By Deon Schlechter
WINDHOEK – The year 2015 will go down in the annals of the Namibian economic sector as the year of transformation of the local retail sector in line with the National Development Plan (NDP4). This will be the result of the soon to be introduced blueprint for the Retail Charter, which could result in Namibian producers getting the upper hand in the competition for shelf space in local retail chains and outlets for the first time since independence.
Deliberations and frameworks for the Retail Charter were put in place towards the end of last year after the Namibian Competition Commission concluded the Retail Sector Study report and it was submitted to the Ministry of Trade and Industry, which will lead to the draft of the Retail Charter soon.
Namibia has seen an increase in the number of retail shopping centres mushrooming across the country, as well as a number of small producers, many of whom struggle to place their products in the shops, majority of which are foreign owned.
In essence, the study identified constraints faced by players in the important sector and recommended ways to solve the constraints. It also identified opportunities available for Namibian suppliers and manufacturers, as well as areas of competitive advantages in the sector.
“South African retailers through bundling of goods together are able to overcome the logistical challenges more efficiently through their distribution centres in Namibia and South Africa and Namibian suppliers are not able to overcome this challenge as they are not able to achieve critical mass in partnerships. Evidence shows that there is very little or no industry wide sector development plan that could help drive the sector towards competitiveness and enable the envisaged Retail Charter to ensure a more efficient relationship between Namibian suppliers and the local retail sector,” the report reveals.
The findings report on how the Retail Charter would benefit Namibian producers and manufacturers. Minister of Trade and Industry Calle Schlettwein has applauded local retailers for their commitment in changing the situation and hence moved to develop the Retail Charter.
Schlettwein was quoted saying, “Our retailers are in the process of developing a Retail Charter that will set out good guidelines for local sourcing and suppliers development. Our ministry together with partners such as Fablab and Polytechnic of Namibia are providing support in product development to young entrepreneurs to create up to date cutting edge products that consumers want to buy.”
The Retail Charter will present Namibia with a great opportunity to control its very own retail industry while it opens up the door for its local products and manufacturers to sustain growth and enabled capacity to grow and become the future dominators of retail shelves.
The Retail Charter will not be without challenges. The possibilities are there that shortages of particular goods may occur while local retailers may find it difficult to match the quality and quantity of currently imported goods that have benefited from many years of shelf presence. This was demonstrated last year in the milk industry where the price of milk from NamDairies constantly rose due to increased demand.
The Retail Charter will be a dream come true for Namibia’s increased desire to self-sustain the economy. Before the Retail Charter is implemented, Namibian producers must be given adequate support to produce the best products at the best price and in adequate quantities.
It would also mean that retailers would be mandated to support local produce by making them part of their ordering systems, something that is currently lacking.