Story by Vongai Masuka
The Government has challenged the Central Mechanical Equipment Department (CMED) to venture into local lithium battery production and open its network of provincial workshops to private motorists, as the state-owned vehicle hire company reported a strong operating profit despite recording an inflation-adjusted loss.
The remarks were delivered on behalf of the Minister of Transport and Infrastructural Development Hon Advocate Felix Tapiwa Mhona at CMED’s 10th Annual General Meeting at Rainbow Towers, delivered by the ministry’s Director for Policy and Planning, Mr Takura Vengesa.
According to the minister’s remarks, CMED posted a historical profit of ZWG14.8 million for the year under review, even though the company recorded a loss once inflation adjustments were applied.
“Whilst the company made a loss in inflation adjusted terms, in historical terms, this performance translates to a profit for the year,” the Minister revealed, noting that revenue exceeded expenses before accounting for changes in the general price level.
The company’s asset base grew from ZWG1.7 billion to ZWG1.8 billion, a development the minister described as the most impressive number, saying it assured business continuity and better prospects for growth for the state as shareholder.
Advocate Felix Mhona commended CMED for rehabilitating five roads, Simon Muzenda, Robert Mugabe, Kenneth Kaunda, Herbert Chitepo and Harare Drive, ahead of the 2024 SADC Summit hosted in Harare, saying the work was completed in a record time under pressure.
He also praised the company’s strategic partnership with China’s Kinglong United Automotive Industry, which is expected to lead to local bus assembly, describing the tie-up as bringing industrialisation, skills transfer and employment creation.
The minister said CMED now owns the country’s largest fleet of electric vehicles, spanning taxis, minibuses and a standard bus. Citing Zimbabwe’s lithium deposits, he urged the company to explore joint-venture battery production.
Advocate Mhona said CMED’s decentralised network of provincial workshops was an underused asset given rising traffic congestion and vehicle numbers nationwide, and called for the workshops to be opened up to the public, backed by re-tooling, stronger spare-parts supply chains and better service marketing.
He also flagged that CMED’s 2025 audited financial statements and accompanying AGM remained outstanding, urging the company to attend to the reporting gap in the coming quarter to remain compliant with requirements for public entities.
The Ministry of Transport said CMED’s strong asset growth and infrastructure delivery record showed the state entity was living up to its mandate.
