1. Addressing the Retail Charter and the way forward for ‘Preferential Procurement’.
Prof. Eugene Madejski
NUST Namibia University of Science & Technology.
Polytechnic of Namibia

3. Retail Charter Background & Objectives
The development of a Retail Charter enhances opportunities for locally made goods to find trading space.
Creates synergies between local producers and large retailers.

5. About the Retail Charter:
“Equally the completion of the Retail Charter should be fast-tracked and finalized, before the end of 2015.
It is unacceptable, that a quarter century after independence, locally produced goods are denied shelf space in retail outlets.”
- H.E. Hage Geingob, President, Republic of Namibia.

6. About the Retail Charter 2:
Supports the “Growth at Home’’ strategy/Industrial Policy and NDP4.
Focuses on priority action:
‘Securing market access at home and abroad’.
Development based sector consultation.

8. Issues and Challenges of Retail Charter
Merchandising Namibian products,
Minimum local procurement requirements,
Transparency and fairness in procurement procedures,
Local accounting offices,
Supplier development programme,
Regular interactive meetings,
Monitoring.

10. Merchandising Namibian products
“The development of local industries could be positively stimulated - if retailers would merchandise Namibian products where feasible and practically possible.”

11. Australian Made

12. What is and what isn’t local?
By supporting "Australian Made" and "Made in Australia", you are supporting companies that provide job opportunities to Australians.
Australian Made Campaign Chief Executive, Ian Harrison came up with a great quote supporting this: "Many companies and retailers in this industry are marketing their products with a veneer of 'Australian-ness', which can be misleading.
"Iconic Australian names and imagery, coupled with claims such as 'Australian sheepskin', 'Australian owned', 'classic Australian' and so on, give the impression the product is made here when in fact it may be fully imported“.
He said another common practice is the removal of 'Made in China' tags from imported products.

14. Minimum local procurement requirements
It should be explored how on a voluntary basis a minimum content of local products or local preferences can be ensured.
This could be complemented by a retail rating system.

15. Transparency and fairness in procurement procedures
Many manufacturers find it difficult that for product listings at retailers with no Namibian procurement offices, they have to travel to foreign countries to apply for a listing there.

16. Local Accounting Offices
Many foreign retailers do not have accounting offices in Namibia.
This way, income earned and rebates from Namibian manufacturers are not declared as Namibian income - and local taxes are not paid which could be used to support economic transformation.

17. Supplier development programme
Based upon schemes already offered by certain retailers, it should be explored to introduce a sector-wide supplier development programme assisting local manufactures with skills development , labelling and packaging to conform to retail specifications.

18. - Regular interactive meetings - Monitoring
A platform for a regular dialogue between manufacturers and retailers/wholesalers should be established - to discuss problems and solutions
A monitoring system against the targets agreed in the Charter - should be introduced.

19. Namibia Trade forum main mandate
To institutionalise Public/Private dialogue and cooperation. With an emphasis on international and domestic trade and investment policies - as stipulated by the fourth National Development Plan (NDP4).

21. Preferential Procurement – e.g. SA
Preferential procurement in South Africa is not only about proper financial management of public monies, it also presents an opportunity for government to correct the socio-economic imbalances of the past by awarding government work to individuals disadvantaged by historical practices.

23. Preferential Procurement 2.
Procurement is regulated in the South African Constitution – in the provisions dealing with general financial matters, imposing certain obligations on government entities to ensure the proper and responsible expenditure of public funds.
The South African Constitution requires that when government entities engage in any procurement they must comply with five key principles set out in section 217(1) of the Constitution.
These five pillars stipulate that the procurement process must be equitable, transparent, fair, competitive and also result in cost-effectiveness for that public institution.

25. Challenges continue …

26. Dankie eio Okuhepa Tangi Thank you