The Sunday Mail
Trade Focus
Allan Majuru
INTERNATIONAL trade fairs and exhibitions have been an effective way for Zimbabwean businesses to engage potential buyers from all parts of the world.
Trade exhibitions allow companies to showcase and demonstrate their products and services, meet with industry partners and customers, study activities of competition and examine market trends and opportunities.
Traditionally, participating in international exhibitions has always presented an opportunity for local companies to create new leads, which translates to increased export sales.
In fact, most trade fairs facilitated by ZimTrade — the national trade development and promotion organisation — have seen participating companies striking good deals with companies confirming orders worth millions during and after the event.
For example, 10 Zimbabwean horticultural companies that participated at this year’s edition of Fruit Logistica, which took place in Berlin, Germany in February, generated US$6,7 million orders. Orders under negotiation were US$2,5 million.
One major benefit of these events was that they allowed for physical interaction between businesses, giving a best shot for local companies to interest buyers.
This was an avenue through which companies introduced new products onto the international market.
However, with the outbreak of the coronavirus, the year 2020 has seen most trade fairs being suspended or postponed as event organisers are looking at protecting the health interests of participants.
For companies that have had positive outcomes from trade fairs, this year has brought challenges that might negatively affect their export plans.
To address challenges associated with physical interactions, some trade fair organisers have adopted virtual interactive tools that promote business-to-business (B2B) engagements.
To complement these initiatives, ZimTrade is developing an online trading platform that will enhance engagements of local companies with international buyers as well as improve the visibility of locally produced products and services.
As the platform will be tailor-made to accommodate virtual meetings, it is envisaged that it will provide an alternative access to markets where physical trade fairs and exhibitions have been suspended.
It is highly recommended that Zimbabwean companies participate in online exhibitions and trade fairs, as this will ensure they remain in touch with international buyers in this new normal.
Covid-19 has made it possible for us to realise that “distance is past” and the new normal is that events can take place remotely.
There are several advantages that make virtual exhibitions an ideal solution during this period, which include reduced cost of preparation and participation.
While the future is uncertain, with reduced physical interaction likely going to be the “new normal” throughout this year, it is important for local companies to identify trade fairs and exhibitions that have been migrated to virtual platforms and establish which ones will increase their global market share.
Prior understanding of these virtual events will ensure that participating companies put their time and, in some cases, financial resources to good use.
Below are some examples of events that have adopted a virtual component to augment efforts that are targeted at improving engagements between sellers and buyers.
Intra-African Trade Fair
The second continent-wide trade fair was scheduled to take place from September 1 to 7 this year in Kigali, Rwanda.
However, organisers of the Intra-African Trade Fair (IATF) postponed the event to September 6 to 12, 2021.
Sectors that were earmarked to benefit from the event include horticulture, processed foods, agricultural inputs and implements, information and communication technologies, engineering, arts and crafts, mining supplies, clothing and textiles, as well as leather and leather products.
Given the enthusiasm that had been generated, an all year-round digital networking platform was established to connect buyers and sellers.
The virtual trade fair is expected to take place all year round and a virtual booth costs around US$750/year.
During the inaugural IATF, which took place in 2018 in Egypt, more than 25 Zimbabwean companies participated.
Participating companies were drawn from arts and crafts, clothing and textiles, processed foods, leather and leather products, agricultural inputs and implements, finance, corporate advisory services and FMCG (fast-moving consumer goods) sectors.
During the 2018 fair, participating companies recorded 461 business leads and orders worth around US$2,4 million.
The objective of participating in 2018, which can still be realised through virtual engagements, was to market Zimbabwe’s trade and investment opportunities, generate export orders for the country and promote Zimbabwe as a source market as well as to promote the country as a preferred investment destination.
DRC Mining Week
This is the largest mining and industrial platform in the Democratic Republic of Congo (DRC), bringing together stakeholders and interested businesses from more than 50 countries.
Participants’ objective is to showcase their products and services as well as explore the vast investment opportunities in the country.
The mining sector in the DRC is one of the largest anchors of the economy, supporting an array of mainstream and downstream economic activities.
To support mining activities, the DRC imported mining supplies worth around US$288 million in 2019, according to Trade Map.
The imported supplies in 2019, which include appliances for pipes, boiler shells, tanks, protective footwear and clothing, boring or sinking machinery and parts, and buckets, shovels, grabs and grips for machinery, provide opportunities for Zimbabwean companies.
Previously, participating Zimbabwean companies were able to interact with manufacturers, distributors and retailers in the mining sector, resulting in increased sales of their products and sales.
As a result of participating in this event, one protective clothing company was able to establish a branch in Lubumbashi.
The physical event had been scheduled for June 17 to 19, 2020 but has been postponed to October 7 to 9, 2020.
To keep conversations going and improve business linkages, the organisers have organised a series of virtual seminars, which will take place on original dates until September.
These seminars will provide a platform for local companies to establish initial contact with potential buyers who are expected to participate.
They will also form the basis for further interactions during the physical event in October.
Caminex
Caminex is Zambia’s mining, agricultural and industrial trade expo, which is positioned to increase the presence of Zimbabwean products and services into the country’s mining sector.
According to Trade Map, Zambia’s import bill for mining supplies in 2019 was around US$333 million, with the largest suppliers being South Africa, Japan, China and India.
Given Zimbabwe’s proximity to Zambia, there is room to increase the contribution of local companies to Zambia’s mining supplies import bill.
The mining activities in Zambia’s Copperbelt region provide opportunities for local companies that can supply products such as safety clothing, fast moving consumer goods, iron and steel products, electric transformers, pumps for liquids, silo maintenance and cleaning services, fruits and vegetables, and processed foods.
Last year, nine companies that manufacture products for the mines, such as engineering products, protective clothing and electrical and security products, participated and showcased their products at this event.
During the three-day event last year, a total of 715 business leads and orders worth over US$400 000 were recorded by participating companies.
This year’s event that was scheduled to take place from June 2 to 4 was postponed to the same month next year. To cover the gap, ZimTrade is organising a virtual event for sector players that will be held later this year.
Plans are also in place to include other sector players in the event so that it covers more products and services that Zimbabwean businesses can supply to Zambia.
Asia Pacific Leather Fair
The edition of the Asia Pacific Leather Fair (APLF) — Leather, Materials+ and Fashion Access show, which was initially scheduled for March 31 to April 2 this year, was postponed to March 30 to April 1, 2021.
The APLF is a global trade exhibition covering the leather supply chain from raw, crust, to finished leathers, chemicals, dyes and tanning. It can provide access for local companies into the high import bill of leather in Asia.
According to Trade Map, the Asian continent imported leather and leather products worth around US$59 billion in 2019.
Top importers in Asia, which Zimbabwe enjoys cordial relations with include China, Japan, Singapore, Korea and United Arab Emirates.
On the other hand, the Pacific Economic Co-operation (APEC) imported leather and leather products worth around US$104 billion in 2019 alone.
To support the industry on maintaining their businesses and staying connected with the community during this difficult period, APLF launched the InTouch initiative in April this year.
InTouch is a virtual sourcing event during which suppliers present their products live in front of viewer’s screen.
Each one hour InTouch event is curated to suit different sourcing requirements of buyers and provides opportunities for “question and answer” sessions, which are key in developing export markets.
Allan Majuru is ZimTrade chief executive officer.
