Tinaye Agere
Allan Majuru
Zimbabwe will assume the Southern African Development Community (SADC) chairmanship this month, presenting the country with an opportunity to influence the region’s agenda for development and economic prosperity.
Under the leadership of President Mnangagwa, Zimbabwe will leverage on this role to enhance stability, economic integration and sustainable development across Southern Africa and the rest of the continent.
The Second Republic’s focus on the engagement and re-engagement agenda, as well as economic diplomacy, has already been unlocking numerous economic benefits.
This has been paying off, as figures show the country has been growing its exports annually, anchored in enhanced production and opening of new non-traditional markets.
Zimbabwe has seen its products perform well in new markets, including the United Arab Emirates (UAE), China and Italy.
Furthermore, intra-continental exports accounted for 47,7 percent of Zimbabwe’s merchandise exports in 2022, marking a promising start in the African Continental Free Trade Area (AfCFTA), as the average intra-continental trade is below 15 percent.
Considering this ongoing success, Zimbabwe’s assumption of the SADC chairmanship will also allow the country to boost its standing on the international stage and strengthen its relations with countries in the region, as well as reap benefits from cross-border relations.
The country’s leadership role in SADC will provide an avenue to further push for the removal of trade barriers and promote intra-regional value chains and intra-regional trade.
This aligns with the broader goals of the AfCFTA, which seeks to create a single continental market for goods and services, and facilitating the movement of capital and people.
By fostering a more integrated regional market, Zimbabwe will increase its exports and boost knowledge and technology transfer.
In addition, Zimbabwe’s previous tenure as SADC chair in 2014 saw the country play a significant role in the formulation of the SADC Industrialisation Strategy and Roadmap (2015-2063).
With Zimbabwe once again at the helm of the regional body, the country will further champion industrialisation initiatives that emphasise value addition and beneficiation of raw materials, creating more robust manufacturing sectors across the region.
This will help diversify the economy and reduce dependence on primary commodities.
Trade opportunities
With Zimbabwe assuming the leadership of SADC, and growing its influence on the continent and beyond, there are vast trade opportunities that will open up for local businesses.
It is, therefore, important for those seeking to expand their influence in Africa to understand the continent’s key export opportunities.
Africa’s growing consumer markets, abundance of natural resources and increasing regional integration initiatives present promising avenues for Zimbabwean exporters.
Agriculture remains a vital sector in many African countries, presenting significant export potential for Zimbabwe.
With their expertise in maize, tobacco, cotton and horticulture, local companies can tap into African markets seeking food security and agricultural products.
Additionally, agro-processing ventures, like value-added processing and packaging, can enhance product competitiveness and attract premium prices.
It is important to note that Zimbabwe has a competitive advantage in the agriculture sector.
With its fertile lands, favourable climate conditions and potential for agricultural innovation, the country can expand its agricultural exports, including crops, livestock and processed food products.
Africa is rich in natural resources, making the mining sector another lucrative opportunity for local exporters.
With vast mineral deposits, including platinum, gold, diamonds and lithium, Zimbabwe can supply raw materials or engage in value-addition activities within the continent.
Collaboration with local mining companies and adhering to environmental and social sustainability practices are crucial for long-term success.
Rapid urbanisation and economic growth in Africa necessitate considerable investment in infrastructure.
Zimbabwean companies specialising in construction, engineering and renewable energy solutions can explore this market.
Establishing partnerships with local firms or participating in infrastructure development projects funded by international organisations can help penetrate these markets effectively.
Zimbabwe is known for its rich natural beauty, cultural heritage and diverse wildlife, making it a potential tourist hotspot.
By investing in infrastructure development, improving services and promoting sustainable tourism practices, Zimbabwe companies in the tourism and hospitality sector can attract more international visitors and boost revenue.
Africa’s increasing digitalisation and tech-driven solutions provide immense opportunities for local exporters in the technology sector.
By offering innovative products and services, such as fintech, e-commerce platforms and mobile payment solutions, Zimbabwe can tap into Africa’s fast-growing digital economy.
Collaboration with Zimbabwean technological firms and adapting products to local contexts are key strategies for successful market penetration.
Additionally, Zimbabwe can take advantage of its skilled workforce and technological capabilities to develop a robust outsourcing industry.
By attracting foreign companies to outsource their business processes or information technology (IT) services to Zimbabwe, the country can create employment opportunities, attract foreign direct investment and boost its export revenues.
Further, Zimbabwe arts and crafts companies can focus on promoting their unique products in international markets.
The country has a rich cultural heritage, including traditional crafts such as wood carving, basket weaving and pottery.
By marketing these products effectively, Zimbabwe can tap into the continent’s demand for unique and authentic crafts, which is growing in markets such as Namibia.
Allan Majuru is the chief executive officer of ZimTrade.
Online Reporter