East Africa a strong growth market for exporters

Kenya and Tanzania are growing markets for high-end fashion and apparel as well as electronic goods, while the east African island of Madagascar offers numerous opportunities for imports from South Africa. African Arrow Logistics managing director, Deon Govender, told FTW that the logistics company was actively pursuing growth opportunities to these destinations, as well as other African markets. “The demand for goods from South Africa into Africa, particularly in the apparel and electronics markets, is growing as the continent becomes more affluent and developed,” he noted. While one of the biggest challenges for any importer is creating a footprint in Africa, the company has overcome this by establishing a strong agency and supplier network on the ground, he said. “Our agents and logistics suppliers – warehousing, airfreight, sea freight and road freight – are incredibly reliable and we have been very lucky not to experience consignment delays,” he said. A big challenge on the import side is the rand fluctuation, but Govender says additional charges are built in to longterm contracts with customers to absorb the impact of the currency variation. “We have good relationships with our customers and they understand that there will be variations in the logistics costs,” he said. As a specialist in high-end fashion and apparel, African Arrow also manages seasonal demand for goods where a quick delivery turnaround time is required. “The fact that we are a small, independent company counts in our clients’ favour because we are more flexible with regard to price fluctuations and rate negotiations,” added Govender. “We have cultivated strong relationships with suppliers and can phone around and negotiate the best price on the market according to our customers’ needs,” he said. He conceded that rates would always be a factor, and more so in a tough economic climate, but that good relationships and reliability would always win out in the end. INSERT & CAPTION The demand for goods into Africa, particularly in the apparel and electronics markets, is growing. – Deon Govender