Nigeria has become a business-friendly nation and it’s high time we all took advantage of that. Through series of initiatives and programs, the government is currently encouraging entrepreneurs to explore the startup industry more.
What more, the government has tried to make existing laws and regulation more flexible so it also attracts foreign investors to exportable products like Cashew nuts.
Interestingly, the National Cashew Association of Nigeria (NCAN) National Publicity Secretary, Sotonye Anga is expectant that there would be a major jump from last year’s 160,000 metric tonnes of raw cashew export worth $300 million.
He, however, noted that:
- The deficit in transport infrastructure may be a problem.
- Shipping lines handle fewer agro exports.
- On-shore container-processing time was low.
- Waiting time for cashew exports at the ports is not improving as commodities stay too long before they are ferried out.
For Nigeria to realise its full export potential, Anga canvassed:
- More investment in transport infrastructure.
- The country needs more storage facilities at ports.
However, it’s not all bad news –If you have serious plans of starting your own Cashew export venture in Nigeria, here’s what you basically need to know:
Physical product startup costs a lot
Simply, you need a substantial amount of money and a warehouse to start a business like this. If you’re not a cashew farmer yourself, you will need a delivery and transportation plan. A Processing facility, means of preservation, packaging, procurement are a few more things that need to taken care of, too.
Evidently, if your Cashew exporting business is not well-executed, there’s a high chance that it will be counter-productive.
The foreign trade terrain is complicated
Of course, if you’re familiar with the field of exports, this might not be a big problem. However, if you’ve never conducted a trading business with a foreign partner, it’s best to hire or co-found your startup with a someone more experienced.
The major difficulty you might encounter is ensuring that your products meet up with technical and safety standards required by the buyer. In Nigeria, you will need lots of certificates, especially those recognized globally.
Knowledge of payment methods and contracting practices are also necessary. You might also have to give out your paperwork and logistics issues to a Logistics agency to take care of. Understand the legal systems of both your home and the targeted country. Finally, remember, you will be doing business with a foreigner who is thousands of miles aways – your contract should be air-tight.
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