Concluding Tips in Trading Chemicals in Africa

28 October 2015

There are three main areas that importers need to consider for trading in Africa.

Manufacturing  Industry
Large industrial companies and specialist manufacturers will often purchase their requirements directly from producers. This is especially the case for bulk users of raw materials.

Most industrial sectors in African countries are dominated by a few very large, diversified groups. These groups are significant end-users of raw materials and capital outputs.

Each group will have their own procurement systems to deal with imports and raw materials. This could be an in-house import department or the existence of an import company for the group that operates independently to supply the parent company and other customers.

Wholesalers
Often where there is no specialist importer or distributor for a specific product, you may need to sell to a wholesaler.  A wholesaler does not usually have exclusive selling rights, but still plays a very important role in the distribution system in African markets, in particular in supplying independent retailers and informal operators.

Retail Chains
Large retail stores often buy products directly from an overseas supplier. This is most often the case when there is an exclusive line of products, such as a particular range of linen, clothing or kitchenware.

Having outlined the three main access routes to African markets you might also like to consider the following tips;

  • Being such a large continent, you may end up dealing with a smaller agent who operates only provincially. As they do not have the infrastructure or the capabilities to support operations in other provinces or countries, you may need to accept smaller trades from a variety of dealers before you can consolidate your business into more profitable quantities.

To begin with you might even find it useful to appoint an agent in each of the larger cities in order to cover all the major provinces. The larger companies who take on agencies will often have an office in each of the major cities in the region thereby making any agency agreement easier to control. For certain products and services, countries like Kenya, South Africa and the Ivory Coast are known as trading hubs for their respective regions. You might want to consider whether your agent should handle business for an entire region or whether he should concentrate on his country alone.

Understand the areas of need and high profit. Consult with the Chamber of Commerce or the relevant Embassy to establish what products are in greatest demand.

  • Educate yourself about Africa from sources other than the Discovery Channel. Research the country and culture of where you want to trade with. Knowing the history and business environment of a place can give you an edge in closing a deal.
  • Use a well established ratings agency to verify the trustworthiness and liquidity of any potential partner.
  • Use an online marketplace such as Spotchemi.eu. Not only does this website enable you to trade in any chemical product, at anytime, but all its users are verified as credible partners, so you know that you are trading securely.
  • Establish direct contacts with your business counterparts in Africa by participating in trade fairs and exhibitions, such as the AFRO-BUSINESS TRADE FAIR.
  • Add your company to the advertising Section of the Africa Business Pages. The Advertising Section will carry a full-page editorial about your company as well as two pictures of your company’s products. In addition to this, your company will also be provided with a direct link in the Business Links section.

Overall it is advisable to heed the three Ps of African business; Pensiveness, patience, and perseverance. Pensiveness (caution) demands self control and the use of common sense. Whilst patience is necessary for a slightly bureaucratic continent that often moves as slowly as the local elephants. But you must persevere (continue working) with politeness, as the rewards are there to be taken.