How can an African company export internationally?
Co-written by: Alfred Fadugba (Stakgroup Nigeria Enterprises)
With populations booming all over the world, basic inputs and commodities are in higher demand than they’ve ever been. This is especially true for products made in Africa.
With very large percentage of the working class working in agrarian and other produce bearing markets, African exporters have an advantage of being able to source and sell many products at lower prices than other developing countries.
Despite the large demand for products worldwide and the many products Africa produces, many Africans have a hard time selling their products.
One of the biggest factor working against those in Africans making deals with international buyers is trust.
There are 3 key ways that exporters can develop heightened levels of trust. Through certifications, transparent operations, and relationships.
Certifications
Certifications are very important for gaining trust from buyers to whom you intend to export to. Though there are edge cases of individuals being able to export without certifications, gaining certifications are generally as necessary to export as a college degree is to gaining employment.
There a few basic requisites to be capable of export. Namely, registration with the Corporate Affairs Commissions (CAC) and the Nigerian Export Promotion Council (NEPC).
Besides contracts with the buyer, there are a few kinds that enable international trade: A completed Form NXP issued by Nigerian Custom Service, Relevant Certificates of Quantity, and Shipping documents such as the Bill of Exit (BOE) and Bill of Landing (BOL) are necessary for Exporting.
It is highly recommended to apply to join your state’s Chamber of Commerce. Groups such as these often have records of enforcing and adhering to international standards.
Citing educational backgrounds, trainings, and materials that increase your knowledge also help to reinforce trust from potential business partners.
Transparent Operations
Another important component of establishing trust is making your operations transparent and knowing what you have on ground.
In the words of Nigerian exporter Alfred Fadugba, CEO of Stakgroup Nigeria Enterprises, most exporters are not prudent about what is happening on the farm.
If an exporter wants to increase the success of their business, they must develop a model of checking in on the farm, the source of their produce.
If you are sourcing cashew nuts locally, the interaction with the farmers should not be restricted to the market. The best exporters take the time to understand the challenges they are facing and how they can be of help.
Sometimes it means improving the quality with fertilizers, pesticides, outsourcing education to teach better practices. In order to allow the subsequent produce each year to be higher and improve profits, it’s important to invest in your supply. In the end it’s important for assuring the quality and improving production, but also so that those buying from you can know that you understand what you are supplying.
If someone is buying from you, they need to be assured that you will have steady supply and have back-up plans in the case something goes wrong.
Alfred cites that several exporters stay in their offices and do not get involved with the locals. You cannot expect things to always work out perfectly without understanding of the place you are collecting from. Exporters need to roll-up their sleeves and get involved.
Not only do operations need to be transparent, but also the final logistics. Particularly in the first shipment to a new buyer, it’s wise to be overly transparent to give buyers more assurance and promote trust. Due to fraudsters, buyers can be skeptical that a supplier is out to short-change them. For this reason, when loading containers with produce, you should not just take pictures of the filled container.
You should begin loading and take a picture of the the first layer, then the 2nd layer, and so on. You should take pictures of yourself or your ID, with the numbered container. Exporters should be up-to-date with information that can potentially affect them such as pricing, grade of produce required, and ensure that specifications are met. Suppliers must always remain in pursuit of more information.
Buyers should know that you have full-knowledge end-to-end of assuring the quality and timeliness of the products and trust that they are getting the full amount they are owed.
Relationships
Having strong references is one the most important ways of establishing trust.
The age of technology can sometimes cloud us from seeing how the world actually works. Exportation deals are rarely formed by a technology matching a seller to a buyer in the manner that a passenger is matched to a rider with Uber. A buyer listing a product online with all the credentials and attractive prices, may still struggle to hear any feedback. When buyers enter business with sellers they are making a significant financial and reputational commitment.
Having many credible people vouch on your behalf is important, but for buyers, a trusted referral from a friend matters more than 100 reviews from people they don’t know. If your friend trusts their driver, you would probably trust them too. True human relationships triumph even in marketplaces of scale.
It may seem like a tall task to do this when buyers live in different continent. The best way to work towards building relationships is by finding and working with those that have contracts with international buyers. On ground you can go to trade shows, conventions, seminars, and conferences within your industry. Additionally, within your local communities and companies registered in the Chamber of Commerce and you can find people that are working with international buyers or even family members based overseas that can facilitate connections.
Due to having a database of thousands of companies in different industries, Releaf facilitates these kinds of connections for African businesses.
Building real relationships and demonstrating your track record of execution can lead to this new connection giving you a trusted introduction to a buyer abroad. Even if this buyer is not your customer, you can continue this cycle in order to reach more connections that may have interests in your products.
For more support on building these relationships, visit Releaf at www.releaf.ng. We are happy to assist.
