Chinese too cheap

A Chinese national who runs a motor spares shop at Oshakati has come under fire from competitors and politicians, who say his products and services are too cheap.

A comparison of prices at various motors spares shops in Oshakati and Ongwediva shows that QQ Motors charges N$150 for wheel alignment on a sedan and N$200 for a bakkie, while competitors charge between N$270 and N$400, respectively, for the same services.

QQ Motors charges N$50 for its tyre repair service, which cost as much as N$90 at other outlets.

Lin Guo Qi, the owner of QQ Motors, situated in Oshakati's Oshoopala informal area, says Namibians are cash-strapped and should be allowed to buy at places their pockets can afford.

Last week a number of stakeholders complained to Namibian Sun about QQ Motors, which sells spare parts, used and new tyres and provides tyre repair and wheel alignment services.

Most the complainants were entrepreneurs who sell second-hand tyres or do repairs.

They argued that they have lost a number of customers to QQ Motors, because of its cheap prices.

Other detractors, among them politicians, feel that government has failed Namibians, by allowing foreigners to enter industries that local people venture into to take care of their families.

One such local politician, who spoke on condition of anonymity, said it is unacceptable that government allows a foreign-owned business to provide services that locals have been doing for decades.

The source argued this was adding to the country's high unemployment rate and poverty levels.

“The country is already not having money and yet we allow foreigners to make money which they will take with to their country of origin. It is not being xenophobic, but the reality is that Namibians are suffering under the watch of this government, which is allowing these uncalled for things,” he said.

“How will we address national issues such as unemployment and poverty in our country if breadwinners are competing with people from other countries, who come with money to set up businesses and make more money to take back with them?”

When approached for comment, Lin said he does not understand the basis of his detractors arguments, as prices always differ from shop to shop.

He explained he has been in business for two and half months and had opted to keep his prices low in order to establish a client base.

He also confirmed he gets his products from China at cheaper prices.

Lin further questioned why people should complain about his prices, if the Namibian government had allowed him to register his business in 2013.

“I am here to do business. If others are charging their customers higher that is not my concern. I am in Namibia to help those that cannot afford the high prices.”

Making reference to the state of the Namibian economy, Lin said it is a shame for Namibians to complain about cheap prices when people do not have money.

“For those that want the good brands of tyres I don't have yet, they can go to the shops where they can get them but do not forget that taxi drivers who cannot afford those expensive tyres also need to be catered for and that's where QQ Motors comes in,” he said.

“People should buy where they can afford.”

Namibia Chamber of Commerce and Industry (NCCI) northern branch chairperson, Tomas Iindji, said the issue was never brought to the attention of his office.

“This is news to my office,” Iindji said.

When asked how the NCCI can intervene in the matter, Iindji said he will have to send a team to do a preliminary analysis.

“In terms of the pricing I really cannot comment as I need to send my team do the preliminary analysis and an investigation thereafter. So I would rather not comment at the moment, as I need to be well-informed.”

Iindji, however, said pricing should not be the initial basis of the investigation, but that the bigger picture should be looked at.

“The starting point should be whether we really need that business. We also have to ask if it's owned by locals or foreigners and all those things are part of our investigations.

“We also have to look at the standard as well and by that it means we need to bring in other stakeholders such as the Namibia Competition Commission (NaCC),” Iindji said.

The NaCC was established in terms of the Competition Act 2 of 2003 and regulates competition issues across all sectors of the Namibian economy.

In terms of the Act, the commission is entrusted as the principal institution to promote and safeguard fair competition in Namibia by promoting the efficiency, adaptability and development of the Namibian economy.

KENYA KAMBOWE