For Filipino entrepreneurs who want to expand their businesses overseas, exporting to Africa may seem complicated and expensive. The distance, unfamiliar regulations, and challenges of finding customers in foreign markets can discourage smaller businesses from exploring the opportunity.
However, advances in e-commerce, digital payments, and international logistics have made it possible for small businesses to reach customers in overseas markets without immediately establishing physical operations.
According to Hennie Heymans, CEO of DHL Express Sub-Saharan Africa, the key to successful international expansion is not necessarily the amount of capital a business has but how well it prepares before entering a new market.
Heymans, who oversees DHL Express operations across more than 50 countries in Sub-Saharan Africa, believes Philippine small and medium enterprises can explore opportunities in African markets if they understand the requirements and risks involved.
“One of the fundamental changes that has taken place in global trade is the ability for SMEs to connect with their customers – locally and globally, despite not having physical presence in every market,” Heymans said in an interview with Financial Adviser.
“E-commerce has reduced many of the traditional barriers to international trade and opened up opportunities that were previously available only to much larger companies.”
However, he cautions that international expansion requires careful preparation. Businesses that underestimate customs requirements, choose unsuitable partners, or enter markets without sufficient research may face costly setbacks.
Based on his experience across Sub-Saharan Africa, Heymans shares five important considerations for Filipino entrepreneurs who want to begin exporting to the region.
1. Start with one market instead of targeting all of Africa
One of the biggest mistakes foreign businesses make is assuming that Africa operates as a single market.
Although African countries are becoming more economically connected, each market has its own regulations, consumer preferences, distribution systems, and business environment.
“The biggest mistake is treating Africa as a single market,” Heymans said.
For Philippine entrepreneurs, this means that a product successful in one African country may not necessarily appeal to consumers in another.
Businesses should first identify a country where their products meet a specific customer need and where they have a realistic opportunity to compete.
Heymans recommends that companies begin with one market, understand how it operates, establish reliable relationships, and expand only after gaining sufficient experience.
“My advice is always to start with one market, learn quickly, establish the right partners and then expand from there,” he said.
For example, a Philippine company that manufactures specialty food products might begin by researching consumer demand in one country rather than immediately attempting to distribute its products throughout the continent.
The company would need to assess local preferences, competing products, retail prices, and potential distribution channels.
By concentrating on one market, entrepreneurs can limit their initial exposure and gain practical experience before committing additional capital.
2. Understand customs and regulations before shipping
Another costly mistake is failing to understand the documentation and regulatory requirements of the destination country.
Heymans explained that customs procedures, product standards, and import regulations differ across African markets.
“Many export challenges arise because businesses underestimate the importance of documentation and regulatory preparation,” he said.
For Philippine exporters, compliance requirements may include commercial invoices, packing lists, shipping documents, product certifications, and other permits depending on the nature of the goods.
Food products, cosmetics, healthcare products, and electronic equipment may be subject to additional standards or registration requirements.
Businesses also need to understand applicable import duties, taxes, and other charges that could affect the final selling price.
A product that appears profitable based on its manufacturing cost and intended selling price may become less competitive once shipping expenses, customs duties, taxes, and distribution costs are included.
For example, a Philippine entrepreneur who plans to sell a product overseas for ₱1,500 may discover that international shipping, customs charges, and local distribution expenses significantly reduce the expected profit.
If these costs are not calculated before shipment, the business could lose money even when customers are willing to purchase the product.
Heymans believes entrepreneurs should complete their regulatory research before committing substantial resources.
“Before you even ship your first product, it is crucial to first, identify a specific target market rather than treating Africa as a single destination. Second, understand the customs, compliance and import requirements before launching,” he said.
This preparation can help businesses avoid shipment delays, unexpected expenses, and problems with customs clearance.
3. Find reliable local business partners
Even when a company understands its target market and regulatory requirements, establishing reliable commercial relationships remains essential.
Heymans considers partner selection one of the most important factors in successful international expansion.
“The right local partner can accelerate growth considerably; the wrong one can slow it down,” he said.
Local partners can help Philippine exporters understand customer preferences, identify distribution opportunities, and navigate commercial practices that may differ from those in the Philippines.
Depending on the business model, these partners could include distributors, importers, retailers, logistics providers, or local sales representatives.
However, entrepreneurs should evaluate potential partners carefully before entering commercial agreements.
A distributor may offer access to customers but could also require substantial discounts, exclusive arrangements, or extended payment terms.
These conditions can affect the profitability and cash flow of the exporting business.
For example, a Philippine manufacturer that agrees to supply products on credit may need to finance production and international shipping several weeks or months before receiving payment.
If the distributor delays payment, the exporter could face financial pressure even if the products sell successfully.
Businesses should therefore assess a potential partner’s financial capacity, commercial reputation, distribution capabilities, and contractual obligations.
Heymans believes the success of international expansion often depends more on preparation than enthusiasm.
“Ultimately, successful market entry is usually less about ambition and more about preparation,” he said.
4. Use e-commerce to test demand before making large investments
One of the most significant developments in international trade is that businesses no longer necessarily need physical stores or offices in every market they serve.
Heymans believes e-commerce has created new opportunities for smaller companies that previously lacked the resources to expand internationally.
Digital marketplaces, social media platforms, and international delivery services can allow entrepreneurs to reach overseas customers while maintaining their primary operations in the Philippines.
For example, a Philippine producer of specialty food or wellness products could use online platforms to test demand in a selected African market.
Rather than immediately establishing a local warehouse or retail operation, the business could begin with limited shipments to determine whether consumers are willing to purchase its products.
This approach allows entrepreneurs to evaluate customer interest, pricing, shipping costs, and repeat purchases before committing to larger investments.
Heymans cited a recent initiative in Ethiopia as an example of how digital commerce can connect smaller producers with international customers.
DHL Express Ethiopia and EXM Global PLC launched what he described as Ethiopia’s first multi-brand roasted coffee e-commerce export platform.
The platform allows local coffee roasters to access overseas markets through an integrated system that combines digital commerce, quality assurance, regulatory compliance, and international logistics.
“Through the platform local roasters are able to access international markets through a fully integrated export solution that combines digital commerce, quality assurance, regulatory compliance, and world-class express logistics,” he said.
Although the Ethiopian initiative focuses on exports from Africa rather than imports into the region, it illustrates how smaller businesses can use digital platforms and logistics services to participate in international trade.
Heymans believes Philippine entrepreneurs could apply a similar approach when exploring African markets.
“We could see a Philippine producer of speciality food products or wellness products using digital marketplaces and social media platforms to test demand in South Africa, Kenya or Nigeria, while using international shipping solutions to fulfil orders,” he said.
“This allows the business to learn about customer preferences and market demand before making larger investments.”
However, entrepreneurs must still ensure that their products comply with local import requirements and that international shipping costs do not eliminate their profit margins.
5. Prepare for logistics, payment, and financial risks
Exporting introduces financial and operational risks that domestic businesses may not encounter regularly.
International shipments can involve customs clearance, additional documentation, longer delivery periods, and unexpected expenses.
Businesses must also consider how they will receive payments from overseas customers and how currency movements could affect their earnings.
For smaller exporters, these issues can be particularly important because they often operate with limited working capital.
A business may need to pay for inventory, packaging, shipping, and other expenses before receiving payment from an overseas buyer.
If a shipment is delayed or a customer fails to pay on time, the company may face difficulties funding its next production cycle.
For this reason, entrepreneurs should carefully evaluate the total cost of fulfilling international orders rather than concentrate solely on the potential selling price.
They should also establish clear payment arrangements with customers and distributors, understand the risks associated with foreign currencies, and maintain sufficient cash reserves to support their export activities.
Heymans explained that programs such as DHL GoTrade aim to help smaller businesses understand these challenges.
“Through GoTrade, we work with SMEs across Africa to help them understand international markets, customs requirements, logistics, trade finance and digital trade opportunities,” he said.
He believes businesses that invest time in understanding international trade requirements are better positioned to expand successfully.
“The businesses that succeed internationally are usually the ones that invest in learning before they invest in expansion.”
Why preparation matters more than business size
For Philippine entrepreneurs, the opportunity to reach customers in Africa reflects a broader transformation in global trade.
As companies diversify their supply chains and explore new markets, smaller businesses have more ways to participate in international commerce.
Digital platforms allow entrepreneurs to identify potential customers, while international logistics networks can help them fulfill orders without immediately establishing extensive overseas operations.
However, Heymans cautions that access to these tools does not eliminate the need for careful planning.
Businesses still need to understand their customers, calculate their costs, comply with regulations, and establish reliable commercial relationships.
He believes smaller companies can adapt to changes in global trade if they develop the knowledge and connections needed to operate internationally.
“SMEs are often the first to feel the impact of trade disruption, but they are also among the most adaptable,” he said.
“As supply chains diversify and businesses seek new markets and suppliers, SMEs that embrace digital trade, build international partnerships and invest in export readiness will be well positioned to grow.”
For Filipino entrepreneurs interested in Africa, the first step does not necessarily require opening an overseas office or committing substantial capital.
It can begin with identifying one promising market, understanding its requirements, and testing whether customers are willing to purchase their products at a profitable price.
The objective is to establish a viable export business before committing resources to larger expansion.
As Heymans emphasized, successful international growth depends on preparation, market knowledge, and the ability to develop the right business relationships.
