AfriTrade.Net AfriTrade.Net Empowering Empowering Individuals & Individuals &

Companies to Trade Companies to Trade CompetitivelyCompetitively

AT.N is not a marketing chain AT.N is not a marketing chain offering it is a offering it is a producer initiatedproducer initiated solution specifically designed for solution specifically designed for

Small Medium Companies Small Medium Companies (SME’s) that battle to export(SME’s) that battle to export

_____________________ _____________________

Bring back consolidated bulk Bring back consolidated bulk trading benefits trading benefits without the without the

inefficienciesinefficiencies (Industries Logistically (Industries Logistically

Disorganised)Disorganised)

The Problem!! The Problem!!

Uncompetitive Uncompetitive Marketing (Logistics) Marketing (Logistics)

& Dysfunctional & Dysfunctional Trading Chains Trading Chains

Exposing Exposing FirstFirst Time Time or or SME SME Exporters to Exporters to

Serious Serious RisksRisks

Offshore Buyer/Importer cannot serve their customer’s with the diversity they require speedily and cost

effectively

Supermarket, retailer, factory cannot fill his/her shelves/inputs with the diversity they require speedily

and cost effectively

Offshore national transport company always looking for more business

Offshore clearing company always looking for more business

International & intercontinental transporters need more cargo to offer

reduced rates

National transport company always looking for more business

National clearing company always looking for more business

Processing facilities require volume primary product to reduce unit processing costs to

remain competitive

Primary producers export agents require volume product & markets to offer competitive quality service

Primary producers/manufacturers always looking for markets & need to know what to produce cost

effectively Problem initial low & erratic volumes (poor rates)

Governments lack the business acumen, urgency & dedication to assist, often opting

for the copout clause “this is a private sector matter we are here to provide a

policy framework & direction”

Banks have the notion that industry must “sort itself out” and come with a

cohesive structured plan for consideration

Producer/Manufacturing Associations are sometimes understaffed & lack the skills to be able to put the cost

effective value chains together, maintain them & grow them

Clearly all these parties need to be managed in a

sustained and cost effective manner, to the mutual

benefit of all concerned. The AT.N instrument is

primarily a SME producer/manufacturer

favouring tool

E

X

P

O

R

T

I

N

G

I

M

P

O

R

T

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G

And so Imagine for a Moment that you And so Imagine for a Moment that you can Suddenly get Access to Markets in can Suddenly get Access to Markets in

a hitherto untapped Market & Deal a hitherto untapped Market & Deal Privately & Confidentially with your Privately & Confidentially with your

Buyers. You can generate a Quote in Buyers. You can generate a Quote in Minutes Competitively & Trade Minutes Competitively & Trade

Securely & Safely Along a Logistics Securely & Safely Along a Logistics Solution that even offers You Trade Solution that even offers You Trade

FinanceFinanceEnter AfriTrade.Net (AT.N)Enter AfriTrade.Net (AT.N)

Servicing AT.N Target Markets through African Catchment CollaborationServicing AT.N Target Markets through African Catchment Collaboration

How Do I get How Do I get Involved with Involved with

AT.N & How does AT.N & How does it Work??it Work??

1. Understand the 1. Understand the Philosophy of the Philosophy of the AT.N Program to AT.N Program to

Facilitate Trade for Facilitate Trade for Small Small

Companies/First Companies/First Time ExportersTime Exporters

3 Key Ingredients to Facilitate Trade – AT.N Addresses3 Key Ingredients to Facilitate Trade – AT.N Addresses

AT.N Buyers Engage AT.N Buyers Engage SellersSellers

AT.N Buyers Engage AT.N Buyers Engage SellersSellers

SSEEAAMMLLEESSSS

LLOOGGIISSTTIICCSS

THETHE

THREETHREE

STRANDEDSTRANDED

TRADETRADE

“ “CABLE”CABLE”

$ Banking $ Banking TransactionsTransactions

$ Banking $ Banking TransactionsTransactions

ii

ii

ii

$$

$$

$$

$$

S E L L E R SS E L L E R S

B U Y E R SB U Y E R S

2. Producers & 2. Producers & Traders have to Traders have to be Accredited be Accredited

to the Program to the Program - Free- Free

How do Buyers & Sellers Become How do Buyers & Sellers Become Accredited to AT.N?Accredited to AT.N?

AfriTrade Net Website

Administrators

AT.N Bank accredits buyer (indirectly)

Buyer receives accreditation status from AT.N - may issue electronic “Purchase Orders”“Purchase Orders” to Suppliers

Russian/Gulf Buyer/Import

er

Buyer considers AT.N Tutorial on website

Buyer applies for accreditation through approved Russian Bank to AT.N International Bank

I I N N T T E B PE B PR A AR A AN N RN N RA K TA K TT I NT I NI N EI N EO G RO G RN N A A L L

AT.N Bank communicates accreditation to AT.N Operations Center

AT.N Bank accredits supplier (indirectly)

Supplier receives accreditation status from AT.N - may issue “Offer to Purchase Orders”“Offer to Purchase Orders” to Suppliers

Industry Association or Individual SME

exporter

Supplier considers AT.N Tutorial on website

Supplier applies for accreditation through approved South African Bank to AT.N International Bank

AT.N Bank communicates accreditation to AT.N Operations Center

Approved Russian Bank issues buyer guarantees to AT.N Bank Russian Bank Guarantee

Approved South African Bank issues supplier guarantees to AT.N BankSA Bank Guarantee

3. Understand How 3. Understand How Safe & Easy it is to Safe & Easy it is to Trade Successfully Trade Successfully & Grow your Export & Grow your Export Business with AT.NBusiness with AT.N

AfriTrade Net Website

Administrators

Russian/Gulf Buyer/Import

er

Regional Hub (E.g.

Port Elizabeth)

1. Enquiry comes in from accredited

buyer

2. Accredited exporter (SME) Quotes

““Offer to Purchase”Offer to Purchase”

3. Market places order via AT.N Guaranteed Payment

Instrument with Partner Banks – ““Purchase Order”Purchase Order”

4. SME exporter confirms space in section of

value chain with logistics SP’s

5. Exporter advises shipment date

6. Shipment is despatched & transaction advised via email & SMS

US/UK/UAE

Airport

National Hub (E.g. JHB)

Industry Association or Individual SME

But How will the AT.N But How will the AT.N Shareholders make Money Shareholders make Money

If They get no If They get no Commissions from the Commissions from the

Products TradedProducts TradedIn the Logistics Chain!!In the Logistics Chain!!

AT.N does NOT trade, but it AT.N does NOT trade, but it creates the ENVIRONMENT for creates the ENVIRONMENT for

trade to take placetrade to take place

Russian or UAE

Buyer/Importer

Regional Hub (E.g.

Port Elizabeth)

National Hub (E.g. JHB)

Offshore Hub

Airport

Commercial Clients

AT.N Acting as Commission

Agents

Own Project Supply Base

Inter-continental Aircraft

National Transport @ 10c/kg = R100/ton

Other Accessible Web-based

Services (Commission Generating)

AfriTrade Net

- Insurance commissions

- Bank comm.

- Input supply comm.

- Consultancy (outsourced)

- Research programs

- Association Secretariat

- Pre-Trade Finance

- Passenger Seats Sales etc.

Handling & forwarding @ 4c/kg = R40/ton

Handling & forwarding @ 10c/kg = R100/ton

Flight rates @ 0.02 US$/kg = R0.16/kg Total

comm.= R160

Offshore clearing @ 0.02 US$/kg = 20US$/ton

Total comm. = R160/ton

Offshore Redistribution @ 0.02 US$/kg Total

comm. = R160/ton

Total Revenue Excluding other Web-based Revenues = R720

per 1Ton moved. (Average belly cargo = 8Tons/flight or via a

freighter 95 tons/flight or R5 760 ton/belly flight or

R68 400/freighter flight (Most important revenues where collected from the value

chain & not from the buyer or the seller thereby

neutralising the chances of being branded and AGENT

AfriTrade.Net & AfriTrade.Net & Rural Rural

DevelopmentDevelopment

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production Platforms Platforms (Emergent (Emergent

Farmers)Farmers)

Lo

cal Pro

cessin

g

Administration

Workshops

Storage

of Inputs

Tra

inin

g C

entr

e

Garages & Equipment Storage

Security

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Bona Fide Bona Fide Outgrower Primary Outgrower Primary

Production Production PlatformsPlatforms

Local Air StripLocal Air Strip

(Dust strip)(Dust strip)

Feeder Aircraft Feeder Aircraft Depart for Depart for

Regional Hub Regional Hub AirstripsAirstrips

Supply Routes Supply Routes from other from other

“Feeder” Projects“Feeder” Projects

Supply Routes Supply Routes from other from other

“Feeder” Projects“Feeder” Projects

Outgrower Outgrower “Feeder” “Feeder” RoutesRoutes

Typical African AT.N Supplier Project Composition Typical African AT.N Supplier Project Composition Agricultural Example - Small Unskilled Farmer Agricultural Example - Small Unskilled Farmer

AbsorptionAbsorption

Thank YouThank You