Exporting goods from Africa: A beginner’s guide to global markets

Over the last few years, Africa has made an increasingly significant contribution to being a player in global trade. Whether it is cocoa from West Africa, coffee from East Africa, textiles from North Africa, or minerals in Southern Africa, the continent is rich in resources that everyone in the world depends on. Yet for several small business owners and entrepreneurs, exporting anything beyond national borders seems to be a distant dream. Long and tedious regulations, oblivion about the global markets, and logistical costs generally deter people from venturing into exports.

But exporting goods is no longer an activity reserved for multinational corporations. Globalization, digital platforms, and new trade agreements have opened many doors for African entrepreneurs, whether they are big or small. You can be a farmer, a craftsman, a fashion designer, or an agro-processor, but if you know how to work it, you can bring your goods to markets outside of Africa.

In this article, I will discuss how beginners can export goods from Africa, and a step-by-step process on how to set foot in the global market from Africa.  

Why exporting matters in Africa

Before we even get to how exports are done, it is important to discuss why. Exporting goods is more than just getting products out into the world; exporting is connecting African creativity, agriculture, and industries into the global economy. Here are some of the important aspects of exporting from Africa:

Larger market reach: Most of the time, local demand can be elusive, but exporting sets up an opportunity for international buyers, who can greatly increase prospective customers. 

Higher earnings: Exported products have higher prices compared to what they would fetch locally. For example, cocoa farmers of Ghana or Côte d’Ivoire benefit more when their products are processed and marketed internationally than when they sell them raw in the domestic markets.

Earnings in foreign currency: Exportation not only strengthens the nation itself in terms of commercial income from increases in foreign currency, but it also opens up greater possibilities for domestic firms to develop beyond domestic borders.

Diversification: It is very risky to have only local buyers. Exporting diversifies your customer base, thus reducing vulnerability to local market shifts.

Understanding the global trade landscape

Exporting is not about sending goods abroad at random; it has to do with understanding the right product, the right market, and ensuring that you are meeting international standards.

• Global needs: There is global demand for products such as African Coffee, Shea Butter, Sesame Seeds, Textiles, Gemstones, and even handmade crafts.
• Africa Continental Free Trade Area: AfCFTA, African Growth and Opportunity Act (AGOA) with the U.S., and Economic Partnership Agreements (EPAs) with the European Union make it easier for African goods to access global markets, and it results in lower tariff taxes.
• Growth in E-commerce: Marketing directly to ordinary citizens has been made possible by platforms such as Alibaba, Amazon, Etsy, and even social media marketplaces. 

Most commonly exported goods from Africa 

Africa’s strength lies in its diversity of natural resources and its creative industries. Some of the most popular types of export include:

• Agricultural produce: Coffee, tea, cocoa, cashew nuts, sesame seeds, fresh fruits, vegetables, and spices.
• Raw materials and minerals: Gold, diamonds, copper, cobalt, and oil.
• Textiles and fashion: Ankara prints, leather goods, handcrafted jewelry, and traditional garments.
• Processed foods: Palm oil, dried fish, packaged spices, and shea butter products.
• Crafts and artwork: Sculptures, carvings, paintings, and handmade crafts.

For new exporters, agriculture and craft are often the easiest starting points since they usually require little industrial processing.

Step-by-step exporting from Africa

Let’s break down how you can export from Africa step by step, in practical steps.

1. Identify the right product

There are some questions you have to ask yourself: What do I produce or have available that has steady, proven demand overseas? Keep in mind that not everything available locally is capable of generating value through exports; research is key here. Available tools include Google Trends, trade reports, and global e-commerce platforms that highlight what international consumers require.

2. Do market research

After identifying a product, investigate the target market for that product. For example, you want to export shea butter, and research shows that Europe and North America are the major trading partners for this commodity because of the beauty and skincare industry they have. Check for the regulations, price ranges, competitors, and distribution channels.

3. Register your company and obtain export licenses

You will not be able to export goods legally unless you are a registered business in your home country. Also, most African countries require the exporter to have: 

• Export licenses from the national trade ministry or the export promotion council. 
• Tax identification number (TIN) and other business registration documents. 
• Certificates of origin, confirming that your goods were produced locally. 

4. Meet international standards 

All exported goods must comply with the health requirements, safety provisions, and quality standards of the importing country. This would include, for example, phytosanitary certificates (confirming the goods are pest-free) for agricultural products, food safety certifications such as HACCP or ISO, as well as proper labeling according to destination country requirements. 

5. Packaging and branding

Packaging matters in international trade. Attractive, durable, and informative packaging can make the difference between your product being accepted or rejected. For example, if you are exporting food, the packaging should be clean and comply with laws on labeling (ingredients, nutritional values, expiration dates, etc.). 

6. Find buyers

There are many ways to reach international buyers: 

• Online marketplaces (Amazon, Alibaba, Etsy). 
• Trade fairs and expos. 
• Export promotion agencies of your country. 
• B2B websites and trade directories.

7. Logistics and shipping solutions

Decide on a means of transporting your physical products, whether by air (which is costly but faster) or by sea (cheaper but much slower). Work with freight forwarders you can trust, who understand how customs work. Ensure to prepare the following documents:

• Commercial invoice.
• Packing list.
• Bill of lading/airway bill.
• Export declaration forms.

8. Payment methods

Secure payment is necessary. Common ways that payments are made include:

• Advance payment (buyer pays before shipment).
• Letter of credit (bank guarantees payment).
• Escrow services through online platforms.

Problems of exporting from Africa

While opportunities abound, African exporters also have peculiar challenges:

• Insufficient infrastructure: Poorly developed roads, few ports, and unreliable electricity raise costs.
• Bureaucracy and red tape: Long procedures for export documentation can, in themselves, act as a deterrent to some new exporters.
• Quality control: Many small producers cannot meet the international standards.
• Access to finance: Exporting demands upfront capital to produce goods, acquire certifications, and ship them. 
• Market access barriers: Red tape, usage of tariffs and quotas, and too strict regulations in foreign markets often generate a nightmare.

Conclusion

With the right guidance, exporting from Africa is a venture that has the potential to be very profitable. A lot of the things that we produce locally and take for granted are highly sought after in many countries in the world. The good news is that I have covered all you need to get started as an exporter. Pick a product that is easily accessible at home but in high demand abroad and get started today.