In exports, it is increasingly important to carefully evaluate "emerging" markets in order to balance the internal stagnation that affects trade in Europe and to protect oneself from the harmful effects of tariff wars.
For this reason, I asked Federico Chigbuh Gasparini , content creator and moderator of vadoinafrica , some questions to understand if there are concrete possibilities in this immense continent for Italian SMEs.
Below are the questions and answers, and at the bottom of the page a video that tells a successful experience in Senegal.
If you are interested in the topic, comment on the post (even with questions) that I will ask in a further in-depth webinar with Federico
1) What characteristics must an SME have to be able to sell in Africa?
First of all, an SME must understand that Africa is a continent of 54 countries with more than 2,000 languages.
After that, an Italian company that wants to sell in Africa, in addition to having already had some experience in foreign trade, must be ready to send a delegation or a person on site to establish human contacts with the various prospects.
In Africa, those who will do business with you first want to look you in the eye. They want to evaluate you to understand if you are trustworthy and if you treat them as an equal and not as a chicken to be plucked.
The European entrepreneur who goes there boasting of his superiority complex increasingly comes back empty-handed and with a lighter wallet.
Also, a very important thing to know is that many African entrepreneurs do not use email for business communications but WhatsApp .
So using emails to communicate with him is a waste of time and a cause of great frustration since he either won't respond to you or will do so with a serious delay.
2) What are the most interesting sectors at the moment?
From the daily analysis of the posts published within Vadoinafrica Network , the group dedicated to entrepreneurs or aspiring entrepreneurs who speak Italian, I have noticed several opportunities in the sectors of furniture , packaging (e.g. glass bottles) and machinery for the transformation of agri-food products .
3) Why should an SME consider selling to Africa?
Because it is the continent with the youngest population in the world and a constantly growing middle class. The economic situation in some nations can be compared to that of China 15 years ago or Italy in the 1960s. I am thinking, first of all, of Ghana , Morocco , Tunisia and Senegal .
Being here now means intercepting a wave of economic development that is in a growing phase.
However, the trend in many of the 54 African nations is to encourage the creation and development of local processing companies and to increase duties on non-African products.
In fact, a single African market is emerging along the lines of the European Union. Therefore, opening a production activity on site or, in any case, a commercial bridgehead can be a winning choice for an Italian SME.
4) What are the most common mistakes?
The most common mistake is to think that, since you are in Africa, everything is allowed and you can do business without taking into account local laws or by relying on a friend of the moment to obtain undue advantages from some local politician or not to pay taxes.
Nothing could be more wrong. And underestimating this leads straight to African prisons which are certainly not
noted for their comfort.
5) Is there a success story of a small SME?
Recently, during a Live within the group, one of the Vadoinafrica Ambassadors told us about a small Italian company that is having great success in selling products for medical analysis in Kenya.
...and as promised at the beginning of the post, here is the story of a small entrepreneur who successfully started his business adventure in the African continent:
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