Mike Hodgson, projects director for
Macadams Baking Systems, shared some of his
top tips for exporting into Africa with FTW’s
Liesl Venter.
1. Research the market you want
to export to electronically first.
2. Once you have this research in
hand find an organisation
locally that you can interact
with and draw information
from. Which one and how you
do it is up to you.
3. Make contact with the
research information that you
have gathered telephonically.
4. Target only one market at
a time. Don’t try to be
everything to everyone at
once.
5. Target a market you
can communicate with and
where you don’t need
translators and interpreters.
In other words a market
that you are closest to in terms
of culture. It will make
understanding that market so
much easier.
6. Make the effort to understand
the logistics nightmare that
is exporting into Africa. Each
country is different. If you
select the wrong country
and market for your product
first you will be disheartened.
Know how you are going to
deliver your product.
7. Once you have done all of
this visit the country. Know
that you are going to have to
go back again. We budget for
at least three visits per country
per year. We have been
researching Egypt for more
than seven months and are
now heading there for a
week-long visit.
8. Be prepared to put down
capital to get a return.
9. Find a local partner
10. Commit, commit, commit.
Don’t expect because Africa is
booming that your products
are just going to fly off the
rack. Like any new market you
have to be committed to
working at it.
11. Don’t take too much risk.
12. Make sure you have
payment secured before
your product leaves South
Africa. If they can’t pay you
there is no business. Ensure
you have a policy that speaks
to payment in your contract.
None of our product
leaves South Africa
without guaranteed payment
or an irrevocable letter of
credit.
