Cement industry calls for protection
Bemoans foreign intrusion
Botswana Cement Manufacturers Association ( BCMA) continues to raise alarm on the perennial cement dumping by regional and international industry players.
The Association has bemoaned that the dumping is not adding value to the local economy, through skills development, local value chains and employment.
“The local cement industry is under threat from regional and international counterparts that are dumping cement products and predatory pricing is the main threat to the local industry.
“These regional and international counterparts are eroding the local market due to the low pricing strategy they come with; the northern part of the country is mostly dominated by foreign cement products which suppress local cement players,” said BCMA Chairman, Nkosi Mwaba, at a stakeholders roundtable held by PPC Botswana recently.
“We also need to make sure that there isn’t an unnecessary overflow of imports,” said Mwaba. He said the industry is currently supplied by a mix of locally produced cement and imported products from South Africa and Namibia.
Mwaba’s concerns were also reiterated by Managing Director of the defunct Matsiloje Portland
Cement, Racjit Josh citing that the industry needs protection from relevant policy makers.
“Zimbabwe, Nambia and SA have import restrictions in place to protect their market while Botswana does not have.
“When we were in operation, we constantly reduced prices until we reached a point where we felt that it was not sustainable to continue running the business,” Josh said.
Adding his voice to the concerns, PPC South Africa Managing Director, Njombo Lekula said it is critical to prioritise local manufacturers for national projects. “In partnership with the government, we can guarantee industry growth, social entrepreneurship, skills development and a robust value chain as local manufacturers. All these efforts can ensure a viable economic impetus from the construction industry,” said Lekula.
Meanwhile, Absa Botswana economist, Naledi Madala has highlighted that Africa’s vast resources - minerals, raw materials, fertile soils has potential to catapult Africa as the next robust manufacturing sector and global value frontier.
“It is critical to ensure local ( African) players and manufactures are prioritized for national projects to project a strong economic boom.