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    Africa Has Unlimited Business Opportunities And Needs To Be Developed.

    2010/9/21 15:51:00 90

    African Development Survey


      

    Africa

    It is one of the key areas for China to diversify its market.

    In recent years, trade between China and Africa has been developing rapidly. For the first time, it exceeded $10 billion for the first time last year (the main trading partners are South Africa, Egypt, Nigeria, Sultan, Angola, Algeria, Equatorial Guinea, Cote d'Ivoire, Morocco and other countries).


    The demand for industrialization in Africa is conducive to investment and construction. More and more foreign goods are pouring in, especially the entry of a large number of cheap and good products in China, which has caused some impact on the African market. Therefore, some African countries seem reluctant to make foreign trade in their countries.

    This has increased the difficulty of Chinese development in these countries.

    North Africa's Morocco, Tunisia and Algeria, South Africa's South Africa, Botswana, Namibia and Angola have taken corresponding control measures.

    As a result, African countries want Chinese enterprises to invest directly in their countries, so as to bring them urgently needed technological equipment and management to help them industrialize and solve the unemployment problems that all governments are suffering from.

    {page_break}


    Africa is the only thing to wait for.

    Development

    The big market.

    According to statistics, the total volume of import and export trade in Africa is 300 billion US dollars every year. It is estimated that the market will increase by 3% every year.

    African countries are highly complementary to China economically. Most countries have low industrialization level, high industrial product prices, and lower industry and technology gradient than China. They are the best areas for the pfer of Chinese products, equipment, technology and capital, and are expected to achieve substantial returns.

    The trade potential between China and Africa is huge, and there are many opportunities for Africa's trade. The opportunity comes from the complementarity between China and African economies, that is, complementarity in resources, industry, trade and market.

    Therefore, we have constantly seen that many Chinese enterprises, especially those with flexible operation mechanism, have achieved some success in Africa.

    They operate in Africa or in stores, or engage in import trade, or both, from domestic containers to wholesale or retail countries.

    Although competition is becoming increasingly fierce, prices are becoming lower and profits are relatively reduced, but profits are considerable compared with domestic ones.


    Many African countries do not have industry and processing industry, nor do they have heavy industry.

    Imports of industrial goods, daily necessities and office supplies are all imported. African countries have no import restrictions and free trade, so long as they pay taxes, they can import.

    If the semi-finished products, spare parts, spare parts and raw materials of China's heavy industry and industry are exported to Africa for deep processing and assembly production, they will get more substantial returns.

    So Africa is not without business. The key is whether you can choose a good country and choose a good product.

    To do this, the best way is to go to Africa for field visits, choose a country to stay for 1-2 months, and realistically understand what products in the country have their own advantages. It is often unreliable to understand the market situation of a product in a country in Africa through hearsay.


    Experience and know-how in Africa. Many African countries are almost entirely dependent on imports of medicines and daily necessities because of backward industry, and most goods are expensive in the market.

    African traders tend to make small orders, many varieties, urgent goods, and buy goods or sell on credit.

    Africans like to buy goods, they do not want to open letters of credit, but hand in hand, delivery on one hand.


    Therefore, only in view of this situation, can we do well in African Trade by adopting flexible operation.

    In this regard, the practice of Zhejiang businessmen is worth learning. They first have a simple understanding of Africa, determine which country to go to, and then go to the countries concerned immediately.

    Investigate

    If the market can, organize the supply and dispatch of the container immediately.

    {page_break}


    Some African countries have limited funds and limited strength, so it is difficult to accept payment by letter of credit in trade contacts.

    In order to facilitate business pactions, if the other party is a better credit client, payment can be made by payment of D/P by 25%. Local trade companies are set up, bonded warehouses are set up, and spot sales are sold, and payment is made in two ways, which conforms to local business practices and can be avoided by the fact that they are unable to recover money.

    At the same time, Chinese people can bear hardships and stand hard work and do pioneering work in Africa.

    They go on the streets and actively sell, or wholesale and retail, establish networks; or seize the opportunity to participate in the exhibition, or set up shop points to the surrounding radiation.

    It is these efforts that make many products in China become household names in Africa.

    Although India and Pakistan and Lebanese also operate Chinese products, Chinese factories still have a strong advantage if they set up direct sales in Africa.


    With the help of the state's support policy, our enterprises can get loans from the Chinese government to invest in the medium and long term loans and working capital loans. We can get the loan discount subsidy from the Chinese government, and the equipment, spare parts and raw materials can enjoy the export tax rebate granted by the Chinese government.

    In order to support small and medium-sized enterprises to develop the international market, the former Ministry of foreign trade and Economic Cooperation issued the implementation rules for the management of international market development funds for small and medium-sized enterprises.

    Our enterprises can get the funds needed to visit, tender, participate in the exhibition, training and so on in Africa. We can also get the subsidy for the technical quality certification and the environmental standards.


    The state has introduced overseas processing trade policies, including capital incentive policies:


    1. special funds should be allocated from the central foreign trade development fund to support overseas processing and assembly projects.


    2. enterprises that carry out materials processing and assembling businesses abroad can receive financial support from foreign aid loans and joint venture cooperative projects.


    3., in order to encourage the expansion of production scale, foreign materials processing and assembly enterprises are allowed to make profits in the 5 years after the profits are enriched.


    4. banks will give priority to export credit for equipment, technology, spare parts and raw materials needed for processing and assembling export abroad.


    5. the foreign exchange loans that are applied for approval by the enterprises with materials processing and assembly projects shall be executed according to normal loans, and the central foreign trade development fund will discount interest on export enterprises by 2 percentage points.

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