Desie Heita
23 June 2011
Windhoek — Angola abruptly barred all cement exports from Namibia on Monday.
The move sent shockwaves that shook the Namibian business sector to its foundations.
The decision was enforced on Monday evening resulting in more than a dozen long-haul trucks laden with cement destined for Angola being turned away.
An irked business sector’s representative organisation Namibia Chamber of Commerce and Industry (NCCI) called the decision by the Angolan government “a step backward in Southern Africa Development Community (SADC)’s push for regional integration”.
Angola is to take over the chairmanship of SADC from Namibia in August.
Namibian businesspeople were shell-shocked to learn that Angola’s customs officials were no longer allowing consignments of cement past their border into Angola.
New Era can confirm that about 20 long-haul trucks loaded with cement were not allowed to enter Angola – even though customers in that country ordered the cement.
NCCI says the decision was not communicated to the Namibian Government or businesses trading with Angola beforehand.
The manner in which the ban was administered “puts up questions of trust in the Angolan government and create worry of business sustainability, especially when government changes administrative [rules at a whim]” says the chamber, which is asking Angola to review its decision.
‘There must be some level of predictability on issues affecting the region,” said NCCI chief executive officer Tarah Shaanika.
Angola has a number of large cement factories. However, a new cement plant is under construction on the northern side of the country.
The plant is expected to come on stream in 2013.
It is not known how this brusque decision would affect the newly opened cement factory, Ohorongo Cement, – incidentally its products were aboard the consignment turned away at the border.
Yesterday, Ohorongo senior executives were engaged in meetings the whole day.
With annual production of more than 700 000 tonnes per year, Ohorongo Cement was looking at selling the bulk of its production to the neighbouring countries.
Namibia’s annual cement consumption is at about 350 000 tonnes.
Angola’s cement ban comes two weeks before the Namibian trade ministry, together with the business community, mount a business mission to three towns of Angola at the invitation of the Angolan government.
NCCI together with Minister of Trade and Industry Dr Hage Geingob would visit the towns of Lubango, Menogue and Ondjiva to look at sectors of construction, mining, education, agriculture, energy, tourism and telecommunications.
Shaanika says the business mission would take place as planned, on July 04 to 08.
Namibian businesspeople are more incensed that the ban came into place without prior notification, and they have lodged formal complaints with the chamber of commerce.
It could not be established whether or not a formal complaint has been lodged with the Ministry of Trade and Industry. The permanent secretary Dr Malan Lindeque could not be reached for comment as he was said to be in meetings.
Of concern now is the chairmanship of SADC, which Angola is destined to take over from Namibia.
The chamber says the push for regional integration should start with the country chairing the region.
“Charity must start at home,” said Shaanika. The issue is set to dominate high-level discussions during the visit to Angola. The new cement plant in Angola would have production capacity of 2 million tonnes per year, and is situated north of Luanda.
Recently, Telecom Namibia disinvested from Mundo Startel (MST) in Angola incurring losses of almost N$2 million in 2010. In 2009, it suffered losses of N$13.5 million.
Telecom Namibia’s investment in Angola was valued at N$115 million.
Telecom Namibia Managing Director Frans Ndoroma had complained that while entering Angola was a good business case because that country has a customer base of 18 million, “that market has proven difficult: politically, culturally, regulatory and logistically”.
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