Zimbabwe govt defends car import ban

The import ban on vehicles older than 10 years, which came into effect in January 2022, is part of Zimbabwe's strategy to protect and revitalize the country's motor manufacturing industry, which has been struggling due to competition from cheaper imported used cars.

Industry and Commerce Minister Mangaliso Nqozitha Ndlovu made the remarks last week in the National Assembly while responding to questions from legislators during the question-and-answer session. Minister Ndlovu explained that at its peak in the 1990s, the local motor industry employed more than 70,000 workers. However, the sector has witnessed an 80 percent decline in employment across its sub-sectors due to stiff competition from the influx of second-hand vehicles.

"At its height, the automotive sector was the cornerstone of Zimbabwe's manufacturing industry, but over time, it has faced severe challenges," said Minister Ndlovu. "Currently, it is operating below five percent capacity utilization compared to 90 percent in its prime."

The Minister's comments came in response to concerns raised by Hwange East legislator, Mr. Joseph Bonda (CCC), who questioned the import ban at a time when local motor manufacturing was not fully functional to meet demand.

Minister Ndlovu explained that the government's decision to phase out the importation of vehicles older than 10 years by 2030 is aimed at stimulating the local industry. The policy aims to boost the number of units sold annually, which used to be around 20,000 before the sector's decline. By protecting local manufacturers, the government hopes to create jobs and support Zimbabwe's broader economic goals, as outlined in the National Vision 2030.

"In the 1990s, the motor industry employed more than 70,000 people, and these jobs spanned various industries, including tyre manufacturing, with companies like Dunlop being major players," said Minister Ndlovu. "The ban is part of a broader policy initiative to regenerate the local motor industry, and it includes measures such as pre-shipment inspections for imported vehicles to ensure compliance with environmental and safety standards."

The Minister also highlighted the financial burden of vehicle imports on the economy, with Zimbabwe spending an estimated US$664 million on vehicle imports alone in 2023.

The import ban and other supportive measures outlined in the Zimbabwe Motor Industry Development Policy are designed to create a more favorable business environment, stimulate local manufacturing, and ultimately provide sustainable employment opportunities for thousands of Zimbabweans.