adminNgoni Dapira Business Correspondent
MUTARE’s vehicle assembling firm Quest Motors is upbeat about the measures put into effect by Government to boost local industry in 2016, targeting a 20 percent increase in capacity utilisation in the first quarter.
Quest Motors operations manager Mr Carl Fernandes told Post Business that the company was looking forward to improved business following the measures outlined last year by the Finance and Economic Development Minister Patrick Chinamasa in his 2016 National Budget.
Minister Chinamasa enforced various measures to boost Governments depleted coffers and resuscitate the local manufacturing industry.
The Finance Minister with effect from January 1 removed selected motor vehicles and buses imported by Government and School Development Associations from the Duty Free Certificate facility, in order to empower the local motor industry and facilitate the implementation of the Cabinet circular Number 16 of 2011.
Cabinet circular Number 16 of issued by the Office of the President and Cabinet compels all Government entities to purchase motor vehicles from local assembly plants.
Nr Fernandes said Zimbabwe’s local motor vehicle industry had the capacity to manufacture light commercial vehicles and buses, but this had been slowed down by challenges that include limited access to working capital and unfair competition from subsidised imports.
He said challenges in the local motor industry have resulted in the country spending over $5,3 billion on car imports since 2009, according to the Zimbabwe National Statistics Agency.
“Business has been on the increase slowly since 2014 but this year we are even more upbeat as a result of the measures announced by Minister Chinamasa in his 2016 National Budget for our sector.
“We really need manufacturing industry to come up and create jobs. We hope the policy will be followed as we continue to call for the Buy Zimbabwe campaign and move from the imports syndrome,” said Mr Fernandes.
According to Zimstat the country’s trade deficit from January to November last year widened to $3 billion compared to $2.97bn in the previous same period, an indication that the country continues to rely on imports as local industry remains depressed.
Trade figures showed that exports amounted to $2,5 billion against $5.5bn imports, indicating the country’s continued reliance on imported goods as local industry remains depressed. Exports in the period under review were dominated by gold, tobacco, nickel and diamonds while imports comprised mainly of fuel, medicines, maize and vehicles.
Mr Fernandes bemoaned the country’s poor procurement policies that have seen both private sector and Government exporting jobs by importing vehicles instead of procuring from local assemblers.
According to the Zimstat 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.
He however noted there was an improvement towards the end of last year as they got some small business from Councils and various Government entities.
He urged Government to lead by example in the Buy Zimbabwe campaign to boost local companies which will in-turn augment its 2.2 million employment creation target by 2018.
Quest Motors last year picked up on production, introducing a number of new-line productions like the Zhongtong Quest Bus and Foton Tractors.
The company has slowly been up-scaling production since 2014 with targets to boost its capacity utilization to over 60 percent in 2016.
Plans are at an advanced stage 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.
Mr Fernandez said the firm had the capacity to produce 23 000 tractors per year and 105 vehicles per day.
Online Reporter