Edgars capacitates local textile producers
Pauline Dikuelo | Friday February 17, 2017 11:07
This is in-line with government’s initiative on citizen economic empowerment through the procurement of locally manufactured goods and services. Yesterday, Edcon in conjunction with the Ministry held the first of planned series of workshops where the retailer was to share its expectations on the quality of products it requires.
“The workshop will provide a platform where Edcon would share their expectations on product quality, price competitiveness and supply in order for the local enterprises to penetrate the Edcon group of companies market,” the Ministry said.
Following months of intense negotiations, government last year announced that it has reached a compromise deal to grant the Edcon Group exemptions to trade in businesses that are reserved for Batswana.
The Ministry said that they have reached a mutual satisfactory agreement with the South African retailer consenting to capacitate local suppliers as well as giving a part of their in-store floor space to local suppliers in the next two years. As part of the agreement, Edcon will avail 10% of its floor space to local suppliers in the two years leading to December 2018.
The exemption would allow them to trade in the clothing retail space reserved for citizens, with Edcon agreeing to facilitate and run supplier development workshops in Botswana on agreed dates.
These are intended to educate and build capacity for local producers on product costing, product inspection, quality requirements and retailer fitting rooms. The aim is to bring local producers to the level of quality that will enable them to supply the readily available market for retailers. In addition, the JSE-listed Edcon committed to an agreement that following the supplier development programme, they will increase the number of local vendors beyond the current two as part of the deal. According to the Trade Act 2003, businesses such as auctioneers, car wash, cleaning services, curio shop, fresh produce, general clothing, general dealer and hairdresser are exclusively reserved for citizens of Botswana.
Currently, Edcon owns over 34 retail stores in Botswana through four Edgars, three Edgars Active Stores, one Boardman store, three legit stores and three CNA stores, eighteen Jet stores and two Jet Mart Shops.