Imports ban boosts NTS tyre sales
NATIONAL Tyre Services (NTS) says the suspension imposed on imports has led to increased sales volumes for new tyres, boosting the tyre maker’s income.
In June, the Government suspended the importation of several goods under Statutory Instrument 64 of 2016 to rein in on its ballooning trade deficit — $3,3 billion in 2015 — and shore up local manufacturers.
NTS managing director Mr Kennedy Mandevani told shareholders at a recent annual general meeting that his company has also managed to reclaim its market share as people were now opting for new tyres, especially the firm’s budget brands.
“The Statutory Instrument impacted on us in two ways which has seen increased demand for brand new tyres while the re-treading business, though now requiring a permit to import rubber that we use for re-treading, the licence is easy to get and has been an advantage,” he said.
Mr Mandevani said the cheaper new tyres under the Budget Brands would continue to expand as it has made significant contribution to volumes.
The company had also negotiated for price reviews with suppliers and this has already started to impact on costs.
“We went to major suppliers and negotiated favourable terms and on this, the supply chain has become a key factor on price reductions and we have managed to reclaim market share,” he said.
Mr Mandevani said his company will consider making further price reductions to benefit the customer and in turn maintain volumes and market share.
He said though the economy is expected to remain subdued, cost containment will remain a major factor in the business. — The Source THE Southern African Development Community committee of trade ministers has endorsed progress made with regards to South Africa-Zimbabwe bilateral engagement on tariff phase downs on 112 priority products and Statutory Instrument 64 of 2016.
At a special meeting for Sadc committee of trade ministers held in Swaziland last week, a report on South Africa-Zimbabwe bilateral engagement was presented.
Industry and Commerce Minister Mike Bimha and Finance and Economic Development Minister Patrick Chinamasa attended the meeting.
“The agenda of the meeting included a report on the RSA-Zimbabwe bilateral engagement on tariff phase downs on 112 priority products and SI 64 of 2016. The committee commended the two countries for the progress, welcomed and endorsed the report,” said Minister Bimha.
Minister Bimha also thanked Sadc member states for their continued understanding and support on the need to link trade liberalisation to a process of viable industry development as well as co-operation in finance and investment.
South Africa’s Trade and Industry Minister Rob Davis said South Africa remains committed to working with Zimbabwe and strengthening relations between the two countries in the spirit of advancing regional integration.
The two ministers undertook to meet on the sidelines of the Sadc meetings to explore more ways for encouraging investment between the two countries.
Under the Sadc industrialisation agenda, member states are allowed to find ways of ensuring their economies are heavily industrialised.
SI 64 of 2016 removed about 42 products from the general import licence though there are submissions by stakeholders that more products need to be included on the list.
This policy directive has managed to breathe life into some manufacturing firms who have since increased capacity utilisation while some foreign firms have already started setting up their manufacturing plants in Zimbabwe.