Why Zimbabwe is banning the importation of vehicles older than 10 years

Mr. Speaker Sir, the motor vehicle sector used to be vibrant in the past due to consistent support of offtake agreements by the public sector. Also, due to a supportive tariff regime and limited insignificant pre-owned vehicle imports, to boost the local motor sector which has been suffering from the flood of cheaper imports, Statutory Instrument 54 of 2024 was enacted to ban used cars that are older than 10 years from the date of manufacture. By phasing out used cars by 2030, the Government hopes to boost the industry back to its previous levels when it sold 20 000 units per year. Protection of the local motor industry is aimed at promoting job creation in line with the National Vision 2030. I also advise Hon. Members to note that the motor industry sector in its time, particularly during the 1990s, employed more than 70 000 people and these jobs were distributed across a range of supporting industries which included the tyre manufacturing when Dunlop was a significant force. Glass production through Auto Glass as well as the production of exhaust fabrics, carpets suspension components and paint, to name a few.

However, a substantial decline of approximately 80% in employment has occurred across all subsectors due to the stiff competition the local assemblies are facing. The significant reduction has contributed to the closure of key companies like Dunlop and Auto Glass, the demise of downstream businesses within the value chain and the decline production at Willowvale Motor Industries and Daven Engineering. A company like Willowvale used to be a major employer that once operated with more than 2 000 workers that worked across three shifts and now has close to 10 workers remaining. Plans within the sector are to enhance value chains as several potential players are interested in entering Zimbabwe’s local motor industry value chain through manufacturing and assembling. This includes OEMs original equipment manufacturers such as Isuzu, VW, Toyota and Mercedes Benz who have expressed interest in collaborating with Zimbabwe due to the potential to source automotive steel for their manufacturing means from Dimson.

These OEMs intend to begin with component manufacturing and to train students at Polytechnic in Harare. This training programme will equip students with the necessary skills over four years after which they will be capable of commencing major manufacturing activities. By 2017, there were only 22 countries on the continent that did not have any restrictions with the aim of reducing trade and balance on second-hand imports. There were 27 countries on the continent with 8 restrictions. Approximately 664 million has been spent in 2023 alone on the importation of motor vehicles in this country.

I conclude by highlighting that the ban is part of the Zimbabwe Motor Industry Development Policy, which aims to revitalise the industry and create a more favourable business environment and the policy includes measures like pre-shipment inspections for imported second hand vehicles as part of regulating second hand vehicles to ensure they meet environmental and safety standards. I thank you.

HON. BONDA: Thank you for the comprehensive answer that I got from the Minister but contrary. I heard that this statutory instrument was meant to protect the motor industry protection. That is the part I quote. In this instance, we do not have any motor production in Zimbabwe at the moment. If I may reiterate what the President said, “no one shall be left behind” as far as development is concerned. What plan is there to accommodate the poor majority of this country who cannot afford to buy a car in cash from the motor dealers since there is no mortgage or any loans that is there to be facilitated by the local Zimbabweans to buy a new car in the country for the citizens especially the working class of Zimbabwe?

May I ask this question of saying, would the Government lose any income if they allow the cars that are affordable to the citizens of Zimbabwe and pay the duty as per the amount of car value for a car that would actually be declared into the country, so that everybody can be on the wheels? There is no development that can be there without transport.

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