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Viewing cable 08ADDISABABA2093, ETHIOPIA REGISTERS AMERICAN CHAMBER OF COMMERCE - HOPE FOR

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Reference ID Created Released Classification Origin
08ADDISABABA2093 2008-07-30 12:58 2011-08-25 00:00 UNCLASSIFIED Embassy Addis Ababa
VZCZCXRO9394
RR RUEHROV
DE RUEHDS #2093 2121258
ZNR UUUUU ZZH
R 301258Z JUL 08
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC 1502
INFO RUCNIAD/IGAD COLLECTIVE
UNCLAS ADDIS ABABA 002093 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BEXP ETRD ECON PREL ET
SUBJECT:  ETHIOPIA REGISTERS AMERICAN CHAMBER OF COMMERCE - HOPE FOR 
EXPANDED TRADE 
 
SUMMARY 
------- 
 
1. The Ethiopian Ministry of Justice formally registered the 
American Chamber of Commerce in Ethiopia (ACCE) on June 26 after a 
concerted 20-month effort by Embassy Addis Ababa to establish what 
is only the fourth American Chamber of Commerce in Africa.  The 
establishment of the ACCE offers a unique opportunity on the 
continent to leverage private sector engagement to greatly expand 
bilateral trade and investment relations.  Embassy Addis Ababa is 
working with ACCE leaders to orchestrate a major launch of the 
Chamber and greatly expand its membership, and, through a modest 
foreign assistance project, will help establish a strong 
institutional foundation for the Chamber to quickly become 
self-sustaining.  U.S.-Ethiopian trade has expanded, and although 
the U.S. maintains a large trade surplus, the Chamber can help to 
develop greater trade ties. End Summary. 
 
BACKGROUND 
-------------- 
 
2.  The Ethio-American Business Community Association (EABCA) came 
into being in November 2004 as a loose affiliation of Diaspora 
returnee business leaders.  Since 2004, the association has grown to 
140 members consisting of U.S. based companies, local Ethiopian 
Companies working closely with American counterparts, and 
individuals with an interest in doing business with U.S. companies. 
Recognizing the need further to promote the development of trade and 
investment relations between the United States and Ethiopia, 
Ambassador Yamamoto initially proposed creating an American Chamber 
of Commerce in Ethiopia in late 2006.  Once established, the ACCE 
could provide members a forum to identify common commercial 
interests, serve as an information clearing house, provide a direct 
liaison office with the U.S. Chamber of Commerce, and address the 
need for a stronger and fully functioning association.  The EABCA 
leadership and Post agreed that the EABCA would be the appropriate 
foundation from which to establish the ACCE.  Together, we secured 
ACCE recognition from the U.S. Chamber of Commerce in 2007 and the 
EABCA's executive membership was paramount in leading the lengthy 
and sometimes frustrating transformation from the EABCA to American 
Chamber of Commerce in Ethiopia. 
 
CHALLENGES FACED 
---------------- 
 
3. Despite the confirmed verbal recognition from a range of 
pertinent Ethiopian ministers of the value and advantages of 
establishing an American Chamber of Commerce in Ethiopia, 
transforming EABCA into ACCE has required persistent diplomatic 
engagement between Post and relevant GoE entities.  The chairman of 
EABCA has reported that officials of Ethiopian Chamber of Commerce 
has presented their objection to the Ethiopian Ministry of Trade and 
Industry, which has a say in the process, to block the registration 
of ACCE.  Countering this has required sustained engagement by the 
Ambassador with the Ministers of Trade and Justice and the Prime 
Minister over the course of the past 18 months. 
 
THE WAY FORWARD 
--------------- 
 
4. Although ACCE is now registered, the EABCA must convene a General 
Assembly formally to transform the association into the Chamber, 
adopt the ACCE's revised bylaws, and elect a new Board of Directors. 
 The leadership has tentatively targeted the end of October 2008 for 
this Assembly.  USAID/Ethiopia has allocated $75,000 to support the 
hiring of an Executive Director, expand membership better to capture 
interested U.S. companies and improve demographic representation, 
and establish strong institutional procedures and relationships. 
Post will maintain one ex-officio member on the Board of Directors 
and will actively guide and support the development of a strong, 
professional, and capable institutional foundation for the ACCE. 
After over a year of active commercial outreach to U.S. companies 
with vested interests in Ethiopia, Post expects to see strong and 
prominent American corporate support for the ACCE as it leads the 
way in dramatically expanding trade and investment ties between the 
U.S. and Ethiopia. 
 
5. Potential benefits include expanded trade.  Currently the U.S. 
exports USD 500 million in machinery and tools to Ethiopia and 
imports about USD 80 million from Ethiopia.  The Chamber is viewed 
as a positive vehicle to help Ethiopia improve business activities 
and receptivity to foreign business.  The two critical areas of 
banking and telecom will be a focus for the Chamber as keys to 
attracting U.S. investment.  The Prime Minister supports the Chamber 
and has urged the U.S. to increase investment. 
 
YAMAMOTO