In May 2021, Tradex Corporation received a government grant from the RVO (Netherlands Enterprise Agency) to carry out a feasibility study for setting up a Smart Hub in Dar es Salaam, the capital of Tanzania.
Over the years that Tradex Corporation has operated in exports to Tanzania, it has become repeatedly evident that many European shippers prefer to ship full containers (FCL). Local importers and distributors often have neither the financial resources nor the storage capacity to purchase such large volumes. They prefer to order pallet by pallet. In addition, local distributors often lack knowledge of customs procedures and the necessary product permits. Their network is too limited to come into contact with suppliers who are willing to ship small volumes.
On the other hand, there are plenty of European companies interested in exporting to Tanzania, one of the world’s 20 fastest-growing economies. They are faced with the problem of not knowing any Tanzanian distributors who are financially robust enough to buy full containers. They also lack knowledge and experience as regards the required customs formalities in Tanzania. And they often do not know how to obtain the required product permits to launch a product on the Tanzanian market.
To overcome this impasse, Tradex Corporation wants to set up a hub in the Dar es Salaam region, following the proven success formula of the SMART HUB concept in ’s-Hertogenbosch, the Netherlands. Smart Hub Tanzania can become a key link between European producers and Tanzanian distributors.
How does Smart Hub Tanzania work?
- Goods (FCL/LCL) are stored at the Smart Hub after arrival in a well-secured multi-user warehouse, managed by Tradex Corporation
- Smart Hub can take care of all necessary customs formalities on site
- Smart Hub can provide the required product permits as an add-on service
- Distributors can purchase goods on a pallet basis
- Smart Hub facilitates payments between the supplier and the local distributor
- In addition to storage facilities for suppliers, Smart Hub also offers small office spaces for distributors, including limited storage options.
Smart Hub can thus become a ‘meeting place’ for suppliers and distributors.
Additional services that Smart Hub Tanzania can offer:
- By involving local banks in this initiative, it is possible to set up attractive financial arrangements for both banks and distributors.
- In collaboration with the University of Dar es Salaam, a training facility will be created at Smart Hub, offering training to support local entrepreneurs in management, finance, marketing, sales and other topics. Consulting on developing a website and managing e-commerce activities is also available.
This feasibility study covers a period of 1.5 years. The study must demonstrate whether the creation of the Smart Hub in Tanzania is feasible. If this is the case, Tradex will look for partners to realise Smart Hub Tanzania. Want to know more about our Smart Hub Tanzania project? Feel free to contact us!