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Lovemore Zigara Midlands Correspondent
A JAPANESE car exporter, SBT Global Car Exporter, has announced plans to sell second hand cars on credit to civil servants and workers from selected local companies.

SBT Global started bringing cars into Zimbabwe in September last year and ships about 500 vehicles into the country every month.

The car shipment company’s overseas department country manager, Syun Sawaki, said the move to sell cars on credit has been necessitated by high interest rates, which are being offered by lending institutions that he said made it difficult for most government employees and other working people to buy vehicles.

“We intend to sell cars on credit to civil servants and workers from selected companies. This comes after the realisation that banks in this country are reluctant to give people money and if they do the money is very expensive.

“After working out the modalities, we’ll roll out the programme starting with government employees later this year,” said Sawaki.

SBT Global has already started bringing vehicles directly into the country, which appear to have brought convenience to customers who no longer have to worry about driving the cars from the different ports like in Tanzania, South Africa and Namibia.

Despite duty on vehicles being 87 percent, the visiting country manager who was in the country for the Midlands Agricultural Show said the developments have had little impact on imported vehicle sales.

“Import duty on these vehicles is now at 87 percent of Cost Insurance and Freight (CIF) prices, which makes the cars very expensive for the ordinary person. We’re trying to make them cheaper by reducing our profit margins and also because competition in this industry is now tough,” said Sawaki.

“In spite of all this the demand for vehicles hasn’t changed really because people in Zimbabwe want cars. There are a lot of young people here in Zimbabwe as compared to Japan and this has spurred growth in this industry and the prospects look good for us.”

He said his company was in the process of setting up three warehouses in Harare, Bulawayo and Beitbridge, which should be operational beginning next year.