CHAMWE KAIRA
The merged Pepkor entity is required to use reasonable endeavours to achieve N$40 million in local procurement spending from Namibian manufacturers in the clothing, footwear and homeware sectors over three years, as part of conditions imposed by the Namibian Competition Commission (NaCC) on its acquisition of several Retailability Namibia businesses.
The local procurement commitment is among measures attached to the commission’s conditional approval of the transaction, which it said was intended to address competition concerns arising from increased concentration in Namibia’s retail market for clothing, footwear and accessories.
A key condition requires the merged entity to establish and implement a Local Supplier and SME Development Programme valued at N$4.2 million over three years.
The commission said the supplier development programme and procurement commitment are being supported through a two-day supplier development summit scheduled for 19 and 20 August in Windhoek.
The summit is aimed at local manufacturers and small businesses operating in the clothing, footwear, textiles, leather, furniture, homeware and related sectors.
The commission stressed that the summit is not a partnership programme between NaCC and Pepkor, but forms part of the obligations imposed on the merged entity following the conditional approval of the transaction.
The merger involved Pepkor Speciality Stores (Namibia) acquiring the Legit and Swagga/Beaver Canoe businesses, while Pep Stores (Namibia) acquired the Style business as a going concern.
The NaCC was notified of the transaction on 3 June 2025 and subsequently approved it subject to conditions following the commission’s competition assessment.
The businesses acquired from Retailability Namibia comprised 21 Legit stores, 39 Style stores and 23 Swagga/Beaver Canoe stores across Namibia.
According to the commission, its assessment found that the transaction would increase concentration in Namibia’s retail market for clothing, footwear and accessories, strengthen the merged entity’s market position and reduce competitive discipline in the sector.
In response, the commission imposed conditions covering national pricing, nationwide access to promotions, support for local suppliers and SMEs, local sourcing of third-party services, non-bundling of products and a prohibition on merger-specific retrenchments for three years.
The NaCC said the supplier development summit is intended to identify potential local suppliers, strengthen supplier capabilities and create pathways for Namibian manufacturers to access procurement opportunities within Pepkor’s retail network.
The summit will include sessions led by supplier development specialists and industry experts focusing on productivity, operational performance, quality standards and competitiveness. It will also facilitate engagements between manufacturers, retailers, government institutions and other industry players.
In addition, Pepkor has launched a public Expression of Interest (EoI) under the Namibian Manufacturing Futures Localisation Programme.
The programme targets Namibian manufacturers in the clothing, textiles, footwear, leather and furniture sectors interested in becoming potential suppliers to Pepkor.
According to the commission, the programme is designed as a multi-year initiative to strengthen local manufacturing capabilities, facilitate commercially viable local procurement and support Pepkor’s localisation commitments arising from the merger conditions.
The EoI is aimed specifically at manufacturers rather than traders or importers, with preference given to businesses legally registered in Namibia and an emphasis on Namibian-owned enterprises. Applications close on 30 September 2026.
The commission welcomed Pepkor’s implementation of the supplier development obligations, saying the summit and EoI demonstrate steps towards complying with the conditions attached to the merger approval.
It warned that merger conditions are legally binding and form an integral part of any merger approval decision.
The NaCC may revoke its approval of a merger where approval was based on materially incorrect or misleading information for which a party to the merger was responsible, or where a material condition attached to the approval is not complied with.
The commission said it will continue monitoring implementation of the merger conditions through the prescribed reporting framework.
