Source: Motor industry reboot to cut import bill – herald
Oliver Kazunga-Senior Reporter
ZIMBABWE is reviewing its Motor Industry Development Policy as part of efforts to reduce a vehicle and accessories import bill of US$700 million annually, revive local assembly operations and retain both industrial jobs and scarce foreign currency.
The review of the Zimbabwe Motor Industry Development Policy (2018-2030) comes amid growing concern over reliance on imported second-hand vehicles and automotive components, a trend authorities say is undermining domestic manufacturing capacity and placing significant pressure on foreign currency reserves.
Speaking at a stakeholder engagement meeting in Harare last week, Permanent Secretary in the Ministry of Industry and Commerce, Tadeous Chifamba, said the scale of vehicle imports presents a major opportunity for industrial revival through local production and value addition.
“Research has shown that Zimbabwe spends more than US$600 million annually on vehicle imports, largely second-hand vehicles, and a further US$100 million on automotive components,” he said.
“This presents significant opportunities for import substitution, local assembly, component manufacturing, industrial upgrading and investment promotion.”
The Motor Industry Development Policy serves as the Government’s strategic framework for reviving local vehicle manufacturing, stimulating downstream component industries and reducing dependence on imported vehicles.
The policy is aligned with the country’s industrialisation agenda under Vision 2030 and national development strategies.
Its targets include increasing capacity utilisation in the local automotive sector from about 10 percent in 2018 to full capacity by 2030, creating an estimated 20 000 direct and indirect jobs, and raising local procurement of automotive inputs from 10 percent to 40 percent through the sourcing of products such as batteries, glass and other components from domestic manufacturers.
Ambassador Chifamba said Zimbabwe could not afford to remain on the sidelines as the global automotive industry undergoes rapid transformation.
“The transition towards electric vehicles, smart manufacturing technologies, digitalisation, green industrialisation and resilient regional value chains is redefining global competitiveness and investment attraction,” he said.
“Countries that fail to adapt risk being marginalised from emerging regional and international automotive markets. Zimbabwe cannot afford to remain static.”
He noted that while the existing policy had promoted local assembly, component manufacturing, fuel development, technology transfer and investment attraction, evolving global trends now require a fresh approach.
“The review presents an opportunity to modernise the policy framework and ensure it remains responsive, forward-looking and aligned with emerging developments in the automotive sector,” he said.
Ambassador Chifamba stressed that the revised policy should position Zimbabwe as an active participant in regional automotive value chains rather than merely a consumer of imported vehicles.
The Government views the automotive sector as a key driver of industrialisation because of its strong linkages with mining, steel production, engineering, plastics, rubber manufacturing, transport, logistics and energy.
“In pursuit of Vision 2030, the motor industry, particularly vehicle and bus value chains, has been identified as a strategic sector with immense potential to drive industrial transformation, technology transfer, manufacturing capacity, value addition and employment creation,” he said.
The Government, working with the Zimbabwe Investment and Development Agency, continues to engage local and international investors to strengthen competitiveness in emerging areas such as electric vehicles, hybrid technologies and smart mobility systems.
“With targeted investments, strategic partnerships and enhanced private sector participation, Zimbabwe has the potential to reposition itself as a competitive player in regional automotive manufacturing,” said Ambassador Chifamba.
He added that the sector’s success would depend on collaboration among the Government, industry, financial institutions, academia, research institutions and development partners.
Government, he said, remains committed to creating an enabling environment for industrial growth through policy certainty, infrastructure development, investment facilitation, innovation support and industrial upgrading.
The policy review comes as Zimbabwe seeks to revive its once-thriving vehicle assembly industry. Companies such as Willowvale Motor Industries and Quest Motors have, in recent years, announced plans to resume or expand assembly operations as the Government intensifies efforts to promote import substitution and local manufacturing.
At their peak, local assemblers supplied thousands of vehicles annually while supporting a broad network of downstream industries. However, operations declined over the years due to economic challenges and growing competition from imported second-hand vehicles.
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