An Investigation Into the Growth and Internationalization Potential of Namibian Wine

An Investigation Into the Growth and Internationalization Potential of Namibian Wine

Wilfred Amazing Isak April, Leo Paul Dana, Daniel Ileni Itenge
Copyright: © 2023 |Pages: 26
DOI: 10.4018/978-1-6684-7578-2.ch003
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Abstract

Namibian wine or the production thereof is not widely known and. although it is found on the shelves of a few local retailers and some restaurants consumption, is relatively low. There is relatively little evidence on the level of cooperation and competition among the Namibian wine makers, as there is diminutive or no clear evidence of clusters. This chapter examines the growth potential of Namibian wine in local markets and the potential to access lucrative foreign markets. It also aims to investigate the level of cooperation and competition among the Namibian wine makers, which is a great factor in ensuring the promotion and internationalisation of Namibian wine. The purpose of this study is to establish the presence and volume of Namibian wines on shelves of local retailers and international markets and to investigate and present strategies that Namibian wine makers can implement. Data were collected through the use of a questionnaire with the Erongo Mountain Winery in order to understand the drivers and barriers to internationalisation of their businesses.
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Introduction

The maturity of a cluster and developing competitive advantage through the unity of its firms and institutions is perilous to the prosperity and long-term success of many firms in rural agricultural communities. There are no specific activities that can be duplicated across clusters to achieve effective cluster behaviours. Researchers stipulated that understanding the dynamics between the stakeholders and how competitive and cooperative behaviours can be encouraged or discouraged will provide great insights and value to new emerging clusters. Many clusters find themselves at a crossroads with new challenges. Looking at wine firms in relation to firms which were born as global and their entrepreneurs, many qualities such as innovativeness, risk propensity and pro-activeness are relatable traits and this is especially prominent in the high-tech industry (Chandra et al., 2009).

Vineyards in Namibia were first planted by German Roman Catholic priests at the end of the nineteenth 19th century in the capital city, Windhoek. They produced wine until the late 1960s when the last wine-maker died. After Namibia's independence in 1990, several small-scale plantations for table grapes and winemaking took place in the southern part of the country and were later expanded to central regions. The dryness of Namibian land makes it difficult to sustain plantations, hence irrigation is usually necessary. To date, there are several documented vineyards in Namibia, producing wine, but in small quantities. Although the production of wine is expanding in Namibia, the grapes grown in the country are mostly destined for use as table grapes for export to Europe rather than for wine production (P. Erwee, personal communication, 15 October 2022).

Geography

Located in the southwestern corner of Africa along the Atlantic Ocean, the history of the Republic of Namibia is shaped by struggles, due to its abundant natural resources such as diamonds, fisheries and agricultural fertile soil in some of the country’s 14 regions. The Republic of Namibia borders Angola, South Africa, Zimbabwe and Botswana. The country was ruled as the tenth (10th) province, under the South African apartheid era till 21st March 1990 (April 2009). The next section of this chapter looks at a historical overview of Namibia.

Historical Overview

Namibia has a very burdensome colonial past and a very strong history of colonial injustices. These injustices are deeply rooted in the South African apartheid era of colonialism. The country was divided amongst racial line/segregation, which is still evident today and numerous people lost their lives during the time of wars. The economic and social value of the country has been destroyed during this process. As Namibia was placed under the South African government opportunities for investment were very limited in Namibia and most of the global players in the market had little or no interest (these are countries such as the United Kingdom and the United States of America). Since its independence, the nation was able to open its doors to the global communities of business, although it still relies on neighbouring South Africa.

Politics and Inequality in Namibia

As confirmed in various studies Namibia has one of the highest degrees of inequality in the world. When we look at income inequality, we use the Gini coefficient as a common estimator. Shortly after its independence, the Gini coefficient of Namibia was 0.61 in 1993/94. It was however noted that there was a slight decrease to 0.60 from 2003/04, and given the sample size it was indeed hard to justify that there was a decrease at all (Schmidt, 2009).

Since its emergence from apartheid rule under its founding President Dr Sam Shafishuna Nujoma, a new constitution was created with a developmental agenda for the nation. Furthermore, democracy thirty-two (32) years to date the Namibian economy is faced with numerous challenges, and perceptions of corruption and nepotism, where the rich get richer and the poor are even worse off than they were before independence. Numerous opportunities were created so that the majority of the blacks and minorities can have access to resources they were unable to have before independence, however, the population seems to be left in despair (Schmidt, 2009).

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