A SENIOR government official has insisted there will be no review of the controversial ban on imports of used cars saying the decision would bring long-term benefits to the economy.
Environment Minister Francis Nhema announced the import ban on cars aged five years or more in August, arguing Zimbabwe could not continue to be a dumping ground for vehicles banned in their countries of origin.
“We have a duty to save lives, protect ourselves and our environment,” Nhema was reported as saying then.
But a public backlash over the decision prompted Deputy Prime Minister Arthur Mutambara to promise a cabinet review quipping: “As government, we need to apply our minds before major policy announcements."
Industry operators had argued the ban did not make sense because most ordinary people relied on used vehicles while local manufacturers struggled to meet demand and supply vehicles are affordable cost.
Again with the Zimbabwe Revenue Authority (Zimra) reportedly clearing at lease 400 vehicles per day, government revenues were going to be hit hard as the ban would reduce import duty which was charged at over 100 percent.
Still, the permanent secretary for the Transport Ministry Allowance Sango told state media there was no going back on the import ban.
“The major aim of the ban was to ensure that the vehicles that are imported have residual value that will benefit the importer, users and the economy of Zimbabwe,” Sango told the Sunday Mail.
He claimed studies had shown that there was no value to be derived from vehicles importing vehicles that were five years old adding most second-hand vehicles frequently broke down.
Sango insisted government was keen to build a national vehicle fleet that was less susceptible to breakdowns and accidents.
He added that government had taken not of public concerns that the ban would stoke up new vehicle prices in the country and would work towards boosting production in the local motoring industry.
“Productivity in the local motoring industry will be analysed so as to come up with strategies that will gear it towards meeting the envisaged increase in demand for vehicles,” Sango said.
“However, Government support coupled with private sector participation (PPPs), especially the financial sector, should form the cornerstone of the strategy.”
He said Government would also establish bilateral arrangements to set up new vehicle plants.