Why Consider Exporting To Africa, Part 5

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FASTER MINIMUM EFFICIENCY LEVEL

Efficiency level is defined by the maximizing production of labor and materials. The break even point is that point where cost equals sales and from that point on, company starts making profit, however, the demand and the size of the market affects this level.

Thus the bigger the market and the higher the demand for the products and services, the faster a company reaches this point. The efficiency level could have achieved faster than anticipated if the demand for the products and services are more than previously calculated.

What this means is that due to the Africans affinities for Americans products and services and the share size of the African markets, most American company's efficiency level would have achieved faster and growth will follow. Here the faster the company attains their efficiency level, the faster the company starts making profits. The goal of all companies is to start making profit as fast as possible.

The African market offers most American companies the opportunity to reach this level because between 90 to 95 percent of most of the products and services are imported from the west. Why can not Americans be part of this percentage? American companies should consider the durability of the African market place and should not be left out as in the steel, automobile and even in the consumer goods industries.

TIMING IS RIGHT

The timing is right for Americans to take advantage of the changes in the life styles and the shifting interests of the Africans that have created markets for anyone with appealing and quality products and services. Companies who take their profit margin seriously should not longer play the waiting game when it comes to exporting to Africa.

Things are constantly changing in Africa the negative imagery of Africa is blinding Americans form potential profits. Long before the wave of democratization swept through Eastern Europe, Africans were quietly re-evaluating their colonial past. As Africans turn away from their colonial heritage, the opportunity for Americans to re-align them socially and economically with Africans open.

The spirit of the new world order is another major reason and in the new world order, African socioeconomic ties should take priority over political differences or ideologies. Pragmatism, not neocolonialism, is what is needed in a new relationship with Africa.

The floodgate of opportunities is now opened to well meaning business people around the world as African countries began the process of liberalizing their economies and inviting foreign investment in earnest.

In conclusion, American companies can change the winter of their businesses, however Americans can not change Africans, but must learn to adopt a tailor trade approach to do business with Africans.

Opportunity follows difficulties and Americans must take advantage of the opportunity. Opportunity is not guarantee, opportunity is a chance and that is applicable anywhere, even here at home.

Africa is the window of opportunity for Americans. Life is too brief, not to take advantage of the opportunity at hand.

Welcome to Africa, our home, your opportunity

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Source by Delson Adeoye