How To Start Exporting from Zimbabwe

If any Zimbabwean company or individual is looking to turn a quick profit, then exporting is probably not a good idea. It takes time to build up a successful exporting business, so potential or new exporter should make sure they are prepared for a long-term commitment exporting. There are some important stepping stones which need to be carefully laid.

Choose Target Countries for Export

One has to evaluate which country to export from Zimbabwe and whether there is adequate demand for intended goods. This evaluation has to take into consideration the distances involved for movement of goods, cultures involved and the language differences. It is relatively easy to export to those countries where there is a direct connection in terms of road, rail or air transport, such as South Africa, Zambia, Botswana or generally SADC region.

Make Contacts and Set up Sales and Distribution Networks
The best choice for a company intending to export is to partner with parties who are already active in the country in which one hopes to sell own products. This can also be accomplished through appointing selling agents or distributors in the target country. In order to establish such a selling network, one should use avenues like trade fairs or shows or foreign missions to meet such potential partners. Dealing directly with a final customer in a foreign country is often risky, when it comes to payment and collections for the delivered goods.

Understand the Fundamentals of Zimbabwean Export Laws
To be successful in exporting from Zimbabwe, one has to be avoid making unnecessary rough patches by avoiding breaking the laws of Zimbabwe especially:

• Declarations forms and accompanying documentation
• Repatriation and use of the foreign currency earned from exporting
• Rules of Origin and the related Regional Bilateral Trade Agreements

Whilst these first posts are somewhat theoretical, subsequent posts will provide more details on the raised points, like the export laws, participation of trade fairs, export marketing, existing trading agreements between Zimbabwe and its trading partners, special arrangements for export of specific controlled products etc.

Look for Export Orders
The best choice for a new company to exporting is to partner with someone who is already active in the country in which you hope to sell your products. This can be accomplished through appointing selling agents or distributors. In order to establish such partners, one should go to trade fairs or shows to meet such potential partners, who are aggressive enough and offer reasonable selling commissions. Dealing directly with a final customer in a foreign country is often risky, that’s why it is recommended to find a locally based of foreign partner to break into the market. Finding orders needs a lot of effort, as the exporter can be ignored several times and in some cases, the potential foreign buyers demanding unreasonable trade or cash discounts. More than often samples are needed for testing before orders can be placed. Such samples can be distributed through the agents, during trade fairs or partners.

Fulfil the Export Orders
Once such hard-won orders have been secured, elements of quality management become important. The exporter should consistently and persistently produce goods which meet the specifications of the selected samples. This is where most exporters lose it; they compromise on known quality levels to cut on costs. Such moves cannot go unpunished by competition. Later posts will highlight more of the element of QUALITY. Besides the production of a product in accordance with specifications, there are other factors which are of paramount importance and these are:

• Time taken to deliver the product – it should be within the agreed time
• Packaging – should protect and enable safe handling throughout the trip to the destination country
• Complete the customs or clearance procedures

Why should a company want to export?

Reactive or Proactive Exporting

All Zimbabwean companies which have so far sent their products to international markets, either ventured into exporting for proactive or reactive reasons. Proactive exporting entails planning for the activity and making some necessary investments in resources and time. Reactive exporting is a result of being pushed by circumstances, especially in the Zimbabwean domestic market, to go into exporting without careful considerations. Zimbabwean companies who proactively plan to participate in exporting business are, in most cases, better positioned than companies that simply react to environmental factors. In this blog, I recommend all the companies SMEs or large corporate companies to adopt the proactive exporting, as the approach breeds sustainable export development. If one company simply reacts, mistakes can be done, as the managers will be pressed for time and resources.

Benefits of Exporting

There are several benefits of successful and proactive exporting and these are, but not limited to, the following:

• The Zimbabwean market may not provide the opportunity for growth that the company needs, as the products may not be fast selling. There may need to raise foreign currency to increase your plant’s capacity. Developing export markets is just as important as developing new products for growth purposes.
  
  
• Participation in an international environment may sharpen on Zimbabwean companies’ innovative skills and open up opportunities that might never come your way if you limit yourself to the Zimbabwean market.
  
  
• Zimbabwean companies need to diversify their markets. They should not live with an illusion that everything that they produce will be absorbed forever by the Zimbabwean market, especially with the current excess demand. Any Zimbabwean company should be looking for the increased security they can achieve by spreading potential risks over a variety of markets. Putting all eggs in one basket can expose companies to more risk, but by selling products in a number of international markets, Zimbabwean companies can reduce their exposure to economic downturns in any one of the markets including home market.
  
  
• Operating in an environment of excess demand of some goods, which is characteristic of the contemporary Zimbabwean market, may result in production of sub-standard quality goods. Zimbabwean companies need to ensure that they expose their markets to international competition before the competition comes to the home market, by exporting their products.

Having said all of this, the management of the company should not simply assume that the successful Zimbabwean product will start selling in any international market. There are many more factors which need to be considered. Find out how we can help each other to build your exports by identifying these other factors, in subsequent posts.