planned infrastructure 
expenditures by government-owned utilities and public-private 
partnerships over the next five years. In addition, the awarding to 
South Africa of the 2010 FIFA World Cup Soccer championship has 
resulted in an estimated $2 billion in projects. These projects involve 
tenders for supply-chain products and services, potentially for bid by 
interested U.S. companies. The mandate of the country's five 
development finance institutions, and the commitment of the U.S. Trade 
and Development Agency and the Agency for International Development to 
accelerate sustainable socio-economic development in the region by 
funding physical, social and economic infrastructure in South Africa, 
will also contribute to opportunities for U.S. companies there.
    In the power sector, up to $47 billion is expected to be spent on 
new infrastructure for generation, transmission and distribution 
projects over the next five years. South Africa is going ahead with one 
of the most technologically advanced capital investment projects, the 
$2.27-billion Pebble Bed Modular Reactor program, identified as the 
first commercial-scale high-temperature reactor in the world. If this 
project proves successful, another 10 plants could be built. 
Independent power producers are also going to work with South Africa's 
Eskom to increase the new power capacity now required for South Africa. 
Additional power stations and major power lines are being built on a 
massive scale to meet rising electricity demand. U.S. companies are 
encouraged to leverage the need for supplies in conjunction with the 
upcoming restructuring of the electricity distribution industry into 
six regional electricity distributors. In addition to nuclear power, an 
alternative receiving much support from the South African Government, 
the power-generating infrastructure mix likely to respond to this 
increased demand includes wind and solar thermal energy, two of the 
most accessible and growing sectors in the country. There is also 
considerable potential for non-grid renewable power applications, which 
can be used to ensure access to power in remote rural areas.
    In the automotive sector, the large number of model derivatives 
imported by South Africa has widespread implications for the 
aftermarket, representing opportunities for U.S. companies. There is 
also a lack of telematic components, essential for inflating airbags, 
facilitation of security and control of tracking devices, and for 
control of engine/transmission functions. Predictions of significant 
growth in the proportion of new cars featuring automotive telematics, 
and the current unavailability of this technology in South Africa pose 
yet another export opportunity for U.S. exporters.
    There has been a rapid growth in demand for automotive specialty 
equipment and accessories in South Africa. This growth can be 
attributed to the higher disposable income within specific segments of 
the South African population. Since 2001 the activity of accessorizing 
and improving performance of vehicles has been transformed from a hobby 
to a fully-fledged culture of fierce competition. In the race to 
individualize and distinguish their vehicles, enthusiasts constantly 
seek innovative, authentic specialty components with little regard to 
price. In this lucrative aftermarket sector, South Africans often 
follow trends set in the United States and are highly receptive to U.S. 
brands.
    Looking at the construction sector, 489 national roads and related 
projects will be in the pipeline over the medium term. Based on 
projections of future demand for housing construction in South Africa, 
625,324 more 40-square-meter housing units will be needed annually 
between 2010 and 2016 to eliminate existing housing backlogs. The most 
significant capital equipment requirements for South Africa will be for 
tractor loader-backhoes and excavators; the need for 20-ton trucks also 
is projected to increase 3.7 times in 2010.
    The notion of green building is gathering momentum in South Africa, 
with an array of projects currently in the pipeline due partially to 
increases in resource prices. These price increases are turning green 
building into an increasingly feasible option because of issues of 
longevity, efficiency, and the reduction of operation costs in the long 
run. In addition, with South Africa struggling with a power crisis and 
local authorities experiencing hardships pertaining to issues of water, 
sewerage and solid waste disposal, the government and the private 
sector are becoming increasingly conscious of the need for environment-
friendly building practices. While the South African government 
recognizes the need for energy efficient buildings and building 
practices, it is the private sector that is set to lead this 
revolution. Green building technologies and practices from developed 
countries such as the United States are sought after in achieving South 
Africa's objective of creating a green and sustainable building 
culture.

[[Page 51260]]

    The mining industry has traditionally been responsible for 
significant infrastructure development in South Africa. For example, 
2,200 miles of railway line, three new ports, and a large amount of 
bulk handling infrastructure at existing ports are high on the agenda 
for both the South African government and the mining consortia. 
Increasing the efficiency of materials handling systems is also 
critical to exporters of ores and minerals. Significant infrastructure 
investments are planned for the Saldanha Bay iron and steel ore bulk 
export hub. Some other planned projects are the creation of a dedicated 
rail line for the export of manganese from the Northern Cape to the 
Coega Port, the building of a chorine plant, as well as an aluminum/
steel smelter; a planned 65-mile slurry pipeline to the Majuba coal 
station, as well as a bulk coal handling system from the Waterberg 
coalfields for the Groot Geluk power station, and enhanced bulk 
material handling systems for coal at the port of Richards Bay.
    The agribusiness sector in South Africa has many opportunities for 
U.S. exporters. The short-term market for agricultural machinery is 
very good. Farmers appear to be optimistic about current agricultural 
conditions, clearly evidenced by the latest tractor, combine, and baler 
sales statistics. Sporadic rains and prevalent dry weather conditions 
are still concerns and present excellent opportunities for no-till 
planting equipment. Domestic companies and local farmers have also 
indicated a strong interest in soil sampling equipment. With the 
continued downscaling of the large-scale workforce, excellent 
opportunities are being presented for high-end navigational tractors 
and precision farming equipment. Most of the precision agriculture 
equipment, such as planters and combine harvesters, is primarily 
imported from the United States, and smaller implements are purchased 
locally. Known U.S. brands like McCormick, John Deere, and New Holland 
are well entrenched in this market. The regional expansion of markets 
throughout southern Africa presents additional opportunities for U.S. 
businesses.

III. Mission Goals

    The goal of this trade mission is to facilitate greater access to 
the Senegalese and South African markets by providing participants with 
first-hand market information, access to government decision makers, 
and one-on-one appointments with business contacts, including potential 
agents, distributors, and partners. The mission program is anticipated 
to include meetings in Dakar with regionally posted U.S. economic 
officers and trade specialists to enhance the prospect of regional 
opportunities.

IV. Mission Scenario

    The trade mission will include two stops: Dakar, Senegal; and 
Johannesburg, South Africa. In each city, participants will meet with 
new business/government contacts. Additional business meetings in other 
African countries can be arranged before or after the mission through 
the Gold Key Service for an added cost of $700 per city (exclusive of 
interpreter and transportation costs).

V. Mission Timetable

Dakar

    Sunday, March 7, 2010: Evening market briefing; No-host dinner with 
location TBD.
    Monday, March 8, 2010: U.S. trade mission participant briefings/
meetings with Senegalese and regional government and industry 
officials; One-on-one business appointments; Networking reception.
    Tuesday, March 9, 2010: U.S. Embassy briefings and meetings; One-
on-one business appointments; No-host dinner with location TBD.
    Wednesday, March 10, 2010: Morning departure to Johannesburg.

Johannesburg

    Wednesday, March 10, 2010: Market briefing.
    Thursday, March 11, 2010: Meetings with government and industry 
officials; One-on-one business appointments; Evening networking 
reception.
    Friday, March 12, 2010: One-on-one business appointments.
    Mission concludes Friday afternoon. Participants may return to 
United States or continue on for additional appointments arranged 
separately under the Gold Key Service.

VI. Participation Requirements

    All parties interested in participating in the Executive-led Trade 
Mission to Senegal and South Africa must complete and submit an 
application package for consideration by the Department of Commerce. 
All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. A 
minimum of 5 and maximum of 15 companies will be selected to 
participate in the mission from the applicant pool. U.S. companies 
already doing business with Senegal and South Africa as well as U.S. 
companies seeking to enter these markets for the first time may apply.

Fees and Expenses

    After a company has been selected to participate in the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The participation fee for an individual company 
representative will be $5,200 for large firms and $3,500 for small or 
medium-sized enterprises (SMEs).\*\ The fee for each additional firm 
representative (large firm or SME) is $650. Expenses for travel, 
lodging, most meals, and incidentals will be the responsibility of each 
mission participant. The option to participate in the mission is also 
being offered to U.S.-based firms with an established presence in 
Senegal and/or South Africa, or neighboring countries; the same fee 
structure applies for these firms.
---------------------------------------------------------------------------

    \*\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
---------------------------------------------------------------------------

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the Department of Commerce 
receives an incomplete application, the Department may reject the 
application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are 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.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of the company's products or services to the 
Senegalese and South African markets.
     Applicant's potential for business in Senegal and South 
Africa, including likelihood of exports resulting from the mission.

[[Page 51261]]

     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.
     Past or current export activity or ability to initiate and 
sustain immediate export activities.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

VII. Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner. 
Outreach will include 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. The International Trade Administration 
will explore and welcome outreach assistance from other interested 
organizations, including other U.S. Government agencies.
    Recruitment for the mission will begin immediately and conclude 
January 15, 2010. Applications will be available online on the mission 
Web site at http://www.export.gov/2010Africamission. They can also be 
obtained by contacting the Mission Contacts listed below. Applications 
received after January 15, 2010, will be considered only if space and 
scheduling constraints permit.

VIII. Contacts

Karen Dubin, Senior International Trade Specialist, U.S. Commercial 
Service/Washington, DC, Tel: 202-482-3786; Fax: 202-482-7801, e-mail: 
[email protected].
Steven Morrison, Senior Commercial Officer, U.S. Commercial Service/
Dakar, Tel: 221-33-823-4296, x3202, Fax: 221-33-822-1371, e-mail: 
[email protected].
John Howell, Commercial Officer, U.S. Commercial Service/Johannesburg, 
Tel: 27-11-290-3062/Fax: 27-11-884-0253, e-mail: 
[email protected].

     Dated: October 1, 2009.
Karen A. Dubin,
Senior International Trade Specialist, U.S. Department of Commerce, 
International Trade Administration, Global Trade Programs, Washington, 
DC.
[FR Doc. E9-24036 Filed 10-5-09; 8:45 am]
BILLING CODE 3510-DS-P