Government is in the process of introducing a maximum age limit for second-hand vehicles imported into the country to regulate the influx of old vehicles.
Minister of Transport, Works, Supply and Communications Richwell Siamunene said the legislation, which will put an age limit to the vehicles entering the country, has since reached an advanced stage.
Mr Siamunene, however, could not give more details on what the maximum age limit would be.He said this during the launch of auto loans by Standard Chartered Bank earlier this week aimed at providing motor vehicle loans to clients.
“The growing middle-class has resulted in an increase in the number of used motor vehicles being imported, but there is need to regulate the process to ensure quality and safety,” he said.
The motor vehicle population in Zambia, which is increasing at the rate of 45,000 annually has about 650, 000 motor vehicles, of which used vehicles account for 60 percent.
Mr Siamunene said, “We have witnessed an increased vehicle population on our roads. Unfortunately for our economy, used vehicle imports account for over 60 percent of the vehicle population.”
He said financing options and other alternatives for acquisition of new motor vehicles are necessary if, the importation of second hand vehicles is to reduce in the country.
“The Standard Chartered Bank auto loan product will not only better serve Zambian clients and empower them with a wider choice of affordable financing, but also demonstrate that our economy is moving in the right direction,” he said.
Mr Siamunene said Government will ensure that the business environment remains conducive to boost growth which will further grow the middle class.He said the establishment of the Credit Reference Bureau will also go a long way in reducing risks associated with bad debt.
Earlier, Standard Chartered Bank global head of client segments Euan Campbell said the six-year tenure will make new vehicle ownership affordable for many clients.
Okay the age limit on used cars is good but this must go hand in hand with an IMPORT and EXCISE DUTY REDUCTION, these news cars are damn expensive and with the high rate for the dollar (politics aside please) let’s be fair and reduce the duty. Lastly Standard Chartered are are parasites that have nothing good to offer and them jumping on the carloan bandwagon shows this, as it stands local micro-finance firms have taken the market.
Lusaka times can you sort out the virus on your system
I have no idea why every Jim and Jack wants to own a car in Zambia. Having a car should be out of necessity. If your house is next to a super market and your church is five minutes away from your house on foot and the local market is across the road and your job is 10 minutes from home, not to mention the high cost of petrol, why do you need a car? Simply to compete with the neighbor? This is why a lot of Zambians are ending up with high blood pressure because they are too lazy to walk. Take that loan and use it for something else. A car is not an investment!
As usual chimbwis think that, safety on roads has anything to do with the age of the car. Go to Cuba and check their cars. You will find 1950s cars still on the road but there is very little carnage on the roads because they take road safety and car fitness very serious.
All what is required in Zambia is a rigorous car fitness test regime devoid of corruption to make sure that all cars on the road are fit.
Secondly road safety officers should maintain the presence in all blacks spots to control the speeds of vehicles.
Thirdly and most important of all, is the road maintenance and capacity increment which PF has talked about and even borrowed heavily and removed subsidies for that needs serious implementation. Unfortunately, its all talk for PF and no action.
PF ni ba chimbwi.
Those championing this will be first to benefit from such car deals.
Zambian economy is not good enough to afford workers to buy new cars at K10,000 deposit plus £2500 per month the cheapest small car for 6 years.Really?. By Zambian standards you got to be earning at least K15000.00 to be able to afford such car deals. How many people earn over K15000.00 a month in Zambia? Less than 50000 I think.
Who ever is championing this is living in dreamland.
PF ni ba chimbwi no plan.
I thought I was the only one. This virus is irritating. I thought it was on my phone, I went to the tablet same thing
Start charging duty on importation of cars that have a mileage of 20 000km and more same as the rate of aquiring a new car and less or next to zero duty on those with less than 20 000km . This move will attract more people to buy new cars locally and reduce on imports which are affecting our economy.
2 flag spongy bob. Age limit has nothing to do with mileage. It has everything to do with manufacture date. If for example we bought the same type of car on the same date, I stay in Lusaka and work in Lusaka while you stay in Kabwe work in Lusaka. We drive to work using our vehicles to the same work place equal number of days in a year. I park my car over the weekend while you go to your farm in Ndola using your car every weekend. Your car will have higher mileage than mine but same age. The government is talking about age. This is also wrong on the part of government if they look at age only. You cannot value a Germany manufactured Benz the same way as a Japanese Corolla basing on either mileage or age or even both. They should seek expert opinion.
ati age limit. phewwwwww!!!!!!!!
They are effecting “age limit already.” You pay more when you buy a vehicle that is over 10 years old.
CORRUPT ZAMBIAN POLITICIANS ARE AT IT AGAIN, BUYING NON-WORKING POLICIES FROM SOME FAILING GOVERNMENTS LIKE ZIMBABWE. ZIMBABWE ONCE TRIED IT, BUT FAILED LAMENTABLY AND ABANDONED IT. DON’T INTERFERE WITH THE FLOW OF CARS INTO THE COUNTRY. LET MARKET PRESSURE BE THE DECIDING FACTOR HERE, NOT NON-SUSTAINABLE POLICIES. ZAMBIA IS A POOR COUNTRY WHICH NEEDS TO EMPOWER IT’S OWN CITIZENRY, GIVING THEM OPPORTUNITIES TO OWN A CAR IRRESPECTIVE OF ITS AGE. HOW MANY ORDINARY ZAMBIANS CAN AFFORD LATEST CAR MODELS? DON’T BE SELFISH PLEASE. DON’T SHUT DOWN MANY ZAMBIANS DREAM TO OWN A CAR! STANDARD CHARTERED BANK IS A THIEVING BANK!
I disagree with you there. The government has a duty to protect its citizens even without the approval of such citizens. Owning a car is no longer a privilege. Some poverty we see around are because of misplaced priorities such as rushing for cars. If you cannot afford it please invest your money in some productive assets and help reduce congestion and accidents on the road.
This policy should be accompanied by laws compelling to keep our cars up to a certain higher lever of fitness and cleanliness while they pave our roads and land next roads. The beauty we see in other countries is not an accident. There was painful sacrifice and investment. The PF gov is getting it right fellows.
@Truth
You are spot on. Zimbabwe tried it but then it realised that it was a stupid idea because Zimbabwe does not manufacture cars at all. South Africa has successfully implemented that rule because it wanted to protect its car industry.
Now for Zambia to go down that route its bit too rich and nonsensical. If PF thinks it will raise more dollar by implementing such a useless idea it should ask its friend ZANUPF how the duty collections diminished almost to zero in month.
Only 0.02% of the population and government can manage to import new cars . So how much can PF raise out 0.02% of the population paying duty, because government vehicles are exempt.
PF ni ba chimbwi no plan as usual. All their policies are hastily implemented without cost – benefit analysis.
Why always go after the little guys? The only thing you need to regulate is safety not age. The only people pushing for this are the car dealers because they cant compete on an open market. Leave the little guy alone to do his work.
This has been long overdue. It will improve on road safety and help decongest our roads. Also, it will force some people to invest in real estate and other businesses instead of rushing to buy scrap using money gotten as loans because the lower the age limit the more expensive the car is and so many will no longer afford scrap. I therefore propose the maximum age limit to be 8 years.
It is a good idea to regulate the age of cars coming in but government needs to seriously look at our poor road network. Take a look at all the routes where there is congestion and come up with ways of re routing traffic.
Now car loans, how many Zambians can afford them?
Govt officials like the Minister is home and dry after as we buy new cars for them.
what if i want to import an antique?
Will this apply to returning residents who may have bought their cars long back such that the car is beyond the acceptable “age limit” when they return home? I don’t want to sell my old faithful which a bought brand new and stayed with it for a long time.
That law applies here in Kenya. Its 8 years from the manufacturing date. The govt claim old vehicles emit smoke destroying the environment, wastage of money on maintainance/ spare parts (value for money) and reduction of accidents by worn out vehicles. Kenyans do not appreciate it as we see thousands of vehicles being smashed in the port for not abiding by the law. Some of the Kenyans import directly via the internet forgeting the law only to witness their vehicles destroyed getting a rude shock. On the contrary, local vehicles of the 1970s and 80s are still operating on Kenyan roads. Its a selective clause, oppose it for your your own good.
WHAT CAR IS ASSEMBLED IN ZAMBIA.?
DON’T COPY AND PASTE RULES THAT WORK WELL IN OTHER COUNTRIES WHERE THEY PROTECT THEIR INDUSTRIES IN THE SAME BUSINESS.
We usually come up with ‘borrowed’ solutions, without understanding the problem first.
It will fail in Jesus’s name. The government will lose revenue due to this policy. Less used cars coming into the country will translate into less taxes on imported cars, motor vehicle spares, fuel sells, road tax and motor vehicle fitness plus loss of income for the thousands of Zambians who depend on the business of these used cars from Japan.
So this PF government didn’t learn a lesson from that testing equipment they tried to introduce at RTSA Chilanga? They are really a bunch of *****s.
The whole idea driven by selfish evil few; its a cartel of banks, new car dealers and the govt elite. At fintu ni lungu yaba!! ba zambia mwalipwalala sure…
Those championing this will be first to benefit from such car deals.
Zambian economy is not good enough to afford workers to buy new cars at £1000 deposit plus £250 per month the cheapest small car for 6 years.Really?. By Zambian standards you got to be earning at least K15000.00 to be able to afford such car deals. How many people earn over K15000.00 a month in Zambia? Less than 50000 I think.
Who ever is championing this is living in dreamland.
Thank you my brother. They are trying to make people get loans for cars. Not everyone is minister and is not entitled to a new free brand new car tax free..?
Lungu governance is worse than mmd, everything is wrong, the people to blame are the easteners and bembas that worked together in voting for changwa; i hope in 2016, they will be realistic enough to usher in the saviour HH to take zambia to where it belongs
You do not insult a crocodile while you butt is still in the water.
The only winners here are the South African Banks getting more Zambians into deeper debt and the South African Car dealers that own the rights to sell into Zambia. the maintenance is what has to be done, most Zambians only put fuel in the car and never check the oil, tyres or other things under the bonnet.
Hmmm! In Malawi age limit is 10 years. It the age was limitless, we could have seen very ugly cars like old Passos, old Opas, old pajeros kkkk
Most of the chaps supporting this don’t even own bicycles. I had a feeling this was coming.The issue is not accident but trying to decongest the road. What GRZ need is actually to expand the roads,build more road and repair the damaged road. 650 000 cars against a population of 15 million is very little, If we get 45,000 a year means in the next ten years we shall only have 1 million cars against a population that will be over 20 million.GRZ, WE JUST DON’T HAVE THE ROADS. This law will benefit the local car dealer but will just be a minimal sales increase.In all honest GRZ will have a further revenue loss, not only on duty but on Road Taxes, Fuel Levy and even toll levy. We will experience a similar miscalculation like on the VAT Refund for mines
And next will be no salaula clothes
Plse give Zambians loans to buy farming implements than new cars.
But bwana minister ,what do u want to achieve ?please let zambians own vehicles.nanga nindala zanyoko osebezya
Good move but reduce the duty as well and you see how new brand cars will be bought by Zambians. The new brand cars are too expensive in Zambia.
This is definitely long over due. Old cars over 20years are dangerous for sure.
Technology and car safety has moved on in that time.
In many other countries these old cars they sell us would have been crushed but we’re happy to buy expensive rubbish that’s dangerous and worthless!
I got ripped K54000 in 2012 from japs and car was broken after less than 2weeks.
I bought from UK last year K57000 from *********and car still works! They don’t sell crap like the Japs do. It’s about time Zambians realised there are other better options but you have to look after your car aswell.
Some old makes are stronger than latest ones which lose shape even by strong winds . You cant even lean agaist latest cars bcoz they will be deformed. Accident claiming lots of live are caused by latest chainese buses on our bad raods. Put age limit with duty free may be it can help. Besides govt raises alot of money on imprtation of these same old car. They are old but stronger than latest.