Nghipondoka bemoans foreign business onslaught

Businessman Vaino Nghipondoka said there is a foreign onslaught on the Namibian retail sector, a situation that has pushed locals to the periphery of business.

He believes foreign businesses must participate in high-level industries where Namibians lack capacity, capital and know-how.

“I've no qualms with China buying into Ohorongo, as recently reported. Namibians do not have capital for investments of that magnitude, so let the foreigners operate at that level of investment,” he said on Friday.

He also urged government to consider classifying businesses who apply for tenders, so that companies that have previously received multimillion-dollar tenders are not considered for smaller ones.

“Babyface Civils [a company Nghipondoka owns] should not be allowed to tender for a N$10 million job.



“We must give smaller businesses a chance at that level, while we battle it out at a higher level,” he told Namibian Sun.

Fresh from the festive holiday up north, Nghipondoka said he was shocked to observe foreign businesses indulging in retail activities that should ordinarily be reserved for locals in order to stimulate growth.

He wagged his finger in the direction of Asian businesses, who generally have deeper pockets than average Namibians, as chief infiltrators of that sector.

“They are even making traditional attire like Ondelela and selling watermelons, onions and corrugated iron sheets. How is this allowed? You have businesses like Kambwa Trading who sell building materials at retail level and they now have to fight with the Chinese and others for the same segment of the market. How will we empower our people if there's no protection for them in this regard?

“These [foreign] businesses do not have local shareholders and these guys never bank here. You never see them in a bank queue, so that tells you they export all their profits to their countries of origin.”

Nghipondoka said contrary to popular belief that the economic fight in Namibia is between blacks and whites, the actual battle is between Namibians and foreign businesses.

“Namibia has huge construction companies such as Otesa, Namibia Construction, Octagon and others with proven track records, but you see that many construction contracts continue to be awarded to foreign companies.

“Namibian companies are getting 20km road construction tenders while longer roads are awarded to foreigners. Any Namibian company that is able to construct a 20km road can surely also construct a 100km road.”

He believes that a strict policy must be formulated, reserving certain economic sectors – especially retail – for local people and businesses. Many countries from the developing and developed worlds have implemented 'indigenisation' policies, which seek to reserve certain economic sectors for natives.

These include the US, China and South Africa. In these countries, such economic sectors are reserved for their citizens or the national government pushes for joint ventures with foreigners in strategic investment portfolios.

The businessman called for a national economic conference, similar to the land conference held in October 2018, to help place the country on a proper economic trajectory.

“We need to discuss things and come up with policies that protect our economy and benefit our people. For example, this country has become a dumpsite for foreign second-hand vehicles to the detriment of many local car dealerships. We must either stop them or charge them high taxes,” he concluded.

Nghipondoka currently employs about 250 people across his empire of businesses, which include farming, construction, agri-processing (fertilisers), milling, telecoms as well as car hire and transportation.

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