Africa-Press – Eswatini. “We will be forced to close down!”
These were the words of some commercial business owners who operate around the Mbabane CBD and in nearby areas. Their sentiments are in relation to a development that is currently ongoing at the Industrial Site behind the Sigwaca House Building. While curiosity engulfs passers-by who had in the past weeks watched the construction of the structure progressing, frustration is growing by the day for some of the commercial business owners. The frustration emanates from the fact that they know that the structure will house a business entity that could bring them the toughest competition. The business entity is none other than RUCHI Wholesalers, which is known to sell goods in large quantities or in bulk at wholesale prices.
Even though the directors did not divulge the amount of the investment, it is believed that it is worth millions. The concern by the business owners is not necessarily on the wholesale setting up business in the capital city, but rather the location which is Lot 280/2 and Lot 581/2 Mbabane. In their view, the location of the wholesale business is not ideal within the Mbabane CBD and should alternatively be located elsewhere. The Times SUNDAY has gathered that some of the frustrated business owners have teamed up to discuss the issue as they feel that the zone where the structure is currently being constructed is not ideal. They have agreed in unison that they are strongly objecting the whole development. This publication has seen a letter, which the business owners have crafted detailing how the coming in of the wholesale to set up shop at the Mbabane CBD will affect them.
development
The letter is directed to the Municipal Council of Mbabane acting chief executive officer (CEO). The argument by the aggrieved businesspeople is that the development of a wholesaler of this magnitude within the CBD threatens numerous smaller retail businesses within the city. This, they have claimed, is because the individual buyer will now have access to purchase goods directly from the wholesaler and not see the need to purchase from the smaller businesses. It should be noted that in most parts of the area that is within a two-kilometre radius of where the upcoming wholesale will operate, there are various retail stores which sell almost the same items that RUCHI sells. The stores include supermarkets and bottle stores and the items include basic commodities such as sugar, mealie-meal and cooking oil to name but a few.
Another argument forwarded is that the threat posed by the development in question will contribute to a further decline and deterioration of businesses within Mbabane, leading to further unfavourable economic slump in the commercial vibrancy of the city. Also, an argument has been raised that the development of the wholesaler is in conflict with the users permitted right and consent as provided for in the Light Industrial District Use Regulations (IND), in which the subject property is located. In particular, the aggrieved businesses have claimed that there is no mention of a wholesale being permitted within the zone and, therefore, does not comply with the current Mbabane Town Planning Scheme (2016). Furthermore, the business owners believe that they should have been allowed an opportunity to participate in a forum, where they could state their concerns before construction of the wholesale began. “As the Mbabane business community, we believe that we deserved an opportunity to object as the development required advertising as a public notice to offer a platform to raise concerns at the very least,” one of the retail business owners said.
As if that is not enough, the business owners said they feared that the wholesale will attract large volumes of traffic constituting of smaller and heavier vehicles (trucks), which will add to the current traffic congestions already existing within the CBD area. The pressure, they claimed, is experienced even after the construction of a traffic circle nearby, which will further be compromised following the development. This public visited some of the retail businesses that operate along the industrial site and nearby and most of the owners sounded shocked that RUCHI is coming to the capital city. One of the business owners, who runs a bottle store, said, “This will be a big blow. I charge about E230 for 12 of 750ml of Castle and RUCH might charge only E180, so no one will come here. This is a sign that those of us who operate small businesses are not wanted in Mbabane,” the business owner said.
To ascertain if indeed the issue of prices could cause a headache to the smaller businesses, as per the concern, this reporter visited the RUCH Wholesalers last Friday. As usual, the wholesale was a beehive of activity with cars and customers coming in and out. Some of the customers were buying in bulk, while others in small quantities. As per the prices displayed on the shelves, a 10kg Brown Sugar had a tag of E160, while at retail shops it cost about E180. A 10kg Special Maize Meal was priced at E100, while in some of the retail shops visited by this publication it cost between E120 and E130.
wholesalers
A two-litre of Somi Cooking Oil stood at E63 while in some of the supermarkets that are not far from the upcoming RUCHI structure it is about E75. At the liquor section, beer prices displayed showed that 12 of Castle Lager 750ml cost E172.04, while a Castle Milk Stout stood at E211.76. At some of the bottle stores and small wholesalers operating not far from where the RUCHI structure is coming up, the prices are about E30 more. Following the concerns raised, a questionnaire was sent to the Office of the Municipal Council of Mbabane Acting Chief Executive Officer (CEO Bongani Dlamini. In a response, which came via the Public Information Officer Lucky Tsabedze, the municipality said the development complied with the requirements for light industrial zone. “The council received building plans for this application and a variance was done accordingly. No objections were received from the business community. A variance application to relax setbacks was made by the applicant or developer and no objections were received from surrounding property owners and 21-day notices were placed and no objections were received,” the municipality said.
It mentioned that the council received the application after the 21 days advertising period on May 12, 2023 and processed the application and approval was granted with condition that the developer must ensure that the turning radius for all trucks must be within the property and not on the road reserve. “Currently, light industrial development is along the properties of Sheffield Road and at Sidwashini. So in short, the said development is perfectly zoned.” Regarding the concern that the operations of the wholesale will attract traffic, leading to congestion in the CBD, the municipality said on-site parking has been provided in the designs submitted and the developer will provide parking within the property. This publication also sought a comment from the Eswatini Competition Commission (CompCo) which is an entity that is mandated to apply the competition law and regulations to ensure businesses and companies compete fairly with each other in the marketplace. The CompCo was established in terms of the Competition Act No. 8 of 2007 to regulate competition in the economy by controlling anti-competitive trade practices, mergers and acquisitions, protecting consumer welfare and providing an institutional mechanism for implementing the objectives of the Act and other matters incidental thereto.
competition
Chief Executive Officer Muzi Dlamini said in line with its mandate, the commission expects all businesses to comply with regulations to ensure fair competition. “As long as the proposed new establishment complies with the regulations, the commission is of the view that the development should not present a threat to retailers. Competition encourages companies to become more efficient, which creates a wider choice for consumers and helps reduce prices as well as improve quality of goods and services that these companies offer to the public,” Dlamini said. He mentioned that the commission’s understanding is that RUCHI Wholesalers is a company that operates as a wholesale, which sells goods in large quantities or in bulk at wholesale prices, typically to retailers. In turn, the CEO said, retailers sell these to the general public. “This position is also supported by the Trading Licence Order Regulations, which state in Regulation 80, that a wholesaler shall be entitled to carry out business by selling only to shops and other trade or businesses to be retailed by such shops and other businesses. Regulation 80(e) goes on to state that the holder of a wholesale trading licence shall not be a holder of any licence to trade in retail,” he said.
Regarding the concerns raised, the CEO said the business owners may be justified if there is non-compliance with the regulations. When asked how the issue could be addressed Dlamini said all that was needed was for the respective businesses to comply with these regulations. When the RUCHI directors were sought for comment on the concerns, all they said was that they were doing was expanding business and reinventing in Eswatini, which will also contribute to the growth of the economy. They did, however, confirm that they anticipate that it will start operating in April next year.
Source: times
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