Taking a hypothetical order for five containers of moringa tea as an example, Oulimata Sarr, former Senegalese minister of economy, planning and cooperation, highlighted the production and financing challenges that a small or medium-sized enterprise could face.
Speaking at a recent meeting hosted by the Chinese embassy in Senegal on China’s zero-tariff policy, Sarr said the policy creates new market opportunities, but companies must be able to “finance orders”, “meet relevant standards” and “better understand their target customers” before scaling up production.
These concerns were shared by Randa Filfili, head of Zena Exotic Fruits, a Senegalese company that has processed fruits and vegetables for about four decades. Its product range includes juices, jams, mango puree and cereal-based products made without preservatives or artificial flavorings.
Zena already exports to the United States. To enter the Chinese market, Filfili said the company needs clear information about food safety standards, required testing, registration procedures and trademark protection rules. The company is ready to adapt its production, she said.
Product testing presents an immediate challenge. Some tests required by overseas markets cannot be conducted in Senegal under conditions the company considers sufficiently reliable. Zena therefore sends samples to laboratories in France or Spain, which adds to both costs and time.
Securing a stable supply of fruit is another concern. Mango and guava trees take several years to bear fruit, and few investors are willing to wait that long. Filfili hopes that agricultural projects in Senegal would take greater account of the needs of local processors, which sometimes struggle to obtain raw materials in sufficient and consistent quantities.
The Senegalese Condiment Company, meanwhile, has begun testing the Chinese market. More than 50 bottles of chili sauce and puree have been shipped to China as samples for evaluation, rather than as commercial exports.
“We are trying to enter the Chinese market,” said Jade Maky, the company’s general manager.
The company believes Senegalese dried chili peppers and sauces could find a market in China. It must first complete sanitary and phytosanitary procedures and then establish contacts with importers and distributors.
Maky hopes that steady overseas demand could also help improve the organization of Senegal’s chili industry, where much of the production and trade remains informal.
The experiences of the two companies underline a distinction often overlooked in discussions of trade policy: removing tariffs lowers the cost of market entry, but does not automatically grant approval for products to be sold. Rules of origin, sanitary controls and market-access procedures still apply.
‘Open door‘
“Zero tariffs alone do not guarantee market access. They represent an open door. It is up to us to walk through it with products that are competitive, compliant, processed and responsive to demand,” said Mamadou Abibou Diagne, secretary-general of Senegal’s Ministry of Fisheries and Maritime Economy.
Senegal still exports large quantities of minimally processed fishery products. Diagne said fresh, chilled, frozen, dried, smoked and prepared fish could appeal to different segments of the Chinese market.
He stressed that more processing, preservation and packaging should be carried out in Senegal so that a larger share of the value generated remains in the country.
XINHUA