Mzembi defends $50 million vehicle order

TOURISM minister Walter Mzembi has defended the decision by his cash-strapped ministry to buy $50 million worth of vehicles from India’s Ashok Leyland, saying it would boost tourism.

“It’s basically a suppliers’ credit to the tune of $50 million and is meant to resource us, particularly in the area of domestic tourism,” Mzembi said on Friday.
He said the deal had just been concluded and that the loan would be repaid over a period of between 10 to 20 years at “nominal” interest.

Mzembi said the order included government vehicles, some for the Zimbabwe Parks and Wildlife Management Authority, game viewing equipment, luxury buses and school tourism buses.

“If we are going to do serious school tourism as we used to do in 1980, each province must have at least 30 buses,” he said.

Last week, Ashok Leyland announced on the Bombay Stock Exchange that it had bagged a contract from the ministry to supply 670 vehicles worth around $50 million.
Leyland manufactures buses, trucks, light vehicles and defence vehicles.

Mzembi’s ministry was allocated $6,1 million in the 2014 National Budget with the 2015 projected at $6,4 million. Its capex for 2014 was set at $340 000 and $410 000 in 2015.

The minister has previously said his ministry was the least resourced and accused the government of failing to understand the role of tourism in the economy.
He said globally, tourism generated $1,3 trillion out of 1,1 billion arrivals, with Africa’s share being only 4%. —The Source

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28 Comments

  1. it seems that any one who is allocated money for their work always thinks of buying cars, when these things devaluate so fast. in today’s world cars dont last more 5 years still in running in good condition. worst still people who are given these often misuse them. they are always for person business.

    1. There is nothing wrong with that because the vehicles a part and parcel of the tourism business, you can’t see the wild life on foot or else you become prey to the lions. Only AN IDIOT WOULD NOT UNDERSTAND THIS NEED.

  2. I support Minister Muzembi 100%,

  3. Its a good deal Ashok Leyland make very good vehicles, the question is how is the ministry going to pay back the money and will Ashok Leyland setup shop here in Zim coz this is a huge order and these vehicles will need to be serviced and maintained.

    These are the key things the Minister must answer.

  4. @reason no need to call anyone an idiot jus coz they have a diferet view to yours doesnt mean you “reason” beter.50 million yakawanda we are talkin usd.i agree with you ssss iyi yekungotenga mota ratodambudziko muzim

  5. What model vehicles? Leyland makes different models. Our national debt is already massive, should we increase it with car loans? and 20 years, really, we will be paying for them long after they are re-cycled sheet metal

    1. You can say that again Simba.Its a win win situation for the Indians because long after these vehicles have joined the scrap metal dumb-site the Zimbo government will still be folking out these millions which would have now escalated to billions due to high interest due to poor debt servicing.Our government decisions are fodder for case studies on HOW NOT TO MISMANAGE SCARCE RESOURCES: THE CASE FOR ZIMBABWE.

  6. How much did The Dr.who graduated from the unrecognized Linus University pocket for the deal. Who doesn’t know how corrupt he is. Remember the2m used screens he got in 2010 without going to tender? He woke up with two luxury buses from China.You persecute Muchechetere for evils Mzembi commits with wreck less abandon, no wonder why he confuses Makandiwa’s crowds with Tourism! President Mugabe is really short of people to appoint such a gums guma to cabinet!We hear in one of his wild dreams he thinks he will be President of Zimbabwe.

  7. @Terrence, 50 million yakawanda? ko Temba Mliswa ari kuchemera 165million ari one pasina any investment yaakaisa, regai vadye!

  8. Its a dam shame we couldnt have manufactured those vehicles here. Imagine the boost that would have given Willowvale and AVM!!

    1. You are partly right there but remember that this is a supplier financed order.WMMI will not give you such a deal.My only concern is whether other car manufactures were invited to tender?.Remember the ZUPCO Chines deals for buses that are still being paid for when they have disappeared from our roads ages ago?.It seems our government is so desperate for money that anybody who comes along with a deal they will just sign with no proper due diligence.

  9. This Mzembi boy is overrated I think Nhema was doing a fine job in that portfolio. He is now talking of religious tourism. I would want to know how many of our hotels would have made money from this after these events. Accept it you need more western tourists they spend more look at SA and Kenya their tourisim revenues are higher than Nigeria but you would think Nigeria is racking millions from religious tourism.

    1. Mwalimu, for merely telling the truth you risk being labelled a lackey of western imperialists.Look at the damage these people did to our tourism by turning thriving conservancies into small scale dubious projects run by well connected Zanu supporters.

      1. Let me be labelled a lackey but I’m African to the core and common sense must prevail, westerners loved our tourist attractions and we want their money isn’t that what business is all about .

  10. Well, vehicles are needed in tourism industry and I think its a good deal. I support the Minister though irregularities and corruption cannot be ruled out. I hope they will give some to National Museums who also support the industry by taking care of monuments such as Great Zimbabwe, Khami, Matopos etc

  11. in zim everything is now joke nothing new about how each minister thinks if he feels its good let him be we have nothing to loose as

  12. Uyu mupfanha anonzi Walter Mzembi is a confident waffler. He has been misleading the nation since the 2010 World Cup tourism debacle. Whoever thought only one “high profile tourist” would jet in in the remote Chiredzi safari and leave the nation waiting for the promised “spill over” tourists coming to ZW? He just talks too much, and his speculations are too theoretical and full of disastrous results.

  13. It is true that people cant watch wildlife on foot. what is needed is to know how the vehicles are used, as to how many to which conservatory. how they will increase the revenue. I smell a rat here, i believe the procurement is not objective. what really is the potential for our tourism and is transport the reason we are not utilising our potential? The tourism potential is not hamstrung by transport but other factors which the minister needs to adress not touch our eyes when he wants to be seen to be doing something rather than actually do something to improve tourism. Wena stop being wastefull.

  14. average of $74,000 per car????????????? suspicious

  15. surprisingly why India now when all the years we where using the all-time tested Toyota Landcruiser with a 1HZ or 2HZ engines which has a life span of 20yrs and also serviceable locally and readily available on the market. India at one time it supplied us with the TATA buses who still have it now. the idea of buying the trucks is all right but WHY from India when we have Toyota, Quest Motors, Croco Motors, to name just but a few, just give them the specifications they can produce something better than the Ashtok Leyland. Now my question is does the ministry have Game parks or are privately owned. why do you want to buy for them???

  16. Why not order some of those cars from willovale mazda can’t you see the company is collapsing

  17. my respect for you Walter ceases today!!!!! PERIOD

  18. at learst mari yashanda…..vamwe vanonyudza yose,

  19. why do you think vehicles will add to tourism as if the local market is not well resourced in that area,we have many tourism and car hire companies everywhere,and the number of zimbos with cars has grown ,so why would you think its important now to buy 50million worth of cars,unless you got a kick back.mzembi apihwa mari and we will finance this corruption

    1. Timothy Thorton

      Brilliant analysis Karakare, Problem yegovernment is that they think it must be the government perse which must do these things. It is sectoral who must be doing that. Safari operators must be borrowing to retool not ministry of Tourism.

      Ko ministry ingapiwa $6m iyo yondokwereta $50m. Ingadai yakango piwa $56m including the debt. Saka what is the purpose yebudget? Hais Tresury here inofanira kukweretera nyika? Hameno

  20. smells of corruption

  21. actual order 40 million.minister 5 million .other partners 5 million.transfer to my account or franchise shop to sell spare parts for leyland zimbabwe ..??!

  22. Surely this is very amazing! A loan which will be repaid over a period between 10 to 20 years at ‘nominal interest’ Could this be called visionary thinking??????? What can economists say about this. By the time this loan would be repaid the likes of Mxembi would not be there???? Longterm planning no longer works these days especially with the Zimbabwean economy which is nolonger predictable.What money was allocated to this ministry in the recent budget???? A person is remembered for two things; problems they have caused and problems they have (not) solved. There is only but one Mxembi.

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