At first glance, international trade appears straightforward—it’s essentially the exchange of goods and services between countries. How complicated could that be? Well, it remains simple until you realise there are nearly 190 countries worldwide, each with its own unique rules and regulations governing trade.
Now, let’s add a layer of reality: value-added products often fetch better prices than raw materials. While countries like Nigeria and others across Africa are rich in raw resources, meeting international quality standards can be a hurdle. Beyond quality, there’s another critical factor often overlooked: quantity. Sellers may lament the lack of buyers, but when a buyer finally comes along, they might request volumes like 10,000 metric tons per month for six months—volumes that aren’t always readily available or easy to assemble within a contract’s timeline.
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So, the question arises: is international trade only for a select few who can navigate its complexities, or can anyone venture into this space and succeed? Is it as simple as ABC, or more akin to mastering algebra, organic chemistry, or fluid mechanics?
The truth is, you don’t need to be a genius to thrive in international trade. However, the simplicity of exporting depends largely on the systems in place. In countries where the export sector is well-developed and functional, the process can indeed feel as easy as ABC.
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The success of a nation’s export system hinges on the effectiveness of its export ecosystem. This includes exporters, importers, freight forwarders, customs authorities, financial institutions, inspection and certification agencies, export promotion councils, insurers, trade partners, and, of course, the government. Each of these stakeholders plays a critical role in ensuring smooth and seamless export transactions.
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When the export ecosystem is fully developed, the process becomes plug-and-play, enabling men, women, and even young people to venture into exporting their goods and services with confidence. Conversely, in countries where the export ecosystem is underdeveloped or disorganised, exporting becomes more challenging and time-consuming.
Now, let’s reflect on your country’s export landscape. Would you say exporting is simple or complex? Does the bureaucracy involved encourage or discourage trade? If we were to rate the ease of exporting from your country on a scale of 1 to 10—where 1 is extremely difficult and 10 is incredibly easy—what score would you give?
Ultimately, the level of development within the export ecosystem determines whether exporting feels simple or complex. A well-organised and functional ecosystem simplifies the process, while an underdeveloped system introduces challenges.
That said, exporting is not impossible even in underdeveloped systems. It might require more effort, planning, and persistence, but success is achievable. With the right mindset and support, anyone can navigate the world of international trade and make their mark on the global market.
Adetokunbo Adewoyin is the principal consultant at Fortress20 Global Ltd, a trade facilitation and export management company based in Nigeria.
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