Govt may compel SOEs to buy from Peugeot plant
OGONE TLHAGE
WINDHOEK
The government is looking at the possibility of compelling state-owned enterprises and other public institutions to, as a temporary solution, procure their fleets from the Peugeot assembly plant at Walvis Bay.
The plant assembles Peugeot and Citroen vehicles locally.
An impeccable source told Namibian Sun that this proposition is being seriously considered to help sustain that plant, whose success has been hampered by regulatory restrictions.
The Namibian government is a 49% shareholder in the Walvis Bay plant, with French carmaker Groupe PSA as the majority shareholder.
The plant’s success has been hampered by its inability to enter the Southern African market.
Export woes
This is because there is no export agreement between Namibia and its neighbours, as well as some additional duties arising as a result of rules of origin aspects of the SADC Economic Partnership Agreement (SADC – EPA).
Negotiations are now under way to ensure that public entities buy vehicles from the plant to ensure its short-term survival.
“We are pushing to ensure survival until the long-term solution is gazetted. We are working on looking at how outstanding orders from some SOEs can be finalised to give us a cushion of at least four months,” the stakeholder said.
White elephant
The plant, which assembles Peugeot 3008, Peugeot 5008 and Opel Grandland X models, had assembled only 93 vehicles instead of its target of 1 551 by earlier this year.
The plant had intended to assemble 5 000 vehicles by the end of this year to meet demand in the Southern African Customs Union (SACU).
The Peugeot 3008 SUV will be the first model to roll off the assembly line.
The agreement reached between Groupe PSA and the Namibian government was part of the group’s strategic profitable growth plan, which aims to satisfy customer expectations in all the regions in which it operates.
The N$170 million plant was inaugurated by President Hage Geingob in December 2018.
WINDHOEK
The government is looking at the possibility of compelling state-owned enterprises and other public institutions to, as a temporary solution, procure their fleets from the Peugeot assembly plant at Walvis Bay.
The plant assembles Peugeot and Citroen vehicles locally.
An impeccable source told Namibian Sun that this proposition is being seriously considered to help sustain that plant, whose success has been hampered by regulatory restrictions.
The Namibian government is a 49% shareholder in the Walvis Bay plant, with French carmaker Groupe PSA as the majority shareholder.
The plant’s success has been hampered by its inability to enter the Southern African market.
Export woes
This is because there is no export agreement between Namibia and its neighbours, as well as some additional duties arising as a result of rules of origin aspects of the SADC Economic Partnership Agreement (SADC – EPA).
Negotiations are now under way to ensure that public entities buy vehicles from the plant to ensure its short-term survival.
“We are pushing to ensure survival until the long-term solution is gazetted. We are working on looking at how outstanding orders from some SOEs can be finalised to give us a cushion of at least four months,” the stakeholder said.
White elephant
The plant, which assembles Peugeot 3008, Peugeot 5008 and Opel Grandland X models, had assembled only 93 vehicles instead of its target of 1 551 by earlier this year.
The plant had intended to assemble 5 000 vehicles by the end of this year to meet demand in the Southern African Customs Union (SACU).
The Peugeot 3008 SUV will be the first model to roll off the assembly line.
The agreement reached between Groupe PSA and the Namibian government was part of the group’s strategic profitable growth plan, which aims to satisfy customer expectations in all the regions in which it operates.
The N$170 million plant was inaugurated by President Hage Geingob in December 2018.
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