Govt moots second-hand vehicles ban

GOVERNMENT will phase out the importation of second-hand vehicles from the market to allow the local motor industry to grow, as the cost of these vehicles is now chewing an average of $454,77 million in foreign currency a year.

BY TATIRA ZWINOIRA

The phasing out of the second-hand vehicle imports is part of the Zimbabwe Motor Industry Development Policy (ZMIDP) covering this year to 2030 launched yesterday, as part of a strategy to support the local motor industry.

Speaking at the launch in Harare, Industry, Commerce and Enterprise Development minister Mike Bimha said a gradual approach would be adopted to phase out these vehicles.

“A gradual approach will be adopted to eliminate second-hand vehicle imports into the country through the use of fiscal measures. Under the same strategy, a pre-shipment inspection policy for second-hand vehicles will be adopted. The policy will be benchmarked with international best practices,” he said.

Bimha said the ZMIDP already had Cabinet approval and that it would soon be implemented once other necessary processes are done.

In 2016, the cost of second-hand vehicles in terms of foreign currency was $240 311 411, according to the Zimbabwe National Statistics Agency (Zimstat).

The cost of importing second-hand vehicles from 2006 to 2016 according to the Zimstat was $5 002 471 434 in foreign currency.

In the ZMIDP report, the Central Vehicles Registry (CVR) reported that the first quarter of 2017 saw 14 470 second-hand vehicles imported into the country. In total, statistics from CVR found that since 2007 to the end of the first quarter of 2017 at least 510 275 second-hand vehicles have been imported into the country.

“During the period 2000 to 2017, the country experienced economic challenges. This period also witnessed a shift in government policy that reduced import duty for Completely Built-Up units (CBU). The duties were reduced to a level where they no longer countered the heavy subsidies enjoyed by neighbouring countries,” the ZMIDP reported.

“This resulted in a shift from locally assembled vehicles to imported CBU vehicles and an influx of imports of second-hand vehicles at the expense of the local assemblers and local component manufacturers.”

Of the over 1,4 million vehicle population, second-hand vehicles constitute between 35% and 50%.

For years, local motor industry players have complained about second-hand vehicles hindering their business.

Motorists have favoured second-hand vehicle imports due to the affordable prices which on average range between $3 000 to $7 000 in total to import into the country whereas new vehicles of the same make range from $10 000 to $20 000.

In line with this, the ZMIDP will look at getting banks to offer credit terms to motorists in order to buy new vehicles locally.

Zimbabwe’s market for new vehicles has thus shrunken over the years from the highest levels of over 20 000 units per year in 1997 to less than 3 154 last year.

The major objectives of the ZMIDP include encouraging both local and foreign direct investment in the local automotive assembly and components manufacturing from 0% to 10%, of total foreign direct investment by 2026, promoting local assembly and exports of motor vehicles and to look at exports into the region from 0% to 50% of total local production by 2026. It seeks to increase capacity utilisation of car assemblers from the current levels of less than 10% to 100% of installed capacity by 2026.

35 Comments

  1. Kungovukura uku….The costs of loans and pricing model will always hinder this

  2. How about also phasing out second hand ministers !! That might work as well..

    1. @Zimguy…..Good observation.

  3. Matebele Warrior

    Kkkkkkk , nice one Zim guy and second hand Presidents from coups

  4. thats denying government votes come election time.

  5. dont force us to buy the vehicles you will be making at willowvale.Compete with the rest not to ban.

  6. kkkkkkkkkkkkkk, Zimbabwe can never have a profitable motor industry if it cannot export the manufactured vehicles.

    Why should Toyota establish a manufacturing plant in Zim in order to sell 10000 vehicles per annum only?
    There are no economies of scale to talk about in the Zim motor industry market and there is no competitive advantage either.

    We don’t have to manufacture everything, why not concentrate on other areas of the economy that have potential to bring in a lot more forex to enables us to buy new vehicles e.g steel, minerals, agroprocessing,

    1. Excellent observation

  7. The number of people who can afford NEW vehicles is very limited unless you are a govt minister maybe.
    The average person has no option but to buy these cheap imports.
    The government is not being realistic.

  8. Vazvimbirwa ne mari dzedu manje. badakiwe kukhanya zangani bafuna ukudriver bodwa the rest should be reduced to povo that is easy to manupulate

  9. Everyone wants to cruise in those SUVs but the economy does not permit. My feeling is that this gvt wants to create a circle of elites who can afford and phase out all the poor majority to the back of the streets. They should start by phasing out 2nd hand individuals in the gvt, as well as 2nd hand legislation.

  10. Minister Bimha be realistic. How do you intend to quench foreign currency crisis when you have a motor industry in Zimbabwe which is basically selling cars to locals using bond notes? How will that bring foreign currency or save foreign currency? Do we have reserves of foreign currency in Zimbabwe? Stop politicking and be realistic.

  11. WMMI is failing to meet the demand. They have a backlog. Vatanga kuda kudya navanhu. Havana mari vanoda kuwedzera DUTY. We now Know them. Makavachani

    1. these vehicles locally produced are very expensive to ordinary civil servants

  12. education does not mean intelligence. kuti ototi mamwe ma decision arikubva kupi unozvishaya. kungo vukura-vukura. law of demand

  13. Mr Bimha stop taking hard stuff….u and yo fellas get free vehicles…citizens are trying to live an average life and as usual ure wnt to surpress us.

    1. juss like Mavhima, hezvo court yakazomudzidzisa kutarisa both sides of issues. hapana chozikamwa mazidofo

  14. its problematic when you dont see the bigger picture. No one will choose to buy second hand japannese car if they have money to buy a brand new car. this decision is coming from people who are given free good FORD RANGERS. Do you try to calculate how many years an ordinary teacher, nurse, police officer will take to save $ 12 000 when getting this $450 salary. Be realistic and stop thinking from your own bracket. Or else just say hatidi kuti vanhu vatenge mota chete

  15. Really i dont understand these ZANU thieves. they think that if they are stealing from the state coffers then everybody else is also stealing.how can u expect a person who is being paid a meager salary of 400 bonds to buy a car worth 20000 us dollars.They must stop stealing and corruption and increase the salaries of hard working zimbabweans. THAT is bullshit Bimha.

  16. Matanga vana Mike .Zimbabwe is no longer open for business.Continue to persue such policies and Zanu PF will lose.let the industry compete on the open market.Makuda kutidzorera ku Willogate hamunyari.

  17. there is need to change old business models and adopt new business models by the Zimbabwe motor industry that would see easy capacity utilization and a smart way of competing against the influx of imported vehicles

  18. I THINK MINISTERS MUST DECIST FROM SMOCKING OR DRINKING SOMETHING BEFORE THEY REPORT FOR WORK. FOR STARTERS LETS MOVE AWAY FROM THE SPIRIT OF BANNING THIS

  19. ME DID YEAR NEW MORE SIR

  20. the gvt imported vehicles for the chiefs. they want the poor zimbabweans to buy locally so that they use that money tro import again for the ministers. thats some trash

  21. Minister Mike Bimha idofo. Just try it. Mavhima tried his lucky last week and tested his medicine.The whole of Africa is importing second hand cars. The Dictator is back.

  22. Banning vehicle import at the moment is not prudent. The idea is good but it must not be implemented at the moment.These guys must be devising means of equalising our local prices with the regional prices.

  23. In your policy making bear in mind a govt teacher who is earning $450 when will he be able to buy a car in your new motoring policy.Also remember the second hand imports are paying 100% duty to the govt. Why not use part of that money to help local motoring industry?

  24. Mr Minister I think you are becoming insensitive. Do you throw away your govt vehicle after 5 years? because the not so privileged general populacy go as far Japan to find such vehicles which they have no privilege to get in their current thankless govt positions. You drive a brand new car for free. You are given it after 5 years that’s fine. But if you now want to stop a teacher from owning a vehicle because you are sitting pretty in high office is unfair.

    First make the roads good; improve govt salaries then upgrade vehicles travelling in Zim roads. You don’t start with upgrading vehicles when the roads are deplorable. address the roads first. then income then vehicles. 100% duty is deterrent enough. If the motoring industry cannot thrive with such a barrier of industry entry then leave them to rot.

  25. Mr Bimha I think some of your decisions are based on thinking about the elite only. Or you are trying to make business out of the local motor industry. You must have been given kickbacks by the local motor industry hence your useless utterances.You recently imported brand new cars for chiefs,didn’t you know that the local motor industry exist in Zimbabwe. You are very funny. You want the ordinary citizens to buy locally while you are buying from outside the country. Let the people choose where they want to buy. Local industry should compete regionally in terms of pricing. Or maybe you are driving to have a closed economy

  26. Zviitei tisati tavhota muone,

  27. Oh what a selfish contemplation of a policy! There is truth in the often made statement that African politicians believe that hungry people are always easy to manage. There is a dire need for people in this country to have transport of their own in the form of cars. Ambulances in rural areas are a scarce commodity. People are suffering and are desperately in need of transport for even to ferry the police around to places of crimes they have reported to the same police because there are no government vehicles for police to use. Ministers and other parliamentarians drive brand new Range Rovers and chiefs are given brand new Isuzu Double cabs. It’s the ordinary people who have to suffer and be expected to order brand new cars – an unrealistic and elusive acquisition by the poor citizens. What car industry can satisfy the demand for cars in Zimbabwe since the whole supply goes to chefs – parliamentarians, chiefs and ministers. Do our political leaders care at all about the masses? No? In Africa, politics is business. This is an undeniable fact! That is why they want to ban the importation of second hand cars that can be afforded by the populace.

  28. Oh! What an insensitive and selfish policy! The often made statement that African politicians believe that hungry people are easy to manage and they will always strive to make their people hungry is true. People in this country and are in dire need of transport in the form of their own cars. There are no ambulances is rural areas. People need their own cars even in towns to ferry around the police to places of crimes reported by such people because people have no cars to visit scenes of crimes. What car industry can be protected in this country, really? All the new cars assembled would be allocated to the Ministers and other parliamentarians, the brand new Range Rovers and brand New Isuzus are given to chiefs. Is there any thought for the common citizen who can ill afford a new car? No! It’s also true that in Africa, politics is business.

  29. kkkk, These Africans governors… They all have the same mind. Benchmarking what will not help their own people.
    Hope they could do the same in agriculture, mining industries and so on… We are facing similar problem in Mozambique, or even worse. The cars are only assembled here, is this what they call local? It is not local, it is totally Chinese, only the name is ours. “Matchedje”. The quality is not good, the price is high.

    ….

  30. To me the minister wants to protect a dead motor industry which will never meet the needs of second hand car importers. Our local industry make cars which cost above $30 000 yet local guys with $500 salary a month are looking for a $5 000 vehicle.Please don’t scorn the poor with an elite policy. How do you intend teachers to drive cars with their current salaries?

    Some of the motor industry players you want to protect are pseudo manufacturers. You forced parastatals to but from Willowvale Mazda Motors only for Willowvale Mazda Motors to go and import already assembled BT50 4×4 vehicles. is this reviving the industry. This is anti-progressive.

    May the govt be content with the 100% duty on second hand vehicles and put its focus on other needy areas. With such high duty if the local motor industry cannot compete let it die for its dead anyway.

  31. You want people to drive brand new cars do we have roads in which brand new cars can travel in?

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