In times of economic meltdown, planning which markets of the world to target for exports, the continent of Africa doesn’t always come top of the list. In fact, rarely.

Part of that is down to preconceived opinions about the continent. Constant images of war and starvation don’t always make a business believe there are riches to be earned from business dealings on the continent.

However the truth is that the economic situation in Africa is changing:

• Africa hosts the majority of the top ten fastest growing countries in the world.
• The IMF estimates that economic growth in sub-Saharan Africa will be over 5.5% in 2019.
• The World Bank believes that most African countries will reach “middle income” (at least US$1000 per person a year) by 2025 if current growth rates continue.
• Nearly half of the labour force in Africa is expected to have some secondary-level education by 2020.
• Africa has around 98 million people with household incomes exceeding $5,000 meaning they can direct more than half of their income towards discretionary spending. It’s expected that this figure will reach 128 million by 2020.

All of a sudden exporting to Africa looks a much rosier prospects than in the past and already countries such as the US, Brazil, China and India have increased their business dealings with the continent. The UK and South African Governments set targets to double bilateral trade in the next five years.

The main imported commodities are:

• Machinery and equipment
• Chemicals
• Petroleum products
• Scientific instruments
• Foodstuffs
• Tyres & Batteries
• Automobile Spare Parts
• Cosmetics
• Stationery Items
• Household Electronics

While Africa faces tremendous challenges on the road to integration into the world trading system, there is more to Africa’s trade performance than meets the eye. Many African export sectors have outperformed world market growth. Champions in the African export portfolio include cut flowers, frozen fish, t-shirts, women’s trousers, footwear and transistors. These cases illustrate that Africa can compete.

How To Export To Africa

In many ways it’s pretty much the same as making plans to start exporting goods to any country in the world. You need to start off by doing some research to find out if your product compares to what is currently being supplied in the target market. Find out who your competitors are and what services they offer as well as their pricing schedules. Look at duty structures, freight rates, currency fluctuations and then you will have a better idea of whether you have a marketable product.

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