By Derick Tsimba
Local bus manufacturer AVM Africa (PVT) LTD has partnered City Card, a Company which is in a joint venture with Sino-Zimbabwe to manufacture buses locally.
This move is expected to kick start AVM Africa turnaround strategy to reclaim its market in Zimbabwe and Southern Africa, AVM Africa Managing Director has said.
While speaking at the AVM Africa turnaround strategy launch in Msasa today, the AVM Africa Managing Director said the company history dated back to 1961, and that they would want to employ up to 2500 employees as they used to do during the peak of their production.
“AVM Africa (PVT) LTD formally W. Dahmer and company was established in 1961 by Messers W. Dahmer and Brennett. It was then bought by Lonhro in the late seventies and in 2002 it was bought over by KSM Holdings owned by Honourable K.S Musanhi. AVM Africa has been a major supplier of durable and reliable AVM buses for local and far afield markets.
“The company has a capacity to produce up to 40 buses per month on a double shift and during its pick periods employed up to 2500 people directly and created employment to 85 downstream companies as services, material and parts providers. Thousands of jobs were created in those companies. Good examples were Dunlop and PG Glass in Mutare,” he said.
Chief Executive Officer of City Card P/L Ngonidzashe Matsenga said his company was going to provide kits from China for buses to be assembled by AVM.
“City Card will provide complete knocked down kits for buses to be assembled at this plant. It is our hope that this partnership will definitely change the face of AVM Africa.
“City Card is in a joint venture with Sino-Zimbabwe Company partnering three Chinese partners in the venture. Our company has workable solutions to ease transport problems in Zimbabwe. We expect to complete assembling the first buses 100 to 120 days after the first bus kits land in Zimbabwe,” he said.
Harare Post has learnt that the deal between AVM Africa and City Card will create employment throughout the value chain as medium enterprises are sub-contracted to make bus seats, supply glasses, paints amongst others. At the AVM plant, value addition is currently at 65% local while 35% are imports, a move that saves the country’s foreign currency.
