Developing Market Access for African đ˘Exports...
Are you looking to export from Africa?
Let me provide you in one sentence the summary of the current landscape and why African exports to global markets are low:
Global Buyers cannot find or locate eligible African Exporters and African Exporters cannot find Global Buyers willing to work with them at current capacity levels...
Now let me deconstruct the above blanket statement that I just made because it is heavily loaded and represents a complete over simplification of an highly complex issue.
Africa has been powering the rest of the world with its raw natural resources and extractives for centuries. The current landscape is considered to be highly exploitative... one reason for the exploitation is that many players that move in to close gaps in the African supply chain do so with zero transparency and traceability.
The price structures and markups along the value chain are often considered to be unethical. One Diamond miner once walked me through their entire process. He shared with me how his attempts at raising wages for his miners in Africa where sabotaged and shutdown - "it is an organized system..." he explained to me - one that is focused on keeping the cost of extracting diamonds in Africa as low as possible so that they could maximize their profits once it is auctioned off in the global supply chain.
I have many more stories but for today I want to focus on solutions....
Global Buyers must be differentiated from Market Aggregators also sometimes called "Off-takers". Global Buyers are the final "users" of the commodities - they need these products to either input into their manufacturing processes or deliver in some form to their final customers. Either way;
- They have standards that they will not lower for anyone
- They typically would not do the work of aggregation because they have a business to run
- They seek to maximize their engagement and profits
- They seek partners with tried and tested profiles
- They only make decisions that make business sense for them
- They will not come into the sourcing "market" - the market must find them i.e. come to them.
- They have buying options and have cost/quality considerations and always seeking a "deal".
African Exporters needs to operate in a highly organized fashion because global Buyers only work when engagements are streamlined. The process for working with exporters to secure market for their products are lengthy. If you need such support you can complete our vendor management application here - https://www.nazaru.com/vendor-management
With disruptions in the global supplier chain Buyers are now seeking new sources of supply and this represents the perfect time to expand your reach.
Did you miss my weekly live show this week?
I interviewed Kyle Schulz, Executive Vice President of Business Development and Global Strategy at the World Business Chicago - a Public-Private, non-profit partnership that drives inclusive economic growth and job creation, supports businesses, and promotes Chicago as a leading global city. đş Watch our engagement here: https://www.youtube.com/watch?v=oykeDFS-R3o
Nazaru LLC. is a U.S.A based company that connects you to African markets through product distribution, market insights, trade events, consulting and training. We convene the acclaimed Trade with Africa Business Summit and power the Trade with Africa® Network. We are available to help you build your winning Market Entry strategy. Email us at info@nazaru.com For more information about Nazaru LLC. visit https://www.nazaru.com/about-us
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