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.