The gradual global shift from the mass distribution of oil products has opened up opportunities in several other energy sectors. This trend has set a pace for the widespread demand of cheaper energy sources for households and communities. Since the cost of kerosene, diesel, and petrol still somewhat carry high market figures, Africans and many other countries seek cheaper alternatives. One lucrative source is charcoal, and this has given rise to a large charcoal export industry
Charcoal provides a low-cost method of cooking for local communities around the developing part of the world. Most of the locals living in these small communities cannot afford to use cooking gas, kerosene, or even electric cookers with the absence of electricity. And as a result, this Charcoal alternative represents more than 80% of the total energy used in preparing household meals in Africa.
With a large charcoal market existing in Europe, America, & Asia, its global worth continues to retain a multi-billion Dollar value. This poses a huge opportunity for investors looking to make investments in an energy sector. For instance, 70% of the slightly over 60,000 metric tons of charcoal used yearly in the United Kingdom comes from Africa. A charcoal supplier exporting between to 10,000 metric tons yearly would be generating an annual revenue of well over of 2,000,000 Euros.
See Also: How To Start Exporting Muscovite Mica Minerals From Nigeria To International Buyers
First, What Is Charcoal?
Charcoal is a pure carbon also called char, that is made by cooking wood in a low oxygen setting, which is a process that can take several days to burn off volatile compounds like water, methane, hydrogen, and tar.
So, What Is The Charcoal Export Business About?
The charcoal export business is the export of charcoal from Nigeria to several countries around the world.
Facts About Charcoal Export
- The international selling price of charcoal is anywhere from $200 to $600 per ton.
- Charcoal is used in some toothpastes.
- Charcoal is sometimes used in cosmetics.
- Charcoal is a great exportable product from Nigeria.
- Charcoal is used for cooking food in various forms.
- The profit margins on the sale of Charcoal to international buyers can be anywhere from 30% to over 100% depending on if you’re the producer, are buying from the direct source, and the final price agreed to with the buyer.
- As a broker, you can venture into this business with $0.
- Nigeria is estimated to have limitless access to charcoal because of its widespread forest areas.
- There are large volumes of charcoal for purchase in Nasarawa, Kaduna, Jos, Minna, Egbe, Jebba, Oyo, and several other states in Nigeria.
- Charcoal prices are calculated in metric tonnes.
- Charcoal is made in a process called carbonization.
How Is Charcoal Made, And In What Areas Of Nigeria?
Charcoal is largely made from tropical woods; although some variations like charcoal briquettes are made from coconut shells. During the production process, wood is burnt at really high temperatures in the absence of air. This production process is termed carbonization.
The production of charcoal is done in various communities and states around Nigeria. Some are Kaduna, Jos, Minna, Egbe, Jebba, Oyo, Nasarawa, and several others. These areas are high production centers, but production can also be carried out in most other parts of the country.
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Is Investing In The Charcoal Export Business Ethical?
The arguments on the ethical rudiments of the charcoal business stand valid. While venturing into this energy sector would mean mass deforestation, global warming, and several other demeaning factors, without the charcoals been sold in the local markets, many Africans living in the local communities would be unable to afford high-cost energy resources like kerosene and cooking gas to prepare their daily meals. 80% of the individuals who use charcoal products live below the poverty line, and as such, cannot be forced to use products they cannot afford. This unfortunate situation causes them to use the low-cost alternatives available to them.
See Also: How To Start A Business In Nigeria: Step By Step Guide
Business Opportunities In Charcoal Export
The charcoal industry poses several business opportunities. This large industry can be tapped from several fronts, but here are three (3) main key business opportunities in the charcoal industry:
1). Charcoal Production:
The production of charcoal, been a delicate process, requires specific individuals who are skilled in the craft, and are willing to get their hands dirty. The production is a highly labour-intensive process. Trees have to be fell, chopped, and burnt at high temperatures. Since most exporters can’t get involved with this stressful process, they leave the whole work-flow to the charcoal producers, who in turn sell to them in large quantities but at very low prices.
2). Charcoal Export & Distribution:
This is the most popular business opportunity exploited in the charcoal industry in Nigeria and around the world. With tens of thousands of metric tons of charcoal exported yearly from Nigeria, the revenues generated makes the sector lucrative. Here, the sales could be done by local traders in the market, or by large players exporting the charcoal products outside the country.
Before charcoal can be exported, certain standards must be met. For example, the moisture content, the fix carbon, the ash contents, and several others need to be right based on the buyer’s specifications. An inspection by the buyer’s agents or the buyer themselves could lead to a rejection of the full shipment if they don’t meet the required standards.
The charcoal prepared for export must also be packaged to the buyer’s taste. They could be packaged in small sizes to enable local buyers purchase easily for their needs, or they could be packaged in bulk, weighing different sizes; anywhere from 25kg and above, and then placed in containers ready for shipment by a shipping company, and delivered to the buyer anywhere in the world.
Starting out in your distribution and export of charcoal products could cost you between 360,000 Naira t0 over 1,000,000 Naira. With a signed order for shipment by a buyer, the supplier could approach the Nigeria’s Bank Of Industry (BOI) for a loan to fulfil the order. It’s a lot easier to get loans and grants in Nigeria when there’s an existing request or customer base for your charcoal products than when you’re just starting out and seeking random capital.
3). Charcoal Appliances:
Charcoal appliances could be charcoal stoves and other devices that make the charcoal production and usage process easier. You could manufacture charcoal stoves and sell them for about $8 or more for a stove. These energy-efficient stoves make charcoal usage easier for the locals who live in communities and base their cooking energy source majorly on charcoal.
Types Of Charcoal You Can Export
- Hardwood Charcoal
- Charcoal Briquettes
- BBQ Charcoal
- Shisha Charcoal
Setting Up Your Charcoal Export Business
1). Register Your Export Business:
The first step to starting a charcoal export business is to register a legal business. To do this, you must first register a limited liability company with the Corporate Affairs Commission of Nigeria, then go on to register your business with the Nigerian Export Promotion Council.
Registered business names are not allowed to register with the NEPC, and so, you can only function as an exporter with a Limited Liability Company registered under the laws of the Federal Republic of Nigeria.
See Also: 10+ Legal Requirements For An Import And Export Business in Nigeria
2). Find The Direct Sources & Producers For Exports:
Although this can be done before, during, or after your company has been registered with the appropriate bodies, the next step is to source for the direct charcoal producers for you on behalf of your clients.
It’s usually better you get direct access to the charcoal producers, so you can get the best possible price. Going through a proxy would waste more time, cost more money, and reduce your profit margins.
Some states with large charcoal producers are Nasarawa, Kaduna, Jos, Minna, Egbe, Jebba, Oyo and a few other states in Nigeria.
3). Setup A Proper Business Structure, Trade Process, & Branding:
During or after registering and securing your buyers, it is important you set up a proper business structure that looks internationally reputable. Some ways to do this are to build an international standard website, get a business address, create a company profile, and also have a corporate offer format you can customize and send to buyers who request an offer. Also set up a corporate email that reads something like this: “[email protected]”.
If renting an office is too expensive, you could pay for a virtual office at a co-working hub and use their address for meetings.
When you organise your company this way, buyers would feel really confident about doing business with you and would tend to choose your business as their preferred partner.
4). Source For Buyers:
The next thing is to source for international buyers for your products. You can do this by registering on websites like:
- www.exportersindia.com
- www.alibaba.com
- www.linkedin.com
And several others.
You can also build an influential social account on LinkedIn and market your Charcoals to a unique business audience you’d build over time.
See Also: How To Find International Buyers For Your Import/Export Business
5). Export Your Products:
Upon sealing agreements with the buyers, getting issued an Irrevocable Corporate Purchase Order, signing a Sales and Purchasing agreement, and more, you can then proceed to ship the charcoal to the buyer.
The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.
See Also: How To Get An Export License In Nigeria For Your Export Business In 72 Hours
Challenges Of The Charcoal Export Business
1). Lack of experience causes exporters to either purchase the wrong specifications, underprice or overprice their products, and much more.
2). Your charcoal en route a warehouse may get robbed before arrival. The truck conveying the product could even breakdown.
3). Fake buyers wasting exporters time with fake inquiries.
4). Most prospective entrepreneurs have little to no access to finance for their projects.
5). Most charcoal sellers have poorly managed supply chain and may sometimes be unable to deliver.
6). Your time could be wasted as a result of long-term conversations with charcoal buyers who have no real money to pay.
7). The large pool of fraudsters posing as charcoal sellers makes it difficult for charcoal buyers to trust you.
See Also: How To Start An Import/Export Business In Nigeria: A Short Guide
Conclusion
The charcoal export business is a lucrative one for anyone who chooses to venture into the export of solid minerals from Nigeria. Depending on the quantity the buyer needs, your profit margins could be far higher or lower, but still substantial.
Starting a charcoal export business in Nigeria is a way to not just only get into the industry, but a great start to building a long-term business that could someday employ thousands of people directly and indirectly.
An Important Point
Trying to buy charcoal from Nigeria through genuine sellers can lead to a lot of wasted time and efforts on the part of the charcoal buyers. They spend a lot of time vetting sellers in Nigeria, doubting their results even if positive, and going back and forth too many times than they can count, only to end up either cancelling their decision to buy or making a purchase after months or years have passed.
Finding real charcoal sellers in Nigeria can be a problem. To make this possible for charcoal buyers, Startup Tips Daily Media, through her sister company, Globexia, can export charcoal to genuine buyers from Nigeria or anywhere in the world.
Whatever will help buyers close genuine charcoal export-based transactions fast, transparently, and easier, we can make the process as stress-free as possible.
Our charcoal export business is completely transparent, and as a result, we will not deal with a buyer who intends to cut corners or outsmart any party in the course of the transaction.
If you’re a genuine charcoal buyer, you can reach out to us through the contact form below. If you’d like us also to help you export most of your charcoals, we’d be glad to do so with mutually agreed terms.
In addition to our charcoal export business in Nigeria, we’re also Mica Mineral sellers in Nigeria, and can export Mica minerals to buyers around the world.
If you’re only a scam, don’t waste your time, as the conversation wouldn’t last too long after a few questions and demands to prove your authenticity have been made from our end.
Our Charcoal Trade Specifications are listed below:
Origin: Nigeria
Product Type: Lump Hardwood/BBQ/Shisha/Briquette Charcoal
Physical Specification: Based On Buyer’s Specification
Quantity: Based On Buyer’s Specification
Price: Negotiable / Metric Tonne
Trade Process: Ex Works/FOB/CIF
Payment Method: 100% irrevocable SBLC or L/C at sight from a top 25 prime bank.
Shipping Time: 15 days after confirmation of L/C
Loading Port: Lagos, Nigeria
We look forward to hearing from you.
Thank you.
What do you think about the opportunities in the charcoal export and production business in Africa? Please leave a comment below.
Image Source: nairaland.com
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The export business remains one of the most profitable businesses in the world, including Nigeria, with profit margins going anywhere from 30% to in some cases over 100%. With the growing clamour by the Nigerian government for entrepreneurs should go into the export business, the need to effectively educate people on everything they need to know and to show them how to make their first one million Naira from the export business in Nigeria has become very paramount.
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Hello, its Wes again. I found you blog when i was making research on charcoal exportation. I want to start exporting but i need where i can work to get practical experience not ebooks.
Can you recommend a company in lagos where i can work?
Thanks
Hi Wes,
You can follow this link >>> http://www.globalsuppliersonline.com/Nigeria/Charcoal to see a list of some charcoal exporters in Nigeria.
Also follow up with a detailed google search, so you can find exactly what you want.
Thank you for the comment.
Thank you very much for this info.
I want to really appreciate what are doing on your blog.
You give quality information and above all your articles are direct, simple and easy to digest. Well done
Thank you for the commendation and being a constant reader Wes.
Do have a wonderful time.
We are a group of volunteers and starting a new initiative in a community. Your blog provided us valuable information to work on. You have done a marvelous job!
Thank you for the commendation.
We will be helping new exporters to export easily soon.
I d’une your websit very interesting. Am about to start exporting foodstuff. How can I get foreign costumer is my problème. [email protected] 08174011091.
Hi Kola,
A charcoal business ebook would eventually be available on the website.
Do lookout for it.
Thank you for asking.
Your website is God”s answer to my prayer. I got into business of producing charcoal briquettes from pk shell b/c I fabricate the machines and we have them in abundance in CRS and without first getting an LPO my partner paid for 5000 metric tonnes of pk shell.I have started producing. My charcoal briquettes are 4.5*5*10inches and weigh 4kg.I will like you to connect me to buyers locally or internationally. God be praised.
Hi Emmanuel,
We currently don’t connect buyers to sellers. When we do, we’ll do well to let everyone know.
But over time, some buyers will leave comments here.
Thank you for asking.
I have read a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s web page list and will be checking back soon. Please check out my site as well and let me know what you think. Thanks.
Thank you for the commendation.
What products do you currently export?
Do send me an email at [email protected]
@Emmanuel Ntiti
Hi, Can I get an email that I can use to contact you?
Please send an email to [email protected].
Your charcoal eBook will be a fantastic idea.
Eventually it would be available on the blog.
Do lookout for it.
Thank you for the comment Emmanuel.
Hi,
Great article, is your ebook out now
Hi Alapara,
The eBook is not ready yet.
When it is, I’ll do well to let everyone know.
Thank you for asking.
How can get buyer
Hi Idowu,
You can start by talking to the Nigerian Export Promotion Council (NEPC) on how you can get buyers overseas for your charcoal products.
Thank you for asking.
Hello Mr Stan Edom,
Please, I need BUSINESS PROPOSAL ON CHARCOAL and BITTER KOLA EXPORTATION.
Thanks in anticipating.
Hi Dimeji,
Please send an email to [email protected]
Thank you for asking.
Stan Edom
l thank u for this post,it helps me in my new found bizs-charcoal for local buyer. How do l start expoting it?
Hi Peter,
We’re realising a free eBook on exportation.
Do lookout for it.
Thank you.
your article spur Investor into charcoal business. Good work.
We are oshokeleads investment Ltd, we are into local sourcing of charcoal for exporters. I am located at Oyo. I can be contacted on 08038377724,[email protected] for quality hardwood charcoal at a very competitive price.
I have Charchol for sale in large quantity’s all type of wood you want.if you want to buy you can contact me on 08100258360 or [email protected]
Hello,this Emmanuel Abayo,l found your blog when l was making research on charcoal exportation. Pls I want to join charcoal export business.l need somewhere which l can learn it so that l will be able to have proper knowledge of it.thanks
We’d host seminars someday.
Do look out for our announcement.
Thank you.
Hello Stan,i’m interested in your seminar,i will be needing information on the requirements,venue,date and time.
When it’s available, we’ll let everyone know.
Thank you for asking.
Hello mr Stan Edom,please i need your charcoal ebook and a business proposal for charcoal exportation.thanks!
Hello mr Stan Edom,I’m interested your charcoal ebook and a business proposal for charcoal exportation.thanks!
hi, your write up was very educative and straight forward about charcoal production. we are Agent who do help exporter buy from the farm and supplied at their choice either at their warehouse or straight to port. (Niger/Kwara State) contact is 08050555748.
I feel highly blessed coming across your blog. I am interested in charcoal exportation but I need to acquire the necessary skills, i will appreciate if you can assist in this regard.
Thank you so much for this platform. I would like to be part of the charcoal exporting business seminar too when will it be organized?
Hi Mariam,
I’d do well to announce export-focused classes.
Thank you for asking.
Hello, its Wes again. I found you blog when i was making research on charcoal exportation. I want to start exporting but i need where i can work to get practical experience not ebooks.
Can you recommend a company in lagos where i can work?
Thanks
i’m interested in your seminar. How can I go about it?
Going through your Blog today has been very enriching. You are doing a good job my brother.
I want to know how much it costs to get a feasibility study / Business plan for a couple of FMCG
I also want to know if u can graciously accept an invitation to deliver empowerment seminar in a church for an honorarium for the service.
Give me ur email. The one I saw here failed to deliver
Thanks
Emma
Stan Edom, thank you ever so for you post.Much thanks again.
startuptipsdaily you guys rock am your number one fan keep up the good work
I stumbled on this platform when I was looking for how to write a business proposal. It has really been an eye opener for me. Thanks to the blogger of this very platform.
dear sir
Please i want to go into exporting of charcoal i need a practical guide on how to succede with it.
Great work, thanks so much for the educative information you shared on your website and blog post. You have greatly inspired so many readers.God bless you
Is there a forum I can join on the charcoal business/export
Please visit http://www.gladexport.com REAL Companies and SERIOUS ones should contact please, if not don’t bother wasting time. There is no other way to do business with us if aren’t real, we knowcand understand the Nigerian market, we just want to give a platform to serious people who are ready to make a living genuinely. This is a Nigerian international based Company so we understand the market, as I said only the real, serious and genuine ones should contact us.
I need a guide line to be a charcoal exporter
I need more information on how to export charcoal
Pls i want a contact to create a web site for my company on export of charcoal and other agric products.im based in lagos
Thanks
Great job Edom, please have you released the ebook on charcoal export?
Thank you for the comment Mike.
We have an in-depth online export course, not eBook.
You can learn more here >>> http://startuptipsdaily.com/how-to-make-money-exporting-commodities-from-nigeria/
Thanks.
I want to start the charcoal business in a small scale level so i need a local buyer in Nigeria that i can just they supply them for now.i am a graduate and need to start doing something to help myself.thanks
Please i am interested in charcoal business,I needs someone or company that can teach me how to go about the business. Thanks.
Hi Ige,
I suggest you take our in-depth and comprehensive online export course.
You can learn more about the online course and how to sign up here >>> http://startuptipsdaily.com/how-to-make-money-exporting-commodities-from-nigeria/
I want to know about charcoal Exports business
I, as well, want to know about how to export other agic products like palm oil amongst others.