Exportation is one of Africa’s gold mines which are largely ignored.
The internet is obviously full of uncountable tutorials and articles about how to start importation business in Nigeria, Ghana, and South Africa etc.
But the truth which most of those writers do not tell you or maybe forget to tell you is this…. Exportation could be more lucrative than the popular importation business.
Also that the process is not as difficult as other people will make you think it is or scare you to believe it’s not possible for a small beginner.
Do you know that you can start exportation business in Nigeria, spending more time in your room or office using the internet? And less time getting actively involved in the whole process?
The internet has made a lot of things easier for us to accomplish!
Except for some few and very essential things which require your presence, most of the things are that which can be done with the use of a good smartphone or laptop from home!
As far as international trade is concerned, an exporter is king over the importer!
So what is exportation?
Exportation is the process of sending goods (for sale or exchange) to other countries of the world.
Exporters are categorized into direct, indirect or middlemen.
In exportation, a direct exporter is someone who exports goods outside his/her country by dealing directly with the importers of the target country.
The exporter in this case is responsible for shipping arrangements, method and means of shipment, means of which the payment is received, damage of any kind etc.
Although you will need some experience in exportation to start in this segment, but with an undiluted guide from a mentor and training from trusted trainers you have less or no problem.
Indirect exporters are other battalions in the exportation business.
They are called indirect exporters because unlike direct exporters, they don’t deal with their clients directly. There are people who do that for them.
Those people are specialized in what they do. They connect with prospective buyers abroad, and make arrangements plus lots of other processes sometimes even getting the exportable crops or products from local suppliers to you.
They are called middlemen and they constitute the third segment of exporters.
They make their money by getting paid after every successful exportation process which last for about 4 to six weeks at the average.
Choose your category before you proceed.
Alright now let’s look at the…..
Benefits of exportation
The array of benefits which the exportation business has is relatively high and endless.
However, I am going to highlight few most interesting ones out of many of its benefits.
Exportation business exposes you to untapped markets
One of the joys of exportation business is that it automatically exposes you to new untapped markets around the world, most especially when you have an outstanding product which cannot be easily found elsewhere on the globe.
Exportation grants you that opportunity!
Or still, when you have a raw material that is very rare abroad but much available in your country (i.e. Nigeria), exportation gives you the chance to explore one or more markets out of the many markets that are demanding such a raw materials which in most cases the exporters of your country are yet to tap.
Exportation increases your sales
As an exporter, you are not limited to the volume of customers you are to serve. There is no limitation to the volume of sales you can make too!
Exportation presents your products to many and willing buyers outside your country which results in lots and lots of sales from them.
In most cases, you will record more sales of the exported products to be 2, 3, or even 4 times the quantity of sales you make in your local market.
Exportation increases your profit
More profit is equal to more sales, you know that right?
The math is as simple as that, no boring formula needed.
As your sales gets high, your profits are propelled higher too. Exportation increases your profit from the average to a solid income subsequently.
Let me tell something interesting!
Do you know that most of the local products here in Nigeria or other countries in Africa sell for more than their worth when exported abroad?
This is something unknown to a lot of people, and most exporters keep this as a secret!
For example you can get 20 metric tons of cassava from village suppliers for #100,000 (just an example not the actual cost) and fortunately sell it in Europe for 2 or 3 times that amount of money!
It depends on the country or products, every product has a country where the demand for it is at its peak.
Therefore in such countries, expect to disbelieve your ears at hearing how much those products could cost at that end of the world!
Yes! That’s how it goes….
Scarcity creates value, and indeed exportation is great for filling in the gap for such scarcities.
Exportation enables you to conquer low growth in the local market.
Unlike doing business in your local market, exportation gears you up for unlimited growth in business generally.
The low-demand nature of your local market (i.e. Nigeria market) which is often caused by excess availability of that product is obviously a threat to your business, simply because it can cripple your business from growing to its apex.
Exportation eliminates such a threat off your business.
Exportation is a powerful competitive advantage
Personally, this is one of the best benefits of exportation which I surely know of.
As an exporter you beat your competitors hands down, just like it will happen when Samson was to fight a man like Zacchaeus!
Am laughing here…
Oh tell me how else could I have described this to you?
Due to the severe nature of the competition which characterizes your local market, one of the best competitive advantages you stand gain over your opponents is exportation!
Take for instance, selling cocoa in Nigeria means competing with so many other sellers while exporting cocoa to the United States may mean very little competition
I think the above points are self-explanatory!
There are many more advantages or benefits of exportation, but like I said above, I will just highlight few important ones, so there you have them.
So let’s forge ahead.
Well like most things, exportation has its own disadvantage or challenges rather, but you should know that those challenges should not scare you but motivate you toward a strategic planning of developing as many options as possible.
Below are the most common challenges experienced in the exportation business.
- Lack of adequate capital. Exportation business in Nigeria (or elsewhere) is capital intensive. However, you can overcome this challenge by reading our tutorial on how to get investors for your business or discover powerful secrets in this book about how to get capital
- Finding importers from the country you wish to export your goods to.
- Hassles of obtaining exportation license in Nigeria.
- Receiving payments.
- Port routines and
- Shipping arrangements.
In few minutes away I will tell you how you can find help to come out successful whenever you engage in such challenges.
Ok you are now saying…..
I want to start exportation business in Nigeria, but I don’t know what products to export.
Yes you are right for asking, because you need to know the products that are of high demand abroad.
This will enable you to take care of one of the main steps you must cross, which is deciding what to export.
I have got your back covered on this. Below are few among the major non-oil exportable products in Nigeria and Africa as a whole.
Used for producing tea flavor, seasoning, food spices etc.
Countries that buy ginger are USA, Sudi Arabia, France, and UK etc.
Costs about #250,000 to 300,000 per metric ton in local markets and sold in US Dollar from about 2500 to 3500 per metric ton.
There are factors which can affect the price.
Used for the production of gun powder, liquid purification, artistic work, and industrial fuel etc.
Countries that buy it are China, Greece, UK, Germany, Spain etc.
Local price in the Nigerian locality is about #400,000 for 23 metric tons at the average which can fill a 40 ft. shipping container.
Costs an average of #600,000 to export a container of charcoal and can be sold for roughly #800 to 900,000 in those buying countries.
And a similar statistics for other exportable products like;
- Cashew Nuts
- Dried Hibiscus (Zobo)
- Gum Arabic
- Sesame Seed
- Lead Ore
- Zinc Ore
And lots more…
You can bet it that most of the above mentioned products are found cheaply and availably across Africa.
What do you need to start exportation business in Nigeria?
Alright, all you need to start isn’t anything new or complex. These are some legal requirements you need.
- Undergo training.
This is a very important step which is very essential.
To start exportation business in Nigeria, you need to acquire training in order to know and understand the basics/fundamentals of it all.
Read books written by a successful, licensed and trusted exporter!
Be careful not to be defrauded by some online self-acclaimed exportation gurus with untrusted base, suspicious offers and questionable attributes.
There are a lot of training centers where you can be trained in few weeks or days and you are good to go.
For Nigerians, most of these training centers are found in Lagos as it is the largest gateway for both exportation and importation of goods.
If you are outside Nigeria, ask around you will definitely find where such training are delivered.
A nice online forum for learning and meeting other exporters is this
- Register your company or business and obtain the certificate of incorporation (COI).
- Tax certificates.
- Obtain your country’s license for legal exportation.
- Obtain license from the target foreign country.
- Insurance covers.
- A registered office.
- A website (very important for every 21st century business)
And that is it!
Getting all these things mentioned above is not very difficult.
You just need guidance and you are good to go.
It’s the website of Nigerian export promotion council; it’s a website worth visiting.
Exportation business is highly lucrative, to succeed in it all you need to do and to have has been given to you in this tutorial. Don’t forget that it has its own risk too, but not as enormous as unbearable, with a mentor and proper guidance you are sure to cross over to this other side of business.
Finally, keep it in mind that every business requires persistence, determination, strategy and above all proper planning.
Remember, nothing works for you without you taking an action!
We love you!