Cheetah Cement has gone dry on its ambitious plans to establish a cement manufacturing plant at Otjiwarongo. The company has not only ceased to sell cement but has also not been forthcoming with information about its plans. Latest attempts to get an update on the project were met by four simple words: “we are on track.”

Last year, Cheetah Cement said it will not import cement despite the 18% increase in demand for cement which was being experienced in Namibia at that time. The company's chief executive officer, Zedekias Gowaseb, said the company will only import cement if it is assured that there will be no second price war with Holcim group, the world's second largest producer of cement by volume. 

“If we bring in cement now our competitors will drop their prices below cost to push us out. We know that,” Gowaseb said then.

But it seems that the company does has the full backing of the government, which last year, public vowed to extend protection to the local cement industry “by all necessary means” as long as the cement production is done in Namibia. “We will do anything at our disposal to protect such an industry. But government is not in position to protect importers of cement into Namibia,” said the permanent secretary of the Ministry of Trade and Industry, Andrew Ndishishi.

He added that government has all the power and it is very much legal to protect the local cement industry “by all necessary means. Government is allowed to do that.”

Cheetah Cement entered the market last year with intentions to establish a cement manufacturing plant at Otjiwarongo. The company is a joint venture between Namibians and CP Cemento of Brazil. It intended to import about 18000 tons of cement from Brazil every month until it has completed the construction of the cement factory at Otjiwarongo.

This was halted by the price war with Holcim just two months after it entered the market. The war resulted in Holcim lowering the prices to as low as N$27 per bag of cement, at which stage Cheetah Cement was selling its product below costs.

Holcim is currently capitalising on the unprecedented increase in the demand for cement.

Holcim is importing 3% of its annual production to satisfy the demand. The company has also started to increase its prices back to where they were last year.

The permanent secretary said government has taken note of the high prices of cement in the country. “We are concerned and are talking to people all over the world. Cement should be accessible and affordable,” he said.