Namibia, Why Buy Local, When Local is Overpriced?

So Namibia is experiencing a downtown economic activities in the dairy industry? I seriously believe that Namibian producers and marketers don’t know how to properly price their locally produce. I don’t even know if the local producers know how to calculate their gross margins per unit basis. Because, with everything locally produced, it’s always overpriced.

Let’s look at an example, the US auto markets which face extreme stiff competition from foreign automakers, Germany, Japan, etc., but the US auto market is able to effectively compete against these foreign automakers. They do so by being innovative, efficient and most importantly, they use better accounting methods, LIFO mostly, in their production, pricing and chain-supply management. Hence this excuse of encouraging the local Namibian consumers to buy local even though the local products are most of the time overpriced just to save the locally produced, is not a good excuse.

Let the market’s invisible hand regulate and dictate the market price and production outputs based on the demand and supply capacity. The local producers need to become more lean, more efficient and most importantly, focus on good accounting methods and the law of diminishing returns. I’m honestly glad that the international market is giving the local Namibian producers this much needed competition.

Overall, it’s the well organized, managed and innovativeness who will survive during this downturn economy for the dairy produce. And in the end, the local consumers also benefit in terms of the market price versus their income level. Because now in Namibia, the market or prices of consumer goods exceed the average pay rate for the majority of Namibians.

Africa has been politically ruled since the beginning of time, it has never been market-driven. But where is Africa still stands in today’s global economy? Firstly I’m not a politician and until when I was in Nanso during my school days, I’m not interested in politics. But I studied politics, the history of Africa and the world’s economy as part of my economic degree’s education, so my interest is in economics as I am an economist. Secondly, I’ve been an entrepreneur since 1995, so I know a thing or two about these areas. And as long as Africa is not market driven but by politics, Africa will never develop economically to its fullest to benefit all of its people but a few.

Even this land issue in Namibia, it’s not for everyone, no matter the 200,000 plots being serviced, they will never solve the real issue but make Namibia worse, because still only the haves will afford to buy the plots and the have nots won’t get none, and also in the end, it will cause to dilapidate the housing market in Namibia and Namibia’s housing market in terms of shape and value will become like Zimbabwe, Zambia etc., and no bank will issue housing bonds. So let the market system drive the market price, but this too is not good enough if Namibia doesn’t focus on creating better paying jobs.

If we focus on better paying job creation, then local commercial banks would be happy to issue more loans or housing bonds. Also depends on the Bank of Namibia, banks may even lower their interest rates on their housing bonds. This is because the market would have more customers looking to buy houses, cars and other tangible things, so banks would be forced to go with the market; customers would look for better rates and services. And if banks won’t compete to improve their offerings, then under Namfisa, there would be rooms for more financial institutions to come in the market to compete for these customers.

This is true since the market demand for houses and tangible assets would be ripe and profit will be larger, so this would call for more market entry by other financial institutions to be established and offer better rates and best customer services. In the end, you, the consumer will benefit more, as your demands will surpass the market supply. So it’s a smart thing for the government to do to pump money in job creation projects in order to help improve the market, and hence increase or improve the better living condition for nearly every Namibian.

Remember that when more people are employed and getting decent salaries, the more the government will recoup more income from tax income in order to increase social programs such as the pension schemes for the senior citizens, medical welfare and more. So let’s create better paying jobs, let’s focus on increasing vocational training to produce more qualified manpower.

Let’s develop mentorship programs to help infuse self development for many Namibians, let’s focus on hosting public seminars and workshops to help instill value and self confidence in entrepreneurs. We can do more, we can do better, to benefit all of us. And this is what is called economic inclusion.

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