Home-grown products have gained considerable significance in Nepal as the nation continues to explore opportunities for self-sufficiency and economic independence. In a market where imports have historically dominated, the promotion of local goods is not just a matter of pride but a strategic move to reduce dependency on foreign products and bolster the nation’s economy. Home-grown products encompass a wide range of items, from agricultural produce to handicrafts, textiles and manufactured goods, all produced within the country’s borders. The importance of these products lies in their ability to invigorate local industries, generate employment, and contribute to overall economic growth. One of the primary drivers behind the emphasis on home-grown products is the need to address the imbalance in Nepal’s Balance of Payments. The country’s substantial trade deficit is primarily attributed to the import-driven nature of its economy.
By nurturing and promoting local industries, Nepal can reduce the outflow of foreign currency and strengthen its financial position. Additionally, home-grown products often hold unique cultural and environmental value. They are a reflection of the nation’s rich traditions and heritage, fostering a sense of identity and preserving cultural diversity. Moreover, the growth of these products translates to improved livelihoods for local communities, as it generates employment opportunities in both rural and urban areas. Consequently, the significance of home-grown products extends beyond economic considerations to encompass cultural preservation and community well-being, making them an integral part of Nepal’s journey towards self-reliance and sustainability.
In terms of government policy in Nepal, there have been notable developments aimed at promoting and prioritising home-grown products in Nepal. One such policy introduced is the awarding of bids to home-grown product-based companies, even if their costs exceed that of competing foreign products by up to 15%. This policy shift reflects a commitment to bolster domestic industries and reduce the dependency on imports. Further, the government is actively considering a new policy that would extend this threshold to 20%, signaling a more significant dedication to supporting local businesses. In addition to these cost-related policies, the government has also expressed a positive inclination towards the concept of establishing a dedicated website exclusively featuring domestic products. This digital platform would serve as a central hub for consumers to discover and purchase locally-produced goods. However, the government is currently grappling with the challenge of determining the ideal approach to implement this idea effectively.
Home-grown products, though often more sustainable and supportive of domestic employment, can struggle to compete in a market that heavily favours imported goods. Addressing this issue requires a concerted effort to reduce import dependency and create a more balanced trade environment. Additionally, in Nepal, these businesses encounter several formidable challenges. Foremost among these is the pervasive lack of visibility, which often hinders their ability to compete with established imported brands due to limited marketing resources. Maintaining consistent quality and adhering to international standards also presents an ongoing challenge. The absence of effective distribution networks further compounds these issues, making it difficult for local products to reach a broader consumer base. Moreover, the perceived value of imported products frequently surpasses that of their domestic counterparts, creating a consumer preference for foreign goods, despite the economic benefits of supporting local industries.
Within the landscape of home-grown brands in Nepal, there are notable success stories that offer valuable insights into achieving growth and sustainability. These thriving businesses owe their success to a combination of factors. Innovation stands out as a driving force while quality assurance plays a pivotal role. Successful brands invest in robust marketing and branding strategies to build a strong presence in the market and connect with their target audience effectively. These brands also engage with local communities and cultivate a loyal customer base which has been instrumental in their growth and resilience.
Women play a strong role in leading the domestic goods business. In this edition of Business 360, we specifically spoke to four women entrepreneurs about the importance of home-grown products. Here is what they had to say:
Aayusha Shrestha
Founder, AAMO by Aayusha Shrestha
What inspired you to start a business focused on home-grown products, and how does it align with your personal values and vision for the future?
I was inspired to start a business focused on home-grown products because of my deep connection to Nepal and a strong alignment with my personal values and vision for the future. Having spent nearly half of my life studying and living outside of Nepal, I had developed a profound sentimental attachment to products made in Nepal. However, upon returning to my homeland, I noticed a concerning trend – a lack of growth in terms of design and quality in the products available for locals. The market seemed to be inundated with low-quality imported goods, while the truly exceptional products were primarily being exported. As I reacquainted myself with Nepal, I began to immerse myself in our incredibly rich and diverse crafts. I couldn’t help but realise just how underappreciated and undervalued our skilled artisans were within our own country.
This neglect had dire consequences, with many artisans no longer passing down their precious skills to the next generation due to inconsistent incomes. It was clear that unless something changed, these generational skills would eventually fade away. My background as a Graphic Design major at Kathmandu University gave me a unique perspective on how to harness our traditional skill sets to create contemporary designs. I saw the opportunity to not only preserve our cultural heritage but also address pressing issues like fair pay for artisans and unemployment. I envisioned a way to offer consumers authentic, handmade Nepali products. In a developing nation like ours, home-grown brands play a crucial role in contributing to the economy.
This realisation fuelled my determination to establish ‘AAMO by Aayusha Shrestha’ with a clear vision. Our mission was to understand, document, preserve and promote traditional skill sets within our country and, eventually, worldwide. The brand was not just a business endeavour; it was an extension of what I practice and deeply believe in. Our approach at AAMO by Aayusha Shrestha is distinct. We produce only limited quantities of each design to ensure exclusivity and uniqueness. We’re committed to sustainability and minimise waste and environmental impact by incorporating recycled and upcycled materials into our products.
I don’t let passing trends dictate our production; instead, I design and create pieces that resonate with my values and vision for authentic, timeless and sustainable Nepali craftsmanship. Furthermore, we offer repair services for our products, allowing consumers to fully utilise and cherish what they’ve invested in. This holistic approach reflects not only my passion for preserving our heritage but also my dedication to environmental responsibility and ethical business practices. AAMO by Aayusha Shrestha is not just a business; it’s a manifestation of my deep love for Nepal, my commitment to preserving our cultural heritage, and my vision for a more sustainable and inclusive future for our artisans and consumers alike.
What challenges did you face when launching your business?
Launching came with its fair share of challenges, but I believe that overcoming them was an essential part of my journey. One of the first hurdles I had to tackle was gender bias. Even before I could bring my designs to life, I faced reluctance from artisans who had never worked with women designers or business owners. It was a matter of breaking through preconceived notions and stereotypes. It took a considerable amount of patience and time for us to establish a mutual understanding and reach a middle ground.
Once I was able to get started, new challenges emerged, primarily in the areas of marketing and creating a brand image. At that time, social media was just gaining momentum, and there were no other brands doing precisely what I was doing. This unique positioning certainly helped AAMO by Aayusha Shrestha stand out in the market. To further build our brand recognition, I ensured the consistent use of my logo and brand colours. Additionally, I focused on developing specific photography and graphic styles that would be instantly associated with our brand. These efforts helped in creating a strong, recognisable brand identity.
Another significant challenge was the price point. Many potential clients had the notion that products made in Nepal should be inherently cheap or, at the very least, more affordable. To address this misconception, I embarked on a mission to educate and inform our audience. I shared detailed narratives about the inspirations behind each design, offering a glimpse into the creative process. Through photos and videos on our social media platforms, I provided a transparent view of the work that went into each piece.
I made sure to be readily available to answer any and all questions thoroughly. This approach allowed potential customers to understand and appreciate the value we were striving to create. By offering insights into the craftsmanship, dedication, and artistry behind our products, I was able to shift perceptions and demonstrate that quality and authenticity should be recognised and valued, even if the products were made in Nepal. The journey of launching my product was not without its share of challenges, from breaking gender biases to educating potential customers about the true worth of our products. However, by persistently working to overcome these obstacles, I was able to build a brand that stands for quality, authenticity and innovation in the field of Nepali craftsmanship.
Can you share some key strategies you have used to ensure consistent quality and innovation in your products?
Ensuring consistent quality and innovation in our products has been a fundamental part of our mission. Several key strategies have allowed us to stand out from imported alternatives. First and foremost, being a homegrown brand already sets us apart from imported brands. This is because we have a much better awareness of the local market and the unique needs of our local consumers. We are deeply connected to the community, which allows us to not only understand but also cater to their specific requirements.
It’s a significant advantage, and local information and feedback play a pivotal role in guiding our product development. This real-time connection with our customers provides us with the opportunity to adapt and respond quickly, ensuring that we offer products that are specific and tailored to our clients. While our local insight is valuable, it’s not the only factor at play. Research is another essential component of our strategy. We invest time and resources into studying global trends, innovative design techniques, and sustainable materials. This research helps us stay at the forefront of the industry and incorporate cutting-edge elements into our products. Dedication is also a cornerstone of our approach.
We are committed to upholding the highest standards of craftsmanship and quality in every product we create. Our team is passionate about what we do, and this passion drives us to continually push the boundaries of creativity and design. It motivates us to go the extra mile to ensure that every piece we produce is a masterpiece. In addition, authenticity is a core value that guides our product development. We believe in staying true to our roots, celebrating our traditional crafts, and showcasing them in a contemporary light.
This blend of tradition and innovation is what sets us apart, as it allows us to offer products that are not just beautiful and functional but also deeply rooted in our culture and heritage. Our key strategies for ensuring consistent quality and innovation are grounded in our local awareness, driven by research and dedication, and guided by our commitment to authenticity. These elements work together to create products that truly stand out from imported alternatives, and they form the foundation of our success.
How have you tackled the issue of distribution and market reach?
Handling distribution and expanding market reach has been a unique journey for me. I have a specific production approach that focuses on limited quantities, and this strategy might make the question of distribution different from the norm. The limited quantity production model I adopt is intentional and fundamental to our brand. By producing in limited quantities, I can maintain exclusivity, ensuring that our products remain distinctive and not overly saturated in the market.
This approach aligns with our commitment to quality and authenticity, as it allows us to dedicate the necessary time and attention to each piece. Because of our limited quantity production, the traditional challenges associated with mass distribution and market reach may not be as relevant. Instead of striving for broad distribution, we target a more niche market of individuals who appreciate the uniqueness and value of our products. This approach creates a sense of exclusivity and allure around our brand. Our marketing efforts are also tailored to this strategy. We emphasise quality over quantity, focusing on building a loyal customer base that values the craftsmanship and authenticity of our products.
In essence, we don’t rely on widespread distribution; instead, we prioritise building a strong, dedicated community of customers who resonate with our values and designs. That being said, even with limited resources, we have harnessed the power of digital platforms and social media to connect with our target audience. These platforms have provided us with the opportunity to reach a broader audience, both locally and internationally, without the need for extensive physical distribution networks.
So, the issue of distribution and market reach is a unique one, given our deliberate focus on limited quantity production. We’ve embraced this strategy as a way to maintain exclusivity, and it has allowed us to cultivate a dedicated customer base that appreciates the quality and authenticity of our products. This approach has allowed us to thrive, even with limited resources typically available to products.
In a market where imported products often enjoy a perception of higher value, how have you managed to position your home-grown brand as a preferred choice among consumers?
Positioning a home-grown brand as a preferred choice among consumers in a market where imported products often enjoy a perception of higher value is undoubtedly a challenge, but it’s a challenge that I have been actively working on. Here’s how I’ve managed to address this:
Imported or international brands are often held in high regard because they’ve already established specific brand images, and consumers tend to resonate with those images. As a startup or small homegrown brand, it can take time to build that level of recognition and trust. To overcome this, I’ve focused on executing a proper brand image with a strong emphasis on quality and consistent products. This is essential for gaining the trust and value of our customers.
Moreover, the power of social media has significantly accelerated the process. In today’s digital age, consumers can connect with and associate themselves with brands much more rapidly. Social media platforms have created a direct channel for interaction and engagement, enabling us to share our brand story, values, and products directly with our audience. This kind of direct connection has allowed consumers to get to know our brand on a more personal level.
Consumers have evolved in their buying habits. They are more open, informed, opinionated and capable of processing the information shared by brands. They actively engage with brands and often become brand advocates. This shift means that consumers are actively involved in positioning brands in the market, not just the brands themselves. It’s no longer just a top-down approach where brands dictate their image; it’s a more dynamic, interactive process.
In conclusion, this change in consumer behaviour has provided an opportunity for homegrown brands like mine to gain a foothold in the market against imported competitors. By leveraging social media and focusing on delivering quality and consistency, we can actively shape our brand’s image and more importantly, allow our customers to become an integral part of our brand’s narrative. This level of engagement and connection is what helps us position ourselves as a preferred choice among consumers, even in a market where imported products often enjoy a higher perceived value.
In terms of government support and policies, what specific areas would you like to see improvements or changes to create a more favourable environment for home-grown businesses?
When it comes to government support and policies, there are several specific areas in which I believe improvements or changes would create a more favourable environment for home-grown businesses like mine. Here are my thoughts on this matter:
Access to Information: One of the most basic and primary forms of support that the government can provide is improved access to information, especially for homegrown small and medium-sized enterprises (SMEs). While Nepal has made significant progress by constitutionally recognising the right to information as a fundamental right, there are still challenges in practice. Many public bodies have not been able to comply with providing transparent and clear information to the public. This lack of access to essential information can hinder the growth and decision-making process for SMEs. Therefore, improving the dissemination of information and ensuring that it reaches those who need it is crucial.
Effective Implementation of Existing Policies: The government has introduced numerous positive policies and regulations aimed at promoting economic growth and development. However, it’s essential to ensure that these policies effectively reach their targeted audience. This often requires hands-on follow-ups and evaluations to see if the policies have directly benefited the intended groups, including SMEs. Effective implementation and monitoring of existing policies can make a substantial difference in creating a favourable environment for home-grown businesses.
SME-Specific Policy Framework: I believe that the government should develop an SME-specific policy framework. This framework should provide a clear and comprehensive guideline for initiating programmes and schemes designed to build and strengthen the capacity of SMEs. It should address the unique challenges faced by small businesses and offer solutions tailored to their needs. Such a framework can encompass various aspects, including fiscal incentives, facilities, quality assurance, infrastructure, and concessions for manufacturing and exporters. These measures should be carefully designed to support and boost the growth of SMEs in the country.
Regulations for a Fair Economy: Lastly, the government should implement regulations that ensure a safe and fair economy for small businesses and consumers alike. It’s essential to prevent SMEs from being disadvantaged or drained by larger corporations and unfair business practices. Creating a level playing field through regulations and policies can encourage fair competition and support the growth of home-grown businesses.
In conclusion, for home-grown businesses like AAMO by Aayusha Shrestha to thrive and contribute to the economy, the government needs to focus on improving access to information, effectively implementing existing policies, creating an SME-specific policy framework, and ensuring a fair and competitive economic environment. These changes can significantly enhance the environment for home-grown businesses and foster a more vibrant entrepreneurial landscape in Nepal.
Monika Shrestha
COO & Co-founder, Grihini Foods Udhyog
What inspired you to start a business focused on home-grown products, and how does it align with your personal values and vision for the future?
My journey with Grihini Foods started from a deeply personal place for me. Witnessing the challenges our mothers faced in their pursuit of financial independence deeply resonated with us. It became clear that empowering women through entrepreneurship was a cause we felt passionately about. Additionally, we had the privilege of firsthand experience in recognising how precious and endangered traditional food crafts, such as pickle-making, had become in the modern world.
This awareness fuelled our desire to preserve cultural heritage while simultaneously uplifting women in our communities. We knew that by establishing a business centred around homemade pickles, we could stay true to time-tested techniques while providing sustainable livelihoods for women in need. Grihini is underpinned by our vision to honour tradition, shine a light on local flavours, and make a meaningful impact at the grassroots level.
We are unwavering in our commitment to using local, sustainable ingredients to reduce our carbon footprint. This not only aligns with our personal values but also reflects our responsibility toward the environment and the communities we serve. We firmly believe that the women pickle-makers are the heart and soul of our extended Grihini family. Their dedication and skills are at the core of what we do, and their empowerment remains central to our mission.
Our dream for Grihini Foods is to serve as a representation of the incredible skills and diversity that exist within our communities. We hope to be an inspiration to other young entrepreneurs, encouraging them to envision what business can look like when purpose takes the lead. By weaving together, the threads of tradition, sustainability and women’s empowerment, we aspire to create not just a successful business but a meaningful legacy that touches lives and fosters positive change in the world.
What challenges did you face when launching your business?
When we initially launched Grihini Foods, we encountered a set of distinct challenges that were pivotal in shaping our journey. One of the foremost hurdles was gaining shelf space with retailers. As a fledgling company, it was quite a task to convince established retailers to take a risk on a new and relatively unknown supplier. To overcome this obstacle, we decided to offer favourable trade terms and demonstrate the strong demand for our products through e-commerce channels. This strategy allowed us to build trust with retailers, showcasing the viability and appeal of our homegrown products.
Another significant challenge we faced was scaling our production. Initially, we had limited capacity for handmade production, primarily due to our focus on empowering women from underprivileged backgrounds who were new to the pickle-making craft. To address this, we embarked on an important initiative: we expanded our workforce by bringing on more women producers. We viewed this as an opportunity not only to increase our production capacity but also to provide livelihoods and valuable skills training to women who needed it the most. This approach not only improved our output but also aligned perfectly with our mission of women’s empowerment through entrepreneurship.
The third major challenge revolved around export regulations and logistics. Navigating the intricate web of licences and export regulations proved to be a formidable task, particularly as a startup. However, we managed to overcome this hurdle by establishing partnerships with chartered accountants, courier companies and export agencies. These collaborations provided us with the necessary expertise and support to efficiently handle the complexities of exporting our products. By relying on the knowledge and experience of these professionals, we were able to ensure compliance with all regulations and streamline our export operations.
In retrospect, these challenges were instrumental in our growth and development as a business. They pushed us to be innovative, resourceful, and persistent. Each obstacle became an opportunity for us to learn and adapt, ultimately strengthening our commitment to our mission and the values that underpin Grihini Foods.
Can you share some key strategies you have used to ensure consistent quality and innovation in your products?
First and foremost, we have chosen to leverage traditional family recipes that have been perfected over generations. Instead of taking shortcuts, we are committed to following these time-tested recipes meticulously. This approach not only guarantees an authentic and consistent taste but also connects our customers with the rich culinary heritage of our region. We firmly believe that this dedication to tradition is a cornerstone of our success.
In addition to traditional recipes, we hand-make our pickles in small batches using natural fermentation processes. This labour-intensive method preserves the texture and flavour nuances that make our products stand out. By avoiding mass production and maintaining the artisanal approach, we ensure that every jar of our pickles carries the same homemade goodness that our customers have come to love. To maintain quality and consistency, we have established centralised facilities for the initial processing of raw materials and for final quality control. This centralised approach acts as a critical checkpoint in our production process, ensuring that our decentralised workforce can create products that consistently meet our high standards. This way, we bridge the gap between traditional craftsmanship and modern production methods.
Empowering our women producers is another key strategy. We provide in-depth training and standardise techniques to ensure that our handmade ethos is retained even as we scale our operations. These women are at the heart of our production, and their skill and dedication are essential in delivering the quality and authenticity that our customers expect. Furthermore, we place a strong emphasis on sourcing the freshest, seasonal ingredients. We’ve carefully selected and cultivated relationships with local farmers to ensure the superior quality of our raw materials. This dedication to quality ingredients is the foundation of our product excellence and is a testament to our commitment to supporting local agriculture.
In terms of innovation, we continuously invest in research and development to create new pickle flavours and products, such as chutneys. This ongoing exploration keeps our offerings fresh, exciting and relevant to changing consumer preferences. We are dedicated to providing our customers with a diverse range of options while staying true to our commitment to authentic and high-quality products. Finally, our focus on sustainable and healthy packaging allows us to maintain control over the entire production process, from ingredients to packaging.
This comprehensive approach ensures that our products not only taste great but are also aligned with our values of sustainability and health consciousness. In conclusion, our success in delivering consistent quality and innovation can be attributed to our unwavering commitment to tradition, handmade craftsmanship, rigorous quality control, empowering our workforce, sourcing the best ingredients, investing in R&D, and maintaining control over every aspect of our production process. These strategies form the foundation of Grihini Foods, setting us apart in a competitive market.
How have you tackled the issue of distribution and market reach?
We have employed a combination of strategic approaches that have proven effective. First and foremost, we have leveraged e-commerce channels extensively to access customers not only locally but also nationally. The online marketplace provides us with a cost-effective and efficient means of reaching a broader customer base. This approach has allowed us to bridge geographical barriers and introduce our products to a much wider audience than traditional brick-and-mortar distribution alone would have permitted.
In addition to e-commerce, we have pursued trade marketing opportunities such as in-store sampling and promotions, with major retailers. This has been instrumental in building awareness about our products among consumers. By establishing a presence on the shelves of well-known retailers, we’ve been able to tap into their customer base and introduce our offerings to a broader demographic. Distributor partnerships in export markets have also played a significant role in expanding our reach. Collaborating with distributors in foreign markets has enabled us to overcome the complexities of international distribution and access new customer segments. This approach has allowed us to tap into the global market and introduce our products to a diverse set of consumers.
Participating in local and international food fairs has been another strategy we’ve embraced. These events provide us with a platform to showcase our products to a wider audience and establish connections with potential distributors and partners. This not only helps us in expanding our reach but also fosters important industry relationships. Furthermore, we’ve harnessed the power of influencer marketing, focusing on food and culture both locally and internationally.
Collaborating with influencers who share our passion for culinary traditions and authentic flavours has helped us to connect with audiences that resonate with our values.
Their endorsement and reach have been instrumental in building our brand and expanding our market reach. Optimising online discoverability has also been a priority. We work closely with e-commerce platforms on listings and promotions to ensure that our products are easily located by potential customers. This strategy has proven effective in capturing the attention of online shoppers and driving sales. Investing in sharp, culturally-relevant branding and packaging has been the cornerstone of our premium shelf presence.
Our products not only taste authentic but also carry a distinct visual identity that resonates with our target audience. This branding strategy not only sets us apart on the shelf but also tells a compelling story that customers can connect with. In conclusion, addressing distribution and market reach with limited resources has been a multifaceted endeavour, encompassing e-commerce, trade marketing, distributor partnerships, participation in food fairs, influencer marketing, online optimisation, and strategic branding. These approaches, when combined, have allowed us to effectively overcome resource limitations and expand our market presence.
In a market where imported products often enjoy a perception of higher value, how have you managed to position your home-grown brand as a preferred choice among consumers?
We have employed several key strategies that have proven effective in building our brand’s reputation and changing consumer perceptions. One of our primary strategies has been to promote our authentic artisanal production methods and the use of family recipes that have been passed down through generations. By emphasising the cultural credibility and heritage of our products, we’ve successfully positioned ourselves as guardians of tradition. This not only sets us apart but also resonates with consumers who value authenticity.
Investing in premium packaging and design that rivals imported products has been pivotal in reinforcing quality perceptions. We wanted our packaging to communicate the quality and care that goes into our products, creating a visual identity that matches the excellence of our offerings. Sampling programmes have played a significant role in challenging preconceived notions. Allowing customers to taste the superior flavour of our pickles themselves has been an eye-opening experience for many. It’s a direct way to confront assumptions and demonstrate the exceptional taste and quality of our products.
Targeted digital marketing has been instrumental in showcasing our local heritage and ethical practices. By appealing to national pride and highlighting our commitment to sustainable and ethical production, we’ve connected with consumers who share these values and who appreciate the importance of supporting local businesses. Consistently participating in gourmet food fairs has helped us build credibility within the industry. These events have provided us with a platform to interact with discerning consumers, food enthusiasts, and industry professionals who recognise and appreciate the distinctiveness of our brand.
One of our most effective strategies has been to promote the stories of our women producers. This personal touch humanises our brand, and by sharing the inspiring journeys and dedication of these women, we’ve managed to create a deep emotional connection with our customers. This connection goes beyond the product itself and fosters loyalty and advocacy. We’ve also adopted a competitive pricing strategy against imports by controlling costs while retaining the high quality of our products. This approach makes us accessible to a wider audience while ensuring that consumers don’t have to compromise on quality for affordability.
Investing in research and development to create new flavours that cater to local tastes has been crucial in making our brand relatable. By offering a diverse range of products that resonate with the preferences of our target market, we’ve expanded our appeal and addressed the unique needs of our customers.
Changing consumer perceptions takes time, but by relentlessly communicating our differentiation and demonstrating it through taste and quality, we’ve managed to convert many sceptical customers into vocal brand advocates. Grihini Foods is not just a brand; it’s a testament to the rich culinary heritage, authenticity, and the unwavering commitment to quality that we represent.
In terms of government support and policies, what specific areas would you like to see improvements or changes to create a more favourable environment for home-grown businesses?
When it comes to government support and policies, there are several specific areas where I believe improvements or changes could significantly enhance the environment for home-grown businesses. These adjustments have the potential to foster growth, innovation and sustainability in our sector. First and foremost, relaxing regulations and compliance requirements for small businesses is essential. Reducing red tape is critical to making it easier for startups to stay legally compliant. We’ve encountered challenges in obtaining essential elements such as trademarks and export licences, which can be quite burdensome for businesses at our stage of development. Streamlining these processes would undoubtedly alleviate some of the administrative overhead, allowing us to focus on what we do best – creating quality products.
Providing subsidies, tax breaks and financial incentives targeted specifically towards food manufacturing, agriculture technology, sustainability and social entrepreneurship would be a game-changer. These sectors are often associated with higher initial costs due to the nature of their operations. Government support in the form of incentives would not only encourage more entrepreneurs to venture into these areas but also facilitate sustainable business practices. Access to early-stage grant funding beyond traditional bank lending is another critical need. Grants can be instrumental in helping more entrepreneurs get started, especially when bank loans might be challenging to secure. Encouraging the development of grant programmes aimed at supporting small and medium-sized enterprises would be a significant step forward in empowering budding entrepreneurs.
Export assistance programmes are essential for local brands looking to expand into overseas markets. These programmes could encompass support for market research, licensing, logistics and promotional activities. Entering new markets often presents numerous hurdles and government assistance can help navigate these complexities effectively. This is particularly relevant for businesses like ours, which have ambitions to go global while maintaining the authenticity of our products. Improving the distribution and availability of authentic artisanal products within the national retail and hospitality ecosystems is a critical aspect. Creating platforms that bridge the gap between producers like Grihini Foods and consumers through national retailers and restaurants is key to increasing the reach and visibility of homegrown brands. It can lead to more widespread acceptance and appreciation of local products.
Promoting ‘Made in Nepal’ brands to domestic consumers and enhancing their perceptions is an area where government initiatives can make a significant impact. Often, there is a lack of pride in local goods, which has been a barrier to success for homegrown businesses. Initiatives that emphasise the quality, authenticity and cultural significance of domestic products can help reshape consumer attitudes and boost the domestic market for such brands. Finally, implementing training programmes and community support specifically focused on upskilling women entrepreneurs is vital.
Women entrepreneurs often face unique challenges and providing them with the necessary training, mentorship and resources can empower them to take the lead in various sectors. This, in turn, contributes to the growth of home-grown businesses and the broader economy. In conclusion, by addressing these areas through well-crafted government policies and support initiatives, we can create an environment that is more conducive to the success and growth of home-grown businesses. These changes would not only support individual entrepreneurs but also contribute to the overall economic development and cultural preservation of our region.
Sunnie Joshi
CEO, Nepal Coffee Company
What inspired you to start a business focused on home-grown products, and how does it align with your personal values and vision for the future?
I was truly inspired to start a business focused on home-grown products, particularly in the realm of coffee, due to the remarkable legacy of my father-in-law, Krishna Ghimire. He hails from Gulmi, the place where coffee seeds were first sown in Nepal back in 1938. Over the years, Gulmi has evolved into the second-largest coffee growing district in Nepal. In 1983, my father-in-law embarked on a groundbreaking endeavour by establishing Nepal Coffee Company, which marked the inception of coffee production in Nepal. He set up this pioneering coffee facility in Manigram, Rupandehi. What’s truly remarkable about his journey is that despite the scarcity of coffee farms and coffee farmers in Nepal, he fearlessly embraced the challenge of educating and empowering farmers about the advantages of cultivating coffee.
His dedication led to the establishment of multiple processing facilities in various parts of the country, laying the foundation for Nepal’s coffee industry. In my own journey, in 2015, I found myself in the United States, working as a professor of Mathematics. It was during this time that I began a company dedicated to importing Nepali green coffee beans and roasted coffee into the US. I started selling these products to roasters and retail stores across the country. As I delved deeper into this venture, I swiftly recognised the high global regard and demand for organic Nepali Arabica coffee. This realisation ignited a passion within me, prompting me to make a pivotal decision. I chose to return to Nepal with a clear purpose: to expand and nurture this business.
Today, I am proud to serve as the CEO of this enterprise, steering it towards a brighter future. My personal belief is deeply rooted in the conviction that a vibrant local business ecosystem can be a catalyst for innovation and entrepreneurship. I firmly hold the belief that investing in local businesses and home-grown products is pivotal for propelling our country’s economy forward. This belief is not only the cornerstone of our business but also my personal vision for the future. Our vision for the company is unequivocal: we aspire to create an institution dedicated to providing exceptional quality coffee beans from the Himalayas to the world.
We are committed to promoting sustainable and ethical practices at every juncture of our journey. By doing so, we aim not only to deliver outstanding coffee but also to contribute to the betterment of the communities and environment from which we source our coffee beans. In essence, our business is a testament to the enduring legacy of my father-in-law’s pioneering spirit and a testament to the belief that by nurturing local businesses and championing home-grown products, we can create a positive impact that resonates far beyond our borders.
What were the initial challenges of launching this business?
Launching our product in the early days was an ambitious undertaking and it came with its fair share of challenges. You see, when we first set out on this journey in 1983, the concept of coffee consumption was quite nascent in Nepal. The majority of the coffee we painstakingly collected was destined for export to different countries. That’s the backdrop against which we embarked on a mission to introduce and popularise coffee in Nepal. We decided to take the bold step of creating Nepal’s very first roasted coffee brand, which we affectionately named Necco, a shortened form of Nepal Coffee Company. This was a pivotal moment for us, but it came with its unique set of challenges. The foremost challenge we faced was the need to not just market our product, but to do so in a way that made it stand out amidst the limited coffee landscape in Nepal at that time. It was about breaking new ground and sparking an interest in coffee that was, until then, largely foreign to our local customers.
This necessitated innovative marketing strategies, from branding to promotions, that could capture the imagination of the Nepali audience. However, the challenges didn’t end there. We also had to address the fact that coffee culture, particularly in terms of home brewing, was in its infancy. Educating our local customers on how to properly brew and enjoy coffee was a fundamental component of our strategy. We wanted to demystify the process, making it accessible and enjoyable for everyone. This required a combination of outreach, training and a deep commitment to fostering a coffee culture within Nepal. Fast forward to today, and the landscape has dramatically transformed.
It’s heartening to witness the evolution. Most of the coffee we produce and collect is now consumed locally, signifying a significant shift in the coffee culture of Nepal. Moreover, we’ve witnessed an ever-increasing demand for Nepali coffee, both within our borders and on the global stage. This transformation, from a humble beginning to a thriving coffee industry, is a testament to our perseverance and the growing appreciation for the exceptional coffee we produce in Nepal. Thus, our journey has been marked by challenges that we overcame through innovation, dedication and a relentless belief in the potential of Nepali coffee. It’s a journey that has not only paved the way for our success but has also contributed to the burgeoning popularity of coffee in our beloved nation. It’s a story of resilience, growth and the power of introducing something new and exciting to a receptive audience.
Can you share some key strategies you have used to ensure consistent quality and innovation in your products?
As Nepal’s pioneering coffee company with a rich history spanning over 40 years, we’ve dedicated ourselves to establishing a brand that epitomises trust and unwavering quality. Maintaining this commitment to excellence has been at the core of our strategy, allowing us to consistently deliver top-tier products that set us apart from imported alternatives. One of our primary strategies for ensuring the utmost consistency in quality revolves around the implementation of rigorous benchmarks and stringent quality control policies at every stage of production. This meticulous approach covers a range of aspects that are pivotal to our success.
To begin with, we place a significant emphasis on empowering our coffee producers. We believe that quality begins at the source, and thus, we provide extensive training, capacity building campaigns, and technical support to our producers. This ensures that they have the knowledge, tools and skills required to cultivate coffee beans that meet our exacting standards. In doing so, we not only guarantee quality but also support local communities in their journey to becoming skilled coffee producers. Moreover, our commitment to quality extends to our farming practices. We strictly adhere to organic farming methods, which are monitored and certified by the USDA organic certification. This certification is a testament to our dedication to sustainable and environmentally-friendly farming.
It not only reflects our commitment to delivering high-quality coffee but also reinforces our responsibility toward the planet. In the critical phase of evaluating coffee beans, we conduct cupping sessions for every new batch we receive. These sessions serve as an indispensable quality check, ensuring that our coffee consistently maintains its distinctive flavour and aroma. By rigorously tasting and assessing each batch, we’re able to catch any deviations from our standards and make the necessary adjustments.
Another key element of our strategy involves roasting our coffee beans in small batches. This approach is pivotal in preserving the freshness, aroma and flavour of our coffee. Small-batch roasting allows us to have meticulous control over the roasting process, ensuring that every batch is roasted to perfection. It’s this attention to detail that results in the exceptional taste and quality of our coffee. In essence, our strategies for ensuring consistent quality and innovation in our products are deeply embedded in our commitment to quality, sustainability and the empowerment of our producers. We believe that by adhering to these principles, we not only set our products apart from imported alternatives but also contribute to the growth and success of Nepal’s coffee industry.
How have you tackled the issue of distribution and market reach?
Navigating the challenges of distribution and expanding our market reach, especially when resources are often limited, has been a significant part of our journey. Here’s how we’ve tackled these issues:
Market Research for Targeted Marketing: To make the most of our limited resources, our team has conducted thorough market research. Understanding the needs and preferences of our target audience has been instrumental in tailoring our marketing efforts effectively. We’ve developed specific product lines for different customer segments. For example, our brand Necco caters to the preferences of cafes and hotels across the country, while Belizi is designed to appeal to retailers and local consumers.
Building a Strong Online Presence: Establishing a robust online presence has been a game-changer for us. Through our website and various social media platforms, we’ve been able to reach a broad and diverse audience. This online presence not only connects us with potential customers throughout Nepal but also engages us with a global clientele. It’s a cost-effective means of extending our market reach and engaging with coffee enthusiasts from all around the world.
Retail Partnerships: We’ve strategically partnered with key retail chains in Nepal, such as Bhat Bhateni Supermarket and Salesberry. These partnerships make our products locally accessible to a wide customer base. Additionally, our products are readily available on most e-commerce platforms like Daraz and Gyapu, making it convenient for customers to purchase our coffee online.
Global Expansion: Despite our humble beginnings, we’ve managed to expand our reach globally. Through an expansive network, we export our products to several countries, including Japan, South Korea, Australia, Sweden, Switzerland and the United States. This international reach not only allows us to introduce Nepali coffee to new markets but also generates revenue that supports our growth initiatives back home.
Networking and Industry Engagement: As the CEO of the company, I dedicate a substantial portion of my time to networking and building relationships within the coffee industry. Attending coffee expos and conventions worldwide has been instrumental in forging connections with other entrepreneurs, exploring new opportunities and staying updated with industry trends.
Supporting Local Initiatives: To promote local products and align with the ‘Swadeshi’ campaign, an initiative by Confederation of Nepalese Industries (CNI), our company actively participates. This involvement allows us to contribute to the growth of Nepali products and connect with a wider audience who value locally-made goods.
Participation in Local Events: We also actively participate in local trade shows and events. These platforms provide us with an opportunity to showcase our products and engage directly with potential customers within Nepal. Such events have been invaluable in building brand awareness and loyalty within our home market.
In essence, our strategy for tackling distribution and expanding market reach revolves around a combination of targeted marketing, a strong online presence, strategic partnerships, global expansion, networking and active participation in local initiatives and events. While resources may be limited, our determination and innovative approaches have allowed us to carve out a niche in the competitive coffee industry.
In a market where imported products often enjoy a perception of higher value, how have you managed to position your home-grown brand as a preferred choice among consumers?
Positioning a local home-grown brand in a market that predominantly favours imported products indeed presents its set of challenges. However, we’ve devised a strategy that’s enabled us to carve out a distinctive space for our brand in this landscape. Here’s how we’ve managed to do it:
Leveraging Our Unique Story and Local Roots: Being the oldest coffee company in Nepal, we’ve leveraged our rich history and authenticity to promote our products. We’ve found that consumers are increasingly valuing the unique story and local roots behind products. By highlighting our heritage, we emphasise our deep connection to the local culture and our commitment to Nepal’s coffee industry. This strategy allows us to stand out and resonate with consumers who appreciate the story behind the brand.
Commitment to Exceptional Quality: Quality is paramount in our approach. We ensure that our coffee meets the highest standards in terms of flavour, aroma and overall quality. In a market where imported products are often perceived as having a higher value, we’ve positioned our brand as a standard-bearer for quality. This focus on delivering exceptional quality has helped us build trust and loyalty among our customers.
Comparative Advantages of Nepali Coffee: Nepali coffee possesses inherent advantages. It’s known for its high quality, unique aroma and distinctive taste. Furthermore, it tends to be more cost-effective compared to many imported brands. We’ve capitalised on these strengths, positioning Nepali coffee as not just a local choice but a choice that offers a superior coffee experience at a competitive price point. This comparative advantage has been pivotal in winning over consumers.
Educating Customers on the Benefits of Buying Local: Whenever possible, we’ve made efforts to educate our customers on the broader benefits of buying local products. This includes how it creates jobs and strengthens the local economy. By raising awareness about the positive impact of supporting local businesses, we’ve encouraged a sense of community and pride among our customer base. This, in turn, has helped position our brand as a preferred choice among consumers who want to contribute to the growth of the local economy.
In summary, our strategy for positioning our home-grown brand involves highlighting our unique story, emphasising our commitment to quality, capitalising on the comparative advantages of Nepali coffee, and educating our customers on the broader benefits of buying local. Through these efforts, we’ve been able to not only differentiate ourselves but also resonate with consumers who are increasingly valuing authenticity and the positive impact of their choices on the local community.
In terms of government support and policies, what specific areas would you like to see improvements or changes to create a more favourable environment for home-grown businesses?
Creating a favourable environment for home-grown businesses is a multifaceted endeavour, and it’s crucial to address a range of areas to truly empower local businesses and entrepreneurs. From my perspective, there are several key areas where I believe improvements or changes in government support and policies would significantly benefit home-grown businesses:
Engagement and Collaboration: Policymakers should actively engage with business leaders, entrepreneurs and local communities. This collaborative approach is essential for developing and refining strategies that genuinely support the growth and sustainability of local businesses. By involving those who are on the front lines of the local economy, policies can be tailored to address the unique needs and strengths of each region.
Access to Capital: One of the most pressing needs for small home-grown businesses is access to capital. The government can play a pivotal role in providing easier access to affordable financing options, whether through low-interest loans, grants or venture capital. This support is critical for enabling businesses to expand, innovate and create jobs.
Tax Credits and Incentives: Implementing tax credits and incentives specifically designed for local businesses can be a game-changer. These measures can help reduce the financial burden on home-grown businesses and encourage them to invest, expand and hire more employees. Tax incentives for research and development, job creation and green initiatives can be particularly impactful.
Promoting Local Industries: For the coffee industry, and agriculture in general, there should be a focus on increasing production to meet the exponentially growing demand. Government policies can support this by offering incentives for farmers to cultivate coffee. This can include land leasing policies that make it more accessible for farmers to grow coffee instead of traditional crops like rice and wheat. Promoting the benefits of coffee cultivation through awareness campaigns can also encourage more farmers to consider this lucrative option.
Technical and Financial Support: Small-scale coffee producers, in particular, can benefit from financial and technical support. Government programmes can offer training, resources and funding to enhance the capabilities of local coffee producers. By strengthening the skills and knowledge of these producers, we can improve the quality and quantity of locally grown coffee, making it more competitive in both domestic and international markets.
The government plays a crucial role in fostering a thriving ecosystem for home-grown businesses. By prioritising access to capital, offering tax incentives, promoting local industries and providing essential support to small businesses, policymakers can create an environment that encourages entrepreneurship, innovation, and job creation. This, in turn, benefits not only local businesses but also the broader economy. It’s my hope that policymakers will continue to work closely with the business community to develop and refine these strategies, ultimately creating a more favourable environment for home-grown businesses to flourish.
Vidushi Rana
Executive Director, Kiran Shoes Manufacturers
What inspired you to start a business focused on home-grown products, and how does it align with your personal values and vision for the future?
I was deeply inspired to embark on the journey of running a business focused on home-grown products, and this inspiration stems from the remarkable legacy of Goldstar, a family business initiated by my late father-in-law, Noor Pratap JB Rana. He was a visionary and a true entrepreneur, and witnessing his dedication and passion for this venture left an indelible mark on me. Goldstar shoes, which commenced nearly four decades ago, is more than just a business for us; it’s a legacy that we are committed to preserving and expanding. This legacy, handed down through generations, serves as a constant reminder of the immense potential and untapped opportunities within the business.
It was this legacy that called me to join forces with my husband, Amir Pratap JB Rana, in steering Goldstar towards a brighter future. With my background in marketing and branding, I recognised a unique opportunity to contribute to Goldstar’s growth by enhancing our brand presence and marketing efforts. I felt that my skills in these areas could breathe new life into the business, helping it reach new heights and connect with a broader audience. Despite the footwear industry traditionally being seen as a male-dominated field, I was determined to bring my knowledge and expertise to the table and prove that gender should never be a barrier to success.
Our journey in this business is deeply intertwined with our personal values of hard work, dedication, passion and dreams. These values are not just words; they are the guiding principles of our lives. We believe in putting our hearts and souls into everything we do, and we are dedicated to realising our vision for Goldstar. Our vision is clear: we aim to have our home-grown products recognised and available on every continent in the world. It’s an ambitious goal but it’s one that drives us every day.
We dream of making Goldstar a globally recognised brand and our journey is a testament to the belief that with determination, anything is possible. Likewise, we are driven by the idea that our products can enrich the lives of people all over the world and this is what keeps us pushing forward, no matter the challenges we face. In conclusion, our commitment to Goldstar and our mission to share our home-grown products with the world is a labour of love. It’s a blend of heritage, passion and the relentless pursuit of our dreams. We want to make Goldstar a household name, and we are determined to see this vision through to the end.
What were some of the initial challenges and how did you overcome them?
Launching a business is a formidable task, and Nepal, like many places, presents its own unique set of challenges. Goldstar has confronted numerous obstacles on our entrepreneurial journey, and each hurdle has been a test of our resilience and determination. Over the years, we’ve encountered a series of significant challenges, some of which would have deterred even the most determined individuals. These challenges include the Maoist insurgency, the devastating earthquake of 2015, an embargo with India, the global upheaval caused by the Covid 19 pandemic, as well as liquidity crunch and recession.
Each of these events had the potential to cripple our business and undermine our efforts. However, our unwavering commitment to core values such as hard work, perseverance and the refusal to give up has been the driving force that enabled us to overcome these adversities. We firmly believe that these values are not just fundamental to our business but are critical for sustaining any enterprise in Nepal, a place where resilience is a prerequisite for success. The Maoist insurgency, for instance, posed significant security and operational challenges. The earthquake in 2015 left a trail of destruction in its wake, causing widespread disruptions and hampering our operations. The embargo with India further strained our supply chain and tested our ability to adapt.
Then came the unexpected and unprecedented challenge of the Covid 19 pandemic, which brought global commerce to a standstill. These challenges not only shook our business but also tested our character and commitment. We’ve had to make difficult decisions, adapt rapidly and innovate to stay afloat during these tumultuous times. While it wasn’t easy, it reinforced our belief in the importance of hard work and resilience. Our dedication to these values has allowed us to navigate these challenges, pivot when necessary, and emerge stronger on the other side.
We have learned that in times of crisis, the ability to persevere and adapt is what sets apart successful businesses from those that falter. Despite the difficulties, we remain resolute in our mission to make Goldstar a global brand and our products accessible worldwide. We understand that challenges are part and parcel of entrepreneurship, and we are better equipped to face them head-on, thanks to the lessons we’ve learned from these past trials. Our journey has not been easy, but it has been deeply rewarding, and we are more committed than ever to our vision of success and growth.
Can you share some key strategies you have used to ensure consistent quality and innovation in your products?
Ensuring consistent quality and innovation in our products has been a cornerstone of our business at Hattichap and Goldstar. We believe that to stand out from imported alternatives, we must uphold certain key strategies that are fundamental to our success.
Affordability: One of our core strategies is to make our products affordable without compromising on quality. We understand the importance of offering value for money to our customers. We strive to strike a balance between quality and cost, ensuring that our products are accessible to a wide range of consumers.
Durability: Durability is non-negotiable when it comes to footwear. To achieve this, we’ve invested in state-of-the-art machinery imported from Italy, renowned for its quality and precision. These machines allow us to create robust and long-lasting soles, ensuring that our shoes can withstand the wear and tear of everyday use.
Comfort: Comfort is a paramount factor in the footwear industry. We are dedicated to providing our customers with shoes that not only look good but feel good too. We invest in materials and design that prioritise comfort, so our customers can wear our products all day without discomfort.
Fashion: Staying in tune with the ever-evolving trends in the footwear fashion world is another critical strategy for us. We understand that fashion is a dynamic industry and to remain competitive, we maintain the largest design cell in the industry. This allows us to hire and collaborate with talented designers and engineers who keep us updated on the latest trends. By constantly innovating our designs and styles, we ensure that our products are always at par with or ahead of the imported alternatives.
Research and Development: Innovation is a cornerstone of our strategy. We recognise the importance of staying ahead of the curve, which is why we invest significantly in research and development. We are continuously on the lookout for new technologies and machines that can enhance our production processes and the quality of our products.
These strategies, including affordability, durability, comfort, fashion and a robust commitment to research and development, have helped us maintain consistent quality and innovation in our products. This commitment is what sets our products apart from imported alternatives. We believe that by focusing on these aspects, we can not only meet but exceed the expectations of our customers, and this is our ultimate goal.
How have you tackled the issue of distribution and market reach?
Tackling the issue of distribution and market reach with limited resources has been a crucial challenge for us. We are deeply committed to making our products accessible to customers across Nepal and we have adopted several strategic approaches to achieve this, despite resource constraints.
Building a Robust Distribution Network: Establishing a significant distribution network has been a cornerstone of our strategy. We’ve diligently worked to cultivate partnerships with numerous wholesalers and retailers across the country. These collaborations have allowed us to reach customers in even the most remote areas, extending our market reach far beyond the major urban centres.
Franchise Stores: To further bolster our market reach, we have invested in opening approximately 80 franchise stores. These stores serve as not only points of sale but also as a means to establish a direct presence in various regions. This strategy has not only increased our accessibility but has also contributed to the local economies by creating employment opportunities in these areas.
Online Platforms: Recognising the significance of the digital era, we’ve actively ventured into selling our products through various e-commerce platforms. This online presence has been instrumental in expanding our reach within Nepal and reaching customers beyond our national borders. It provides a cost-effective way to tap into a broader market and connect with tech-savvy consumers.
Navigating the challenges of limited resources has required us to be highly strategic and creative in our approach. We’ve focused on optimising our distribution processes, minimising overhead costs, and making the most of the resources available to us. Our commitment to expanding our market reach is unwavering and it reflects our belief in the quality and appeal of our products.
We are resolute in our belief that everyone, regardless of their location or economic circumstances, should have access to high-quality, affordable footwear. Our strategic efforts to broaden our distribution network have not only allowed us to reach more customers but have also been pivotal in fulfilling this mission, despite the inherent difficulties posed by limited resources.
In a market where imported products often enjoy a perception of higher value, how have you managed to position your home-grown brand as a preferred choice among consumers?
Navigating the market where imported products often enjoy a perception of higher value has been an intriguing journey for us. I firmly believe that healthy competition keeps us motivated and alert, encouraging us to continually improve our offerings and strategies. However, there’s no denying that the rise of under-invoiced and smuggled shoes in the market poses a significant challenge, especially with the unorganised trade in footwear, where a substantial percentage of products are illicit. This scenario complicates our efforts to sustain our business, as we must contend with unfair competition that threatens the integrity of the market.
To overcome this hurdle, we’ve developed a strategy that revolves around reinforcing our brand’s reputation for quality, durability and affordability. Our commitment to delivering high-quality products remains unwavering. We firmly believe that quality is the bedrock upon which any brand must build its reputation. We’ve invested in machinery imported from Italy, renowned for its precision and reliability, to ensure that our shoes are not only stylish but robust and long-lasting. This focus on durability sets us apart in a market where longevity is often compromised for cost.
Affordability is another key pillar of our strategy. We aim to provide customers with value for their money, ensuring that our products are not only of high quality but also accessible to a wide range of consumers. This approach, we believe, gives us a competitive edge in a market where imported products often come with a higher price tag. Consistency is our guiding principle. We remain dedicated to delivering on the promise of quality, durability and affordability with every product we offer. By doing so, we aim to establish a brand that customers can trust. We want our home-grown brand to be the preferred choice among consumers, not just because it’s locally produced but because it genuinely meets their needs and expectations.
In conclusion, while the challenges posed by the presence of under-invoiced and smuggled products in the market are undeniable, we are confident that our unwavering commitment to quality, durability and affordability will help us stand out and position our home-grown brand as the preferred choice among consumers. We are determined to maintain our integrity and to provide customers with the best value for their money.
In terms of government support and policies, what specific areas would you like to see improvements or changes to create a more favourable environment for home-grown businesses?
I strongly believe that for our country to thrive and progress economically, we must shift our focus towards developing robust industrial and manufacturing sectors. Over-reliance on remittances and trade is not a sustainable long-term strategy. At Goldstar, we’ve witnessed firsthand the positive impact that the manufacturing industry can have on our nation. We currently employ over 3,000 people, and what’s particularly significant is that 70% of our workforce comprises women from marginalised backgrounds.
This not only addresses issues of gender inequality and social inclusion but also underscores the potential for significant employment generation within the manufacturing sector. The footwear industry, in particular, plays a vital role in this regard. Furthermore, the footwear industry contributes to import substitution and export promotion, both of which are crucial for a balanced economic ecosystem. By producing our footwear locally, we reduce our dependency on imported goods, which can drain foreign exchange reserves.
Simultaneously, we export our products, thus bringing foreign currency into the country. To create a more favourable environment for home-grown businesses like ours, several critical areas need attention and improvement:
Subsidies for Employment-Generating Industries: The government should consider providing subsidies to industries that have the potential to generate substantial employment opportunities. This support can help alleviate unemployment and contribute to the overall well-being of the population.
Tackling Illicit Trade: The rampant issue of illegal trade poses a significant challenge to home-grown businesses. Implementing stricter measures and penalties to curb this activity is essential. Addressing illegal trade not only ensures a level playing field for businesses but also bolsters government revenues.
Differentiated Interest Rates: Differentiating interest rates for trading and manufacturing activities is a prudent move. It incentivises investment in manufacturing, as it is a sector that holds great promise for economic growth and job creation.
Special Economic Zones: Creating business-friendly special economic zones can provide a conducive environment for businesses. SEZs offer advantages such as tax incentives, simplified regulatory procedures and infrastructure support that can attract local and foreign investments, further boosting the manufacturing sector.
It is imperative to recognise that manufacturing industries currently represent less than 3% of our economy. To foster a more balanced and self-reliant economy, the government should prioritise and actively support the growth of these industries. This support will not only stimulate economic growth but also contribute to job creation and ultimately lead to a more prosperous and self-sufficient nation. In summary, we need a shift in our economic priorities towards the development of manufacturing and industrial sectors. Government policies and support in the areas of employment subsidies, tackling illegal trade, differentiated interest rates and the establishment of special economic zones can create a more favourable environment for home-grown businesses, foster economic growth and promote self-reliance.
