Job losses expected at Ohorongo Cement after Botswana import ban
Schwenk (Ohorongo Cement) is expected to cut more jobs as the company faces further strain due to Botswana closing its borders for 50kg cement imports.
Ohorongo Cement managing director Hans-Wilhelm Schütte says the ban could significantly affect the industry’s future, especially in terms of employment and market stability.
“A cement plant is a highly capital-intensive industry. With excess production and no growth in demand, we will have no choice but to downsize,” he says.
Ohorongo Cement has already reduced its workforce in recent years due to a declining market share.
“We had 410 Namibian employees at one point, but now we only have 200.
This is a tough industry, and the situation is getting worse,” Schütte says.
Botswana announced an import ban on 50kg bags of cement starting 1 August.
Schütte says the cement market in Namibia has always been fragile due to overcapacity and market fluctuations with the recent ban from Botswana only making things worse.
“We’ve had a good market in Botswana, but now with the ban, we are left with limited export opportunities, forcing us to reconsider our operations,” he says.
Additionally, Schütte says the cement industry in Namibia has long struggled with overcapacity, and the surplus production is making it increasingly difficult for producers like Ohorongo to stay profitable.
He says the Botswana market was absorbing some of the excess capacity but options are now limited.
Schütte says Namibia’s open import policy, which allows cement imports without restrictions or tariffs, is putting pressure on local manufacturers.
“We have seen what happened when the market was flooded with imported cement. The local industry suffers, and the risk is that we lose our entire manufacturing base,” he says.
Countries like Botswana and Angola are already implementing import bans or heavy restrictions.
“We need a strategy to protect our industries from oversupply and import competition. Otherwise, we risk losing jobs, local businesses, and the value-added benefits that come with manufacturing cement here.”
The post Job losses expected at Ohorongo Cement after Botswana import ban appeared first on The Namibian.
