An attempted takeover of Schwenk Namibia (Ohorongo Cement) by rival Whale Rock Cement is facing strong opposition from stakeholders who fear it could create a monopoly in the local cement industry.
The Namibian Competition Commission (NaCC) stated on 17 February 2025 it had received a merger notification the proposal from Whale Rock Cement – which operates Namibia's second cement plant near Otjiwarongo, where it produces Cheetah Cement – to acquire 100 per cent of the issued share capital in Schwenk Namibia.
'Contrary to national aspirations'
In a submission to the NaCC, George Garab, the Otavi Constituency councillor representing the Otavi Cement Group, expressed his objection to the merger, particularly concerning the potential sale of Ohorongo to foreign investors. "The deal appears to have been structured without any genuine effort to engage local shareholders, financiers or industry players. This is contrary to national aspirations of economic empowerment, localisation, and equitable ownership of key industries," he commented.
Ohorongo Cement’s parent company Schwenk Zement International holds 69.83 per cent of the company. The remaining shares the company are owned by the Industrial Corp of South Africa (14.27 per cent), the Development Bank of Namibia (11.73 per cent) and the Development Bank of Southern Africa (4.17 per cent).
Schwenk Zement International is known to have been looking to sell its operations in Namibia for some time. In 2020 it attempted to merge Ohorongo Cement with West China Cement Ltd only for the move to be blocked due to fears of collusion.
Ongoing problems
In recent months, Ohorongo Cement has been hit hard by an import ban instigated by neighbouring Botswana, which since 1 October 2024 no longer permits 50kg cement bags (only those of 1000kg and over). The company has already been compelled to more than halve its workforce in recent years, due to a reduced market share, and will have no alternative but to downsize, according to a statement by its managing director, Hans-Wilhelm Schutte. He believes that Namibia’s own open import policy, which allows cement imports without restrictions or tariffs, is putting pressure on local manufacturers and that the Namibian market can be best served by a single cement plant, namely that of Cheetah Cement.
"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," says Mr Schutte.
