Shoprite Local Sourcing Opens Market for Zambian SMEs

 By Alain Kabinda

 Zambian small and medium-sized enterprises (SMEs) have been urged to position themselves to supply major retailers such as Shoprite by improving the quality, consistency and quantity of locally produced goods.

 Business Development and Marketing Expert James Mutungu Chiwala said the growth of locally sourced products in Shoprite stores demonstrates the opportunities available to Zambian businesses under the country’s “Grow Zambia agenda”.

 Mr. Chiwala said Shoprite, which opened its first store on Cairo Road in Lusaka in 1995, has transformed its sourcing model over the years, with local products now accounting for more than 80 percent of goods on its shelves.

He said the retailer initially relied heavily on imported products because many Zambian suppliers were unable to meet the required quality and supply standards.

 According to Mr. Chiwala, the increased presence of Zambian products on Shoprite shelves shows that local businesses can compete with imported products when they develop the capacity to meet commercial standards. 

He says fresh produce provides one of the clearest examples of the growth of local sourcing, with almost all fresh vegetables supplied by local producers, except products that cannot be grown in Zambia or are out of season. 

“Shoprite will not buy because you are Zambian—it buys because you meet quality, quantity and consistency,” Chiwala said. 

He also said, need to move beyond simply producing goods and instead develop reliable systems for production, packaging, quality control and delivery.

 Mr. Chiwala says Shoprite's engagement with local farmers has also contributed to the development of agricultural supply chains. 

He said farmers supplying the retailer have benefited from food-safety training, production planning and technical support from agricultural experts and agronomists. 

Mr. Chiwala cites potato production as an example of how market access can encourage farmers to invest in production and storage. 

He said farmers have been supported to develop storage capacity, enabling them to supply potatoes throughout the year, including during the rainy season. 

He also points to strawberries as an example of import substitution, saying Shoprite has increased its purchases from farmers in Lusaka and on the Copperbelt rather than relying mainly on imports from South Africa. 

“This contributes to the reduction of imported fruits, vegetables, poultry and meat products and strengthens Zambia's agriculture sector,” Chiwala said. 

Mr. Chiwala said SMEs should see large retailers as potential commercial partners but must understand that access to the market comes with strict requirements.

 He further added that businesses need to demonstrate that they can consistently provide the required quantities while maintaining quality and meeting packaging and food-safety standards.

 Mr. Chiwala said a rice cooperative in Western Province could access a major retail market if it develops the capacity to clean, sort, grade and package its rice and maintain year-round supply.

 Mr. Chiwala said the same principle can be applied across agriculture, manufacturing, food processing and other sectors where Zambian businesses have the potential to replace imported products. 

Some Zambian suppliers have been able to access Shoprite stores in other countries, creating opportunities for businesses to expand their markets. 

He argues that businesses should first use the domestic market to develop their production systems, establish quality standards and build a track record before targeting regional and continental markets. 

“Once you master quality in the domestic market, you can export to DRC, SADC and AfCFTA markets,” he said.

He added that increased local procurement also has the potential to generate employment across the economy. 

He said that women and young people are among those benefiting from jobs created by businesses supplying goods and services to major retailers. 

The employment impact, he said, extends beyond companies that sell directly to retailers to include farmers, factory workers, transporters, packaging businesses and other service providers involved in the supply chain.

 He said that strengthening local supply chains can therefore create economic opportunities in both urban and rural areas.

 Mr. Chiwala said stronger local sourcing can contribute to the Grow Zambia agenda by increasing demand for locally produced goods and encouraging investment in value addition.

 He identifies import substitution as one of the potential benefits, arguing that producing more goods locally could reduce demand for foreign exchange.

 He said local production and value addition can also create employment, increase economic activity and generate additional tax revenue that can support public services.

 For SMEs and cooperatives, he said, the opportunity lies in using large retailers as an entry point into formal markets.

 “Government cannot employ everyone,” Chiwala said. 

He argues that sustainable economic growth will require businesses to create jobs and expand production while retailers provide markets for locally produced goods. 

For Zambia's agriculture and manufacturing sectors, the increasing demand for locally sourced products presents an opportunity to build stronger domestic supply chains. 

Mr. Chiwala said that the opportunity will only translate into sustained business growth if SMEs invest in quality, consistency, value addition and the capacity to supply markets throughout the year. 

They should be to move Zambian businesses from supplying local shelves to competing successfully in regional and continental markets