Online Reporter
Theseus Shambare
GOVERNMENT is moving with speed to ensure the local automotive industry roars back to life, with plans underway to start assembling vehicles locally.
This ambitious drive seeks to plug the massive US$664 million hole that car imports punch into Zimbabwe’s economy annually.
Several major international Original Equipment Manufacturers (OEMs), including Isuzu, VW, Toyota, and Mercedes Benz have expressed strong interest in establishing operations in Zimbabwe.
This interest is partly driven by the potential to utilise locally-sourced steel from the Dinson Iron and Steel Company, fostering domestic value chains.
This comes barely a month after Zimbabwe and Belarus agreed on reviving the nation’s industrial sector through strategic partnerships, particularly in the assembly of buses and tractors.
The plan to kickstart local car assembly was revealed in Parliament last week during a debate on the Government’s recent ban on the importation of second-hand vehicles older than 10 years.
Industry and Commerce Minister Mangaliso Ndlovu said discussions were underway to establish domestic assembly plants, a development poised to reshape the automotive landscape and provide more affordable vehicles for Zimbabweans, while directly addressing the drain on the nation’s foreign currency reserves.
Responding to concerns raised by legislators, particularly Hwange West legislator Joseph Bonda, regarding the potential financial strain on citizens due to the import ban, Minister Ndlovu highlighted the stark reality of the nation’s reliance on foreign vehicles.
“Approximately US$664 million has been spent in 2023 alone on the importation of motor vehicles in this country,” he said, underscoring the economic imperative for local production.
He then offered a tangible prospect for more affordable vehicles.
“We will be able in the short-term to have a local assembly of private cars that will be in the range of between US10 000 and US18 000, with the finance institutions coming on board to allow for flexible terms,” he said.
This initiative, he said, is a critical step in revitalising Zimbabwe’s once-vibrant automotive industry, which has been significantly hampered by the influx of cheaper second-hand imports that contribute significantly to the annual import bill.
“The ban, enforced through Statutory Instrument 54 of 2024, is a crucial step towards protecting and rebuilding Zimbabwe’s once-thriving automotive sector.
“The automotive industry . . . used to be vibrant in the past due to consistent support of offtake agreements by the public sector.
“During the 1990s, it employed more than 70 000 people… contributing to tyre manufacturing (Dunlop), glass production (Auto Glass), and the production of various components,” he said.
The potential partnerships extend beyond mere assembly, with plans for component manufacturing and crucial skills development programmes at local polytechnics.
“These OEMs intend to begin with component manufacturing and to train students at Polytechnic in Harare… who will be capable of commencing major manufacturing activities,” Minister Ndlovu said.
