[Federal Register Volume 77, Number 103 (Tuesday, May 29, 2012)]
[Pages 31574-31577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12974]



International Trade Administration

Executive-Led Trade Mission to South Africa and Zambia

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.


Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service is organizing a Trade Mission 
to South Africa and Zambia November 26--November 30, 2012, to help U.S. 
firms find business partners and sell equipment and services in 
Johannesburg and Cape Town, South Africa, and Lusaka, Zambia.
    Targeted sectors are:

 Electric Power and Energy Efficiency Technologies, Equipment 
and Services
    [cir] Electrical generating equipment
    [cir] Renewable energy technologies
    [cir] Clean coal technology
    [cir] Transmission and distribution equipment and services
    [cir] Energy efficiency building technologies and services
 Productivity Enhancing Agricultural Technologies and Equipment
    [cir] Crop production equipment and machinery
    [cir] Irrigation equipment and technology
    [cir] Crop storage and handling
    [cir] Precision farming technologies
 Transportation Equipment and Infrastructure
    [cir] New and refurbished locomotives
    [cir] New bulk car and other dedicated rolling fleets
    [cir] Smart Signaling and operations' automation
    [cir] Business model analysis
    [cir] Strategic route design and network planning
    [cir] Port Infrastructure
 Mining Equipment and Technology
    [cir] Software
    [cir] Process automation
    [cir] Mining beneficiation
    [cir] Geo-information technologies
    [cir] Bulk materials handling technology

Although focused on the sectors above, the mission also will consider 
participation from companies in other appropriate sectors as space 
    This mission will be led by a senior Department of Commerce 
official and will include business-to-business matchmaking with local 
companies, market briefings, and meetings with key government 

Commercial Setting

    South Africa is a country of 50 million people that is rich in 
diverse cultures, people and natural heritage. Enjoying remarkable 
macroeconomic stability and a largely pro-business environment, South 
Africa is a logical and attractive choice for U.S. companies to enter 
Sub-Sahara Africa.
    South Africa is the most advanced, broad-based industry and 
productive economy in Africa and in 2011 had a gross domestic product 
(GDP) of $42 billion, growing by 3.1 percent. In 2010 South Africa 
accounted for 31 percent of Sub-Saharan Africa's GDP.

[[Page 31575]]

    South Africa is April 2011 joined Brazil, Russia, India and China 
as the only African country in the leading emerging market group, 
BRICS. This step was seen as significant endorsement by its peers of 
the country's macro-economic development since the establishment of 
democracy in 1994.
    Zambia is a politically stable, multi-party democracy, rich in 
natural resources. Zambia has a population of approximately 13 million 
with a growing middle class, particularly in urban areas. Its 
relatively open economy has averaged more than six percent real GDP 
growth over the past eight years and was ranked one of the fastest 
growing economies in the world in a recent report by The Economist 
    In 2011, total U.S.-Zambia trade was $177 million, an 83 percent 
increase over 2010 levels and a more than 200 percent increase over 
2009 levels. While relatively small in total, U.S.-Zambia trade has 
tremendous growth potential, and the Zambian government and private 
sector are keen to strengthen the commercial relationship between the 
United States and Zambia. Leading U.S. exports include machinery, 
transportation equipment, chemicals, and computers and electronic 

Best Prospects in Mission Targeted Sectors


South Africa
    Electricity supply constraints are expected to remain a feature of 
South Africa's social and economic landscape for several years to come, 
and the introduction of additional capacity will be required for at 
least the next 20 years.
Energy Efficiency Building Technologies and Products
    South Africa presents potentially lucrative opportunities for U.S. 
firms involved in Green Building Technologies (GBT). By developed-
economy standards, South Africa continues to lag far behind in its 
adoption of green building practices. However, the notion of green 
building is gathering momentum in South Africa with an array of 
projects currently in the pipeline.
    Although no formal statistics are currently recorded for green 
building products in South Africa, the current building and 
construction materials market is estimated at about $11.88 billion per 
annum, with 60 percent sold direct to end-users and 40 percent via the 
distribution/merchant network. Of this total of $11.88 billion, $2.12 
billion (18 percent) of materials would be used in the additions, 
alterations and home improvement market (including unrecorded home 
    South Africa's State-owned Industrial Development Corporation (IDC) 
plans to inject $1.68 billion into `green' industries over the next 
five years as part of a larger $14 billion disbursement plan between 
2010 and 2015. The IDC indicated that the ``green economy'' has emerged 
as a primary focus for the development finance institution (DFI), owing 
to its potential to create jobs and lower the carbon intensity of the 
South African economy.
    More than 45 percent of Sub-Saharan Africa's water resources pass 
through Zambia, creating significant untapped hydropower potential to 
meet domestic demand and for export to Eastern and Southern African 
countries. Zambia is connected to the Southern African Power Pool and 
has plans to connect to the East African Power Pool. Domestic demand 
often exceeds domestic production due to maintenance and upgrades at 
major hydropower facilities and brown outs are relatively common. In 
the past two years, ZESCO has raised electricity rates substantially to 
meet long-term cost recovery, although a planned further 20 percent 
increase in rates in early 2012 was shelved due to public opposition.
    Specific opportunities for mission members include hydro 
generation, other renewable technologies, construction and engineering 
services in generation and transmission, and smart grid technologies. 
There is also a market for small-scale power generating equipment, such 
as micro-hydro power systems, mobile generation units, solar panels and 
diesel-powered generators for household or commercial use.

Agricultural Equipment

    South Africa has by far the most modern, productive and diverse 
agricultural economy in sub-Saharan Africa. It is a net exporter of 
agricultural and food products and is self sufficient in food products. 
South Africa offers U.S. exporters of agricultural equipment and 
technology a wide range of opportunities. The country's annual 
agricultural equipment market is estimated at approximately $919 
million. Five percent of all new agriculture equipment is being 
produced locally, ninety five percent of all agriculture equipment and 
parts are being sourced from international markets, and at least twenty 
percent of new equipment and technologies are currently being sourced 
from the United States.
    Zambia has favorable climatic conditions, vast irrigation 
potential, good prospects for livestock production, and has one of the 
highest percentages of uncultivated arable land in Africa. Zambia 
exported approximately $500 million in agricultural products in 2010, 
and agriculture accounts for more than 20 percent of Zambia's GDP. The 
sector provides employment for about 60 percent of the population, the 
majority being small-scale or subsistence farmers, with about 750 large 
scale commercial farms and more than 1,000 emergent farms (up to 150 

Transportation Equipment and Infrastructure

    South Africa's government has announced and allocated initial 
funding for significant transportation infrastructure capital 
    The Passenger Rail Agency of South Africa (Prasa) of the South 
African Department of Transport (SADOT) has announced a large rail 
improvement program. The 20-year procurement process will be split into 
two, with the first ten-year contract running from 2015 and the second 
from 2025. The formal tender process started in March 2012 and 
financial closure with the successful bidder is expected in June 2013. 
The first train is to be delivered in 2015.
    The South African Government will spend R21.3bn on infrastructure 
in the port of Durban over seven years, but this excludes more than 
R100bn that could be required to dig out the old Durban International 
Airport site and expand the harbor further. The sum of R21.3bn--a 
figure that may change as projects are reviewed or added over the next 
seven years--is part of the R300bn of transport and logistics projects 
that South African President Jacob Zuma mentioned in his state of the 
nation address in February 2012.
    Zambia is landlocked and sparsely populated. As such, 
transportation is a substantial cost to doing business in the country. 
Goods move primarily by road and rail. Most copper, Zambia's primary 
export, is moved by truck. The Government has budgeted a record $890 
million to road development and maintenance in 2012.
    The government has at various times signaled its intention to 
expand Zambia's main international airports, and the United States 
Trade and Development Agency (USTDA) funded an airports master plan 
that was completed in 2011 for international airports in Lusaka, 
Livingstone, Ndola, and Mfuwe.

[[Page 31576]]

Mining Equipment and Technology

    South Africa--2,200 miles of railway line, three new ports and a 
large amount of bulk handling infrastructure at other ports are high on 
the agenda for both the South African Government and mining consortia.
    Zambia is the largest copper producer in Africa and the eighth 
largest producer in the world. Zambia has more than 6 percent of known 
copper reserves, with about 42 percent of the country still unexplored 
for minerals. The sector has seen more than $5 billion in investment in 
the sector since the mines were privatized starting in 1998 and annual 
copper production is expected to top 1 million tons by 2015. The mining 
sector accounts for 6 percent of Zambia's GDP, and copper exports 
generate about 75 percent of export earnings. The sector continues to 
be the second largest formal employer, after government.
    All mining companies are required by law to upgrade their mining 
equipment, particularly smelters, to conform Zambia's mining sector to 
international regulations and United Kingdom and U.S. environmental 
standards by 2015.
    Zambia also has cobalt, gold, uranium, nickel, manganese, coal, and 
gemstones, and produces 20 percent of the world's emeralds.

Mission Goals

    The goal of the South Africa-Zambia Trade Mission is to provide 
U.S. participants with first-hand market information, 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 South African and Zambian markets.

Mission Scenario

    The South Africa-Zambia Mission will visit Johannesburg, Cape Town 
and Lusaka, with an optional visit to Ndola in Zambia's Copper Belt, 
allowing participants to access the largest markets and business 
centers in the two countries. In each city, participants will meet with 
potential business contacts.

                       Proposed Mission Timetable
       Day of week                 Date                 Activity
Sunday...................  Nov 25.............  Arrive in Lusaka.
Monday...................  Nov. 26 Lusaka.....  Mission Meetings
                                                 Officially Start.
                                                Breakfast briefing with
                                                 U.S. Embassy Staff.
                                                One-on-one business
                                                Evening business
Tuesday..................  Nov 27 Lusaka        In Lusaka one-on-one
                            Optional flight to   business appointments
                            Ndola; (Copper       continue and for those
                            Belt); Travel to     companies with mining,
                            Johannesburg.        transport and other
                                                 meetings in the
                                                 northern Copper Belt,
                                                 morning flight to Ndola
                                                 for meetings. Evening
                                                 flights (Lusaka and
                                                 Ndola) to Johannesburg.
Wednesday................  Nov. 28              Briefing by U.S. Embassy
                            Johannesburg.        Staff.
                                                One-on-one business
                                                Evening business
Thursday.................  Nov. 29              One-on-one meetings
                            Johannesburg and     continue in
                            Travel to Cape       Johannesburg.
                                                Briefing by Cape Town
                                                 Consulate Staff.
                                                Networking reception in
                                                 Cape Town.
Friday...................  Nov 30 Cape Town...  One-on-one business
                                                 appointments continue.
                                                Mission ends.

    * Note: The final schedule and potential site visits will depend on 
the availability of local government and business officials, specific 
goals of mission participants, and air travel schedules.

Participation Requirements

    All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. 
The mission is designed for a minimum of 15 and a maximum of 20 to 
participate in the mission from the applicant pool. U.S. companies 
already doing business in the target markets as well as U.S. companies 
seeking to enter these markets for the first time are encouraged to 

Fees and Expenses

    After a company has been selected to participate on the mission, a 
participation fee to the U.S. Department of Commerce is required. The 
participation fee for one representative is $4350 for a small or 
medium-sized enterprise (SME) \1\ and $4900 for large firms. The fee 
for each additional firm representative (SME or large) is $450. 
Expenses for travel, lodging, some meals, and incidentals will be the 
responsibility of each mission participant.

    \1\ 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/contractingopportunities/owners/basics/whatismallbusiness/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.

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 U.S. 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

     Suitability of the company's products or services to the 
mission goals.
     Applicant's potential for business in South Africa and 
Zambia, including likelihood of exports resulting from the mission.
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.

[[Page 31577]]

    Diversity of company size, sector or subsector, and location may 
also be considered during the review process.
    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.

Timeframe for Recruitment and Applications

    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--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 immediately, and conclude 
October 5, 2012. The U.S. Department of Commerce will review 
applications and make selection decisions on a rolling basis beginning 
August 6, 2012, until the maximum of 20 participants is selected. 
Applications received after October 5, 2012, will be considered only if 
space and scheduling constraints permit.
    Frank Spector, U.S. Commercial Service, U.S. Department of 
Commerce, Washington, DC 20230, Tel: 202-482-2054, Fax: 202-482-9000, 
[email protected].
    Larry Farris, Senior Commercial Officer, U.S. Consulate, 
Johannesburg, South Africa, Tel: +55-11 290-3316, Fax: +55-11 884-0538, 
Email: [email protected].

Frank Spector,
Senior International Trade Specialist, Global Trade Programs.
[FR Doc. 2012-12974 Filed 5-25-12; 8:45 am]