KUKE along with Polish businesses on exotic markets
What about a Polish bicycle factory in Algeria, India, Iran, Mexico or Vietnam? Thanks to the latest decisions of the Export Credit Insurance Corporation, the development of business activity on these promising markets will now be much easier. This is KUKE’s response to the earlier recommendations of the Ministry of Development.
It will be easier to deliver on foreign expansion plans over the next three years in the countries covered by the new promotional programmes. Thanks to the Ministry of Development-backed initiatives of KUKE, investors interested in doing business there have more flexible possibilities of securing export transactions.
This is an interesting alternative for Polish entrepreneurs looking for their place on markets outside of the European Union perceived as promising but also exotic and too risky and, because of this, more expensive. Thanks to KUKE they can now build their position in countries with a large import and demand potential. Initiatives such as these render Poland a cooperation platform between East Asia and the European Union, says Marek Czerski, President of KUKE.
KUKE’s initiative has led to a greater openness to five markets in the scope of the insurance of trade receivables arising from the sales of goods and services with deferred payment terms and the provision of bonds. The open limits have reached EUR 470 million.
To this end, KUKE has gained several key local partners. In terms of banks, the list of positively rated and recommended by KUKE banks comprises of the largest and most prestigious on the relevant markets, namely:
- The State Bank of India (India)
- Bank Mellat (Iran)
- Banco Santander Mexico (Mexico)
- The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietnam)
- Societe Generale Algerie (Algeria)
The implemented actions are of crucial importance for entrepreneurs interested in new markets. Many of them seem to be too distant and associated with capital intensive investments. The implemented solutions are designed to demonstrate that Algerian, Indian, Iranian, Mexican or Vietnamese entrepreneurs will indeed find suitable business partners in Poland.
Looking at bald figures alone, the 5 markets selected by the Ministry of Development and supported by KUKE tempt with the perspectives they have to offer. The GDP of Vietnam continues to rise: in 2014 growth was at 6 %, while in 2015 it was already at 7%. Economic growth in Iran is also much stronger than the world average, whereas Mexico is an export direction with an enormous potential of some 120 million consumers. Polish-Indian trade volumes came to USD 2.207 billion in 2015. Trading profile data for the first half year of 2016 point to a strong upward trend.
The Poland-Algeria 2015 trade volume averaged USD 370 million. As every year, the majority of this amount is comprised of export of goods from Poland, which totalled USD 332 million. In 2015, agri-food products were the most important item in Polish exports to Algeria, of which Polish companies traded a total of USD 170 million. Why shouldn’t the Algerian market become a target market for Polish factory branches? We provide them with this very opportunity and have already secured several large contracts in the country, Marek Czerski explains.