Export volumes increase

Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S exports clocked $358.1 million in the month of August 2017 compared to $292 million in January, trade statistics from the Zimbabwe National Statistics Agency show.

The data also shows that during the period under review, the country still suffered a negative trade balance as imports amounted to $448 million from $384.8 million at the beginning of the year.

In separate interviews yesterday, economic analysts attributed the increase in export volumes to a raft of policy measures the Government and the Reserve Bank of Zimbabwe have announced aimed at harnessing the trade deficit.

“The emphasis of the Statutory Instrument 64 of 2016 generally creates confidence in some sectors as some companies were doing very well. Zimbabwe’s export promotion agency, ZimTrade has been pushing for companies to increase their exports. And companies have seen the need to export in order to facilitate their growth,” said Dr Davison Gomo.

He said once exports start showing an upward trend against imports, capacity utilisation could be enhanced thereby subsequently creating more employment opportunities.

Economist, Ms Mercy Shumba said that as the Government and RBZ continue to implement measures aimed at propelling growth and development of the export sector, the country’s trade statistics would eventually be skewed towards the exports side.

“The growth of exports is not something that just happens overnight but it’s a process driven largely by the policies implemented by the Government and the Central Bank. Of late, we have started seeing the Government and the Reserve Bank deliberately targeting exports growth through policies such as the five percent export incentive scheme and the promulgation of SI 64/2016,” said Ms Shumba.

Another economist, Ms Wendy Mpofu said a lot still needs to be done to capacitate local industry to export.

Last year, RBZ introduced the five percent export incentive bonus scheme to encourage companies to export.

As part of promoting exports growth, the Government also promulgated SI 64/2016, which removed several goods from the Open General Import Licence to support local companies. — @okazunga