[Federal Register Volume 77, Number 103 (Tuesday, May 29, 2012)]
[Notices]
[Pages 31574-31577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12974]
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DEPARTMENT OF COMMERCE
International Trade Administration
Executive-Led Trade Mission to South Africa and Zambia
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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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
permits.
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
officials.
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
magazine.
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
products.
Best Prospects in Mission Targeted Sectors
Energy
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
improvement).
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.
Zambia
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
acres).
Transportation Equipment and Infrastructure
South Africa's government has announced and allocated initial
funding for significant transportation infrastructure capital
investments:
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
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Day of week Date Activity
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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
appointments.
Evening business
reception.
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
meetings.
Evening business
reception.
Thursday................. Nov. 29 One-on-one meetings
Johannesburg and continue in
Travel to Cape Johannesburg.
Town.
Briefing by Cape Town
Consulate Staff.
Networking reception in
Cape Town.
Friday................... Nov 30 Cape Town... One-on-one business
appointments continue.
Mission ends.
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* 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
apply.
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.
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\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.
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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.
Contacts:
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]
BILLING CODE 3510-FP-P