Innovative Approaches Keeping Namibian Car Scrapping Business Thriving

In Namibia, local entrepreneurs are capitalizing on the high cost of spare parts by venturing into the car scrapping industry, thereby stimulating business growth and generating employment opportunities in the country. The process of car scrapping involves the acquisition of damaged or old cars for the purpose of dismantling and selling their parts.

Gerhard Mumbala, the proprietor of City Plug Investment, has been specializing in the scrapping of old cars since 2018 and has seen a substantial increase in his income as a result. The demand for his services is driven by the high cost of spare parts in the country, as well as the inflation surge, with spare parts and accessories prices rising by 5.3 percent and repair charges increasing by 2.7 percent year-on-year.

Mumbala has achieved success by identifying and meeting the demand for parts from popular car brands such as Volkswagen, Audi, Toyota, Haval, and GWM. Through extensive market research, he has managed to carve out a niche for his business.

Martin Fotoloela, who has been in the industry since 2006, emphasizes the appeal of car scrapping due to innovative approaches, evolving car models, sales patterns, and marketing strategies. To diversify their offerings, entrepreneurs also refurbish older cars and sell them locally, leading to multiple income streams and business expansion.

Moreover, the growth of the industry has had a positive impact on local communities, with Mumbala providing employment contracts for 11 young people, and Fotoloela employing six individuals. This injection of jobs has brought hope to the unemployed in Namibia, offering not only employment but also a sense of purpose and responsibility to individuals like Josef Shiindi, who has been working at Mumbala’s scrap yard since 2018.

In addition to the economic benefits, the car scrapping industry also promotes environmental sustainability through the recycling of car body parts. This environmentally conscious entrepreneurship is in line with the country’s environmental protection and sustainability objectives.

Despite the industry’s progress, entrepreneurs face challenges such as difficulty in finding suitable storage space and limited funds for expansion. Nevertheless, they remain undeterred and resolute in their efforts to extend their services to other regions of the country. By overcoming these obstacles, local entrepreneurs are contributing to the growth of the car scrapping industry in Namibia, creating employment opportunities, and positively impacting the environment.