Im­ports ban boosts NTS tyre sales

Chronicle (Zimbabwe) - - Business Chronicle -

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.

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.