African traders seek a fair deal in China

Entrepreneur has created a business out of helping make business connections in Guangzhou

In downtown Nairobi, some 60 entrepreneurs who have small and medium-sized businesses turned up recently for a briefing on their forthcoming visit to Guangzhou, Southern China.

For many, this was to be the first time they would attend the China Import and Export Fair, commonly known as the Canton Fair. The event, the largest trade fair in China, has been held each spring and autumn since 1957. For others, it is a chance to expand their line with innovative products.

Gao Wei (above) has arranaged trips taking about some 60 entrepreneurs from Africa to Guangzhou, China traveling for the Canton Fair. Joseph Njoroge (below) is one of these. Photos Provided to China Daily

An initial group of 110 people signed up for the $1,850 trip, though 20 were traveling independently and would meet up with the group in China. Two more groups were scheduled to leave later this month.

Gao Wei, 35, is the architect of the trips, which blend seven days of business and leisure. Gao, the managing director of China Information and Culture Communications Kenya Ltd, gives detailed suggestions on how the participants can make use of their time. He has been offering the services for nine years.

Gao started off in 2003 as an education consultant who also offered basic Chinese language classes. "We assisted Kenyan students pursue higher education in China. Three years later, we expanded our business into providing business consultation services for people who desire to trade with China," he says. That year, 2006, he founded his business.

His first group had only four people. Despite the low turnout, he decided to push on.

"We are a bridge between the two countries. The needs of the two peoples are dynamic and my business has grown with the idea of assisting entrepreneurs to realize their dreams," Gao says.

In Kenya, Gao's staff of five helps entrepreneurs with paperwork. They assemble information needed to obtain a visa, an issue that has become problematic for many.

Earlier this year, the Chinese embassy launched an online portal that requires travelers to apply and book appointments online. Due to the sheer number of applicants, many traders ended up rescheduling or canceling their travel engagements. Gao says through his company, the application is done as a group and documents are submitted correctly and on time.

Gao assures his clients that they will be picked up on arrival by English-speaking personnel who will attend to their needs. "Visiting China is best done by the Chinese," he quips.

Accommodation, 40 minutes from the Canton Fair venue, provides traders with easy access to other markets, Gao says. Guangzhou is also famous for furniture and other light industries.

He advises group members to focus on their area of interest in the first three days.

The fair is well organized, and industries are grouped together. "Make sure you exhaust these booths first by viewing the products, knowing the prices, bargaining and even requesting a factory visit, he advises. "Do not just pick up brochures."

The remaining days could be used to explore other markets and experience the city's cosmopolitan side, including distinctive cuisine, impressive architecture and interesting parks, he tells the traders.

It was to be Henry Njoroge's first visit to China. Previously, he bought from Dubai in the United Arab Emirates. But he wanted to expand his construction business and improve his profit margin, he said. "Most things you buy in Dubai or locally are manufactured in China, hence my interest in Guanghzou."

His biggest concern was safety. In Dubai, he was impressed by how secure it was. He was less certain of Guangzhou.

In the briefing, Gao assured his clients that China is safe, adding that petty crime exists in China just like anywhere else. "You need to be careful, especially when exchanging currency. One also needs to take care of one's belongings while shopping."

Sarah Odoyo was making the journey a second time with Gao's company. The company ironed out challenges such as the language barrier, transport, accommodation and interpreters, who are costly if procured independently, she said.

"The Canton Fair exposes small entrepreneurs to a whole range of products under one roof. Ideas are generated while there," says the businesswoman, who intended to look into products targeting the Christmas season.

Joseph Njoroge, director of Eden Park Country Gardens Ltd, a real estate company, says China is very open to doing business with small and medium-sized African enterprises. He is attending the Canton Fair for the fifth time with Gao's company.

Last year he bought about 12,000 doors for about $876,000. "If I had procured them locally, I would have spent at least $3 million," says the entrepreneur, who has been in real estate and construction for more than 10 years. He also hopes to open a 100-bed hotel in Nairobi, which is his focus on this trip.

Going as a group is advantageous, he says, because Kenya's good reputation accompanies them. "Chinese love Kenyans because they know we are good businesspeople," he says, adding that the foray Chinese companies have made into Kenya has created many millionaires. "It is a step in the right direction as competition is increased and many more markets are opened through trade blocs."

Previously, Joseph Njoroge used to buy from Thailand, Malaysia and the UAE. But easy access to the Chinese market has changed the dynamic.

China has been good for his business, he says. "One only needs to have a good idea and capital."

Gao says he first came to Kenya while taking a break from his business management studies at Northwest Normal University in China. He noticed the entrepreneurial spirit of the local community. "I therefore felt the need for Kenyans to have access to the Chinese market."

The idea materialized only after careful observation of both the Kenyan and Chinese markets, he says, and he came back to work after finishing his studies.

"I realized that Kenyans feared visiting China because of a lack of market knowledge. They would spend a lot of time looking for accommodation and markets instead of engaging immediately with manufacturers. I saw an opportunity."

His services have brought repeat business of about 20 percent. The other 40 percent is from referrals and the rest is found through placing ads in newspapers a month before the fair starts, he says.

His close relationship with his clients has helped expand his business to facilitating cargo handling from China. "Most of my clients cannot fill a 20-foot container in the initial visit. We therefore consolidate the cargo and handle it till the port of Mombasa, while a professional clearing agent handles the rest," Gao says.

He acknowledges that his charges are slightly higher, but he says it is because they use a reputable shipping company to ensure credibility and reliability. "The 45 shipping days are OK for most of our clients. They are happy."

Moreover, the relationship with his clients is broad. While visiting manufacturers, Gao's Chinese staff help them to select items and bargain. "If the client has brought a sample picture, we ensure that it is followed to the letter in their absence. We inspect the loading and shipping."

While he has prospered, his business is not devoid of challenges. Currency fluctuations, for example, erode his clients' purchasing power.

"My clients cannot purchase the quantity they want because of the shilling depreciating against the dollar. We also had to revise the price of the package upwards for the first time this year."

He attributes this to a drop in client numbers this year. Last year, he had groups averaging about 120 people. This year it has fallen by about nine people.

Despite the slightly smaller number, he says, he is buoyed by the increase in referrals. He believes it is due to his dedication to good customer experience. "I know banking institutions offer this kind of service to their business customers. But my product is far superior."

The China Import and Export Fair attracted 24,000 exhibitors and more than 200,000 foreign buyers last year. About $30 billion in goods were exchanged.

Lucymorangi@chinadaily.com.cn

(China Daily Africa Weekly 10/16/2015 page19)