APPENDIX B.  Data on Best Prospects

 Comments

 1.  Agricultural Machinery and Chemicals:  Agriculture remains
 the sector most likely to provide growth and increased income in
 Zambia.  Planted area for most crops is increasing each year.
 Years of under investment in the sector has created a pent up
 demand for equipment.  Relatively low yields and problems with
 pests and disease create markets for fertilizers vaccines,
 pesticides and other products.

 2.  Agroprocessing equipment:  The increased focus on
 agriculture production and the restructured economy which favors
 manufacturing which uses domestic raw materials has increased
 the demand for agroprocessing equipment, especially in food
 processing.  The Commercial section of the embassy gets a steady
 stream of inquiries about food processing equipment.  Packaging
 is a clear need in the country.

 3.  Computers and Accessories:  The U.S. is clearly the first
 choice source for computer equipment and an area where we are
 considered to be most the competitive.

 4. Medical Equipment and Supplies:  The health sector is
 garnering the most donor support of any social sector.  Local
 businesses see a good market in pharmaceuticals and medical
 supplies.  The AIDS epidemic is creating a high demand for
 health services in urban areas.

 5.  Mining Equipment:  After many years of little development in
 the mining sector, exploration is increasing and a number of
 expansion projects are under consideration.  Reform of the
 mining code and the addition of mining to the investment code
 should open up the mining sector to more activity,
 reinvigorating the market for mining equipment.

 6.  Used vehicles: A variety of Zambian businesses claim that
 used and/or reconditioned cars, trucks and busses would find a
 ready market in Zambia.