Iindji foresees cement oversupply

04 Sep 2018 09:50am
ONGWEDIVA, 04 SEP (NAMPA) – Chairperson of the Namibia Chamber of Commerce and Industry (NCCI) in northern Namibia, Tomas Iindji said cement oversupply remains a concern both locally and within the Southern African Customs Union (SACU).
“The current status in the country shows an oversupply of cement already and a new player will mean a production of excess product,” said Iindji in a statement availed to Nampa on Monday.
According to him, the business fraternity reiterates that an oversupply of cement in the Namibian market, as well as overcapacity in SACU, is symbolising that a second cement plant would not be beneficial for the country.
Iindji pointed out that Namibia’s current cement consumption is 600 000 tons per year, while the country’s first cement factory, Ohorongo Cement, can already produce one million tons annually.
With the current economic pressure, Iindji said, the NCCI Northern Branch believes there will be no major public infrastructure development projects to be carried out in Namibia and no major private or capital expenditures.
He went on to say his branch has looked at all the projects that have been proposed, be in the municipalities, government, foreign direct investments (FDI) and others, but sees nothing on the horizon in the next 24 months.
This, he noted, presents a major problem for the construction sector.
Iindji further stated there is also a fear that most countries in southern Africa will adopt protectionist policies, which could be disastrous for the Namibian manufacturers.
“We must make sure that as much as we encourage FDI to come to Namibia, we also have to emphasise that Namibian interest should be prioritised.”
Iindji made similar remarks whilst addressing a business interactive session jointly organised and held by Confidente Newspaper, Letshego Bank and Ohorongo Cement at the just ended Ongwediva Annual Trade Fair (OATF).