AUTO MOTORING NEWS

New Era (Windhoek)

December 14, 2004
Posted to the web December 14, 2004

Emma Kakololo
Windhoek

BUSINESS people running small vehicle dealerships are up in arms over the recent government directive that will prohibit the importation of certain types of second-hand automobiles from Japan and other Asian manufacturers as from January next year.

An aggrieved group of small vehicle dealers met last night to ponder various options open to them. The ban on second-hand vehicles also dominated the NBC's chat show programme recently with most callers asking for it to be reversed.


The order prohibits the importation of motor vehicles older than five years as well as left-hand drive motor vehicles.

According to sources, a business tycoon with a huge stake in several vehicle dealerships and who has powerful political ties is at the forefront of the government's move.

In correspondence addressed to a representative of second-hand vehicle dealers, the Ministry of Trade and Industry says the government has a responsibility "to protect the interests of the consumers, traders and the environment in accordance with its mandate derived from the Constitution and the relevant laws and regulations".

"Namibia is a member of SACU (Southern African Customs Union) where the importation of used vehicles except those in transit outside SACU is prohibited," states the letter dated December 07, 2004.

Those affected are however arguing that the order is a protectionist move that is aimed at safeguarding the interests of the Retail Motor Industry (RMI), said to be fighting those making a living from the Japanese imports.

They allege that the move was instigated by the RMI whose members apparently fear becoming bankrupt as many people are opting to buy cheaper imported second-hand vehicles that are relatively in good condition and have lower mileages, from Japan.

There is also a general feeling that some high-ranking officials at the Ministry of Trade and Industry own shares in the motor industry and are thus protecting their own interests.

The RMI mainly consists of big companies such as Pupkewitz Motors and SpesBona, which import cars assembled in South Africa, although their spare parts are imported into Namibia from Japan.

These vehicles are regarded as "locals" because they are assembled in neighbouring South Africa which like Namibia is a SACU member.

"There is no difference between the cars assembled in Japan and the ones assembled in South Africa. They all have the same parts," said a concerned dealer who spoke on condition that he should not be named, citing possible repercussions.

"If you compare the 1990 model vehicle from Japan and the 1991 model vehicle here, the Japanese vehicle can be compared to a 1996 model here. Most people are buying those cars for taxis. In the past, they could not afford this. I don't understand how someone could take such a harsh decision," he complained.

"This is totally unfair to the people of Namibia. Government will have to reconsider this. It was for the benefit of the (Namibian) people. The Minister who issued this order cannot be reached. His deputy minister is also not available. They are all out of Windhoek, so we decided to file a petition," said another dealer.

He said the reasons given by the Ministry of Trade and Industry that Namibia was becoming a dumping ground for Japanese models was not acceptable because these vehicles were being imported with spare parts.

The vehicle dealer said some of the spare parts for the second-hand vehicles were even being imported through a courier company, namely DHL, while others were being flown into the country.

"I think the Ministry of Trade and Industry is under pressure from South Africa. Who else are they protecting? Namibia does not produce cars. The same car produced in Japan is half the price when compared to the car manufactured in South Africa," he argued.

He said most reasons given by the Minister of Trade and Industry did not apply to them. He said the Minister explained to them that legally registered used vehicle dealers have most often sourced from the middlemen other than primary dealers which made it difficult for customs to determine the actual value and age of the imported vehicle but this did not apply to them as they imported directly from Japan.

The Minister also justified his action saying some of those who were granted bonded warehouse licences for re-export have re-channelled such vehicles into the SACU market thereby affecting Namibia's share from the common revenue pool. This again he said did not apply to them and only applied to EPZ members.

Jesaya Nyamu, the Trade and Industry Minister, yesterday continued to justify the move by his ministry saying that the importation of such vehicles was problematic.

"That business has been giving us difficulties, but there is no intention for us to close those doors completely. We know that some people cannot afford to buy new cars, but what we want is to rationalise those imports. The importing of cars was too high, the parts of some of them cannot be found here in Namibia and they will end up stranded. We don't want Namibia to become a scrap yard," he said.

He said the prohibition of the importation of left-hand driven vehicles was not something that was new as this was an old law that was being enforced.

Nyamu said those who have ordered motor vehicles from Japan older than five years before November 12, before the ban was placed in the Government Gazzette, would be treated differently and could not be subjected to the same law.

On the allegation that some prominent officials in his ministry own motor vehicle companies or have shares in existing ones, Nyamu said: "If there is such an allegation, it is serious. I think that somebody who administers the law should stay away from such conflict of interest."