Innovative Trade Strategy and Partnership Helped East-African Manufacturer Overcome Financial Hurdles

The Challenge

The case study revolves around a mutually beneficial business relationship between an Ethiopian manufacturer of packaging films and Longshore, a company involved in the export-import trade. The primary challenge faced by the Ethiopian manufacturer was a
struggle to obtain dollars, crucial for their business operations and international transactions.

Innovative Solution

The Ethiopian manufacturer exported agro-commodities like turmeric and soya to India to Longshore, which acted as a buyer. Longshore, in turn, sold these commodities and exported packaging film supplies back to the Ethiopian manufacturer. This exchange mechanism enabled both parties to acquire the necessary products while addressing the currency challenge.

Multi-faceted Impact through Collaboration

1. Business Continuity: The arrangement ensured the continuous operation of both businesses by providing essential supplies through a unique trade exchange.
2. Currency Generation: The Ethiopian manufacturer successfully generated dollars through the export of agro-commodities, addressing their initial struggle.
3. Quality Supplies: Longshore’s provision of packaging film supplies helped maintain the Ethiopian manufacturer’s standards, ensuring quality products for their customers.
4. Customs Clearance Assistance: Longshore likely provided support or expertise in navigating customs clearance procedures and streamlining the import process for the Ethiopian manufacturer.
5. Trust Building: Over time, this partnership likely fostered trust and reliability between the two entities, strengthening their business relationship.

The Client

The Ethiopian manufacturer of packaging films stands as a significant player in its industry in the country: