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Judith Phiri, Business Reporter
Zimbabwe’s merchandise exports are predicted to close the year at more than US$7,1 billion with an increase of 1.7 percent compared to last year, this being driven by surging gold, lithium, diamond and tobacco exports.
The country’s trade continues to play a pivotal role in economic development and export growth reflects improved productivity and employment in industry.
The Second Republic’s economic diplomacy, coupled with improved business facilitation activities by ZimTrade, the country’s trade development and promotion organisation, have yielded positive results over the past five years.
From 2018 to date, local products have been finding new markets across the world, while increased industrialisation has seen the diversification of export products, as President Mnangagwa’s administration continues to bolster Zimbabwe’s position in global supply corridors.
In the 2023 Mid-term Monetary Policy statement, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya said: “Merchandise exports are envisaged to close the year at US$7.12 billion a 1.7 percent increase from US$7 billion in 2022, driven by surging gold, lithium, diamond and tobacco exports notwithstanding subdued Platinum Group Metals (PGMs) exports as their prices remain depressed.”
The Minister of Finance and Economic Development, Professor Mthuli Ncube in the 2023 Mid-term Budget and Economic Review, also reiterated that despite the decline in merchandise export in the first five months of 2023, by year-end they were set to grow.
“The country’s merchandise exports slightly weakened by 1.9 percent to US$2.59 billion during the first five months to May 2023, weighed down by declining exports for PGMs and gold. To year-end, merchandise exports are envisaged to grow by 3.5 percent in 2023.”
This is in line with the National Export Strategy and National Trade Policy which targets to grow exports to US$7,2 billion by the end of 2023. There are indications the country will meet the target if the current growth momentum is sustained.
In a previous interview, local economist and National University and Science and Technology (Nust) lecturer Mr Stevenson Dlamini said the growth in merchandise exports was critical for exporting businesses as it positively impacted on their profitability and their viability.
He said the cash flows of the exporting firms were critical for their operational viability, while within the purviews of the Government, there was a need for creation of an enabling environment for the exporting firms through fiscal incentives such as increased foreign currency retention and other tax incentives.
In terms of exports, Zimbabwe has so far exported over 98 million kg of tobacco since the start of the marketing season as the country makes strides towards achieving its target of over US$1,6 billion in total exports, a major increase from US$900 million obtained in 2022 season.
Export values include both what is paid to farmers for growing, curing and grading the crop, and what is earned by the merchants for subsequent extra processing, packing, application of their skills in meeting precise orders from their customers, and the final dispatching.
About US$502 million has so far been achieved from exporting tobacco compared to US$417 million by this time last year, a major increase of 20 percent.
Gold exports contributed 24 percent, almost a quarter of the US$654,2 million generated in May at US$157 million. The total exports in the month were 17,8 percent more than US$555,5 million recorded in April.
Meanwhile, Zimbabwe is now ready to resume grain exports this year with initial exports of 40 000 tonnes of grain to East Africa from the substantial surpluses grown by the farmers as the Second Republic’s agriculture policies continue to guarantee good harvests.
Online Reporter