Zimbabwe battery imports threaten 500 jobs

Zimbabwe's battery manufacturing sector has raised alarm over increasing imports, warning that more than 500 jobs and a critical industrial value chain are under threat as foreign products continue to erode the local market.

Speaking during stakeholder consultations on the review of the Zimbabwe Motor Industry Development Policy (2018–2030), Battery Manufacturers' Association of Zimbabwe president Mr Kudzai Pasipanodya said local firms are losing market share despite having sufficient production capacity to meet domestic demand.

He said the sector comprises two main producers — Central African Batteries (Pvt) Ltd and Chloride Zimbabwe, a division of ART Corporation — both of which have invested in maintaining production capacity above local consumption needs.

"Despite these challenges, the sector … had managed to maintain production capabilities of 45 000 batteries per month against an estimated demand of 28 000 batteries per month," Mr Pasipanodya said.

However, he warned that capacity utilisation has dropped sharply due to competition from imported batteries originating from South Africa, Botswana, Kenya and Asian markets.

"As the CZI manufacturing sector survey testifies, capacity utilisation … has dropped from a high of 75 percent in 2023 to 56 percent in 2024," he said.

The association estimates that Botswana exports between 4 000 and 6 000 batteries into Zimbabwe monthly, while South Africa supplies about 4 500 units and Kenya around 3 000 units, excluding lower-priced Asian imports.

The industry is now lobbying for a five-year import protection framework, including a ban on battery products already manufactured locally, arguing that this would allow companies to modernise and compete more effectively.

Mr Pasipanodya said the sector supports a wider industrial ecosystem that includes recycling used batteries, creating jobs and supporting environmental safety through proper handling of hazardous waste.

He said more than 500 jobs are directly tied to the recycling and distribution chain, while over 1 000 families depend on the two manufacturing firms.

He also argued that Zimbabwean manufacturers are competing under unequal conditions, pointing to export incentives in other countries.

"It is important to note that the battery exports from South Africa claim up to 30 percent as an export incentive… Zimbabwe has no export incentive at all," he said.

"This export incentive wipes out the protective duty of 30 percent that the sector is supposed to enjoy."

The association warned that continued import pressure could force local factories to scale down further or shut down entirely, pushing the country toward full reliance on imports.

"If this trend continues, the only option left will be to close the battery manufacturing businesses and the whole country resorts to importation," he said.

Despite current challenges, the industry says it is ready to upgrade its plants to world-class standards by 2026 if it receives temporary protection from imports.

"We believe in a free-market economy and are only seeking an additional ‘incubation' period to catch up on the lost decade," Mr Pasipanodya said.

The sector projects that with policy support, turnover could rise to US$30 million annually within two years, alongside increased exports and foreign currency savings through reduced imports.