• Home
  • Blog
  • Community
  • Knowledge
  • Cover Stories
  • Startup Stories
  • Playbooks
  • Podcasts
  • Português
    • Events Homepage & Booking
    • Start-Up Night Africa Series
    • Lioness Lean In Series
    • Lionesses of Africa Annual Conference
    • Harvard University / Lionesses of Africa Conference
    • Young Lioness Lean In Series
    • About Us
    • Impact Partners
    • Contributor Team
    • Contact
    • Join the Community
    • Signup for FREE Newsletters
    • Share Your Startup Story
    • Share Your Lioness Launch
    • Share Your Lioness Co-Lab
    • Become a Contributor
    • Nominate to '100 Lionessess'
    • Become an Impact Partner
    • Contact LoA
Menu

Lionesses of Africa

276 5th Avenue
New York, NY, 10001
(212) 634-4540
The Pride of Africa's Women Entrepreneurs

the pride of Africa's women entrepreneurs

Lionesses of Africa

  • Home
  • Blog
  • Community
  • Knowledge
  • Cover Stories
  • Startup Stories
  • Playbooks
  • Podcasts
  • Português
  • Events +
    • Events Homepage & Booking
    • Start-Up Night Africa Series
    • Lioness Lean In Series
    • Lionesses of Africa Annual Conference
    • Harvard University / Lionesses of Africa Conference
    • Young Lioness Lean In Series
  • About +
    • About Us
    • Impact Partners
    • Contributor Team
    • Contact
  • Connect +
    • Join the Community
    • Signup for FREE Newsletters
    • Share Your Startup Story
    • Share Your Lioness Launch
    • Share Your Lioness Co-Lab
    • Become a Contributor
    • Nominate to '100 Lionessess'
    • Become an Impact Partner
    • Contact LoA

FINANCIAL SMARTS FOR WOMEN ENTREPRENEURS: Incoterms and why they matter to Lionesses

October 8, 2015 Melanie Hawken

Guest blog by James Boorman, Project and Corporate Finance Advisor and Founder of New African Projects and Business Ltd.

In the latest in a series of informative guest blogs that look at issues around financial management issues for women entrepreneurs, this week we get a better understanding of Incoterms why they matter to Lionesses, particularly for those businesses that import and export.

 

The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. Incoterms rules are periodically updated, with the latest version, Incoterms 2010 being published on 1st January 2011. 

So, here’s a question for you - do you know your FOB from your FAS; or your DAP from your DDP? In today’s blog, all is revealed.

We’ve all been there, a friend has said for years that they owe you dinner, a date is arranged and when it comes to paying the bill there is silence from the other side of the table… “Shall we split the bill?”, suddenly becomes an option, or worse - “I seem to have left my wallet/purse at home!” 

With a dinner, it’s just a matter of leaving a sour taste in the mouth, but with your business it could make the difference between Profit and Loss. “Never Assume!”, sort out the rules of engagement or ‘Incoterms’ early.

So what are Incoterms?

The Incoterms rules have become an essential part of daily trade. They ensure that there is never any doubt as to who has the responsibility, who pays the bill, and when the risk changes hands...

INOCTERMS 2010: 

RULES FOR ANY MODE OF TRANSPORT

An easy way to remember - look at the first letter ‘E’, ‘F’, ‘C’ and ‘D’:

‘E’ terms cover departure of the goods - transport costs paid by buyer.

‘F’ terms are characterized by the main costs being covered by the buyer.

‘C’ terms the seller pays all the fees up to delivery at a foreign port.

‘D’ terms describe different methods of delivery of goods and represents the arrangements with the maximum amount of responsibility (both for costs and risks) to the seller, not the buyer. 

I shall describe the main Incoterms all from the basis of what the Seller is expected to do and pay, all other costs/risks for the Buyer (remember the Seller needs signed receipt of goods and provide all necessary documents to Buyer). Note, apart from EXW, the Seller always provides Export Clearance...

Job done for the Seller when the goods are delivered…

  • EXW ‘Ex Works’

...to the Buyer at the factory door…

  • FCA ‘Free Carrier’

...to the named point and provide evidence to the Transport company named by the Buyer.

  • CPT ‘Carriage Paid To’

...to the first carrier or another person at an agreed place (Seller arranges and pays the freight costs and provides export documents).

  • CIP Carriage And Insurance Paid To

...same as CPT but Seller arranges for and pays for minimum Insurance (Hint - the Buyer may want to buy extra insurance). 

  • DAT Delivered At Terminal

...to the Buyer at a named terminal at the named port or place of destination. Buyer pays the import duty/taxes/customs costs.

  • DAP Delivered At Place

...same as for DAT but Seller delivers to final destination, Buyer to pay for final unloading and import duty/taxes/customs costs.

  • DDP Delivered Duty Paid 

...to the named place with import clearance (Seller pays import Duties and other custom formalities). Buyer has only to unload the goods at the final destination.

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

  • FAS Free Alongside Ship

...alongside the vessel (e.g. on the quayside) nominated by the buyer at the named port of shipment. 

  • FOB Free On Board

...on board the ship, bill of lading provided by Seller and pays any loading costs not included in freight costs.

  • CFR Cost and Freight

...on board the ship (pay loading), arrange and pay freight (often includes some unloading costs) to the named port of destination.

  • CIF Cost, Insurance and Freight

...same as CFR except Seller arranges for and pays the insurance (minimum cover only - The risk of loss of or damage to the goods passes when the goods are on board the vessel. Hint - the Buyer may want to buy extra insurance). 

Here is a useful ‘Cut out and keep’ from my friends at the International Credit and Trade Finance Association (ICTF): 

 

Look out for next week’s blog topic: I want to sell 25% of my company to a friend - just how much is my company worth?


James Boorman, 22 years in the Financial Markets in London trading many different products from FX to Interest Rates to Commodities to Futures and Options, before being relocated by Credit Agricole in 2007 to Johannesburg as an Investment Banker, Head of their Financial Institutions Department, sub-Saharan Africa. He now spends his time with his family in South Africa whilst advising on Project and Corporate Finance deals. He adds significant value in the foreign exchange value chain to those companies who do not have the necessity or resources to justify a full time Treasury professional or department, but still need to ensure that their market risks are managed (and their sleep patterns undisturbed). Seen here planting Bamboo in Mozambique.

Read more articles by James

Featured
Financial Smarts for Women Entrepreneurs: So what should I have in my armoury from the Bank and should I shop around?
Nov 5, 2015
James Boorman
Financial Smarts for Women Entrepreneurs: So what should I have in my armoury from the Bank and should I shop around?
Nov 5, 2015
James Boorman
Nov 5, 2015
James Boorman
Financial Smarts for Women Entrepreneurs: The Dark Side to Compound Interest and why you need to keep your friendly Banker in the loop
Oct 25, 2015
James Boorman
Financial Smarts for Women Entrepreneurs: The Dark Side to Compound Interest and why you need to keep your friendly Banker in the loop
Oct 25, 2015
James Boorman
Oct 25, 2015
James Boorman
In Guest Blog Tags James Boorman
← Entrepreneur Advice from Laura Nyahuye - Let’s do this!Entrepreneur Advice from Ommo Clark: Do it if you're good at it →

CELEBRATING 10 YEARS


LATEST PODCAST

LIONESSES OF AFRICA · AI Series Ep. 2 : AI-Human Collaboration in the Workplace

Lioness Radio Show: AI Series Ep. 2 : AI-Human Collaboration in the Workplace - Tune in for an engaging conversation designed to equip you with the knowledge to embrace AI and unlock its possibilities for your business.


LIONESS WEEKENDER COVER STORIES

LIONESS WEEKENDER COVER STORY
Dr Margaret Kemigisha, a publishing entrepreneur passionate about childrens’ literacy
Dr Margaret Kemigisha, a publishing entrepreneur passionate about childrens’ literacy
Sydelle Willow Smith, a pioneer of solar-powered mobile cinema in Africa
Sydelle Willow Smith, a pioneer of solar-powered mobile cinema in Africa
Babette Kourelos, a passionate artisanal bread-baking business builder
Babette Kourelos, a passionate artisanal bread-baking business builder
Thandekile Moloko, an entrepreneur empowering her clients’ financial futures
Thandekile Moloko, an entrepreneur empowering her clients’ financial futures
Teboho Seretlo, a passion-driven entrepreneur helping SMEs to grow
Teboho Seretlo, a passion-driven entrepreneur helping SMEs to grow

IMAGE OF THE DAY. CELEBRATING WOMAN MADE IN AFRICA.

Image of the Day / Reform Studio

Sustainable fashion accessories…We love showcasing women business innovators, so this morning we are featuring the work of sustainable lifestyle brand, Reform Studio, an inspirational eco-focused manufacturing
Image of the Day /Femi Handbags

Full Bloom Style…Add a touch of summer florals to your wardrobe with one of the beautiful new Bloom handbags from Femi Handbags in Nigeria, founded by Femi Olayebi. With their eclectic pops of colour, there&rsq
Image of the Day / Melvins Teas

Time for tea…If you love tea, then this Cool Chamomile tea from the Melvins Tea brand, founded by Flora Mutahi in Kenya is just what you need. The brand is part of Melvin Marsh International, the Kenyan-based f
Image of the Day / Afropian

Storytelling through accessories…Afropian, the Pan-african lifestyle brand founded by Ethiopean entrepreneur Hortense Mbea, is a rare, fully hand-made in Africa brand. It uses traditional know-how in a modern way t
Image of the Day / AAKS

Vibrant Ghanaian craftsmanship,…We just have to share one of our favourite accessories of the year, this beautiful hand-woven bag created by award-winning designer Akosua Afriyie-Kumi and her AAKS brand in Ghana. We lo
Image of the Day / Ledikana

Contemporary South African Chic…Knowing exactly how to spot a gap in the marketplace is key to the success of any fashion brand, and Mapholo Ratau, founder of Ledikana in South Africa, has achieved that goal. For h
Image of the Day / The 1964 Brand

Modern relaxed fashion…Olakunmi Oni is the founder of The 1964 Brand in Nigeria, a fashion business that proudly promotes self-care through minimalist clothing for the modern woman. Loyal patrons of The 1964
Image of the Day / Adèle Dejak

Big bold accessories…We are big fans of luxury jewellery and accessories made with love and passion on the African continent, and Adèle Dejak in Kenya is the epitome of handmade luxury. The brand c
Image of the Day / ReelFruit
 
Healthy snack treats…We love showcasing Africa’s women agribusiness builders, and ReelFruit, founded by Affiong Williams, is inspirational - it’s the largest fruit processing, packaging and distributi
Image of the Day / Dokmai Rwanda

Made in Rwanda Handbag…A passion for handcrafted accessories, combined with a sense of pride for ‘Made in Rwanda’ products, inspired Dokmai Rwanda founder, Bernadette Umunyana, to create a company
Image of the Day / Reform Studio

Sustainable fashion accessories…We love showcasing women business innovators, so this morning we are featuring the work of sustainable lifestyle brand, Reform Studio, an inspirational eco-focused manufacturing Image of the Day /Femi Handbags

Full Bloom Style…Add a touch of summer florals to your wardrobe with one of the beautiful new Bloom handbags from Femi Handbags in Nigeria, founded by Femi Olayebi. With their eclectic pops of colour, there&rsq Image of the Day / Melvins Teas

Time for tea…If you love tea, then this Cool Chamomile tea from the Melvins Tea brand, founded by Flora Mutahi in Kenya is just what you need. The brand is part of Melvin Marsh International, the Kenyan-based f Image of the Day / Afropian

Storytelling through accessories…Afropian, the Pan-african lifestyle brand founded by Ethiopean entrepreneur Hortense Mbea, is a rare, fully hand-made in Africa brand. It uses traditional know-how in a modern way t Image of the Day / AAKS

Vibrant Ghanaian craftsmanship,…We just have to share one of our favourite accessories of the year, this beautiful hand-woven bag created by award-winning designer Akosua Afriyie-Kumi and her AAKS brand in Ghana. We lo Image of the Day / Ledikana

Contemporary South African Chic…Knowing exactly how to spot a gap in the marketplace is key to the success of any fashion brand, and Mapholo Ratau, founder of Ledikana in South Africa, has achieved that goal. For h Image of the Day / The 1964 Brand

Modern relaxed fashion…Olakunmi Oni is the founder of The 1964 Brand in Nigeria, a fashion business that proudly promotes self-care through minimalist clothing for the modern woman. Loyal patrons of The 1964 Image of the Day / Adèle Dejak

Big bold accessories…We are big fans of luxury jewellery and accessories made with love and passion on the African continent, and Adèle Dejak in Kenya is the epitome of handmade luxury. The brand c Image of the Day / ReelFruit
 
Healthy snack treats…We love showcasing Africa’s women agribusiness builders, and ReelFruit, founded by Affiong Williams, is inspirational - it’s the largest fruit processing, packaging and distributi Image of the Day / Dokmai Rwanda

Made in Rwanda Handbag…A passion for handcrafted accessories, combined with a sense of pride for ‘Made in Rwanda’ products, inspired Dokmai Rwanda founder, Bernadette Umunyana, to create a company

STARTUP STORIES. MEET THE WOMEN WHO’VE LAUNCHED.

Featured
Tumelo Tshwagong, a South African agri-entrepreneur contributing to finding sustainable local solutions to addressing food insecurity
Tumelo Tshwagong, a South African agri-entrepreneur contributing to finding sustainable local solutions to addressing food insecurity
Gloria Sellwane Phala, a South African entrepreneur helping clients benefit from the transformative impact of yoga
Gloria Sellwane Phala, a South African entrepreneur helping clients benefit from the transformative impact of yoga
Nondumiso Leshaba, a South African business builder providing professional business advisory and accounting services to SMEs
Nondumiso Leshaba, a South African business builder providing professional business advisory and accounting services to SMEs
Anneline Lucinda Lopis, an entrepreneur on a mission to grow small scale miners around the African continent
Anneline Lucinda Lopis, an entrepreneur on a mission to grow small scale miners around the African continent
Gadifele Moeng, a South African entrepreneur empowering young people to find their voices through public speaking
Gadifele Moeng, a South African entrepreneur empowering young people to find their voices through public speaking

LIONESS DATA & INSIGHTS


LIONESS PLAYBOOKS



Screen Shot 2020-01-27 at 6.01.32 PM.png
Screen Shot 2020-01-27 at 5.34.58 PM.png

Sign up today to receive the #1-rated newsletters for Africa's women entrepreneurs.

* indicates required
Required: Please select your newsletter(s):


LIONESS BOOK REVIEWS

Featured
Dream Big and Win: Translating Passion into Purpose and Creating a Billion-Dollar Business by Liz Elting
Dream Big and Win: Translating Passion into Purpose and Creating a Billion-Dollar Business by Liz Elting
After the Idea: What It Really Takes to Create and Scale a Startup by Julia Austin
After the Idea: What It Really Takes to Create and Scale a Startup by Julia Austin
Feminine Intelligence: How visionary leaders can reshape business for good by Elina Teboul
Feminine Intelligence: How visionary leaders can reshape business for good by Elina Teboul
Bridging the Confidence Gap: How Empowered Women Change the World by Sheena Yap Chan
Bridging the Confidence Gap: How Empowered Women Change the World by Sheena Yap Chan
Authentic Selling: Be Real to Seal the Deal by Kendrick Shope
Authentic Selling: Be Real to Seal the Deal by Kendrick Shope

About Us  |  Contact Us  | PRIVACY POLICY | terms OF SERVICE  | Community Guidelines  

© 2025 LIONESSES OF AFRICA public benefit corporation. ALL RIGHTS RESERVED.