adminother countries that have vibrant motor industries, Health and Child Welfare Minister Dr Henry Madzorera has said.
He was speaking during the handover of 50 ambulances to his ministry by Willowvale Mazda Motor Industries in Harare on Friday.
“The future of WMMI and indeed other local vehicle manufacturers or assemblers lie in Government support and as Government we must work to come up with a vibrant motor industry development programme by taking a cue from what other countries are doing to develop and support this sector.
“I am also told that WMMI is currently operating at 10 percent capacity utilisation, at an average production level of 100 units per month yet in 1997, WMMI produced more than 8 000 units in a single shift a year,” he said.
Minister Madzorera added that this is due to a declining market share for new vehicles and also due to unfair competition from South African completely built units that enjoy a rebate which is a deliberate support by that Government to make their vehicles very competitive.
“In some instances I am told that the rebates can work out to as much as 50 percent,” said Minister Madzorera.
He added that the ambulances acquired by his ministry would be a boost to the delivery of health services in the nation as the sector is facing various challenges like lack of adequate equipment and capitalisation.
“For those who have been following media reports that WMMI had failed to deliver the remaining 30 ambulances, it is my pleasure to say that WMMI has been completing the assembly of the ambulances due to logistical challenges. I am advised by the WMMI management that the completely knocked down kits that had been placed for this job were delayed due to logistical challenges at the South African ports and rail authorities,” he said.
He added that the other challenge was shortage of glass due to the closure of the flat glass manufacturing plant in Mutare, which was unfortunately closed at the time WMMI had already confirmed orders with Mazda Japan.
In addition, the delay was also caused by the inability by Ford Motor Company of South Africa to supply chassis cabs of hi-riders which are required for the ambulances.
Minister Madzorera said these challenges are not only akin to WMMI but are challenges that local industry is facing and need to be urgently addressed by Government through the relevant ministry.
Deven Engineering, which is a “sister” company of WMMI, built the ambulance bodies.
Both Deven and WMMI are managed under Motec Holdings which is the Industrial Development Corporation of Zimbabwe Limited’s strategic business unit in the motor sector. Motec chief executive Mr Benjamin Kumalo commended the ministry for acquiring vehicles from their plant, which shows their support for the revival of the local industry and the creation of local employment.
“The transaction is also a clear demonstration of Government’s commitment to the indigenisation policy as the Indigenisation and Economic Empowerment Act requires that Government departments, statutory
companies and local authorities should procure at least 50 percent of their goods and services from indigenous Zimbabwe companies,” he said.
Mr Kumalo added that this transaction is in keeping with the Presidential Order of 2002 which directs that “all vehicles purchased by Government and by other public institutions (including parastatals) shall be procured from local vehicle assembly plants” in order to promote the development of the domestic automotive industry and in order to conserve foreign earnings.
Bongani Ndlovu
Online Reporter