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Trade Focus
Allan Majuru
Zimbabwe is positioning itself to become a strong player in both regional and international markets.
President Mnangagwa’s Second Republic is already actively implementing programmes and activities to diversify the country’s export markets by leveraging on strong political relations with countries worldwide.
These efforts are further boosting the economy by opening new avenues for trade through strengthened global partnerships that are enhancing Zimbabwe’s presence on the international stage.
Central to these efforts are activities by the Ministry of Foreign Affairs and International Trade, as well as ZimTrade, the national trade development and promotion agency, which are connecting local suppliers with buyers across the globe.
By organising trade missions, participating in international trade fairs and forging bilateral trade agreements, the ministry and ZimTrade are ensuring that Zimbabwean products find new markets.
These initiatives are designed to position the country favourably within global supply routes, boost export volumes and strengthen the economy.
As Zimbabwe seeks to expand its export market, Asia has emerged as a promising frontier for goods and services from the country.
The continent’s growing economy and expanding middle class make it an attractive destination for business expansion.
Asia’s strong growth expectations are driven by evolving consumer preferences, which are shifting towards a diverse range of products and services, with special focus on quality and healthier commodities from suppliers such as Africa. Changes in dietary habits and increased demand for leisure activities are creating opportunities for Zimbabwean exporters.
Further, the region’s openness to new products presents an opportunity for both new and established businesses to tap into a lucrative market.
Asia has strong growth expectations, making it a desirable alternative for business expansion for both new and established exporters.
Successfully exporting to Asia requires a more focused strategy.
To fully comprehend the economic dynamism of each region, it is necessary to collect as much information as possible about each country, including the pertinent laws, entry requirements, freight and logistics, product liability and risks associated with each market, as well as adapting offers to suit the specific requirements of each country.
Trade with Asia
Asia is emerging as Africa’s main trading partner following a significant shift in the continent’s trade relations.
The total value of exports from the Southern African Development Community (SADC) to Asia in 2022 was US$113 billion. China was the region’s biggest importer, buying goods valued at US$53,2 billion. India experienced an all-time high of US$14,7 billion for SADC imports in 2022, followed by the United Arab Emirates (US$11,3 billion).
Trade data suggests there is scope to expand trade relations between Zimbabwe and the different Asian markets.
In 2022, Zimbabwe’s major exports to Asia were tobacco, fruits and nuts, cotton, raw hides, leather, coffee, tea and cut flowers.
China, Indonesia, Vietnam and India were the top importing Asian markets for Zimbabwean products in 2022.
China
China is the largest economy in Asia and the second largest in the world.
Zimbabwe’s trade with China has been on an upward trajectory from 2021 to 2023 and is expected to continue growing.
The Chinese market is top of the list when it comes to export opportunities for Zimbabwe’s nuts, citrus fruits and melons.
In 2022, Harare and Beijing signed a trade protocol allowing smallholder farmers under the Shashi Irrigation Scheme to export oranges.
Negotiations for other horticultural products such as blueberries and avocados, as well as macadamia and pecan nuts are still underway.
According to Trade Map, Zimbabwe was among the top countries exporting to China from the SADC region in 2023, along with South Africa, Angola, the Democratic Republic of Congo, Zambia and Mozambique.
Top imported horticultural produce in China in 2022 from the region were live trees and cut flowers, roots and tubers, citrus fruits, melons, coffee, tea, mate and spices.
India
China has traditionally accounted for the largest share of trade growth between Africa and Asia. However, trade has also grown with other major economies such as India.
Since 2000, India-Africa trade has grown more than twentyfold.
India’s rapid economic development is creating a large middle class and an ever-expanding consumer market.
India’s major imports in 2022 were tobacco, coffee, tea, mate and spices.
Trade Map says Zimbabwean products with export potential in India, besides tobacco and minerals, include oranges, tea, avocados, coffee, macadamia and other nuts, grapefruit and cotton.
South Korea
South Korea is emerging as a potential trade partner for Zimbabwe.
In 2023, exports from Zimbabwe to the Asian country doubled in value to US$20,8 million, up from the US$10,4 million in 2022.
The main products shipped to Seoul were raw tobacco, wood and articles of wood, cut flowers, sculptures and precious metals.
Zimbabwean products with the most potential in Korea include minerals, sugar cane, oranges, cotton and macadamia nuts.
The inaugural South Korea-Africa Summit held in June 2024 paves the way for increased trade between Harare and Seoul.
Indonesia
Indonesia is the largest economy in Southeast Asia; hence it is a very good prospect for companies wishing to enter the Asian market.
The country could provide a market for companies that produce minerals, sugar cane and cotton, as well as those into horticulture and agribusiness.
In 2022, Indonesia imported goods worth US$61,2 million from Zimbabwe, with top products being tobacco and cotton. In 2011, Indonesia and Zimbabwe signed a memorandum of understanding on the establishment of a Joint Commission on Trade and Investment with the aim of increasing trade between the two countries.
According to a survey recently conducted by ZimTrade, goods with potential for export to Indonesia include essential oils and horticultural produce.
Specific requirements on low-hanging fruits
Horticulture is a low-hanging fruit that can provide Zimbabwean businesses with export opportunities in Asia.
Top horticultural products that have been doing well in the Asian market from Zimbabwe include citrus fruits, avocados, blueberries, watermelons, macadamia and pecan nuts, coffee, tea and fresh peas.
Exporters, however, must be aware of food safety and environmental requirements by the Asian market.
Fruit and vegetable exports are subject to several regulations.
Apart from food safety, food safety standards and regulations in the Asian market cover multiple aspects such as plant and animal health, product quality, environmental protection and social welfare.
Stronger emphasis on public health and consumer welfare has called for focus on the entire food safety supply chain.
Almost all Asian governments apply phytosanitary measures to prevent the introduction and spread of pests from plant products.
Exporters, therefore, need to have a phytosanitary certificate before they can export.
Most Asian countries require adoption of the hazard analysis and critical control point approach to assure food safety.
There are also some requirements that are specific to each country with regard to packaging and labelling, which exporters should know before exporting.
In addition to the mandatory and government requirements, private sector standards are increasingly playing a critical role in the marketplace.
For exporters to supply goods to most Asian markets, they must now comply with standards and certifications. These include organic certification, GlobalGAP certification and FairTrade certification.
ZimTrade is working towards facilitating diversification to broaden Zimbabwe’s export basket by ensuring Zimbabwean businesses’ adherence to Chinese import regulations and standards.
To date, ZimTrade has facilitated registration of several companies under the General Administration of Customs of China regulatory system, which is a mandatory requirement for businesses wishing to export food products to China.
Allan Majuru is the chief executive officer of ZimTrade.
Online Reporter