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Factor out the export risks

17 Feb 2003 - by Staff reporter
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‘Ensure that buyer takes
responsibility from arrival at destination
airport’

AFRICA HOLDS a wealth of opportunity for the South African exporter with volumes increasing dramatically over the past two years, but caution should be exercised in insurance coverage, says Riaan Grobbelaar, managing director of short term insurance specialists Prestmarine.
“Although Africa has developed as a major target market, especially for manufactured goods, the challenges in dealing with this market should not be overlooked,” he says. “In some instances the lack of proper infrastructure and handling facilities, the delays in customs procedures, the problems surrounding communication and corruption, pose a very real risk and threat to the business of the exporter.
“Exporters sending consignments to African destinations can eliminate at least part of the risk by ensuring that their respective buyers take full responsibility for the cargo from arrival at the destination airport or port.”
Prestmarine’s marine claims manager Leonie van Rooyen points to Luanda as the airport presenting most problems at the moment, even more than those experienced in recent times at Harare, which enjoys a low rating with local handling agents.
She quotes one instance where there was a delay in the customs clearance of several containers of beer that created the opportunity for local residents to empty the containers. In another case specialised medical equipment was transported from the airport to final destination on top of a truck filled with vegetables.
“These are just some of the risks exporters are faced with,” says Grobbelaar. “The value of ensuring that buyers take full responsibility at the delivery end of the cycle can never be too highly emphasised.”

Leonie van Rooyen É medical equipment was delivered from a truck loaded with vegetables in Luanda.

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