II. LEADING TRADE PROSPECTS FOR U.S. BUSINESSES

AGRICULTURE

The Malagasy government intends to promote development of the
agricultural sector in the next few years.  Efforts will be made
to both encourage production and develop new production methods.
There are opportunities for U.S. exporters to provide
fertilizers, agricultural vehicles and machinery, and appropriate
agricultural technology.

INDUSTRY

In order to be more competitive in the international market,
Malagasy investors are developing food processing industries for
transformation of agricultural products.  Export prospects for
U.S. companies include fruit juice production machinery, freezing
and cold storage equipment, and meat and fruit canning
equipment/supplies.

Malagasy and foreign investors are increasingly taking advantage
of Madagascar's fertile fishing banks. Tuna, lobster and shrimp
farming are currently the most popular products.  Imported
products needed in this sector include fishing boats, navigation
equipment, freezing and cold storage equipment, processing and
canning machinery.  Several Malagasy firms are also seeking joint
venture partners.

As the Malagasy government begins to improve the dilapidated
transport infrastructure, private transportation companies will
begin to reinvest in their enterprises and more new investors
will enter the sector.  There will be a demand for large and
small trucks, refrigerated trucks, small aircraft, small seacraft
for coastal transportation and possibly railroad cars.