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Kudakwashe Mhundwa and Kumbirai Tarusarira Business Reporters
Local companies have been urged to tap into the $2,6 billion Comesa sugar and fibre board market, the Competition and Tariff Commission has said.
According to statistics provided by the commission, Zimbabwe in 2016 supplied 0,9 percent and 0,607 percent of fibre board and sugar products to the market, respectively.
“The value of Comesa imports from the world of fibre boards increased by 18, 7 percent from USD$165, 3 million in 2015 to US$194 million in 2017.
“Zimbabwe`s contribution in 2016 of fibre board in Comesa was 0,9 percent, therefore it has potential to access and negotiate for a market for fibre board in Comesa. However it requires supporting companies in the wood and articles of wood classification Industries such as Allied Timbers.
“In relation to sugars, the main export is sugar cane and chemically pure sucrose, in solid form.
“The value of Comesa imports from the world of sugar and sugar confectionery increased by 58,4 percent from US$1, 51 billion in 2015 to US$2,4 billion in 2017.
“Zimbabwe’s contribution for sugars in Comesa was 0,607 percent (in 2016), and therefore it has a perspective market for sugar product in Comesa.
“Accordingly plans to support sugar cane farmers through irrigation schemes should be prioritised using water bodies such as Tokwe-Mukosi,” said the CTC in its 2019 newsletter.
Meanwhile, the country witnessed a decline in export volumes. Stone plastering lime and cement declined 14 percent to $2,8 million in 2016 from $4,3 million in 2015, products of the milling industry; malt; starches, insulin, wheat gluten declined from $3,8million in 2015 to $3,4million in 2016
CTC said while the country`s trade with Comesa is relatively small (amounting to 3 percent), Zimbabwe needs to diversify its export products and enhance competitiveness to benefit from Africa’s second largest trading bloc.
“Zimbabwe`s trade with Comesa countries though small (about 3 percent of Zimbabwe`s export value in 2016) compared to Sadc, has more trade potential to realise in this region.
It is attention grabbing there are value added products which are being exported which makes it easier for Zimbabwe to diversify its export basket as a country to realise trade competitiveness,” said the commission.
Zimbabwe’s exports largely comprise agricultural produce and minerals while the country’s imports were woven fabric, synthetic fibre, canvas and ornamental trimmings among others.
A recent United Nations report revealed that Zimbabwe is among the developing countries that heavily rely on commodity exports due to limited diversification of their economies.
Due to suppressed production the country also relies on importing key raw materials for its industry, which drains the scarce foreign exchange in the economy.
In this regard, experts have stressed the need to adopt a value chain approach and import substitution models under the value addition and beneficiation thrust so as to ensure production of high value end products.
Online Reporter