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Export Awareness

Export Awareness. Is exporting for me?. Purpose of this Export Awareness workshop. At the end of this workshop you will be able to answer: Is exporting for me? If so, h ow do I go about it?. What this Export Awareness workshop will cover. Why exporting is important for Botswana

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Export Awareness

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  1. Export Awareness Is exporting for me?

  2. Purpose of this Export Awareness workshop At the end of this workshop you will be able to answer: Is exporting for me? If so, how do I go about it?

  3. What this Export Awareness workshop will cover Why exporting is important for Botswana What is happening in the global environment and how it affects trade Botswana's economic and international trade performance Exporting defined Obstacles to exporting The export cycle and the role of service providers Where to get further information on exporting and how to develop your business The Botswana Exporter Development Programme (BEDP) its objectives and next steps

  4. Review of Botswana’s Export Performance

  5. List of Botswana's major export markets since 2001

  6. Exporter Dynamics

  7. Exporting! What is it all about?

  8. The Advent of Exporting Exporting started with trading across nations…… Bartering. The discovery of the “new world” and colonization. The Chinese, Irish, Dutch, Spanish, English, Africans, etc. Trading of Competitive Advantage . Exporting is part of International Trade and is governed by world organizations like WTO, ICC, UNCTAD, ITC, WCO, OECD, etc.

  9. Exporting…..Introducing the concept…..cont. Businesses, large and small, have become part of the Global Supply Chain System ……. Growth in global trade driven by the internet and subsequently reduced transport costs in 1990’s Entrepreneurs need to understand how Global Supply Chain Systems work…..

  10. Exporting…..Introducing the concept. Exporting is about selling and supplying: the Right Products/Services at the Right Place, at the Right Time, and at; at the Right Price….. …. to a Buyer based outside of Botswana.

  11. Exporting…..Introducing the concept…..cont. Practically, Exporting involves: Production of Products and/or Services International Marketing Costing and Pricing for international selling International Logistics and Transportation International Legal Issues International Banking

  12. The 4 Contracts The Contract of Sale The ProForma Invoice Contract of Carriage Road Consignment Note Payment Contract Letter of Credit Contract of Insurance Insurance Policy Exporting defined…..

  13. Exporting…..Introducing the concept…..cont. Businesses, large and small, have become part of the Global Supply Chain System ……. Growth in global trade driven by the internet and subsequently reduced transport costs in 1990’s

  14. Export Myth… “I’m too small to be an Exporter!”No, you are not!

  15. Export Myth…….“Exporting is too complicated!!”It can seem that way, but remember that you do not have to do everything yourself.

  16. Obstacles to Exporting Botswana far from large rich markets The inland shipping cost to South African port Production capacity The strong and volatile Pula exchange Access to working capital Letters of credit take a long time to set up. Non-tariff barriers (NTB) and BEE requirements-limiting-access to the South African market. Standards do not support exporting

  17. How can your business grow? Trade locally and in other towns and cities in Botswana Trade locally and export into a single market Trade locally and export into 2 or more markets Trade locally and invest production in exiting export markets

  18. The Global Environment Or The International Marketing Environment

  19. The Global Environment: • Globalisation is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. • The world is getting smaller • Consequences of globalisation: • Trade • Investment • Migrations • Causes of globalisation - technology; • Transport • Communication

  20. The Global Environment: Population World population 1500 World population 1900 World population 2050 Source: http://www.worldmapper.org The world population is growing: As global demographics change so do market opportunities

  21. MAJOR INTERNATIONAL TRADE RISKS

  22. Export Readiness

  23. Are you Export Ready? The key issues regarding export readiness: are: Do I understand exporting requires total commitment ?? Am I offering the Right Product /s to the market? What level of marketing skills and experience does the business have? Do I have the necessary Production Capacity to meet increased market demand for my product/s? Can I quickly increase my company’s Production Capacity for the export market? Do I have /access to Financial Resources to develop and drive exports?

  24. Success story 1 Focus on why the firm became an exporter

  25. The Export Cycle

  26. The Basic Export Cycle Study enquiry and determine feasibility to export. Prepare and send Pro-Forma Invoice to Importer. The Importer orders the goods as quoted, hopefully. Manufacture/prepare stock and quantities ordered in time for delivery as specified in L/C Organize and arrange transportation and in insurance Other relevant documentation e.g. Certificate of Origin. Load the goods as booked and scheduled Fax non-negotiable docs to Importer so that they can pre-clear the goods Send original documents in 2 or 3 batches to the Importer. NB. Export payment can take place at any stage of the cycle as agreed by the Exporter and Importer Confirm receipt of goods by Customer Confirm the Customer is satisfied

  27. CUSTOMS INSOUTH AFRICA 3 Appoint agent? Promote product 2 Research markets, identify standards, find buyers 1 Decide if export ready Pro-Forma Invoice or quotation CARRIER Goods Produced SHIPPING / FWD AGENT Payment Check price, delivery Documents Goods in transit Documents Order Documents Enquiry Documents IMPORTER FOREIGN MARKET CUSTOMS IN IMPORTING COUNTRY EXPORTER BOTSWANA BASIC EXPORT SEQUENCE

  28. The Role of your Freight Forwarder • With international transport growing increasingly complex and specialised, Exporters increasingly look to Freight Forwarders to arrange and supervise the transport of goods. • Freight forwarders specialize in every aspect of shipping: • determining the applicable costs of shipping, helping you with your export quotation • packing and marking, • insurance and documentation, • to transportation and tracking. • The new Exporter relies on the expertise of the Freight Forwarder in order to ensure that the goods reach the final destination.

  29. The Role of your Bank Your bank will help you to: Assess the payment risks associated with your export opportunity Advise you on how to eliminate or manage the risk Advise you of the relevant costs for securing you export payment opportunity Provide you with credit finance so you can process your export Negotiate and secure payment guarantees with the bank of your Buyers Facilitate transfer of export payment into your bank account

  30. So, you want to export!! Where do you start?

  31. How to Become an Exporter Building the capabilities and export strength of your business entails: Registering the business as an Exporter Developing the best product/s to conquer the markets with Developing in-house market development skills and expertise Developing the necessary production capacity of your business Developing financial reserves and good links with financial institutions Attending export training to develop exporting skills!!! Developing an Export Plan

  32. To export or not to export????? That is the question???

  33. THANK YOU Greg Blose bloseg@zamandelu.co.za

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