CAMAL attended F0CAC2018 in Beijing.

 

Forum on China-Africa Cooperation 2018 was held in Beijing where various Heads of State from Africa represented their countries in this forum. Chinese President Xi Jingping opened the forum on 3rd of September 2018. Most Africans were eager to know how their countries would benefit from these relations.  CAMAL attended the opening ceremony where Xi Jingping delivered a keynote speech at the opening ceremony of the 2018 Beijing Summit of the Forum on China-Africa Cooperation.

Africa Heads of states during FOCAC2018 in Beijing China

Chinese President Xi Jinping pledged $60 billion in financing for projects in Africa in the form of assistance, investment and loans, as China furthers efforts to link the continent’s economic prospects to its own. Some of what $60 billion will do can be broken down to:-

  • Xi said the figure includes $15 billion in grants, interest-free loans and concessional loans, $20 billion in credit lines, $10 billion for “development financing” and $5 billion to buy imports from Africa.
  • He added that he will encourage companies to invest at least $10 billion in Africa over the next three years.
  • Xi said China was planning initiatives in eight areas, including providing $147 million in emergency food aid, sending 500 agricultural experts to Africa, and providing scholarships, vocational training and trade promotion opportunities.
  • President Xi Jingping promoted Beijing’s initiative to build ports and other infrastructure as a tool for “common prosperity” in a world facing challenges from trade protectionism.
  • China will implement 50 agricultural assistance programmes, provide 1 billion of emergency humanitarian food assistance to African countries affected by natural disasters, send 500 senior agriculture experts to Africa, and train entrepreneurs in Agri-business.
  • China pledged it will implement 50 trade facilitation programmes for Africa, as well as undertake 50 projects for green development and ecological and environmental protection.
  • Tailor-made programmes to train 1,000 high-calibre Africans will also be put in place. 50,000 government scholarships and 50,000 training opportunities for seminars and workshops will be offered.
  • On the other hand, 50 medical and health aid programmes for Africa will be upgraded.
  • Xi said that we should build a China-Africa community with a shared future that promotes harmony between man and nature. The Earth is the only place which we mankind call home. China will work with Africa to pursue green, low-carbon, circular and sustainable development and protect our lush mountains and lucid waters and all living beings on our planet.

China has continued to push for cooperation with Africa to help the African states achieve economic independence in the long-run.This initiative has been achieved by financing projects in Africa. A good example is the infrastructure development where china has continued to bring modern technology in this sector. The presidents in attendance were positive that Africa was taking off towards a better future of economic growth.

CAMAL Group has been doing business in China for more than 8 years and has seen China’s economy grow overtime. FOCAC2018 has opened many opportunities where people from Africa will be  allowed to do business in China. CAMAL has helped some of it’s clients  get foreign investment from china hence creating a positive economic impact.

CAMAL will continue to bring serious investors to Africa and also help the African produce get market overseas. As Xi jingping finished his speech he  insisted by saying that there is need for China and Africa to work together in order to conserve the environment, CAMAL continues to push for environmental hygiene by organising trips where African countries can come to China and benchmark on environmental conservation and how china manufactures the waste treatment plants. With the growing African population, there is need to take care of the environment at all costs.

As the bond between China and Africa becomes stronger, there is need to evaluate  the economy and check the available opportunities in the market because Africa has untapped potential. There are many benefits which can be reaped by business firms, investors and organisations that are in their take-off stage matching towards economic independence. This phase will spearhead development in countries which will channel the loans for development purposes. We just hope that the loans will bring productivity because it is a debt which will be paid later even though president Xi Jingping said that China will write-off some loans for some countries depending on how the economy is doing.

 

Standard Bank Yiwu Trade Visit by CAMAL

CAMAL cooperated with ICDC and  did a tour with Standard bank to the Yiwu districts which are like malls selling different products such as electronics, furniture and many more. CAMAL  also did factory visits in Wangbin who make furniture and also Sumsoar who do logistics. The main agenda  of this particular trip was to have clients get a feeling of doing business in China.

Briefing during the meeting

CAMAL has  always aimed at adding value to its client and for this reason,  the firm  assisted Standard bank visit various districts of their interest. The key reasons of visiting various districts were;

  • To identify the prevailing opportunities in China
  • To understand the terms of business in China
  • To vet the quality and prices of the products.
  • To get a diverse investment plan

CAMAL continues to organize these trips for associations and companies who wants to meet the original suppliers. This is one among many successful trips which CAMAL has been part of. CAMAL has also done successful trips for the following fields,

  • Construction materials i.e. tiles
  • Capital machines i.e. wheel loaders, dump trucks
  • Industrial Chemicals
  • steel
CAMAL -supplier visit

The advantages of using CAMAL for such trips include

  • CAMAL understands China and the  economy well so the firm will advice on the best quality and original product.
  • CAMAL has done many trips  successfully  for many associations and companies, it will only get  better for you.
  • CAMAL’s China office will do the negotiation for you with the Chinese manufacturers because. The team speaks Chinese fluent so language barrier will not be a problem to CAMAL’s client during trip.
  • CAMAL has does due diligence for the companies the client wants to visit, this ensures the client’s expectations are met by linking them with the best suppliers in China.

 

5 THINGS TO KNOW ABOUT CHINA SOURCING

5 THINGS TO KNOW ABOUT CHINA SOURCING

In order to ensure effectiveness in the global market, most countries have begun the implementation of high global sourcing strategies. China, being the largest economy in the world is one of the major destinations for people worldwide, despite the increasing cost of manufacturing in recent years. In order to achieve a successful China market sourcing, here are some tips.

1. Quality control management: in China market, there are varieties of goods with different qualities ranging from low to very high standards. So to ensure quality products and timely delivery from China suppliers, the buyer forms his own quality control system. Also, other things that can be done to ensure quality control are:

  • Inspection of factory audit with view of how quality control is being done in the factory.
  • Checking of the factory’s licenses (especially ISO), certifications, human resources policies and their production capacities.

When buyers form their own control system, a noted risk encountered by these buyers is the increasing friendliness between the quality control personnel and the suppliers. A choice attached to this is to involve a recognized inspection company to take on one’s support in the company

2.  Product specification: the stating of exact specification of China products willing to be bought by buyers should be ensured, so that;

  • No confusion concerning price and quality between buyers and sellers would occur.
  • Discouragement of “cutting of corners” by the China suppliers due to blurry specifications in the China market would be encouraged.
  • There would be increase in the efficiency of the import process.Sign of incompetence resulting from suppliers committing to sales without thought for product specification or questions about goods should be observed by buyers.

3. Payment methods/terms: when importing China products, it is necessary to note the payment conditions in order to ensure the safety of buyer’s funds. The steps taken by buyers in processing payment includes:

  • Negotiation for payment (most important)
  • Choice for payment option

Influencing the negotiations with the China suppliers, is the value of the order which depends on the level at which the supplier operates.

  • The purchase history which creates an avenue for re-negotiation and compliance with the client, making the purchase history an important factor.
  • The competition in the company one tends to order from.

For various reasons such as defraud, logistic (bureaucratic problems in claiming funds), China sellers do not always agree with the buyers preferred payment. The payment options include;

  • International wire transfer (most accepted)
  • Letter of credit (most secured)
  • Online escrow
  • Sourcing companies or agents
  • Pay pal

4. China sourcing is not always at low cost.

There is this mentality that China products are always cheap compared to other countries product, but this might not always be the case. In China, there are many factories that constitute to low cost of labor and raw materials. Due to the location, cost of manufacturing can be high because rent is high in some location thus, increasing the cost of price of product depicting that China sourcing is not always at low cost.

5.Avoid 100% upfront

Using a good OEM agreement is a way to avoiding 100% upfront. An example of such can be delay in the delivery of goods or services, change in future prices, etc. can occur leading to total loss

CAMAL’s MD Walter Ruigu appeared CGTN to discuss China-Africa Cooperation

CAMAL’s Managing Director Mr Walter Ruigu (left) during an interview with CGTN

China has continued to make strides in investment and this time, they have their eyes set on Africa. It seems Africa has some potential which has caught the attention of this economic giant . China continues to invest in various sectors in Africa. With globalization and technology advancement, investment has been taken a notch higher with China eyeing  African market for its produce. There has been a rise in business trips from Africa to China as more states want to understand China’s technology in production and how they can adapt the same technology back in Africa.

CAMAL’s Managing Director Mr Walter Ruigu appeared on CGTN to shed some light on why China has decided to venture in Africa. It is true Africa has resources which has everyone thinking it’s the main reason why China has been on the forefront pushing to invest more in Africa. China just like other countries in the world is on a market search for its output. The domestic market in china is saturated. African countries are potential markets for China’s various commodities. For example, construction companies in Africa are highly dependent on China for the Procurement of machinery and other construction materials. We also have firms getting raw materials from China to facilitate production which will later contribute to the increase of GDP after the end product is traded.

CAMAL’s Management Team in China (from left) Managing Director Mr Walter Ruigu, Senior Project Manager Mr David Kyalo and Head Of Operations  Mr Razack Magagi

China has 3 main interests in Africa.

1.) The first one is to  support  the international community. China can and has continued to offer technological support to multilateral agencies to help them make countries better. A good example is the United Nations Environment Programme. China  has advanced technology on how countries should conserve the environment and recycle the waste products to create continuous utility. Being one of the most populated countries in the world, China has tried to come up with various ways of conserving the environment. The technology used has been passed to other countries across the world. CAMAL continues to contribute positively by arranging successful trips to China where clients get to visit and acquire necessary knowledge which they later transfer to their countries .

2.)  Quest for new markets is also another interest.  These markets are created by the ever growing demands which need to be fulfilled. At this point, firms like CAMAL have come in handy to help consumers and organisations understand China market more. Many African consumers are using CAMAL to procure from China. CAMAL can put it on record that those companies, individuals and organisation who have procured equipment, machinery or any construction materials from china, have been able to boost their productivity/output and increased profitability in the long-run.

Africa’s Heads of State during the FOCAC2018 in Beijing China

3.) it’s true that Africa has resources which China needs. This should be considered as strength and not a weakness. Countries like South Africa have greatly benefited because China has invested so much in their economy thanks to the resources they have. Many countries in Africa have untapped potential because they have not found the market internationally for what they produce  yet China can be a target market. Again CAMAL has come in to boost African countries Trade with China by helping organisations export the raw material China needs. Firms in Africa who are doing trade with China continue to benefit from these relations.

CAMAL’S MD Walter Ruigu(left) and Project Manager David Kyalo during FOCAC2018 in Beijing

CAMAL would recommend all African countries to focus  more on producing final products from the resources they have. This will add value and contribute towards financial independence. The final products will also get demand from other international markets not only China. it should challenge all African countries to strive towards economic growth which will bring financial independence to the continent.

You can watch the full interview as CAMAL’s Managing Director Mr Walter Ruigu brings more understanding on Why China is investing more in Africa and how African firms can benefit  by clicking here