By Stephen Chandisareva.
Harare , Zimbabwe. (News Of The South) – Government has introduced a policy meant to support the growth of the motor vehicle industry through incapacitating local vehicle assembly and component manufacturing.
A draft copy of the legislation titled The Motor Industry Development Policy Framework, which is being prepared for Cabinet approval, aims to boost local assembly of vehicles to 70% from the current levels of below 10%.
Speaking at the re-opening of Willowvale motor Industries (WMI) on Monday, Industry and Commerce Minister Mike Bimha said that the policy was targeted at local and foreign investors.
“Investors want to know what the policy framework is for them to have confidence to invest. Without any policy they will come and say ‘what policy?’ And when we say we do not have, they will say ‘bye bye’ and go to other countries.
“It is more to encourage both local and foreign investors to go into the motor vehicle value chain. The policy does not just address the assemblers, it also addresses component manufacturers, those who can make components for cars. The moment you have policy framework then investors will see that there is some support and that it is sustainable for them to invest and make a return out of it, said Minister.
The vehicles are being assembled in partnership with Chinese car manufacturer BAIC and Willowvale Motor Industries (WMI).
Since 2012, the country’s biggest assembler WMI had ceased production, as the company could no longer sustain itself with the downturn of the economy and as such, this gave rise to second-hand vehicles that started pushing out local car assemblers and retailers.
The government plans to capacitate car assembly to 70%, with a goal of exporting cars in the region and earn the much-needed foreign currency.
Minister also said once the car production go up, the Motor Industry Development Policy Framework is expected to attract investors to partner car component manufacturers to support car assemblers in assembling fully-knocked-down car kits from their component level.
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