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 IMME...
WHY SUB SAHARAN AFRICA ? <ul><li>SURROUNDING SAHARA </li></ul><ul><li>DISTINGUISHING FROM SAHARA </li></ul><ul><li>CHANGE ...
PAST CREDENTIAL <ul><li>ORIGIN OF PEOPLE  </li></ul><ul><li>RECENTLY MIGRATED INDIANS </li></ul><ul><li>KINGMAKERS IN MANY...
 
In the Past INFORMATION LOW PROGRESS DICTATORSHIP MACRO ECONOMIC INSTABILITY POOR LOGISTICS CIVIL STRIFE
<ul><li>BARTHOCOMEO D12 </li></ul><ul><li>VASCO DA GAMA </li></ul><ul><li>BRITISH RULES IN INDIA </li></ul><ul><li>OTHER E...
WHAT IS THE POTENTIAL? <ul><li>350 MILLION MARKET SIZE </li></ul><ul><li>ROUGH DIAMONDS </li></ul><ul><li>TIMBER </li></ul...
AFRICA
SOUTH AFRIC A ABUNDANT RESOURCE IMPORTS EXPORTS EDIBLE OIL TEXTILE/MADE UPS VEHICLES / PARTS CHEMICALS PHARMACEUTICALS PRE...
DOING BUSINESS WITH AFRICA <ul><li>THE DOOR IS OPEN FOR CHEMICALS,  </li></ul><ul><li>PHARMACEUTICALS AND COSMETICS </li><...
EFFECTS AND END RESULTS LIMITED DEVELOPMENTS PAYMENT PROBLEMS NO FDI LAKE OF TRADE  FOCUS HIGH RISK LEVELS CORRUPTIONS
THE SCOPE , HOPE AND IMPORTANCE <ul><li>MAJOR PORTION OF THE  DIAMOND MINED HERE </li></ul><ul><li>VAST TIMBER RESOURCE </...
LIMITATIONS FOR BUSINESS MANY ARE LAND LOCKED PAYMENTS LACK OF  CONFIDENCE HIGH IMPORT DUTIES SYSTEMS , NOT  EFFECTIVE MAN...
INDIA – SUB SAHARAN AFRICA CLOSE AND CORDIAL NRI CONTRIBUTION BAD MEMORIES TOO GROWING RAPIDLY DIPLOMATIC REP. PROMOTION O...
BUSINESS POTENTIAL FOR INDIA <ul><li>AFRICA IS THE SECOND LARGEST CONTINENT IN AREA AND THE THIRD LARGEST IN POPULATION </...
EXCLUSIVELY FOR INDIA <ul><li>MANY ECONOMIES ARE GROWING AND LIBERALISED </li></ul><ul><li>INDIA HAS 4.08% OF TOTAL EXPORT...
POTENTIAL FOR INDIA <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>COSMETICS / TOILETRIES ETC. </li></u...
FOCUS AREAS IN  SSA NIGERIA S. AFRICA MAURITIUS KENYA ETHIOPIA TANZANIA GHANA 69% OF INDIA – AFRICAN EXPORTS  CONCENTRATE ...
<ul><li>Broad items of Exports to SSA </li></ul><ul><li>DRUGS & PHARMACEUTICALS </li></ul><ul><li>FINE CHEMICALS </li></ul...
<ul><li>Broad Items of Imports </li></ul><ul><li>PETROLEUM, CRUDE & OTHERS </li></ul><ul><li>GOLD & SILVER </li></ul><ul><...
INDIA’S  PORDUCT  FOCUS DRUGS & PHARMACEUTICAL CHEMICALS MACHINERY & INSTRUMENTS TRANSPORT EQUIPMENTS TELECOM  SERVICES IN...
SOUTH AFRICA
SOUTH AFRICA SALIENT FEATURES <ul><li>THE LAND OF DIAMONDS / METAL /MINERAL SOURCES. </li></ul><ul><li>45% OF TOTAL ELECTR...
MAJOR HIGHLIGHTS <ul><li>TRADE PARTNERS:USA, UK, FRANCE, JAPAN, SOUTH KOREA, CHINA </li></ul><ul><li>LIFTED SURCHARGES FOR...
EXPORTS FOR SUCCESS IN SOUTH AFRICA <ul><li>DRUGS,PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>INORGANIC / ORGANIC /...
MAURITIUS SALIENT FEATURES <ul><li>FREE MARKET ECONOMY </li></ul><ul><li>A DYNAMIC PRIVATE SECTOR </li></ul><ul><li>MODERN...
MAURITIUS <ul><li>THE ISLAND IS EQIVALENT TO TWO SUBURBS OF MUMBAI IN POPULATION </li></ul><ul><li>HIGHLY LITERATE, WELL P...
CURRENT TREND <ul><li>LOW INFLATION @ 6.5% </li></ul><ul><li>MANUFACTURING AND TOURISM OFFSET THE LOSS DUE TO SUGAR </li><...
INDIA & MAURITIUS <ul><li>AVOIDANCE OF DOUBLE TAXATION AGREEMENT IN AUGUST 1982 </li></ul><ul><li>INDIA TECHNOLOGY DIFFUSI...
MAIN ITEMS WITH MAURITIUS <ul><li>YARN, GARMENTS AND FABRICS </li></ul><ul><li>PHARMACEUTICALS / DISPOSABLES </li></ul><ul...
MAURITIUS CURRENT DEVELOPMENT <ul><li>BALANCED INCENTIVES TO INVESTORS </li></ul><ul><li>INDIAN IT GIANTS ENTER THROUGH MA...
TANZANIA <ul><li>UNITED REPUBLIC OF TANZANIA IN EAST AFRICA IS THE LARGEST ONE COMBINED SIZE OF FRANCE, GERMANY, AUSTRIA, ...
TANZANIA <ul><li>MAIN PORTS: ZANZIBAR AND DAR A SALAM </li></ul><ul><li>IMPORTS CROSSED $2.5b </li></ul><ul><li>SINGLE COL...
PRODUCTS  FOR  TANZANI A <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>DYES /INTERMEDIATES & COAL TAR ...
KENYA <ul><li>BORDERED BY ETHIOPIA & SUDAN, SOMALIA & INDIAN OCEAN </li></ul><ul><li>KENYAN AIRWAYS – REGULAR FLIGHTS TO M...
EXPORTS  TO  KENY A <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>INORGONIC / ORGANIC/ AGRO CHMICALS. ...
KENYA   - ESTABLISHED INDIAN STRONGHOLD CLOTHING & TEXTILES ELECTRICAL EQUIPMENT CANNED FOODS PRINTING & PUBLISHING TRANSP...
PROMOTIONAL ADVANTAGES <ul><li>FREQUENCY OF LINERS AND FLIGHTS </li></ul><ul><li>PROXIMITY TO US </li></ul><ul><li>SURROUN...
NIGERIA - SALIENT FEATURES <ul><li>HUGE POTENTIAL: HUMAN, FOREST & TRADE </li></ul><ul><li>INDIANS PROSPERED IN NIGERIA </...
EXPORT POTENTIAL IN NIGERIA <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEM </li></ul><ul><li>INORGANIC / ORGANIC/ AGRO CHMICAL...
EXPORTS  TO  GHAN A <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEM </li></ul><ul><li>INORGANIC / ORGANIC/ AGRO CHMICALS </li><...
ETHIOPIA <ul><li>BORDERED BY RED SEA, KENYA, SOMALIA, DJTBOUTI AND SUDAN </li></ul><ul><li>90%OF THE POPULATION DEPENDS ON...
EXPORTS TO ETHIOPIA <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>COSMETICS / TOILETRIES ETC. </li></u...
MADAGASCAR <ul><li>(COMOROS REPUBLIC AND ISLAND OF MAYOTTE) </li></ul><ul><ul><li>LIBERALISED IMPORT SYSTEM INTRODUCED </l...
Indian Business in Africa <ul><li>Indian companies are doing business in more than </li></ul><ul><li>20 African countries ...
Indian Business in Africa <ul><li>Kenya – Indian companies re involved in wide range of  </li></ul><ul><li>sectors – Pharm...
Indian Business in Africa <ul><li>Kirloskar developed pumping station along the  </li></ul><ul><li>Nile in Egypt </li></ul...
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 <ul><li>L / C IS UNATTRACTIVE </li></ul><ul><li>CREDIT REPORT DOES NOT GIVE TRUE PICTURE </li...
HOW TO DO BUSINESS WITH THEM <ul><li>STAGE -1: PROSPECT RIGHT PERSON WITH MONEY /  </li></ul><ul><li>WILLINGNESS / MERIT /...
MARKET APPROCH TRADE FAIRS / EXHIBITIONS BUYER / SELLER MEET CATALOGUE  SHOW
<ul><li>NEVER,EVER SHIP THE GOODS WITHOUT ECGC COVER  (ATLEAST RESTRICTED )  TO SAFEGUARD OURSELVES </li></ul>
HIGH DEMAND ITEMS AND METHOD OF OPERATION <ul><li>GOVT. PROCUREMENT : BEST ROUTE TO ENTER </li></ul><ul><li>FOOD, HEALTH &...
MARKET APPROACH TRADE FAIRS / EXHIBITIONS DELEFATION DIRECT  VISIT TRADE  BODIES FREE  PORT AN OPPORTUNITY TO SHOW THE PRO...
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 ...
FUNDAMENTAL POLICIES FOR CLINCHING BETTER DEALS <ul><li>DON’T BE A SHEEP; BE A TIGER </li></ul><ul><li>ONE STRENGHT SHOULD...
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Busi potential africa

  1. 1. BUSINESS FOCUS Sub Saharan Africa
  2. 2. THE GREEN LAND OF MASSIVE RESOURCES, THOUGH CALLED DARK CONTINENT DUE TO IGNORANCE
  3. 3. DOING BUSINESS IN AFRICA - COMESA THE DARK CONTINENT BUT SPARKLING BRIGHTNESS FOR BUSINESS COMMUNITY THE LAND WITH IMMENCE POTENTIAL
  4. 4. WHY SUB SAHARAN AFRICA ? <ul><li>SURROUNDING SAHARA </li></ul><ul><li>DISTINGUISHING FROM SAHARA </li></ul><ul><li>CHANGE IN THE PERCEPTION. </li></ul><ul><li>PRE-EMPT OTHERS </li></ul><ul><li>PAST TREND OF OUR BUSINESS </li></ul><ul><li>IGNORED REGION </li></ul>
  5. 5. PAST CREDENTIAL <ul><li>ORIGIN OF PEOPLE </li></ul><ul><li>RECENTLY MIGRATED INDIANS </li></ul><ul><li>KINGMAKERS IN MANY COUNTRIES </li></ul><ul><li>BUREAUCRATES OF INDIAN ORIGIN </li></ul><ul><li>RESPECT FOR INDIAN COMMUNITY </li></ul><ul><li>FEQUENCY OF TRAVELLERS </li></ul>
  6. 7. In the Past INFORMATION LOW PROGRESS DICTATORSHIP MACRO ECONOMIC INSTABILITY POOR LOGISTICS CIVIL STRIFE
  7. 8. <ul><li>BARTHOCOMEO D12 </li></ul><ul><li>VASCO DA GAMA </li></ul><ul><li>BRITISH RULES IN INDIA </li></ul><ul><li>OTHER EXPLORERS / MISSONARIES /BUSINESSMEN </li></ul><ul><li>CLOSENESS OF EUROPE. </li></ul>In the Past
  8. 9. WHAT IS THE POTENTIAL? <ul><li>350 MILLION MARKET SIZE </li></ul><ul><li>ROUGH DIAMONDS </li></ul><ul><li>TIMBER </li></ul><ul><li>ENDOWED WITH VAST NATURAL RESOURSES </li></ul><ul><li>STEEL OF VARIOUS GRADES </li></ul><ul><li>SUGAR CANE </li></ul><ul><li>ACCESSIBILITY </li></ul>
  9. 10. AFRICA
  10. 11. 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
  11. 12. DOING BUSINESS WITH AFRICA <ul><li>THE DOOR IS OPEN FOR CHEMICALS, </li></ul><ul><li>PHARMACEUTICALS AND COSMETICS </li></ul><ul><li>BECAUSE PRODUCTS OF INDIAN ORIGIN </li></ul><ul><li>COULD BE ADAPTABLE </li></ul><ul><li>WESTERN IS SO EXPENSIVE </li></ul>
  12. 13. EFFECTS AND END RESULTS LIMITED DEVELOPMENTS PAYMENT PROBLEMS NO FDI LAKE OF TRADE FOCUS HIGH RISK LEVELS CORRUPTIONS
  13. 14. THE SCOPE , HOPE AND IMPORTANCE <ul><li>MAJOR PORTION OF THE DIAMOND MINED HERE </li></ul><ul><li>VAST TIMBER RESOURCE </li></ul><ul><li>FERROUS AND NON FERROUS METAL. </li></ul><ul><li>CASHEW PRODUCTION </li></ul><ul><li>ALL THE MINERALS ARE AVAILABLE. </li></ul><ul><li>MANY PORTS IN OPERATION </li></ul>
  14. 15. LIMITATIONS FOR BUSINESS MANY ARE LAND LOCKED PAYMENTS LACK OF CONFIDENCE HIGH IMPORT DUTIES SYSTEMS , NOT EFFECTIVE MANIPULATION AT ALL LEVELS
  15. 16. INDIA – SUB SAHARAN AFRICA CLOSE AND CORDIAL NRI CONTRIBUTION BAD MEMORIES TOO GROWING RAPIDLY DIPLOMATIC REP. PROMOTION ON BOTH SIDES
  16. 17. BUSINESS POTENTIAL FOR INDIA <ul><li>AFRICA IS THE SECOND LARGEST CONTINENT IN AREA AND THE THIRD LARGEST IN POPULATION </li></ul><ul><li>VERY RICH IN NATURAL RESOURCES </li></ul><ul><li>HUGE SHORTAGE OF SKILLED MANPOWER </li></ul><ul><li>VERY POOR IN MANUFACTURING ACTIVITY </li></ul><ul><li>MANY REGIONAL TRADE ARRANGEMENTS </li></ul><ul><li>SUCCESSFUL INDIAN BUSINESS COMMUNITY </li></ul>
  17. 18. EXCLUSIVELY FOR INDIA <ul><li>MANY ECONOMIES ARE GROWING AND LIBERALISED </li></ul><ul><li>INDIA HAS 4.08% OF TOTAL EXPORTS IN SSA AND IMPORTS FROM SSA CONSTITUTES 3.18% </li></ul><ul><li>DIRECT SHIPMENTS TO MANY PORTS IN AFRICA </li></ul><ul><li>SOFTWARE AVAILABLE TO TRANSLATE ENGLISH INTO MANY AFRICAN LANGUAGES </li></ul><ul><li>AFRICA’S SHARE IN WORLD TRADE IS 1.87% </li></ul><ul><li>SSA’S SHARE IN AFRICA IS 70% </li></ul>
  18. 19. POTENTIAL FOR INDIA <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>COSMETICS / TOILETRIES ETC. </li></ul><ul><li>INORGANIC / ORGANIC / AGRO CHEMICALS </li></ul><ul><li>RESIDUAL CHEMICAL & ALLIED PRODUCTS </li></ul>
  19. 20. FOCUS AREAS IN SSA NIGERIA S. AFRICA MAURITIUS KENYA ETHIOPIA TANZANIA GHANA 69% OF INDIA – AFRICAN EXPORTS CONCENTRATE ON THE ABOVE
  20. 21. <ul><li>Broad items of Exports to SSA </li></ul><ul><li>DRUGS & PHARMACEUTICALS </li></ul><ul><li>FINE CHEMICALS </li></ul><ul><li>COTTON YARN, FABRICS & MADEUPS </li></ul><ul><li>MANUFACTURE OF METALS </li></ul><ul><li>TRANSPORTS EQUIPTS </li></ul><ul><li>RICE </li></ul><ul><li>IRON AND STEEL </li></ul>
  21. 22. <ul><li>Broad Items of Imports </li></ul><ul><li>PETROLEUM, CRUDE & OTHERS </li></ul><ul><li>GOLD & SILVER </li></ul><ul><li>PEARL & PRECIOUS STONES </li></ul><ul><li>INORGANIC CHEMICALS </li></ul><ul><li>COAL & COKE </li></ul><ul><li>WOOD & WOOD PRODUCTS </li></ul><ul><li>COTTON-RAW & WASTE </li></ul><ul><li>CASHEW </li></ul><ul><li>RAW FOR FERTILIZER </li></ul>
  22. 23. INDIA’S PORDUCT FOCUS DRUGS & PHARMACEUTICAL CHEMICALS MACHINERY & INSTRUMENTS TRANSPORT EQUIPMENTS TELECOM SERVICES INFORMATION TECHNOLOGY
  23. 24. SOUTH AFRICA
  24. 25. SOUTH AFRICA SALIENT FEATURES <ul><li>THE LAND OF DIAMONDS / METAL /MINERAL SOURCES. </li></ul><ul><li>45% OF TOTAL ELECTRICITY OF AFRICA CONSUMED. </li></ul><ul><li>45m. MARKET SIZE WITH HIGH PURCHASING POWER. </li></ul><ul><li>3% OF INDIAN POPULATION HAVING REPRESENTATION OF 13% IN MINISTRY. </li></ul><ul><li>MANY SUCCESS STORIES AFTER 1994. </li></ul>
  25. 26. MAJOR HIGHLIGHTS <ul><li>TRADE PARTNERS:USA, UK, FRANCE, JAPAN, SOUTH KOREA, CHINA </li></ul><ul><li>LIFTED SURCHARGES FOR THE PAST 5 YEARS </li></ul><ul><li>CAPACITY OF IMPORTS $46b </li></ul><ul><li>PAYMENT TERMS: 90-120 days D/A </li></ul><ul><li>PROMOTION THROUGH T.V. NEWSPAPER, RADIO, MAGAZINES. </li></ul><ul><li>DOMESTIC CONSUMPTION O N THE UPWARD GROWTH </li></ul>
  26. 27. EXPORTS FOR SUCCESS IN SOUTH AFRICA <ul><li>DRUGS,PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>INORGANIC / ORGANIC / AGRO CHEMICALS </li></ul><ul><li>DYES / INTERMEDIATES & COAR TAR CHEMICAL </li></ul><ul><li>COSMETICS / TOILETRIES ETC. </li></ul>
  27. 28. MAURITIUS SALIENT FEATURES <ul><li>FREE MARKET ECONOMY </li></ul><ul><li>A DYNAMIC PRIVATE SECTOR </li></ul><ul><li>MODERN INFRASTRUCTURE </li></ul><ul><li>POLITICAL STABILITY </li></ul><ul><li>MARKET FRIENDLY POLICY </li></ul><ul><li>HIGH LITERACY RATE </li></ul><ul><li>SUCCESS OF FREEPORT, OFFSHORE AND BANKING OPERATIONS </li></ul>
  28. 29. MAURITIUS <ul><li>THE ISLAND IS EQIVALENT TO TWO SUBURBS OF MUMBAI IN POPULATION </li></ul><ul><li>HIGHLY LITERATE, WELL PLANNED, STRUCTURED AND SYSTEMATIC BUSINESS COMMUNITY. </li></ul><ul><li>INCLINED TO BE IN THE FOREFRONT IN DEVELOPMENT PROCESS AMONGST ALL THE COMESA NATIONS. </li></ul><ul><li>COMMON LINGUAL AND SAFE BUSINESS CENTRE FOR INDIANS </li></ul>
  29. 30. CURRENT TREND <ul><li>LOW INFLATION @ 6.5% </li></ul><ul><li>MANUFACTURING AND TOURISM OFFSET THE LOSS DUE TO SUGAR </li></ul><ul><li>SIX LAKH TOURISTS PAID VISIT AND SPENT 10 DAYS AVERAGE </li></ul><ul><li>REGIONAL TRADE IS ON FAST GROWTH </li></ul><ul><li>MASSIVE INVESTMENT IN THE FREEPORT </li></ul><ul><li>STRATEGICALLY LOCATED FOR CHANNELISING SHIPMENTS </li></ul>
  30. 31. INDIA & MAURITIUS <ul><li>AVOIDANCE OF DOUBLE TAXATION AGREEMENT IN AUGUST 1982 </li></ul><ul><li>INDIA TECHNOLOGY DIFFUSION SCHEME 1999 </li></ul><ul><li>INDIA IS THE LARGEST EXPORTER TO MAURITIUS </li></ul><ul><li>AJANTA PHARMA, ARVINDOVERSEAS, INDIAN OIL CORPORATION, LIC, TCIL, SBI, BOB HAVE VENTURED ALREADY </li></ul>
  31. 32. MAIN ITEMS WITH MAURITIUS <ul><li>YARN, GARMENTS AND FABRICS </li></ul><ul><li>PHARMACEUTICALS / DISPOSABLES </li></ul><ul><li>ENGINEERING ITEMS </li></ul><ul><li>CERAMIC TILES / HARDWARE </li></ul><ul><li>MOPEDS </li></ul><ul><li>JEWELLERY </li></ul><ul><li>SEAFOOD </li></ul><ul><li>SPICES </li></ul><ul><li>PLASTIC ITEMS </li></ul>
  32. 33. MAURITIUS CURRENT DEVELOPMENT <ul><li>BALANCED INCENTIVES TO INVESTORS </li></ul><ul><li>INDIAN IT GIANTS ENTER THROUGH MAURITIUS TO OTHER SSA </li></ul><ul><li>MAURITIUS PLAYS A LEAD ROLE IN MANY INTIATIVES </li></ul><ul><li>PEACEFUL, COMFORTABLE AND KNOWN CENTER FOR BUSINESS </li></ul>
  33. 34. TANZANIA <ul><li>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 </li></ul><ul><li>VAST RESERVES OF IRON ORE,COAL, URANIUM,PHOSPHATES, N. GAS, DIAMONDS AND GOLD </li></ul><ul><li>FAST GROWING INDUSTRIAL SECTOR WITH 27%. </li></ul><ul><li>IDEAL LOCATION TO START BUSINESS </li></ul><ul><li>DAR ES SALAM KNOWN FOR THEIR EXISTENCE FOR LONG </li></ul>
  34. 35. TANZANIA <ul><li>MAIN PORTS: ZANZIBAR AND DAR A SALAM </li></ul><ul><li>IMPORTS CROSSED $2.5b </li></ul><ul><li>SINGLE COLUMN TARIFF APPLICABLE. </li></ul><ul><li>HIGH GRANDS FROM U.N. </li></ul><ul><li>USUAL TERMS OF PAYMENT 60-90 L/C CREDIT </li></ul><ul><li>CURRENCY MADE CONVERTIBLE IN 1996 </li></ul><ul><li>TANZANIANS – POLITE, HELPFUL AND WARM PEOPLE </li></ul><ul><li>BUSINESS DEALS: HAVE PATIENCE & FLEXIBILITY </li></ul>
  35. 36. PRODUCTS FOR TANZANI A <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>DYES /INTERMEDIATES & COAL TAR CHEMICALS </li></ul><ul><li>INORGANIC / ORGANIC / AGRO CHEMICALS </li></ul><ul><li>COSMETICS / TOILETRIES ETC </li></ul><ul><li>PAINTS / ENAMELS /VARNISHES ETC </li></ul>
  36. 37. KENYA <ul><li>BORDERED BY ETHIOPIA & SUDAN, SOMALIA & INDIAN OCEAN </li></ul><ul><li>KENYAN AIRWAYS – REGULAR FLIGHTS TO MANY COUNTRIES </li></ul><ul><li>6 LAKHS INDIAN POPULATION AND KEY PLAYERS IN KENYA </li></ul><ul><li>VAST RESOURCES, SAFARIES, SUPER MARKETS </li></ul><ul><li>BANK OF BARODA SETUP FIRST OVERSEAS BRANCH IN KENYA - A GREAT SUCCESS STORY </li></ul>
  37. 38. EXPORTS TO KENY A <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>INORGONIC / ORGANIC/ AGRO CHMICALS. PAINTS / ENAMELS / VARNISHES ETC </li></ul><ul><li>DYES / INTERMEDIATES & COAL TAR CHEMICALS </li></ul><ul><li>COSMETICS / TOILETRIES ETC </li></ul><ul><li>RESIDUAL CHEMICAL & ALLIED PRODUCTS </li></ul>
  38. 39. KENYA - ESTABLISHED INDIAN STRONGHOLD CLOTHING & TEXTILES ELECTRICAL EQUIPMENT CANNED FOODS PRINTING & PUBLISHING TRANSPORT EQUIPMENT PHARMA DRUGS BAKERY PRODUCTS PLASTIC & RUBBER KITCHEN ITEM
  39. 40. PROMOTIONAL ADVANTAGES <ul><li>FREQUENCY OF LINERS AND FLIGHTS </li></ul><ul><li>PROXIMITY TO US </li></ul><ul><li>SURROUNDED BY MANY LANDLOCKED COUNTRIES. </li></ul><ul><li>CONSUMPTION PATTERN AS GOOD AS SOUTH AFRICA </li></ul><ul><li>INVITATION FOR BUSINESS DEALS APPRECIATED </li></ul><ul><li>PROMOTION THROUGH AGENTS </li></ul>
  40. 41. NIGERIA - SALIENT FEATURES <ul><li>HUGE POTENTIAL: HUMAN, FOREST & TRADE </li></ul><ul><li>INDIANS PROSPERED IN NIGERIA </li></ul><ul><li>VIOLENCE LEVEL IS ON DECLINE </li></ul><ul><li>CROSS BORDER TRADE W ITH NEIGHBOURS </li></ul>
  41. 42. EXPORT POTENTIAL IN NIGERIA <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEM </li></ul><ul><li>INORGANIC / ORGANIC/ AGRO CHMICALS </li></ul><ul><li>PAINTS / ENAMELS / VARNISHES ETC </li></ul><ul><li>DYES / INTERMEDIATES & COAL TAR CHEMICALS, COSMETICS / TOILETRIES </li></ul><ul><li>RESIDUAL CHEMICAL & ALLIED PRODUCTS </li></ul>
  42. 43. EXPORTS TO GHAN A <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEM </li></ul><ul><li>INORGANIC / ORGANIC/ AGRO CHMICALS </li></ul><ul><li>PAINTS / ENAMELS / VARNISHES ETC </li></ul><ul><li>DYES / INTERMEDIATES & COAL TAR CHEM </li></ul><ul><li>COSMETICS / TOILETRIES ETC </li></ul>
  43. 44. ETHIOPIA <ul><li>BORDERED BY RED SEA, KENYA, SOMALIA, DJTBOUTI AND SUDAN </li></ul><ul><li>90%OF THE POPULATION DEPENDS ON AGRICULTURE </li></ul><ul><li>60% OF EXPORT EARNINGS OF CAFFEE </li></ul><ul><li>IMMENSE HYDRO ELECTRIC POTENTIAL </li></ul><ul><li>HUGE UNTAPPED POTENTIAL </li></ul>
  44. 45. EXPORTS TO ETHIOPIA <ul><li>DRUGS, PHARMACEUTICALS & FINE CHEMICALS </li></ul><ul><li>COSMETICS / TOILETRIES ETC. </li></ul><ul><li>INORGANIC / ORGANIC / CHEMICALS. </li></ul><ul><ul><ul><ul><ul><li>AND </li></ul></ul></ul></ul></ul><ul><li>PRIMARY & SEMI FINISHED IRON & STEEL. </li></ul><ul><li>PLASTIC & LINOLEUM PRODUCTS. </li></ul><ul><li>MACHNIERY & INSTRUMENTS. </li></ul><ul><li>MANUFACTURES OF METALS. </li></ul><ul><li>TRANSPORT EQUIPMENT. </li></ul><ul><li>PAPER / WOOD PRODUCTS. </li></ul><ul><li>MANMADE YARN, FABRICS, MADEUPS. </li></ul><ul><li>ELECTRONIC GOODS. </li></ul><ul><li>GLASS / GLASSWARE/ CERAMICS / REFRACTORIES / CEMENT. </li></ul><ul><li>RUBBER MANUFACTURED PRODUCTS EXCEPT FOOTWEAR. </li></ul><ul><li>RMG COTTON INCLUDING ACCESSORIES. </li></ul><ul><li>TOBACCO UNMANUFACTURED. </li></ul><ul><li>RICE ( OTHER THEN BASMATI ). </li></ul><ul><li>LEATHER GOODS. </li></ul>
  45. 46. MADAGASCAR <ul><li>(COMOROS REPUBLIC AND ISLAND OF MAYOTTE) </li></ul><ul><ul><li>LIBERALISED IMPORT SYSTEM INTRODUCED </li></ul></ul><ul><ul><li>FRANCS / DOLLARS TRANSACTED </li></ul></ul><ul><ul><li>IMPORT DUTY RANGING FROM 0 – 30% </li></ul></ul><ul><ul><li>DEMAND EXISTING FOR ESSENTIAL ITEMS </li></ul></ul><ul><ul><li>DIRECT SHIPMENT AVAILABLE </li></ul></ul><ul><ul><li>SIGNIFICANT TRADE FLOW FROM NEIGHBOURING COUNTRI ES </li></ul></ul>
  46. 47. Indian Business in Africa <ul><li>Indian companies are doing business in more than </li></ul><ul><li>20 African countries </li></ul><ul><li>Bharti Airtel – US$ 10.7 billion acquisition of </li></ul><ul><li>Kuwait based Zain Group’s African telecom </li></ul><ul><li>TATA group, Reddy’s grp invested over $6 billion </li></ul><ul><li>Others- Videocon, Suzlon, Godrej, Mahindra , UB </li></ul><ul><li>group, Cipla, NIIT, Kirloskar and Essar </li></ul>
  47. 48. Indian Business in Africa <ul><li>Kenya – Indian companies re involved in wide range of </li></ul><ul><li>sectors – Pharma, financial services, software & printing </li></ul><ul><li>In Ethiopia – active in agriculture, engineering, Pharma & </li></ul><ul><li>Consultancy </li></ul><ul><li>Sudan – Oil and Gas </li></ul><ul><li>SA – little Indian direct investment (1.4%) Industries </li></ul><ul><li>present are mining ( Vedanta, Arcelor Mittal), steel (TATA) </li></ul><ul><li>Pharma (Reddy’s, Ranbaxy and vehicles (TATA, Mahindra) </li></ul>
  48. 49. Indian Business in Africa <ul><li>Kirloskar developed pumping station along the </li></ul><ul><li>Nile in Egypt </li></ul><ul><li>TATA $ 1.6 billion investment in Tourism, mining, </li></ul><ul><li>automobiles, energy, and telecommunication </li></ul><ul><li>particularly in E.Africa where Mauritius is the main </li></ul><ul><li>host of Indian FDI – accounts for 70% of total flows </li></ul><ul><li>into the continent </li></ul>
  49. 50. MAJOR CHALLENGES AND RISKS PAYMENT CARGO MOVEMENT NO RIGHT INFORMATION BANKING PRACTICE POLITICAL RISK HIGH DUTY CORRUPTION
  50. 51. BUSINESS PRACTICES BENEFITS : RISKS : DIRECT EXPORTS THROUGH AGENTS WITHOUT AGENTS THROUGH TENDER
  51. 52. THROUGH LOCAL PARTNER EXCLUSIVE 100% OWNERSHIP J.V PARTNER
  52. 53. MANUFACTURING IN SSA SUPPLY RAW MATERIAL ADD VALUE SEND TO OTHER SSA COUNTRIES
  53. 54. MANUFACTURING & TRADE MANUFACTURING OF FEW RANGES TRADING OF FEW RANGES ESTABLISH BRAND NAME
  54. 55. COVER RETAIL OUTLETS SEND ASSORTED PRODUCT RANGES DISTRIBUTE ONLY TO RETAIL OUTLET
  55. 56. OPERATE THROUGH FREE PORT STOCK THE GOODS DESPATCH TO DESTINATIONS COLLECT MONEY
  56. 57. GENERAL BUSINESS PRACTICES <ul><li>L / C IS UNATTRACTIVE </li></ul><ul><li>CREDIT REPORT DOES NOT GIVE TRUE PICTURE </li></ul><ul><li>BIG PLAYERS KEEP LOW PROFILE </li></ul><ul><li>CHINA EXPANDS IN A BIG WAY </li></ul><ul><li>NO UNIFORM BUSINESS DEALS </li></ul><ul><li>THEY TEST OUR PATIENCE </li></ul>
  57. 58. HOW TO DO BUSINESS WITH THEM <ul><li>STAGE -1: PROSPECT RIGHT PERSON WITH MONEY / </li></ul><ul><li>WILLINGNESS / MERIT / CONTACT </li></ul><ul><li>STAGE -2: INVITE TO INDIA TO UNDERSTAND MORE & </li></ul><ul><li>EVALUATE. </li></ul><ul><li>STAGE -3: TRIAL ORDER WITH COMMITMENT </li></ul><ul><li>STAGE -4: MAKE OUR PRESENCE IN SSA </li></ul><ul><li>STAGE -5: BUILD ONE OR TWO PLACES STRONG – </li></ul><ul><li>THEN SPREAD </li></ul>
  58. 59. MARKET APPROCH TRADE FAIRS / EXHIBITIONS BUYER / SELLER MEET CATALOGUE SHOW
  59. 60. <ul><li>NEVER,EVER SHIP THE GOODS WITHOUT ECGC COVER (ATLEAST RESTRICTED ) TO SAFEGUARD OURSELVES </li></ul>
  60. 61. HIGH DEMAND ITEMS AND METHOD OF OPERATION <ul><li>GOVT. PROCUREMENT : BEST ROUTE TO ENTER </li></ul><ul><li>FOOD, HEALTH & SAFETY ON PRIORITY </li></ul><ul><li>IMPORT LICENSE NOT REQUIRED FOR MANY ITEMS </li></ul><ul><li>BEST CENTRE TO START LABOUR INTENSIVE ITEMS </li></ul><ul><li>BILL BOARDS / POSTERS / NEWSPAPER / T.V./ RADIO WITH WESTERN TOUCH </li></ul>
  61. 62. MARKET APPROACH TRADE FAIRS / EXHIBITIONS DELEFATION DIRECT VISIT TRADE BODIES FREE PORT AN OPPORTUNITY TO SHOW THE PRODUCTS AND GAUGE THEIR INTEREST
  62. 63. STRATEGIES AND MARKET APPROACH IN COMESA Option 1 Indian Manufacturer Appoint local agents A B C DISTRIBUTORS
  63. 64. OPTION 2 Indian Manufacturer Regional representative (Principals) Market 1 Market 2 Market 3
  64. 65. Option 3 Indian Manufacturer Tender Specialist Private Distributor Govt. Supply Retail
  65. 66. OPTION 4 Indian Company Partial Manufacturing Center Import from India Manufacture Items Have the Market Control
  66. 67. OPTION 5 Indian Company with Brand Regional strong marketing group Exclusive Tie - up Just Facilitate
  67. 68. OPTION 6 Indian Manufacturer Well established marketing Co. Do contract manufacturing on his brand Don’t bother what he does
  68. 69. FUNDAMENTAL POLICIES FOR CLINCHING BETTER DEALS <ul><li>DON’T BE A SHEEP; BE A TIGER </li></ul><ul><li>ONE STRENGHT SHOULD BE POWERFULL: SOURCING / SELLING </li></ul><ul><li>REMOVING TRADER’S ATTITUDE </li></ul><ul><li>CAUTION ALWAYS ON TERMS </li></ul><ul><li>ALL THE PROMISES NOT TO BE TAKEN </li></ul><ul><li>EVERYONE SAYS WITH INDIAN EXPERIENCE: BUT NOT TRUE </li></ul><ul><li>EVERY BUYER PRIORITISE HIS SAFETY ONLY </li></ul>
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