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INDUSTRY NEWS

AutoForum - November / December 2018

Government is working on appropriate incentives to

Next at the podium was the Economic Regulation

encourage exports,” he said.

Manager from the Zimbabwe Energy Regulatory Authority (ZERA), Learnmore Nechitoro who addressed the

Ndlovu went on to say: “the new government is positive

challenges of the electric power sector in Zimbabwe.

towards business and has a willingness to restore a

Nechitoro outlined the relevant laws, the sector structure,

normal relationship with the international community,

generation; transmission & distribution constraints, as

showing respect for investor concerns by the removal

well as the performance of Kariba and IPP participation

of investment pediments like the indigenisation and

and requirements. He discussed the revenue collection

economic empowerment regulations, as well as the

challenges, saying the utility owed in excess of $1 Billion.

establishment of the One Stop Investment Centre (ZIDA).”

In his conclusion he stated the country had enough resources to supply itself and export to the region, saying

The minister highlighted his 2019 budget proposals for the

the low cost of hydro and solar power will act as catalysts

motor industry, which included:

in the reduction of overall electricity costs.

• Tax incentives for the creation of new jobs • Customs duty, import VAT and surtax on imported

At the onset of her Post Budget 2019 Analysis

motor vehicles payable in foreign currency, with effect

presentation, Christina Muzerengi of Grant Thornton

from 23 November 2018 (this excludes commercial

and Associates jovially reiterated that she was “only the

vehicles).

messenger” regarding her detailed summary and analysis

The measure is envisaged to reduce imports of second

of the 2019 Zimbabwean Budget proposal.

hand cars which compete with new vehicles on the market.

As part of her analysis, Christina mentioned that the 2019 National Budget constituted the first macro-fiscal

He concluded saying:“It is my earnest hope that the motor

financial framework for implementing the Transitional

industry and government, working together, can turn the

Stabilisation Programme (TSP), which is an initial stepping

economy around. We need to look seriously at our core

stone towards realising Vision 2030. This is designed to

commitments, each co-operating partner should play their

guide not only the fiscal, but also the monetary and other

part and together we can revitalize the motor industry. We

economic policies during its subsistence.

hope to create an export orientated industry, with strong global and regional alliance to ensure globally competitive

Word from the President of Zimbabwe has been very clear

quality and optimal capacity utilisation. The motor industry

“that there is no alternative to a strong, sustainable and

must be co-ordinated and well positioned to ensure value

shared growth except through expenditure cuts” and the

addition and job creation, capitalising on improved market

budget is testimony to that. A shortage of forex remains

access with, amongst things an affordable vehicle.”

a contentious issue in Zimbabwe, whereby it is illegal to trade in forex, however it is required that all taxes must be

He urged delegates to look beyond the current economic

paid in forex and not

challenges. With those statements Minister Ndlovu

bond notes.

officially opened the 2018 MIAZ congress.

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AutoForum November / December 2018  

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