Phillimon Mhlanga
HARARE – GOVERNMENT has launched the Motor Industry Development Policy as it seeks to spearhead the revival of the once vibrant sector.
Zimbabwe’s motor industry is currently using less than 10 percent of its capacity and is relying heavily on imported vehicles to supply its market.
The policy, which covers the period 2018 to 2030, is based on five strategies-assembly of semi-knocked down and completely knocked down kits, government support, control of second hand imports, categorisation and regulation of the industry and the development of the motor industry value chain and cluster. The new policy comes nearly 30 years after the demise of the last industry policy called the Vertically Integrated Companies (VIC) policy, which was terminated in the early 90s after government embarked on the Economic Structural Adjustment Programme (ESAP).
Speaking at a breakfast meeting to launch the policy in the capital on Wednesday, Industry and Enterprise Development Minister, Mike Bimha, said government was keen to rebuild the industry, which over the past years has lost its dominance in supplying the local market with automotive requirements.
“There was a lot of debate in Cabinet about this policy and it was fully supported. It’s coming at an opportune moment where there is a new dispensation, which is willing to support the growth of this industry,” Bimha said.
“The policy is designed to take the motor industry to the next level by promoting local assembly and exports of motor vehicles into the region and the rest of the world as well as increasing capacity utilisation of car assemblers from current levels of less than 10 percent to 100 percent of utilised capacity.”
He added: “The policy framework will also promote utilisation of available local raw materials and components parts in the vehicle assembling process and will enable the industry to reequip and replace obsolete machinery through technological transfer ventures, thereby shielding the industry against unfair competition and stimulating local demand.”
President of the Motor Industry Association of Zimbabwe, Simplisio Shamba said: “The formulation of this guiding document marks the turn of our industry. We still have a lot of work to do because formulating the policy is one thing and implementing is another. We hope the Ministry of Industry and Enterprise Development will quickly draft the Statutory Instrument to enforce the implementation of the policy document,” he added.
Government is expecting the policy to encourage local and foreign direct investment (FDI) in the local automotive assembly and components manufacturing sector from zero percent to 10 percent of FDI by 2030.Zimbabwe’s motor industry is currently not exporting motor vehicles.
But, Bimha said the introduction of the policy framework will promote local assembly and exports of motor vehicles.
Government is expecting motor vehicles exports into the region to shoot up from zero percent currently to about 50 percent by 2030.
The motor vehicle industry is currently faced with a mirage of challenges including closure or downsizing of companies and downstream industries, external competition due to reduction of duties levels which resulted in the influx of second hand vehicles, foreign currency shortages and lack of financing from banks.
