By Melisa M Ncube (Opinion)
For many Zimbabwean small and medium enterprises, regional and international markets offer a clear opportunity for growth.
They can open access to new customers, larger orders and new revenue streams.
But exporting also introduces a different level of competition, and having a good product on its own is not enough.
For an exporter or a business considering exports, the key question is simple, what must the business get right before it enters a new market?
The answer starts with readiness.
An international enquiry can expose gaps very quickly.
A buyer may require volumes the company cannot consistently supply, certification the business does not yet have, packaging that meets different standards, or a price that remains competitive after freight, insurance, clearing and distribution are added.
These are better issues to identify before an order is on the table. ZimTrade’s Export Readiness Checker provides a useful starting point.
It allows exporters and potential exporters to assess where they stand and identify the areas that may need strengthening before entering a new market.
For one SME the gap may be certification, for another packaging, production systems or costing, while another may already be technically ready but need better market information or support in identifying buyers.
Once the business understands its own readiness, it needs to understand the market.
One of the biggest mistakes a potential exporter can make is to produce first and search for a market afterwards.
Before increasing production, a company should know who the customer is, what that customer requires, what volumes are needed, what standards apply, what price the market can support and how the product will reach the buyer.
The principle is straightforward.
Produce for a market, not in anticipation of one.
Finding the market, however, is only part of the process.
A buyer is not simply buying one good sample.
They are buying the expectation that the same quality and specification will be delivered every time.
This means the business must be able to supply consistently, maintain quality and meet agreed delivery timelines.
The first order may open the door, but the ability to deliver determines whether the relationship continues.
Standards and certification also need to be considered early.
An NCC and International Trade Centre survey found that more than 70 percent of surveyed Zimbabwean enterprises lacked international certification.
Depending on the product and market, businesses may need to meet requirements relating to certification, traceability, packaging, labelling and product specifications.
Waiting until a buyer has already expressed interest can delay or even cost the business an opportunity.
Finance is another practical challenge.
An SME may have a genuine market opportunity but still require working capital to purchase raw materials, increase production, improve packaging, obtain certification or carry the cost of fulfilling an order before payment is received.
This creates a strong case for more dedicated and appropriately structured export finance for SMEs, particularly funding linked to actual commercial opportunities.
Where the buyer, product, volume, delivery period, price and payment terms are known, it becomes much clearer what the business requires finance for.
Exporters must also understand the real cost of reaching the customer.
The relevant price is not simply the factory gate price.
Transport, insurance, clearing, duties where applicable, warehousing and distribution can significantly affect the final landed cost.
A product may be competitive locally but become expensive once it reaches the destination market.
Pricing therefore has to be based on the full route to market.
For smaller businesses, exporting does not always mean doing everything alone.
An international buyer may require volumes that one producer cannot supply, while certification and logistics costs may be too high for an individual SME to carry.
Clusters, aggregators, contract production and established exporters can provide another route into international markets.
The objective should not necessarily be to make every SME a direct exporter, but to increase the number of SMEs participating profitably in export value chains.
The less visible parts of the business matter as well.
Exporters need to respond to enquiries promptly, prepare accurate quotations, understand payment terms, maintain proper documentation, honour delivery commitments and follow up with buyers.
These may appear administrative, but they directly affect whether the business is seen as a reliable supplier.
A good product is therefore only the starting point but what makes an exporter competitive is the business system around that product.
Therefore, for an SME considering exports, securing the first export order might seem important however the stronger test is whether the business can deliver well enough for the buyer to come back for the next one.
