|
The winds of change will hopefully be blowing toward Africa for local exporters after an inspiring earful from top exporter and motivational speaker Mark Mead, who gave a Presentation on "Selling into Africa" at the Point yacht Club last week.
Mead grew up in England and emigrated to South Africa where
he now runs a successful export business with a client base of only African
countries.
"I grew up in England but have lived in South Africa
for most of my life; this country is my home. In my opinion there are a lot of
people out there who view Africa negatively as a continent torn by war and
instability. But I have experienced another Africa that is extremely positive,
with immense potential for growth.
'A lot of South African businesses don't like to go into
Africa because of negative thinking, but Africa is unique and if you offer a
service the potential is unlimited. The bottom line is, this is where business
is today. Africa is not for the faint‑hearted, it's competitive and you have to
put yourself out there.
"I'd rather do business where the countries are two and
three hours away by aeroplane and if something goes wrong you're just around
the corner," said Mead.
He said a reason for South African companies' reluctance to
export to Africa was the state of the rand.
"In South Africa we've become so accustomed to a
currency that is constantly weakened that it is now difficult to escape this
comfort zone and adopt a more positive attitude towards the rand. Could it be
that exporters are now the losers of the massive appreciation of 2001 and
importers and consumers are getting their own back?
"A lot of people say export is tough but it's not. A strong
rand is just the same as a weak one, in my opinion. My company is doing more
business on a stronger rand. Price is only part of the equation, it's about the
bigger picture. In my opinion, 15% of any export market is price related and 85
% is about brand awareness and service.
"Exporters are the future of this country because we generate
growth. We must realise that South Africa is striving to be a global free‑market
economy," said Mead.
According to the Department of Trade and Industry, South
African exports to Africa between January and June this year amounted to R22.6
billion, accounting for 16.2% Or total export trade. Exports to Europe and
America in the same period accounted for 46 % of our exports valued at R75
billion.
Mead said that a lot of local companies failed in Africa
because they were too greedy and wanted to make quick profits.
"If you want to make a success of your business in
Africa you must do business with customers who build on the foundation of
social responsibility and ensure that you and your customer share
rewards," said Mead.
He also advised companies to use reputable transporters who
had a good relationship with clearing/freight agents at border posts and to
ensure that they had fully fledged export departments that specialised in
export/transport transactions. He said they should be sure to keep copies of all
export documents.
Latoya Newman
|