Cargo To Africa

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  • Things to Consider for Business in South Africa

    Prepare yourself before hand for choosing Africa as a Business destination

    South Africa is considered as a very fruitful business destination. Especially when we are talking about UK trade with the region, South Africa becomes prominent. As it is the major trading partner with UK in Africa. This does not mean that UK is not in trade with other areas as there are new markets emerging in sub-Saharan region and Kenya, Nigeria already in trade relation with UK.

    But as South Africa gets the largest share of trade, it has become prominent in Cargo to Africa. This region is very rich in agriculture and also the environment for doing business is favorable which attracts the investors.

    How the Task is done?

    Visiting a new country, unknown people, economic system and infrastructure, all become a big hurdle. To overcome all these difficulties, UK government appoints parliamentarians from among the political parties to lead business delegations to other countries where Britain wants to boost trade and business for bilateral relations. With this facility, present making place in the new environment becomes easy. Same is done in case of Africa but keeping in mind the trade area and its need.

    As people are now aware of their purchasing power and decision making has become strong for trusting or liking a product. So, hitting the right market is very important to be successful to improve air and sea cargo growth.

    Current Exports of UK to South Africa:

    At present, the major exports of UK to South Africa are fuel, machinery, vehicle, medical, pharmaceuticals, and food. There is plenty of scope for UK businesses in areas like energy, transport, health care and education sectors. Africa is not a fully developed region, and hence requires help from outside its premises for keeping things going and at the same time, help is needed to make the situation better in every sector. Trade is the best way to do this as you get something of your interest in return.

    For example, it is being said that after Brexit, there are chances of increased imports of fruits and vegetables from Africa which is the demand of UK at present as their own production has fallen to a large extent, and thus they are relying on imports for fulfilling the need of their people.

    What the newcomer has to face:

    As any other region, there are obstacles that can stop or slow down your efforts of establishing a business in the land. There is a high rate of unemployment in the country and people are not assured of getting a job and maintaining it for longer. Then the poverty factor also becomes a challenge for the businessman as the power of purchase may not be as it was expected. Another very important factor is the skill and capacity shortage, which is there due to less opportunity.

    Lack of infrastructure is also a big problem that makes it difficult to adjust in this region. There are no solid and proper working departments for resolving energy, water and transport areas. High crime rate becomes another problem the businessmen have to face while doing business and keeping a close check on such activities is necessary. Then there is legislation, the Broad-Based Black Economic Empowerment; which the investor has to tackle while setting a company.

  • How Britain is tackling African Migrants and exports to the region?

    Permanent steps are indispensable in the present condition to ensure stability

    Africa is not a place where the population is well fed and has plenty of opportunities to earn their lively hood like Cargo to Africa is a big opportunity to grow the business. Instead, it is a land where poverty rules and children and older sector dies of lack of nutrition. In such a case, people who educate with lots of hard work and facing a bundle of problems do not want to remain in the continent or in their respective country and migrate to other areas which have more opportunities.

    In this situation, the welcoming country and in this case Britain is facing problems and they are now starting to think over the situation to improve this crisis which is making their own citizens suffer.

    Main Reasons for Migration:

    No one wants to leave the place where he/she is born and live alone while facing trouble and devoid of a decent living place. But not only Africa, other poor countries lacking jobs and decent workstations put their occupiers in such a situation. On one side the job seeking personals are growing and on the other hand, prospects are becoming less and less. In such circumstances, people either go to another country in the continent or travel towards another continent. Lack of industry joblessness is making the people flee from the land because no one can see their family die due to lack of necessities of life which is their right.

    Ray of Hope:

    At present, the only hope for the people is the increasing trade international market. But the problem over here is that exchange of goods is not profitable till now as the money earn is again spent to trade for the essential items that are needed for leading a decent life.

    So the trade is a positive thing for small Logistic businesses but the overall situation remains the same on the national level and when this condition will improve only then change in the living standard of the citizens occur.

    Lack of Infrastructure and Common Welfare:

    These two things are the main hurdles which are responsible for poor economic conditions of a country. These problems result in lack of communication and hence no one wants to work for the welfare of a common man, instead, everyone struggles for filling their own pockets. An Intelligent decision by the government of African countries would be to look for flaws within and rectify them to decrease pressure on themselves and on the helping country.

    Direction Britain is following

    The UK government is not forcing the immigrants out of its boundaries but it certainly is considering to tight the border conditions for permitting migrants in the country. The country is already in a state of uncertainty due to Brexit due in 2019 and is simultaneously dealing with many affairs and this crucial matter is making things difficult to be handled. Also, UK is urging the African authorities to reach the root cause and eliminate the reason for fleeing of its population.

    Industries should be put up to increase job opportunities so that the fresh graduates have a livelihood whenever they finish their university. This permanent solution is the only way which can reduce immigration as handling such a big number of immigrants from every country is not affordable.

  • UK Commitment Towards African Trade

    Building a strong relation around the world

    Minister of State for Trade Policy Lord Price visited South Africa and Namibia to meet trade ministers from the Southern Africa Customs Union. The main reason is to discuss ways for avoiding any kind of hindrance in trade between the two regions. As the current issue is exit of UK from European Union because the main thing involved in it is trade, which now a day build a strong portion of economy for any country. So is the case with UK cargo and Cargo to Africa. Both have strong relations as being the members of EU and both parties want the relation to be the same and even more propelling than ever. These meetings are a part of the agreement that has to be reached before Brexit and then making the implementations from the agreement a real and final deal.

    UK’s Contribution to African Development:

    Another positive view that has been put forward by UK Minister of State is that Britain never wants to back up from the development programs that are going on in the region with their collaboration. No matter what the conditions are they will always continue the support system they are providing for the progress of the underdeveloped parts of the continent.

    A free trade with no or less restrictions give a free hand for exporting necessary machinery for developing structures and food items or medicines for leveling up the health of the citizens. The progress will stop if any problem occurs while shipping things from one side to another. Check out Cargo to Africa from UK for cost effective and reliable cargo services.

    What is intended of the new free Trade Deal?

    Africa struggled for almost ten years to reach an agreement between EU and Africa for a free trade. This deal is between the countries that are a part of EU and Africa. UK is a prominent trade partner of Africa and in no way it wants UK to get separated from the free trade deal. So, efforts are being made to implement the same basic structure of the EU free trade agreement with some minor changes according to the states and conditions.

    This will help out both the countries to work with each other on familiar grounds and not create a new situation which will take time to set in. In the mean time both the sides will formulate a new free trade agreement and replace the old one for anew era to finally start.

    Important Matters for Africa:

    There are other important areas of African trade that are intended to be discussed before any final agreement is drafted. Of them, one is the agricultural quota of duty free trade among the two sides. In the SADC-EPA South Africa negotiated larger amount of agricultural products to be traded on duty free basis. The same quota Africa wants to set in the new agreement.

    There is a large amount of African wine already being sent to UK from South Africa, and the wine traders are hoping for a large quota in the new trade agreement. Another issue is of importing parts from other countries to assemble a final product and still have a duty free trade for it. This rule will be meant for both the sides and not any one of them.

  • Africa is Emerging as a Growing Economy

    Struggling hard for extending the trade internationally

    The continent which was once a severe depiction of poverty and lack of food combined with basic necessities of life missing, is now striving hard to reach the point where stability to some extent is being administered. There are now many countries apart from South Africa that are straightening up their matters to take part in the global trade and take it to the track of development and advancement. In the past, only 5 countries had stock markets and now 16 of them have established stock markets individually in the sub-Saharan region.

    Where the rest of the world is seeing a downfall in economy, one may think that how nay one be can interested in investing Africa stock markets. But this is not the case, instead the investments have risen since last few months and they are still going upwards.

    How Global Trade Influence Living Standards:

    Why a country should open its borders for international trade and why take this hectic job. When a country starts trade globally, new opportunities starts to open. They are not in the shape of jobs, the access to new products and ways become available. Services can be exchanged not only in the shape of new technologies also in respect of banking and trading documentation.

    Same has been happening in Africa. As global access to new services and products become possible Africa is improving itself gradually. Also the student exchange program that result from the regional trade depicts a total new image of a country. The educated class of Africa is presenting Africa in a totally new way and the International community is building faith in investing. Still it is a long way to go for Africa but in the present circumstances at least the signs are showing off.

    Why to Invest in Africa:

    There are some very simple and straight forward reasons for why the international community should invest and increase trade in Africa. One reason is its rich soil which can produce some very tasty foods and by introducing projects for agriculture one can benefit from it. This will not only benefit on local basis but it will also increase global trade. Another reason is its richness in minerals and chemicals, in which many countries are interested for their use. As Africa has an international language in most areas and their way of doing business also tally, the European countries find it easy to adjust. Although the factor of risk is there, but then, risk is a part of business.

    What is the reason of growth?

    The main reason of growth is the growing middle class in Africa. The consumer spending is increasing as the middle class is contributing more and more. The analysis shows that even the minerals and resource demand do not give that much GDP as this investment by this class. And on the other hand which stops all the advancement and development process is the factor of corruption, lack of infrastructure and government instability. Despite of being rich in natural resources, this vast land cannot prosper due to these serious issues.

  • New Developments in UK Africa Trade

    In what direction the two trading partners are heading?

    Africa UK trade has a long history to trace back. Both are at present members of EU and are one of the leading traders, not only to each other but also with other countries as well. With Brexit underway, the situation has changed and there are some uncertainties as well as confirmations from both the side. But what will happen in actual situation is a question that will be answered only when the Brexit will happen in 2019. There are some changes as well as on the way agreements that are to be finalized but not without considering many more matters that are coming in the way.

    Both the sides are trying hard to have agreements that do not hinder in the way of trade with other parties as it will not be in favor of UK as well as Africa especially South Africa as being a major trading partner. Africa does not want to disturb its relations with EU as well as UK and it is creating a difficult situation for Africa.

    EPA and ongoing Discussions:

    EPA is not an ordinary agreement for Africa. It took almost ten years to negotiate the treaty and six Southern African countries are a part of this. Due to this agreement, the access to EU for South Africa in agricultural products has improved in return of recognition of geographical indications on European food stuff etc.

    What South Africa want is that whatever agreement between UK cargo and Cargo to Africa is going to be, it follows the line of hard-earned EPA. As it is Brexit UK and not Africa is exiting European Union, the situation is complicated and Africa has to maintain a balance between the two as it does not want to leave any of them. British High Commissioner to South Africa Nigel Casey has confirmed that they are not going to allow any gap in the agreement and make it fall away for Africa.

    Time Conscious:

    UK officials are also concerned about time frame before Brexit. The agreements that are going to take place not only concern South Africa but also other southern African countries that are involved in the EPA.

    So, if the talks are going to commence, they have to spread to all the countries and not only to one and the officials intend to do it necessarily. But until unless Britain is a part of EU, these agreements cannot be made effective or reach a final point.

    What more to add:

    Casey said that EPA only dealt with trade of products, but if the talks are going to be only between the two then chances of including services are also there. These services form a large part of UK and African economies and will prove to be beneficent for both.

    But there are constraints that hinder the easy flow of from one end to another and discussions are taking place on the two options present to ease them. One is whether to make government-to-government agreement or the ones that are sector specific. Every effort is being done to achieve arrangements to avoid any gap in the smooth flow of trade during the transfer.

  • Insured Shipping Through Africa

    Reasons why one should have the cargo insured before its journey

    To avoid more cost for shipping like a consignment and cargo to Africa, the sender ignores this very important step most of the times. In the present times, as much positive advancement have taken place, there are many negative aspects that work side by side to take advantage of them for their unlawful activities. A very important thing to consider is that anything can happen in the course of journey to the cargo and one should be prepared to minimize the effect. Insuring the cargo is a smart decision not only for protecting it from piracy, but many other things that can affect the efficient delivery.

    Cargo Damage:

    This is very common occurrence and mishandling can result in the damage of goods. These damages can be related to physical mishandling in loading and unloading the shipment. Then there are temperature related damages that can harm the perishable goods and destroy them before reaching the destination.

    Another type is of shortage of space that results in the breakage or misshaping. In any case your cargo suffers a major quality difference which was actually required by the consignee. Then there is a long list of categories that carries the cargo damage within and is a very strong reason why you should have your cargo insured to avoid any future mishaps.

    Rising Cargo Theft:

    One very major reason of getting your goods secured is to save it from theft. It can be in the form of a pirate attack or container theft by fraud of the transport company or the ship crew. People are getting more fearless these days to commit crime as they know there is always a way out for them especially in the regions where law is not strong for such activities.

    When you insure your sea or air cargo, it means you are securing the financial loss that have the possibility to occur at any time during the shipping process. A businessman risk a major amount of his money when he is involved in the import export business, so it is not a wise decision to make your goods open to such a big loss.

    Consider Natural Disasters:

    Where mankind can do nothing is the area of natural disasters. Whether you are sending your cargo through air or through sea, you never know what can happen next. So if you are a judicious businessman, never send your valuable goods without insurance. These disasters can be categorized as nature related mishaps which include thunder or snow storms or they can be put in a mechanical fault which can occur at any time and this can result in the delay of cargo arrival or loss of a whole container or containers.

    Ensures Total control:

    If you leave the insurance part to the shippers, the terms and conditions can be tempered and all the areas may not be covered due to personal interests or to avoid any responsibility on their part. For this, make your personal presence a must in the insurance paper works so that you have a total control on the protection of your cargo.

  • Cargo Trade Agreements Between UK and South Africa

    Especial emphasis is being put on the future of trade relations after Brexit

    South Africa is the largest trade partner of UK and the second largest in EU. With such a big trade relations to both the sides, there are certainly insecurities that are leading to more and more meetings between the two countries regarding the arrangements that are to be made to lessen the effect of Brexit on trade of both the countries. An interim arrangement was being discussed based on the already existing EU partnership deal. This is to ensure that the transfer will not hurt the trading relation and the procedure will be smooth and without complications to streamline Cargo to Africa. Because both are strong trade partners, such actions are obligatory to ensure harmony.

    An Intelligent Decision is needed:

    What is expected from both the sides is to take this time period as a fruitful era. There are still two years before Brexit and lot will be decided by UK as well the trading partners. There will be a total loss if there is any decision that can harm these trade relationships in any way. Both UK and South Africa are in very good positions to reach a point where both can prosper more in trade and make most out of the situation.

    The increasing meetings and revising agreements are very important steps and both the countries should act wisely to reach an interim agreement that will support the trade and cargo from both means like sea cargo and air cargo, while the situation becomes clear after a hard or soft Brexit whatever the case is. Countries are trying to secure their relations with UK to make things move as they are and not have any harm due to the process.

    What is UK expecting of South Africa?

    Many of us always talk about the other countries but what about UK? While others are making arrangements to secure their ends, UK also demands something in return. There are tariff rates which are fixed for the domestic commodities to save them from the competitive imports in the economic partnership agreement of EU. Lower tariff is applied on those products to come in but in certain quota, any volume above the decided one is considered prohibitive traffic.

    UK wants SA to discuss this point that tariff rate volumes remain the same and not decrease after Brexit. EU has not increased them even if there is an increase in the members so the expectation form the UK side is that South Africa will not reduce it when the time comes.

    Ensuring uninterrupted Trade:

    Because of such strong ties, none of the two parties want to have a negative effect of Brexit on the trade side. The interim arrangement will ensure that the trade between the two countries remains smooth and uninterrupted. A halt in the trade will mean a heck of loss for both the sides.

    The increasing meetings and this arrangement also hints towards how important are these two countries for each others trade. The South African Customs Union (SACU) has already sent a letter to UK to make a suggestion of discussions between the two nations to establish an interim agreement to avoid any distasteful experiences for both sides in terms of trade.

  • Popular Ports of Africa

    Trade in the present time is an important business

    As the technology has evolved, many other things are automated to the next level. Among these is the importance of trade which has become an important factor in the increase of income and having an access to the world market. There is no similar situation in the markets of different parts of the world and what is being on sale in one part may not be present in the other. To get access to the product, deals are made so that the spread of a product globally can be made possible by exchanging goods with money.

    Africa is a very fruitful continent and 90% of its trade is being carried out by sea cargo. That’s why, sea ports are very important and special emphasis should be made to get the most out of it. There are some very busy ports in Africa which are very important due to their geological placement. These ports must be made secure and extended so as to increase the trade not only in South Africa but also throughout Africa.

    Port of Durban:

    The Port of Durban is situated in South Africa and it is considered as the busiest port in the sub-Saharan Africa. It is said to handle approximately 31.4 million tons of cargo to Arica each year.

    This does not only make it the busiest port in Africa but also in the southern hemisphere. African trade depends mostly on South Africa and it is the major trade state that is mainly responsible for the economy of the continent.

    Port Mombasa:

    This port is situated on the waters of Kenya in between South Africa as well as Gulf of Aden. Importance of this port can be seen due to its position and it also connects 80 ports all around the world.

    The port not only connects globally with sea ports but also there is a railway line stretching from Uganda to Tanzania. This port is also very important and handles huge cargo traffic and marks second place in the world.

    Port of Djibouti:

    This is another important port which is situated in the city of Djibouti. The port is special due its location in one of the busiest trade paths; it links Europe and Far East, where even Chinese Government is directly involved in the port.

    The trade point is not only important for its trade traffic but also it has naval importance as various nations use it as a military outpost.

    Port of Lagos:

    This port is controlled by Nigerian Ports Authority. This port is crucial to Nigeria as there is a major portion of GDP that this port contributes to the economy.

    This port performs many operations including berthing, cargo handling and stacking areas. The number of cargo traffic can be estimated by the volume of money it generates for the country.

    Port of Abidjan:

    The port is operational since 1950s in Ivory Coast. This port is considered very important for the transshipment and is a busy port in the West Africa.

    The port not only offers cargo shipments, but also it is a fishing port. The port handled 22 million of cargo containers which is a big number.

  • Vehicle Export from UK to South Africa

    Build a trustworthy situation with the basic knowledge at hand

    Having the basic knowledge of the procedure makes you aware of the whole process. You, then have the knowledge that what effort and time is required to have this difficult job done by the shippers and do not question the delay, if hapened. Vehicles are mostly transported through sea cargo freight, as African states rely mostly on sea for its imports and exports.

    The know how of the underlying procedure for vehicle transport to African Countries from UK is important, not only to know the system is good so that you don’t face any uncertain situation but also for a better relation with the freight forwarder. There is an expensive thing you are going to export and having it under special care is an ideal situation which can only be achieved by trusting the way they will work.

    Other documents needed:

    Apart from these two, there are other documents that are needed to import vehicles into South Africa. Photo copy of the passport, a copy of the vehicle’s license document (the V5) is also needed and a valid MOT certificate may also be required. Along with these, there are shipping documents as bill of landing which is issued at the time of departure from UK, which is an evidence of export of the automobile from its territory.

    The letter of authority and import permit that is arranged in most of the cases by the freight forwarder, if it does not get issued at time or before the vehicle reaches the port, it gets refused to enter the territory.

    Duty and Tax:

    There is a difference over here, also in case of duty and tax applicable to be paid on the car while sending any Cargo to Africa from UK. If the person importing the car is going to be a permanent immigrant or a returning citizen who is going to be permanently shifting, can import one vehicle which will be exempt of duty. But if the importer does not fit in the required fields then the duty is calculated according to the age of the vehicle. The VAT rate is 14% as set as a standard by the authorities, but this is just for the vehicles; for other goods the rate is different.

    This detail is just for the custom clearance process and is not a full version, as it is difficult to jolt down the whole paper here. For the vehicle to be categorized as fit, there is another process which the owner has to go through to prove the car or any other vehicle type to be fit to run on South African roads.

    Paper work required:

    As any other country, there are some necessary papers that are needed and have to be completed for the whole procedure to pass through the cargo custom procedure smoothly. Otherwise, you will get into trouble for delay in the shipment and delay in reaching the final destination.

    Letter of Authority: Letter of authority is to be acquired from the South African authority to have the vehicle enter its limits. Without this document, it is impossible to have your vehicle cleared from customs.

    Import Permit: Another vital document is import permit. This is also an important document to have your vehicle through the port into the country and finally the destination. There is difference in the documentation asked by the authorities for new immigrants and returning South African residents.

  • UK Reaffirming Trade Relations with Africa

    A new trade relation is said to trigger after Brexit

    Africa is not a highly developed region. Most areas in this region are underdeveloped and rely highly on foreign aid. So it can be said that the extreme conditions in African states decide the trade, especially in areas that are largely affected by draught and malnutrition due to absence of enough food. The higher spectrum is represented by South Africa that is the leading trade body in the region, while areas like Burundi have the least trading power.

    Countries that rely heavily on imports and cargo services to run the state are always insecure due to changing deals internationally; so is the case with Africa. The uncertain conditions prevailing after the announcement of Brexit has raised questions and UK is leaving no stone unturned to convey a firm message of no harm to be established on its relationship with African countries.

    Internal Issues:

    African extremity struck regions always faces the misfortune of not having enough food and life facilities to move forward. The internal problems grip the region so tightly that coming out becomes impossible and foreign aid becomes the only means for relief. So the African countries which are underdeveloped, import medicines as well as food items to survive such a tough life.

    These problems hinders the way for this region to develop fully as it is rich in its natural resources but without a proper infrastructure and policy, the people cannot fully take advantage of its own wherewithal. Machinery and equipments are regularly imported with the notion of having access to its resources with the help of these equipments.

    Brexit and the uncertain trade environment answered:

    UK has never denied having a positive and growing trade relation with Cargo to Africa. It has been cleared that Brexit means exit with Europe and not with Africa. This clearly indicates that in no condition UK has the idea of breaking ties with commonwealth countries in Europe. The delegation to Africa has affirmed that it will not end its commitment to the continent. Furthermore delegations to different regions in the continent are being sent by the African states so that a positive message can be conveyed of the firm relations of UK and the region.

    Relations with South Africa:

    The UK government has laid special emphasis on its relations with South Africa which is its largest economic and political partner in the continent. As being the main contributor in the economy of Africa and a developed region in this continent, it attracts trade from around the world. This region is very important for the economy of this continent. The present Prime Minister of UK has said very clearly that her government does not intend to become isolated from the world and follow the foot steps of others.

    Importance given to Africa by UK:

    The importance of trade between Africa and UK can be clearly seen by the visit of UK officials to the continent especially South Africa.

    This was a short visit and was carried out immediately after the announcement of Brexit. The other two countries that were visited on that short trip were Japan and South Korea. These and future tours were meant to confirm strong ties of UK globally.