Ohorongo Sale Must Balance People and Profit

The announcement of the proposed sale of Ohorongo Cement to Whale Rock Cement, the operator of Cheetah Cement, has reignited concerns around economic concentration, community impact and corporate accountability.

As a citizen and academic engaged in governance and rural development, I believe this case provides a timely opportunity to examine the transaction through the lens of change management – specifically, the theoretical frameworks of ‘Theory E’ and ‘Theory O’ (Beer and Nohria, ‘Cracking the Code of Change’, 2000, Harvard Business Review).

Theory E emphasises economic value and often involves restructuring, layoffs and financial engineering.

Theory O is people-focused, emphasising organisational capabilities, culture and long-term sustainability.

Both theories have merit, but when applied in isolation, each has its limits.

CORE CONCERNS

The case of Ohorongo Cement reflects a tension between these two models.

The selling party, Schwenk Zement International GmbH & Co KG, appears to be taking a Theory E approach – focused on financial outcomes and divestment – potentially at the expense of social capital.

This has raised alarm among stakeholders at Otavi, including local councillors and business advocates. They claim previous promises to prioritise local buyers have been disregarded.

From a Theory O perspective, the heart of the matter lies in the broken relationship between the company and the community.

When Ohorongo Cement was established, it received support from the Otavi Town Council and fiscal incentives from the government.
In return, it was expected to contribute to local empowerment, employment and inclusive economic development.

Selling to an entity already owning a competitor, without public disclosure or offering Namibians a chance to buy in, violates the spirit of mutual growth.

The public outcry is not only about ownership, it’s about trust, accountability and economic justice.

As activist Johannes Johannes said, many locals, especially unqualified youth, have benefited from employment opportunities at the plant.
The potential merger now threatens those livelihoods.

The merger could also compromise market competition and lead to price manipulation in the struggling construction industry.

If this transaction is approved, Namibia could face a de facto cement monopoly – precisely what the Namibia Competition Commission blocked in 2020.

NATIONAL VALUES

Beyond market dynamics, the merger poses a risk to national sovereignty over strategic resources essential to infrastructure development.

Theory O reminds us that long-term organisational success stems from engaged employees, inclusive growth and strong community ties.

The solution is not to reject business evolution but to ensure it aligns with national values and stakeholder promises.

The public offer route proposed by Grace Moham of Global Business Development would give Namibians a fair chance to invest, ensuring that ownership and benefits remain, at least in part, within our borders.

In conclusion, Namibia must tread carefully.

We must find an approach, that balances financial imperatives (Theory E) with long-term national interests (Theory O).
This is not just a corporate sale.

It is a question of who we want to be as a country: A nation driven by short-term profits or one committed to sustainable, inclusive development.

– Mike Kamati is a vocational education and training trainer. He holds a postgraduate diploma in rural development and management.

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