Cheetah cement given ultimatum to localise jobs Justicia Shipena Justice and labour relations minister Fillemon Wise Immanuel has directed Cheetah Cement in Otjiwarongo to ensure that all non-specialised roles are filled by Namibians. It affects roles such as two chef positions and one administrative officer post, which are currently held by Chinese nationals. The directive follows plans by Cheetah Cement, operated by Whale Rock Cement (Pty) Ltd, to merge with Ohorongo Cement.  Immanuel issued the directive on Saturday during a plant familiarisation visit.  He met with senior management, employees, officials from the Otjiwarongo Labour Office, and the Mineworkers Union of Namibia (MUN). He also ordered he company and the union to resolve all outstanding labour issues, including the implementation of understudy arrangements, a market salary survey, and the 2025/2026 wage negotiations.  Immanuel set deadlines of 23 July for the the finalisation of the understudy arrangements and salary survey and 8 August for wage  talks. Immanuel emphasised the importance of social dialogue and tripartite cooperation in maintaining stable labour relations.  “Government expects a reasonable employer and a responsible employee.Any of the social partners who do not live up to this expectation are a threat to industrial stability or the labour market–social equation,” he said.  MUN said the meeting led to the urgent finalisation of the long-delayed employee grading process.  “No more excuses; fairness must prevail. Time-bound and transparent wage negotiations – workers deserve a living wage, not endless delays,” the union said. The union also confirmed that use of Africa Personnel Services (APS), a labour hire company, would be discontinued. “Decent jobs can’t be outsourced to precarious work. All APS finance staff must be absorbed into proper Whale Rock Cement contracts, thus securing job security and fair treatment,” MUN said. The union said a health and safety plan will be put in place to protect workers on site.  “Unsafe work will not be tolerated,” the union added. MUN described the meeting as a show of collective strength and engagement.  “A reminder to arrogant employers that no scheme to undermine workers will stand unchallenged. We will continue to hold both the company and the ministry accountable until every commitment is honoured. Our fight for dignity, security, and decent work is non-negotiable.”

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Namibian leaders reject Ohorongo-Chinese sale Otavi leaders and stakeholders want the Ohorongo Cement sale to Cheetah Cement stopped, citing unfulfilled local promises and fears of a cement monopoly by Chinese companies. Schwenk (Ohorongo cement) Namibia has been asked to allow Namibians to buy the company instead of selling it to Whale Rock (Cheetah) Cement. This is after a deal that involves Cheetah Cement acquiring 100% share capital of Ohorongo cement from Schwenk Zement International GmbH & Co KG was labelled a breech of the promise the company initially made to prioritise locals. It is not the first time Ohorongo Cement has been up for grabs. In 2020, Chinese company West China Limited wanted to acquire the company for N$1.5 billion, but the sale was blocked by the competition commission, citing a monopoly. However, an analysis by The Namibian of the ownership of Ohorongo Cement’s prospective buyer – West China Cement Limited – also showed that this company, and Whale Rock, which owns Cheetah Cement, are under one fold, which, if approved, could deal a fatal blow for competition in the sector. However, West China pulled the plug on the deal the same year. Whale Rock took over the bid later on. Otavi constituency councillor George Garab says the proposed merger disregards foundational commitments to Namibian stakeholders that were made when the company was set up. Among those commitments was that in the event of a sale of shares, preference would be given to local buyers. Garab says Ohorongo Cement significantly benefited from the assistance of the Otavi Town Council and other local authorities in securing operational licences. It also received policy and fiscal incentives from the government, including infant industry protection. In return, the company made clear commitments to prioritise local buyers in any future sale of shares. ‘BREAKING PROMISES’ “Despite these benefits, Schwenk Group appears to have entered into negotiations to offload its stake in a clandestine manner, without affording Namibian investors or the government an opportunity to acquire a stake, thus breaching the spirit of its foundational obligations and expectations,” Garab says. He says the transaction appears to have been negotiated and advanced without formal disclosure to shareholders or local authorities. “The decision to sell 100% of the shares contradicts earlier commitments to offer Namibians the first right of refusal,” Garab says. He has therefore asked the Namibian Competition Commission (NaCC) to reject the merger proposal. “We respectfully submit that the NaCC and other competent authorities must reject the proposed acquisition of Ohorongo Cement by any entity with an existing ownership interest in Cheetah Cement or similar operations in Namibia,” Garab says. Activist Johannes Johannes says the merger would drive many of Otavi’s people onto the streets, as the mine was absorbing many residents – even those who are unqualified. “At Otavi, most of these people were hugely unqualified residents that were just absorbed by the mine. Now they could end up back on the streets as a result of that merger,” he says. ‘AFFORDABILITY CRISIS’ He says potential price hikes could lead to an affordability crisis. Additionally he raises concerns over national sovereignty and infrastructure development. “If we do not gain full control over our cement and it is owned by foreigners, are we going to develop our country? Because cement is key in infrastructure development,” Johannes says. If left with no other choice but to allow the merger, he says the government should negotiate that all employees are retained. “They must not lose their jobs,” he says. OPTIMAL MARKET Grace Moham, representing Global Business Development, says the merging parties cannot argue a failing firm due to Namibia’s market size. “Prior to entering the Namibian market, Ohorongo Cement knew the growth potential, market size and possible profits, considering the size of the Namibian market,” she says. Moham says the market operates optimally with two competitors. Since 2010 when Ohorongo cement entered the market, there has been no evidence that those market dynamics have changed, therefore leaving no reason for the merger to be approved, she says. Moham says the merger could make the offer public, allowing Namibians to buy Ohorongo Cement. Additionally, it would spark an uptick in the construction sector as the economy has been showing growth, she says. ‘MAKE OFFER PUBLIC’ “The conduct of the seller has left much to be desired. They have the right to sell their business, but cannot decide who must buy their business. “If there is an indication that there is no viable person in Namibia to buy the business, they have the option of making the offer public.” A letter from biomass producers at Tsumeb, who have been supplying Ohorongo Cement with wood chips since 2016, says they have not seen any interest from Cheetah Cement on taking part in the initiative. The initiative helps farmers improve their grazing ground by removing encroachment bush, which is then sold to Ohorongo. According to the letter, the biomass producers have been able to clear about 11 000ha of land, providing employment for locals and also ensuring that farmers get the greatest benefits from their farmlands. “We are uncertain if Cheetah Cement will continue with the initiative as a proposal was made to them in 2019, however, they have not engaged or responded to that proposal,” the letter reads. Ohorongo Cement currently uses 14 000kg to 15 000kg of biomass per month. UNCOMPETITIVE PRICES’ Construction Industries Federation of Namibia (CIF) chief executive Bärbel Kirchner says the NaCC should reject the merger. She says the proposed merger will subject the construction sector to uncompetitive prices. The construction sector has been seeing some improvement and with the capital projects that the government is planning, the sector will continue to improve, Kirchner says. “This merger could lead to price manipulation, and local procurement would be under threat as the new owners may not be as supportive of local businesses,” she says. Additionally Kirchner says global best practices would never allow such a merger as it would create a monopoly. ‘ONLY ONE NEEDED’ Ohorongo Cement managing director Hans-Wilhelm Schütte says Namibia only needs one cement manufacturer. He says the cement market in Namibia has always been fragile due to overcapacity and market fluctuations. “Even with the highest consumption of cement in Namibia, one factory could easily produce it. The construction industry has declined since the 2015 radical with double production,” Schütte says. NaCC spokesperson Dina //Gowases says the final decision on the merger will be announced after all recommendations and interrogations have been completed. “The recommendations will be shared with the NaCC board of commissioners who will either agree or disagree with the recommendations before the final decision is shared with the merging parties and the public,” she says. Schwenk Namibia holds a 69.83% stake in Ohorongo Cement, with the remaining shares held by Industrial Corp South Africa (14.27%), the Development Bank of Namibia (11.73%), and the Development Bank of Southern Africa (4.17%). The post Namibian leaders reject Ohorongo-Chinese sale appeared first on The Namibian.

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Cheetah Cement sidelines workers on Ohorongo merger 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.

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