CAMAL recently organised a trip to China for KNCCI Marsabit Chamber where the delegates had special interests in getting investors and also meeting suppliers. The 5 days trip was aimed at value addition to the Chamber and the office in China delivered beyond expectation.
CAMAL facilitated- KNCCI Marsabit and Guangdong Chamber of Commerce, B2B meeting with Chinese investors. The firm witnessed Signing of an MOU, exploring business cooperation and investment areas in Marsabit County. The talks held were aimed at identifying potential business opportunities from Marsabit
The Chamber also had some interest in meeting construction material suppliers in China. CAMAL took the delegates to a company where they showed special interest in procurement of construction materials such as tiles, prefabs materials etc.
KNCCI Marsabit meeting with Chinese construction, energy and building materials companies.CAMAL also took KNCCI Marsabit to visit Solar panel factory. The Chamber had requested CAMAL to facilitate this meeting as they had a project which involved solar energy and they wanted to know where they can get them from. The meeting was successful with the supplier promising to work with CAMAL to deliver high quality products to the Marsabit County as soon as the order is placed.
CAMAL will continue to organise such trips for the client to understand better opportunities and how CAMAL can assist them to procure from China after or during the trip. CAMAL’s value addition include;
Identification of reliable suppliers for our clients;
Carrying out factory due diligence on behalf of the Client;
Engaging with the potential investors;
Advising the Client on how to procure Products from China;
Facilitating preliminary discussions by having an interpreter who understands Chinese and English well to get rid of language barrier.
China- Africa cooperation has been going on for some time now. CAMAL’s Managing Director Mr. Walter Ruigu was spent some time to review the progress of FOCAC2015 which was held in South Africa. The theme was how to facilitate the movement or transfer of the industrial knowledge from China to Africa.
From the macroeconomic perspective, the conference was successful because China stepped up the pledges from $20 billion to $60 billion which will be in different forms, they will increase financial funding to develop the SMEs
China will offer more training support to African Students who will learn more about technology.
From a company level FOCAC2015 could have done more as the attendance was mainly done by the Government state owned companies instead of firms from Africa. Africa should have more of these forums so that we can they can be a step in the same direction with China.
China’s economy has been slowing down in that China has moved from economy that was based on investment and to fixed asset to domestic consumption. This means that Africa being a large trader in Commodity trading, the continent has been suffering from the economic fluctuation of the prices of these commodities.
The Chinese manufacturing sector has been operating in over capacity i.e. the steel industry; this means there is need to move some of these industries in Africa. However, there is a lot of information which would help the industries in China to move to Africa. Many small medium enterprises are closing down because they do not know how to move to Africa because they do not have the regulations of the country they would want to move to.
The companies in Africa need to engage with China at a macroeconomic level for them to benefit. Once the African companies engage with the big companies in China, definitely the issues of infrastructure will be addressed. China is able to integrate many companies to come up with one common industry.
The market in china cannot be gauged by looking at the population, this is because of the difference in the consumption pattern and the marketing plans. African countries have to research more on Chinese market. Africa should focus on value addition so that export can be increase to China.
Comparing this with FOCAC2018, there has been an improvement as many companies came on board and attended the forum. Unlike in 2015, more countries are sending companies in china to carryout market research, procurement purposes and to get investors. CAMAL continues to be on the forefront to see that clients from African Continent get the best from china. CAMAL also continues to link more industries from China to the African market making it easy for entrepreneurs to source from China. The theme of these forums has been to see to it that Africa has achieved economic growth through these relations in the long-run.
Attached is a file with an audio where CAMAL’s Managing Director Mr. Walter sheds more light on what Africa needs to do for a smooth cooperation with China.
CAMAL has continued to make strides in the international markets by connecting various suppliers to their markets. More firms across the continents continue to trust CAMAL for market sourcing and potential client identity. In the recent past, CAMAL has been moving across the continent trying to identify the resources in Africa and how countries can improve international trade for our clients.
Even with global offices in China, Kenya, Singapore and Zambia, CAMAL has seen the need of expanding its roots so as to meet the client’s needs in procurement, commodity trading and investment advisory. Mining industry has been receiving support from governments because it is a sector which if exploited well, will contribute to the well-being of the country. A good example is South Africa where mining is a key contributor to the economy.
CAMAL made its first entry in Namibian Mineral market in September 2018. The bonds CAMAL has established in China over a period of time, made it easier for CAMAL to locate and find white Granite market in china for Namibian miners. Granite exists in different colors. There is White, Black, Green, Red, Blue, Brown and Pink Granite.Granite is used in buildings, bridges, paving, monuments, and many other exterior projects. Indoors, polished granite slabs and tiles are used in counter-tops, tile floors, stair treads and many other design elements.
Granite Mine – photo courtesy of CAMAL
CAMAL organized a successful trip from china to Namibia where white Granite is in huge deposits. The client needed a supplier who CAMAL identified and helped the client to inspect and do the negotiation on their behalf. There is a Chinese proverb which says that, ”A closed mind is like a closed book; just a block of wood”this proverb means that there is need to explore new opportunities and knowledge in a business. This is the reason why CAMAL has continued to build relationship with mining firms across Africa
CAMAL will continue to bring suppliers and market together for a better trading grounds. Central Governments should ensure that mining sectors are developed and implement technology advancement as far as mining is concerned. With improvement in technology, Africa will steadily increase the export of finial products made from granite which will positively impact the economy. CAMAL continues to help and share advice on what needs to be implemented for minerals to be of greater benefit to the African Continent. For all your procurement needs, CAMAL is the best there is in trade. We will help you to cut cost and increase profitability in the long run.
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.
CAMAL cooperated with the largest bank in Africa, Standard Bank to organise a tour of Yiwu district in Zhejiang province of China for various African traders. The sourcing trip included procurement of various products such as equipment, electronics, furniture and many more. CAMAL also conducted factory visits in Wangbin Co. Ltd, which manufactures furniture and Sumsoar which handles logistics for various local exporters. The main agenda of this particular trip was to have clients introduce clients to sourcing from China through actual engagement with the local factories.
CAMAL has always aimed to consistently add value to our clients and for this reason, the firm co-operated with 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
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.
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