The Construction Industries Federation (CIF) says protecting competition in the cement sector is key to protecting the construction industry.

This comes after a High Court decision earlier this week reversed industries minister Modestus Amutse’s decision to allow a merger between Namibia’s two cement companies.

“[CIF’s] position has always been that cement is too important to Namibia’s construction sector and infrastructure development to be considered only as a commercial transaction between parties,” CIF chief executive Bärbel Kirchner said on Monday.

Whale Rock Cement, which owns the brand Cheetah Cement, had applied to the Namibian Competition Commission (NaCC) last year to purchase Schwenk Namibia’s shares in Ohorongo Cement.

The competition watchdog prohibited the merger on the grounds that it would lead to monopoly in the cement sector. Whale Rock appealed the decision to the minister, who overturned the NaCC’s ruling.

CIF then joined a court case with iTE Products to challenge that ruling in the High Court, on the basis that Amutse had not considered representations against the merger.

“CIF did so in line with its mandate to represent the wider construction industry, given the potential implications of the transaction for contractors, small and medium enterprises, suppliers, public procurement, infrastructure delivery, employment and end-users,” the federation said on Monday.

The High Court ruled that Amutse had not considered objections lodged with him against the merger. The minister admitted that the objections had never reached his desk.

NaCC’s prohibition of the merger, therefore, remains in place.

“CIF notes the court’s ruling and welcomes the clarity it provides on this important matter. The broader public interest, competition, fair access, employment and long-term construction capacity must remain central considerations,” Kirchner said.

Source: https://www.namibian.com.na/construction-industry-backs-court-decision-on-cement/