If you are searching for a way to make money from export, your search has ended.
Managing Director, Kenneth Ezeji & Associates Limited, Kenneth Obi, said charcoal is one area of non oil export which has the potential to generate thousands of euros and that many Nigerians are now successful entrepreneurs since they discovered the gold mine.
Though, one of the nation’s biggest export earner, it cost no fortune to set up and there is no shortage of market overseas. Added to this, one can run it from home.
Given the right mentorship, Obi said the business is simple to start and in huge demand that anyone can make money doing it.
He said Germany, Belgium, Greece the Netherlands, Italy, Poland, Spain, Bulgaria and UK are as substantial importers of charcoal. As charcoal is an essential commodity in Africa, it is one of the most important sources of alternative fuel across Europe. Consumption is put at eight million tonnes of pellets annually. The largest exporters of charcoal in the EU are Poland, France Holland Germany and Belgium. They buy and sell to the rest of Europe.
The volume of imported charcoal needed in Europe vary from one country to another.
The total level of volume of exports from Nigeria, he noted can not satisfy the demand in the European market.
Although the market is served from a number of competitive countries, Ezeji said exports from Nigeria, and other African countries are highly ranked because of the hard nature of the charcoal. He said European importers prefer charcoal produced from hardwood in Africa which is heavy and strong. Competitors are Malaysia, Indonesia, Brazil and Thailand. According to him, the quality of charcoal depends on the wood species.
He said companies overseas can absorb any volume and that all the companies in Nigeria cannot meet the demand of the Europe market.
Nigeria, he said has vast forest area that can produce thousand of tonnes of charcoal annually.
According to him, though there are charcoal sources in Europe, most of them are made from softwood and are soft and light. Apart from that, they are bad conductors of heat and electricity, and burns without flame.
Today,there is increased usage of charcoal. Besides being the fuel that cooks steaks, hotdogs, and hamburgers ,a number of companies have discovered that charcoal can be used in certain metallurgical purifying treatments and as a filter to remove organic compounds such as chlorine, gasoline, pesticides, and other toxic chemicals from water and air.
The export consultant said the nation would benefit from intense activities to boost charcoal export as an economic driver and that there is minimum capital needed to establish the business which will stimulate the local economy.
He said the overhead is small. Compared to agro commodities exports, he said an small, investment is needed. He said if one is starting small two equipments are needed - a scale and a moisture meter and storage area is needed near the production site.
An initial investment of N615, 000 will cover the cost of product sourcing and landing the charcoal at the product. The money will be enough to acquire enough charcoal that will fill a 40-feet high cube container, weighing 23 tonnes. Charcoal from the south west part of the country would always provide required tonnes. But if the charcoal is sourced from Benue, Obi said one would require 27 tonnes to fill a 40-foot container, unlike the South West where only 23tonnes would fill a 40-foot container.
The rate of returns is high .According to him, one can make between 170 and 185 euro per tonne-free on board (FOB) using the Lagos port for a case example.
His words: You can turn your investment ten times within one year and profit in each trip is between N250, 000 and N270, 000.
Where individuals cannot raise the initial capital, he said they can form cooperatives and do the business.
He said no theoretical training is needed but practical which involves where to source for the goods and workable strategies to deploy.
Obi said the markets are gradually growing and that households in Europe prefer it as a relatively clean fuel for their fireplace and furnace if of local carbon content.
He said the challenge is building the capacity of the exporters to explore the markets and that his company is ready to train the entrepreneurs and encourage new ones to export charcoal to the European market. The programme includes charcoal sourcing and packaging.
The training, he said, will expose the prospective exporters to what is required to pass the products successfully through checks, the mandatory export papers.
Obi said his company has tested different strategies to help people break into the business as proprietors of small scale outfits.
Urging the government to promote charcoal exports as a means of creating wealth through exports of non-oil products, Obi sees the business generating several employment opportunities and engaging a fair level of participation of both youths and adults in the nation.
According to him, charcoal export can provide longtime income for Nigerian entrepreneurs who are will to participate.
Unlike agro produces, the export consultant said the business is not seasonal and that the cycle can last for 10 months.
According to him, it is only between July and September that a marginal drop is recorded as a result of the rains and that during winter, companies are involved in maintenance of the machines in Europe and this might affect their readiness to accept imports.
As the search for alternative fuel grows, the market for charcoal is expected to keep pace. This leaves no dull moment for Nigerian companies seeking f opportunities for mega growth.
For Obi, charcoal business is not just for big businesses anymore. He said big companies are reaping the benefits and so small start-ups. According to him, the opportunity is within the grasp of every small business owner but with passion for export.
The charcoal industry, he indicated is a sustainable opportunity and engine for meaningful and sustainable socio-economic development at the household and national levels.
In Africa, charcoal business is worth more than $1billon a year in terms of employment, rural livelihoods and the wider economy.
He sees potential for new entrants flourishing in an atmosphere of little or no competition.
Of the many benefits of charcoal, the greatest use as activated carbon. That is, the carbon structure with modified charcoal freed from the bonds of other elements so that the surface and active center becomes widespread.powdered carbon
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