adminMINISTER of Finance and Economic Development, Cde Patrick Chinamasa, breathed life into the local motor assembling industry last Thursday when he increased duty on motor vehicles in his Mid-term Fiscal Policy review statement.
Cde Chinamasa said the 40-60 percent customs duty increase on the motor vehicles would complement efforts by the local motor industry which he said was “currently operating below one percent of installed capacity.”
He said imports of motor vehicles from January to June accounted for about 10 percent of the import bill which was money being spent outside the country at a time when the country was facing a dire liquidity crunch.
In July, the Minister of Industry and Commerce, Cde Mike Bimha, revealed that Government was working on a motor vehicle policy which would address the various challenges faced by local car assembling companies.
The push for Government intervention in the gloomy state in the motor assembling industry came after local motor vehicle assembling companies decried the lack of Government and corporate support in promoting their products.
The country’s leading motor vehicle assembling companies, Willowvale, AVM Africa and Quest Motors lobbied for Government intervention in the form of local procurement quotas.
Quest Motors managing director, Mr Tarik Adam last Monday said the increase in custom duty by Cde Chinamasa was a long overdue protective measure.
“We have been crying to Government to intervene and I am happy we are beginning to see action.
“It is my hope that we will see Government further supporting this initiative by enforcing the mandate on all parastatals and Government departments to buy cars locally.
“There are serious viability challenges for the local car assembling industry and we believe that if this is not addressed urgently this will lead to plant closures. This has adverse consequences to the fiscus and society,” said Mr Adam.
The Minister of State for Provincial Affairs in Manicaland, Cde Chris Mushohwe in June also decried the lack of Government and corporate support in promoting local motor vehicle assembling companies during a tour at Quest Motors.
Cde Mushohwe challenged his fellow Government officials to walk the talk on the ‘Buy Zimbabwe’ campaign.
“We talk of Zim-Asset (Zimbabwe Agenda for Sustainable Socio-Economic Transformation). Unless we transform it into action it will remain a paper policy. This plant (Quest Motors) and their creative initiations to resuscitate operations and keep people employed is part of Zim-Asset.
“This is what Government and the corporate world should support to revive local industry and make Zim-Asset a success.
“But it should begin with Government. Why should we buy imported vehicles when Willowvale Mazda Motor Industries and Quest Motors are folding, but producing vehicles equal to the task?
“We need to demonstrate as Government that we believe in our local industry and this is an appeal I shall take up seriously as we implement Zim-Asset,” said Cde Mushohwe.
Quest Motors is currently running a campaign: ‘Buy local, save jobs’ and has implored Government to think of the thousands that will be jobless if all the three major local assembly companies were to shut down.
Quest Motors is currently producing Foton, Chery and JMC vehicle models which they say are cheaper for the local market, but still equal to the task like any of the latest Toyota, Mazda, Nissan or any of the popular models trendy internationally.
Last year the plant also signed an agreement with a Chinese bus manufacturing company Zhongtong Pvt, the manufacturer of the Zupco buses, to manufacture their replica buses, but to see through the deal Mr Adam said they needed a complimentary and supportive market in place.
Online Reporter