malvernmugadzikwa
Trade Focus
Allan Majuru
Zimbabwe’s relationship with China has increasingly become significant, culminating in heightened economic ties between the two countries.
The recent State visit by President Mnangagwa to China underscores this strengthening relationship.
During his visit, which was part of activities at the Forum on China-Africa Cooperation (FOCAC), he toured various manufacturing hubs across several Chinese provinces.
He praised China’s advanced industries and highlighted the potential for Zimbabwe to tap into these sectors for mutual benefit.
The State visit to China, coupled with ongoing trade developments and protocols, sets the stage for a robust partnership that can drive mutual economic benefits for both nations.
On the sidelines of FOCAC, President Mnangagwa and Chinese President Xi Jinping renewed their Comprehensive Strategic Partnership of Cooperation, with their respective governments signing 17 agreements and memoranda of understanding covering sectors such as agriculture, infrastructure development and mining.
The two leaders also agreed to deepen trade and cooperation for mutual gain and to collaborate on global issues to foster a fair and just world.
With continued collaboration, Zimbabwe is well-positioned to capitalise on the growing demand in China for a wide range of products, from raw materials to high value-added goods.
Under the Second Republic, trade between Zimbabwe and China has been growing exponentially, with the former’s exports to the latter increasing from US$256,1 million in 2021 to US$1,28 billion in 2023, according to Trade Map.
This growth signifies deepening economic ties between the two countries, although there remains considerable potential for further expansion, particularly by introducing new products in the Chinese market that align with the East Asian country’s existing import patterns.
What is perhaps important is to look at China’s trade and opportunities for Zimbabwe.
China’s trade with Africa has seen significant growth, particularly from 2020 to 2023.
During this period, China’s imports from Africa jumped from US$73,72 billion in 2020 to US$109,48 billion in 2023.
The primary products imported by China from Africa last year included mineral fuels, ores, steel, tobacco and various other raw materials, underscoring the continent’s role as a key supplier of these essential resources.
Among the top products China imported from Africa in 2023 were mineral fuels and oils, amounting to US$35,79 billion; ores, slag and ash at US$27,62 billion; precious stones and metals totalling US$15,34 billion; and copper and related articles worth US$14,74 billion.
Other notable imports included iron and steel (US$2,35 billion), oil seeds and oleaginous fruits (US$2,16 billion), and tobacco products valued at US$777,8 million.
Opportunities
Although the list highlights the continued demand for Africa’s primary products in the Chinese market, it also points to untapped opportunities in sectors such as horticulture, processed foods, essential oils, natural herbs and spices, and leather products, as well as arts and crafts.
The horticulture sub-sector has witnessed a significant growth area in China’s imports from Africa, increasing from US$572,32 million in 2019 to US$949,84 million in 2023. This growth has been facilitated by trade protocols that China has pursued with several African nations, including Zimbabwe.
For instance, the citrus protocol signed between China and Zimbabwe has been instrumental in expanding the export potential for Zimbabwe’s sweet oranges, mandarins, grapefruits, lemons and sour oranges, among other fruits.
Historically, Zimbabwean citrus exporters have primarily focused on markets in South Africa and the European Union.
However, the agreement with China opens new avenues and broadens the export destinations for Zimbabwean citrus.
Exhausting the current citrus protocol could pave the way for additional agreements between Zimbabwe and China, potentially covering other fresh produce and fruits that are in demand in the Chinese market.
Beyond citrus, other horticultural products with significant export potential to China include berries, stone fruits and nuts. China’s total imports of fresh strawberries, raspberries, blackberries, currants and gooseberries have surged over the last five years, from US$3,15 billion in 2019 to US$6,71 billion in 2023, according to Trade Map.
Similarly, total imports of fresh stone fruits increased from US$1,67 billion in 2019 to US$8,34 billion in 2023, while total imports of fresh and dried dates, figs, pineapples, avocados, guavas, mangoes and mangosteens rose to US$1,13 billion in 2023.
In addition to these, China’s imports of coffee, tea, maté and spices have grown significantly from US$952 million in 2019 to US$1,79 billion in 2023, presenting further opportunities for Zimbabwe’s top-quality tea, coffee, natural herbs and spices.
The demand for edible vegetables and certain roots and tubers, including potatoes, onions, carrots and cucumbers, has surged from US$1,57 billion in 2019 to US$3,36 billion in 2023.
Apart from horticulture, there are substantial opportunities in the supply of essential oils to China, a market that has expanded significantly in recent years.
According to Trade Map, China’s imports of essential oils and related products grew from US$16,11 billion in 2019 to US$17,67 billion in 2021.
This growth has been largely driven by the increased importation of beauty or skincare products, whose value soared from US$13,23 billion in 2019 to US$14,43 billion in 2023.
The growing market for essential oils in China presents an excellent opportunity for Zimbabwean exporters to increase their presence in this sector, which has been relatively underutilised thus far.
Essential oils used in aromatherapy, such as rosemary, peppermint and sweet orange oils, are among the products that local Zimbabwean farmers and businesses could target for export to China.
With Zimbabwe’s rich natural resources, including indigenous fruits and spices, there is considerable potential for value addition in the production of essential oils for the Chinese market.
Furthermore, wild plants such as baobab, marula, moringa seeds and mongongo nuts offer unique opportunities for Zimbabwe to tap into the growing demand for natural and organic essential oils in China.
These products cater for the cosmetic and health industries, and also align with the global shift towards sustainable and eco-friendly consumer goods, making them highly attractive in the Chinese market.
Allan Majuru is the chief executive officer of ZimTrade.
Online Reporter