Research Worldwide:

Namibia


20th November, 2009.

The first stage of our Research Wordwide series leads us to Africa. We asked Mr. Cornelius D'Alton, Managing Director of Vision Africa Research Services from Namibia to introduce the characteristics of the market research business in this African country.


Approximately how many market research agencies operate in Namibia?

C.D.: At the moment there are 4 research agencies (ourselves included). Some are more specialized in either qualitative or quantitative research, while the rest are equally adept at providing both qualitative and quantitative services. There are of course other players in the market research industry that work on an ad hoc basis and every once in a while a South African based company might conduct research by itself in Namibia.

What are the main challenges of conducting market research in Namibia?

C.D.: Sampling and distances. Very few foreign clients realize that Namibia has a very small population (about 2 million inhabitants) and they are distributed over a huge country. This means meeting certain sampling requirements requires significant travelling. Another challenge is the lack of participation by more educated and affluent individuals, who are not willing to participate due to lack of trust and some have security issues.

What are the most widely used data collection methods?

C.D.: Data is mainly collected via PAPI, CATI and CAPI. All three of these methodologies are used widely in Namibia depending on the sample and type of research being conducted. Internet penetration is very low in Namibia, mainly due to lack of proper infrastructure in rural areas. CAWI is not widely used due to the low response rate. Qualitative methods are also used widely, but also depend on the type of research being conducted.

What industries are the main market research buyers in Namibia?

C.D.: Fast moving consumer goods (FMCG), financial services and telecommunications.

Are market research buyers rather price or quality sensitive?

C.D.: Market research buyers in Namibia are mostly price sensitive, although everyone agrees quality is not negotiable. Many companies don't have dedicated market research suppliers, but those who have used a market research company in the past will tend to use that same company again as they are familiar with them. The larger companies tend to shop around for the best price. Some small and medium companies do buy market research, but it is mainly the larger companies and corporate companies that spend on market research.
In Namibia most buyers find a research supplier when they have a market research need. When it comes to selling of a specific research product, market research companies will do their own marketing and go out and find interested buyers.

Is there any professional organization of market research agencies in Namibia?

C.D.: Yes. Most of the market research agencies in Namibia are members of the Southern Africa Marketing Research Association (SAMRA) and as such adhere to the SAMRA and ESOMAR code of conduct. We recently as a market research industry brought our own SAMRA Namibia branch back to life and will attempt to manage the industry to protect research buyers from unethical research providers.

Let's turn to human resources issue: is market research educated at universities, are there research experts available in the country?

C.D.: Market research is taught at University level, however, the availability of market research experts in Namibia is a concern as many students need to study abroad to obtain good qualifications and very few return. There is also a lack of awareness of the industry in Namibia and therefore students would probably prefer to qualify themselves in more recognized fields such as commerce and engineering.

How about the global crisis, has it affected the market research sector in Namibia?

C.D.: Namibia was not impacted as much by the global financial crisis as many other countries, although industries such as mining, tourism and financial services would have been impacted due to international events such as fluctuating exchange rates and perhaps the lack of disposable income by Europeans. Europe is Namibia's main trading partner and also the origin of the majority of the tourists that visit Namibia.

Country: Namibia

Capital: Windhoek

Population: 2 million

Official language: English

Currency: Namibian dollar

GDP (nominal, per capita, 2008) 4278$
namibia