Namibia's manufacturers take on SA retail conglomerates

Allafrica.com reports that the 110 members of Namibia's Manufacturers Association (NMA) have called for a high-level closed-door forum to deal with "restrictive business practices" from South African retail conglomerates on stocking local products.

Should the forum, scheduled for June 12, fail to produce tangible solutions, they say, the NMA should motivate for exclusive "Manufactured in Namibia" shops that stock only locally-produced products.

The NMA says local manufacturers often face an uphill battle to convince South African retail shops operating in Namibia to stock and sell locally-manufactured products in their shops. Before their products are accepted, local manufacturers are required to first present the product to the retailer's headquarters in South Africa for consideration and approval. The multinational retail chains often deny such requests.

Even in cases where approval is granted, Namibian manufacturers "are expected to transport the goods to the relevant distribution centre in South Africa, from where it is then re-exported to Namibia," NMA Chief Executive Officer Hennie Fourie says. This, he adds, "increases the cost of the Namibian product significantly." In addition, Namibian manufacturers are required to pay rebates to the retailers for the sale of their products, Allafrica.com says.

Read the full article on http://allafrica.com.