Namibian Retail Sector Charter (NRSC)
The National Development Plan 4 (NDP4) clearly outlines its objectives for the retail sector in Namibia. NDP4 mandates the Ministry of Industrialization, Trade and SME Development (MITSD) to drive growth in manufacturing and subsequently outlines a need for diversification of locally produced commodities; as well as to increase shelving and availability of locally produced goods.
The Namibia Retail Sector Charter (NRSC) will lay out principles and targets which will ensure greater access into the retail market for local beneficiaries. This intervention will later be used to monitor and assess the impact and its contributions towards the “Growth at Home” strategy. It is envisaged that the charter facilitates the creation of a suitable climate for local procurement, stimulation of demand and accompanying growth targets. This will best be achieved through stronger dialogue and cooperation between the public and private sectors.
The NRSC Thus Aims To
- stimulate local manufacturing,
- facilitate meaningful job creation,
- reduced unemployment,
- deliver enduring changes in consumption patterns.
The Retail Charter
- Reflects the present Namibian reality and aims at transforming the
- Namibian retail sector in order to bring about equitable benefits for the Namibian people;
- Establishes targets and quantified responsibilities of the parties with respect to all the pillars;
- Outlines processes for implementing the commitments contained in the Charter, as well as mechanisms to monitor and report on progress by the parties;
- The result of stakeholder consultations in the retail industry and the Government.
Goals And Objectives Of The Retail Charter
- To transform the retail sector to one that is linked to local production through the promotion of local sourcing and locally produced products; Increase the content of Namibian products stocked by retailers and
- the number of Namibian manufacturers having supply contracts with retailers;
- Ensure that Namibian produce and manufactured goods should be able to access the retail market on equal terms to any imported products if quality and cost standards are met;
- Increase local ownership and control by Namibians in the retail sector and implement strategies that empower formerly disadvantaged Namibians;
- It shall be a guide for policy review and transformation of the Namibian retail sector, within a determined time frame and in the context of the goals and targets of Vision 2030, NDP4; and NEEEF.
- To support local businesses in securing markets at home and abroad, through the promotion, marketing and distribution of Namibian produce and manufactured goods;
The Challenges Facing The Retail Sector
- Namibia’s retail shelves are full of imported products and local manufacturers find it difficult to access the domestic market place.
- Many local retailers do not source Namibian products as a first choice; this further limits local producers’ access to local consumers.
- Local enterprises still face many difficulties to convince retailers to stock and sell their products.
- Local products are not sufficiently distributed into foreign markets by distributors; Manufacturers are forced to obtain product listing at retailers with no Namibian procurement offices and thus have to travel to outside the borders of Namibia to obtain listing;
- Concerns have been raised by retailers, regarding the product quality and supply capacity of Namibian manufacturers;
- The infrastructure to support entrepreneurs is underdeveloped.
- There is insufficient marketing by retailers of locally produced goods;
- The retail sector has not done enough to promote the growth of sustainable enterprises and little enterprise development support has been done.
The 6 Key Transformational Pillars derived from the Retail Sector
- 1. Local Sourcing
- Local sourcing is concerned with the taking of measures that are designed to promote the sourcing of local products and services in order to stimulate the growth of the local economy. The aim is for retailers to increase locally produced or manufactured products on their shelves.
- 2. Marketing and Visibility
- It is concerned with the measures taken by retailers to promote local products through marketing initiatives and the allocation of shelf-space.
- 3. Enterprise Development
- Is concerned with contributions in whatever form made by retailers in supporting MSMEs, with the object of assisting them in becoming more productive, profitable and sustainable enterprises.
- 4. Corporate Social Investment (CSI)
- There is insufficient appreciation by many retailers of the fact that they have various responsibilities towards the communities within which they operate, and that they should contribute to the sustainable development of the communities through corporate social responsibility initiatives.
- 5. Transparency Procedures
- Is concerned with the conduct of retailers in applying fair and transparent business principles in their dealing with customers, suppliers and competitors. Specifically, it requires retailers to be fair and transparent with regard to procurement procedures, terms of credit, payment and rebate provisions so that local suppliers are not subjected to worse treatment than foreign suppliers.
- 6. Consumer Protection
- Consumer protection involves a commitment by enterprises to ensure that products and services do not pose a hazard to the health and safety of the public and are fit for consumption and use.
In order to stimulate manufacturing and ensuring market access at home and removal of structural barriers to entry of Namibian products, the Retail Charter serves a successful coordinated vehicle in driving smart dialog for a conducive retail environment in Namibia.
Growth At Home
When whole heatedly implemented the Namibian Retail charter * NRSC) will unlock tangible opportunities for Namibians.
Coordinated and administrated by the Namibian trade forum, (NTF) aims to be the indispensable public private dialog platform for a conducive business environment while the mission is to drive smart dialog to influence trade policies and economic growth and the values defining its conduct and transparency, integrity and inclusiveness.
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