Cheetah Cement mulls exit to Botswana amid claims of 'harassment'

Whale Rock Cement, the parent company of Otjiwarongo-based Cheetah Cement, is reportedly considering shutting down its Namibian operations, citing what it describes as a “hostile operating environment” marked by ongoing “harassment” from government officials, political parties and trade unions.The latest flashpoint came last weekend, when justice and labour relations minister Wise Immanuel reportedly ordered the company to replace two Chinese chefs and one administrator with Namibians.Immanuel issued the directive during a familiarisation visit to Cheetah Cement on Saturday. He met with the company’s top management, Mineworkers Union of Namibia (MUN) representatives, employees and officials from the Otjiwarongo labour office.'Efforts going unnoticed'Sources close to Cheetah Cement told Namibian Sun that the company believes its efforts to “Namibianise” its operations have gone unrecognised. According to insiders, the company has reduced its Chinese workforce from 120 employees to just 27 in recent years.“The company feels overwhelmed and believes it has gone to great lengths to comply with Namibian laws. Some years ago, Cheetah had around 120 Chinese employees – now it’s only 27,” a source said.“Operations have not been too profitable, hence the proposed merger with Ohorongo Cement to grow its market. But with that now rejected, Cheetah Cement no longer sees viability in remaining in Namibia under these circumstances,” the source added. The company is now reportedly “seriously considering” relocating its Namibian operations to Botswana, where Whale Rock Cement already operates a cement plant in Francistown, commissioned in February 2022 at a cost of US$40 million.Merger rejection a blowIn Namibia, Whale Rock Cement had applied to acquire Schwenk Namibia’s 69.8% stake in Ohorongo Cement. If approved, this would have made Whale Rock the majority shareholder of both of the country’s two major cement producers.However, the Namibia Competition Commission (NaCC) blocked the proposed merger, warning that it would effectively eliminate competition in the local cement market.“The transaction was found likely to significantly reduce or prevent competition in the relevant market,” the commission explained. NaCC raised concerns that the merger could result in job losses due to overlapping positions and a possible drop in tax contributions, thereby negatively affecting state revenue.Board to decide next stepsWhale Rock spokesperson Tabby Moyo confirmed receipt of the commission’s decision and said the company has 30 days to respond.“The board will convene within two weeks to decide whether to appeal the decision or to accept it and look at restructuring so that Cheetah Cement can continue operations,” Moyo said.He emphasised that Namibia’s market is too small to sustain two large-scale cement plants.“The Namibian market demand is around 600 000 metric tonnes per year, but both plants together can produce up to 2.6 million tonnes,” he noted. Cheetah Cement was built in 2018 with the aim of supplying the broader southern African market, but that ambition has faltered as neighbouring countries have shut their borders to cement imports.“Botswana, Angola and Zambia have closed their markets to Namibian cement, while Zimbabwe has imposed heavy tariffs,” Moyo explained. “Only Namibia’s borders remain open to cement imports, including from South Africa.”Shrinking demand at homeDomestically, government cutbacks on large-scale infrastructure projects, such as school and office construction, have further shrunk demand for cement.Even the African Continental Free Trade Area (AfCFTA) offers limited relief, as high transport costs and poor export capacity through Walvis Bay hinder regional competitiveness.“In West Africa, for instance, large producers like Dangote Cement have massive capacity and can offer cement at very low prices,” Moyo pointed out. In 2022, Cheetah Cement filed a trespassing case against leaders of the Namibia Economic Freedom Fighters (NEFF), who had entered the factory premises. While NEFF initially supported striking employees at the plant, workers later distanced themselves from the party.Efforts to obtain comment from Ohorongo Cement were unsuccessful by publication time.

Cheetah Cement mulls exit to Botswana amid claims of 'harassment'

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Namibian Sun 2025-07-10

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Cheetah Cement mulls exit to Botswana amid claims of 'harassment'

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Namibian Sun 2025-07-10

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