INTERNATIONAL TRADE

International trade is a central element in TransCorp’s vision ‘to create a globally competitive diversified business group, which will supply world-class products and services to local and global markets’. To achieve this purpose, TransCorp is evaluating opportunities in potential markets for the export of certain high-value Nigerian products.

Primarily, TransCorp’s international trading arm will have the tasks of:

• Securing access to foreign markets for goods produced or for which distribution is intermediated by TransCorp
• Market entry brokerage for goods of TransCorp foreign partners entering Nigeria and other regional markets where we plan to invest in the development of a strong presence

The TransCorp business model has drawn some inspiration from the success of the Japanese keiretsu and South Korean chaebols. A cornerstone of the success of these big Asian corporations abroad was the role played by the Japanese sogo shosha and South Korean general trading companies. The Chinese global commercial conquest of the last decade has also been largely attributed to the support and networks of the foreign trade corporations set up to create channels overseas for the entry of Mainland produced goods.

In 2006, TransCorp submitted a strong bid in partnership with incumbent management for the National Clearing and Forwarding Agency (NACFA) in which the federal government was offering to sell 100% equity. The agency, one of the most successful companies in its sector, was to serve as a vehicle for TransCorp’s penetration of the market. During the submission of final bids, the TransCorp bid was topped by another buyer. TransCorp is presently exploring other market entry strategies, such as the creation of its own clearing and forwarding company.

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