Sundaymail Editor
Trade Focus
Allan Majuru
Zimbabwe’s economic development agenda is clear on its topmost target, which is attaining an Upper Middle Income Economy by 2030.
To attain this, the Vision 2030 championed by President Mnangagwa’s Government addresses key issues aimed at improving livelihoods and reducing poverty in the country.
Pursuant to Vision 2030, the Government developed the National Development Strategy (NDS1) in line with the aspirations contained in the United Nations’ Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
Explaining the linkages between Vision 2030 and the global development agenda, President Mnangagwa is on record as saying that “Zimbabwe’s Vision 2030 directly addresses the aspirations highlighted by the SDGs and Agenda 2063 and seeks a development path which leaves no one behind.”
With no doubt, the integration of all communities in the export business will make it easy to attain the targets set under Vision 2030 as well as the SDGs.
This is because foreign currency generation, through the export business, will improve livelihoods of rural communities in Zimbabwe.
What is important is perhaps taking a closer look at how integration of all communities into the export business will contribute towards attainment of Vision 2030 and SDGs.
Ending poverty, hunger and improving livelihoods
The National Development Strategy, launched in 2019 by President Mnangagwa, notes that exports remain “the most sustainable source of foreign currency and important driver of economic growth and development”.
Here, exports contribute more towards ending hunger and poverty, while also improving livelihoods.
This explains why ZimTrade, the national trade development and promotion organisation, has prioritised integration of rural communities and smallholder farmers into the mainstream export business.
ZimTrade is currently conducting Provincial Baseline Surveys in each of the country’s 10 provinces which will be a reference point for specific products and services.
This will involve coming up with capacity building programmes to assist rural communities to upscale their production and improve on their export readiness.
The target is to unlock direct market access for previously marginalised communities to get an opportunity to earn more foreign currency.
Current activities undertaken by ZimTrade to integrate rural communities into the export business include the organic certification of pineapples production by Ndiyadzo farmers. Once certified, the participating rural farmers will earn a premium price in the Netherlands, the target market for the current project.
The recently launched National Garlic Export Project, which is targeting to intensify production of garlic for foreign markets, will also increase foreign currency earnings by rural communities, thus contributing towards improving livelihoods.
Once export ready, most rural communities across the country will access the global import bill of garlic, which has been growing from around US$2, 18 billion recorded in 2011 to US$3 billion in 2020, according to Trade Map.
ZimTrade is also planning to replicate the National Garlic Export Project, focusing on ginger and turmeric as these have potential to increase foreign currency earnings for rural communities. Thus, improved ginger production will allow marginalised communities to unlock the export potential of this product, whose global import bill has been growing over the past five years from US$853 million in 2015 to US$1, 05 billion in 2019.
Some of the potential markets for these products include the Netherlands, United Kingdom, United Arab Emirates, Namibia, Angola, Mozambique, and the Democratic Republic of Congo.
Therefore, in line with the devolution agenda, rural communities across all provinces in the country must capitalise on areas that they enjoy competitive and comparative advantages and use these vantage points to develop into hubs for production and export of unique products and services.
Reducing inequalities and empowering women
Globally, financial inclusion has been identified as having huge potential to address some of the key challenges that have for long suffocated economic development.
The participation of women in key production and value-chain processes is a pre-requisite for growing exports, which already have been identified as a key enabler for attaining Vision 2030.
For example, women’s access to economic activities, including the export businesses, will make it possible for them to contribute more towards the development of the country. The International Trade Centre (ITC) notes that women play a major role in the global economy because they “invest more in their families than men do, in areas such as education, health and nutrition, creating a secure foundation for the future of their families and communities.”
Considering this contribution, ITC concludes that “empowering women economically, especially through their involvement in trade, creates job opportunities for everyone.”
There is a general assumption that the export business is a male-dominated industry and efforts must be channelled to change this misconception.
What is crucial now is to ensure that actual opportunities are made available to women, particularly around economic areas such as production, manufacturing, and value-addition. Women-led businesses should also utilise current programmes being implemented to integrate them into the export business.
For example, ZimTrade – together with the Netherlands Embassy in Harare, Zimbabwe Agricultural Development Trust, Hivos and PUM – launched the Food for Export Masterclass (FEM) last year to help accelerate access to foreign markets by women-led businesses.
The FEM programme is designed to build the capacity of female entrepreneurs in various aspects of horticulture, dairy production, food processing, and food export business, targeting to transform them into successful exporters using the latest production and business methods. The progress recorded under current programme activities shows women-led businesses have the potential to increase their share of the global import bill across the target sectors.
FEM is one of the many programmes currently underway to help address the economic and gender gap that women-led businesses should not shy from.
Further to this, integration of young people into the export business will improve their export earnings and address some of the current challenges such as drug abuse.
Unlocking potential in young people
Youth-led businesses must participate in key programmes that will enhance their contribution to key national economic activities, amongst them exports.
These activities will help young people transform their creative ideas into successful business plans.
For example, the Eagles Nest Youth Export Incubation Programme, launched by ZimTrade last , is helping to bridge the knowledge gap by bringing together different stakeholders to support and nurture youth-led businesses across Zimbabwe into viable export ready companies.
One of the key areas of the programme is capacity building, which will create more benefits, including direct and indirect job creation and the development of human capital and new skills.
Going forward
As the examples listed here are just a highlight of how exports can help attain Vision 2030 and SDGs, efforts must be channelled towards creating an enabling environment to do business.
For example, export procedures must be streamlined to make sure that foreign markets are easily accessible even to the rural communities.
Other related requirements for exports, such as documentation and permit procedures, must also be made easily accessible across the country, to facilitate smooth movement of export products from the point of production to the markets.
Allan Majuru is the ZimTrade chief executive.
Bongani Ndlovu
Online Reporter