Zimbabwe encourages local vehicle assembly
Government aims to revive motor industry by reducing import duties on vehicle kits.
Zimbabwe is encouraging the local assembly of vehicles to boost its economy. The government has supported the importation of completely knocked-down kits to reduce the cost of finished vehicles. This policy aims to restart idle factories in the motor industry.
The 2021 National Budget Statement outlined plans for duty-free importation of completely knocked-down kits. This measure is intended to revive the country's motor industry capacity. It also seeks to strengthen connections between different industrial sectors.
Supporting local assembly is seen as a way to make economic sense for Zimbabwe. The country has long aimed to increase its manufacturing capabilities through such initiatives.
Why it mattersZimbabwe's motor industry and related sectors are affected by government policy on vehicle assembly.