Call for tyre industry revival

THE Zimbabwe National Chamber of Commerce (ZNCC) says there is an urgent need to invest in the tyre and rubber sector to aid import substitution and create more employment opportunities.

Given the growing vehicular population in the country, the industry lobby group says the demand for tyres has been high with the bulk of supplies coming from imports.

Reliance on imports has been worsened by the demise of Bulawayo giant tyre producer, Dunlop, some years ago.

As part of growing the sector, ZNCC said there is a need to investigate why both the local and international investors were reluctant to invest into the industry.

“If you look at our car population in the country, revamping the rubber and trye industry will come with a lot of downstream benefits like employment creation through value chain and value addition,” said ZNCC Matabeleland chairman, Mr Mackenzie Dongo.

“That is definitely a must and very critical. We need a factory that can do toll manufacturing for various brands like Dunlop and Yokohama, nearly all common brands.

“As business we need to look at the reasons why we do not have either local or international investors taking up the investment space.”

In 2012, Dunlop won ZNCC first runner up export award after it restored normal working hours due to increased demand for its products from foreign markets after a long slump in business in past years due to operational constraints.

The same gap is still open for the rubber industry as it is witnessed by the growing number of rubber and tyre imports into the country, economic analysts have said.

Bulawayo business analyst Mr Morris Mpala said tyre industry presents huge opportunity.

Mr Morris Mpala

“With the number of vehicles on our roads this creates a huge market and when you factor the other rubber products that are required in business you will see the upside potential in this sector is huge,” he said.

“It just needs bold, aggressive and better resourced entrepreneurs to enter into this market unapologetically.

“It will be a win-win for all stakeholders that is Government, investors and consumers.”-chronicle