Thursday, August 4, 2011

AFRICA: ANGOLA: Angola cement ban lifted by year-end



THE temporary ban on the importation of cement from Namibia to Angola will be lifted and Ohorongo expects to export to the neighbour by the end of the year.

In an interview with Nampa on Tuesday, the managing director of Ohorongo Cement, Hans-Wilhelm Schutte, said the ban caught the company by surprise, as they had just started exporting cement to Angola in May this year.

"The ban has hurt us, but the good news is that the two countries have had positive negotiations and the importing of cement into Angola will resume towards the end of this year,"said Schutte.

"Our business proposal was based on selling cement from Namibia and exporting the products to southern Angola before we expand to some other countries in southern Africa,"he said.

The Ohorongo cement factory is expected to produce 700 000 tonnes of cement a year and 250 000 to 300 000 tonnes of that is destined for southern Angola.

"We hope that trade will be normalised soon and that the business will resume accordingly,"he said.

In June this year, the Angolan government banned the importing of cement from Namibia,particularly the type that is used for building. The Angolan government said the ban became necessary because of an oversupply of cement in that country.

However, other types of cement, such as the one used for tiling, can still be imported from Namibia to Angola.

The sudden announcement of the ban left long-haul trucks from Namibia stranded at the Namibia/Angola border last month, and irked many businesspeople who are involved in the production and distribution of cement, especially those who have supply contracts with institutions and companies in Angola.

Meanwhile, in June this year, Ohorongo signed its first deal with the Democratic Republic of the Congo (DRC), and will start exporting approximately 18 000 tonnes of cement into that market.

Schutte said the first consignment of cement to the DRC has already left, and the second batch will be transported there this week.

He indicated that plans are also underway for the company to start exporting cement to Botswana, Zimbabwe and Zambia.

Ohorongo will provide nearly 300 job opportunities at full capacity; the company currently employs 270 workers on a permanent basis.

To enable the workforce to acquire the necessary skills, a large number of employees have already received suitable training in Europe at Schwenk, Polysius and at the Association of German Cement Plants.

The factory, which is considered to be the most modern cement plant in Africa, was officially opened by President Hifikepunye Pohamba in February this year.

It was built at a cost of N$2,5 billion, and is 60 per cent-owned by the Schwenk Group of Germany.

Others shareholders include the Development Bank of Namibia, and the Development Bank of Southern Africa.

The main raw materials required in the cement production process, being limestone, shale and marl, are mined at the Ohorongo quarry, while iron ore and gypsum are obtained from the Okorusu mine and Elspe Minerals near Swakopmund, respectively.All raw materials are sourced within Namibia, making Ohorongo Cement one of the few companies that completes the entire value-addition chain from bare limestone to high-quality cement within the country, Schutte said.

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