Busi potential africa
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Busi potential africa

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Busi potential africa Busi potential africa Presentation Transcript

  • BUSINESS FOCUS Sub Saharan Africa
  • THE GREEN LAND OF MASSIVE RESOURCES, THOUGH CALLED DARK CONTINENT DUE TO IGNORANCE
  • DOING BUSINESS IN AFRICA - COMESA THE DARK CONTINENT BUT SPARKLING BRIGHTNESS FOR BUSINESS COMMUNITY THE LAND WITH IMMENCE POTENTIAL
  • WHY SUB SAHARAN AFRICA ?
    • SURROUNDING SAHARA
    • DISTINGUISHING FROM SAHARA
    • CHANGE IN THE PERCEPTION.
    • PRE-EMPT OTHERS
    • PAST TREND OF OUR BUSINESS
    • IGNORED REGION
  • PAST CREDENTIAL
    • ORIGIN OF PEOPLE
    • RECENTLY MIGRATED INDIANS
    • KINGMAKERS IN MANY COUNTRIES
    • BUREAUCRATES OF INDIAN ORIGIN
    • RESPECT FOR INDIAN COMMUNITY
    • FEQUENCY OF TRAVELLERS
  •  
  • In the Past INFORMATION LOW PROGRESS DICTATORSHIP MACRO ECONOMIC INSTABILITY POOR LOGISTICS CIVIL STRIFE
    • BARTHOCOMEO D12
    • VASCO DA GAMA
    • BRITISH RULES IN INDIA
    • OTHER EXPLORERS / MISSONARIES /BUSINESSMEN
    • CLOSENESS OF EUROPE.
    In the Past
  • WHAT IS THE POTENTIAL?
    • 350 MILLION MARKET SIZE
    • ROUGH DIAMONDS
    • TIMBER
    • ENDOWED WITH VAST NATURAL RESOURSES
    • STEEL OF VARIOUS GRADES
    • SUGAR CANE
    • ACCESSIBILITY
  • AFRICA
  • SOUTH AFRIC A ABUNDANT RESOURCE IMPORTS EXPORTS EDIBLE OIL TEXTILE/MADE UPS VEHICLES / PARTS CHEMICALS PHARMACEUTICALS PREPARED FOODS RICE SHOES / LETHER GOODS SPICES IRON & STEEL BREWERIES MOLASSES FRUITS/VEGETABLE ELECTRICAL EQUIP. ENGG. ITEMS METALS
  • DOING BUSINESS WITH AFRICA
    • THE DOOR IS OPEN FOR CHEMICALS,
    • PHARMACEUTICALS AND COSMETICS
    • BECAUSE PRODUCTS OF INDIAN ORIGIN
    • COULD BE ADAPTABLE
    • WESTERN IS SO EXPENSIVE
  • EFFECTS AND END RESULTS LIMITED DEVELOPMENTS PAYMENT PROBLEMS NO FDI LAKE OF TRADE FOCUS HIGH RISK LEVELS CORRUPTIONS
  • THE SCOPE , HOPE AND IMPORTANCE
    • MAJOR PORTION OF THE DIAMOND MINED HERE
    • VAST TIMBER RESOURCE
    • FERROUS AND NON FERROUS METAL.
    • CASHEW PRODUCTION
    • ALL THE MINERALS ARE AVAILABLE.
    • MANY PORTS IN OPERATION
  • LIMITATIONS FOR BUSINESS MANY ARE LAND LOCKED PAYMENTS LACK OF CONFIDENCE HIGH IMPORT DUTIES SYSTEMS , NOT EFFECTIVE MANIPULATION AT ALL LEVELS
  • INDIA – SUB SAHARAN AFRICA CLOSE AND CORDIAL NRI CONTRIBUTION BAD MEMORIES TOO GROWING RAPIDLY DIPLOMATIC REP. PROMOTION ON BOTH SIDES
  • BUSINESS POTENTIAL FOR INDIA
    • AFRICA IS THE SECOND LARGEST CONTINENT IN AREA AND THE THIRD LARGEST IN POPULATION
    • VERY RICH IN NATURAL RESOURCES
    • HUGE SHORTAGE OF SKILLED MANPOWER
    • VERY POOR IN MANUFACTURING ACTIVITY
    • MANY REGIONAL TRADE ARRANGEMENTS
    • SUCCESSFUL INDIAN BUSINESS COMMUNITY
  • EXCLUSIVELY FOR INDIA
    • MANY ECONOMIES ARE GROWING AND LIBERALISED
    • INDIA HAS 4.08% OF TOTAL EXPORTS IN SSA AND IMPORTS FROM SSA CONSTITUTES 3.18%
    • DIRECT SHIPMENTS TO MANY PORTS IN AFRICA
    • SOFTWARE AVAILABLE TO TRANSLATE ENGLISH INTO MANY AFRICAN LANGUAGES
    • AFRICA’S SHARE IN WORLD TRADE IS 1.87%
    • SSA’S SHARE IN AFRICA IS 70%
  • POTENTIAL FOR INDIA
    • DRUGS, PHARMACEUTICALS & FINE CHEMICALS
    • COSMETICS / TOILETRIES ETC.
    • INORGANIC / ORGANIC / AGRO CHEMICALS
    • RESIDUAL CHEMICAL & ALLIED PRODUCTS
  • FOCUS AREAS IN SSA NIGERIA S. AFRICA MAURITIUS KENYA ETHIOPIA TANZANIA GHANA 69% OF INDIA – AFRICAN EXPORTS CONCENTRATE ON THE ABOVE
    • Broad items of Exports to SSA
    • DRUGS & PHARMACEUTICALS
    • FINE CHEMICALS
    • COTTON YARN, FABRICS & MADEUPS
    • MANUFACTURE OF METALS
    • TRANSPORTS EQUIPTS
    • RICE
    • IRON AND STEEL
    • Broad Items of Imports
    • PETROLEUM, CRUDE & OTHERS
    • GOLD & SILVER
    • PEARL & PRECIOUS STONES
    • INORGANIC CHEMICALS
    • COAL & COKE
    • WOOD & WOOD PRODUCTS
    • COTTON-RAW & WASTE
    • CASHEW
    • RAW FOR FERTILIZER
  • INDIA’S PORDUCT FOCUS DRUGS & PHARMACEUTICAL CHEMICALS MACHINERY & INSTRUMENTS TRANSPORT EQUIPMENTS TELECOM SERVICES INFORMATION TECHNOLOGY
  • SOUTH AFRICA
  • SOUTH AFRICA SALIENT FEATURES
    • THE LAND OF DIAMONDS / METAL /MINERAL SOURCES.
    • 45% OF TOTAL ELECTRICITY OF AFRICA CONSUMED.
    • 45m. MARKET SIZE WITH HIGH PURCHASING POWER.
    • 3% OF INDIAN POPULATION HAVING REPRESENTATION OF 13% IN MINISTRY.
    • MANY SUCCESS STORIES AFTER 1994.
  • MAJOR HIGHLIGHTS
    • TRADE PARTNERS:USA, UK, FRANCE, JAPAN, SOUTH KOREA, CHINA
    • LIFTED SURCHARGES FOR THE PAST 5 YEARS
    • CAPACITY OF IMPORTS $46b
    • PAYMENT TERMS: 90-120 days D/A
    • PROMOTION THROUGH T.V. NEWSPAPER, RADIO, MAGAZINES.
    • DOMESTIC CONSUMPTION O N THE UPWARD GROWTH
  • EXPORTS FOR SUCCESS IN SOUTH AFRICA
    • DRUGS,PHARMACEUTICALS & FINE CHEMICALS
    • INORGANIC / ORGANIC / AGRO CHEMICALS
    • DYES / INTERMEDIATES & COAR TAR CHEMICAL
    • COSMETICS / TOILETRIES ETC.
  • MAURITIUS SALIENT FEATURES
    • FREE MARKET ECONOMY
    • A DYNAMIC PRIVATE SECTOR
    • MODERN INFRASTRUCTURE
    • POLITICAL STABILITY
    • MARKET FRIENDLY POLICY
    • HIGH LITERACY RATE
    • SUCCESS OF FREEPORT, OFFSHORE AND BANKING OPERATIONS
  • MAURITIUS
    • THE ISLAND IS EQIVALENT TO TWO SUBURBS OF MUMBAI IN POPULATION
    • HIGHLY LITERATE, WELL PLANNED, STRUCTURED AND SYSTEMATIC BUSINESS COMMUNITY.
    • INCLINED TO BE IN THE FOREFRONT IN DEVELOPMENT PROCESS AMONGST ALL THE COMESA NATIONS.
    • COMMON LINGUAL AND SAFE BUSINESS CENTRE FOR INDIANS
  • CURRENT TREND
    • LOW INFLATION @ 6.5%
    • MANUFACTURING AND TOURISM OFFSET THE LOSS DUE TO SUGAR
    • SIX LAKH TOURISTS PAID VISIT AND SPENT 10 DAYS AVERAGE
    • REGIONAL TRADE IS ON FAST GROWTH
    • MASSIVE INVESTMENT IN THE FREEPORT
    • STRATEGICALLY LOCATED FOR CHANNELISING SHIPMENTS
  • INDIA & MAURITIUS
    • AVOIDANCE OF DOUBLE TAXATION AGREEMENT IN AUGUST 1982
    • INDIA TECHNOLOGY DIFFUSION SCHEME 1999
    • INDIA IS THE LARGEST EXPORTER TO MAURITIUS
    • AJANTA PHARMA, ARVINDOVERSEAS, INDIAN OIL CORPORATION, LIC, TCIL, SBI, BOB HAVE VENTURED ALREADY
  • MAIN ITEMS WITH MAURITIUS
    • YARN, GARMENTS AND FABRICS
    • PHARMACEUTICALS / DISPOSABLES
    • ENGINEERING ITEMS
    • CERAMIC TILES / HARDWARE
    • MOPEDS
    • JEWELLERY
    • SEAFOOD
    • SPICES
    • PLASTIC ITEMS
  • MAURITIUS CURRENT DEVELOPMENT
    • BALANCED INCENTIVES TO INVESTORS
    • INDIAN IT GIANTS ENTER THROUGH MAURITIUS TO OTHER SSA
    • MAURITIUS PLAYS A LEAD ROLE IN MANY INTIATIVES
    • PEACEFUL, COMFORTABLE AND KNOWN CENTER FOR BUSINESS
  • TANZANIA
    • UNITED REPUBLIC OF TANZANIA IN EAST AFRICA IS THE LARGEST ONE COMBINED SIZE OF FRANCE, GERMANY, AUSTRIA, AND SWISS – A MILLION SQ,KMS 53000 SQ KMS WITH INLAND WATER
    • VAST RESERVES OF IRON ORE,COAL, URANIUM,PHOSPHATES, N. GAS, DIAMONDS AND GOLD
    • FAST GROWING INDUSTRIAL SECTOR WITH 27%.
    • IDEAL LOCATION TO START BUSINESS
    • DAR ES SALAM KNOWN FOR THEIR EXISTENCE FOR LONG
  • TANZANIA
    • MAIN PORTS: ZANZIBAR AND DAR A SALAM
    • IMPORTS CROSSED $2.5b
    • SINGLE COLUMN TARIFF APPLICABLE.
    • HIGH GRANDS FROM U.N.
    • USUAL TERMS OF PAYMENT 60-90 L/C CREDIT
    • CURRENCY MADE CONVERTIBLE IN 1996
    • TANZANIANS – POLITE, HELPFUL AND WARM PEOPLE
    • BUSINESS DEALS: HAVE PATIENCE & FLEXIBILITY
  • PRODUCTS FOR TANZANI A
    • DRUGS, PHARMACEUTICALS & FINE CHEMICALS
    • DYES /INTERMEDIATES & COAL TAR CHEMICALS
    • INORGANIC / ORGANIC / AGRO CHEMICALS
    • COSMETICS / TOILETRIES ETC
    • PAINTS / ENAMELS /VARNISHES ETC
  • KENYA
    • BORDERED BY ETHIOPIA & SUDAN, SOMALIA & INDIAN OCEAN
    • KENYAN AIRWAYS – REGULAR FLIGHTS TO MANY COUNTRIES
    • 6 LAKHS INDIAN POPULATION AND KEY PLAYERS IN KENYA
    • VAST RESOURCES, SAFARIES, SUPER MARKETS
    • BANK OF BARODA SETUP FIRST OVERSEAS BRANCH IN KENYA - A GREAT SUCCESS STORY
  • EXPORTS TO KENY A
    • DRUGS, PHARMACEUTICALS & FINE CHEMICALS
    • INORGONIC / ORGANIC/ AGRO CHMICALS. PAINTS / ENAMELS / VARNISHES ETC
    • DYES / INTERMEDIATES & COAL TAR CHEMICALS
    • COSMETICS / TOILETRIES ETC
    • RESIDUAL CHEMICAL & ALLIED PRODUCTS
  • KENYA - ESTABLISHED INDIAN STRONGHOLD CLOTHING & TEXTILES ELECTRICAL EQUIPMENT CANNED FOODS PRINTING & PUBLISHING TRANSPORT EQUIPMENT PHARMA DRUGS BAKERY PRODUCTS PLASTIC & RUBBER KITCHEN ITEM
  • PROMOTIONAL ADVANTAGES
    • FREQUENCY OF LINERS AND FLIGHTS
    • PROXIMITY TO US
    • SURROUNDED BY MANY LANDLOCKED COUNTRIES.
    • CONSUMPTION PATTERN AS GOOD AS SOUTH AFRICA
    • INVITATION FOR BUSINESS DEALS APPRECIATED
    • PROMOTION THROUGH AGENTS
  • NIGERIA - SALIENT FEATURES
    • HUGE POTENTIAL: HUMAN, FOREST & TRADE
    • INDIANS PROSPERED IN NIGERIA
    • VIOLENCE LEVEL IS ON DECLINE
    • CROSS BORDER TRADE W ITH NEIGHBOURS
  • EXPORT POTENTIAL IN NIGERIA
    • DRUGS, PHARMACEUTICALS & FINE CHEM
    • INORGANIC / ORGANIC/ AGRO CHMICALS
    • PAINTS / ENAMELS / VARNISHES ETC
    • DYES / INTERMEDIATES & COAL TAR CHEMICALS, COSMETICS / TOILETRIES
    • RESIDUAL CHEMICAL & ALLIED PRODUCTS
  • EXPORTS TO GHAN A
    • DRUGS, PHARMACEUTICALS & FINE CHEM
    • INORGANIC / ORGANIC/ AGRO CHMICALS
    • PAINTS / ENAMELS / VARNISHES ETC
    • DYES / INTERMEDIATES & COAL TAR CHEM
    • COSMETICS / TOILETRIES ETC
  • ETHIOPIA
    • BORDERED BY RED SEA, KENYA, SOMALIA, DJTBOUTI AND SUDAN
    • 90%OF THE POPULATION DEPENDS ON AGRICULTURE
    • 60% OF EXPORT EARNINGS OF CAFFEE
    • IMMENSE HYDRO ELECTRIC POTENTIAL
    • HUGE UNTAPPED POTENTIAL
  • EXPORTS TO ETHIOPIA
    • DRUGS, PHARMACEUTICALS & FINE CHEMICALS
    • COSMETICS / TOILETRIES ETC.
    • INORGANIC / ORGANIC / CHEMICALS.
            • AND
    • PRIMARY & SEMI FINISHED IRON & STEEL.
    • PLASTIC & LINOLEUM PRODUCTS.
    • MACHNIERY & INSTRUMENTS.
    • MANUFACTURES OF METALS.
    • TRANSPORT EQUIPMENT.
    • PAPER / WOOD PRODUCTS.
    • MANMADE YARN, FABRICS, MADEUPS.
    • ELECTRONIC GOODS.
    • GLASS / GLASSWARE/ CERAMICS / REFRACTORIES / CEMENT.
    • RUBBER MANUFACTURED PRODUCTS EXCEPT FOOTWEAR.
    • RMG COTTON INCLUDING ACCESSORIES.
    • TOBACCO UNMANUFACTURED.
    • RICE ( OTHER THEN BASMATI ).
    • LEATHER GOODS.
  • MADAGASCAR
    • (COMOROS REPUBLIC AND ISLAND OF MAYOTTE)
      • LIBERALISED IMPORT SYSTEM INTRODUCED
      • FRANCS / DOLLARS TRANSACTED
      • IMPORT DUTY RANGING FROM 0 – 30%
      • DEMAND EXISTING FOR ESSENTIAL ITEMS
      • DIRECT SHIPMENT AVAILABLE
      • SIGNIFICANT TRADE FLOW FROM NEIGHBOURING COUNTRI ES
  • Indian Business in Africa
    • Indian companies are doing business in more than
    • 20 African countries
    • Bharti Airtel – US$ 10.7 billion acquisition of
    • Kuwait based Zain Group’s African telecom
    • TATA group, Reddy’s grp invested over $6 billion
    • Others- Videocon, Suzlon, Godrej, Mahindra , UB
    • group, Cipla, NIIT, Kirloskar and Essar
  • Indian Business in Africa
    • Kenya – Indian companies re involved in wide range of
    • sectors – Pharma, financial services, software & printing
    • In Ethiopia – active in agriculture, engineering, Pharma &
    • Consultancy
    • Sudan – Oil and Gas
    • SA – little Indian direct investment (1.4%) Industries
    • present are mining ( Vedanta, Arcelor Mittal), steel (TATA)
    • Pharma (Reddy’s, Ranbaxy and vehicles (TATA, Mahindra)
  • Indian Business in Africa
    • Kirloskar developed pumping station along the
    • Nile in Egypt
    • TATA $ 1.6 billion investment in Tourism, mining,
    • automobiles, energy, and telecommunication
    • particularly in E.Africa where Mauritius is the main
    • host of Indian FDI – accounts for 70% of total flows
    • into the continent
  • MAJOR CHALLENGES AND RISKS PAYMENT CARGO MOVEMENT NO RIGHT INFORMATION BANKING PRACTICE POLITICAL RISK HIGH DUTY CORRUPTION
  • BUSINESS PRACTICES BENEFITS : RISKS : DIRECT EXPORTS THROUGH AGENTS WITHOUT AGENTS THROUGH TENDER
  • THROUGH LOCAL PARTNER EXCLUSIVE 100% OWNERSHIP J.V PARTNER
  • MANUFACTURING IN SSA SUPPLY RAW MATERIAL ADD VALUE SEND TO OTHER SSA COUNTRIES
  • MANUFACTURING & TRADE MANUFACTURING OF FEW RANGES TRADING OF FEW RANGES ESTABLISH BRAND NAME
  • COVER RETAIL OUTLETS SEND ASSORTED PRODUCT RANGES DISTRIBUTE ONLY TO RETAIL OUTLET
  • OPERATE THROUGH FREE PORT STOCK THE GOODS DESPATCH TO DESTINATIONS COLLECT MONEY
  • GENERAL BUSINESS PRACTICES
    • L / C IS UNATTRACTIVE
    • CREDIT REPORT DOES NOT GIVE TRUE PICTURE
    • BIG PLAYERS KEEP LOW PROFILE
    • CHINA EXPANDS IN A BIG WAY
    • NO UNIFORM BUSINESS DEALS
    • THEY TEST OUR PATIENCE
  • HOW TO DO BUSINESS WITH THEM
    • STAGE -1: PROSPECT RIGHT PERSON WITH MONEY /
    • WILLINGNESS / MERIT / CONTACT
    • STAGE -2: INVITE TO INDIA TO UNDERSTAND MORE &
    • EVALUATE.
    • STAGE -3: TRIAL ORDER WITH COMMITMENT
    • STAGE -4: MAKE OUR PRESENCE IN SSA
    • STAGE -5: BUILD ONE OR TWO PLACES STRONG –
    • THEN SPREAD
  • MARKET APPROCH TRADE FAIRS / EXHIBITIONS BUYER / SELLER MEET CATALOGUE SHOW
    • NEVER,EVER SHIP THE GOODS WITHOUT ECGC COVER (ATLEAST RESTRICTED ) TO SAFEGUARD OURSELVES
  • HIGH DEMAND ITEMS AND METHOD OF OPERATION
    • GOVT. PROCUREMENT : BEST ROUTE TO ENTER
    • FOOD, HEALTH & SAFETY ON PRIORITY
    • IMPORT LICENSE NOT REQUIRED FOR MANY ITEMS
    • BEST CENTRE TO START LABOUR INTENSIVE ITEMS
    • BILL BOARDS / POSTERS / NEWSPAPER / T.V./ RADIO WITH WESTERN TOUCH
  • MARKET APPROACH TRADE FAIRS / EXHIBITIONS DELEFATION DIRECT VISIT TRADE BODIES FREE PORT AN OPPORTUNITY TO SHOW THE PRODUCTS AND GAUGE THEIR INTEREST
  • STRATEGIES AND MARKET APPROACH IN COMESA Option 1 Indian Manufacturer Appoint local agents A B C DISTRIBUTORS
  • OPTION 2 Indian Manufacturer Regional representative (Principals) Market 1 Market 2 Market 3
  • Option 3 Indian Manufacturer Tender Specialist Private Distributor Govt. Supply Retail
  • OPTION 4 Indian Company Partial Manufacturing Center Import from India Manufacture Items Have the Market Control
  • OPTION 5 Indian Company with Brand Regional strong marketing group Exclusive Tie - up Just Facilitate
  • OPTION 6 Indian Manufacturer Well established marketing Co. Do contract manufacturing on his brand Don’t bother what he does
  • FUNDAMENTAL POLICIES FOR CLINCHING BETTER DEALS
    • DON’T BE A SHEEP; BE A TIGER
    • ONE STRENGHT SHOULD BE POWERFULL: SOURCING / SELLING
    • REMOVING TRADER’S ATTITUDE
    • CAUTION ALWAYS ON TERMS
    • ALL THE PROMISES NOT TO BE TAKEN
    • EVERYONE SAYS WITH INDIAN EXPERIENCE: BUT NOT TRUE
    • EVERY BUYER PRIORITISE HIS SAFETY ONLY