Online Reporter
Zvamaida Murwira-Senior Reporter
The import ban on vehicles older than 10 years, which came into effect in January 2022, is meant to protect and revive the country’s motor manufacturing industry which has been affected by cheaper used cars, legislators have heard.
Industry and Commerce Minister Mangaliso Nqozitha Ndlovu said at its peak in the 1990s, the motor industry employed more than 70 000 workers, but there has been an 80 percent decline of employment across sub sectors due to stiff competition faced by local assembling firms.
Minister Ndlovu made the remarks in the National Assembly last week while responding to enquiries from legislators in the question-and-answer session.
Hwange East Legislator, Mr Joseph Bonda (CCC) sought to be apprised on the import ban for 10-year second-hand vehicles at a time when the local motor manufacturing industry was not fully functional to meet demand.
Minister Ndlovu said the automotive industry, which used to be the cornerstone of the country’s manufacturing sector and the economy at large, faced challenges in recent years that saw it operating below five percent capacity utilisation from a peak of 90 percent.
He said some of the major challenges included heightened competition from imported used vehicles.
“By phasing out used cars by 2030, the Government hopes to boost the industry back to its previous levels when it sold 20 000 units per year. Protection of the local motor industry is aimed at promoting job creation in line with the National Vision 2030.
“I also advise members to note that the motor industry sector in its time, particularly during the 1990s, employed more than 70 000 people and these jobs were distributed across a range of supporting industries which included the tyre manufacturing when Dunlop was a significant force,” said Minister Ndlovu.
He said at least US$664 million was spent on vehicle imports alone in 2023.
“The ban is part of the Zimbabwe Motor Industry Development Policy, which aims to revitalise the industry and create a more favourable business environment and the policy includes measures like pre-shipment inspections for imported second hand vehicles as part of regulating second hand vehicles to ensure they meet environmental and safety standards,” he said.
