Cement import restrictions kick in
Mbongeni Mguni | Monday August 4, 2025 06:00
Through a statutory instrument, government will from August 1 restrict the importation of 50 kilogramme pre-packaged cement, as a way of boosting local production and the associated value chain.
The country ‘consumes’ about 650,000 tonnes of cement annually, of which 450,000 tonnes is supplied by Namibian and South African producers into the country in 50 kilogramme packets directly into retail. The country’s three producers, meanwhile, could potentially meet demand, especially after planned expansion works, but distribution is hampered by logistics, particularly rail.
Trade and Entrepreneurship minister, Tiroeaone Ntsima, told BusinessWeek that government was willing to be accommodative as consumers adapt to the changes.
“We are not going to fully impose restrictions on importation and we will allow them to exhaust what we have and also allow for importation,” he said.
“We will be monitoring the situation and those who need to apply for imports can always come to the ministry to apply for a licence.
“Our intention is to ensure that our cement manufacturing industry is able to meet the demand.”
Ntsima expressed hope that “in a short space of time” local producers would be capable of supplying the country’s entire demand.
Nkosi Mwaba, the Botswana Cement Manufacturers Association (BCMA) chairperson, said local producers have been working closely with government ahead of the statutory instrument coming into effect.
“The industry association as well as the Ministry of Trade are well aware of and anticipate some inevitable logistical factors to consider in the practical and realistic rolling out if the instrument’s implementation plan.
“The BCMA, having concluded its submissions and final engagements with the government towards the 1st of August 2025 implementation date, awaits finalisation of a proposed transition plan.
“This transition plan will include conditional importation through a permit system provided there is a clear indication of the absorption of local production volumes,” he said in an emailed update. Mwaba said whilst the BCMA supported the restriction on imports, there was need to avoid major supply disruptions in the market.
“As the BCMA, we would not want to see a major disruption of supply in the market and we would like to assure stakeholders in the value-chain that the transition plan will factor in all possible bottlenecks, particularly in the current logistical infrastructure which admittedly does have bottlenecks and limitations that will take some time to fully resolve,” he said.
Local producers, however, are confident of soon rising to the occasion, with one manufacturer significantly expanding production, whilst a South African firm is reportedly setting up a plant in the country as a result of the import restriction. Mwaba described the two developments as an example of local and foreign investment into the economy, as a result of a legal amendment.
“We understand and respect that businesses need predictability in order to plan for change accordingly.
“We understand the operational and cost implications involved which is why the government has agreed to a transitional approach.
“We are also alive to the fact that there needs to be access to product at all times,” he said. The import restriction is designed to boost the growth and development of the cement industry in Botswana, creating jobs for Batswana and aiding in the diversification of the economy.