Trade Malta is planning a trade mission to Sub-Saharan Africa this year, the first ever to this dynamic area, whose 48 countries are home to over one billion people with a growth rate of 1.5 per cent in 2016.

Since it was set up in June 2015, it has already organised trade missions to Algeria (two), Lebanon, Jordan, Oman, Dubai, Qatar, Abu Dhabi and Russia – a list which raised some eyebrows at the time and for which chairman David Curmi remain unapologetic.

“The fact that we opted for non-traditional markets rather than traditional ones has been discussed at length. Of course Europe is the most important market for our clients – but most of them already know their way around there,” he said.

“When we asked them where they were interested in, they said they needed help with emerging markets.

“Everyone says Sub-Saharan Africa will be the biggest market in 10-15 years’ time, which is why there is so much interest being shown there by British, Turkish, Chinese, American business  missions.

“The economic centre of gravity of the world is no longer Europe. Malta needs to align its export strategy with where trade flows are happening in the world. If we do not start investing in these markets now, we will miss the boat,” Mr Curmi said.

Trade Malta, the public private partnership between the government (through a 51 per cent shareholding by Projects Malta) and the Chamber of Commerce, Enterprise and Industry was specifically formed to help companies in Malta – local or foreign-owned – to export.

Trade Malta is not the first entity to do this: in the past the Malta External Trade Corporation handled this, before it was absorbed by Malta Enterprise. However, times have changed substantially since then. For a start, Metco dealt mostly with manufacturing while 60 per cent of Trade Malta’s clients are in services, ranging from leisure and education, to IT and knowledge-based industries.

“Manufacturing companies tend to be large and already have export strategies and their own export markets – apart from the fact that many have parent companies with an international presence,” CEO Anton Buttigieg explained.

However, that leaves SMEs with their particular problems like technical expertise – which does not always translate into marketing skill – and limited budgets.

“The most difficult part of exporting is not having the right products and services but having the right partner to assist you. That is where we can help,” Mr Buttigieg said.

There are a number of factors which help trade missions succeed

There are a number of factors which help trade missions succeed. For a start, Trade Malta does its homework prior to the visit, tapping into its vast network of chambers and their members.

“For example, the Maltese consul in Oman is also the CEO of Muscat Bank, which has 80 per cent of the market share there. An introduction from a leading bank opens many doors. In Qatar, we have links with both the chamber and also with the Qatari Businessmen Association. Al Faisal – who bought Banif Bank – were our hosts,” Mr Buttigieg explained.

“One aspect which has emerged clearly is that there are many Maltese companies which used to export very successful to Libya for decades. However, because things were going so well, they did not bother to find other possible markets so when Libya’s problems started, they were stranded. And in spite of all that export experience, no one else had ever heard of them!”

Taking a top figure on trade missions – the Prime Minister or a minister – is far from overkill: they also open doors.

“Although the chamber has a lot of contacts – and even MOUs with other chambers – and there is a chamber in virtually every country, there are some where the whole dimension of the mission changes when a prime minister or minister comes along – especially in the Middle East. All of a sudden the top people there attend the meetings. This does not apply for every mission but and institutional presence does often make a difference,” Mr Curmi said.

The approach to organising a trade mission is quite structured and depends on meticulous planning by Mr Buttigieg and his team of five, who have only a €290,000 annual operating budget.

Interest is first gauged through a call, and once a mission is planned, a workshop on ‘doing business with…’ is organised, often with speakers from that country or region.

“Then it is up to the Maltese companies to roll up their sleeves and make the best of it,” Mr Buttigieg said.

Trade Malta has also taken over Malta Enterprise’s trade fair grant scheme, with a budget of around €500,000 a year. Companies were finding it difficult to get stand space and the Gulf Foods Fair in Dubai but with Trade Malta’s help, a national stand was organised and just three weeks later, two out of four already had orders – apart from Magro Bros. being presented by an award while there.

This is actually better than average: Mr Buttigieg said that it usually takes a few months to move from initial contact to an actual order, and several interim visits.

Trade missions and trade fairs are important ways to start relationships but Trade Malta is also using technology.

It has been awarded €900,000 in funds which it will use to build what it is calling a knowledge platform, tenders for which are already being issued.

One project will be to help SMEs produce corporate videos; another will give them access to costly international market research.

And Trade Malta has another idea which will help to raise the profile of its clients: it is rekindling the export awards. The new Malta International Business Awards will be presented on November 10 and are being endorsed by the Prime Minister, and supported by HSBC Malta.

“We hope that the awards can be used by companies as testimony of their success and that they can exploit them to open doors,” Mr Curmi said.

5 tips for overseas success

■ Do your homework and get as much background research on the market – and your competitors – as possible. There is really no excuse: information is readily available nowadays and Trade Malta might be able to help with access to expensive specialist reports.

■ Check the country-specific details. The further afield you go, the more chance there is of bothtariff and non-tariff barriers. And watch out for banking restrictions.

■ The culture in emerging markets is much more dependent on relationships. So don’t expect replies to e-mails from people that you have not met – and don’t expect one visit to be enough.

■ Don’t underestimate the travel budget you will need. You will need to visit often and, even though you may be going to an impoverished country, that usually means that the infrastructure for visitors – like hotels and restaurants – is even more expensive.

■ Find out if there are Maltese companies exporting to the country you have your eye on. They may be able to make introductions which will make it considerably easier to get an appointment.