Source: Battery manufacturers warn imports threaten 500 jobs – herald
Oliver Kazunga
Senior Reporter
ZIMBABWE’S battery manufacturing industry has warned that more than 500 jobs and a critical industrial value chain are under threat as a growing influx of imported batteries continues to erode the market share of local producers.
Speaking during stakeholder consultations on the review of the Zimbabwe Motor Industry Development Policy (2018–2030), Battery Manufacturers’ Association of Zimbabwe president Mr Kudzai Pasipanodya said local manufacturers have the capacity to satisfy domestic demand but are increasingly losing ground to imports from South Africa, Botswana, Kenya and Asian markets.
He said the sector’s survival was now under serious threat despite having the capacity to produce more batteries than the local market requires.
“The battery manufacturing sector in the country consists of two companies, Central African Batteries Pvt. Ltd and Chloride Zimbabwe, a division of ART Corporation,” Mr Pasipanodya said.
“Despite these challenges, the sector, through innovation and other home-grown initiatives, had managed to maintain production capabilities of 45 000 batteries per month against an estimated demand of 28 000 batteries per month,”
However, he said the influx of imported batteries was steadily undermining local industry.
“As the CZI manufacturing sector survey testifies, capacity utilisation of the batteries sector has dropped from a high of 75 percent in 2023 to 56 percent in 2024, a clear sign that the influx of imported batteries is taking market share and threatening the viability of the sector,” Mr Pasipanodya said.
The industry is now seeking a five-year duty protection framework and a ban on imports of battery products already manufactured locally to allow companies to modernise operations and compete effectively against heavily subsidised imports.
Mr Pasipanodya said local battery manufacturers supported an extensive industrial ecosystem that extends far beyond factory floors.
The sector collects and recycles used batteries through a nationwide network of agents, creating employment for more than 500 people while contributing to environmental protection through the safe handling of hazardous lead waste.
“The two factories support +1 000 families, providing much-needed employment to the nation,” he said.
“A total of +100 people are directly employed in the distribution business.”
The local battery manufacturing also contributes positively to the country’s foreign currency position.
Imported raw materials used in battery production amount to an estimated US$2 million annually, while exports generate around US$3 million in foreign currency earnings.
Mr Pasipanodya argued that local producers were competing on an uneven playing field, particularly against South African manufacturers who benefit from export incentives.
“It is important to note that the battery exports from South Africa claim up to 30 percent as an export incentive, an initiative to support exporters in that country,” he said.
“Zimbabwe has no export incentive at all. This export incentive wipes out the protective duty of 30 percent that the sector is supposed to enjoy.”
He said imported batteries were often entering the local market at prices significantly lower than those prevailing in their countries of origin.
The association estimates that Botswana exports between 4 000 and 6 000 batteries into Zimbabwe every month, while South Africa exports about 4 500 units and Kenya approximately 3 000 units monthly, excluding lower-priced imports from Asia.
“As a result of the drop in capacity utilisation, the two factories are now struggling to survive and one of the companies is now operating in the short term,” said Mr Pasipanodya..
“If this trend continues, the only option left will be to close the battery manufacturing businesses and the whole country resorts to importation.”
To avert the collapse of the sector, the association has proposed a total import ban on batteries that are already produced locally, tighter border controls to curb duty-free imports and temporary protection measures to allow the industry to recover and modernise.
The industry also pledged to upgrade local plants to world-class manufacturing standards by 2026 if afforded the necessary protection.
“Upgrade the two factories to world-class factories by 2026, after which the duty structure will be gradually lowered,” he said.
“We believe in a free-market economy and are only seeking an additional ‘incubation’ period to catch up on the lost decade.”
Mr Pasipanodya said stronger protection measures would preserve jobs, support local suppliers and transporters, increase Government revenue and save the country significant foreign currency.
“The sector turnover can grow to US$30 million per annum in the next two years,” he said.
The local battery industry projects export growth of 15 percent annually over the next three years while saving the country more than US$9,2 million currently spent on imported batteries.
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