Expanding trade into neighbouring African markets offers significant growth opportunities for South African SMEs and larger companies, but it involves navigating complex regulatory environments and securing customs clearances. While SMEs face challenges due to limited resources and risk tolerance, larger companies also encounter hurdles. Strategic partnerships can help manage these challenges and support sustainable growth.
"Coordinating shipping, warehousing, and distribution across borders requires specialised knowledge and infrastructure," notes Ryan Gaines, CEO of City Logistics.
One major hurdle is the requirement for a VAT Deferment Account in the destination country. Without this, SMEs face potential delays and complications at customs. The good news is that strategic partnerships can help mitigate these burdens.
Outsourcing to streamline operations
Outsourcing export operations to third-party logistics providers can streamline the entire process. These experts possess the knowledge, networks, and infrastructure to navigate complex trade laws, handle documentation, and ensure efficient customs clearance.
Logistics companies are increasingly relying on in-house, centralised clearing divisions or partnering with clearing and forwarding specialists to provide comprehensive end-to-end export and import management services within Africa.
"For SMEs without a VAT Deferment Account, these specialists step in to handle VAT payments on behalf of the SME, recovering the amount later and managing all necessary paperwork to ensure efficient border clearance," explains an expert.
Other strategies, such as placing dedicated agents at each border crossing, also help ensure swift and compliant clearances.
Connectivity is key
For companies looking to expand into neighbouring countries, the availability of cross-border network service providers offers a significant advantage, ensuring 24/7 connectivity and real-time delivery tracking.
For South African SMEs aiming to expand into neighbouring markets, partnering with a specialised logistics provider can turn a daunting challenge into a manageable task, paving the way for sustained growth and success.
