Transporters' sector negatively impacted by foreign players

Transporters' sector negatively impacted by foreign players

By Allan Mbotshwa

The transport and haulage industry in Zimbabwe faces significant challenges that threaten its sustainability and growth. 

One of the foremost issues is the overrun by foreign investors, who have aggressively entered the market, often at the expense of indigenous transporters.

These foreign companies benefit from duty-free trucks, tax holidays, and easy access to financing from international banks, creating an uneven playing field. Speaking àt a press conference held in the capital, Zimbabwe Indigenous Road Transporters Association, Chairperson Mr Simon Gambiza said, ''indigenous transporters rely on hard-earned capital, struggle with high licensing fees, and face stiff competition from these well-funded foreign players controlling a monopolistic share of mineral transportation and logistics.''

Furthermore, the arrival of foreign transport companies has led to a disruption in local supply chains, with imports by foreign trucks increasing, despite regulations discouraging such practices.

ZIRTA seeks the full enforcement and compliance of the Indigenization and Economic and Empowerment Act for the reserved and threshold sectors, ensuring that Local haulage transporter's are protected and the exiting for foreign investors that are operating in the sector

ZIRTA also rejects the Joint Statement Issued by The Ministry of Industry and Commerce and Ministry of Transport , on the 31st of March 2025 that seeks to help foreign investors in the Transport Sector to comply and continue operating the reserved sector as this will against the IEE Act that makes the transport sector reserved.

''Many foreign companies have also registered in neighboring countries like Mozambique and Zambia, exploiting third-country rules to bypass restrictions,'' he added.

This monopolization stifles local enterprise, diminishes opportunities for Zimbabwean drivers, and hampers the transfer of skills and technology to local workers.

There is also concern over unfair business practices by local manufacturers, high toll and licensing fees imposed by authorities like ZINARA, and the exclusion of indigenous entrepreneurs from a sector now dominated by foreign interests. 

These issues culminate in a call for level playing fields by ZIRTA — demanding the enforcement of policies favoring indigenous transporters and a transition period for foreign companies to exit the sector.

A fair and competitive transport industry is crucial for Zimbabwe's economic aspirations. The government and stakeholders need to collaborate on fair regulations, equitable resource distribution, and support mechanisms to empower local transporters and ensure sustainable industry growth aligned with national development goals.

In addition as ZIRTA we call upon all other associations, stakeholders, industry players in the reserved sector, and government bodies and ministry to collectively join hands and seek inclusive solutions that help to protect our sectors for local indigenous investors and put in preventive measures that will root out any unscrupulous ways that foreigners will try to  use to penetrate or continue operating in the reserved sector such as using locals to front their businesses while they hide in the shadows.