[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 14920-14922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5993]
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DEPARTMENT OF COMMERCE
International Trade Administration
Trade Mission to South Africa
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. and Foreign Commercial Service is organizing a
Trade Mission to South Africa September 19-23, 2011, to help U.S. firms
find business partners and help export equipment and services in
Johannesburg and Cape Town, South Africa.
Targeted sectors are:
Sustainable and Efficient Energy Technologies, Equipment
and Products.
Electrical generating equipment.
Renewable energy technologies.
Clean coal technology.
Transmission and distribution equipment and technology.
Energy efficiency building technologies and products.
Productivity Enhancing Agricultural Technologies and
Equipment.
Crop production equipment and machinery.
Irrigation equipment and technology.
Crop storage and handling.
Precision farming technologies.
Educational Services and Skills Development.
Training and education services and systems.
Educational and training franchises.
Educational materials.
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 represents the largest economy and most sophisticated
and diversified industrial and services sectors in Sub-Saharan Africa.
Recent reports show the economy recovering well from the recent global
recession. Projections are for economic growth in gross domestic
product (GDP) to average five percent for the next decades as the
country continues to develop. Sectors such as energy, health care,
agriculture, vehicles, processed foods, and others are poised for solid
growth in South Africa. The country also stands to benefit from rapid
growth anticipated in many of its Sub-Saharan African trading partners,
where South African-based companies have strong market prospects. In
2009, total U.S.-South Africa trade was $10.3 billion, a significant
decrease from 2008 levels of $16.4 billion. However, 2010 trade figures
for January to September show growth in trade of over 40 percent above
corresponding 2009 levels and indicate a strong recovery in U.S.
exports to the country. Leading U.S. exports are machinery, vehicles,
aircraft, chemicals, IT equipment and services.
Best Prospects in Mission Targeted Sectors
Energy
State-owned utility Eskom produces about 95 percent of the
electricity used in South Africa and about 60 percent of the
electricity generated on the African continent. Its operations
incorporate power generation, transmission and distribution. Although
Eskom has a total of 24 power stations in commission, with a total
generating capacity of 42,011 MW, this has proved inadequate for the
current electricity demand.
Eskom is building additional power stations and power lines on a
massive scale to meet rising electricity demand in South Africa.
Eskom's capacity expansion budget is $56 billion (R385 billion) up to
2013 and is expected to grow to more than R1 trillion ($144 billion) by
2026. It plans to double capacity to 80,000 MW by 2026. Since 2005
Eskom commissioned projects totaling an additional 4,454 MW and plans
to deliver an additional 16,304 MW in power station capacity by 2017.
This creates opportunities for U.S. firms to provide products, services
and the latest clean coal technologies to the South African energy
market.
According to the South African Government, 30 percent of all new
power generation will be the responsibility of independent power
producers (IPPs). In response to South Africa's plans to limit its
CO2 emissions to below 275 million tons by 2025, Eskom,
still the single buyer of all privately produced generation capacity,
is studying the integration of solar generation from the Northern Cape
Province, including its own World Bank supported Concentrating Solar
Power (CSP) project, into the grid. The focus is to connect the first
1,000 MW, which could be introduced by 2016. Eskom is already rolling
out plans for a 400-kV transmission system in the area.
The country's power supply shortfall has accelerated the need to
diversify Eskom's energy mix and its move towards alternative energy
sources, including various forms of renewable energy. The South African
Department of Energy (DoE) recently released the Integrated Resource
Plan (IRP 2010) for public comment. The IRP calls for diversifying
sources of power and will call for renewable energy sources to supply
16 percent and nuclear sources to supply 14 percent of power by 2030.
In addition, detailed work is currently under way to determine a range
of near-term electricity demand-reduction options that could yield the
equivalent of some 5,000 MW and help stabilize the South African system
between now and 2016. Specific opportunities include renewable-energy
generation, cogeneration, own generation, municipal generation and
other independent power producer programs.
As part of its financial restructuring and capital expansion
program, Eskom has received authorization to increase electricity
prices to consumers by an average of 25 percent per year for the next
three years, and will seek additional increases for the following
several years. The effect of steadily rising energy costs for industry
and consumers will be to create market opportunities for a wide range
of energy saving technologies ranging from energy efficient building
products, lighting, heating and air conditioning, metering, and similar
products and technologies.
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
[[Page 14921]]
and technology a wide range of opportunities. The country's annual
agricultural equipment market is estimated at approximately US$919
million. Tractor sales constitute 60 percent of the total agricultural
equipment market followed by combine and baler sales. Five percent of
all new agriculture equipment is being produced locally; 95 percent of
all agriculture equipment and parts are being sourced from
international markets, and at least 20 percent of new equipment and
technologies are currently being sourced from the U.S. However, used
equipment has limited market opportunities.
Agriculture is a leading component of the South African economy,
employing a million people, and agro-industrial activity amounts to
about fifteen percent of GDP, with substantial growth potential.
Although eighty percent of South Africa's land is used for agriculture
only 15 percent of that is arable, with the rest used for pastoral and
other purposes. South Africa's recent broad-based agriculture
empowerment charter (AgriBEE) aims to boost land reforms and black
ownership of farmland to 30 percent by 2014. With the implementation of
AgriBEE creating new land owners from previously disadvantaged
communities, mission participants will have an opportunity to explore
new emerging market opportunities for equipment and technology.
Educational Materials and Services
Many of South Africa's universities are world-class academic
institutions, at the cutting edge of research in certain spheres such
as mining and engineering. At about 5.3 percent of GDP and 20 percent
of total state expenditure, South Africa has one of the highest rates
of public investment in education in world terms. However, there are
still huge imbalances in education in the country. The greatest
challenges lie in the poorer, rural provinces like the Eastern Cape and
KwaZulu-Natal. One of the country's greatest challenges is persistent
unemployment as it grapples with the effects of a large unskilled labor
force. For that reason, improving education and skills development are
priorities for the government.
There is potential for U.S. companies offering training programs
that will address the serious shortage of skilled labor force in
sectors such as hospitality, utilities, construction, and
transportation. On the business skills area, there is a need for
programs that offer job skills assessment systems which help employers
select, hire, train and develop prospective employees. Other
opportunities include ``learning centers'' franchises, focusing on
after-school care and tuition, both for primary and secondary students/
learners, in the areas of arithmetic, math and science respectively.
Franchising opportunities also exist for adult learning centers, given
the large number of people with gaps in their formal education, in the
area of languages, computer training, and general business skills.
Mission Goals
The goal of the South Africa Trade Mission is to provide U.S.
participants with first-hand market information, 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 market. South Africa, with its well
developed business and financial sector, its indigenous multinational
enterprises, substantial foreign investment, and well developed
infrastructure, is often seen as the point of access to develop markets
throughout Sub-Saharan Africa. Subject to prior consultation and
confirmations, mission participants will have the opportunity to
explore contacts with local firms active in the region and will have
the option of extending their stay for additional business development
activities in South Africa or meetings in neighboring countries.
Mission Scenario
The South Africa Mission will visit both Johannesburg and Cape
Town, allowing participants to access the two largest markets and
business centers in the country. In each city, participants will meet
with new business contacts.
Proposed Timetable
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Day of week Date Activity
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Sunday.......................... Sept. 18.......... Arrive in
Johannesburg.
Monday.......................... Sept. 19, Mission Meetings
Johannesburg. Officially Start.
Breakfast briefing
with U.S. Embassy
Staff.
One-on-one
business
appointments.
Evening business
reception.
Tuesday......................... Sept. 20, One-on-one
Johannesburg. business
appointments
continue.
Wednesday....................... Sept. 21, Travel Briefing by Cape
to Cape Town. Town Consulate
Staff.
One-on-one
business
meetings.
Evening business
reception.
Thursday........................ Sept. 22, Cape One-on-one
Town. business
appointments
continue.
Mission Officially
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
companies 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 $2,125 for a small or
medium-sized enterprise (SME) \1\ and $2,565 for large firms. The fee
for each additional firm representative (SME or large) is $450.
Expenses for travel, lodging, some
[[Page 14922]]
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 for Participation
Suitability of the company's products or services to the
mission goals.
Applicant's potential for business in South Africa,
including likelihood of exports resulting from the mission.
Consistency of the applicant's goals and objectives with
the stated scope of the mission.
Additional factors, such as diversity of company size, type,
location, and demographics, may also be considered during the selection
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.
Selection Timeline
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.trade.gov/trade-missions/
--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 at
11:59 p.m. on July 18, 2011. Applications received after 11:59 p.m. on
July 18, 2011, will be considered only if space and scheduling
constraints permit.
Contacts
Teresa Yung, International Trade Specialist, Global Trade Programs,
U.S. Commercial Service, Washington, DC 20230, Tel: 202-482-5496, Fax:
202-482-9000, E-mail: [email protected].
Larry Farris, Senior Commercial Officer, U.S. Consulate, Johannesburg,
South Africa, Tel: +55-11 290-3316, Fax: +55-11 884-0538, E-mail:
[email protected].
Teresa Yung,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2011-5993 Filed 3-17-11; 8:45 am]
BILLING CODE 3510-FP-P