Exclusives

How Indonesian trade expo opens opportunities for Nigerian businesses

by CHUKS OLUIGBO

July 27, 2014 | 12:00 am
  |     |     |   Start Conversation

For Nigerians with investible cash and in search of new business and investment opportunities, the 2014 Trade Expo Indonesia (TEI) affords them the chance to explore Indonesia with all its business potentials.

Pontas Tobing, director, Indonesia Trade Promotion Centre (ITPC), Lagos, made this known, Thursday, at a press event to unveil the programme for this year’s edition of the trade expo.

TEI is an annual event designed to promote high quality Indonesian-made products and services to the global market, improve business and investment networking as well as boost prospects and chances, particularly for those in search of venture and investments in Indonesia’s industrial sector.

“Visitors to the trade expo will have the chance of meeting one-on-one with over 2,000 exhibitors from all over Indonesia showcasing the latest premium quality and export-ready products and services, meet suppliers that are capable of supplying products and services which they require, be able to explore joint venture opportunities with prospective business partners and interact with Indonesian top government officials, business CEOs and entrepreneurs to gain new understanding,” said Tobing at the press conference which held at the Embassy of the Republic of Indonesia, Victoria Island, Lagos.

The opportunities for Nigerian businesspeople, particularly importers of consumer goods, lie in the fact that there is a large consumer class developing in Nigeria, with potentially as many as 160 million members by 2030, according to McKinsey Global Institute’s (MGI) in its recent report released last week.

The consulting firm projects that, based on this expanding consumer class, consumption in Nigeria could more than triple, rising from $388 billion a year today to $1.4 trillion a year in 2030, an annual increase of about 8 percent, adding that this would make trade the largest sector of the economy and provide a good opportunity for makers of packaged foods and fast-moving consumer items such as juices, which could grow by more than 10 percent per year.

These opportunities become even more compelling given that capacity utilisation in Nigeria’s manufacturing sector is reported to be at 52.7 percent for the second half of 2013, leaving a demand-supply gap that could be bridged through importation of quality products.

trade expo

It is also good news for Nigerian businesspeople that this year’s expo, 29th in the series, which holds October 8-12 at the Jakarta International Expo, Kemayoran, Indonesia, would feature six product zones, which include agricultural products and manufactured goods, home decorations and building materials, and furniture, said Bona Kusuma, deputy director, ITPC, at the press event.

Other product zones are fashion, lifestyle and creative products, service and investment, and export development pavilion, which would showcase the innovation of Indonesian products and services, including strategic industrial products, ICT and creative products, he said.

“Total trade between Indonesia and Nigeria for non-oil and gas in 2013 was $588 million with 26.8 percent growth trend. This has led to the investment of over 15 Indonesian companies here in Nigeria and they all have achieved a lot in a few years of establishment,” Tobing said.

He said the 2014 trade expo targets $2 million business transactions, 10,000 visitors and 2,000 exhibitors, adding, “It is my greatest wish that the trade volume between Nigeria and Indonesia be increased by at least 30 percent before the end of 2014.”

The theme for the 2014 expo, ‘Remarkable Indonesia’, is selected to reflect the wide ranging variety of products, services and investment destination which Indonesia is ready to offer, ranging from the mining sector, manufacturing, services, transportation, storage and telecommunication, and automotive sectors, according to its promoters.

Meanwhile, some Nigerian businesspeople at the press conference who have been engaged in business relations with Indonesia for many years testified to the very cordial business relationship they have enjoyed over the years, the high standard and quality of Indonesian products, and the huge business opportunities that abound in Indonesia. They included Richard Ibru, managing director, Hadibru Nigeria Ltd, Edwin Okafor, managing director, Eagle and Gold International, and Bimbo Akande, chief executive officer, Bimak Enterprises.

CHUKS OLUIGBO


by CHUKS OLUIGBO

July 27, 2014 | 12:00 am
  |     |     |   Start Conversation

Big Read |  

Analysis

What Nigeria must do before signing AfCFTA

Nigeria’s President Muhammadu Buhari last Wednesday gave a hint that he would sign the African Continental Free Trade Area (AfCFTA)...


MTN Banner ADS 2


WSE

Newsletter Fixed income