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The FMCG cartel and the fight for fair labour  

by reporter
July 29, 2026
in Latest
11
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Portrait of a man with short hair in a khaki shirt, squinting slightly in bright sunlight outdoors.

By Hosea Shishiveni

For generations, Namibia’s economic story has been told through the language of extraction. Our diamonds have dazzled global markets, our uranium has powered international industries, and recent offshore oil discoveries in the Orange Basin have created hopes of future prosperity.

When Namibia speaks about wealth, attention naturally turns to what lies beneath the soil or beneath the ocean.

Yet one of the country’s most powerful economic engines is hiding in plain sight: the Fast-Moving Consumer Goods (FMCG) industry.

The real wealth of this sector is not buried underground. It is found in supermarkets, warehouses, factories, distribution centres, and transport networks that supply the daily needs of millions of Namibians.

Every day, billions of dollars circulate through the FMCG value chain as food, beverages, household products, and essential goods move from manufacturers to distributors, retailers, and consumers.

Unlike extractive industries that depend on global commodity cycles, FMCG generates continuous economic activity because people must consume essential goods regardless of economic conditions.

This raises a fundamental question: if the FMCG industry creates such enormous wealth, why do many workers within the sector continue to struggle financially?

Retail workers, cashiers, shelf packers, warehouse employees, drivers, merchandisers, cleaners, and general labourers are the foundation of this industry.

They ensure that products are manufactured, transported, stocked, and made available to consumers. Without their labour, the entire supply chain would collapse.

However, many employees argue that the economic value they create is not reflected in their salaries, benefits, and working conditions.

The FMCG sector includes some of Namibia’s largest retailers, manufacturers, wholesalers, distributors, and logistics companies. Some employers deserve recognition for providing competitive salaries, pension schemes, medical aid, housing and transport allowances, bonuses, and career development opportunities.

However, these standards are not consistent across the industry.

Many workers continue to raise concerns about low wages, limited benefits, and difficult working conditions despite operating within highly profitable businesses. This creates an uncomfortable question: where does the wealth generated by this industry go, and how much of it reaches the workers who create it?

Another concern relates to career advancement and representation. Namibia’s employment equity framework was established to promote fair participation and opportunities for previously disadvantaged Namibians. Yet questions remain about whether leadership structures, remuneration levels, and promotion opportunities within some companies truly reflect the country’s demographic realities.

These concerns require proper investigation based on evidence, not assumptions.

The role of Black Economic Empowerment (BEE) within the FMCG sector also deserves closer examination. Economic empowerment was created to expand ownership, participation, and opportunities for historically disadvantaged Namibians. However, critics have raised concerns that empowerment initiatives in some sectors may benefit a limited group of individuals rather than creating broad-based economic inclusion.

The solution is not to attack private enterprise but to demand transparency, accountability, and inclusive growth.

Government must therefore treat FMCG as a strategic economic sector deserving the same attention given to mining, energy, and other industries. A profitable business environment and fair treatment of workers are not opposing goals. Sustainable businesses depend on motivated, respected, and fairly compensated employees.

To understand the true state of the industry, Namibia requires a comprehensive national study on FMCG employment, ownership, wages, benefits, compliance, and economic contribution.

Such research should involve institutions such as the Namibia University of Science and Technology (NUST), the University of Namibia (UNAM), the International University of Management (IUM), the Namibia Statistics Agency (NSA), NIPAM, the Ministry of Industries and Trade, the Ministry of Justice and Labour Relations, and the Namibia Revenue Agency (NamRA).

The purpose should be to collect factual data on remuneration disparities, employment equity, labour practices, tax compliance, pension contributions, and workers’ welfare. Only through credible information can government introduce policies that balance business growth with social justice.

Government must also strengthen local participation within the FMCG value chain. Institutions such as the Agricultural Marketing and Trade Agency (AMTA) must become more competitive and effective in supporting local producers, increasing local supply, and ensuring Namibian businesses can compete within the retail environment.

However, the most important issue remains the protection of workers’ rights.

Many employees in the FMCG, transport, and logistics sectors remain hesitant to join trade unions because of fears of victimisation, discrimination, or career consequences. A workplace where employees are afraid to exercise their constitutional rights cannot achieve genuine social justice.

Namibia’s constitutional commitment to freedom of association must translate into practical workplace realities. Stronger enforcement against anti-union discrimination, effective labour inspections, and compliance with labour laws are essential.

The Ministry of Justice and Labour Relations must establish a bill that mandates “Unionization by Default.”

Just as Social Security (SSC) deductions are automatic at the point of inception, union membership should be an automatic right. When an employee joins a company in the FMCG sector, they should be registered through a union that holds a majority agreement with that firm by default. This is the only way to eliminate the climate of intimidation

Independent trade unions such as the Namibia Food and Allied Workers Union (NAFAU) and other recognised worker organisations such as Namibian Revolutionary Transport and Manufacturing Union (NARETU), play an important role in ensuring that employees have a collective voice. Through constructive engagement with employers and government, trade unions can contribute to fair bargaining, improved working conditions, and stronger labour relations.

President Netumbo Nandi-Ndaitwah has emphasised inclusive economic growth and improving the livelihoods of ordinary Namibians. That vision cannot be achieved if economic success benefits only shareholders and executives while workers who sustain industries remain trapped in financial hardship.

Namibia’s wealth is not only found in diamonds, uranium, gold, zinc, or future oil production. It is also created daily by the workers who manufacture goods, drive trucks, manage warehouses, stock shelves, and keep the country’s supply chains functioning.

The invisible gold mine is the FMCG industry.

The challenge before Namibia is not only to celebrate the profits generated by this sector, but to ensure that those who create this wealth also share in its success. A prosperous industry must be measured not only by the size of its profits, but by the dignity, security, and opportunities it provides to its workers.

Hosea Shishiveni is a scholar and thought-leader. He can be reached at hoseasn8@gmail.com

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