Maravi

(HERALD) Motor industry yet to submit indigenisation plans

Motor industry yet to submit indigenisation plans
Saturday, 19 November 2011 12:58
Business Editor

There is an outcry over Southern African regional cartels that are being created by some players in Zimbabwe’s motor industry, which is making it increasingly difficult for black people to participate in the multi-billion-dollar global industry, it has been learnt.

There are reports that some players in the largely white-dominated motor industry have not submitted their indigenisation plans to the National Indigenisation and Economic Empowerment Board (NIEEB) to allow for greater participation of historically disadvantaged blacks into the sector.

NIEEB chief executive officer Mr Wilson Gwatiringa told The Sunday Mail Business that “some players in the motor industry are still yet to submit their indigenisation plans while others have already done so.

“There have been submissions from the motor industry, but the pace is not the same as the other sectors. It has been slow. The motor industry is where we are now concluding consultations.

“As you may be aware, the Government, through NIEEB, set up sector-specific committees to make consultations on the best ways to implement the indigenisation policy sector by sector.

“The sectors which we have not gazetted any regulations for at the moment are being governed by the broader Indigenisation Act,” explained Mr Gwatiringa.

There is an outcry from motorists that, for example, local Mercedes-Benz importer Zimoco is making it increasingly difficult for them to acquire take-away spares for their vehicles from South Africa as they are now being referred back to go and buy from Zimbabwe.

Mercedes-Benz Mercurius Motors in Polokwane, for example, is no longer taking in Zimbabwean-registered vehicles for service and Zimbabweans can no longer buy brand new Mercedes-Benz vehicles from South Africa, but only through Zimoco.

Zimbabwe’s motor industry is largely white dominated, having benefited from the colonial era as they control most world-renowned brand dealerships and franchised service sites while the majority of black indigenous players in the sector are confined to fences along the city’s major roads selling second-hand cars from Japan, Singapore, the United Kingdom and battered locally assembled cars.

Many players in the motor industry are members of the Motor Trade Association of Zimbabwe (MTAZ) — which was first registered in 1933 and represents all sections of the motor industry and related trades.

Mr Gwatiringa said the NIEEB is “hopeful to conclude all consultations with the motor industry and other sectors by the end of this year. Come 2012, we will have sector specific regulations with timelines to comply with the indigenisation laws and we will enforce them vigorously”.

In February this year, South Africa’s Gauteng government and vehicle manufacturer Ford Motor Company of Southern Africa (FMCSA) launched a R100 million initiative to promote black-owned small and medium-sized (SME) enterprises development in the automotive industry.

This R100 million investment saw the establishment of South Africa’s first automotive broad-based black economic-empowerment incubation facility, as well as a production simulator, which would be used to augment Further Education and Training and other tertiary education institution’s technical capability in Gauteng.

Zimbabwe’s motor industry has, however, been too slow to transform in the post-independence era and open up to accommodate black people.

Experts opine that the auto industry globally is still developing, which means that in five to 10 years there could be strong competition on a global scale.

Market watchers view Zimbabwe’s automotive industry with immense potential and the next driver of the economy after mining if it is also opened up for greater participation of indigenous people in the mainstream industry than selling used cars.

Zimbabwe is the only country outside South Africa with an assembly industry which has the potential to benefit downstream industries such as manufacturers of motor components such as rubber belts, filters, spark plugs, body parts, automotive paints, rims, tyres, batteries, radiators, electrical wiring, bolts, exhausts, plastic bottles for engine coolant and water, glass, seats, brake pads and some other process materials.

However, black participation in the manufacture of automobile components has been almost non-existent and still largely white dominated as well and these are also members of the Automobile Component Manufacturers’ Association of Zimbabwe — a division of the Motor Trade Association of Zimbabwe.

Players are of the view that it is difficult to come up with a common position on the country’s automotive industry as members of the Motor Trade Association of Zimbabwe are well established and have interests to protect different from those of the Second Hand Car Dealers’ Association and also different from Willowvale Mazda Motor Industries, which is Government-owned and assembles Mazda vehicles.-The Sunday Mail

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), NIEEB

posted by MrK @ 5:22 PM