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Wednesday, May 22, 2024

Measures to revive Zim’s motor industry value chain takes effect

Story by Stanley James, Business Editor

GOVERNMENT has taken further steps to revive Zimbabwe’s motor industry by enforcing measures to stamp out the importation of ten-year-old second-hand cars.

The latest Statutory Instrument issued by the Minister of Industry and Commerce, Honourable Mangaliso Ndlovu this Thursday, shows that the move that was mooted a few years ago is now operational.

The Statutory Instrument states that specialised vehicles such as haulage trucks, tractors and productive sector vehicles for use in manufacturing, mining, agriculture, retail and distribution are not included under the arrangement.

An economist, Professor Maclean Muzumara says the move by the government is among other factors being aimed at easing the huge car import bill averaging over US$400 million per year.

“In my analysis, it is all about easing the huge import bill of second-hand vehicles while further accelerating initiatives towards restoring confidence in the value chains so, basically, a lot still needs to be done in as much as Zimbabwe’s industry’s capacity to produce cars are concerned.”

With the revival of the local motor industry requiring a huge capital outlay, Professor Muzumara added that the recovery of the local industry depends on a competitive operating business climate that facilitates the production of quality cars at affordable prices that match regional and global markets.

“A lot still needs to be done to ensure that confidence is restored, however, the viability of the motor industry depends on the ability of the government to attract potential investors with the right capital and potential to produce cars that match modern trends at affordable costs.”

Zimbabwe has also introduced a motor industry recovery plan aimed at attracting local and external investors.

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