Wednesday, July 30, 2008

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

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