CIF rejects cement merger

**Construction federation urges rethink of Ohorongo cement merger approval**

The Construction Industries Federation of Namibia (CIF) has reiterated its opposition to the approval of the Whale Rock Cement (Pty) Ltd and Schwenk Namibia (Pty) Ltd transaction involving Ohorongo Cement, arguing that the conditions attached to the deal do not adequately safeguard competition in the domestic cement market.

The approval was granted by Minister of Industries, Mines and Energy Modestus Amutse and published in Government Gazette No. 8965. The decision overturned an earlier ruling by the Namibia Competition Commission, allowing the transaction to proceed subject to conditions.

Those conditions include a prohibition on merger-related job losses, post-merger monitoring by the Namibia Competition Commission (NaCC), the continued existence of the Cheetah Cement plant and a requirement that local ownership be increased to at least 40%.

In a statement issued this week, the federation said its concerns had been raised during the NaCC stakeholder consultations in June 2025. It argued that the merger could reduce competition, increase cement prices, weaken supply security and negatively affect contractors, small and medium-sized enterprises (SMEs) and the wider construction sector.

CIF CEO Bärbel Kirchner said the federation's position was not directed at any particular investor or company.

“This is not about being against investment. It is about protecting fair competition, local capacity and Namibia's future infrastructure development. Cement is too important to Namibia's economy to be controlled through an overly concentrated market structure.”

The federation said it recently surveyed 38 members from across the construction value chain to assess industry sentiment following the minister's decision.

According to CIF, nearly all respondents regarded competition between cement suppliers as important, while almost 90% expected cement prices to rise, either significantly or moderately, if the transaction proceeds. Respondents also expressed concerns about service levels, access to supply, preferential pricing and the impact on Namibian-owned contractors and SMEs.

The CIF argued that the ministerial conditions do not include mechanisms for cement price monitoring or explicit safeguards against discriminatory pricing or preferential supply arrangements.

The federation also said the requirement for the continued existence of the Cheetah Cement plant lacked operational detail, arguing that it does not necessarily guarantee ongoing production, employment or competitive market pressure.

It further maintained that the requirement for at least 40% local ownership, while positive, would not by itself ensure competitive pricing, equal market access or protection for local contractors.

The federation also questioned the reliance on post-merger monitoring, saying the conditions do not specify measurable compliance obligations, reporting requirements or penalties for non-compliance.

CIF said its concerns come at a time when many locally owned contractors already face difficulties competing for major infrastructure projects. It argued that increased concentration in the cement market could place additional pressure on domestic construction firms.

"Conditions cannot easily replace real competition. Once effective competition is removed, the industry may only be left with monitoring after the damage has already occurred. This is not adequate to protect the interests of our industry, public and private end users, and our economy at large. For this reason, CIF remains opposed to the transaction," Kirchner said.

The federation has called on the minister to reconsider the approval and urged the government to prioritise the long-term interests of Namibia's construction sector, local contractors, SMEs, consumers and national infrastructure development.