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AfriTrade.Net Empowering Individuals & Companies to Trade Competitively.

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Presentation on theme: "AfriTrade.Net Empowering Individuals & Companies to Trade Competitively."— Presentation transcript:

1 AfriTrade.Net Empowering Individuals & Companies to Trade Competitively

2 AT.N is not a marketing chain offering it is a producer initiated solution specifically designed for Small Medium Companies (SMEs) that battle to export _____________________ Bring back consolidated bulk trading benefits without the inefficiencies (Industries Logistically Disorganised)

3 The Problem!! Uncompetitive Marketing (Logistics) & Dysfunctional Trading Chains Exposing First Time or SME Exporters to Serious Risks

4 Offshore Buyer/Importer cannot serve their customers with the diversity they require speedily and cost effectively Supermarket, retailer, factory cannot fill his/her shelves/inputs with the diversity they require speedily and cost effectively Offshore national transport company always looking for more business Offshore clearing company always looking for more business International & intercontinental transporters need more cargo to offer reduced rates National transport company always looking for more business National clearing company always looking for more business Processing facilities require volume primary product to reduce unit processing costs to remain competitive Primary producers export agents require volume product & markets to offer competitive quality service Primary producers/manufacturers always looking for markets & need to know what to produce cost effectively Problem initial low & erratic volumes (poor rates) Governments lack the business acumen, urgency & dedication to assist, often opting for the copout clause this is a private sector matter we are here to provide a policy framework & direction Banks have the notion that industry must sort itself out and come with a cohesive structured plan for consideration Producer/Manufacturing Associations are sometimes understaffed & lack the skills to be able to put the cost effective value chains together, maintain them & grow them Clearly all these parties need to be managed in a sustained and cost effective manner, to the mutual benefit of all concerned. The AT.N instrument is primarily a SME producer/manufacturer favouring tool EXPORTINGEXPORTING IMPORTINGIMPORTING

5 And so Imagine for a Moment that you can Suddenly get Access to Markets in a hitherto untapped Market & Deal Privately & Confidentially with your Buyers. You can generate a Quote in Minutes Competitively & Trade Securely & Safely Along a Logistics Solution that even offers You Trade Finance Enter AfriTrade.Net (AT.N)

6 Servicing AT.N Target Markets through African Catchment Collaboration

7 How Do I get Involved with AT.N & How does it Work??

8 1. Understand the Philosophy of the AT.N Program to Facilitate Trade for Small Companies/First Time Exporters

9 3 Key Ingredients to Facilitate Trade – AT.N Addresses AT.N Buyers Engage Sellers AT.N Buyers Engage Sellers AT.N Buyers Engage Sellers SEAMLESSSEAMLESS LOGISTICS LOGISTICSSEAMLESSSEAMLESS LOGISTICS LOGISTICS THE THREE THREE STRANDED STRANDED TRADE TRADE CABLE CABLE $ Banking Transactions ii i $$ $ $ S E L L E R S B U Y E R S

10 2. Producers & Traders have to be Accredited to the Program - Free

11 How do Buyers & Sellers Become Accredited to AT.N? AfriTrade Net Website Administrators AT.N Bank accredits buyer (indirectly) Purchase Orders Buyer receives accreditation status from AT.N - may issue electronic Purchase Orders to Suppliers Russian/Gulf Buyer/Importer Buyer considers AT.N Tutorial on website Buyer applies for accreditation through approved Russian Bank to AT.N International Bank INT E B P R A A N N R A K T T I N I N E O G R NAL AT.N Bank communicates accreditation to AT.N Operations Center AT.N Bank accredits supplier (indirectly) Offer to Purchase Orders Supplier receives accreditation status from AT.N - may issue Offer to Purchase Orders to Suppliers Industry Association or Individual SME exporter Supplier considers AT.N Tutorial on website Supplier applies for accreditation through approved South African Bank to AT.N International Bank AT.N Bank communicates accreditation to AT.N Operations Center Approved Russian Bank issues buyer guarantees to AT.N Bank Russian Bank Guarantee Approved South African Bank issues supplier guarantees to AT.N Bank SA Bank Guarantee

12 3. Understand How Safe & Easy it is to Trade Successfully & Grow your Export Business with AT.N

13 AfriTrade Net Website Administrators Russian/Gulf Buyer/Importer Regional Hub (E.g. Port Elizabeth) 1. Enquiry comes in from accredited buyer 2. Accredited exporter (SME) Quotes Offer to Purchase 3. Market places order via AT.N Guaranteed Payment Instrument with Partner Banks – Purchase Order 4. SME exporter confirms space in section of value chain with logistics SPs 5. Exporter advises shipment date 6. Shipment is despatched & transaction advised via & SMS US/UK/UAE Airport National Hub (E.g. JHB) Industry Association or Individual SME

14 But How will the AT.N Shareholders make Money If They get no Commissions from the Products Traded In the Logistics Chain!! AT.N does NOT trade, but it creates the ENVIRONMENT for trade to take place

15 Russian or UAE Buyer/Importer Regional Hub (E.g. Port Elizabeth) National Hub (E.g. JHB) Offshore Hub Airport Commercial Clients AT.N Acting as Commission Agents Own Project Supply Base Inter-continental Aircraft National 10c/kg = R100/ton Other Accessible Web-based Services (Commission Generating) AfriTrade Net - Insurance commissions - Bank comm. - Input supply comm. - Consultancy (outsourced) - Research programs - Association Secretariat - Pre-Trade Finance - Passenger Seats Sales etc. Handling & 4c/kg = R40/ton Handling & 10c/kg = R100/ton Flight 0.02 US$/kg = R0.16/kg Total comm.= R160 Offshore 0.02 US$/kg = 20US$/ton Total comm. = R160/ton Offshore 0.02 US$/kg Total comm. = R160/ton Total Revenue Excluding other Web-based Revenues = R720 per 1Ton moved. (Average belly cargo = 8Tons/flight or via a freighter 95 tons/flight or R5 760 ton/belly flight or R68 400/freighter flight (Most important revenues where collected from the value chain & not from the buyer or the seller thereby neutralising the chances of being branded and AGENT

16 AfriTrade.Net & Rural Development

17 Bona Fide Outgrower Primary Production Platforms (Emergent Farmers) Local Processing Administration Workshops Storage of Inputs Training Centre Garages & Equipment Storage Security Bona Fide Outgrower Primary Production Platforms Local Air Strip (Dust strip) Feeder Aircraft Depart for Regional Hub Airstrips Supply Routes from other Feeder Projects Outgrower Feeder Routes Typical African AT.N Supplier Project Composition Agricultural Example - Small Unskilled Farmer Absorption

18 Thank You


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