Bulawayo, (New Ziana)-The Zimbabwe government is committed to support the growth of the local vehicle manufacturing and industry in general, through import relief measures such as those announced in the 2025 National Budget, a Cabinet Minister has said.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said this during a post budget meeting which the Confederation of Zimbabwe (CZI) held in Bulawayo recently.
He was responding to comments by Bulawayo Business Forum representative and banker Herry Heresy, who had urged the government to stop importing vehicles and direct the funds towards promoting and developing the local motor industry, which he said has the potential to create jobs and stimulate economic growth.
Heresy had pointed out that over the last 24 months, the government had spent an estimated US$1 billion purchasing vehicles directly. “But here is the reality, all of those vehicles are imports,” he had said.
“In contrast, when we look at China, it is the Chinese government that takes the lead in supporting local production. Therefore, we must prioritize our efforts to develop and integrate our own industry.”
He had cited the example of the Chinese government, which supported electric vehicle manufacturer BYD, which has sold more cars than Tesla, the company founded by United States business tycoon Elon Musk.
“But how did the Chinese achieve this? Since 2009, they have invested approximately US$26 billion in the electric vehicle industry. Moreover, even when the products were still in their early stages, the Chinese government stepped in as the first customer.
“What key lessons can we learn from China? First and foremost, the responsibility for creating and sustaining an industry within an economy rests primarily with the government,” heresy had said.
In response, Prof Ncube acknowledged the government’s role as an economic agent in stimulating the local industry and creating demand for specific products.
“I agree with you. You are right that when you look at the EV car industry, the government of China has been very supportive of that sector, and these companies have really benefited from that. As a government, we need to do the same,” he said.
He said he had attempted to introduce the idea in 2018 but faced significant opposition, which made him unpopular.
“You recall a few years ago, when I tried to introduce that idea for Parliament and government vehicles in 2018,” he said.
“I heard so many comments, and there was resistance. I was told that locally manufactured cars have low clearance and so on. So, in the end, the issue died a natural death. But this time around, I am determined that we invest in the local industry, support our companies through relief measures that we have announced, and then impose duties on bus imports.
“Let’s support the local industry and create jobs. I think they will be happier to see our industry in this sector bouncing back.”
Meanwhile, Heresy welcomed the government’s decision in the 2025 budget to suspend duties on semi-knockdown kits but expressed concern about the two-year timeframe, stating that it was insufficient for investors to establish their businesses and recoup their investments.
“Minister, your decision to suspend duties on semi-knockdown kits is commendable, but you have only allocated two years,” stated.
“For an investor looking to make a significant commitment in this sector, two years is simply too short. It doesn’t allow enough time to conduct a Feasibility Study, secure funding, set up operations, and recover costs.” Heresy urged the government to extend the timeframe to give investors the opportunity to plan and recoup their investments.
“We need to adopt a longer-term perspective when considering these initiatives,” he said. He pointed out that without sustained demand from the government, it will be challenging to develop the semi-knockdown kit industry into a robust secondary industry.
“The government must be the first customer. Why are we purchasing German cars? When you consider the Germans, it’s a challenge for them to drive French vehicles. Similarly, the Russian government would never choose French cars. Why are we missing the chance to build our own industry and localize that $1 billion expenditure, creating sustainable demand within our economy?” Heresy asked.
New Ziana
