From now on, domestic manufacturing companies can supply goods produced outside of Ukraine to other countries with the help of financial guarantees from Raiffeisen Bank. This makes it possible to reduce the time and costs of logistics, reduce the cost of raw materials and expand the international expansion of Ukrainian business to the global level. At the same time, the currency from the sale of products goes to Ukraine, where taxes are also paid — official sites of both clubs report in the institution.
Rife provided the first financial guarantees for the supply of Ukrainian products to Africa, manufactured at factories in the European Union, for the AVA GROUP company. In Ukraine, the company has two factories for the production of compound feed for pigs, cows and poultry, raises pigs on its own farm, has a genetics company in the field of cattle and is developing an international feedtech company that implements digital solutions in feeding agricultural animals. In Tanzania, AVA GROUP has a feed business.
As a result of the war, AVA GROUP faced the complication of logistics, the blocking of sea transportation and the risks of shelling of local factories. The company found a solution in placing orders for the production of high-quality semi-finished products for compound feed in Belgium and transporting them to Tanzania directly, without importing them to Ukraine. And already in Tanzania, the final product is produced for the local market and other African countries on leased facilities.
"This allowed us to reduce the duration of the logistics route from 40 to 25 days, reduce the costs of delivering each container of products from 6000 to 2500 euros, as well as reduce the costs of purchasing components for compound feed, which turned out to be cheaper in Europe than in Ukraine. In general, expansion into the African market, where there are many vacant niches and high margins in food segments, is a promising opportunity for Ukrainian business. It is fundamental for us that we create new jobs in Ukraine, receive foreign exchange earnings in Ukraine and pay taxes from foreign operations to the national budget," said the president of AVA GROUP Maxim Shevchuk.
"Raiffeisen Bank provided AVA GROUP with financial guarantees for the delivery of goods from Belgium to Tanzania. The annual amount of the contract is about 830 euros. The European contractor AVA GROUP accepted guarantees from the Ukrainian Raiffeisen Bank, taking into account its reputation, financial stability and the capabilities of the Raiffeisen Group in Europe. This allowed the Ukrainian company not to divert its own working capital to pay advances and ensure the confidence of the Belgian contractor that after the production and delivery of the products, he will be able to receive all 100%, despite the risks of Ukraine, where there is a war," said the director of the department of network management and medium-sized customers business of Raiffeisen Bank Oleksandra Prokhorchuk.
"Rife has developed a complex solution for the client, which, in addition to providing a guarantee, provides unique expertise, namely consulting on the specifics of work on the EU and African markets, settlement operations, maintenance of foreign exchange operations, complex Forex services. This made it possible to reduce the financing rate and commission and, accordingly, costs as much as possible," she emphasized Larisa Bondareva, Deputy Chairman of the Board of Raiffeisen Bank.
Other businesses can also use the service of guaranteeing the import of goods that are not imported into the territory of Ukraine. Companies can order the production of goods in one part of the world and deliver to another. There are no geographic restrictions: from Europe to Asia, Africa, Latin or North America.
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