doing business in west africa vanessa adams usaid trade hub

7/31/2019 Doing Business in West Africa Vanessa Adams USAID Trade Hub

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USAID West Africa Trade Hub

Vanessa AdamsDirector

October 5, 2011

Doing Business in West Africa


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1. Great opportunity; high standards of doing business

2. Fierce competition (bigger capacity / lower costs)3. Regulations are strict; price of non-compliance is high

4. Identify, clarify, document buyers expectations

5. Communicate, e-mail within 24 hours

6. Specify terms of sale, deadlines, quality specs

7. Deliver on time and exactly as ordered

8. Follow-up, address issues

9. Buyers know each other, talk

Keys to accessing the US Market


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Checklist for Exporting under AGOA:Non-textile Goods

CommercialInvoice from

Producer

Declarationmade byBroker

Certificate ofOrigin obtained

by Producer

Goods sent toCustoms for

Inspections byProducer or Broker

Customs gives

Clearance forShipment

Exporter TransmitsOriginal

Documents toBuyer


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Tips ABC is backbone of sourcing

A = Attractive New products B = Better Quality products C = Cheaper products

Right Certifications

Consistency in supply of right quality& quantity at the right time

quality includes food safety, consumer health, and sustainableproduction with care for the environment, animals and humanbeings

Increasing demand for Fairtrade and Organic produce purpose of Fairtrade is to help disadvantaged farmers acquire

and retain export markets more expensive product, but consumers willing to pay a premium

to ensure better wages and social conditions to rural poor

Transport: sea-transport preferred when possible


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Requirements for Entering the US Market

For Fresh produce

ISPM/ GlobalGAP

Plant Health/Phytosanitary Requirements: sanitationpractices to avoid food-borne illness and maintainfood safety

Environmentally responsible production practices

Pesticide residue regulation: MRLs

Traceability

Labelling Worker Treatment
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FDA Requirements

In 1990, the Nutrition Labeling and Education Act

went into effect. The USDA and the FDA designed therequirements so that consumers would have usefulinformation about the food they eat.

According to the Nutrition Labeling and Education Act,

all food labels must contain the following information: Common name of the product Name and address of the products manufacturer

Net contents in terms of weight, measure or count, and: Ingredient List, that is listing the ingredients in descending order of

predominance and weight

Nutrition Facts each package must identify thequantities of specified nutrients and food constituentsfor one serving


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In the USA, people consume withthe EYE

Packaging is very important!!


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But it is not

only theOutside thatcounts!!

Packaging Sells!

Buyers do formopinions aboutcontents based on

packaging appearance


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Marketing Tools

Top Quality product +

sustained quality standard asagreed upon

Consistent supplies of volume

High visualappearance/packaging

Adhere to specifications ofbuyer

Communicate Honestly


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Home Dcor

NYIGF, ICFF, High Point, Ambiente

(Germany), Maison et Objet (Paris) Shea

Natural Products Expo (East and West),In-Cosmetics, Sustainable CosmeticsSummit, Cosmetics Suppliers Days

Cashew/ Specialty Foods

Peanuts and Tree Nuts ProcessorsAssociation, Fancy Foods Show, SIAL-Salon International de lAgroalimentaire,

ANUGA (Germany)

Trade Shows

www.africancashewalliance.org

www.africa-now.org www.globalshea.comwww.wassda.org

www.tastafricanow.com

www.watradehub.com


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Rechanneling: Cashews

2.5 million ofsmall farmers$0.20-0.60/kg

capturedlocally

Warehousing and drying

locally

Cracking,sorting,grading

Investmentneeded

Channel 1 (65%)raw exports

Value addedoffshore (India,

Vietnam)

Channel 2kernel exportsValue added

offshore (Europe)

Channel 3 - Localprocessing creates higher

wage jobs

Investment needed $13-17/kilo endmarket priceNo source

differentiation

I i V l d V l


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1-4 million(women) small

farmers50% export-dependent

Consolidation and

storagelocally

Localextraction(artisanal,industrial)

Investmentneeded

Channel 1 ~70%raw exports

Value addedoffshore (Europe,

Asia)

Channel 2~23% stearin

exportsValue added

offshore(Europe)

High valuefinishedcosmetic andfood product

markets

Increasing Value and Volume:SheaChannel 3 - ~7% Local

processingCreates higher wage jobs

Investment needed


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Untapped Market: Specialty Foods

$36B U.S.market

>20%/yeargrowth

High margin

Small localmarkets

No valueaddition

Small localmarketsLimitedmarket

potential

Millions ofsmall

farmers

Local processingcreates higher

wage jobs

Packaging, shippingcreate further

economicopportunities

R i i h Li k A l


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Repairing the Links: Apparel

~15 millionsmall

farmers inWest Africa

Local value additionSignificant investment

needed

Supports regional verticalintegration

Local value addition and jobcreation 200-250K jobs at

peakNeed access to competitiveinputs, certifications, buyer

linkages

$60B Market in U.S.Strong demand fororganic and ethical

sourcing


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Financial Requirements Trade Finance

Working Capital Mid/Long Term Investment

Capital (joint ventures,patient capital, social

equity) Business Plans Financial Structuring

Negotiations, Terms, Rates

Management Training

Product costing andpricing


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Success Story Clarisse Djionne


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www.watradehub.com
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