II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESSES

CONSTRUCTION EQUIPMENT: SEVERAL LARGE PUBLIC WORKS PROJECTS WILL
BE UNDERTAKEN DURING THE RECONSTRUCTION OF MOZAMBIQUE'S
INFRASTRUCTURE.  THE WORLD BANK RECENTLY ANNOUNCED A USD 800
MILLION CREDIT FACILITY FOR REBUILDING MOZAMBIQUE'S ROAD NETWORK.
MUCH OF MOZAMBIQUE'S CURRENT STOCK OF CONSTRUCTION EQUIPMENT IS
BEYOND REPAIR.  U.S. PRODUCTS ARE WELL REGARDED AS CATERPILLAR
MAINTAINS A DOMINANT MARKET POSITION.

ENGINEERING SERVICES: THE LARGE INFRASTRUCTURE PROJECTS WILL
REQUIRE FOREIGN ENGINEERING SERVICES SINCE THERE ARE FEW NATIVE
MOZAMBICAN ENGINEERS.  SOUTH AFRICAN AND PORTUGUESE FIRMS ARE THE
PRINCIPAL COMPETITORS.

AGRICULTURE EQUIPMENT:  THE MOZAMBICAN ECONOMY IS DEPENDENT ON
AGRICULTURE, A SECTOR LONG DISRUPTED BY CIVIL WAR BUT NOW SURGING
BACK, WITH OVER A 10 PERCENT GROWTH RATE IN 1993.  COMMERCIAL
FARMING OPERATIONS ARE EXPECTED TO EXPAND RAPIDLY IN 1994-1995.
U.S. MANUFACTURERS HAVE NOT BEEN AS SUCCESSFUL IN THE TRACTOR
MARKET BECAUSE THE LOCAL MARKET REQUIRES SMALL TRACTORS WITH ONLY
80 HP ENGINES.  MASSEY FERGUSON IS THE UNDISPUTED MARKET LEADER.

USED EQUIPMENT AND MACHINERY:  BECAUSE OF THIS COUNTRY'S LIMITED
PURCHASING POWER, MOZAMBIQUE IS INTERESTED IN A WIDE SPECTRUM OF
USED EQUIPMENT FROM THE U.S., INCLUDING KITCHEN APPLIANCES (220
VOLTS), OFFICE EQUIPMENT, TRUCKS, TRACTORS, AND MANUFACTURING
EQUIPMENT.  (MOZAMBIQUE DOES NOT PERMIT THE IMPORTATION OF USED
PASSENGER VEHICLES.)  USED AMERICAN EQUIPMENT PROVIDES EXCELLENT
VALUE FOR IMPORTERS, BUT CONCERNS EXIST ABOUT GUARANTEES AND
SERVICING ARRANGEMENTS.  A LOCAL SERVICE AGREEMENT WOULD GREATLY
BOOST SALES.

COMPUTER AND TELECOMMUNICATIONS EQUIPMENT:  THOUGH A SMALL
MARKET, THE DEMAND FOR COMPUTERS AND TELECOMMUNICATIONS EQUIPMENT
IS GROWING TO SATISFY PENT UP DEMAND.  INEXPENSIVE PERSONAL
COMPUTERS ARE THE PRIMARY INTEREST.  PRINCIPAL COMPETITION IS
TAIWAN FOR PC'S AND EUROPEAN COUNTRIES FOR TELECOMMUNICATIONS
EQUIPMENT.

GENERAL CONSUMER GOODS:  AGAIN, THOUGH A SMALL MARKET, THERE IS A
STEADY DEMAND FOR IMPORTED CONSUMER GOODS, PRINCIPALLY PACKAGED
FOODSTUFFS AND HOUSEWARES.  LARGE TRADERS DO A BRISK BUSINESS IN
THESE ITEMS AND MANY U.S. COMPANIES ARE BENEFITTING BY NOMINATING
LOCAL AGENTS TO REPRESENT THEM.  OF PARTICULAR INTEREST ARE
PRIVATE-LABEL PACKAGED FOOD MANUFACTURERS CAPABLE OF PRODUCING IN
SMALL QUANTITIES.