“There is no better market, or no lower hanging fruit, than your people in another country,” Affiong Williams, the CEO of ReelFruit, said in an interview with HowWeMadeItinAfrica. The sentiment shared by Williams, a Nigeria-based dried fruit snacks producer, is being played out for many small businesses now as the demand for the country’s local goods abroad increases.
Coupled with the demand from compatriots abroad, the slump in naira has also created a market for small businesses venturing into export.
Nigeria has been experiencing high volatility in the currency market in recent times, with the naira reaching intraday highs of over 1,500 per day this week. The flailing currency traded at N1,479.47 on Wednesday at the Nigerian Autonomous Foreign Exchange Market.
A staggering inflation rate of 28.92 percent has continued to erode Nigerian consumers’ pockets while increasing the cost of doing business for entrepreneurs. This also underscores the relevance of targeting markets with better disposable income.
“Many Nigerian companies have input costs in dollars either directly or indirectly. So, the inflationary impact of the devaluing naira is hedged when you earn dollars,” said Williams. She added that a weak naira makes ReelFruit’s products more competitive on American shelves.
“I see a growing opportunity for products such as mine and other food products that are becoming more global in their standards, to sell to the Nigerian market in the US,” she added.
Europe and the Americas remain major destinations for immigrant Nigerians, with countries like the US, UK, and Canada recording the highest number of Nigerians with high disposable income.
The average American has $60,314 in disposable income each year, according to the most recent data from the The Federal Reserve System of America.
Data from the latest American Community Survey showed that as of 2020, there were 382,820 Nigerians in the US. The figure is projected to hit up to 500,000 by 2025.
The Nigerian community in the UK is one of the largest and most diverse immigrant groups in the diaspora. As of 2021, there were over 270,000 Nigerian-born residents in the UK, mainly concentrated in London and Liverpool.
According to the 2021 census report, over 40,000 Nigerians moved to Canada between 2016 and 2021, which makes them the fifth largest of recent immigrant groups to Canada and the largest population of African migrants to Canada. In 2022, 22,085 Nigerians were admitted to Canada as permanent residents.
Understanding the target market is the secret to success in export business, many business owners agree. ReelFruits, which holds off from online sales, underscored this in its latest move to better target its consumers.
Now, the company is collaborating with a US-based distributor to reach customers through traditional African stores across various American cities. It also recently partnered with a broker who has secured a deal with a US e-commerce platform.
On Thursday, ReelFruits will be commissioning its new dried fruit processing factory in Ogun State to consolidate its production and facilitate its export. Its new approach rests on the population of natural consumers of Nigerian fruits abroad. Williams’ company is banking on the yearning for local food and longing for any semblance of home kicks in the palates of many Nigerians who recently migrated in droves.
“This is what real mango tastes like without sugar or chemicals added. You can tell because some of the pieces have a slightly different taste; it’s not really ‘industrial’ dried mango. The mango is soft and chewy, and not overwhelmingly sweet. The package is resealable so you can keep it for a while,” Marc S. Shiman in the US said on Amazon.
“This company supports rural farmers in Nigeria and has given them a market for their product so that it doesn’t just rot away. You should either buy it for the taste and health or do it to help support the farmers. Either way, I love this product.”
“We’ve loved the Dried Mango from ReelFruit since we’ve lived in Nigeria. When we moved to California, we tried so many other brands and none tasted as awesome as ReelFruit. When I found out on Twitter that they are now available on Amazon, I immediately ordered a pack. My three sons and I finished the bag in a day. I’ve just ordered two bags and will hide one for myself! They are delicious and perfect for the whole family. Make bigger bags please.” Aisha in the US said.
Eriamah Chinasa, CEO of Triple D Foods, is also taking the opportunity of the large population of Nigerians abroad to boost her business.
“I export strictly foodstuff and deliver to both end users and resellers,” she told BusinessDay. “The first time I ventured into exportation, my shipment was returned to Nigeria from the UK because the snail in my shipment was above the kg of snail allowed into the UK.”
Chinasa’s business did not take a hit from the naira devaluation like others who sell locally.
“The weakness of the naira didn’t affect my business in any way,” she said. “I made a profit from exporting because I neither import nor purchase the products in foreign currency. They make purchases in naira but most times I receive dollar equivalent of the purchases made in naira.”
Chinasa uses couriers such as DHL, UPS, FedEx, and others. Her preference is determined by the product, destination, and delivery period.
She points out that the logistics part of the business is also key.
“The first thing I consider when choosing a courier company is the destination of the shipment, each courier service has a country or countries that they can easily access. For example, for a continent like Europe, DHL is the best to use,” she explained.
Along with financial gain and bigger consumer reach, the prospect of exposing made-in-Nigeria products to global patronage could also mean well for the country’s economy, according to experts.
Odiri Erewa Meggison, chairman Manufacturers Association of Nigeria Export Promotion Group, a subgroup of the Manufacturers Association of Nigeria, said Nigerian companies who export can put made-in-Nigeria products on the global market and earn forex.
She said: “By doing so they are creating jobs locally and earning FX. They also will help with the balance of trade. Anytime we export, we create employment locally.”
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