Suppose you have a great product, a great story and a solid market share domestically. In that case, you may want to consider foreign trade. Whether you are exporting from South Africa, Botswana, Eswatini, Lesotho, Mozambique or Namibia, you could potentially have a massive impact on your country and economy. This article focuses on four advantages of selling your products or services abroad.
#1 Foreign Trade is Great for Business Expansion and Domestic Competitiveness
Business expansion into foreign markets not only increases overall sales and revenue but lowers unit costs through increased manufacturing activity. Thus, through economies of scale, foreign trade could make your product more competitive both domestically and abroad.
#2 Spread your Risk
Exporting from South Africa, Mozambique, or another SACU country allows you to spread risk across multiple markets. For example, if local demand is decreasing owing to challenging economic conditions, this loss in sales could be offset by demand in foreign markets experiencing economic growth. While demand in your local economy may be reducing, a neighbouring country or even a country thousands of kilometres away could be seeing a surge in demand.
#3 Engaging in Foreign Trade Exposes you to Industry Trends
Competition often drives innovation, and this is especially true in the international market. Engaging in foreign trade and competing with products manufactured in foreign markets will expose your company to new ideas, innovations, and ways of doing business, allowing you to increase your knowledge and efficiency.
#4 Engaging in Foreign Trade has a Massive Social Impact
Exporting from South Africa, another SADC country, or Mozambique has a significant social impact. Engaging in foreign trade and exporting your products to different markets earns valuable foreign currency, strengthens the local economy, creates numerous jobs, and allows you to offer your local customers a more competitive product. Export-led growth has allowed multiple countries around the world to increase the living standards of their populations.
Africa does not need aid; it needs trade! However, engaging in foreign trade can be risky, costly and complex. In order to realise the benefits of selling your products abroad, you need the knowledge, tools and support to ensure success. Thankfully, Trade Forward Southern Africa, in collaboration with the International Trade Institute of Southern Africa, has created the TFSA School of Export to get you started on your export journey. Join our community, and let’s grow Africa together! Click the links below and sign up for FREE.
To sign up to the School of Export CLICK HERE.
If you already have a profile, CLICK HERE to login to begin the module.