How to Price Your Products for African Buyers: Landed Cost, Duty and Margins (2026)

Pricing for the African market is not the same as pricing for your home market with a freight line added. Your ex-works price is only the first layer; the African buyer's real cost, the landed cost, includes freight, insurance, customs duty, taxes, port and clearing charges and inland transport, and then they still need a margin. If your price ignores this, the buyer will do the arithmetic for you and decide you are too expensive. This guide shows a method for pricing for the African market, with worked examples. All numbers in the examples are ILLUSTRATIVE round figures to show the arithmetic. They are not real duty rates, tax rates, freight rates or exchange rates.

Start from landed cost, not from your price list

Landed cost is the total the importer pays to get the goods onto their own warehouse floor. Work out what a buyer must pay in total, then check whether the resale price still works in their market. Our general guide on how to calculate true landed cost covers the buyer's side; here we look at it from the seller's chair.

The usual components, in order:

Goods price on your agreed Incoterm (for example EXW, FOB or CIF; see the Incoterms guide).
Origin charges: export packing, inland transport to your port, export clearance, loading.
International freight and insurance.
Customs duty and any other import taxes, charged on a value set by the destination customs authority.
Port, terminal and clearing agent charges, plus inspection or standards fees where the goods are regulated.
Inland delivery to the buyer's warehouse or shop.
Cost of money and currency: payment terms, bank charges and exchange rate movements.

How customs duty is assessed: why the "customs value" matters

Duty is generally calculated as a rate applied to a customs value, not to whatever you wrote on a quote. Each country sets its own detail, so read the local authority's page.

Kenya. The Kenya Revenue Authority's instruction manual for the customs value declaration (Form C52) says customs value starts from the price actually paid or payable for goods sold for export to Kenya. It then adds items such as packing and container costs, selling commissions, brokerage, royalties and licence fees tied to the goods, and counts freight, loading and handling to the port, and insurance as delivery costs. The manual is undated. It also says goods are adjusted where buyer and seller are related.
South Africa. SARS's valuation page (last updated 21 August 2024) says transaction value is the primary method, based on the price actually paid or payable, with the free-on-board price as the starting basis, adjusted by additions such as certain royalties and deductions such as interest on extended payment terms.
Ghana. The Ghana Revenue Authority's import procedures page says declarations are processed through its ICUMS system through classification, valuation and approval, after which the clearing agent pays duties and taxes. The amount depends on the goods' cost, type and applicable rates.

The practical lesson: your invoice value, your Incoterm and any extra payments such as royalties or commissions all affect the figure customs will tax. A low "customs invoice" does not make duty disappear and can lead to delays, penalties or seizure. Keep invoices accurate, and have the buyer confirm the HS code and current rates with their clearing agent or customs authority. Rates and rules change.

Worked example 1: from FOB price to landed cost (ILLUSTRATIVE)

Suppose you sell a product and want to know what the importer really pays for an order of 1,000 units. All figures are hypothetical, in US dollars for simplicity.

FOB value: 10,000 (10.00 per unit)
International freight: 800
Insurance: 100
CIF value (FOB plus freight plus insurance): 10,900
Duty at a hypothetical 10 percent of CIF: 1,090
A hypothetical 15 percent tax charged on CIF plus duty (11,990): 1,798.50
Port, clearing agent and inland transport (hypothetical lump sum): 600

Landed cost: 10,900 + 1,090 + 1,798.50 + 600 = 14,388.50, or about 14.39 per unit. Your 10.00 FOB price has become roughly 44 percent more before the buyer earns anything. The 10 percent and 15 percent are placeholders chosen to make the sums easy. Real rates depend on the product's HS code and the country, and the base on which taxes are calculated differs by country, so ask the buyer's clearing agent.

Worked example 2: what the shelf price looks like (ILLUSTRATIVE)

Now add the importer's and retailer's margins. If an importer or distributor needs a hypothetical 20 percent margin on their selling price, the wholesale price is 14.39 divided by 0.80, about 17.99. If the retailer needs a hypothetical 30 percent margin on the shelf price, the shelf price is 17.99 divided by 0.70, about 25.69.

So a product you sold at 10.00 FOB reaches the shelf near 25.69 in this illustration, about two and a half times your price. If local competitors or cheaper imports sit below that, you need to change something: your price, your pack size, your freight method or the product spec. The US Commercial Service's Nigeria guide (last published September 2025) lists low consumer purchasing power and competition from cheaper Asian and African alternatives among the main pricing challenges, and says currency devaluation makes imports less affordable.

Currency, payment terms and margin protection

Quote in a stable currency, but know the buyer's risk. If the local currency weakens between quote and payment, the buyer's cost rises. Short quote validity periods protect you.
Price payment terms. Offering 30 or 60 days costs you money; give a clear discount for advance payment. Our guide to Net 30 vs Net 60 explains the trade-offs.
Stay inside your floor. Set a minimum margin you will not go below, and give tiered discounts for volume instead of ad hoc cuts.
Offer two Incoterms. A FOB and a CIF quote let experienced importers use their own forwarder and let newer ones see a full freight-inclusive price.

Also review the less obvious costs in our post on hidden costs of cross-border ecommerce, such as demurrage, inspections and repackaging.

Frequently asked questions

How do I calculate landed cost for African buyers? Add the goods price, international freight and insurance to reach the customs value, apply the duty and taxes that the destination customs authority sets for the product's HS code, then add port, clearing and inland delivery costs. Always check the local formula, as the tax base differs by country.

Should I quote FOB, CIF or EXW to African buyers? Many sellers offer FOB and CIF. FOB suits importers with their own forwarders; CIF is easier for first-time buyers because it shows more of the cost. Whichever you choose, state it clearly on every quote.

Who pays import duty, the seller or the buyer? Under most common terms the buyer pays duty and import taxes. Only delivered terms such as DAP or DDP move any of this to the seller, and those carry risk if you do not know the local rules.

Why do African buyers say my price is too high when my factory price is lower than Chinese rivals? They compare landed cost, not factory price. Freight, duty, clearing and margins can erase an ex-works advantage.

Getting started

List your products with MOQs and tier prices on Comilmart by creating a free account; you ship to Africa yourself and the importer clears the goods, so make sure your Incoterm and documents are clear. Buyers can send a request for quotation and you can respond with a landed-cost-aware price. Check each authority directly before quoting: the KRA customs value declaration manual, the SARS valuation page and the GRA import procedures. Rules and rates change, so confirm with the customs authority or a licensed clearing agent before you ship.