‘Local businesses on the path to growth’

The secrets of how local small-scale suppliers can get their products sold through the Shoprite were unveiled recently at the first of a series of workshops organised by the supermarket giant in partnership with the Private Enterprise Programme – Zambia (PEPZ).

Zambian small and medium sized enterprises (SMEs) have reportedly faced challenges in penetrating the supply chains of large multinational corporations while the firms mention challenges relating to product quality and consistency of supply.

However, this apparent schism between the desires of SME suppliers and those of large firms is steadily narrowing thanks to the partnership between PEPZ and Shoprite Zambia.

This partnership aims to train local SMEs through a series of workshops on Shoprite’s supplier procedure to ensure SMEs are equipped not only with the right product, but with the requisite knowledge necessary to get their product on the shelves of Africa’s largest retailer.

Director of Trade and Commerce in the Ministry of Commerce, Trade and Industry, John Mulongoti, who is currently acting Permanent Secretary in the Ministry, officially opened the inaugural training workshop, which attracted 50 representatives from around 30SMEs seeking to supply Shoprite with products ranging from honey to stationery.

“It is gratifying to note that over 50 Zambian SMEs will be trained in partnership with PEPZ in the first session and will have an opportunity to undertake a study tour of Shoprite’s main office to appreciate the company’s operations,” said Mr Mulongoti.

PEPZ Team Leader, Bayo Akindeinde said: “Greater business linkages between large firms that dominate the economy, such as Shoprite Zambia, and local SMEs can help to link lead industries to sectors in which the poor are employed. That way, everybody wins.”

Speaking during the workshop, Shoprite General Manager Charles Bota said: “Shoprite strongly believes there is a commercial case for large companies such as ours to purchase more locally to shorten extended, import dependent supply chains, purchase products better produced locally and to reduce costs in products where Zambia is competitive.”

“We are therefore pleased to partner with PEPZ to train SMEs on the procedures of our company. We also urge other large firms to commit to the development of SMEs through local procurement,” he added.

PEPZ runs a Business Linkages Programme (BLP), that takes account of the findings of its extensive consultations with stakeholders and research to learn lessons from past and present business linkage initiatives in Zambia and internationally and to identify the forces for change and key success factors.