Trading with Africa, Risk or Reward?
Author: Admin

In recent years, Africa’s foreign trade has been increasing rapidly following recent government reforms encouraging the development of business. With an unsaturated market and few competitors, many foreign companies place Africa high in their priorities.

However, there are a small number of fraudsters who make trading with Africa too risky for many businesses. Despite the huge opportunities Africa offers to traders, this small minority are responsible for holding back African trade for many companies.

What’s your opinion?
Vote here:
Africa in the forums:
Risk?
Rewarding?
 

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Re: Re: Re: Trading with Africa, Risk or Reward?
by nyemade_constance on 29 Aug 2008 12:38

Quo

Quoting from [Mickey Mouse]:



Replying to [Admin]: I think trade with Africa, risk accompany with the reward.[em17] I really do appreciate the answer given. I got the info that i needed from the trade commission where i reside.

This statement brings to mind the adage: 'we don't trust you because we cannot understand you or your culture'. One must be very careful with such categorisations. Having read the mixed responses to this statement, I beleive that it is only reasonable to admit that some may be correct whereas others are, well, lets say baseless because there are no comparisons or examples other than simple opinions, which as we all know are always biased by definition.

Irrespective of the above, a few highlights should suffice here to make my point. Take West Africa and Nigeria for instance, less than 5 years ago, a Chinese construction firm went to Abuja to establish construction business and could not get a single job for over 3 years. It promised to build a 7 storey building in 7 Months, after successfully bidding for it. It stated that if the building was built in more than 7 Months, the owners will not pay a single cent for it. Not only did the Chinese firm construct the building in 6 Months. The owners were so satisfied with the job that the Chinese construction firm needed NO references. Now, that firm cannot take additional work because they fully booked until 2020.

Doing business is like any other activities. It requires your diligence, research, serious commitment to tasks etc. If a business man buys a company without doing diligence. Who is to blame? The business man cannot turn around and categorise all Chinese as being crooks or can he or she, later claim that he or she was duped. Simple exercises are less costly, if we only take the time to do what we should have done in the first place. Further, simple caveats are common sense. If a purchaser asks that you send samples. Fine, send 1 or maximum 2 pieces. Entice them with a discount, if you cannot send free sample. Advise them that if they purchase same sample at discounted rates, they can get a free product upon receipt of their order. Having done business with Africa for over 17+ years, I do beleive in one simple truth, Africans don't like being outsmarted. Anyone who thinks they can outsmart an African today will have to pay BIG somewhere down the line. I know this statement will open 'Pandoras box', but it is absolutely true. Cont.


Re: Trading with Africa, Risk or Reward?
by moreen20092 on 10 Mar 2009 18:45

      It is just like a coin has two sides. Trading with African countries has both the risk and the reward. In my opinion, the reward is more than the risk. With the development of the globalizaion and the advanced technology, our distance is not a problem at all. But we still have to equip ourselve with sufficient knowledge of Africa, ranging from law to the local customs.

Re: Trading with Africa, Risk or Reward?
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