Negotiations on the Namibian Retail Sector Charter are at an advanced stage and are expected to be completed before the end of 2015.
Launched in October 2014 by the then Ministry of Trade and Industry the Retail Charter finds its origin in the fourth National Development Plan.
The plan is emphatic about its expectations of the retail sector in Namibia. It mandates the then Ministry of Trade and Industry to drive the growth of manufacturing and subsequently that “retailers will have to shelve locally produced goods.”
This can best be achieved through stronger dialogue and collaboration between the public and private sectors. All of the initiatives aimed at promoting this dialogue and advancing collaboration are now anchored in the ‘Growth at Home’ theme, which is the roadmap of the Ministry of Industrialisation, Trade and SME Development in the implementation of Namibia’s industrial policy.
Overview
We understand the supply chain – or the value chain – to be the set of activities, services and products that lead a product or service from its origin to the final consumer.
The retail sector plays a crucial role in the supply chain, inasmuch as the sector accounts for all those services that “involve the presentation and sale of goods directly to consumers and in quantities suitable for their consumption”.
In Namibia, like other developing countries, the retail sector continues to grow due to increasing urbanisation and the expanding middle class, amongst other issues. There are a number of factors that are being considered to strengthen and sustain our nation’s retail sector.
Notwithstanding its steady growth and development, our retail sector is characterised by mostly South African (RSA) chains in the fruit and vegetable, clothing and hardware subsectors, in particular.
These retailers source their goods primarily from RSA, but also from other parts of the world, where historical ties (between RSA and Namibia) are still strong and accompanied by sophisticated distribution systems.
The small Namibian population, which is sparsely distributed over a vast terrain, adds further dimensions to considerations for potential retailers, due to the associated increased transportation costs.
There are a small number of locally produced substitutes for RSA imports, with the exception of some primary and processed agricultural products.
What is apparent and concerning is that retail shops around the country are full of imported products and local manufacturers are faced with barriers of entry due to established procurement practices.
This was highlighted by President Hage Geingob in his first State of the Nation Address, where he underscored the imperative to conclude the development of the Retail Charter, stating, “It is unacceptable that 25 years after Independence, Namibian manufacturers are still denied shelf space in retail outlets… the Retail Charter needs to be fast-tracked and concluded before [the end of] 2015.”
The role of the consumer
In addition to various stakeholders actively involved in the development of the charter, and of particular importance, are the consumers. Without the consumer, there is no demand for a product. Consumption is the largest component of the Gross Domestic Product (GDP) in any country.
It is an important element in stimulating growth. Its benefits are only optimal when the goods and services being consumed are locally produced. With the current situation where most of the goods and services are sourced from outside the country, the balance of payment will continue to widen in the deficit. It also enables the creation of jobs elsewhere and not for our own citizenry.
What then is the role of the consumers in this undertaking?
Consumer organisations in Namibia have been invited and are kept abreast of developments. Whether through their chosen representatives, or as individuals, consumers have both rights and responsibilities in the development and implementation of the Retail Charter.
Our role as consumers is to support this initiative – by purchasing locally produced and manufactured products and services. Our role is also to ensure its efficient and effective implementation – by responding to calls for quality assurance or public input.
* Ndiitah Nghipondoka-Robiati is the Chief Executive Officer of the Namibia Trade Forum.