Chronicle Editor
Oliver Kazunga, Senior Business Reporter
ZIMBABWE’s trade deficit has narrowed by over 90 percent to $22,1 million in February this year from $228,6 million in February last year.
Trade figures released by the Zimbabwe National Statistics Agency (ZimStat) this week show that in February last year, the country imported goods worth $574,9 million while the value of exports during the same month were $346,3 million, reflecting a trade deficit of $228,6 million.
In February this year, Zimbabwe had imported goods worth $370,5 million against exports amounting to $348,4 million, showing a trade imbalance of $22,1 million.
An analysis of the trade figures for February 2018 and February 2019 shows that Zimbabwe’s trade deficit has declined by 90,4 percent.
Of late, the Government has come up with import substitution programmes aimed at reducing the country’s trade imbalance.
Zimbabwe exports to different countries across the globe with South Africa being its largest trading partner.
In February this year, Zimbabwe imported $139 million worth of goods from South Africa while the value of exports totalled $169 million.
And in February 2018, the country imported $261,4 million worth of goods from South Africa while exports amounted to $216 million.
Zimbabwe’s exports largely comprise agricultural produce and minerals while the country’s imports are woven fabric, synthetic fibre, canvas and ornamental trimmings among others.
A recent United Nations report revealed that Zimbabwe was 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. — @okazunga.
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