Windhoek
RMB Namibia says it is delighted to have formed a strong Namibian partnership with Ohorongo Cement, owner of Africa’s most modern cement plant and the only one in Namibia.
The plant is described as one of the cornerstones of Namibia’s ‘Growth at Home’ and industrialisation strategies in support of the fourth National Development Plan (NDP4) and Vision 2030.
In a statement released yesterday RMB Namibia said it is proud to have been appointed as mandated lead arranger in the restructuring and Namibianisation of the funding package for Ohorongo cement, previously dominated by development banks, including the German Development Bank (DEG), the Development Bank of South Africa (DBSA) and Industrial Development Corporation (IDC).
The Development Bank of Namibia also played a critical role early on in the project, by taking an equity stake in Ohorongo Cement, which it has now increased with the restructuring. FNB Namibia also provided a N$100 million working capital facility for the plant start up.
RMB Namibia provided bridge funding of N$290 million to allow Ohorongo Cement to settle its European bank debt. Subsequently, RMB Namibia extended a N$350 million long-term loan to Ohorongo to make the project fully-funded from within Namibia. RMB Namibia also extended N$150 million in working capital to Ohorongo.
Ohorongo Cement does more than manufacture cement. A host of supplier businesses have emerged around the Otavi cement plant, ranging from bush-clearing to pallet manufacturing to transport and catering businesses, employing more Namibians than the 300 workers at the plant.
The FNB Namibia Group is engaging with Ohorongo on this greater “ecosystem’’, including fostering partnerships with joint corporate social responsibility projects aimed at changing peoples’ lives and creating a better world.
Ohorongo Cement was established in 2010 by Schwenk Zement International group, a German-based family group, to supply Namibia’s total cement requirements and cater for some exports to neighbouring markets.
The Namibian market has grown beyond expectations with double-digit growth in construction and large capital projects, benefiting the local cement industry. Export markets have also been developed in southern Angola, Zambia, the Democratic Republic of Congo (DRC) and as far afield as the islands of St Helena Island and Cape Verde.
Ohorongo’s success has also provided a boost to the booming Namibian construction industry and to large capital projects, like the Walvis Bay Port expansion, Husab Uranium Mine, Otjikoto Gold Mine, the Tschudi Copper mines, as well as the Neckertal dam – all projects of national significance.
RMB Namibia, a division of FNB Namibia Limited, is a corporate and investment bank and part of one of the largest financial services groups in Africa, the FirstRand Group.