Used Cars Import Bill: Let’s channel the resources towards local electric vehicle assembly

Harmony Agere

Zimbabwe has spent about US$1,6 billion on second-hand vehicle imports over the past six years, a figure recently revealed by Industry and Commerce Minister Mangaliso Ndlovu.

While second-hand imports provide affordable vehicles, the staggering expenditure not only drains the economy but also represents a lost opportunity for industrial development.

With abundant iron and lithium deposits, as well as a competent human resources base, there has never been a good time to start electric vehicle (EVs) assembly in the country.

The case for local EV assembly

Instead of relying on imported second-hand vehicles, Zimbabwe could channel part of the import bill into establishing a domestic EVs assembling plant.

For perspective, Uganda allocated just US$40 million over four years to develop an EV assembly plant.

Today, Uganda’s Kiira Motors Corporation has the capacity to produce up to 5,000 EVs annually and is working on an electric city bus with a 200-kilometre range and a 56-passenger capacity.

Kiira Motors Corporation (File Photo)

Zimbabwe could follow suit by setting up a dedicated fund for local vehicle assembly, financed through taxes on imported used cars.

Government could then use the funds to collaborate with international companies to develop an EVs assembly plant, leveraging the country’s existing automotive infrastructure.

The economic and environmental benefits of local EV assembly

Relying on imported second-hand vehicles is a short-term solution with long-term consequences.

Many of these vehicles begin experiencing mechanical failures shortly after arrival, leading to continuous capital outflows and dependency on imports.

Developing a local EV assembly industry could create thousands of jobs, reduce trade deficits, and foster technological advancement.

EVs also provide significant environmental benefits.

Zimbabwe’s urban centres suffer from increasing air pollution, much of it due to ageing fossil-fuel vehicles.

Transitioning to EVs would cut carbon emissions, improve air quality, and reduce reliance on imported fuel, easing pressure on the country’s foreign currency reserves.

Leveraging Zimbabwe’s iron, steel and lithium resources

Minister Ndlovu highlighted Zimbabwe’s revival of the iron and steel industry as a foundation for local vehicle manufacturing.

Zimbabwe possesses some of the world’s largest lithium reserves—an essential component for EV batteries.

The country holds an estimated 310,000 metric tonnes of lithium, with at least ten major companies mining this crucial resource.

Instead of exporting raw lithium, Zimbabwe should focus on establishing battery manufacturing plants to support a homegrown EV industry.

Countries like China and the U.S. have used their lithium reserves to build billion-dollar EV industries, and Zimbabwe has the potential to do the same.

An aerial view of Manhize steel plant

The development of the Manhize iron and steel plant is set to put the country on the map as one of the biggest iron and steel producers and this could help in setting up EV assembly.

Regional and global market opportunities

With the African Continental Free Trade Area (AfCFTA) in place, Zimbabwe could position itself as a regional hub for EV assembly, exporting vehicles across Africa.

The agreement promotes clean energy projects and low-carbon technologies, providing an opportunity for Zimbabwe to lead in sustainable transportation.

South Africa is already moving towards EV production, and Zimbabwe should collaborate with organisations such as the Association of African Automobile Manufacturers (AAAM) to establish partnerships.

Additionally, global automakers are seeking emerging markets for EV production.

By offering incentives such as tax breaks, infrastructure investment, and policy support, Zimbabwe could attract foreign direct investment (FDI) into the sector.

Reducing the cost of EV adoption

The primary barrier to EV adoption is cost.

The average price of an EV in Africa is around US$39,000—nearly five times the average cost of a second-hand imported vehicle.

However, Zimbabwe can lower prices through a combination of policy incentives, local production, and infrastructure development.

Public-private partnerships (PPPs) can play a significant role in reducing costs.

Collaboration between employers and financial institutions could provide low-interest financing for EV purchases.

Chinese EV maker BYD has been making record sales

Partnerships with companies such as BYD, Tesla, and Volkswagen could facilitate the development of manufacturing infrastructure.

Even home-grown manufacturers like Mureza can play a part by partnering with either the Government or private investors.

The time for action is now

Zimbabwe cannot afford to continue exporting jobs and wealth through excessive second-hand vehicle imports.

With abundant lithium, steel, and existing automotive infrastructure, the country has the resources to establish a thriving EV industry.

The lithium sub-sector is seen as a game changer, as the world progresses towards electric-powered vehicles

By embracing EV assembly, Zimbabwe can revive its automotive sector and secure a sustainable, competitive future in Africa’s evolving transportation landscape.

This also aligns with the country’s agenda to industrialise, enhance local production and increase exports.