::: Successful Participation by saibl Clients at the Zimbabwe International Trade Fair :::
Seven saibl clients participated in the Zimbabwe International Trade Fair (ZITF) for the first time. A total 50 companies from South Africa attended the Fair in Bulawayo from 20-24 April 2010. ZITF is the premier international multi-sectoral trade event in Zimbabwe.
The clients that were directly assisted by saibl to exhibit at the event were BMZ Agencies (medical supplies and equipment), Mpilende Foods (Pty) Ltd (nutritional instant food products), Shenka Industries cc (fasteners, bolts, nuts and washers for mining and automotive use), SA Beverage Industries cc (carbonated canned soft drinks). Xchem Chemicals (Pty) Ltd (manufacturer of industrial and household adhesives and sealants) was supported by the DTI whilst Trade and Investment Limpopo supported: Divine Inspiration Trading 181 (horticultural products) and Powa Brands (nutritional instant foods).
Some of the saibl clients that attended the ZITF managed to secure orders and others used the opportunity to cement their presence in Zimbabwe. The Fair also enabled them to identify new business leads and establish contact with agents in Zimbabwe. The first-hand experience gained by exhibiting at the Fair provided clients with an improved understanding of the Zimbabwean market, with the result that some will be reviewing their entry models for participation at future events.
Saibl’s Briefings to Clients
In preparing these clients for the Fair and the way forward, saibl hosted briefing and debriefing sessions that were addressed by the Zimbabwe Consulate’s Minister Counsellor (Trade), Mrs C Zhanje. The briefing session on 12 April served to equip the clients for the trade event and the debriefing session on 6 May enabled them to share experiences, discuss the way forward and understand the Zimbabwe market. They were also briefed on the nature of further support that could be expected from both saibl and the Zimbabwe Consulate in promoting trade. The debriefing was also attended by clients that did not attend this year’s ZITF, but that are interested in gaining access to the Zimbabwe market.
Challenges, Lessons and Successes
Exhibitors identified a variety of challenges and learnt much from the experience. The most prominent of these are as follows:
- Border Post: Exhibitors that drove to Bulawayo faced delays on the Zimbabwe side of the Beit Bridge Border post. It took them about four hours to clear the border. The Minister Counsellor has agreed to take this up with relevant authorities.
- Location of Exhibitors: There was concern that exhibitors were not strategically located and grouped, as exhibitors operating in similar sectors were spread across the Fair. The suggestion was made that exhibitors in one sector should be grouped in one area at future events.
- Public Days: The public days at the Fair, whilst good for the public, tend to disrupt the smooth flow of business. Exhibitors felt that a more focused business-only event would more fruitful. Whilst most would prefer a business-only event, some companies producing consumer-backed products benefited immensely from the presence of the public during the Fair’s open days.
- Accommodation: Accommodation was a big challenge because of limited availability in Bulawayo. Most participants have learnt to book their exhibition space and accommodation soon after the current event for the ensuing one. The challenge of accommodation demonstrates the increasing level of interest in Zimbabwe and also presents opportunities for companies operating in the hotel and lodge industry.
- Payment: Companies that are interested in government projects have to be prepared for a 90-day delay in payment. However, most businesses have easy access to foreign currency as a result of the multiple currency regime and therefore experience less of an exchange risk. At present most businesses use the US Dollar.
- Due Diligence: Companies would welcome assistance in conducting a due diligence process on potential partners in Zimbabwe and have expressed the need for assistance in identifying opportunities and following up on business leads.
- Follow Up: All saibl clients that attended indicated that they would be making follow-up visits to Zimbabwe in the next 6-8 weeks. They identified opportunities that they want to convert into transactions soon.
- Investment: Security of investment is a hot issue for those wanting to invest in Zimbabwe. Zimbabwe has signed a BIPA agreement with South Africa to protect investment. The Zimbabwe Investment Centre and Zimbabwe EPZ were amalgamated to form the Zimbabwe Investment Agency, which is now a one-stop shop for investors and meant to expedite relevant procedures.
To saibl, it is clear that the sharing of information prior to and following such an event is vital to ensure the successful participation of its clients. By sharing expertise and experiences during these sessions, clients are able to learn much from each. The sessions also enabled participants to developed good business relationships with each other as South African businesses sharing common goals. These companies now also have an improved understanding of the Zimbabwean market.
In engaging the foreign trade market, no entity can expect to do it all by itself. Partnerships with key institutions help leverage resources. To this end, the good relationship established between saibl and the Zimbabwe consulate served to benefit the business community. Saibl is also well-placed to assist its clients to gain maximum benefit from their participation at trade fairs and expos such as ZITF.
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::: Workshops on Africa Trade Opportunities, Johannesburg and Durban, 25 and 28 May 2010 :::
