Willowvale Mazda Motor Industries (WMMI) has welcomed moves to remove duty for capital equipment under the Zimbabwe Industrial Development Policy as this will make locally assembled cars more competitive.Â
The local car assembling plant, which is facing challenges induced by foreign vehicle imports and the high cost of machinery, is optimistic that the implementation of the new Industrial Development Policy will lead to a reduction in investment costs required in the sector.
WMMI Managing Director, Engineer Dawson Mareya told ZBC News that the high cost of capital equipment has hampered development of the motoring sector and a deliberate policy to stimulate the sector will add value.
The motoring industry was not recognised as a priority during the launch of the Industrial Development Policy, although it received mention as one of the key stimulants for industrial growth.
Engineer Mareya said stakeholders should now establish a shared vision for the sector, establish a legislative framework and set time frames to achieve agreed objectives.
The cost of jigs for the assembly of a single make of vehicles is as high as US$1 million in Zimbabwe, making the end product three times more expensive than imports.
The four year Industrial Development Policy launched last week, seeks to transform Zimbabwe from a producer of primary goods into a producer of processed goods and sets out to review import tariffs for industrial raw materials to level the playing field for local goods to compete with imports.