Business idea of the week: Exporting African Coffee
Staying with export, our idea this week focus on finding new markets for the great coffee now found in Africa.
Coffee as enjoyed by most of us, not only is South Africa but across the globe have traditionally been produced and sold in South America, India and Arabia.
Although this black gold has also been produced throughout Africa for many generations, it is only now that areas like the US and Europe have started to enjoy African Coffee. The demand for African coffee has further increased in the last few years with the awareness created around free trade, of which free trade coffee has been one of the most popular.
Today popular coffee franchises like Startbucks, Coffee republic, Nero and many others are selling African coffee by the packet load and coffee production in countries like Rwanda and Nigeria can't keep up with the demand.
The opportunity now exists for knowledgeable entrepreneurs or those with contacts in the right areas to get involved in both the production and export of Africa's new black gold.
Upside: Relatively low investment is needed with high profit margins for those entrepreneurs who can take charge of the production process. Low labor costs, high coffee prices and favorable exchange rates makes this one a winner.
Downside: Finding the right marketing channels and guaranteeing the quality of and reliability of supply may be tricky of you are not personally involved
Of course their is still the competition from traditional coffee producers.
Verdict: A great business idea that seems ideal for the South African entrepreneur with gusto, foreign contacts and a thirst for earning foreign currency.
Please contact me should you need further information and support with this idea.