Allexer Namundjebo
Cheetah Cement did not inform its workers about the planned merger with Ohorongo Cement.
This came to light during a stakeholders’ conference held in Windhoek on Thursday by the Namibian Competition Commission (NaCC).
Cheetah Cement, operated by Whale Rock Cement (Pty) Ltd, said it deliberately withheld the information from workers.
A spokesperson for the company, Tabby Moyo, stated that they deliberately withheld the information to prevent speculation and confusion.
“The decision is to avoid speculations and confusion among employees,” Moyo said.
Meanwhile, Meyer van den Berg, the legal representative of Ohorongo Cement, informed their employees about the planned acquisition through a memo.
The proposed merger has faced rejection from several stakeholders at the conference. Most raised concerns about a monopoly forming in the cement sector.
Others questioned why local companies were not given a chance to buy Ohorongo Cement, which is owned by Schwenk Namibia (Pty) Ltd.
George Garab, representing Otavi Cement Group (Pty) Ltd, said local ownership is key and that the merger goes against government efforts to promote it.
“Even though Otavi Cement Group owns the licence to the farm where Ohorongo Cement operates, we were never given an opportunity to purchase Ohorongo,” said Garab.
He said Ohorongo Cement was supported by the Otavi Town Council and other authorities to obtain an operational license.
Now, he claimed, the company is being sold off in secret, excluding local investors and the government.
“This undermines the spirit of its foundational obligations and the national goal of economic empowerment and equitable ownership,” Garab said.
He warned that the merger could create a near-monopoly in Namibia’s cement market, which could eliminate fair competition and drive up prices.
He said this would discourage local businesses and new market entrants.
Grace Muhammad, representing Global Business Development (Pty) Ltd via CCLAS Advisory Services, raised concerns over potential tax leakages.
“Since the merger involves foreign companies, there’s a high risk of tax revenues being lost. They should partner with a local entity,” she said.
Moyo defended Whale Rock Cement’s presence in Namibia. He said the company entered the market in 2016 to serve both Namibia and the Southern African region.
“We aimed to make Namibia a hub for our operations across SADC. But expansion plans have been hampered by import bans in neighbouring countries,” Moyo said.
He said the company has more than 30 years of experience in cement manufacturing from China, and also works in industrial sectors such as chemical building materials and environmentally friendly technology.
The merger between Cheetah Cement and Ohorongo Cement is aimed at consolidating their position in Namibia’s cement industry.
The companies want to gain full control of production, improve efficiency, and grow their market share.
The plan includes streamlining supply chains, cutting costs, and boosting their competitiveness locally and across the region.
However, regulatory and public concern remains high.
The NaCC has blocked similar mergers in the past. The commission is worried about reduced competition, possible collusion, and the creation of a monopoly.
It fears that companies could engage in price fixing or divide the market among themselves, which would also hurt consumers.
The commission also raised concerns over the potential exclusion of local businesses and employees and the risk of foreign control in a vital sector for Namibia’s infrastructure growth.
The NaCC said a fair and competitive market is necessary. It said the market must allow local participation and avoid the concentration of power.
The commission is still accepting inputs regarding the merger from stakeholders until next week.
