APPENDIX B

    BEST PROSPECTS

    Mining Sector

    Diamonds are the mainstay of Botswana's economy and
account for over 80 percent of the total value of
exports.  The Debswana Diamond Company, which ranks
among the major mining companies of the world, has
embarked on a USD 160 million expansion project at the
Jwaneng Mine to increase production.  Commissioning of
the extended plant is scheduled to begin by early 1995.
Debswana is also carrying out a feasibility study on the
viability of doubling capacity at the Orapa Mine.

    It is estimated that about 30 earth-moving machines,
particularly 170-ton trucks, will be purchased over the
next five years to support the expansion plans and
replace existing equipment.  In addition, approximately
36 pieces of ancillary equipment, including graders and
loaders, will be purchased.  Sales prospects of total
equipment is estimated at USD 50 million.  As there is
no local production, all equipment have to be imported.
U.S. equipment brands such as the Caterpillar and
Euclid, compete successfully in the market through
locally registered agents and distributors.  Third
country competitors for mining equipment include Japan,
Canada, Russia and South Africa.

    Construction Sector

    The Government of Botswana is proposing to undertake
the construction of one of the world's largest current
hydrological projects, known as the North-South Carrier
Water Project.  The project consists of a dam in North
East Botswana and a 360 kilometer transfer pipeline to
Gaborone in South East Botswana, estimated to cost over
USD 330 million by the time it is completed in 1997.

    The project provides significant business
opportunities for U.S. firms interested in bidding for
(a) engineering consultancy services; (b) construction
supervision;  and (c) supply of pipelines.  Some U.S.
firms have already indicated interest in the project.
(In the past, U.S. firms have won tenders for the supply
of pipe.  U.S. firms have also been short- listed for
engineering consultancy services.)  Bids will be
accepted on the following pipe materials: glass
reinforced plastic (grp); ductile iron; pre-stressed
concrete and steel.  Toughest competitors against U.S.
firms for provision of pipe to the North-South Carrier
Water Project will come from South Africa (steel pipe)
and France (ductile iron pipe).  Actual construction of
the dam and pipeline will probably be done by South
African or European firms, in partnership with U.S. or
European suppliers.  Invitation for pre-qualification
has already been issued by the Government.

    Computer Sector

    The market size for this sector is roughly valued at
USD 25 million for imports of computer hardware and
peripherals and for maintenance, consultancy and system
service.  The potential for demand-creation of computer
products is phenomenal, particularly in the government
sector which absorbs almost 80 percent of the end-user
market.  Local production of computers is virtually
non-existent in Botswana with the exception of a small-
scale assembly plant.  So far, American computer brands
such as IBM, Hewlett Packard, Digital, Apple and Compaq,
have successfully penetrated the market and account for
about half the total market share.  Foreign competitors
which also compete highly for the market are: Acer
(Taiwan); AST (U.K.); Siemens (Germany) and ICL (Japan).

    Computer firms in Botswana (80 in all) are
mainly vendors and the supply of computer products
ranging from PC's, mid-range systems, main-frames and
peripherals to consumers are adequate.  However,
computer education has not been contemplated by most
companies and remains lacking.  The provision of
educational software coupled with support services and
consultancy have been identified as areas offering
business opportunities for U.S. firms.  Furthermore, the
Government has developed a project to supply about USD
25 million worth of PC's for the next fiscal year.
This creates further opportunities for U.S. firms in the
area of consultancy and support services for these
computers.

    Motor Industry

    Botswana imports over USD 200 million of vehicles
and transport equipment each year, almost all of which
come from South Africa.  However, a prominent authorized
Ford dealer in Botswana has shown interest in procuring
Ford trucks directly from the U.S. to competitively bid
on an upcoming tender.  The Government is scheduled to
release a tender in November, 1994, for about 250 Ford
trucks mainly in the F-150, F-250, F-350 and F-700
series and has requested information on availability of
these models.  The crucial factor is the capability of
U.S. dealers to convert these trucks to right-hand drive
trucks.  (Traffic moves on the left in Southern Africa.)
The local dealer has requested that the U.S. firm be
willing to deal directly with them considering that the
Government tender would be for a substantial number of
trucks.  This is a unique export opportunity for U.S.
firms.