Charcoal Export is one thriving export business many people don’t know about. Charcoal is a commodity that has a high demand in the international market. If you asking how? Look at the facts below.
- Due to extreme cold in Asia and European Continent, there is a high demand for coal to keep warm.
- It is also used in several cosmetics and toothpaste
- According to World Stop Export. 15 countries in Europe and Asia imported coals in billion dollars in 2019. They are China $18.9 billion, Japan 23.3 billion, India $23 billion, South Korea 14.1 billion, Taiwan $7 billion, Germany 4.5 billion, Netherlands $.4.4 billion, and Turkey $3.6 billion.
This is to tell you how lucrative the business is.
How Much Do I Need to Start Charcoal Export business?
With N400,000 to N1,500,000, you can start a reasonable charcoal export business. However, there are three options to it.
- If you already have trees, the capital you need may be lesser. You will just need to carbonize (the process of burning the trees to a carbon residue state) the trees and look for international buyers.
- This second option requires a higher fee. If you don’t have trees, you can be buying charcoal from different producers and reselling it to exporters.
- You can act as a middleman between the producers and the buyers. Here, your only job is to source for the buyers, connect them to the producers, and get your commission. You can start this style of charcoal export with zero nairas. You just must be knowledgeable on how to get buyers.
How Can I Get International Buyers for My Charcoal Exports?
Firstly, you must have your business registered. I will treat it to the next query.
Let’s assume that your business is already registered. You can get international buyers from e-commerce stores and online sites. The best eCommerce sites for getting buyers for your charcoal exports are:
- Exporters India
- Social media handles like the Facebook marketplace and LinkedIn
How can I get my business registered?
As a first-time exporter, registering your business is a must not an option.
You must register your business with Corporate Affairs Commission (CAC) and NEPC.
Registering your business with Nigeria Export Promotion Council (NEPC) should be after you have registered with CAC. Unless you register with NEPC, you can’t start exporting.
How can I source charcoal locally in Nigeria?
Some places in Nigeria are known to produce charcoal in large quantities. They are:
- Iseyin Local Government Area, Saki local government, and Itesiwaju Local Government Area in Oyo state.
- Igbo-ora and Ogbomosho in Osun state
- Minna in Niger
- Other locations include: Egbe, Kabba, Jebba, Omu Aran, and most place LGA in Jos, Nasarawa, and Kaduna
Important Facts about Charcoal Exporting In Nigeria
- The international selling price of charcoal from any country ranges from $200 to $600 per ton depending on the quality of the coal.
- Charcoal is sold in tonnes in the international marketplace
- The profit margins on the sale of charcoal in the international market range from 30% to over 100% depending on whether you are the producer or broker
There are not many competitors in the Charcoal Exports. Now, is the best time to venture into it. And the good thing is that you will never run out of raw material as Nigeria is blessed with trees.
While Carbonizing the trees, don’t forget to practice the principles of afforestation, as much deforestation may cause harm to our lands.