Alone in Africa-A huge market aimed at "frozen fish"-October 23, 19:16

“Let's go into“ the last huge market ”in Africa.” This is not just a story about a large company that operates globally. Rather, it is Japanese SMEs that are trying to expand their business in Africa boldly and speedily. Over 100 SMEs have already challenged the African market. As the domestic market shrinks, new frontiers will be created even if risks are taken. I was very close to the struggle of small and medium-sized companies that made that decision. (International Department Reporter Tamura Galaxy)

Popular fresh fish shop in Mozambique

Maputo is the capital city of Mozambique in southeastern Africa. There are many simple houses built up of bricks, and there are many street vendors selling vegetables and accessories on the bumpy dirt road. There is a fresh fish shop in the corner of the area where people live. Shoppers visited the store, which was about half the size of an elementary school classroom.

Lined up in the freezer are fish called tilapia. It is a fish called “Freshwater Thai”, characterized by its whiteness. When I talked to customers, they said that “I love the fish in this restaurant because they are fresh and very delicious.”

Although Mozambique faces the coastline of 2000 km in length, the technology of frozen transport has not been widespread, and until now it was almost impossible to sell fresh fish away from the sea.

The business owner of this store, Japanese Toru Matsunaga, found a business opportunity there.

Mr. Matsunaga originally worked to export overseas seafood to Japan. I was hired by a fish processing company in Ise City, Mie Prefecture, and came to Mozambique to investigate a new supplier of marine products.

While exporting clams to Japan, I realized that there are many people in Mozambique who want to eat fish.

The population of Mozambique is approximately 30 million. Over the last 30 years, it has increased more than twice. The country is full of children and young people who need a lot of nutrition.

It would be a big business if you cultivate the fish here, freeze it and transport it to the inland area. Ise City's head office also jumps at this idea. This is because the consumption of fish in Japan continued to decrease year by year, and I felt a strong sense of crisis in the future of the business.

“I thought the demand would increase naturally as the population was growing not only in Mozambique, but also in Africa. There is a lot of potential. I felt that it depends on the price.”

However, this fishery processing company has 20 employees. We cannot afford to send other employees to the African market. All the start-up of the business was entrusted to Mr. Matsunaga.

Relying on the aid agency

Mr. Matsunaga, who was struggling with the lonely army, used the support system of JICA = Japan International Cooperation Agency. JICA is an organization responsible for development assistance to developing countries, but for the last 10 years or so, it has been revising the use of funds and trying to lead the development of developing countries by encouraging the advancement of Japanese companies.

The first thing that Mr. Matsunaga started using this system was the development of food, which is the key to the success of the aquaculture business. 70% of the cost of aquaculture is food. Moreover, Mozambique imported fish meal, which is often used as a feed ingredient, from neighboring South Africa and was expensive.

The only way to reduce food costs is to make food using local ingredients. Using funds provided by JICA, Matsunaga developed a new bait with Mie University.

“We started doing this because it is a business that must be successful.”

Half a year of research. When I tried various local ingredients such as cassava and corn, I found that the leaves of plants that grow everywhere in Mozambique called “Moringa” are rich in protein and suitable for food.

By making all the baits that depended on imports with local ingredients, we succeeded in reducing the production cost of tilapia by more than 30%.

“Handmade” and “Manufacturing”

With the newly developed bait, local challenges began. Mr. Matsunaga intends to expand his business at low cost by making use of “handmade” unique to SMEs.

The aquaculture is also handmade with plastic tanks and pipes. Currently, the production volume is not so high at 2 tons per year, but we plan to expand the same life in the future to further reduce costs.

The truck bed was remodeled to create a “mobile vehicle” with refrigeration equipment, which is rare in Mozambique. At noon and evenings, we go to places with lots of traffic to sell people for shopping.

Along with increasing brand awareness, we are also looking for new store locations. The advantage of SMEs is the speed and quickness of trying out these various ideas immediately.

Japanese companies are good at technology that keeps fish fresh. After catching the fish, keep it alive and fast ice, and then quickly freeze to minus 25 degrees without spending time.

The five-hour journey from the farm to the capital is also carried with a freezer car, keeping it fresh. By consistently managing from production to sales, we have established a system that can provide high-quality fish at a low price.

Further emphasis is on human resource development. Mr. Matsunaga alone has more than 40 local employees. Employees who work by touching fish are taught strict hygiene management based on the basic principle of “clean hands”.

On the other hand, a corner of the cafeteria is decorated with a lot of pictures of employees and Mr. Matsunaga smiling.

This photo was taken every month with employees who came to report with a birthday party for employees who opened with the cooperation of Mr. Matsunaga's wife, Reiko.

The female employee working here said, “Mr. Matsunaga always listens to me kindly.”

This kind of family management is the warmth of small and medium-sized companies.

The challenges you face, but ...

Mr. Matsunaga who started the business somehow. However, the situation is still not on track. Initially, we were aiming for profitability within 5 years, but it is still in the red after 4 years.

The reason is that the expansion of the business scale is not progressing as expected. For small and medium-sized enterprises with smaller management strength than large enterprises, delays in planning are a matter of life and death. Now, Mr. Matsunaga is working on a new store at a rapid pace to expand the sales channel.

I also accompanied the candidate for a preview. On this day, I found a vacant store on the main street, but Mr. Matsunaga is cautious. I will tell the local staff who went with me to find out who owns this store.

In Mozambique, the owner of the building is often unclear, and in January, a fake rental contract was signed by the person who owned the building, and it was said that it became a court case.

“I can't trust who owns it. And there are lots of troubles with lending and lending.” (Matsunaga)

The biggest barrier for SMEs is the procurement of funds for business expansion.
The support system of JICA that Matsunaga and others used at the beginning is a system that cannot provide additional funds.

During our interview, Mr. Matsunaga asked the person in charge at JICA's local office who visited the company whether additional funds could be provided, but he refused.

JICA's system emphasizes lowering the first hurdle so that private companies can start doing business in developing countries, and it seems that government funds cannot be invested until the subsequent expansion. Mr. Matsunaga holding his head. The person in charge of JICA seems sorry.

Nevertheless, Mr. Matsunaga feels responsive to the effects of this business. The customer said, “I started eating fish that I couldn't eat until now three or four times a week” or “The family has stopped getting sick since I started eating nutritious fish.” This is because more and more voices are heard.

In the future, Mr. Matsunaga wants to find ways to expand business locally with the assistance of international organizations and funds from private financial institutions.

“I want to continue. Anyway, I've been here so far, and I'd like to have various people cooperate and support me.

The number of SMEs in Japan has fallen by 30% over the past 20 years due to the domestic market peaking and lack of successors. Under such circumstances, the number of SMEs that find opportunities in Africa, like Matsunaga's company, is steadily increasing. There are many companies that are trying to survive the company.

However, there are companies that withdraw from the local business because of problems, and experts said that the government should provide support. "

SMEs that have supported the Japanese economy with high technology and adaptability. Can new flowers bloom in Africa? I would like to keep an eye on future developments.

International reporter Tamura Galaxy

International Affairs Department after entering Tsutsumi Station and Chiba Broadcasting Station in 2013