C H£. r/2 : tfyz* a supplement to International Commerce Business ENYA rANGANYI UGANDA 1963 TRADE MISSION REPORT/A U.S. DEPARTMENT OF COMMERCE PUBLICATION A SUPPLEMENT TO International Commerce ... the weekly news magazine for world traders published by the Bureau of International Commerce and sold by the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402, and by Department of Commerce Field Offices for $16 a year. Report of the 1963 Trade Mission to KENYA TANGANYI KA UGANDA U.S. DEPARTMENT OF COMMERCE Luther H. Hodges Secretary Franklin D. Roosevelt, Jr. Under Secretary Jack N. Behrman Assistant Secretary for Domestic and International Business Eugene M. Braderman Director, Bureau of International Commerce For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C., 20402 - Price 35 cents Members of U.S. Trade Mission to Kenya, Tanganyika and Uganda BERNARD BLANKENHEIMER, MISSION DIRECTOR Director, Africa Division, Bureau of International Commerce, U. S. Department of Commerce WILLIAM R. KAPP Economi St Pfizer International New York, N. Y. MARVIN W. MELTON P artner Melton Bros. Implement Co. Jonesboro, Ark. ERASMUS H. KLOMAN, JR. Investment Economist American Metal Climax, Inc. New York, N. Y. JAKE SIMMONS, JR. President Simmons Royalty Co. Muskogee, Okla. GRANT L. THRALL Chairman Ballagh & Thrall Philadelphia, Pa. ROBERT WILBOURN, TRADE DEVELOPMENT OFFICER Chief, Trade Development Staff, Trade Mi ssion s Division, U.S. Department of Commerce Reports by Mission members are reprinted from the December 23, 1963 issue of INTERNATIONAL COMMERCE EAST AFRICA 1963 U.S. TRADE AND DEVELOPMENT MISSION REPORT Contents Page Introduction 4 East Africa — An Overview of the Market 6 Kenya — General Economic Outlook 11 Tanganyika — General Economic Outlook 14 Uganda — General Economic Outlook 17 Zanzibar — General Economic Outlook 21 The Market for Consumer Goods Including Foodstuffs 22 Agricultural Equipment 24 Drugs and Pharmaceuticals 25 Industrial Equipment 28 East Africa as a Field for U.S. Investment 29 Statistical Appendix 32 Trade Opportunities 39 Certain developments in East Africa that have taken place subsequent to preparation of this report of the Trade and Development Mission to East Africa, may affect business conditions there. Although it is too early to evaluate the importance of these developments, businessmen intending to follow up on the trade and investment opportunities described in the report of the mission should ascertain the latest information from the Department of Commerce through the Bureau of International Commerce, Office of International Regional Economics. Photos used in this supplement to INTERNATIONAL COMMERCE were furnished by Kenya Information Services, Tanganyika Information Services, Uganda Department of Information and Zanzibar Ministry of Commerce and Industry. Far-reaching changes stir East Africa Fast-moving internal transition forces area to cross-roads of independence, responsibility By BERNARD BLANKENHEIMER Most Americans today are aware that far-reaching changes have occurred in the African continent during the past decade. They know generally that these changes have involved politi- cal, economic, and social forces; beyond MISSION that, individual DIRECTOR Americans vary widely in their knowledge concern- ing the scope of these changes and their implications, both to the United States and the world economy as a whole. Misconceptions about Africa, its people and resources are still legion. Especially is this so for certain regions such as East Africa, where in the past fast-moving internal changes have been overshadowed by more dramatic develop- ments elsewhere in the continent. The transition from colonial territory to sovereign state in East Africa, as else- where in the continent, has resulted in a "power shift" from European-based insti- tutions to locally oriented ones — from the minority resident whites to the ma- jority indigenous community. This transi- tion creates new problems. African leaders now universally recog- nize that political independence carries a heavy burden of responsibility and, as one African leader puts it, "throws into sharp relief basic economic and social problems hitherto eclipsed by the over- riding problems of foreign domination." STREET SCENE: Mombosso, Kenya, one of the chief ports that serve states in Eastern Africa. U.S. Mission to East Africa October 26-November 30 The U.S. Trade and Development Mission to East Africa operated Bus- iness Information Centers in Nai- robi and Mombasa, Kenya; Dar Es Salaam, Tanganyika; Kampala, Uganda; and in Zanzibar. The Mis- sion also visited Nakuru, Kenya; Moshi and Arusha, Tanganyika; and Jinja in Uganda. The Mission carried 445 Business Proposals from U.S. firms and de- veloped contacts for 240 of these proposals. A total of 351 interviews were conducted, resulting in 230 specific leads for U.S. exporters, plus devel- opment of 101 investment oppor- tunities. At crossroads Following independence, pressures in- evitably build up for intensified social and economic development. Yet such devel- opment is heavily dependent on external influences. Firstly, revenues are depend- ent on export proceeds and, therefore, on world price levels in the industrial countries for such primary commodities as coffee, sisal, and cotton which, to East Africa, are its very life blood. Secondly, financial resources for development are derived from external loans and grants and from private loans and equity capi- tal investment. Consequently, the degree of investor confidence in East Africa, based on the assessment of political stability in the area, laws, regulations and other factors affecting the climate for foreign invest- ment, will play an important role in its future development. In this context, East Africa now finds itself at the crossroads — independent, de- siring accelerated social and economic development and wishing to see more di- versified foreign trade and investment re- lations. This creates a challenge and an oppor- tunity for the U.S. businessman — challenge because of the limited U.S. business presence in the area; and op- portunity, because the region offers a new and hitherto unexplored market for U.S. goods and services. TANGANYIKA— Sisal fiber drying inthe sun near Morogoro. REPORT OF U.S. MISSION Newly independent countries of East Africa a common market open to U.S. goods, services Trade regulations no longer a deterrent to purchases from United States, but traditional patterns have precluded broad familiarity with U.S. products The past 2 years have seen the inde- pendence successively of Tanganyika (December 9, 1961), Uganda (October 9, 1962), and now Kenya on December 12, 1963. The political leaders of all three coun- tries have already announced in principle their determination to establish an East African political federation — an event which would make it in size one of the largest political entities in Africa, and the continent's second most populous country, next to Nigeria. At the time of the U.S. Trade and De- velopment Mission's visit to the area this fall, there was no fixed date for the proposed East African Federation and there still appeared some important prob- lems to be resolved before such a new political entity could be established. In an economic sense the basic services for a federation already exist through opera- tion of the East African Common Serv- ices Organization (EACSO), should the political parties concerned hope even- tually for a larger framework. All sides agree that the EACSO must be main- tained and strengthened notwithstanding future political developments. An outgrowth of the East Africa High Commission (established under the Co- lonial regime) to achieve economic co- operation on a regional basis, EACSO is a supra-national body, headquartered in Nairobi and supported by the three main- land countries of Kenya, Uganda, and Tanganyika. EACSO maintains for these countries a common transportation and commu- nications service including all posts, tele- graphs, railroads, and harbors. The Or- ganization administers and supervises rev- enue collections — including income taxes as well as customs and exci'se — and has broad responsibility for coordinating re- gional matters relating to health, social twined with the three mainland coun- tries, and following its independence on December 9, 1963, Zanzibar now may be expected to pursue policies leading to- ward economic if not political ties. As members of the sterling bloc of countries, Kenya, Tanganyika, Uganda, and Zanzibar maintained rigid import li- censing and exchange controls during the post-war period. As a matter of policy, these controls restricted U.S. purchases to those classes of goods considered as essential or not available from sterling sources and, as a result, U.S. exports to the area were limited both in value and commodity make-up. Beginning in 1959, sterling area con- trols were successively dismantled so that today trade regulations in East Africa are no longer a deterrent to purchases from the United States. The area, there- fore, represents a relatively competitive and open market for U.S. .goods and serv- ices. Uniform tariff rates Moreover, Kenya, Uganda, and Tan- ganyika historically were precluded by international treaties from imposing pref- erential tariffs and, consequently, a single column tariff is maintained in the three mainland areas at uniform rates to all countries, including the United Kingdom as well as the United States. Additionally, customs duty rates are, for the most part, held at moderate levels as the Govern- ments in all three areas thus far have been opposed to indiscriminate customs tariff increases for protection, except as merited for bona fide infant industries. welfare, and education. Although each country itself legislates on such matters as taxation, uniform rates are maintained as a matter of policy. There is also a com- mon currency, the East African shilling, maintained on par with sterling. Common market With a population of 25 million people and an area of 680,000 square miles, or roughly one-fifth the size of con- tinental United States, Kenya, Uganda, and Tanganyika constitute a de facto common market within which an internal economic customs union is maintained with no taxes or duties across inter-terri- torial borders. Zanzibar is not now part of this common market but has made ap- plication. Its economy is closely inter- Market profile— East Africa Area: About 680,000 square miles, roughly equivalent to one-fifth the conti- nental land area of the United States. Tanganyika is largest with 362,000 square miles, followed by Kenya (225,000 sq. mi), Uganda (92,000 sq. mi.), and Zanzibar (1,000 sq. mi). Population: About 25 million. Currency: East African shilling (1 E.A. shilling = US$0.14). Unit of account is the East African pound, roughly at parity with English sterling. Gross domestic product: About $1.6 billion (1961). Motor vehicles: About 80,000 passenger cars; 3,000 buses; 60,000 trucks. Daily newspapers: 15. Electric power production: About 870 million kilowatt-hours in 1961. Principal cities: Nairobi, population 266,800; Mombasa, 179,600; Dar Es Sa- laam, 128,750; Kampala, 46,750; and Zanzibar, 58,000. Total volume of trade: About $800 million (imports about $400 million) in recent years. Principal imports: Automobiles, trucks, petroleum products, farm equipment, roadbuilding machinery, mining apparatus, irrigation equipment, cotton fabrics construction materials. Principal exports: Cotton, coffee, sisal, oilseeds, tea, cloves. «KII^^^ I U.S. TRADES INDUSTRY! NAIROBI: U.S. Trade Mission members spoke to a businessmen's meeting at the City Hall. From left, Erasmus H. Kloman, Jr.; Marvin Melton; Grant Thrall; Bernard Blankenheimer, Mission Director; Jake Simmons; William Kapp; and Robert Wilbourn, Department Trade Development officer. Institutional nontariff trade barriers, consequently, no longer exist; yet despite this, U.S. exports to East Africa have not shown dramatic increase. Traditionally, East Africa has had a heavy favorable balance with the United States. While U.S. exports have gained in recent years, in 1962 such exports still totaled only $26 million as against sales to the United States of $50 million. In 1962, 33.8% of the total of $379.5 million imported into East Africa was supplied by the United Kingdom, and 45.3% by the British Com- monwealth as a whole. By comparison, the U.S. share was 6.9% . What, then, are the reasons for the United States' poor showing? Traditional patterns One reason is that although institu- tional obstacles to trade now have been removed, East Africa is a competitive and brand-conscious market and U.S. goods, therefore, face a problem of be- ing introduced to a market where many types' and brands have not had previous opportunity for trade or sales promotion. Another and possibly more significant reason is that many classes of exports to East Africa are impeded by the fact that some of the larger local foreign trading companies, agents, and commercial banks are affiliated with, or are branches of, European-headquartered companies or institutions and are largely content to maintain their traditional sources of sup- ply from England and the continent, with the same brand items that have already been established in East African mar- kets. It would be a mistake, however, to ascribe full blame for the poor U.S. per- formance on these traditional market fac- tors. Indeed, the evidence is that a good many of the established firms in East Africa are eager to make broader con- tacts and to introduce new items from the United States, particularly now that Kenya, Uganda, Tanganyika, and Zanzi- bar are all fully sovereign countries. But these firms have been handicapped by an appalling lack of knowledge of U.S. prod- ucts, specifications, and sources of sup- ply. This reflects past trade restrictions but also, more fundamentally, the still lethargic attitude on the part of U.S. businessmen in this strategically placed and promising African market. Pivoted around agriculture Considered separately, the East Afri- can countries are not among the more wealthy African areas. None of them, with the exception of Tanganyika, has a significant minerals resource base and in all countries production of primary agri- cultural commodities is of pivotal im- portance. Indeed, the agricultural econ- omy in East Africa is characteristic of the dualistic nature of agriculture else- where in tropical Africa — subsistence farming, which provides the bulk of em- ployment, and commercial production di- rected largely to the export market. Inter-territorial trade within the region is of some importance to Kenya which exports meat, vegetables, and dairy prod- ucts to the other areas; but primarily, the prosperity of the East African region is dependent upon the export to industrial consuming countries in Europe and the United States of such cash crops as coffee, cotton, pyrethrum, wattle, tea, cloves, etc. As of 1961, East Africa's gross domes- tic product was estimated at $1.6 billion (£580 million), of which no less than $862 million or 53% was accounted for by "primary industries" — largely agricul- ture, but also including mining ("subsist- ence" agricultural activity, the heaviest component of the "primary industries" category, was valued at $437 million rep- resenting 27% of total GDP). Manu- facturing and construction contributed only $202 million or 12%; and trade and transport, $269 million or 17%. Agricultural exports, which currently represent about 85% of the total value of all exports, are heavily dependent in Kenya and Tanganyika on the output of estate farming which, up to now, has meant those lands farmed by non-Afri- cans under leaseholds or other forms of land tenure. In Tanganyika, for example, only 1% of the land is alienated to estate agriculture under non-African control; but this 1% produces 45% of Tangan- yika's total agricultural exports. Similarly, in Kenya, in 1961 some 3,600 European and Asian holdings produced V/i times the value of an estimated 950,000 Afri- can farms. Only in Uganda, where aliena- tion of land to non-Africans has been negligible and the big money crops are African-produced cotton and coffee, is the situation substantially altered. In all three areas, vigorous Govern- ment programs are underway to increase the African's contribution to output. In Kenya, plantations are being "African- ized" through various Government pur- chasing programs. Role of non-African resident There can be no question of the neces- sity for East African Governments to pur- sue aggressive policies aimed at increas- ing the African's participation in the money economy; however, it is no less important to utilize to advantage the valuable contribution to output and to economic development of the non-Afri- can resident. In both Tanganyika and, more recently and seriously, in Kenya, an outward flow of capital funds and/or emigration of European and Asian residents have been in evidence which could not help but ex- ercise a depressive influence on the level of economic activity. At the time of the Mission's visit, there was some uncertainty and uneasiness in some non-African circles over the role of minority groups in East Africa. It was also apparent that these groups, by and large, wished to identify themselves ac- tively with the region's future. To the extent that these groups express confi- dence by expanding operations so as to assist in the African's development — for example, through employment, training, or partnership schemes — they will receive the confidence of Government. Vice versa, the course of future Government policies in the region will determine the degree of non-African resident associa- tion with East Africa. This matter is of great importance to United States/ East African commercial exchange because, while it is in the in : terest of all concerned to establish direct contacts with African entrepreneurs and the foreign traders, there are relatively few such African businessmen at present. Of the total East African population of 25.5 million, an estimated 363,000 are Asians and 88,600 are Europeans or "whites." In general, Africans are en- gaged in agriculture, pastoral activities, or trade, rather exclusively on a petty retailing basis. The large Asian and Euro- Overall view s The U.S. Trade and Development Mission which visited East Africa in the fall was comprised of seven members, five from private business and two from the Department of Commerce. ..'' Business members were William Knapp, Grant Thrall, Jake Simmons, ' Marvin Melton, and Erasmus Klo- man. Bernard Blankenheimer, Di- rector of the Africa Division of the Bureau of International Commerce was Director of the Mission; Robert Wilbourn, Chief of the Trade Devel- opment Staff of BIC's Trade Mis- sions Division, served as Trade De- velopment Officer. The accompanying article, pre- senting an overall appraisal of the East African market, is a joint effort while reports by the individual busi- ness members are on the pages immediately following. pean communities have been dominant in trade, investment, finance, and indus- try. Promotion essential Obviously, foreign trade relations will need to be conducted with the established firms and reliable agents having experi- ence in specific commodity lines. More- over, for some items in the capital goods field, only the large firms in East Africa are equipped for providing local regional technical facilities. Yet there is evidence that some of the larger companies having literally dozens of products for which they may act as agents, do not care about aggressively promoting U.S. vis-a-vis other foreign products for which they have agencies. Consequently, over the longer term, U.S. firms shouki make every effort to find and, if necessary, to train or otherwise assist indigenous African firms. Specifi- cally, adequate research and surveys di- rected to the requirements of the market must be developed by potential U.S. ex- porters to East Africa. They must appoint qualified agents or distributors, establish regional offices, undertake sales cam- paigns and, in general, expend efforts which are at least commensurate with the size and potential of this growing market. Three basic customers In general, there are three basic cus- tomers for products in East Africa: The Government itself, in connection with the procurement of goods and serv- ices to carry forward the public sector development programs; indigenous pri- vate or quasi-Government institutions such as the development corporations and the African agricultural cooperatives; and the individual consumer whose present effective demand is becoming increasingly diversified as the general level of eco- nomic development proceeds in the coun- try. Public development programs in East Africa over the next several years will result in substantial improvement of roads, railroads, power supply, and com- munications. As a result, a large and ex- panding market exists for construction materials and equipment, and the whole range of products associated with public projects, transportation, and communica- tions. Tanganyika's Five Year Plan, end- ing July 1964, calls for an expenditure of $67 million, and the Government hopes to devote an additional $200 mil- lion to development between July 1964 and June 1969. Plans in progress call for an outlay of $200.8 million in Uganda between 1961 and 1966, and $157 mil- lion in Kenya during the next 4 years. Procurement of capital equipment has been directed mainly to British sources by virtue of the fact that public author- ities placed their orders through the Crown Agents in London which does not issue open bids as a rule, but approaches particular firms — again, usually tradi- tional sources of supply. Here there is undoubtedly an element of preference in favor of Commonwealth sources. In the future, however, it is likely that East African public authorities will be doing their own purchasing direct from foreign sources. This makes it essential that U.S. companies interested in engi- neering or construction contracts in gen- eral should maintain continuing liaison through on-the-spot representation with Government authorities charged with eco- nomic development programs. In connection with East African pub- lic development projects, it should be noted that the U.S. AID program in this area presents an opportunity to U.S. ex- porting firms because current policies re- quire that AID funds be expended for U.S. goods and services to the maximum extent possible. AID has a substantial program in East Africa emphasizing proj- ects in education, agriculture, community development as well as in infrastructural improvements such as roads, power, etc. U.S. development loans and grants to this area have risen from $.4 million in fiscal 1961 to $12.2 million in fiscal 1962, almost doubling in the current year to $24.1 million. A considerable portion of this amount currently is in ""tied aid" 8 which means that much of the equipment, supplies, and services related to these as- sistance projects must be purchased from the United States. For this reason it be- hooves the U.S. exporter to establish himself in the East African market. Indigenous private or quasi-Govern- ment organizations, such as the coopera- tive movement among African farmers, have hitherto largely confined their at- tention to the marketing field. However, more and more, these cooperatives are turning their attention to the consumer cooperative field and here, therefore, a new sales opportunity exists for Ameri- can exporters to conduct direct trade re- lations with such organizations. Likewise, cooperatives are becoming a factor in the market for mechanized farm equipment since, through such co- operative organizations, finance is becom- ing increasingly available to small farm- ers for the modernization of their farm- ing enterprises. The market afforded through increased wants by the individual consumer needs to be carefully studied. While the per capita income in East Africa is £23 ($64.40), it is not correct to assume that because of this the African consumer wants only cheap and limited staple com- modities. In the urban areas, particularly, the African consumer often buys luxury goods before essential goods, and a prom- ising market for consumer quality goods of a relatively diversified price range does exist, as is indicated in the list of items currently imported into the area. The Asian and European population segment, with their higher incomes, generally have a more diversified consumption pattern. Products with good prospects To the extent that the "made in the United States" label is seen in East Af- rica, it has achieved a reputation for su- perior quality, particularly in effectively promoted brands of capital goods such as earthmoving and roadbuilding equip- ment. Almost all U.S. goods do require special trade promotion methods, par- ticularly those which are little known in East Africa but for which the United States lias demonstrated advanced tech- nology or superior product innovation and, therefore, can be deemed to have market potentials for sale in East Africa. Consequently, products for which there is thought to be a favorable market for expanded U.S. exports fall into two cate- ■ Items which are already being im- ported by the large agencies and which involve servicing and replacement parts — automobiles, trucks, electrical appli- ances, air conditioners, farm machinery, roadbuilding equipment, mining appara- tus, and irrigation equipment. ■ Products which the United States is not now marketing directly to any signifi- cant extent in East Africa but for which considerable local interest is being shown and could be developed — canned and frozen foods and other provisions; tex- tiles and clothing including miracle fabric textiles, inexpensive ready-made clothing, particularly light-weight and wash and wear fabrics; hardware; pharmaceuticals and medical equipment and supplies; cos- metics and toiletries; office supplies and equipment; light-weight metal furniture and fixtures; and building materials. The Mission strongly recommends that U.S. exporters, to promote sales effec- tively in the East African market, should examine their present agencies to insure that their present representatives are ade- quately promoting sales and, if not, take steps to seek other suitable agencies. This can be done through the facilities of the U.S. Foreign Service posts in East Africa and the U.S. Department of Commerce in Washington, from whom names of po- tentially promising agencies or repre- EXPORTS OF KENYA, UGANDA, & TANGANYIKA / 1962 (Total Value $355.6 Million) Kenya 30% ORIGINS Tanganyika 40% Uganda 30% PRINCIPAL DESTINATIONS West Germany India Netherlands Hong Kong 3.4% Italy 2.9% Japan 2.9% PRINCIPAL COMMODITIES Tea Diamonds United Kingdom 28.4% Meat & Meat Preparations 4.0% Copper 3.2% Hides & Skins 3.2% Pyrethrum 2.6% - sentatives, including cooperative organi- zations, can be secured and financial data on these firms obtained. U.S. exporters may also desire to con- sider the possibility of establishing their own wholesale sales offices in East Af- rica. There is no substitute for on-the- spot sales promotion and American com- panies should consider sending their personal representative to conduct busi- ness survey trips from time to time. To develop brand consciousness, U.S. manufacturers or exporters should allo- cate funds for publicity and sales pro- motion. Even if initial losses are en- countered, long term benefits may offset any initial expenditures. East Africa is a market that has long been isolated from the U.S. business community. Introduction of new commodities from the United States should be carefully planned and should provide for adequate servicing. It should be kept in mind that once a reputation is established, either by brand or performance, it is difficult to dislodge the article's position in the market. Source: Economic & Statistical Review June, 1963, East African Common Services Organization. KENYA: Jomo Kenyatta, Prime Minister of Africa's newest independent State, welcomes Trade Mission. 10 Kenya industry scores impressive gain since 1945; economy still farm-based Production soars 13 percent a year in 1947-54; climbs 6 percent yearly till 1960; outlook bright for East Africa's most industrialized nation lijJHKfcWj Kenya is located on the Indian Ocean and extends about 280 miles north and south of the equator. The area of the country is 225,000 square miles, or about the size of France, including more than 5,000 square miles of water. Kenya experiences a wide range of physical and climatic conditions mainly because of variations in altitude. Mean temperature ranges from 55 de- grees in the mountain areas to 80 degrees on the coast. Average rainfall is between 40 inches and 70 inches near Lake Victoria, but only 10 inches in the bar- ren north. Kenya's Highlands More than half of the country is sparsely populated desert or semi-desert, but the highlands of the southwest con- tain some of the best land for settlement and agriculture in Africa. Kenya's popu- lation has tended to concentrate in the more favorable areas — along the coast, around Lake Victoria, and in the high- lands. Some areas, especially Nyanza Prov- ince on the shore of Lake Victoria, are among the most densely peopled parts of Africa and the capacity of the land to yield a livelihood does not always match the population distribution. The reluctance of people to leave their estab- lished homes, and division of the land on a tribal reserve system, have pre- vented people from moving from areas where production is reaching its limit, under present techniques, to areas which could support them at a higher level. Unfortunately, only about 13% of the land area is suitable for intensive crop production and grazing. Farm Exports Kenya's economy is highly dependent on agriculture. In recent years, it has accounted for about 40% of the gross domestic product. Agricultural products and livestock contribute about 85% of export earnings and the majority of the population devotes most of its efforts to growing staple food crops for home con- Biscuits baked rotary oven. sumption. European leased or managed farms produce 80% of marketed agricultural production, 85% of agricultural exports and 70% of domestic agricultural sales. Marketing of staple foodstuffs and major crops is organized through statu- tory bodies that take delivery of prod- ucts, distribute them to processors, hold reserves 'to meet seasonal shortages, and market surpluses abroad. Prices for the major products are fixed by the Minis- try of Agriculture and the organizations concerned. Autos, parked at the curb, line the street in Nairobi, capital and largest city of Kenya. Photo courtesy East Africa Tourist Travel Assn. New cement factory on Athi river is indicative of the growing industrialization in Kenya. Export of coffee, Kenya's most im- portant cash crop, is bound by the 1962 International Coffee Agreement Quota, and production and marketing are con- trolled by a Coffee Marketing Board. Tea, pyrethrum, dairy products, meat, cotton, and maize are also marketed by their respective boards, and licensing is required for pyrethrum production. Industry Growing Although the basis of the country's economy has been agriculture, and is likely to remain so, industry has devel- oped impressively since 1945. Manu- facturing and repairs contribute about 10 percent of gross domestic product, making Kenya the most industrialized of the East African countries. Produc- tion, in money terms, grew at a rate of 13% a year between 1947 and 1954, then at a rate of 6% until 1960, when the economy slumped. This period was marked by a fall in spending and invest- ment, and increasing unemployment. Keny* industry is based largely on the processing of local raw materials, such as sisal, pyrethrum, coffee and tea. It also has clothing and textile plants, and tobacco, soap, shoe, and cement fac- tories. In 1960, Asians and Europeans num- bered about 10% of the 620,000 people employed outside of agriculture, but they filled most of the professional, tech- nical, and administrative positions. Mixed Economy Manufacturing is generally in private hands, and capital has come partly from local businessmen and partly from over- seas. The government has provided some financial assistance to local firms through the Industrial Development Corporation — the IDC — but generally not for long- term investments. IDC's facilities will be supplemented during 1963 by the formation, with foreign assistance, of the Development Finance Company of Kenya, Ltd. Kenya's industries depend on elec- tricity and imported petroleum products. It is unlikely that heavy industry can be developed unless a cheap source of energy is discovered. The government aims to develop the country in cooperation with private capital. In accepting a mixed economy, official planners acknowledge agriculture as the main source of national Income. The Kenya government is now pre- paring the first draft of its 1964-1970 Development Program. Outlay for in- dustrial development remains small, equivalent to $2.5 million, but capital for this sector comes mainly from private sources, and the government stimulates growth through investment allowances and a tariff policy designed to assist local industry. Power is provided by a private com- pany, and railways and harbors are an East African Common Service. Capacity is adequate and calls for no major expan- sion in the next few years. Roads in agricultural areas need to be improved and the equivalent of $8.9 million has been allocated for them. Any future public program will be restricted by available resources, and heavily depend- ent on external sources. Outlook Bright Future prospects for Kenya are good. Cash crop production was excellent dur- ing 1960 and 1961, and the value of ex- ports was at a record level in 1962. Tourism has become an import source of revenue, bringing in the equivalent of $16.8 million per year. Since the latter part of 1962, confidence has returned, and there are strong reasons to believe that Kenya will soon resume its rapid economic growth. ~~w\ Products of Kenya's factories and farms loaded aboard outgoing ships at Kilindini harbor. 12 SUDAN 13 This modern building in Dor es Salaam is not an apartment house, but a tobacco factory. Tanganyika seeks foreign capital; U.S. helps finance development plan Country's five river basins hold promise as power source; mining is a growing industry; main exports, cash crops, are sisal, cotton, coffee Tanganyika, the first East African na- tion to achieve full independence, has an area comparable to Texas and Colo- rado combined. From its 550-mile coast line on the Indian Ocean, it extends inland for some 600 miles. The vast center of the coun- try is high plateau, very hot, usually without much water. Most of this area is infested with tsetse fly. The central plateau is ringed by a narrow coastal strip on the east, several groups of mountains to the south and north (Mt. Kilimanjaro, 19,340 feet), and by lakes in the west. Most of the arable land is in the northern and southern highlands, along the coast, and in the western lake region. Rainfall is uncertain over most of the country with the exception of the north- east mountain regions and the areas immediately around the lakes and along the coastal plain. Droughts alternating with heavy floods are not uncommon. Tanganyika has five river basins which are significant potential sources of hydroelectric power and could also be developed in conjunction with agri- cultural expansion schemes. More than 98% of Tanganyika's esti- mated population of 9,600,000 is Afri- can. There are about 120 tribes, mostly of Bantu derivation who differ widely in customs, language, and living habits. Non-Africans residing in Tanganyika in 1961 total 141,000, of which 21,000 are Europeans, 87,000 Indians and Paki- stanis, and 28,000 Arabs. Though small, this part of the popu- lation is exceedingly important to the economic life of this country. Nearly all sisal, the main cash crop of Tangan- yika, is produced on European-owned estates. Asians and Europeans not only control most of the trade and commerce, but also occupy many managerial and administrative posts in private and pub- lic organizations. Agriculture Tanganyika's three main cash crops — sisal, cotton, and coffee — account for nearly 60% of the value of all its ex- ports. Agricultural products make up more than 80% of the country's export total; minerals, semifinished and finished products make up the rest. Approximate- ly 400,000 persons are employed in the money economy, about half of them in agriculture. Most of the African popu- lation is dependent on subsistence agri- culture or nomadic herding for a liveli- hood. Of Tanganyika's gross domestic prod- uct, agriculture, including subsistence, accounts for about 70%. The government is encouraging farm- ers to grow more cash crops and reduce subsistence farming. Only 290,000 square miles of Tan- 14 Tanganyika joins AID investment guarantee program Tanganyika is the 19th African country to join the AID Investment Guarantee Program. Members of the U.S. Trade and Development Mission, led by Ber- nard Blankenheimer, Director, Afri- can Division, Bureau of Interna- tional Commerce, were present when the agreement was formalized November 14 by an exchange of notes between Tanganyika's Min- ister of Finance, Mr. Bomani, and the U.S. Ambassador to Tangan- yika, William Leonhart. The Guarantee supplements the general assurances given to all for- eign investors by, the Foreign In- vestment (Protection) Bill which was recently adopted by_ the Tangan- yika Government* The new bilateral agreement per- mits AID to insure U.S. citizens, U.S. corporations and their wholly- owned foreign subsidiaries against various non-business risks. Insur- ance is offered against inability to convert local currency into dollars; against loss due to expropriation, war, insurrection, and revolution; and certain commercial and politi- cal extended risks. A Tanganyikan Government statement declared that the exist- ence of the agreement, together with the Foreign Investment Act, would make it possible for U.S. businessmen to invest in Tanganyika with complete confidence and that "the exchange of notes, taking place as it does when a visiting U.S. Trade Mission is in the country, should add impetus to the drive towards industrial expansion." ganyika are presently suitable for agri- culture. Of this total, 10% is cultivated by the African farmer. Europeans and Asians account for an additional 3,000 square miles. The remainder remains uncultivated. Most Africans are subsistence farmers although they grow all the cotton and most of the coffee, cashewnut and pea- nut crops in this area of Africa. Non- African plantations account for virtu- ally all the sisal and tea, the greater part of the tobacco and pyrethrum, and some coffee. Livestock raising is mainly a subsist- ence activity. Hides and skins, however, are important export items. In 1962, sale of these commodities earned $4.2 million in foreign exchange. Salt and fresh water fishing present a great po- tential resource although present fishing techniques are primitive. Mining, a comparatively new indus- try in Tanganyika, is becoming increas- ingly important, although its contribu- tion to the economy is still small compared with agriculture. Diamonds are the country's most important known min- eral resource. Diamond exports account for roughly 10% of the value of total exports. Other minerals entering Tan- ganyika's export trade include gold, tin, mica, salt, building materials, and silver. Development Plan The government of Tanganyika is assuming increasingly greater responsi- bility for the country's economic well- being. A $67-million development plan for 1961-64 earmarked 29% of the spending to improving communications, 24% to agriculture, 14% to education and other funds to transport. The United Kingdom has supplied most of the external funds for develop- ment. However, the United States has also played an important role. In De- cember 1961, at the time of Tangan- yika's independence, the United States committed $10 million in loans to help finance Tanganyika's three-year 1961-64 Development Plan. During fiscal 1963 and the first quarter of fiscal 1964, the United States approved eight loans (for projects including improvement of the 15 Worker checks food cans ready for shipping water supply, constructing facilities at the University College, and financing imports from the United States). Obligations for development grants amount to $4.1 million, and are ear- marked primarily for use in public ad- ministration, agriculture, and community development. In addition, the United States has provided substantial technical assistance through the Peace Corps. Tanganyika was the first country to re- quest such a program. from metal box factory in Dor es Salaam. Production Production of semimanufactured and finished goods is centered for the most part around Dar-cs-Salaam and in cer- tain agricultural producing areas to the north and west. Industry's contribution to the national economy, while small, has more than doubled since 1954 and now accounts for about 4% of gross domestic product. About 30,000 persons are employed in manufacturing activities. Manufacturing for the most part has been relatively small scale and limited to agricultural processing enterprises. Recent investments in the private sector, some of them with Government partici- pation, form an impressive list. Agree- ment has been reached with an Italian firm for construction of a $14 million oil refinery in Dar-es-Salaam. Construc- tion work has started on a $3.3 million cement factory. Government Cooperation Government cooperation with private industry is found in such semi-public organizations as the Tanganyika Devel- opment Corporation (TDC) and the Tanganyika Development Finance Com- pany (TDFC), which were established to encourage the flow of capital into profitable investment opportunities. The operation of these organizations also should assist in attracting overseas capi- tal. Thus far, the TDC has interests in the hotel industry, a sawmilling plant, a plastics factory, a pipe factory, and a cement works. In 1963, to attract foreign private capital, the government passed a law which provided for a 10% income tax allowance on the cost of assets used in new manufacturing enterprises. This allowance has since been increased to 20% and is extended to industries which process local raw materials. The Government also legislated 'in favor of repatriating private capital as a measure to attract foreign investment. The U.S. Government on November 14 concluded a bilateral Investment Guarantee Agree- ment with Tanganyika. Tea plantation hugs the sceinc, lower slopes of the Usambara mountains in Tanganyika, 16 Owen Falls dam in Uganda supplies that country, and neighboring Kenya, with electric power. Uganda strives to up its farm output, foster industry, commerce, tourism Government puts top priority on expanding commercial farm- ing; launches five-year, multi-million dollar Development Plan Uganda, an inland country, lies astride the equator but enjoys an agreeable climate because of the moderating in- fluence of an altitude that averages be- tween 3,500 and 4,500 feet, and rises in places to more than 14,000 feet. Dotted with mountains, rivers, and lakes (including Lake Victoria, the source of the White Nile) and world-renowned game parks, such as the Murchison Falls Park, Uganda possesses a tourist potential that can be substantially further de- veloped. The country has primarily an agricul- tural economy, presently dependent on the production and exportation of a few cash crops such as cotton and coffee that, together, account for over three-quarters of Uganda's global exports. Other cash crops include tobacco, fish, peanuts, sugar, sisal, tea, and livestock. However, most agricultural activity is still in subsistence farming and the main theme of current Government economic planning is to reduce the relative im- portance of this sector of the economy. With a temperature averaging from 60°F to 85°F, rainfall of about 50 inches a year in most parts of the country, and fertile uncrowded land, there are good prospects for introducing new money crops. Indeed, the Government, aware that 62 per cent of Uganda's gross domestic product is derived from farm- ing, has recognized that the main thrust of economic development efforts must lie in increasing agricultural output through the expansion of additional money crops and by inducing subsistence farmers to switch more of their activities into commercial production. One obstacle is that the favorable agri- cultural economy in the 1950's, when cotton and coffee prices were high, re- sulted in little pressure for change among African farmers. A second is the natural abundance of food in the countryside which discourages moves to urban oc- cupations. The diet of a great many Ugandans is unbalanced, however, with an excess of starches and a deficiency of proteins. There are some 8.7 million acres under cultivation in Uganda, of which over 2.6 million are devoted to cotton, coffee and tobacco as the chief cash crops (cotton and coffee accounting for over 76 per cent of the value of exports). Neverthe- less, there are said to be over six acres of land per head of population that could be additionally cultivated. Land tenure legislation in Uganda has sharply restricted alienation of land to non-Africans, with the result that only 530 square miles of agricultural land, or less than one per cent of the total land area, is now owned by non-African farmers. Such plantations, however, are important in the output of sugar and tea. Most of Uganda's approximately 6,920,000 people, drawn principally from three dominant racial strains of Bantu, Nilotic, and Hamitic, are agri- culturists and pastoralists. Outside of the public services, which employ 100,000 persons, there are 136,000 people en- gaged in private industry and commerce, of which 125,000 are Africans, 8,500 Asians and 2,500 Europeans. In the past, the small Asian and Euro- pean community has provided most of 17 UGANDA GENERAL BASIC INFORMATION » ■ ■ International boundary Railroad (meter gage) Selected principal road national capital The tmrnportotron tttown ot< o*ii« map it < erol'zed and for onentatron purport c manned by ,he U S Government. t J SatTOTi > Lake the skilled managerial and technical per- sonnel, now, however, increasing num- bers of Africans are being trained for higher skilled jobs as the result of the Government's efforts, with assistance that includes the U. S. Agency for Inter- national Development (AID) and the substantial programs of private founda- tions, most of which are American- financed. As the economy of the country is founded on peasant production of a few cash crops, fluctuation in world price levels for these commodities has a tremendous bearing on the over-all pros- perity of the area. In the immediate post- war period and continuing through the mid 1950'Sj high price levels for cotton and coffee stimulated increased output and provided Government funds to undertake broad public works and social development projects. Most of this reve- nue came from export taxes plus sub- stantial price stabilization reserves accumulated by the statutory cotton and coffee marketing Boards which, in Uganda and other East African areas, are the exclusive purchasers and sellers. The country's gross domestic product rose dramatically through the early 19'50's. Since then, falling price levels from cotton and coffee, coupled with a relatively high rate of population increase (2.5%) and increased prices paid for necessary imports, have slowed the eco- nomic growth of Uganda. Farmers in Uganda to some extent have, offset the impact of commodity price declines through increasing their output, but production cannot be in- creased indefinitely because of such fac- tors as the present quota ceilings on cof- fee exports as a consequence of Uganda's membership in the International Coffee Agreement. Consequently, the Government is plac- ing stress on improving the quality of output and, above all, on a diversification through a broader agricultural base so that better prices can be commanded in the world market. Emphasis also is being placed on ex- pansion of the livestock industry and of related secondary industries. There were, in 1963, over 3.3 million cattle and about the same number of sheep and goats. Hides and skins exports could be expanded by proper tanning and curing procedures. Fishing represents an economic re- source capable of much further develop- ment. Government efforts at moderniza- tion of fishing through introduction of modernized boats and modern fishing gear has already achibved striking results. As roads are improved, too, possibilities 18 should exist for development of a trade in frozen fish to neighboring territories. Although tin, beryl, gold, cobalt, tungsten, iron ore, and phosphate are among the minerals known to exist in Uganda, few are commercially exploited at the present time. The most important mineral in Uganda is copper, the coun- try^ third largest export item after cotton and coffee, with an export value of over $10 million in 1962. The major industrial region is the Kampala-Jinja area, centering on the Owen Falls hydroelectric dam and power project, completed in 1954 with a capacity of 120,000 kilowatts. A number of secondary industries, including copper smelting, textile, cement, and breweries, have been established there. The pro- cessing of local raw materials through ginneries, coffee hulleries, and oil mills has long been an industry of importance in Uganda; but manufacturing establish- ments are of recent origin. The principal factors in the develop- ment of Uganda industries were the establishment in 1952 of the Gov- ernment-owned Uganda Development Corporation which has interests in 29 associated and subsidiary companies covering textile, banking, agriculture, mining, metalware, grain milling, fish and food products, hotels, steel and building materials. Interests may vary from small shareholdings to wholly owned sub- sidiaries, and currently the company offers many opportunities for joint ven- ture capital. While annual income per capita is the equivalent of only $64.40, the farming community is relatively prosperous by African standards. Large cities are not common in Uganda or, indeed, in East Africa. The heaviest density of population is around and back from the shores of Lake Vic- Molten metal pours in a stream from busy si toria. Urban population is concentrated in the Kampala-Jinja area. Proximity to communications and transportation facili- ties, both by rail and water makes this area the business and industrial heartland of the country. The Uganda Government has adopted a £90 million ($252 million) Develop- ment Plan which covers the five years f,rom mid 1961 to mid 1966. It is largely lelters ai the Kilembe copper mines in Uganda. based on the recommendations of a World Bank Mission which conducted a comprehensive survey of Uganda's economy in 1961. The plan, aimed at increasing Uganda's national income by about 4 per cent per year, includes the equivalent of $198.8 million for develop- ment in the public sector and anticipates an investment of the equivalent of $53.2 million in the private sector. Cloth woven from Uganda cotton readied for shipment by employes of local textile mill 19 The largest section of the plan involves the spending an amount equal to $74.2 million for commodity production, com- merce, and tourism. Another $98 mil- lion is planned for roads, railways, airports, communications, and power; $30.8 million for social services, mainly education and health; and nearly $22.1 million for local authority schemes in- cluding water supplies and housing. Heavy dependence on external sources for both private and public capital is indicated in the development plan. Whether the plan proceeds on schedule depends on a number of factors, includ- ing the level of Government revenues available to finance annual budget ex- penditures on extraordinary account, together with the inflow of both public and private foreign capital. Nonetheless, to the extent that the Uganda program generates demands for foreign goods and services, it should provide new opportun- ties for American exporters. As an example, the Government is placing considerable emphasis on the establishment of cooperatives as a means of aiding small farmers to band together for the development of enterprises too large for individual activities. There are now 1,700 cooperatives with about 300,- 000 membership, and there are some 250 cooperatives involved in various credit schemes under the Agricultural Credit Bank. Such credit unions make it possible for larger projects to be undertaken such as the construction of cotton gins or other processing activities. For example, the Ministry of Agriculture has recently imported over 100 tractors, mainly from the United Kingdom and, while they are being used for special work, many of them are being turned over to the co- operatives and it is reported that the Two miners dig ore with a pneumatic drill in one of the workings of a Uganda copper mine. Ministry is thinking of increasing this to 1 ,000 tractors in the next five years. The progress of AID programs in Uganda in agriculture, education, and public administration will stimulate the Grading coffee at foctory in Uganda purchase of American supplies, equip- ment, and services. In most of these programs, the Uganda Government is supplying half or more of the costs. Assistance is being provided for agri- cultural and livestock development, agri- cultural education, extension and re- search and tsetse fly eradication control. There are sales opportunities here for manufacturers of tractors and other farm machinery. In the field of education, $2.6 million has been provided for the construction of a girls' high school, and a $2.4 million loan was granted for the expansion of I I existing secondary schools. This will result in orders for American building equipment. In addition, a development loan of $2 million was made for the use of the Uganda Development Corporation in part for the purchase of equipment and supplies from the United States. This will assist the Uganda Development Corporation in carrying forward its plans for increasing output in the commodity producing sectors of the economy. 20 Zanzibar economy tied to clove trade; future hangs on finding new markets Cloves, clove oil, coconuts account for 98 percent of Zanzibar exports; country strives to diversify farming, develop major new export crops Zanzibar comprises the islands of Zanzibar, Pemba and the small unin- habited Latham Island. The largest coralline island off the East African coast, Zanzibar's 640 square miles is separated from the mainland by a chan- nel, 22 Vi miles at its narrowest part. Pemba. which lies about 25 miles north- east of Zanzibar, is only 380 square miles, but most of the clove plantations. the mainstay of economy, are situated there. The islands' tropical climate is gov- erned by monsoons; mean temperature ranges between 84.4° F and 76.6° F in Zanzibar, and between 86.3° F and 76. 1°F in Pemba. There is no com- pletely dry season, but marked rainy seasons occur between March and May and between November and December. Average yearly precipitation is about 58 inches in Zanzibar and 73 inches in Pemba. Population is about 335,000. . Zanzibar Zanzibar town, the only large city, contains some 70,000 people. It is the only port for ocean-going vessels and dominates all commercial activity in the islands. The majority of the population is rural. The agricultural sector contrib- utes an estimated 45-50 percent of Zan- zibar's gross domestic product. Most of the production is subsistence farming, although there are instances of modern productive techniques. The economy is heavily dependent on cloves, which cover about 80,000 acres and contribute almost 25% of the gross domestic product. A Clove Growers' Association assists in price stabilization and distills and markets clove oil. Eighty percent of exports consist of cloves and clove oil. Coconut products account for ariother 18%. The prosperity of the clove industry is entirely dependent on overseas sales and the principal established markets, India and Indonesia, have restricted im- ports. Exports to Europe have tripled since 1957, but sales elsewhere have re- mained steady. The future of the indus- try may well depend on its ability to develop new markets. Cloves are spread out for drying on straw mats at one of Zanzibar's many clove plantations. Shoppers at local market place. Zanzibar used to be the entrepot for all of East Africa, but re-export trade has declined almost 80%. For the last 50 years, production for export has bare- ly kept pace with the increase in popula- tion. Industry Output Industrial production is limited and consists mainly of the processing of clove oil, coconut oil and fiber, soap manu- facture and local handicrafts. The do- mestic market is small, and access to the East African mainland is hindered by tariff barriers. Trade Balance Zanzibar had an unfavorable trade balance in 1962, its fourth in six years. Forty percent of imports were agricul- tural, a slight improvement over the previous year but not encouraging, in view of the economy's agricultural base. The government is attempting to di- versify and increase agricultural output but has not been too successful in devel- oping major new export crops. Emphasis is now being given to increasing produc- tion for local consumption, but it is_ un- likely that Zanzibar will become self- sufficient in food since the best land is planted in export crops. Development expenditures are financed by contributions from recurrent revenue, local loans, British grants, and other ex- ternal assistance. During fiscal 1963-64, the government proposes to spend the equivalent of $1.6 million on capital expenditure. Of this, the equivalent of $0.5 million will be devoted to develop- ing agriculture and natural resources through the Zanzibar Development Bank, fisheries development, and agricultural extension and training. 21 East Africa market for consumer goods diversification seen Long-term promotional efforts needed as competition is keen By JAKE SIMMONS, JR. The market in East Africa is small now but as East Africa's economic develop- ment accelerates, the consumer goods mar- ket will become in- creasingly diversified and hence merits long-term promo- tional efforts by U.S. exporters and manu- facturers. Competition is keen, not only with regard to suppliers in the U.K. but also with those in Italy, Germany, Japan, and even in the Soviet Bloc countries. Prior to the Mission's visit to East Africa, a Japanese Floating Trade Exhibition oc- casioned great interest, as did a Yugoslav Trade Exhibition which was held in Dar es Salaam during September/October. Other foreign country exhibitions have been commonplace. U.S. exporters of consumer goods should therefore examine their present operations to ensure ade- quate sales promotion in East Africa. CONSUMER GOODS Discriminating consumer The African consumer is a most dis- criminating purchaser and quite conscious of quality standards. He may not know the technical composition of the com- modity, but once the article develops the reputation for durability or quality this fact becomes widespread and the con- sumer is more apt to disregard the cost factor in preference to the quality, which in turn is guaranteed by the brand name. Moreover, the limited income of the African consumer makes its disposition a serious task and he therefore becomes a most discriminating consumer. The purchase of a shirt, as an example, takes a sizeable part of his wage, therefore, much time is spent in examining the merchandise to ensure due value for his purchase. The market for consumer goods in East Africa can be divided essentially into two types of consumers: An urban consumer and a rural consumer, each IMPORTS OF KENYA, UGANDA, & TANGANYIKA/ 1962 (Total Value $379.4 Million) Kenya 51% DESTINATIONS Tanganyika 30% Uganda 19% PRINCIPAL SOURCES United Kingdom 33.8% Other 30.8% PRINCIPAL COMMODITIES Machinery & Manufactured Goods 39.2% Chemicals Source: Economic & Statistical Review June, 1963, East African Common Services Organization. 22 having distinct scales of wants and very different levels of income. In the rural areas the individual con- sumer lives mainly on the basis of sub- sistance activities with an effective level of demand for only the most essential foodstuffs and household goods. Money income is derived mostly from the sale of cash crops which, however, may be only incidental to the major activity of subsistence agriculture. In urban areas there is a wage-earning class displaying demand for an increas- ingly diversified range of commodities, in- cluding articles of apparel, canned and frozen goods, and other provisions, drugs and pharmaceuticals, cosmetics and toi- letries, and even household electrical ap- pliances. The more expensive luxury type goods, however, thus far seem to be be- yond the reach of all Africans, except for a relatively limited number, mainly those in white collar, civil service or profes- sional jobs. The luxury type goods are basically still in demand only among the European and Asian communities throughout East Africa. Shops in the urban areas display an impressive variety of consumer goods, many of which carry well-known U.S. brand names. Closer examination of such commodities reveals production by Eu- ropean licensees; rarely seen is the label "made in the United States", which is highly regarded by the consuming public. There are many small retailers in the Asian community of East Africa who op- erate small trading stores in the bush, but who in the cities operate medium and large-scale retail establishments. Most of these Asian "duka wallahs" (shopkeep- ers) are direct importers who buy in small consignments or job lots various and sundry merchandise through com- mission agents or "Indent Managers" in London or elsewhere on the Continent. Retail programs fostered The prominence of Asians in retail trade has prompted the respective gov- ernments in East Africa to foster pro- grams designed to encourage the entry of Africans into retail entrepreneurships through such media as African loan boards or through direct government- supported organizations, including con- sumer cooperatives. In Tanganyika, for example, COSATA has been set up with Government support and with Israeli management to act as a foreign trading wholesaling and retailing cooperative. Capitalized at £450,000, it is still a fledgling organization which has consider- able Government backing and which in- tends to organize a large network of re- tail outlets in direct competition with small existing retail establishments. Small Business Administration Aid #137 discusses the services which combination export manage- ment firms offer manufacturers. It gives suggestions on: (1) the ad- vantages of these services, and (2) how to select and locate a CEM firm that is best-suited for a partic- ular company. Copies of this Aid are available free from field offices and Wash- ington headquarters of the Small Business Administration. U.S. exporters would be well advised to make direct contact with these newer or- ganizations in view of their long-term fu- ture growth prospects. In this context local repfesentation is essential for the effective promotion of U.S. consumer goods. New products, even those regarded as more sophisticated, can be successfully intro- duced as evidenced by an experience the Trade Mission had in Kenya. Research paid off A U.S. sales representative traveling through Nairobi attempted to secure an agency representation for a line of modern soda-fountain equipment. Es- tablished companies were not interested in accepting this line; it was not "saleable in the market". Anxious to prove this statement to his own satisfaction, the U.S. representative proceeded to canvass retail outlets and within two days was able to place orders for four units totaling £15,000, with an expectant four more orders. Salesmanship essential Depending upon the market and the product, aggressive salesmanship is es- sential; where local agents are not avail- able it may pay for U.S. firms interested in long-term prospects to establish their own direct agent in the area. It is essen- tial to understand local conditions and consumer tastes regarding, for example, color and packaging: A bottle to the consumer may be preferable to a can which has no further utilisation; a bottle can be used to carry water or liquid foods after the original contents have been con- sumed. On-the-spot sales promotion is most effective in the long run. It may be desirable to allocate sufficient funds, even though initial losses may be encountered, for the introduction of a brand name which will gain a reputation for quality. The East African consumer is a conserva- tive person who dislikes new products of uncertain quality. However, it is difficult to dislodge an article's position in the market once reputation is established for it by brand and performance. The U.S. Department of Commerce stands ready to assist U.S. exporters by providing World Trade Directory reports on East African firms. KENYA BAKERY: Biscuits travel on belts to the packing department of bakery visited by Mission in Kenya. 23 MARKET FOR AGRICULTURAL EQUIPMENT Change in East Africa's agriculture pattern necessitates import of farm equipment Crop diversification, improved production methods emphasized; cooperative movement may open market for mechanized machinery FARM EQUIPMENT By MARVIN W. MELTON At least three distinguishing character- istics of agricultural activities are evident in East Africa, the Mission found. Some areas, as in Kenya, have sub- stantial acreages al- ienated for planta- tion cultivation, but the vast majority of the people currently engaged in agricul- tural pursuits farm small plots averaging from 10 to 20 acres. Such peasant farming can be in cash crops, such as coffee and cotton but a great many people still farm largely for their own subsistence. Such food crops in- clude corn, yams, cassava, millet and sorghum. A third characteristic is the importance of cooperatives. Although lack of water, poor soil and the tsetse fly impede farming and pastoral activities in some parts of East Africa, there are many extremely lush, fertile farming areas such as those in the vicinity of Nakuru and Eldoret in Kenya, Arusha and Moshi in Tanganyika and extensive lands throughout Uganda. Government efforts in all the East African countries aim to reduce or elim- inate subsistence farming and develop commercial farming and pastoral activi- ties. Economic development plans in these countries emphasize crop diversification and improvement of production methods to increase the total output. An important feature of all plans is the encouragement given to further expansion of cooperative farming organizations. Cooperative movement The cooperative movement in agricul- ture has long been present in East Africa. For example, the first cooperative in Uganda was started in 1913 when four farmers joined together to market their produce. However, not until the post- World War II period did the cooperative movement gather momentum under offi- cial encouragement. In 1946 cooperative legislation was enacted in Uganda and a Cooperative Department established. To- day cooperatives in Uganda include more than 1,600 primary market societies with a total membership in excess of 300,000 farms. In Tanganyika a similar well estab- lished and sophisticated cooperative movement exists. Today, agricultural cooperatives in East Africa are increasingly important not only in the marketing of cash crops on behalf of their members, but also as organizations which perform procurement functions on behalf of their members for the whole range of products needed for agriculture, including fertilizers, insecti- cides, farm implements and machinery. While the market for mechanized ma- chinery is still small, rapid growth and development of the cooperative move- ment in agriculture make prospects for more sophisticated agricultural machin- ery items such as large and small tractors, plows, planters, hay equipment, harrows look much more promising. In some areas there are possibilities for water development to be used for irriga- tion. The Rift Valley is said to have two million acres of fertile land that can be irrigated. If this program should develop there would be a great demand for earth moving equipment, pumps, pipes and much other equipment in which the U.S. enjoys technological superiority. Likewise, demand for fertilizers in East Africa should expand. At present only a small proportion of fertilizer needs are imported from the United States. U.S. interests might investigate this market to attempt to obtain a competitive share of this growing business. Changes in the agricultural organization brought about by general advancement in East Africa will largely result in two trends: 1 ) European-owned units will lean to- wards a higher amount of mechanization On these units, the tendency will be to reduce labor forces as far as any specific amount of work is concerned, and in- crease mechanization. Interest has already been expressed in mechanization of the entire program with seeding cultivation, weed control through spraying, and har- vesting. 2) African units, as a whole will con- tinue as small land holdings; however, farm machinery custom work will be carried out through the organization of cooperating societies and some mechani- zation can be expected. At present, this mechanization is apt to be limited to UGANDA: This picker is gathering beans of coffee, one of the country's principal exports; the 1961 crop amounted to about 91,000 tons, mostly robusta. Other cash crops were tea, tobacco, ground nuts. 24 Further Information about country | or area articles appearing in this department, as weil as current in- J formation on commercial and eco- nomic conditions abroad, can be' 1 obtained from the Bureau of In- ternational Commerce, Office of In- ternational Regional Economics, 1 Department of Commerce, Wash- ! •ington, D.C. 20230. plowing and ground preparation as there is still a large supply of labor. Mechanized cultivation and harvesting however re- mains a longer-term possibility as coop- erative societies increase in scope and activity. Group mechanization In anticipating potential markets in farm machinery, a number of factors need to be considered. It is quite evident that within developing countries such as Kenya, Tanganyika, and Uganda, there will be an increase in the amount of farm machinery used. In both Uganda and Tanganyika this is already apparent in direct Government programs for the importation of farm machinery, particu- larly tractors. Mechanization on such units will be largely on a group rather than individual basis. The principal difficulty in selling Un- manufactured farm machinery is that many of the U.S. companies have estab- lished factories abroad. These companies sell many items in East Africa at prices less than those offered by firms located within the U.S. Consequently, the princi- pal opportunity for sales of farm machin- ery lies in a limited number of items which are not being produced as effec- tively elsewhere, such as specialty items — corn cultivators and harvesters. The U.S. is also competitive in the large earthmoving equipment, and pro- motion in this field could be remunera- tive. There are also some opportunities in the sale of sprinkler irrigation equip- ment, including pumps and sprinkler lines. It should be pointed out; however, that one of the basic difficulties in the sale of machinery in newly developed countries is the necessity of maintaining a proper supply of parts as well as a proper service organization. If U.S. companies make an effort to provide services and spare parts for their agricultural equipment they will enjoy a favorable market for their product in East Africa. UGANDA: Waters of the White Nile begin their trip down the step-like cascades of Murchison Falls. MARKET FOR DRUGS, PHARMACEUTICALS Drug demand in East Africa offers lucrative market to U.S. suppliers; local production of medicines begun Africans consume greater share of pharmaceuticals today as area moves from subsistence level to a market economy By WILLIAM ROBERT KAPP Drugs and pharmaceuticals have a lucrative and growing market in East Africa. Until recently, this market has been sup- plied almost entirely by imports coming primarily from the United Kingdom, with other European countries such as Germany, France, and Italy furnishing increasing amounts. PHAR- MACEUTICALS Imports from the U.S. have been al- most non-existent although some have come in recently. On the other hand, many American brand names are found in the market which has been covered for the most part by the British subsidiaries of U.S. companies. There has been increasing local pro- duction of patent medicines — cough prep- arations, tonics, analgesics, ointments and liniments which find a steadily expanding market among the African population. At least four East African firms are now en- gaged in this activity, while others, includ- ing the local sales organizations of over- seas companies, prepare to follow suit. An estimate of the present East African pharmaceutical market would run per- haps $13.8 to $14 million at the retail level. Of this figure, some $12 million would represent imported products, with 25 $1.8 to $2 million reflecting the locally manufactured patent medicines. The im- ported drugs would divide about evenly between ethical preparations and the proprietary, or patent medicines. Thus, the greater share of the pharma- ceutical market from East African coun- tries goes to the patent medicine group. With these consumed mainly by the Afri- can peoples, there should result an even greater market for such products as more and more Africans move from a subsis- tence level into the market economy. Imports amounted to $6.7 million at c.i.f. port value in 1962 compared with $6.4 million in 1961. During the first quarter of 1963 drug shipments into East Africa continued at an annual rate equal to the 1962 figure, although up 7% over the first three months of last year. For the most part, these products reach East Af- rica via ship to Mombasa, Kenya, or Dar es Salaam, Tanganyika. Those for Uganda are transshipped from Mombasa. Some arrive by parcel post. There are virtually no imports by air on a continuing basis. For Government account A closer analysis of the market figures •indicates that about half of the estimated total of $3.8 million (c.i.f. port value) of ethical imports — some $1.9 million — consists of ethicals for Government ac- count. These are usually purchased through Government tenders offered by the Crown Agents in London, an increas- ing number of which have been won over recent years by Italian and other Euro- pean suppliers. Governmental purchases pay no im- port duty and are dispensed through the government hospitals. With this in mind, the private sector thus accounts for $1.9 million (c.i.f. port value), or $3.8 mil- lion at the retail level. European and Asian segments of the population consti- tute the major consumers in this sector. The African is starting to buy such items, or receives them from dispensaries in the government hospitals and also from those maintained by many of the larger com- panies operating in East Africa as well as the Missions. As stated above, he primar- ily depends upon patent medicines at the present time, insofar as he takes medi- cinal products. Kenya represents the largest portion of the pharmaceutical market in East Africa, accounting for somewhat under half of total consumption. Far and away the greater part of ethical drug preparations would be sold here. Kenya would, there- fore, take up some $6.9 or $7.0 million of the total volume at the retail level. Tanganyika and Uganda consume pos- sibly 25% each, around $3.5 million each at the retail level. The position of Zanzi- bar is a small one, the market absorbing perhaps $50,000 of all types of medicines in a year. In light of the growth of the East Afri- can economy, Nairobi, the capital of Kenya, easily has become the chief center for distribution of drugs throughout East Africa as well as the headquarters for the distribution of imported drugs, and for those overseas firms carrying out their own sales and manufacturing operations in East Africa. Three of the four major producers of patent medicines maintain plants here — Kenya Overseas Co. Ltd.; D. D. Patel & Co., Ltd.; and Philipsons, Ltd. The fourth, Opa, is situated in Jinja, Uganda. Distribution Distribution of medicines in the tour countries of East Africa is effected by van or railroad from Nairobi, the commercial hub of the area. There is not much ship- ment by air; some by parcel post. Since much of the activity focuses in Nairobi, local delivery can be made by messenger on motor scooters or bicycle to the retail outlets. Goods are obtained from the stocks maintained by a distributor of a particular company or from the ware- house of a firm with its own local organ- ization. In the proprietary field, distribution activities are also carried out by means of vans sent from Nairobi equipped with loudspeakers which travel about promot- ing the various brands, and likewise make sales — mainly for cash — from supplies brought along for the purpose. The pro- cedure was introduced six or seven years ago. In this fashion, many "dukas," as small shops throughout the region are called, can easily maintain their supplies. Some of the more popular patent medicines move rapidly to the consuming public, mainly African, by this method. Up to the present, the "dukas" have been oper- ated mostly by Asians, who are said to carry on almost all the retail activity in East Africa. However, Africans are now beginning to own and operate these "dukas" in expanding numbers, and this trend will undoubtedly continue. There are no wholesaling operations in the drug field in East Africa, as the term is understood in the U.S., although there are tendencies in this direction. For ex- ample, four firms in Nairobi may well be described as in the wholesale field — Gray- son & Co., Ltd.; Howse & McGeorge, Ltd.; J. L. Morison, Son & Jones, (East Africa), Ltd.; and Wardles, (Wholesale), Ltd. But these houses are likely exclusive distributors for particular firms, many of them American supplying East Africa in- directly from the U.S. via the U.K.. or. until recently, from South Africa. The East African representatives will consequently assist their principals* in promotional activities and other services. At the same time, these houses serve as agents for many other drug and pharma- ceutical lines of American, U.K. and European origin. In this connection, they merely maintain stocks and refleat more a true wholesaling character. They do not promote and only fill orders as received from the trade. The four main companies listed above KAMPAtA VISIT: Mr. M. M. Ngobi, Acting Prime Ministsr of Uganda, right, and Ambassador Olcotf Deming at a Reception for Mission members November 21st. 26 have, in some instances, maintained re- tail outlets, but they are gradually retiring from this field. Besides the chief wholesalers, there are perhaps another twenty or so firms carry- ing out a wholesaling function; that is, bringing in stocks of medical goods for resale. They are small and their total volume together does not approach that of the big four. Pricing Prices for medicines in the private sec- tor in East Africa can be worked back from the retail level. Drugs in chemists' shops, as pharmacies are known, arc marked to allow around 33'/3% to the chemists; the exclusive distributor may receive 20-25% off the resulting figure, but for this he must pay for promotional and related services; a simple agent for a product might secure only a 10% com- mission. Landed costs in Nairobi and elsewhere likewise include 5% allowed for transportation from Mombasa, or Dar es Salaam in Tanganyika, 3% port handling charges and any import duties that may obtain. Another consideration is the cost of shipping ex country of origin and any charges for forwarding from inland points to port in country of origin. Thus, U.S. suppliers of pharmaceuticals who quote f.a.s. prices to potential represen- tatives or customers in East Africa do not provide meaningful information to their customers. They should endeavor to quote at least f.o.b. U.S. port, or c.i.f. Mombasa or Dar es Salaam. From this may be developed a rate structure which will enable the purchaser to determine whether the goods offered are competitive in a highly competitive market place. Also in the pricing field, it may be noted that hospitals buying pharmaceuti- cals receive 25% off the retail price, while doctors can obtain a 15% discount. Cer- tain physicians in East Africa maintain small stocks of drugs which they employ in treating patients in their offices rather than sending them to chemists shops. Cost of the drugs is include'd in their bills to the patients. Ethical pharmaceuticals in the four countries in East Africa — antibiotics, sul- phonamides, narcotics, and the like — are closely controlled and require a physi- cian's prescription. Legislation and regu- lations governing their sale by the chem- ists shops were established under the Poisons and Pharmacy Act of 1956-1957. In turn, this reflects similar controls in Great Britain. Each chemist must have a qualified pharmacist to handle these drugs. Under the system hithertofore existing, pharma- TANGANYIKA: President Julius K. Nyerere (left) greets Ambassador William Leonhart (center) and mem- bers of the U.S. Trade Mission when they paid a courtesy call on him at the State House during their visit. cists in East Africa have had to qualify as pharmacists in the U.K. The advent of independence is changing such rules and pharmacists from continental Europe are reportedly coming soon to East Africa. Following Kenya's and Zanzibar's inde- pendence in December others will prob- ably plan to come. Hospitals occupy a significant role in the consumption of medicines in East Africa, especially governmental and mis- sion institutions. An idea of the situation can be had from the table below listing the estimated number of beds in hospitals and related dispensaries and clinics. These data are derived from unofficial sources :- Govern- ment Mission Private* Total Kenya 6659 2241 2225 11,125 Tanganyika 7000 6100 900 14,000 Uganda . . . 4000 1500 2600 8,100 Zanzibar . . 100 — — 100 Totals . . 17,759 9,841 5,725 33,325 * Includes beds in hospitals maintained by a number of large plantations and commercial concerns operating in rural areas. Mission hospitals have an important' place in the dispensing of medicines in' East Africa. They are not, however, large purchasers from the commercial sector. Due to their limited available funds, they rather look for supplies which they buy from government hospitals at a price nominally about 10% over the govern- ment cost, or which come as charitable contributions from welfare organizations and drug companies overseas. A further index of the market for drugs and pharmaceuticals may be gleaned from the number of doctors, dentists, pharmacies, pharmacists and veterinarians in East Africa, all of whom deal with these products. Corresponding data from unofficial sources are presented herewith: Kenya 538 Tanganyika . . 318 Uganda 354 Zanzibar .... 36 Totals 1,246 40 58 107 20 20 34 IX 13 21 8(1 93 164 125 56 58 2 241 *Most veterinarians are connected with the respec- tive governments. Imports of veterinary medicines are small and the figures are included in all medicinal imports. In conclusion, it may be said that the market for drugs and pharmaceuticals in East Africa is a growing if small one. It may be expanding at a 5-10% rate per annum, both in the ethical and patent medicine areas. In the latter area, com- mercial drug companies will find their most profitable operations in the years immediately ahead. This v/ill come about as the African enters the market economy in greater numbers and acquires a knowl- edge of the various branches of patent medicines available. Many U.S. pharmaceutical firms are already in the East African market in- directly from England. Some exports are now coming from the U.S. For a proper share of an admittedly competitive market, U.S. drug suppliers must be prepared to work closely with a good distributor who will help to promote their products, or establish their own local sales and manufacturing operations. This will apply to both ethical and patent medicines. Some American companies are already in the field, and still others are reported ready to enter. In any event, there is a market worth examination on the spot by interested U.S. exporters and businessmen. 27 MARKET FOR INDUSTRIAL EQUIPMENT East African industrial firms look for goods for railways, harbors, highways U.S. equipment manufacturers could supply light machinery; industry still young, but rapid expansion is expected By GRANT L. THRALL The international trade pattern of East Africa is historically with Great Britain, India and Europe. The U.S. is far behind. Few Americans, outside big game hunters and a hand- ful of tourists, have INDUSTRIAL visited this part of EQUIPMENT the world and only a sprinkling of busi- nessmen have taken the time to properly assess the likely de- mand for American equipment. Commercial imports are almost exclu- sively in the hands of the British and Asians, the latter second and third gener- ation Hindus and Muslims who have migrated here from Western India. There are very few Africans in these three coun- tries presently qualified to carry on inter- national trade. The British firms presently dominate the imports of equipment and machinery for the agrarian economy. The Asians are strongest in consumer goods imports which they distribute through a network of small retail shops scattered through- out the area, also owned in good part by Asians. Both these groups — with an eye to the future — encourage Africans to infiltrate as trainees. American firms interested in reaching this market should take this factor into consideration, favoring groups with Af- rican participation who will take an im- portant place in the growth pattern of the future. It is well to consider the entire area as a unit when setting up distribution. One good firm should be appointed to deal directly with East Africa and not through South Africa, Great Britain or Australia, as in the past. The local people deeply resent American indifference to their commercial needs, and now as they take their place in the free nations of the world they will insist on dealing direct. In Tanganyika, a new type of dis- tributing outlets is being organized that may well be a pattern of the future. COSATA is a Cooperative Supply Asso- ciation managed by Israelis as a whole- sale-retail chain, throughout the country, to help bring consumer goods and light agricultural equipment to the African at the lowest possible cost. INTRATA, organized originally by a Dutch group, concentrates on heavier equipment with several branches in im- portant trade centers. Both groups, while presently organized by foreign personnel, are expanding with Government funds and are busy training young Africans in business procedure. These groups are seeking exclusive arrangements with U.S. equipment manufacturers. There is a common market with equal- ized customs treatment and a common currency throughout the three countries. Consequently a single agent in one coun- try and branches in the others will serve quite satisfactorily as a representative for U.S. equipment. The market for industrial equipment should also benefit through procurement under the U.S. AID program. U.S. equip- ment manufacturers will be wise to seek out responsible representatives now to take full advantage of this situation. In every place visited by the Mission, there was a general complaint of U.S. prices and a reluctance to quote c.i.f. prices. This is a normal reaction in new markets and not always substantiated, although few U.S. companies will offer c.i.f. prices as initial quotations. The U.S. is handicapped by lengthy trade routes to reach this market and American suppliers should study the ocean tariff classifications carefully to find ways to quote competitively. American suppliers can do best price-wise in items that sell well in highly competitive markets as in Europe, Great Britain and Japan where there has been some major success in recent years. Initial quantities will be small and U.S. suppliers should give attractive discounts in anticipation of a growing demand. The major demand for American equipment should be in heavy capital goods for the railways, harbors and high- TANGANYIKA: Capitol and principal port, Dar Es Salaam (Haven of Peace) has population of 128,750. 28 ways. East Africa's requirements are pres- ently obtained through the common serv- ices who place their purchases through the Crown Agencies in London. Information on large tenders are avail- able through the Crown Agencies repre- sentative in Washington, D.C., but actual purchases are usually from traditional suppliers in Great Britain. This will change in time as Africans are trained to fill these jobs. Interested U.S. compa- nies should watch for desirable tenders, as only through persistent action can they break this existing log-jam. Equipment for new industry The demand for lighter equipment for new industries now in the making is far more encouraging. The local European or expatricate community has done well in this field, but the larger Asian commu- nity, with accumulated wealth from other sources, is making an important move in this direction. The Asians are particu- larly discerning in the selection of ma- chinery for these new industries that will open the way for U.S. equipment. Representatives of U.S. companies in this area must be encouraged to go after this business aggressively, particularly where there is some price and quality advantage, specifically in such items as domestic and commercial refrigeration, industrial oil-burning equipment, oil burners and packaged boilers. There is considerable local interest in plastic ex- trusion of film to package produce, and pipe for irrigation. Water pumping apparatus for irriga- tion and farm use will increase in de- mand as electricity reaches the rural areas still supplied by diesel-driven gen- erators. Prevailing electric specifications are 220/240 volts 50 cycle 1 phase. Industry in East Africa is still very young but should grow rapidly. Some of the industries already operating satis- factorily are the following — cement, soaps and shoes, knitwear, woolen blan- kets, twine, matches, bottles, metal cans and boxes, cooking jjtensils, fruit and vegetable canning. The brewery business — as in most countries, flourishes here. All these firms need new and improved equipment and many other industries are under consideration or survey. Most of these Governments are work- ing on period plans that cover hopes and dreams of the industrial future. U.S. companies would do well to review these plans as published to glean the future equipment requirements. New industry involving employment of any consequence is required to get Gov- ernment approval, as the separate Gov- ernments are careful to properly space the location. Imports of certain items are under strict control, for foreign exchange rea- sons, but it is the ideal time for U.S. in- dustry and exporters to take a hard look at this part of the world. Atlantic ports listed "United States Seaports — At- lantic Coast" has been issued by the Maritime Administration, U.S. Department of Cojwnerce. FIELD FOR U.S. INVESTMENT The publication provides data on individual port administration; Fed- eral functions and services; port and terminal services, rates, and charges; labor contracts,, rules, benefits, wage rates, and related data; foreign and domestic trade moving through the ports in 1959 15 and I960; port development and port-related technical studies and research programs; and policy and legal actions taken by the Federal Government affecting the port in- dustry. "United States Seaports — At- lantic Coast" may be purchased from the Superintendent of Docu- ments, Washington, D.C. 20402, for $1 per copy. East Africa's potential market offers diverse future rewards for private American investors U.S. business urged to turn attention to this area where governments, people welcome American know-how By ERASMUS H. KLOMAN, JR. East Africa offers a considerable num- ber of promising potentialities for pro- fitable enterprises financed by foreign capital. Opportunities for private investment range from the small- INVESTMENT scale to larger enter- OPPORTUNITIES prises requiring sub- stantial capital; and from primary agri- cultural production to manufacturing in- dustries based on modern technological know-how. There is little doubt that within the foreseeable future various sectors of the East African economies will advance to a more highly developed, productive level. Without attempting to answer the diffi- cult and highly controversial question whether East Africa can expect to reach the "take-off" point to economic growth in any given number of years, it may nevertheless be said with certainty that the economic development of East Africa is going to proceed apace. Those who invest capital and technical/ managerial skills in this process can ex- pect to win substantial if not excep- tionally high rewards for their enterprise. Equally apparent is the fact that East Africa already attracts and will continue to draw investment from a wider circle of foreign countries than in the pre- independence era. West Germany, Italy, Belgium, France, Israel, Japan, India and both Chinas show varying degrees of in- terest in securing financial stakes in the economic development of the East Afri- can countries. Moreover, many British companies already heavily invested here are diversifying their investments, shift- ing from strictly commercial to industrial fields, all with a view towards reinforcing and safeguarding their positions in the new African economies. Few U.S. products The most notable characteristic of the American business presence in East 29 Africa is its relative insignificance com- pared to active interest shown by most of the world's other industrialized nations. Although the U.S. enjoys as much if not more goodwill here than any other nation and although U.S. products and produc- tion techniques are highly respected, re- latively few companies are established or seek to enter the East African market. By American business standards this market may not reach significant pro- portions for a number of years to come. But those who establish their companies and products early will have a decided advantage over late-comers. The question of the size of the East African market, which is one of the keys to an appraisal of the investment climate cannot be answered with absolute cer- tainty at this moment. Much hinges, of course, on whether the three separate countries can find some acceptable for- mula for uniting on a regional or federal basis. The political leadership of each country has demonstrated full awareness of the importance of unity and a desire to move in that direction. Experience throughout the world dem- onstrates that the more time allowed to nourish national loyalties the more diffi- cult it becomes for nations to unite. Com- petitive nationalisms here might even threaten the common economic institu- tions making up the existing common market. Fragmentation of the substantial degree of economic unity already achieved would seriously undermine the investment climate. Fortunately, East Africa's political leadership consists mainly of responsible and dedicated men who will make every effort to maintain and strengthen existing unity. But exceptional statesmanship will be required to surmount the forces which lead governments and peoples to place national interests above the common in- terests of an unformed community. The East African governments, like all other African governments, are extremely anxious to attract foreign private invest- ment. Towards this end, they are con- sidering and have already enacted some legislation which offers attractive induce- ment to overseas investors. In fact, the Tanganyika Government signed an AID Investment Guarantee Agreement with the U.S. during the course of this Mis- sion's visit to Dar es Salaam symbolizing the sincerity of Tanganyika's interest in attracting U.S. capital. Similar agreements are under discus- sion with the Uganda and the new Kenya and Zanzibar governments. Of course, the investment climate in developing countries is a reflection not only of official statements and laws of govern- ment but also of the attitude and actions of the nation as a whole towards all pri- vate capital. East Africa shows indica- tions that it is learning the lessons of experience in other African states which have suffered economically from a dete- rioration in their investment climates. Kenya is the most advanced in respect to development of industry and modern agricultural production. Nairobi is the commercial, industrial and financial hub of the entire region and Mombasa is by far the largest port. Kenya has the highest per capita income although distribution is far less even than in Uganda and Tan- ganyika. Its imports ($193 million in 1961) exceed in value the combined im- ports of Tanganyika and Uganda, but it alone of the three has an unfavorable balance in external trade. Kenya is the least endowed with known mineral reserves. Its greatest economic problem for the future stems from the combination of a rapidly growing popu- lation and a serious shortage of arable land. Unemployment and underemploy- ment are already serious problems which threatens to become more severe as large numbers of school-leavers swell the ranks of the work forces each year. The threat to future political stability posed by this situation needs hardly to be underscored. What should be emphasized, however, is the relatively hopeful political climate and the constructive attitude of modera- tion on the part of Kenya's political leaders as they approached independence. Tanganyika, in contrast, relatively poorer in both gross product and per capita income, has no shortage of arable land. Having had a far smaller European settlement than Kenya, it avoided many VALUE OF TOTAL TRADE IN KENYA, UGANDA & TANGANYIKA Millions of U. S. Dollars 400 Imports Exports & Re-exports 1946 1956 1957 1958 1959 1960 1961 1962 Sourcet Economic and Statistical Review 1961, 1962, 1963, East African Common Services Organization. 30 of the difficult problems of race relations which Kenya still faces. The social tran- quility and a conscientious dedication to hard work on the part of the country's new civil service all bear witness to wise and responsible political leadership. The cooperative movement is more highly organized in Tanganyika than in any other African country and could pro- vide a most^useful mechanism for eco- nomic advance provided it does not weaken itself by too rapid expansion and diffusion or too much Government direc- tion and control. American business in- terests would do well to investigate the opportunities for joint ventures in col- laboration with cooperatives in view of the special place which this form of enter- prise occupies in the Tanganyika econ- omy. Of the three countries, Uganda merits special consideration on several counts. Geographically, it is well placed for serv- icing not only the markets of East Africa but also the interior markets of Central Africa. In its human resources, Uganda has benefited from the relatively long exposure to both missionary and civil in- fluences from Western sources. It is note- worthy that Kampala was the site of the first East African university, Makerere, which formed the base for the recent establishment to the University of East Africa with branches in all three coun- tries. Influences from the Western world when brought to bear upon an enterpris- ing and resourceful people, have helped to create an atmosphere which is peculiarly receptive to the spirit of American enter- prise. Although Uganda's per capita in- come is not substantially different from that of Kenya or Tanganyika, the Mission found in Uganda quite a number of busi- ness representatives of the indigenous population who are well advanced along entrepreneurial lines. Although it is the smallest of the three countries, it is well endowed in arable land, an exceptionally pleasant climate throughout large areas, and, as noted, human resources of great potential. Investment opportunities As noted at the outset, the fields for profitable investment in East Africa are quite varied. The East African govern- ments wisely recognize their dependence on agriculture as the base of their econ- omies, but welcome outside investment which will introduce whatever industry the economies can support. They place special emphasis on indus- tries based on the processing of locally- produced raw materials in the hope that such a logical approach towards indus- trialization will produce new and better employment opportunities, additional tax revenues and, in some cases, foreign ex- change earned from export. Investment opportunities which fall under this category include the following: Processing of foodstuffs (meat, fruit, vegetables, sugar); processing of sisal; manufacturing of wood, pulp and paper products from local timber; coastal and inland fishing and fish processing; textile and clothing manufacture from locally- produced cotton and wool and synthetic fibers. (The plans to build one American- owned and one German-owned mill in Tanganyika should be taken into account in considering the increasingly competi- tive textile market. A large number of firms, both foreign and domestic, have shown an interest in a market which now accounts for annual textile imports of approximately $17 million). Additional opportunities in fields not directly related to locally-produced com- modities are to be found in the following industries: Building and construction (housing, office and industrial sites, roads and ports as well as manufacture of ce- ment blocks and bricks; existing cement plant capacity already meets market re- quirements); plastics; small-scale con- sumer goods industries; glass and bottle manufacture; fertilizers; assembly indus- tries (agricultural implements, motor ve- hicles, bicycles); service industries, bank- ing, insurance. The opportunity for investment in the tourist industry of East Africa holds con- siderable potential. Wild game is being rapidly obliterated on most of the Con- tinent except for East Africa where large reserves are maintained. The East Afri- can governmental policies of wild life conservation together with the unusually pleasant climatic conditions in the high- land areas suggest promising prospects for substantial growth of the tourist industry. Opportunities for U.S. firms are to be found in hotels and motels or lodges (par- ticularly in locations near the game parks); and tourist travel (including, in addition to providing regular tourist serv- ices, the management of safaris). Farming opportunities The withdrawal of some of the former European settlers, particularly the British settlers' departure from Kenya, has opened an opportunity for Americans to engage in agricultural production in East Africa. Such production, to be acceptable to the host government and people, would in most cases, need to be large-scale, highly mechanized and geared to export markets and foreign exchange earnings. Farming is far from easy in East Africa, but well-managed farms can produce good yields in favorable years. Opportunities in this area include: pro- duction of such traditional crops as coffee, tea, sisal, cotton; and cattle ranching. Like most other developing nations, the East African governments favor joint venture investments which permit foreign capital and technical/ managerial know- how to collaborate with local capital, either private or public or both. The East African countries are all capital-poor. Such capital as does exist is almost ex- clusively in the hands of the ex-colonial business community or the Asians who dominate commerce and who, in some cases, hold substantial savings. Almost no Africans possess capital re- sources and very few qualify by experi- ence or training to assume positions of executive or managerial responsibility. The manpower problem will be somewhat alleviated by the return of East African students studying abroad, though many of these will be entering government. It will be a good while before entre- preneurial groups, such as those which were found in West Africa even before independence, are developed in East Africa. Skilled and semi-skilled labor is also in extremely short supply. The training of Africans for positions of pro- gressively increasing responsibility and authority is essential to the success of foreign businesses operating in this area. East Africa as a field for U.S. invest- ment has suffered from the lack of knowl- edge and interest by the U.S. business community in an area which seemed re- mote and of slight economic consequence. Today, it is no more remote than many areas where U.S. business is engaged. But the area is still regarded as one of only marginal significance. The U.S. business community is thus in danger of losing out to other foreign investors who may be more perceptive in recognizing the growth potential of one of the last new frontiers. If new U.S. investment is not forthcom- ing here, American business will be losing out not only in an opportunity for favor- able returns on risk capital but also in an important market for exports. For just as investment follows trade, so trade follows investment in a relationship which is entirely interdependent. East Africa, with its highly developed structure of common economic institu- tions, is an area of pivotal significance in the economic development of the Afri- can continent. If the American business presence is not strengthened here in the near future, the U.S. business community will be placing itself at a serious disadvan- tage for the long-run future when East Africa becomes a market of economic significance. 31 TABLES Table Area Land Area by Country 1 Population By Country, Racial Grouping 2 Gross Domestic Product Gross Domestic Product by Country 3 Production Mineral Production 4 Selected Agricultural Indicators 5 Transportation & Communications Transportation & Communications by Country 6 Trade Domestic Exports, by Major Destination Country 7 Net Imports by Country of Origin 8 Zanzibar's External Trade 9 Revenue Government General Revenue and Expenditure 10 32 ,/°'°i S I S I ss joqsizuoj "- 1 opuosn S S $ £2 01 — VO <— i oo ro Os W — E 3 «0 o O p- -D l_ CJ 1 38 8-° 3 o s D)f//uo6uoi VO t- VO rH CN t~~ r~- ro vo — o o CO £ o Q> = a ■<* (N r '- ro c ir, D/U3)f J5 ro a- TJ- in n w _ ,__ >. >> ; £ E • o o • c c *_ O TJ ° n (A u c v O .2 • § c (1) ™ a a. 3 c .2 3 c .2 o — 3 5 2 * *• 3 Mm "o c JD B 2 u 3 -Q c -o u IE at '£ O w !=. b o c C > E E ° o c E o a — 5 ^"5 D E O U C 3 O c = o e o C 0) o-o 1— *E 4 (/I in C 5 J O "0 © c .1) o cc O r- tJ- - in vo vo -si" fN l/~, 1/1 VO O vo t> ro r- vo o o» G O ~ C i- c "N Sj § .o »o .y OJ ob •= , ■- a C c > c c l"l sg-«.ss5a« o c O S E „ | .* O O S C 05 ?-. ■Sea's iS g 1 o 1^ ca 3 = 'n 0> a o> u t S § ° M< § QJ.y C U C f-H ca N O E CD u X CD 05 03 O .c §1 •a 3 d 05 o ■a ii o j "5 til is W • £■ .. c . a ta-Q S >- H ■a ea'g « U 05 r2 L- . o- c «05 ■-> s — C •- .<£ w .2 5 «2 > >. 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Also cashew nuts for sale. A. R. Gulamani (Agencies) Ltd., P.O. Box 3157, Mombasa. Investment Opportunities Firms wishing to explore the potenti- alities of this group of investment pro- posals are requested to show the identify- ing interview report number, listed in pa- rentheses after the address in any corre- spondence with the foreign firm con- cerned. 0119 Sugar Cane Farms A Buganda planter seeks an American partner in a joint venture to grow sugar cane on a large scale. Technical know- how, machinery and capital are required. Write to Mr. E. K. Mayanja, Kyagwe Planters, P.O. Box 1, Mukono, Buganda, Uganda. (IR 259) 0139 Cattle raising An established and Government-sup- ported firm of cattle breeders in Tan- ganyika is interested in entering into a joint venture with a U.S. rancher or cattle breeder in order to expand opera- tions and improve local stock. Write Mwananchi Development Corp., Ltd., P.O. Box 2092, Dar-Es-Salaam, Tanganyika. (IR 151 ) 0139 Cattle Ranching Operation of a 4,000 acre ranch in Uganda on a joint venture basis is pro- posed by a Buganda physician and mem- ber of Parliament who has a 99-year lease from the Buganda Government on the property. He is in a position to raise one- half of the estimated $300,000 capital requirement. Interested American investors are in- vited to write to Dr. S.B.M. Kisekka, P.O. Box 95, Kampala, Uganda. (IR 266). 0143 Livestock Farming The Government of Buganda proposes a joint venture with an American group for the expansion of cattle and pig farm- ing in the Buganda region of Uganda. It would make land available under a long- term lease and provide stocks of cattle, pigs, or other animals. Capital is required to purchase necessary farm equipment such as tractors and insecticides. Two large farms, one of 165,000 acres, arc involved. Prospective U.S. investors are invited to write to the Minister of Natural Re- sources, Government of Buganda, P.O. Box 14038, Mengo, Uganda. (IR 261) 0912 Fisheries 2511 Furniture 2821 Plastic materials 2844 Tooth paste 3144 Footwear 3272 Building materials 3423 Agricultural tools, equipment 3981 Tooth brushes An unusual opportunity is afforded U.S. manufacturers to enter into joint ventures in Tanganyika by an economic committee there. This group is sponsored by the Aga Khan, who is interested in promoting local light industries among his followers. The Committee wishes to correspond with U.S. firms that are prepared to assist the development of local industries by providing, on a joint-venture basis, know-how and equipment for commercial fishing, plastic extrusion and injection, furniture making (wood and aluminum) shoe making and production of build- ing materials, agricultural tools and equipment, tooth brushes anJ tooth paste. U.S. investors are invited to write to H. H. Aga Khan Shia Imami Ismailia Economic Committee, P.O. Box 460, Dar-Es-Salaam, Tanganyika. (IR 140) 1455 Kaolift Mining 2093 Candtenut Oil Kaki Kaolin Mines and Manufacturers, P.O. Box 501, Kampala, Uganda, seeks an American group to participate in a joint venture for the mining of kaolin and the production of candlenut oil in Uganda. This firm has a 99V6 year lease on an area estimated to be capable of producing 2 million tons of high grade kaolin. Machinery and technical know- how are required for the mining opera- tion. Write to Mr. Charles Mutagwanya, Manager, at the address indicated above. (IR 277) 2024 Ice cream A Kenya firm of manufacturers' rep- Kenya. NCIA. I.R. 170* Designer and art dealer seeks U.S. outlets for his African designed neckties; carved ebony figures and masks, drums, shields, spears. Also has Persian rugs, Arab and Zanzibar antiques for export. W.H.P. Carey, P.O. Box 3063, DSM. NCIA. I.R. 111. Exporter seeks wholesale connection for distribution of coffee, cotton sisal and cashew nuts. Kilimanjaro Muro Brothers, P.O. Box 562, Moshi, Tanganyika. NCIA. I.R. 159. resentatives and distributors of general merchandise is interested in entering into a joint venture or licensing arrangement with a U.S. firm to manufacture ice cream and distribute it through a chain of drive-in stores. Write to Mr. Daya, Astor Trading Corp., Ltd., P.O. Box 5308. Nairobi. Kenya. (IR 58) 2033 Canned foods An established firm in Mombasa, Kenya, already manufacturing biscuits, is interested in initiating a new product line to complement biscuit manufacturing. It would welcome a licensing arrange- ment with a U.S. manufacturer. The firm is reported to have substan- tial capital resources and is. principally interested in licensing arrangements to cover canned foods, soft drinks, beer and confectionery items. A joint-venture pro- posal would also receive consideration by the firm. Write to Bureau of International Com- merce, Office of International Investment, File 1 -2033-1 -G, Department of Com- merce, Washington, D. C. 20230. (IR 92) 2037 Fruit, vegetable processing A Kenya farmers association is in- terested in starting a range of food-pro- cessing enterprises utilizing locally-pro- duced crops both for the domestic market and for exports. U.S. firms interested in participating in the development of these enterprises should write to Mr. C. A. Magee, Kenya Farmers Association, P.O. Box 35, Nakurn, Kenya. (IR 223) 2037 Fruit, vegetable processing 2299 Textiles 2844 Cosmetics 3211 Glass An established and important firm in Kenya, engaged in the manufacture of hardware, building materials, and tex- tiles and the distribution of food products and cosmetics, desires to enter into joint ventures with American firms to expand its psesent operations and engage in new enterprises. The firm mainly requires technical 44 know-how. It is principally interested in expanding its operations in the textile field, in which it has considerable ex- perience — albeit on a small scale — in fruit and vegetable processing and the production of cosmetics and glass. For further information, write to Bu- reau of International Commerce, Office of International Investment, File 1-2037- 1-G, Department of Commerce, Wash- ington, D.C. 20230. (IR 213) 2091 Cottonseed Oil, Cake and Meal A Kampala firm which operates a fill- ing station and a number of markets in Buganda is interested in expanding into a joint venture for the establishment of a cottonseed oil extraction plant. For fur- ther information write to Bureau of Inter- national Commerce, Office of Interna- tional Investment, File 1-2091-2-G, De- partment of Commerce, Washington, D.C. 20230 (IR 346) 2091 Cottonseed Oil, Cake and Meal 2841 Soap Established since 1946, this firm in Jinja, Uganda, seeks a joint venture to permit expansion of production, exploi- tation of by-products and introduction of new products. The company has an oil milling crushing capacity of 12,000 tons of cottonseed per year, and engages in refining and bleaching operations. New production contemplated includes cook- ing fats and margarine. Current house- hold and laundry soap production is 5 tons daily, a figure which the firm would like to double. For further information write Bureau of International Commerce, Office of International Commerce, File 1-2091-1-G, Department of Commerce, Washington, D.C. 20230. (IR 356) 2099 Instant Coffee The Department of Agriculture of Uganda is interested in having an experi- enced American firm investigate the pos- sibility of establishing an instant coffee processing and packaging plant in Uganda. Firms interested in exploring this opportunity should write the Minister of Agriculture, Department of Agricul- ture, Kampala, Uganda. (IR 353) 2298 Rope and Twine 2661 Hardboard A long-established exporter of grains, pulses and oil seed proposes a joint ven- ture for the local manufacture of rope and twine from sisal and of hardboard from bagasse and sisal waste. Machinery and equipment is required. Write to Mr. D. P. Shah, Manager, Devshi Samat Shah Limited, P.O. Box 8 1 , Arusha, Tanganyika. (IR 231) 2299 Textiles A Kenya firm presently engaged in a wide range of commercial activities, particularly the importation and distribu- tion of textiles, invites U.S. textile manu- facturers or producers of textile machin- ery, to participate in a $4.5-million joint venture (including the first year's work- ing capital) to establish a vertically-inte- grated textile enterprise in Kenya to serve the East African market. The firm is prepared to provide some of the capital required and has obtained agreement in principle from Japanese interests for additional financing. U.S. joint-venture capital and technical/man- agerial participation is desired on a mu- tually agreed share basis. Production capacity based on the cap- ital investment contemplated is reck- oned at 15 million square yards, or about one-sixth of annual East African imports (valued at around $19 million). For further information, write to the Bureau of International Commerce, Of- fice of International Investment, File 1-2299-1-B, Department of Commerce, Washington, D.C. 20230. (IR 220) 2299 Textiles 2834 Pharmaceuticals 2861 Alcohol 301 1 Tires Joint ventures for the manufacture in Uganda of textiles, pharmaceuticals, tires, and the distillation of molasses are pro- posed by the largest indigenous business group in East Africa. The group's promi- nent position in the local business com- munity and its aggressive attitude toward business expansion make these investment opportunities especially attractive. Fi- nancing and technical management are required. For further information, write Mr. Jayant M. Madhvani, Director, Muljibhai Madhvani & Co., Ltd., P.O. Box 54, Jinna, Uganda. (IR 334) 2311 Men's uniforms A clothing manufacturer in Nairobi seeks a joint venture for purposes of ex- pansion. About $100,000 is sought but American technical management is the key requirement. The firm wishes to ex- pand into the manufacture of civilian garments, including such items as shorts, coats and trousers. Write to Bureau of International Commerce, Office of Inter- national Investment, File 1-231 1-1-G, De- partment of Commerce, Washington, D.C, 20230. (IR 46) 2341 Women's Underwear, Garments A manufacturer and wholesale distrib- utor of women's dresses in Kampala pro- poses a joint venture with an American manufacturer for the production locally of women's underwear and garments. Write to Mr. S. E. Jamal, P.O. Box 2882, Kampala, Uganda. (IR 283) 2432 Plywood One of the major lumber producers in Kenya, with a concession comprising large stands of podo, pine and other soft woods, is planning the installation of a plywood mill costing about $300,- 000. The firm proposes a joint venture with an American firm able to provide technical management as well as invest- ment capital. Write to Bureau of International Com- merce, Office of International Investment, File I -2432- 1 -G, Department of Com- merce, Washington, D.C. 20230. (IR 218) 2512 Household furniture An established Nairobi firm in the field of home furnishings — household and of- fice furniture, mattresses, shopfronts and office partitioning — would welcome a joint venture for purposes of expansion. Management and technical know-how, as well as capital would be required. Write to Bureau of International Commerce, Office of International Investment, File 1-2512-1-G, Department of Commerce, Washington, D.C, 20230. (IR 12) 2643 Paper bags A Kenya manufacturer and distributor of paper products seeks to enter into a licensing arrangement or joint venture with a U.S. firm for the purpose of expanding his operations. Requirement is principally for machinery, such as paper-bag machinery and the like. Write to Mr. Maganlal M. Chandaria, Chandaria & Co., P.O. Box I 155. Mom- basa, Kenya. (IR 215) 2649 Stationery 2731 Bookpublishing & printing The largest book publisher and station- er in East Africa, in business since 1924, wishes to expand operations and seeks outside capital, equipment and know-how on a joint-venture basis. Write to Mr. A. J. Patel, Director, D. L. Patel Press, Ltd., P.O. Box 73, Nairobi, Kenya. (IR 62) 2651 Folding paperboard boxes A firm in Kenya, manufacturing plain and printed paperboard boxes and folding cartons since 1946, requires modern ma- chinery and know-how in order to ex- pand operations and meet the demands of a growing market. It proposes a joint ven- ture or corporate association with a qual- ified U.S. manufacturer. Write to Mr. 45 Bhakoo, K. C. Bhakoo, Ltd., P.O. Box 18051, Nairobi. (IR 42) 2721 Periodicals A Nairobi publisher of 7 magazines seeks a joint venture with a U.S. partner to expand publishing activities to cover all of tropical Africa. Of special interest is the establishment of a travel magazine on tropical Africa which would be edited in Nairobi and printed in and distributed from New York and sold primarily in the U.S. and Europe. Write to D. A. Hawk- ins, Ltd., P.O. Box 2768. Nairobi, Kenya. (IR 29) 2812 Caustic Soda A long established Tanganyika firm re- ported to be the second largest manufac- turer of meerschaum pipes in the world seeks a joint venture partner in estab- lishing a caustic soda production opera- tion. The company operates a special min- ing license in the Lake Ambolesi district where it mines meerschaum for its present pipe manufacturing. The license area covers approximately 300 square miles and includes a deposit of gaylussite con- sisting of several million tons of crystals easily accessible under 1 to 5 feet of over- burden. It is proposed to manufacture 100% caustic soda from the crystals. Planning of the caustic soda operation is well advanced and, subject to a final feasibility survey, financing is assured through a combination of public and pri- vate development agencies. The firm would, however, prefer an American joint venture arrangement to governmental participation. For further information concerning this exceptional opportunity write Bureau of International Commerce, Office of International Investment, File 1-2812-1-G, Department of Commerce, Washington, D.C. 20230 (IR 227) 2812 Caustic Soda 2834 Proprietary Medicines A long-established and fairly sizable Uganda firm engaged primarily in the cultivation, processing, and export of tea desires to enter a joint venture with American interests for the local produc- tion of caustic soda and proprietary medi- cines. Contemplated sales territory is the whole of East Africa. Write to Mr. Vinodkant D. Vadera, Director, Dayalbhai Madanji & Company Ltd., P.O. Box 111, Jinja, Uganda. (IR 332) 2819 Sulfuric acid Originally a Danish company, this dis- tributor of liquid petroleum gas in East Africa is interested in a joint venture tor the purpose of producing sulfuric acid. Write to Bureau of International Com- merce, Office of International Investment, File 1 -281 9-1 -G, Department of Com- merce, Washington, D.C. 20230. (IR 80) 2834 Pharmaceuticals 3983 Matches Established in 1951, a Tanganyikan exporter and processor of grain, fruits and vegetables is interested in 2 ventures: a pharmaceutical plant and a match fac- tory. The firm is reported to be financially capable of providing a substantial pro- portion of the required capital but would need, as well as some capital participa- tion, technical and management know- how. Pharmaceutical manufacture would include aspirin, chloroquine tablets, anti- biotic injectables and vitamin prepara- tions. Local timber of sufficient quantity and required quality is available for match manufacture and the firm already has connections with a plywood factory. For further information write Bureau of International Commerce, Office of In- ternational Investment, File 1-2834-3-G, Department of Commerce, Washington, D.C. 20230. (IR 228 and 327) 2834 Cough medicine 3955 Carbon paper A Nairobi firm producing a cough prep- aration and simple patent medicine is contemplating the establishment of a subsidiary for the cough medicine and also the manufacture of carbon paper. A joint venture is desired. Write to P. Phillips & Co., Ltd., P.O. Box 588. Nai- robi, Kenya. (IR 17) 2841 Soap 3461 Bottle caps 3951 Ballpoint pens An established manufacturer's repre- sentative in Kenya with plans to go into manufacturing himself wants licensing arrangements with qualified U.S. firms lor the local manufacture of such articles as soap, bottle caps, ballpoint pens and the like. Write to Mr. Mussa Jetha, Mussa Jetha & Sons, Ltd., P.O. Box 261, Mombasa. Kenya. (IR 199) 3842 Clothing A clothing manufacturer and manu- facturer's representative in Kenya pro- poses a joint venture with an American clothing manufacturer for the expansion of his present operations. He is prepared to invest about $30,000 for such a joint venture. Write to Mr. N. D. Shah, African Merchandise Agencies, P.O. Box 2011. Mombasa. Kenya. (IR 212) 2844 Cosmetics Established early in 1963 to produce aerosol cosmetics, this firm is looking for a U.S. joint venture and capital or a licensing arrangement to expand into production of other aerosol products such as insecticides and deodorants. Write to Anffi Products, P.O. Box 3705, Nairobi, Kenya. (IR 47) 2851 Paint 3452 Nuts, bolts & screws 3433 Kerosene stoves A Kenyan merchant is interested in establishing a paint plant in a joint ven- ture with an experienced American firm. Technical know-how would be required and the possibility of a licensing arrange- ment would receive consideration. The firm is also interested in similar arrange- ments for the production of nuts, bolts and screws as well as kerosene pressure stoves. Write Alibhai Shariff & Sons, Ltd., P.O. Box 382, Nairobi, Kenya. (IR 64) 2872 Fertilizers A firm in Dar-es-Salaam is interested in establishing a fertilizer plant on a joint venture basis. The American firm would be required to supply technical know-how and approximately 40% of the capitalization. Write to Bureau of International Commerce, Office of Inter- national Investment, File 1-2872-1-G, Department of Commerce, Washington, D.C, 20230. (IR 121) 2873 Agricultural Insecticides A long-established cotton-ginning firm in Uganda seeks a U.S. manufacturer of agricultural insecticides prepared to enter into a joint venture for the production of insecticides in Uganda, with a view to supplying the East African market. Write Mr. A. B. Mehta, Director, Gulu Cotton Company, Limited, P.O. Box 1, Jinja, Uganda. (IR 330) 2992 Lubricating oil reclaiming An individual Dar-es-Salaam business- man would like to become licensing agent in reclaiming used lubricating oil. Write Mr. F J. W. Jansen, Ohio St., No. 5, P. O. Box 1301, Dar-es-Salaam, Tan- ganyika. (IR 102) 3229 Glassware 3231 Sheet Glass A small-scale local manufacturer of sheet glass desires to enter into a joint venture with an American glass-maker for the local production of glassware and 46 sheet glass. Technical know-how, ma- chinery and capital are required. Write to Mr. J. M. B. Luntu, P.O. Box 262, Kampala, Uganda. (IR 256) 3272 Building Materials An Uganda firm of building materials importers, with a company operating in Uganda and another in Kenya, proposes a joint venture with an American group for the establishment of a holding com- pany to own and operate these 2 com- panies and finance the setting up of a third in Tanganyika for the procurement and supply from abroad of all manner of building materials financed by foreign aid programs and local private builders. Esti- mated capital needed is $100,000. Write to Mr. E. P. D. Kirwin, Skelbar Agencies Limited, Box 2441, Kampala, Uganda. (IR 326) 3272 Concrete pipe 3321 Cast-iron pipes and fittings 3552 Looms 3751 Bicycles Nile Construction Company, P.O. Box 281, Jinja, Uganda, contemplates expand- ing its operations and, in that connection, proposes a variety of joint ventures with American investors for the local manu- facture of such articles as concrete pipe, cast-iron pipe and fittings, power looms, bicycles, spare parts for ginning machin- ery, phonograph records, collapsible tubes for toothpaste and the like. The firm also desires to acquire exclu- sive agencies for the sale of phonographs, photo-duplicating machines, cleaning compounds and related products. Interested American manufacturers are invited to write to Mr. T. R. Patel, owner, at the address indicated above. (IR's 335/336/340/341/344/345) 3421 3981 Razor blades Toothbrushes An established manufacturer of razor blades in Dar-es-Salaam, who now pro- duces around 4 million a month, is in- terested in a joint venture for expansion purposes. Technical know-how and train- ing of personnel would be required in addition to capital participation. The firm is also interested in a joint venture to manufacture toothbrushes with similar requirements for the foreign in- vestor. It is reported that a market survey of the toothbrush proposal has been made by the Intelligence Unit of the Econo- mist. Write to Bureau of International Com- merce, Office of International Investment, File 1-3421-1-G, Department of Com- merce, Washington, D.C. 20230 (IRs 100, 117) 3429 Hardware An importer of hardware is interested in establishing a plant to manufacture hardware and construction materials. A joint venture or possibly a licensing ar- rangement is contemplated. Write to . . . Mr. S. J. Rahemtullah, Jivanji Hardware Stores, Ltd., P.O. Box 156, Dar-es-Salaam, Tanganyika. (IR 87) 3522 Farm equipment An established Dar-es-Salaam firm ex- perienced in the farm hand-tool business wishes to organize a company on a joint- venture basis to manufacture farm hand tools suitable for use in East Africa. The firm is willing to put up 60% of the capital required. Write to Trinity Trading Company, P.O. Box 68, Dar-es-Salaam, Tanganyika. (IR 123) 3651 Radio receiving sets An established firm in the electrical equipment field wants to expand its im- porting and sales activities into the manu- facture of U.S. electronic and electrical equipment. It is particularly interested in the assembly of VHF radio equipment and would like to discuss joint-venture possibilities with a qualified American firm. Write to S. A. Pegrume & Co., Ltd., P.O. Box 1093, Nairobi, Kenya. (IR 49) 3732 Boats A long-established local builder of fishing boats proposes a joint venture with an American manufacturer for the con- struction locally of fishing and pleasure craft. Technical know-how and machin- ery are required. Write to Mr. B. P. Ab- dulla, Pyaralli Abdulla Limited, P.O. Box 111, Kampala, Uganda. OR 271) 3952 Chalk A recently established firm manufac- turing chalk in Tanganyika proposes to increase production by installing auto- matic machinery. It seeks to interest a manufacturer of such machinery, or other U.S. investor, in entering into a joint venture by supplying the required machinery and equipment as his capital participation in the enterprise. Write to Mr. Amir Bhatia, Chalkstick Co., P.O. Box 2260, Dar-Es-Salaam, Tan- ganyika. (IR 116) 3963 Buttons This organization is interested in con- tacting an American company able to as- sist in developing small manufacturers' plants and supplying know-how and equipment, in either a joint-venture or licensing arrangement It is specifically interested in establishing a complete but- ton plant. Write to East African Indus- trial Promotion Services (Kenya) Ltd., P.O. Box 30500, Nairobi, Kenya, for fur- ther information. (IR 13) 3993 Neon signs With a view to meeting the demands of a growing market, a local manufac- turer of neon and plexiglass signs pro- poses a joint venture with an American neon-sign manufacturer. The firm now enjoys some 90% of the Tanganyikan market for neon signs. This business brings in an annual return in sign ren- tals of $8,400 on an initial investment of less than $20,000. In order to expand operations and enter other East African markets, notably Burundi. Congo Repub- lic and Uganda, the firm requires from $20-30,000 additional capital. Prospective U.S. investors should write to Mr. N. J. Samaras, Afro Ads Neon Lite, Ltd., P.O. Box 711. Dar-Es-Salaam, Tanganyika. (IR 147) 6310 Insurance carriers An East African firm of underwriters is interested in a joint venture or licensing arrangement with an American firm in the insurance industry. The firm is also interested in similar arrangements for cottonseed oil refining, pharmaceuticals, textiles and hotels. Write to East African Underwriters, Ltd., P.O. Box 795, Dar-es-Salaam, Tangan- yika. (IR 112) 7011 Hotels A Kenya hot;! operator seeks a U.S. investor willing to put up around $200,- 000 on a joint-venture basis toward a $300,000 hotel which he plans to build on a 2-acre plot held on a principal street in Nairobi. Write to Mr. Jan Mohammed, Midland Hotel, P.O. Box 257, Nakuru, Kenya. (IR 224) 701 1 Hotels A Tanganyika Government agency charged with developing tourism as well as conservation of wild life in the famous Serengeti and other national parks seeks a joint venture with an American firm experienced in hotel management and tourist promotion. The opportunity would permit capital investment in a Tangan- yika hotel and/ or provide management for the hotel and the tourist industry connected with the development of na- tional parks. For further information write Bureau of International Commerce. Office of International Investment, File 1-701 1-5-G, Department of Commerce, Washington, D.C. 20230. (IR 225) 47 7013 Motels 7831 Motion picture theaters A firm with a 99-year lease on 30 acres of land within the city limits of Kampala, a modern city of 60,000 inhabitants, pro- poses to build a drive-in motion-picture theater, motel-cafe and dance-hall. An American group with know-how and pre- Additional Investment Opportunities These East African investment op- portunities were reported by the U.S. Trade and Development Mission to East Africa but the Department of Commerce has no commercial information and no World Trade Directory Reports are cur- rently available on the listed firms. 0119 Sugar Cane Farms 2621 Kraft Paper 3323 Steel Foundaries An established and locally prominent Ugandan firm engaged in a variety of industrial and commercial enterprises contemplates substantial expansion in a number of fields and would accept American participation, especially tech- nical and managerial know-how. In its sugar operations the firm's 1963 production will approximate 52,000 tons with the limit on production and ex- pansion being the availability of land. Arrangements are now in progress to acquire additional land. The first phase of a paper manufacturing project in col- laboration with the Uganda Development Corporation calls for the conversion of purchased kraft paper into bags termi- nating in a third phase which will involve the manufacture of pulp. The firm's Ugma Steel and Engineer- ing Corporation Limited plans expansion of its mechanical engineering and foun- dry activities and would welcome a joint venture. For further information write the Mehta Group of Industries, P. O. Box 1, Lugazi, Uganda. (IR 349, 350, 351). 2031 Canned Tuna 2034 Dried Fruit 2899 Essential Oils An established Zanzibar firm, engaged primarily in processing coir fibers and coconut oil, is interested in entering into a joint venture with an American firm for the processing of fruit, essential oils, tuna fish, and a grading of grain and seed. Write to Mr. M. Champsi. Fazel Mohomcd Champsi, P. O. Box 97, Zanzi- bar. (IR 314) An association of clove-growers and large scale plantation owners in Zanzi- bar, already engaged in a wide range of agro-industrial operations, seeks Amcri- pared to provide the required equipment on a joint venture basis is sought. Write to Mr. S. J. Geewala, Kampala Drive-in Cinema, P.O. Box 3450. Kam- pala, Uganda. (IR 294). 7831 Motion picture theaters A well-established automobile distrib- can capital in a proposed joint venture for the processing of local products. Of principal interest is the dehydra- tion of fruit, the production and distri- bution of essential oils, tuna canning and grain and seed processing. Write to Mr. W. B. Willems, OBE, Clove Growers' Association, P. O. Box 26, Zanzibar. (IR 316) 2032 Canned food specialties 2834 Druggists' preparations 2844 Cosmetics 3442 Aluminum door and window frames An established Kenya firm engaged in wide range of industrial and commercial operations is interested in entering into licensing arrangements with qualified American firms for the production locally of such consumer items as foodstuffs, drugs, cosmetics, aluminum door and window frames and the like. The firm commands substantial capital and re- quires no financial participation. Interested American firms are invited to write to Mr. Praful Chandaria, Kenya Aluminum and Industrial Works, Mom- basa, Kenya. (IR 86) 2033 Fruit Canning 3951 Pens and Pencils 3983 Matches The largest African-owned private enterprise in Uganda, engaged principal- ly in processing and packaging coffee, desires to enter into a joint-venture with a U.S. investor in one or more fields, such as fruit canning, the manufacture of pens, pencils and matches, and small as- sembly operations. Write to Mr. A. C. Basudde, L. N. Basudde Limited, P. O. Box 3384, Kampala, Uganda. (IR 318) 2037 Frozen Fruit Juices Pacific Fruit Juices, P. O. Box 2491, Dar-es-Salaam, Tanganyika, a recently established producer of fruit juices, pro- poses a joint venture with an American firm in order to expand operations. Ma- chinery and equipment to squeeze, bottle, pack and refrigerate fresh juices are re- quired as are technicians to install such machinery and train local personnel in its operation and maintenance. Write to Mr. H. Chagani at the address indicated utor in Uganda seeks an American part- ner in a joint venture to build and operate an out-door motion-picture theater in Kampala. This enterprise would be the first of its kind in this city. Write to Mr. A. J. Shanji, Gomba Motors Ltd., P.O. Box 1272, Kampala, Uganda. (IR 260) above. (IR 88) 2093 Coconut Oil A Zanzibar importer and exporter is interested in forming a joint venture to develop coconut culture and processing. Write to Mr. Jethalal Valabhdas, P.O. Box. 202 Zanzibar, Zanzibar. (IR 251) 2279 Coir Mats 2298 Rope A firm of coir fiber manufacturers in Zanzibar seeks American joint venture capital to participate in the development of small industries such as rope-making, coir mat production and the like. For its own current operations, the firm also requires a bailing press rated at 50/55 cubic feet of bales per ton of coir fiber; estimated cost, $20,000. Write Mr. Ebrahim T. Karimjee, Zan- zibar Coir Fibre Industrial Company, P.O. Box 47, Zanzibar. (IR 312) 2299 Textiles A small manufacturer in Kenya, estab- lished in 1953, proposes a joint venture with an American firm for the production locally of cotton piece goods. Write to Mr. A. D. Dodhia, The Dodhia Agencies, P.O. Box 889, Mombasa, Kenya. (IR 210) 2321 Shirts A local shirt-maker proposes a joint venture for the manufacture in Kenya of men's and boys' shirts in cotton and synthetic fabrics. Machinery and tech- nical know-how are required. Write to Mr. Vinay Shavdia, European General Agency, P.O. Box 1429. Mombasa, Kenya. (IR 207). 2421 Sawmills Kyadondo, Kamadi Company, P. O Box 1455, Kampala, Uganda, a recently established firm engaged in cutting tim- ber for light-poles, lumber, etc., seeks U.S. investment capital in order to estab- lish a small sawmill in Sese Islands of Lake Victoria. Write to Mr. Kamadi Kyadondo at the address indicated above. (IR 290) 2812 Caustic Soda A producer of sodium silicate estab- 48 lished since 1951, is interested in con- tacting an American chemical firm which might be interested in a joint venture for a caustic soda plant to be established in Kampala, Uganda. Contemplated pro- duction is 14,600 long tons a year, about the present market in East Africa. Cost of the project is estimated at around $400,000, of which the Uganda firm is prepared to invest about $165,000. For further information, interested firms should write Mr. G. C. Patel, United Sodium and Chemicals Industries Limited, P.O. Box 2406, Kampala, Uganda. (IR 281) 2818 Glycerin A mill operator and soap maker invites an American manufacturer or user of glycerin to participate in a joint venture for the production in Tanganyika of glycerin from coconut oil. Production for export as well as local consumption is envisaged. Write to Mr. Akber L. Bhatia, National Millers Ltd., P. O. Box 3007, Dar-es-Salaam, Tanganyika. (IR 97) 2834 Pharmaceuticals This firm of cotton ginners reported to be ginning around 20,000 bales of cotton a year with up to 500 employees on the payroll during the season, is interested in a joint venture to produce pharmaceuti- cals. Interest is also shown in insecti- cides, essential oils and the processing of banana fibers into rope. The firm is reported capable of investing its own sub- stantial financial resources but would re- quire technical know-how from the joint venture partner. Write to Baharak Cotton Co. (1959) Ltd. P.O. Box 96 (Elgon Ave) Mbale, Uganda. (IR 301) A small manufacturer of patent medi- cines and retailer of optical goods and drugs would welcome a joint venture in both ethical and proprietary pharmaceuti- cals and cosmetics. Write to Mr. J. K. Patel, Kalsons Ltd., P.O. Box 225, Kam- pala, Uganda. (IR 300) 2844 Cosmetics 2899 Inks 3315 Nails 3421 Razor Blades 3481 Barbed wire 3951 Ball-point pens A manufacturer's representative and commission agent in Kenya handling a wide range of consumer items seeks to enter into licensing arrangements with American manufacturers for the produc- tion locally of such articles as cosmetics, inks, nails, razor blades, barbed wire, ball-point pens and the like. Write to Mr. Z. J. Chatrisha, Chatrisha & Co., Ltd., P.O. Box 1836, Mombasa, Kenya. (IR 175). 3141 Shoes A joint venture to manufacture shoes locally is proposed by an Uganda manu- facturer who has recently purchased shoe-machinery valued at nearly $150,- 000. Requires capital in an equal amount to expand production. Write to Fit-Rite Mfg. Ltd., P.O. Box 768, Kampala, Uganda. (IR 286) 3479 Galvanizing A firm of enamelware manufacturers in Dar-es-Salaam seeks a U.S. manu- facturer to participate in a joint venture to establish a galvanizing plant required for the finishing of pails, pans, roofing sheets, etc. Machinery and equipment and technical know-how are required. Write to Mr. Aziz Nasser, Sharif! Ltd. & African Beads Co., Ltd., P.O. Box 158, Dar-es-Salaam, Tanganyika. (IR 146) 3532 Hammer Mills 3561 Water pumps A Tanganyika firm engaged chiefly in repairing industrial equipment, ma- chinery, and agricultural implements, de- sires to interest an American manu- facturer in entering into a joint venture or licensing arrangement for the produc- tion locally of hammer mills and water pumps. Write to Mr. J. S. Manik, United Engi- neering Works, P.O. Box 3082, Arusha, Tanganyika. (IR 233) 3562 Bearings An Ugandan importer of automobile parts would like to contact a manufac- turer of oilite bronze bearings and bush- ings interested in a joint venture involving the manufacture of these products in Uganda. Write Mr. V. A. Patel, Continental Automobiles Limited, P. O. Box 2984, Kampala, Uganda. (IR 305) 3634 Electric Appliances Local businessman, active in the household appliances line, seeks to inter- est an American manufacturer in enter- ing into a joint venture for the produc- tion in Zanzibar of electric household appliances. Write to Mr. V. S. Patel, P.O. Box 22, Zanzibar. (IR 248) 3694 Automotive Spare Parts A firm of importers and wholesalers of automotive spare parts in Uganda de- sires to enter into a joint venture or licensing arrangement with American manufacturers for the manufacture in Uganda of automotive spare parts. Write to Mr. Ramesh B. Patel, Champion Motor Spares Limited, P. O. Box 1248, Kampala, Uganda. (IR 325) 371 1 Automobiles Kenyan businessman and investment consultant, who claims to command sub- stantial financial resources, is interested in a joint venture to assemble U.S. auto- mobiles in East Africa. Write to Mr. Ramzanali H. Ebrahim, P.O. Box 145, Salim Road, Mombasa, Kenya. (IR 328) 3951 Ball point and fountain pens A firm in Kampala, engaged primarily in the insurance business, proposes a joint venture or licensing arrangement with a U.S. manufacturer for the pro- duction of ball-point and fountain pens locally. It has some capital to contribute to the ■ estimated $30,000 needed, but requires technical and managerial know- how. Write to Mr. K. R. Shukla, Neptune Agency, P.O. Box 1028. Kampala, Uganda. (IR 348). 7011 Hotels The owner of 72 acre farm and coffee plantation located on two upland hills in the beautiful Usambra Mountain area in Tanganyika proposes the construction of a resort hotel at this location as a joint venture with an American firm. Capital for the construction and equipment of the proposed hotel is required. Write to Dr. Roman Mogilnicki, P.O. Box 585, Moshi, Tanganyika. (IR 1 20) 7211 Laundry and Dry Cleaning A member of the Buganda Parliament desires to promote a laundry and dry cleaning business in Kampala city and seeks the participation of an American investor on a joint venture basis. Ma- chinery and equipment and know-how are required. Write Mr. Kizito Bulwada, P.O. Box 34, Kampala, Uganda. (IR 264) 7949 Amusement Parks The president of the Indian Associa- tion in Mombasa proposes establishment of an amusement park in Mombasa as a joint venture with an American organiza- tion prepared to supply such equipment as ferris-wheels, merry-go-rounds, roller- coasters, games, and the like as its part of the investment. Land and local capital to the extent of about half the estimated total investment of $150,000 are avail- able. Mombasa, a port city visited by average of 20 ships a day, not including naval vessels, has no amusement park at present and a large potential clientele is believed to exist. Write to Mr. Nagin Shah, Decoras, P.O. Box 1923, Mom- basa, Kenya. (IR 157) 49 DRILLS, DOLLS & DIESELS The markets of the world await U.S. manufacturers of products ranging from toys to the heaviest industrial equipment. Trade Fairs, Trade Centers and Trade Missions will help you locate buyers for your particular type of goods or services. For informa- tion, write or telephone the U.S. Department of Commerce in Washington oryour regional Department of Commerce Field Office. U. S. Department of Commerce — Field Offices ALBUQUERQUE, N. MEX., 87 101 U. S. Courthouse ANCHORAGE, ALASKA, 99501 Room 60 U. S. Post Office & Courthouse ATLANTA, GEORGIA, 30303 4th Fl., Home Savings Bldg. 75 Forsyth Street, NW. BIRMINGHAM, ALABAMA, 35203 Title Building 2028 Third Avenue BOSTON, MASS., 021 10 Room 230 80 Federal Street BUFFALO, NEW YORK, 14203 504 Federal Building 1 17 Ellicott Street CHARLESTON, S. C, 29401 Area 2 Sergeant Jasper Building West End Broad Street CHEYENNE, WYOMING, 82001 207 Majestic Building 1 6th & Capitol Avenue CHICAGO, ILLINOIS, 60606 Room 1302 226 West Jackson Boulevard CINCINNATI. OHIO, 45202 809 Fifth Third Bank Building 36 E. Fourth Street CLEVELAND, OHIO, 44101 4th Floor Federal Reserve Bank Building E. 6th St. & Superior Avenue DALLAS, TEXAS, 75201 Rm. 3-104 Merchandise Mart 500 South Ervay Street DENVER, COLORADO, 80202 1 42 New Custom House 19th & Stout Street DETROIT, MICHIGAN, 48226 438 Federal Building GREENSBORO, N. C, 27402 Room 407 U.S. Post Office Building HARTFORD, CONN., 06103 1 8 Asylum Street HONOLULU, HAWAII, 96813 202 International Savings Building 1022 Bethel Street HOUSTON, TEXAS, 77002 5102 Federal Building 515 Rusk Avenue JACKSONVILLE, FLORIDA, 32202 512 Greenleaf Building 204 Laura Street KANSAS CITY, MISSOURI, 64106 Room 2011, 911 Walnut Street LOS ANGELES, CALIF., 90015 Room 450 Western Pacific Building 1031 S. Broadway MEMPHIS, TENNESSEE, 38103 212 Falls Building 22 N. Front Street MIAMI, FLORIDA, 33132 408 Ainsley Building 14 NE. First Avenue MILWAUKEE, WISCONSIN, 53203 1201 Straus Bldg., 238 West Wisconsin Avenue MINNEAPOLIS, MINN., 55401 Room 304 Federal Building 1 10 South Fourth Street NEW ORLEANS, LA., 70130 1508 Masonic Temple Building 333 St. Charles Avenue NEW YORK, NEW YORK, 10001 61st Fl. Empire State Building 350 Fifth Avenue PHILADELPHIA, PA., 19107 Jefferson Building 1015 Chestnut Street PHOENIX, ARIZONA, 85025 New Federal Building 230 N. 1st Avenue PITTSBURGH, PA., 15222 1030 Park Building 355 Fifth Avenue PORTLAND, OREGON, 97204 217 Old U.S. Courthouse 520 SW. Morrison Street RENO, NEVADA, 89502 1 479 Wells Avenue RICHMOND, VIRGINIA, 23240 2105 Federal Building 400 North 8th Street ST. LOUIS, MISSOURI, 63103 251 1 Federal Building 1 520 Market Street SALT LAKE CITY, UTAH, 84101 222 SW. Temple Street SAN FRANCISCO, CALIF., 94011 Room 4 1 9 Customhouse 555 Battery Street SANTURCE, PUERTO RICO, 00907 605 Condado Avenue SAVANNAH, GEORGIA, 31402 235 U.S. Courthouse and Post Office Building 125-29 Bull Street SEATTLE, WASHINGTON, 98104 809 Federal Office Building 909 First Avenue need to know about' Overseas Business Reports give timely, authentic information on these topics— and many others. The De- partment of Commerce publishes approximately 150 of them each year. 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