Export platform gives African exports direct access to Chinese consumers
Standard Bank’s second Africa-China export matchmaking session for 2022 saw African coffee producers from Ethiopia, Kenya and Tanzania, and South African wineries exhibit their brands to over 50 pre-selected Chinese importers gathered at the Hunan International Conference and Exhibition Centre in Changsha, China.
Organised by the Hunan Department of Commerce in conjunction with Standard Bank and the Industrial and Commercial Bank of China (ICBC), these hybrid virtual-physical export promotion events “represent a signature capability in Standard Bank’s broader Africa-China Trade Solution, linking African producers directly to the heart of China’s booming domestic consumer market,” says Philip Myburgh, Head of Trade at Standard Bank’s Business and Commercial Client’s division.
Since the July Africa-China coffee and wine matchmaking session formed part of the Hunan Cross-border E-commerce Trade Fair, “our African exporters were also exposed to other Chinese exhibitors seeking to augment and scale their e-commerce and digital trade platforms with a broader global consumer retail offering,” added Myburgh.
As China’s consumer behaviour shifts, coffee and wine consumption is booming, sustained by an increasingly discerning domestic market seeking quality and value from the world’s best brands.
Connecting coffee and wine producers from Africa directly with Chinese importers not only improves margins for Africa’s exporters, but also allows them to develop independent and globally recognised brands. Most importantly, however, the blended virtual-physical nature of these matchmaking events allows African producers and exporters to deal directly with accredited Chinese importers from the convenience of their own offices, farms or homes without having to travel to China, arrange visas, find accommodation or run the risk of not finding quality off-takers,” says Myburgh.
At the same time, the Chinese importers gathered at the Hunan International Conference and Exhibition Centre can view, touch and taste each African exporters’ produce – presented to them live and in Chinese, by qualified coffee and wine experts.
Producers and importers are then assisted through 20-minute, translator-supported exchanges agreeing terms of trade and establishing the detail of transactions. During the July matchmaking sessions, African exporters potentially concluded export deals with up to 50 Chinese importers, “without any cost and without having to leave their premises in Africa,” adds Myburgh.
The direct relationships between African producers and Chinese importers, which Standard Bank and ICBC’s hybrid virtual-physical matchmaking sessions enable, provides Chinese importers with access to a readily available supply of quality, signature African coffee brands and globally acclaimed South African wines. “This direct supply proposition is positioning the Chinese coffee and wine industries to confidently meet the country’s growing domestic demand for these increasingly aspirational products,” says Myburgh.
Linking African coffee and wine producers with importers from across China gives concrete substance to the work that ICBC and Standard Bank have done over the last decade building one of the world’s most effective Africa-China Trade Solutions.
George Mbwana, coffee quality manager for Lima Kwanza Coffee in Tanzania believes that “hybrid virtual-physical Africa-China export matchmaking sessions provide an incredible platform for African producers to directly access the world’s second largest economy.”
Similarly, Andrew Ing of Gun Bay Wines in South Africa recognises “the phenomenal marketing advantage that Standard Bank’s Africa-China Trade Solution presents family-owned wineries otherwise unable to afford or manage the costs and marketing structures associated with reaching so many potential Chinese importers.”
The next event being hosted by Standard Bank and ICBC’s Africa-China Trade Solution takes place in November 2022, when Standard Bank takes African agri-producers and their products to the 5th China International Import Expo (CIIE). Held at China’s National Exhibition and Convention Center in Shanghai, China, the CIIE is China’s premier expression of its commitment to global trade, including its aim to achieve US$ 300 billion in African imports over the next three years. In addition, President Xi Jinping recently pledged a further US$10 billion in trade finance support for African exports.
African Agri-producers and exporters seeking direct access to China’s domestic market through Standard Bank’s Africa-China Trade Solution should “reach out to their local Standard Bank relationship manager or contact Standard Bank Trade at africachina@standardbank.co.za ” concludes Myburgh.