Reconsider Older ‘Grey Imports’

AT THE end of 2004, the government banned the importation of vehicles older than five years. Apparently someone convinced them that these so-called ‘grey imports’ are substandard and that the owners will in future struggle to find parts and support for them.

Just before this ban was imposed, I imported a second-hand 1994 model Mitsubishi Pajero from Japan. It was spotless with about 90 000km on the clock for a purchase price N$19 000! I paid about N$10 000 in import duties, another N$15 000 for shipping, plus about N$10 000 for some other expenses. So the car cost me about N$54 000 in total, while a similar car imported from South Africa would have cost me at least N$90 000. I drove it for about five years, and sold it in 2009 for N$65 000.

I have owned two ‘imported’ vehicles since then, each costing me at least 30% cheaper than similar South African vehicles, and I never had any problems with them. There are several workshops in Windhoek specialising in these ‘grey imports’, so I never had any problems with parts or technical support. I know many other people who imported similar vehicles, and they were all very happy with their vehicles.

In fact, if you compare any of these cars with a similar year models imported from South Africa, the ‘Japanese imports’ are without exception of far better quality.

Since 1994, government has lost millions of dollars in import duties, and thousands of middle- and low-income Namibians have been disadvantaged by this ban. The prices of second-hand cars increased significantly, and many small entrepreneurs who were involved in the importation and maintenance of these vehicles lost their only means of income.

The only beneficiaries are a few big car dealers, for example, the local agents for Nissan and Toyota (which both belong to the Pupkewitz Group). Ironically, Pupkewitz started importing cheap Chinese GWM vehicles right after government implemented the ban on second-hand Japanese vehicles!

With a ‘Japanese import’ you would have far more options in terms of parts and technical support, whereas for a GWM, you would have to go back to Pupkewitz.

If you look around Windhoek, you will also notice that about half of all taxis are grey imports (mostly Toyota Corolla). Most of them have been imported through Botswana, as direct imports have been banned. So although we now pay more for these vehicles (via Botswana), it’s still far better value for money than similar local second-hand cars.

However, importing through Botswana is at considerable expense and effort, compared to direct imports, and Botswana is now earning all the import duty! I notice that Cabinet has changed its stance and recently amended the ban to allow the importation of vehicles up to eight years old. Clearly they still haven’t done their research, because this isn’t helping at all. The prices of these Japanese vehicles drop considerably for cars older than eight years, so it is generally not worth importing them if they are less than eight years old.

So although it is commendable that the government has reconsidered the ban, it doesn’t really help, as Namibians will have to keep importing these vehicles through Botswana. The government can now try to stop the imports via Botswana (which will be a tragedy!) or they can trust the people to make their own decisions on which cars to buy, and allow any imports of second-hand vehicles.

People are not stupid – if these vehicles are sub-standard, they will figure it out (they would have by now) and stop importing them! The fact that there is still a huge demand for these vehicles after importing and using them for the past 20 years, should be enough evidence already that the government’s claim that they are substandard is invalid.

I believe all past investigations were biased, as they focussed more on the concerns of the big Namibian car dealers instead of looking at the needs and perceptions of the people.

‘Grey Importer’

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