Zimbabwe bus manufacturer on verge of major breakthrough

Zimbabwe bus manufacturer on verge of major breakthrough
Published: 09 July 2017 (568 Views)
Bus manufacturer AVM Africa is on the verge of clinching a US$100 million deal with BAIC Automotive Group of China in a development that could create thousands of jobs after Government banned importation of buses in the 2017 budget to give opportunity for the motor industry to grow.

The deal between AVM and BAIC was signed in December 2015 and was witnessed by Presidents Mugabe and Xi Jinping during the Chinese leader's visit to Harare.

AVM Africa, which has a pedigree on the continent for supplying quality vehicles, is angling to get back to its former glory as the company used to manufacture buses for export markets in several countries across the continent.

A delegation of top officials from BAIC is expected in Zimbabwe this week to seal the deal.

Under the joint venture agreement, BAIC will bring equipment, machinery and technology. The Chinese company will also provide funds for re-tooling, assembly kits and plant rehabilitation.

Currently, AVM Africa is producing two buses a month but its partnership with the BAIC is set to increase production to 30 buses monthly, with prospects for growth.

Furthermore, the company will manufacture tractors with a targeted production of between 200 to 1 000 units per year.

In an interview with this paper after touring the AVM Africa plant last Thursday, Finance and Economic Development Minister Patrick Chinamasa said the fiscal intervention to ban importation of buses should spur local industry to grow.

"In the 2017 budget, I made a fiscal intervention to allow the local bus industry to grow by banning the importation of buses. The ball is now in the local producers to benefit from this fiscal intervention. My tour of this plant has enabled me to have a greater appreciation of the challenges that the company faces.

"Our measures are aimed at protecting local industries and we are encouraged that the company has the capacity to produce and export and also earn the much needed foreign currency for the country."

AVM Africa executive chair Mr Kenneth Musanhi said the company could assemble buses at a lower price than imports.

"Our buses sell for about US$120 000 and these are products that are custom made for our roads. Imported buses cost about US$150 000 and they are of a lower quality than what we produce. Our operations have been affected by cheap imports yet our company has the capacity to produce better than the buses that we have been importing."

Mr Musanhi said more than 2 000 direct jobs are expected to be created via the joint venture.

"Currently we have 74 employees, but if this joint venture succeeds, we will create more than 2 000 jobs excluding the upstream and downstream industry"

- sundaymail

Tags: AVM, Bus, Manufacturer,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

WATCH: Mnangagwa praises 'father of the nation' Mugabe

by AFP | 24 November 2017 | 227 Views

Chihuri booed at Mnangagwa inauguration

by Stephen Jakes | 24 November 2017 | 385 Views

At least 155 killed in mosque in Egypt

by Staff Reporter | 24 November 2017 | 76 Views

Zodwa Wabantu plans Zim tour post Mugabe resignation

by TshisaLIVE | 24 November 2017 | 213 Views

Mnangagwa to make job creation a priority

by Staff reporter | 24 November 2017 | 200 Views

Mnangagwa praises 'father of the nation' Mugabe

by AFP | 24 November 2017 | 129 Views

Mnangagwa calls for peaceful 2018 elections

by Staff Reporter | 24 November 2017 | 159 Views

'All foreign investments will be safe,' promises Mnangagwa

by Staff Reporter | 24 November 2017 | 136 Views

Mnangagwa to compensate white farmers

by Staff Reporter | 24 November 2017 | 196 Views

Man loses 3 teeth to wife

by Staff reporter | 24 November 2017 | 158 Views

'Grace Mugabe used me'

by Staff reporter | 24 November 2017 | 299 Views

Chimene makes u-turn, now supports Mnangagwa

by Staff reporter | 24 November 2017 | 248 Views

Soldiers rescue Mphoko's Choppies

by Staff reporter | 24 November 2017 | 205 Views

Open letter to Mthwakazi.

by Kernan Mzelikahle | 24 November 2017 | 110 Views

The New Zimbabwean president faces high expectations. will he fulfil them?

by Dr Masimba Mavaza | 24 November 2017 | 111 Views

Mnangagwa sworn in as Zimbabwe President

by AFP | 24 November 2017 | 212 Views

Oscar Pistorius's murder sentence increased to 13 years

by Staff reporter | 24 November 2017 | 84 Views

Mnangagwa's poisoned chalice

by Crecey Kuyedzwa | 24 November 2017 | 161 Views

Shembe dies

by Staff reporter | 24 November 2017 | 117 Views

Mnangagwa inauguration programme

by Staff reporter | 24 November 2017 | 155 Views

Concern over Jonathan Moyo, Kasukuwere, Chombo security

by Staff reporter | 24 November 2017 | 260 Views

Mnangagwa's timeline

by Staff reporter | 24 November 2017 | 126 Views

The dramatic rise and fall of Grace Mugabe

by Christopher Farai Charamba | 24 November 2017 | 238 Views

Khama Billiat non-committal

by Staff reporter | 24 November 2017 | 80 Views

Kaindu returns to Zambia

by Staff reporter | 24 November 2017 | 96 Views

Mnangagwa takes oath of office today

by Staff reporter | 24 November 2017 | 129 Views

From Chairman Mao to Deng - from Mugabe to Mnangagwa

by Darlington Musarurwa | 24 November 2017 | 105 Views

Sodomy storm for policeman

by Staff reporter | 24 November 2017 | 91 Views

Mnangagwa assures Mugabe, family of maximum security

by Staff reporter | 24 November 2017 | 94 Views

Fissures in MDC Alliance over formation of Transitional govt

by Staff reporter | 24 November 2017 | 85 Views

Mugabe not invited to Mnangagwa inauguration

by Staff reporter | 24 November 2017 | 134 Views

Dabengwa offers to serve under Mnangagwa

by Staff reporter | 24 November 2017 | 209 Views

'Jailing Mugabe would bring Zimbabwe bad luck'

by Staff reporter | 24 November 2017 | 59 Views

Soldiers torture Kasukuwere's maids

by Staff reporter | 24 November 2017 | 151 Views

Mugabe jumped before he was pushed

by Peter Fabricius | 24 November 2017 | 71 Views

Mnangagwa allies, army targeting families of Jonathan Moyo and Kasukuwere

by Staff reporter | 24 November 2017 | 196 Views

Tsvangirai to attend Mnangagwa inauguration

by Staff reporter | 24 November 2017 | 563 Views

Chiwenga challenged to clarify G40 arrests

by Staff reporter | 24 November 2017 | 182 Views