Motor industry reboot to cut import bill

The Government has launched a review of the Zimbabwe Motor Industry Development Policy (2018-2030) as part of efforts to reduce the country's annual vehicle and automotive components import bill, revive local assembly operations and stimulate industrial growth.

Zimbabwe currently spends more than US$700 million annually on imported vehicles and automotive components, with authorities warning that the heavy reliance on imports is weakening domestic manufacturing capacity and draining scarce foreign currency reserves.

Speaking during a stakeholder engagement meeting in Harare last week, Permanent Secretary in the Ministry of Industry and Commerce, Tadeous Chifamba, said the scale of imports presents significant opportunities for local production and industrial expansion.

"Research has shown that Zimbabwe spends more than US$600 million annually on vehicle imports, largely second-hand vehicles, and a further US$100 million on automotive components," said Chifamba.

"This presents significant opportunities for import substitution, local assembly, component manufacturing, industrial upgrading and investment promotion."

The Motor Industry Development Policy serves as the Government's strategic blueprint for rebuilding the country's automotive manufacturing sector, strengthening local value chains and reducing dependence on imported vehicles.

The policy is aligned with Zimbabwe's industrialisation agenda under Vision 2030 and seeks to increase capacity utilisation in the automotive sector from around 10 percent in 2018 to full capacity by 2030.

Government targets also include creating an estimated 20,000 direct and indirect jobs while increasing local procurement of automotive inputs from 10 percent to 40 percent through the sourcing of products such as batteries, glass and other components from domestic manufacturers.

Chifamba said the review comes at a time when the global automotive industry is undergoing major transformation driven by technological innovation and environmental considerations.

"The transition towards electric vehicles, smart manufacturing technologies, digitalisation, green industrialisation and resilient regional value chains is redefining global competitiveness and investment attraction," he said.

"Countries that fail to adapt risk being marginalised from emerging regional and international automotive markets. Zimbabwe cannot afford to remain static."

He noted that while the existing policy had encouraged local vehicle assembly, component manufacturing, fuel development, technology transfer and investment attraction, changing global trends require a more modern and responsive framework.

"The review presents an opportunity to modernise the policy framework and ensure it remains responsive, forward-looking and aligned with emerging developments in the automotive sector," Chifamba said.

Government officials believe the revised policy should position Zimbabwe as an active participant in regional automotive value chains rather than remaining primarily a consumer of imported vehicles.

The automotive industry has been identified as a strategic sector due to its strong linkages with mining, steel production, engineering, plastics, rubber manufacturing, transport, logistics and energy industries.

"In pursuit of Vision 2030, the motor industry, particularly vehicle and bus value chains, has been identified as a strategic sector with immense potential to drive industrial transformation, technology transfer, manufacturing capacity, value addition and employment creation," Chifamba said.

The Government, working with the Zimbabwe Investment and Development Agency (ZIDA), is also engaging local and international investors to strengthen Zimbabwe's competitiveness in emerging sectors such as electric vehicles, hybrid technologies and smart mobility solutions.

"With targeted investments, strategic partnerships and enhanced private sector participation, Zimbabwe has the potential to reposition itself as a competitive player in regional automotive manufacturing," he said.

Chifamba stressed that the success of the industry would require collaboration among Government, private sector players, financial institutions, universities, research institutions and development partners.

He added that Government remains committed to creating an enabling environment for industrial growth through policy certainty, infrastructure development, investment facilitation, innovation support and industrial upgrading initiatives.

The review comes as Zimbabwe seeks to revive a vehicle assembly industry that once played a significant role in the economy. Companies such as Willowvale Motor Industries and Quest Motors have in recent years announced plans to resume or expand assembly operations as authorities intensify efforts to promote local manufacturing and reduce import dependence.

At their peak, local vehicle assemblers produced thousands of vehicles annually and supported extensive downstream industries. However, the sector experienced a sharp decline due to economic challenges, reduced industrial capacity and growing competition from imported second-hand vehicles.

Government hopes the policy review will help reverse that trend and reposition Zimbabwe's automotive industry as a key contributor to economic growth, employment creation and industrial development.