25% drop in vehicle imports

Zimbabwe has experienced a 25% drop in the value of vehicle imports during the first five months of the year due to tight liquidity inflows, limited disposable incomes and high import duties.

The effect of a duty hike in used vehicles as well as some selected type of cars is being felt by industry and commerce as a result of the persistent drop in the values of imported cars.

According to trade data compiled by the Zimbabwe National Statistics Agency ( Zimstat) the period between January and June this year saw motor vehicles worth US$250 million being imported, a drastic decline from the same period last year where vehicle imports accounted for US$365 million.

Chartered Institute of Procurement and Supply Zimbabwe deputy chairman Mr Preston Hwena said the drop in the value of car imports means that high import duties are making it difficult to import cars.

"It is something we are really worried about because it might lead to a drop in terms of business activities," said Mr Hwena.

Harare Chamber of Commerce chairman Mr Mike Juru said the government should therefore ensure that the local car assembly and manufacturing sector produces high quality vehicle at affordable pricing models to take advantage of the drop in car imports.

"We should focus on the increase in terms of capacity to produce and export," added Mr Juru.

According to Zimstat in 2009, the value of motor vehicle imports remained constant around US$1 billion in 2011 and 2012 before it fell to US$717 million in 2013.

In 2015 the figures went further down to US$542 million as well as dropping to US$420 milllion by December last year.