Zimbabwe's new government is tightening its belt and has banned the purchase of luxury vehicles for senior executives at its 92 parastatals, six independent commissions and in all local authorities.
The ban applies to luxury Mercedes-Benz, Range Rover, Jaguar and BMW vehicles. Only locally assembled vehicles will be bought.
The ban was issued by Misheck Sibanda, the chief secretary to the cabinet and the president and sent to all ministries.
The move is likely to boost local motor-assembly companies such as Willowvale Mazda Motor Industries and Quest Motor Manufacturing, both of them struggling.
Economic observers see the ban as part of austerity measures set to be rolled out by President Emmerson Mnangagwa's government over the next few weeks.
Mnangagwa, who is in New York for the UN General Assembly, needs to show serious attempts to revive the economy and assure international lenders of a commitment to strict fiscal discipline to obtain fresh credit lines.
He will address the General Assembly on Wednesday, with his speech likely to focus on Zimbabwe's acceptance by the international community.
His new finance minister, Mthuli Ncube, this week said he was working on a "transitional stabilisation programme" that would be unveiled next month.
British ambassador Catriona Laing said her country supported Zimbabwe being put on an International Monetary Fund programme.
Part of the letter from Sibanda reads: "In instances where the authorised vehicles may not be available from local assemblers, those assemblers must confirm in writing such non-availability before an alternative supplier can be engaged."
Under the new directive the models that can be acquired are the Toyota Land Cruiser, Toyota Fortuner and Jeep Cherokee.
Ncube also announced the suspension of the purchase of luxury vehicles for ministers and legislators. The money saved - at least $15m - will be used to fight cholera. The cholera outbreak has claimed 35 lives and put about 5,000 people in hospital.
"We have had to suspend certain things like buying vehicles for ministers and legislators to make sure that we deal with this cholera endemic immediately," said Ncube.
Sifelani Jabangwe, the president of the Confederation of Zimbabwe Industries, the largest industry association in the country, said on Friday that the ban on luxury vehicles was significant and showed the government's commitment to fiscal discipline.
"Government will have a huge saving because luxury vehicles cost double the amount of standard vehicles. You get a luxury vehicle at between $60,000 and $100,000, while it costs $40,000 for standard vehicles."
Zimbabwe National Chamber of Commerce president Christopher Mugaga said efforts by the new administration to cut expenditure were a sign that it was "trying in difficult times".
Meanwhile, local vehicle assemblers were ecstatic at the government directive.
Quest Motors production manager Carl Fernandez said the directive would support the local motor-assembly industry.
"Similar directives have been in place but were not being adhered to by the previous government and we are hopeful [because] the new government chose to reinforce support for vehicle-assembling companies. It is our wish that the directive will be complied with," said Fernandez.
In 2002, a presidential directive and government gazette notice compelled all ministries and parastatals to procure vehicles locally. The directive also set out tender specifications of vehicle purchases and aligned those with models available from local motor-assembly plants.
Another directive was issued in 2011 intended to reinforce the 2002 policy. However, both directives were ignored by former president Robert Mugabe's administration, which opted for high-end luxury vehicles and consequently led to the near collapse of the local motor industry.
Zimbabwe's government debt was at 77% of GDP at the end of last year, according to economic data website Trade Economics...