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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
http://images.google.com/imgres?imgurl=http://rst.gsfc.nasa.gov/Intro/barcode.jpg&imgrefurl=http://rst.gsfc.nasa.gov/Intro/Part2_6.html&h=224&w=300&sz=35&tbnid=fkCWwd-Rg0u3WM:&tbnh=87&tbnw=116&prev=/images?q=bar+code&start=1&sa=X&oi=images&ct=image&cd=17/31/2019 Doing Business in West Africa Vanessa Adams USAID Trade Hub
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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
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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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