BY TIRI MASAWI
Whalerock Cement spokesperson Tabby Moyo says the company welcomes the decision of Minister of Industries and Mines Modestus Amutse to approve their push to acquire a controlling stake in Ohorongo Cement owned by Schwenk Namibia.
”We are delighted by the Minister’s decision as it will safeguard jobs in the cement industry. As we said in our submission to NACC the merger would not result in any Namibian losing their jobs. In fact more jobs could result from this merger,” he said.
Moyo added that, “The domestic cement market will be adequately served by one cement factory. The limited local market size has resulted in the two plants not being able to utilize their full production capacities and thereby affecting the economic viability of the two plants.”
He said the merger of the two cement plants will result in one plant operating at full production capacity, realizing the profitability of the enterprise.
The decision by Amutse overturned the decision of the Namibia Competitions Commission (NaCC) which had blocked the merger initially citing potential monopoly of the industry by one player.
Amutse announced his decision in a government gazette number 229 released on June 11 2026.
“In terms of subsection (4)(a)(ii) of section 49 of the Competition Act, 2003 (Act No. 2 of 2003) read with subsection (3)(a) of that section, I give notice that I have made a determination overturning the decision of the Commission. The reasons for the determination are set out in the Schedule,” Amutse said in the government gazette.
When Whalerock initially made their intentions known to acquire Ohorongo Cement they initially offered N$1.5 billion in 2020 to buy out 100% of Schwenk Namibia.
Whalerock Cement is the controlling entity of Cheetah Cement and has been pushing e to acquire Schwenk Namibia, which holds a majority stake in Ohorongo Cement. Amutse’s decision will give Whale Rock Cement complete control over cement production in Namibia – putting to rest one of the most contested mergers in the country.
The merger will have a significant impact on the production, ownership of cement products and subsequently the construction industry
The minister added that his decision was also well informed by the fact that ‘interested parties were invited to make written submissions with regards to any matter to be reviewed, but no representations were received to date.’
“In arriving at my determination/decision, I was guided by the Namibian Constitution, the Competition Act, the National Competition Policy 2020-2025 while also taking into consideration public policy,” he said.
He added that, “I hasten to point out that I fully appreciate that the discretionary review powers conferred upon me by section 49 of the Competition Act are not absolute or unfettered but should be exercised within the confines of the Constitution, more specifically Article 18 as well as the Competition Act.”
Schwenk Namibia currently holds a 69.83% stake in Ohorongo Cement, with the remaining shares held by Industrial Corporation South Africa (14.27%), Development Bank of Namibia (11.73%), and Development Bank of Southern Africa (4.17%).
Further explaining his decision Amutse said, “ While appreciating that the Commission acted within the confines of its enabling piece of legislation, I am of the considered opinion that the concerns raised by the Commission can be remedied by attaching appropriate conditions to the proposed merger as well as where necessary, the Commission to initiate investigations post the merger. “
ATTACHED CONDITIONS
The minister added that conditions to be attached to the merger are that the merger should not lead to any job losses, the Commission to monitor post-merger whether a monopoly has been created and whether a dominant position has been established.The conditions also include that Cheetah Cement plant should not be destroyed due to the merger but rather options should be explored to ensure its continued existence and transformation into a productive facility with the capacity to employ Namibians.
The conditions also say Whale Rock Cement (Pty) Ltd and Schwenk Namibia (Pty) Ltd should increase local ownership to not less than 40 percent.“In the final analysis, I have resolved to overturn the decision of the NACC,” Amutse said.Ohorongo Cement was established in 2007 by the Schwenk Group and began production in December 2010.The company also focuses on procuring alternative energy sources.Ohorongo Cement also reduces scrub encroachment on farms and converts the biomass into energy for its cement plant.
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