Andrew
Trade Focus
Allan Majuru
The economic diplomacy agenda being fronted by President Mnangagwa continues to bear fruit as Zimbabwe’s exports continue an upward trajectory.
Complemented by increased trade development and promotion activities undertaken by ZimTrade from January to date, where there have been enhanced engagements between local exporters and buyers from the region and beyond, demand for local products in export markets has gone up.
According to statistics released by ZimStat recently, the country recorded a 30,8 percent export growth between January and May this year compared to the same period a year ago.
This comes as most countries around the world are recording declining exports because of prolonged Covid-19-related challenges and disruptions in supply chains caused by the Russia-Ukraine war.
For the period January to May 2022, exports stood at US$2,6 billion compared to US$2,02 billion recorded during the same period in 2021. Imports similarly increased by 18 percent to US$3,3 billion from US$2,8 billion in 2021.
As a result, the trade deficit narrowed to US$689 from US$803 million.
In the period, US$46 million worth of products and services were exported to Belgium, up from US$26 million last year.
Exports to Italy have also surged from US$0,5 million in 2021 to US$15,5 million.
This shows a positive trend in export diversification.
Big movers
Exports of manufactured or valued-added products increased by 22,2 percent from US$114,4 million between January and May 2021 to US$140 million during the same period in 2022.
This increase follows efforts by Government to increase the visibility of local products in regional and international markets through several trade promotion events held to date by ZimTrade.
From January, ZimTrade, through the Ministry of Foreign Affairs and International Trade, organised business-to-business engagements between local exporters and buyers from Rwanda, Dubai, Democratic Republic of Congo, United Kingdom, Ghana and Mozambique.
As the year progresses, and with more deals confirmed from these engagements, projections are that exports of manufactured goods will continue to grow.
Processed foods also recorded a 30,7 percent export growth from US$21,7 million in 2021 to US$28,4 million in 2022 in the period under review.
The sector’s recovery is anchored on increased sugar exports, which rose from US$2,9 million to US$8,6 million.
There has been notable demand for Zimbabwean processed foods in markets such as DRC, Zambia, Malawi, Mozambique and United Kingdom, with consumers stating that the quality of locally produced products is higher than competition.
To continue growing exports from the sector, there is need for local businesses to leverage on already performing and popular goods in export markets to springboard other top products into regional and international markets.
Local companies can also take advantage of niche products whose demand is growing in international markets, thanks to changes in consumer behaviour where people now seek products that have immune-boosting properties.
For example, baobab products, natural herbs and spices and wild fruits such as marula are some of the products that if value-added can bring positive results for local companies.
Further, manufactured tobacco exports increased from US$22,8 million in May 2021 to US$24,4 million in 2022, translating to a 7 percent growth.
With current efforts by ZimTrade to assist sector players to break into the Middle-East, there should be continued export growth as deals begin to materialise.
Hides and skins exports increased by 100 percent from US$4,3 million in Jan-May 2021 to US$8,7 million during the same period in 2022.
This increase is the highest recorded from the sector in the period since 2019.
Major export product in the sector were raw hides and skins, fresh or preserved, not tanned.
Packaging and stationery sector’s exports increased from US$2,9 million between January-May 2021 to US$7,2 million this year, translating to a 150 percent growth.
The growth was caused by a sharp increase in exports of products such as cartons, boxes and box files, which increased from US$1,6 million last year to US$4 million this year.
There was also an increase in exports of paper and paperboard, which jumped from US$500 000 last year to US$2,7 million this year. Players in the sector are encouraged to use the Zim Packaging Portal (www.zimpackaging.co.zw), a key source of information on all things packaging, with content contributors taken from the packaging industry.
Local businesses looking for convenient packaging should visit the platform and get assistance from all local producers of packaging products under one roof.
In addition, building and construction exports marginally increased from US$14,9 million in May 2021 to US$15,7 million in May 2022, implying a 6 percent increase.
The growth was mainly propelled by increase in export of tiles, which gained from US$1,7 million in May 2021 to US$5,8 million this year. Although exports continue to grow, there are heavily dominated by minerals and unmanufactured tobacco, which is not sustainable.
The mining sector’s exports climbed 31,1 percent from US$1,6 billion in May 2021 to US$2,1 billion in May 2022.
The major contributor in the sector was gold, which doubled from US$391 million in May 2021 to US$791 million in 2022, while nickel matte exports also increased from US$399 million to US$488 million.
Ferro-alloys exports increased from US$102 million to US$168 million, whilst diamond exports gained from US$86 million to US$94 million. Unmanufactured tobacco exports increased from US$236 million in May 2021 to US$320 million in May 2022.
Shakers
The clothing and textile sector exports marginally dropped from US$9,4 million to US$9,1 million.
Household and furniture sector also recorded a 14 percent drop from around US$8 million to US$6,9 million due to the drop in electric water and space heaters, which recorded US$500 000 this year from US$1,1 million a year ago.
Exports of table, kitchen or household articles also declined from US$2,1 million last year to US$1,9 million this year.
Allan Majuru is ZimTrade’s chief executive officer
Bongani Ndlovu
Online Reporter