Import predatory pricing weakens cement production

As of 2022, the current national cement production stands at approximately 480,000 tonnes of the 600,000 tonnes of national demand per annum.

According to PPC head of business unit, Tuelo Botlhole said even though the current capacity means that the country imports less than 20%, import predatory pricing is weakening the manufacturing resolve.

“We should be at a level of self-sufficiency to bolster employment creation, increase capacity, and enrich the industry value chain. Companies who export at predatory pricing should be hit by border tariffs in order to protect our economic contribution of manufacturing,” he said.

Currently, there are three local players who Botlhole believes should be given priority, a move aimed at empowering the local cement manufacturing sector. He said through Botswana

Cement Manufacturers Association, local players have positioned themselves to work with relevant government structures to ensure that demand is met internally.

Further, Botlhole said the Ministry of Investment,

Trade and Industry and the cement association have made progress in ensuring that the beneficiation of local raw materials is enhanced.

“Progress has been made in Morupule Power Plant as local ash meets the required specification for cement production. However, we haven’t made as much headway in bringing the government to prioritise local cement producers on national projects, stop predatory pricing that is meant to undercut and undermine our effort as local manufacturers,” he said.

Botlhole said predatory pricing and imports threaten Foreign Direct Investment, employment, industry value chains, skills development and payment of full-scale taxes due to the government.

He said over the three years, they have seen a few players enter the market adding that projected additional thousands of jobs in cement manufacturing and its industry value chain alone remain threatened if predatory pricing is not addressed.

“It has always been our belief that competition is necessary not only to afford the consumer greater choice of product and sometimes better prices, it is also important for us as local manufacturers, as it brings in new skills and technology. It also makes us continue to improve our effeiciencies as such more benefit for all,” he said.