Agricola small businesses oppose impending opening of Chinese supermarket

The site indicated for the Chinese supermarket in Agricola
The site indicated for the Chinese supermarket in Agricola

By Khadidja Ba

Local retail business owners in Agricola, East Bank Demerara have raised a NIMBY (Not In My Back Yard) protest against a Chinese supermarket, citing impending challenges to their livelihoods as community support may wane and their businesses face closure. (NIMBY is a colloquialism, originating in the US, signifying one’s opposition to the locating of something considered undesirable in one’s neighbourhood.)

“We been here for years, the Chinese coming here will affect the mom-and-pop businesses,” one shop owner known as Brother Dennis said, reflecting the collective anxiety shared among the group. “People in this community could come to me and say, ‘I don’t have enough money,’ and I could help them out. They can’t do that with the Chinese,” he also told Stabroek News during a recent visit to the community.

He noted that the tight-knit relationships built within the community fostered an environment of support that larger businesses could not replicate.

Another shop owner, who requested to remain anonymous, highlighted likely economic implications and expressed concern that Chinese businesses did not reinvest in the local economy. “They don’t give back to the community. All the money they get doesn’t go back into the community,” she argued. This sentiment resonated with others, who criticised the lack of community engagement and transparency from incoming Chinese establishments.

Concerns also extended to pricing strategies. “They have one price on the shelf, but when you go to buy, it’s more than what’s listed,” a community member who was passing by stated. Further, the resident questioned their compliance with local tax regulations thus: “They don’t even give receipts; how are they paying any VAT?”

Brother Dennis stressed the importance of organizing efforts to protect local businesses. “We need a programme to address the negative impacts of Chinese businesses on our community,” said a shop owner who has been running her business for over 20 years. “If we don’t come together, we risk losing our local heritage. Another thing is, why don’t they come and sell their things from China? Instead of coming to sell the same sugar and rice like us?”

The residents pointed to a location at the corner of Brutus Street and the East Bank Public Road where the supermarket is expected to open in December, stating that the situation was urgent. The small business owners expressed feelings of helplessness in the face of government concessions favouring these newcomers.

“I feel like my business might have to close because of this,” one owner who also asked to remain anonymous lamented. “We need to focus on improving our customer service and offering competitive prices to survive.”

Some other shop owners shared experiences of their colleagues in surrounding areas like Eccles and Diamond who have had to close down as a result of Chinese supermarkets going up so close to their locations. Another speaker mentioned difficulties in obtaining goods from suppliers, who might be supplying the Chinese in bulk instead of the small shops which forced them to “get products from the black market”.

Some community members pointed out the need for unity and action to support local enterprises. “In these villages, we can take care of ourselves. We don’t need Chinese supermarkets around,” insisted one speaker. They emphasised the importance of maintaining local networks and support systems to ensure the survival of local businesses.

The urgency of the matter had prompted a protest on October 1. “It’s time for us to stand together and support our local businesses,” urged another shop owner. “We need to ensure our community thrives, not just survives.”

Chinese supermarkets are becoming a prominent feature in communities throughout Guyana, with clusters springing up from Lethem to Port Kaituma. Their growing presence has sparked concern among local shop owners, who fear that the influx of these larger stores could undermine their businesses and disrupt traditional shopping patterns. Many local retailers have said that they are struggling to compete with the competitive pricing and diverse product offerings of the Chinese supermarkets, leading to worries about potential job losses and the erosion of community-based commerce.

On Thursday October 3rd, 2024 Vice President Bharrat Jagdeo addressed the issue, emphasising the need for regulatory bodies to enforce laws consistently regarding Chinese businesses. He noted that citizens have reported feeling displaced by Chinese nationals opening shops in their communities. However, he also mentioned that some local business owners support these ventures by renting their properties, claiming no payment issues have arisen, even when Chinese businesses act as suppliers.

Jagdeo highlighted that there are instances where Chinese business owners bypass regulatory approvals, and enforcement agencies fail to hold them accountable. For example, he pointed out that while local businesses might face scrutiny for building violations—such as inadequate ventilation for selling pharmaceuticals—Chinese companies often do not face the same enforcement. “There’s inconsistency in how the law is applied,” he stated.

He further explained that different permits were required to sell certain items, like alcohol, yet some Chinese entities sold a wide range of products without the necessary permissions. This creates a scenario where consumers might buy alcohol from a store that lacks the appropriate permit simply because it’s more convenient.

Jagdeo also criticised the Guyana Revenue Authority for not adequately monitoring VAT and tax compliance among these businesses. He acknowledged that regulatory bodies might be influenced not to act.

While he affirmed that the government cannot discriminate against businesses based on the owners’ nationalities—citing international trade rules—he recognized the frustrations of local business owners. “If I were in their position, I would feel the same way,” he said, advocating for strict compliance with local laws for all businesses, regardless of nationality. He concluded that all entities must adhere to regulations, ensuring fairness in the marketplace.