Namibia wants local goods on shelves

A retail charter designed
to support the local
production and ultimate
export of fast moving
goods is being rolled out by the
Namibian government and the
private sector.
In the first phase it will see 20% of
goods on the shelves being sourced
locally – which, if successful, will
affect the flow of consumer goods
into and out of Namibia.
At the launch of the charter in
March 2016, Namibian minister of
industrialisation, trade and SME
development, Immanuel Ngatjizeko,
said the growth in local retail sector
had been at the expense of the local
small artisan bakeries, florists,
butcheries and small family-owned
mini markets by the big retail
chains, mostly from South Africa,
and smaller retail outlets mainly of
Chinese origin.
“This has resulted in limited
participation of Namibians in the
retail sector and its supply chains and
snubbing of local products,” he said.
With Namibia’s relatively small
local market of around 1.4 million
people, the manufacturers will also
need to export to neighbouring
countries in the customs union in
order to achieve economies of scale.
Namibian suppliers face a number
of challenges, some of which are
logistic as a result of the saturation
of the local retail sector by foreignowned
firms.
According to the Namibian Retail
Sector Charter document, there are
cases where local manufacturers
have to transport their goods to
distribution centres which are located
outside Namibia, from where they
are re-exported to Namibia.
The first phase of the
implementation of the Retail Charter
is set to run until December 2017.
It consists of familiarisation and
training of retail sector members
on the requirements of the Charter,
followed by an assessment on the
progress being made, according to
EPA Monitoring.
Namibia has already had some
success in the substitution of
imported foodstuffs.
Established in 2002,
the National Horticulture
Development Initiative has seen
the percentage of locally sourced
horticultural products on the
shelves of retailers rise from 5%
in 2005 to over 49% in good
seasons, according to the Namibian
Agronomic Board.
The target is 41.5%, but this
could increase to 60%, according
to the board’s website.
Under the scheme importers are
obliged to ensure that a minimum
percentage of their horticultural
produce sales consist of Namibiangrown
products before being
granted an import permit for a
defined quarter.
If they exceed the quota their
imports can be curtailed pro rata
in the subsequent quarter.
CAPTION
A new retail complex taking shape in Walvis Bay. The government wants
greater local procurement.