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MUTARE’s vehicle assembling firm, Quest Motors, has started manufacturing its first line of Foton Tractors, with a target of increasing its capacity utilisation currently hovering below 10 percent. Quest Motors operations manager Mr Carl Fernandez said the firm had the capacity to produce 23 000 tractors per year and 105 vehicles per day.
The firm currently holds a franchise to manufacture various Chinese makes such as JMC, Foton and Chery.
Mr Fernandez applauded Government for the recent positive initiatives to boost the local manufacturing sector, particularly the vehicle assembling firms.
In his Mid-Term Fiscal Policy Review last Thursday, Finance and Economic Development Minister Cde Patrick Chinamasa increased the surtax from 25 to 35 percent on second-hand light passenger vehicles with effect from September 1.
In his preamble, the minister highlighted that the focus of his fiscal policy review would be on reducing competition between imports and local products to help boost local industry.
Mr Fernandez, however, added that with the raft of measures in place to steer industrial growth, implementation from Government was key to yield results.
“As the private sectors we are happy that policies and measures that encourage and support local industry are being put in place.
“We should, however, take a leaf from South Africa’s 1995 motor industry policy.
“The result was a tremendous growth in exports and to date the motor manufacturing sector is a multi-million dollar churner and one of the largest exports earners for South Africa,” said Mr Fernandez.
He said increase in capacity utilisation in the manufacturing sector was demand driven.
According to the Zimbabwe National Statistics Agency in 2014, out of the 4 000 newly registered vehicles, 92 percent were imported by Government and the remaining 8 percent by the private sector.
Mr Fernandez said only 12 vehicles were bought by Government at Quest Motors. He urged Government to lead by example in the Buy Zimbabwe campaign.
Last month, Quest Motors also started manufacturing its first line of the 65-seater Zhongtong buses, which it will call Quest “Q” Bus.
Plans are underway to start production of the latest range of the Mitsubishi Triton double cab, Mitsubishi Pajero Sport luxury 4X4 and 1,6 litre Suzuki Carry truck by September.
Mr Fernandez urged Government not to derail the set forward motion, citing that several companies had injected millions into revival initiatives.
“With regard to policies, I feel it is very important that Government follow through all policies.
“Most policies are being flouted due to rampant corruption of which most perpetrators are never brought to book.
“This we hope to see changing soon to discourage corruption and steer a growth trajectory in our economy,” said Mr Fernandez.
Confederation of Zimbabwe Industries Manicaland chairman Mr Richard Chiwandire said the manufacturing sector was an important pedestal to champion the high unemployment and liquidity constraints in the country.
“During the just-ended CZI congress, captains of industry agreed that the revival of the manufacturing industry is key to overturn the current economic woes in the country.
However, tariff protection should be a temporary measure as we are bound by regional and international trade agreements which is why it is important that the manufacturing sector unlocks competitiveness and makes use of such temporary measures by Government,” said Mr Chiwandire.
Africa University lecturer and economist Mr Thomas Masese, who was part of the CZI delegates at the congress, said the local procurement policy should be reinforced because increase in surtax alone was not sufficient to help the local car assemblers.
“The 35 percent surtax will mostly only help to raise more revenue for Government from Zimbabwe Revenue Authority collections.
“Procurement laws have to be reinforced especially on Government and since the sector is demand-driven, prices of vehicles will go down to affordable rates on the market for the general populace,” said Mr Masese.
Online Reporter