In a recent development, Namibia's Industries Minister Modestus Amutse has defended his decision to allow Cheetah Cement, owned by Chinese company Whale Rock Cement, to acquire Ohorongo Cement. The move has sparked controversy, with a High Court case filed by South African customer iTE Products, which claims it had submitted objections to the merger that were ignored. Amutse's decision was made in June, when he allowed Whale Rock Cement to purchase all shares of Schwenk Namibia, the majority owner of Ohorongo Cement.
According to Amutse, the decision to approve the merger was made with the best interests of employment in mind. At the time, both companies were considering closure and had begun negotiations with workers. The minister emphasized that his priority was to protect jobs, stating that it was better for both factories to remain open under one owner, rather than risking closure and job losses. This decision was made despite the Namibia Competition Commission (NaCC) blocking the sale in July 2025 due to concerns over local ownership, potential price increases, and job losses.
The NaCC's concerns were not entirely dismissed, as Amutse announced new conditions for the merger, including 40% local ownership and protection of all jobs. These conditions aim to address the issues raised by the competition watchdog. Amutse also mentioned that Whale Rock Cement plans to create new work opportunities with a product that is not cement, although details are scarce. The minister expressed his willingness to hear objections, stating that those who want to be heard will be given a chance.
The lawsuit filed by iTE Products claims that the company had submitted objections to the merger, which were not considered by Amutse. The case is set to be heard on October 1, and the government has not lodged an objection to the proceedings. Amutse's decision to overturn the NaCC's block on the sale was based on the absence of additional submissions objecting to the merger. However, iTE Products disputes this, arguing that its objections were indeed submitted.
Cheetah Cement spokesperson Tabby Moyo commented on the potential for the merged company to produce new products, stating that a market survey will be necessary to determine demand. Moyo also mentioned that the timeline for establishing greater local ownership will depend on local entities expressing interest in buying a stake. The company cannot comment on the ongoing court case, Moyo added.
The merger has sparked concerns about local ownership and control of the cement industry in Namibia. The new conditions imposed by Amutse aim to address these concerns, with 40% local ownership being a key requirement. However, it remains to be seen how these conditions will be implemented and what impact they will have on the industry.
As the High Court case approaches, stakeholders will be watching closely to see how the matter unfolds. The outcome could have significant implications for the cement industry in Namibia and the role of foreign companies in the sector. Key points to watch include the court's decision on the merger, the implementation of the new conditions, and the potential impact on employment and local ownership.
Key points
- The Namibian government has not lodged an objection to the High Court case.
- The merger is subject to new conditions, including 40% local ownership and job protection.
- The case is set to be heard on October 1.
