Andrew
Trade Focus
Allan Majuru
AS Zimbabwe rallies towards transforming into an upper-middle-income society by 2030, backed by a strong export-oriented economy, the country’s 2021 export performance figures, released recently by ZimStat, show that huge strides have been made towards achieving our national targets.
According to the latest statistics, exports between January-December 2021 stood at US$6,03 billion, representing a 37,3 percent increase compared to US$4,39 billion recorded over the same period in 2020.
The US$6 billion-dollar mark, breached by local exports, is the highest ever recorded figure.
The increase exceeds the 10 percent growth target set out in the National Export Strategy.
It followed a spirited re-engagement drive led by President Mnangagwa’s Second Republic and complemented by export development and promotion events undertaken by ZimTrade.
The growth represents tangible evidence of the success of the National Development Strategy 1, launched by President Mnangagwa in 2019, which focuses, among other things, on promoting export products and export markets diversification.
As exports grew, the value of imports also went up by 33,3 percent to US$7,57 billion from US$5,68 billion in 2020.
This pushed the country’s trade deficit to US$1,54 billion, from US$1,29 billion recorded during the same period in 2020.
While some may view the increase in imports as an unfavourable development, it is encouraging to note that the bulk of imports were raw materials and capital equipment that went towards boosting production by the local manufacturing sector.
Big export movers
Exports from the cotton to clothing value-chain increased from US$43,9 million to US$102,2 million representing a 132 percent increase.
The sector’s exports were mainly driven by cotton and cotton yarn exports which increased from US$29,1 million to US$85,7 million in 2021.
The export value of clothing and textile also increased from 14,9 million in 2020 to 16,9 million in 2021.
In order to increase earnings from cotton to clothing value-chain exports, there is a need to step up efforts to value-add the raw cotton that currently comprises the bulk of exports from the sector.
The arts and crafts sector has been recording positive exports growth for some time.
The 2021 figures show that the sector’s exports increased by 56,6 percent, to US$8 million, from US$5,2 million the previous year.
The growth was mainly attributed to exports of collections and collector’s pieces of zoological from US$4,1 million to US$6,6 million.
Exports of original sculptures and statuary, in any material also marginally increased from US$1,1 million to US$1,4 million during the period under review.
This growth reflects the dividends of ZimTrade’s efforts in encouraging exports in this sector after organising business linkages between local artists and a buyer from Germany in 2020.
Due to the huge potential in the sector, ZimTrade is also organising for local artists to showcase their exhibits at the Birmingham Autumn Fair in September later this year.
Furthermore, horticulture sector exports jumped by 6,8 percent in 2021 to US$63,6 million, up from US$59,5 million.
This was a recovery from a decline registered in 2020.
The major contributors were macadamia (US$13,8 million), citrus (US$10,9 million), leguminous vegetables (US$4,2 million) and fresh flowers (US$3,2 million) exports.
Implementation of the Horticulture Recovery and Growth Plan has helped stimulate export growth in this sector.
There are indications that local farmers will boost production, making it easy to meet buyers’ requirements.
Currently, there is a growing demand for organic foods among consumers, as more people become health conscious and are looking for products that are high in nutrients and low in calories.
Consumers are becoming more aware of foods containing synthetic pesticides and fertilisers and are switching to organic foods, which is driving the growth of the organic farming market.
By focusing on organic produce, the horticulture sector can increase its contribution to national exports, riding on improved production by smallholder farmers and rural communities.
In addition, manufactured tobacco exports increased by 4,5 percent from US$53,6 million in 2020 to US$56 million in 2021.
Cigars and cigarettes exports increased from US$26,3 million to US$35,4 million, while exports of other manufactured tobacco and substitutes declined from US$27,2 million to US$20,6 million.
As the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development is spearheading the value chain strategy in the production of tobacco, projections point to further growth this year.
Exports from the building and construction sector grew significantly from US$33,2 million in 2020 to US$43,8 million in 2021 translating to a 31,7 percent increase.
Major exported products in the sector were of unglazed ceramic flags, pavings, wall tiles, mozaic cubes which increased from US$1,4 million to US$9,4 million last year.
Exports of wood sawn or chipped lengthwise, sliced stood at US$6,5 million, while ceramic building bricks exports were at US$4,4 million.
In addition, the household electrical and furniture exports increased by 23,4 percent to US$22 million last year up from US$17,9 million the previous year.
The growth from this sector was mainly driven by exports of plastic articles (US$7,1 million), table, kitchen or household articles (US$5,6 million), electric water and space heaters (US$2,3 million), and household aluminum articles (US$1 million).
The packaging and stationery sector also recorded a 21,9 percent growth in exports, from US$7,6 million in 2020 to US$9,2 million.
Major exported products in the sector were cartons, boxes and paperboard (US$4,3 million), paper and paperboard, corrugated, creped (US$3,1 million) and waste and scrap of paper or paperboard (US$0,9 million).
Shakers
Processed food exports declined by 48 percent from US$115,5 million in 2020 to US$59,1 million.
A major decline was recorded in the exports of sugar which dropped from US$75,5 million to US$15,6 million.
Aquaculture exports also declined by 76 percent during the period under review from US$3 million to US$0,7 million.
The decrease can be attributed to the difficulties faced by fish exporters caused by the Covid-19 pandemic which has affected the cold chain supplies and most Asian countries have restricted access to market for the exporters of meat.
The same also affected livestock and livestock products exports which declined by 39 percent from US$3,8 million to US$2,3 million.
Hides and skins exports marginally decreased by 2,7 percent from US$29,6 million to US$28,7 million during the period under review.
The decrease was mainly recorded in exports of raw hides and skins, fresh or preserved, not tanned which fell marginally to US$28,6 million from US$29,4 million.
Allan Majuru is the ZimTrade chief executive.
Online Reporter