Botswana bans imports of second-hand cars

THE Botswana government has banned imported second-hand vehicles with more than five years on its roads, casting a bleak future on Zimbabwean car dealers and individuals who import European vehicles via Walvis Bay in Namibia.

Hundreds of Zimbabweans have been collecting the cars from Namibia and driving them through Botswana.

According to a Namibian newspaper, NewEra, Botswana's customs, Botswana Unified Revenue Service (Burs), is now enforcing the Southern Africa Customs Union (Sacu) agreement that prohibits the use and registration of imported second-hand vehicles, which are more than five years old.

"Burs is now enforcing the Sacu agreement that prohibits the registration of imported second-hand vehicles older than five years.

"Burs, in the spirit of good neighbourliness and adherence to the provision of the Sacu agreement, wishes to assist Namibia in curtailing the irregularities prevalent in the movement of second-hand vehicles through the two countries," reads a report filed on 6 March.

However, the move would affect Zimbabwean car dealers and individuals as the directive means that cars would be imported at higher costs because they are now required to load the cars on carriers to the Plumtree Border Post.

The value used for the calculation of duty and tax is 86 percent of all charges and expenses incurred incidental to the purchase of the vehicle and its transportation up to the place of importation.

To make it cheaper, Zimbabwean importers used to drive from Namibia to Plumtree but now they would be forced to hire a carrier from Walvis Bay through Botswana to the border, which costs about $1 000 or $1 500 depending on the type and size of the vehicle.

"When they factor in the cost of ferrying the car from Namibia to Plumtree on that 86 percent import duty, that would mean a car will be more expensive," said Mr Wilmore Tipi, a city car dealer.

He said importing vehicles from Walvis Bay was now more costly and already some were opting to use the Durban port.

"Durban is closer than Walvis so logically that means cars from Durban will be much cheaper," said Mr Tipi.

He said the ban would trigger car price increases in the country in the near future.

"Importing cars from that side would be more expensive and therefore a dealer will be forced to increase the price so that he realises some profit, and that will put us in a fix" said Mr Tipi.

Another dealer, Mr David Katsande, said some dealers and individuals were now opting to import second-hand vehicles from Europe via Tanzania.

"Angola and South Africa are some of the countries that introduced the ban and this has resulted in limited car imports, Botswana will lose a bit of revenue following this ban but as dealers we will feel the pinch. We are still weighing our options so that we decide the way forward in order to remain in business," said Mr Katsande.

He said a car which used to cost $2 500 before the ban now costs approximately $3 800.

Botswana customs was quick to warn persons attempting to circumvent the ban that they would be subject to a fine of 40 000 pula or three times the value of the vehicles or imprisonment of not more than 10 years.

The Botswana government has also put up banners at all its borders notifying members of the public about the ban.