Trade deficit stands at $2,2bn

Oliver Kazunga, Senior Business Reporter
ZIMBABWE exported goods valued at $460,8 million while total imports in the first 11 months of the year reached $2,5 billion, data from the Zimbabwe National Statistics Agency (Zimstat) show.

Zimstat indicated that most of the country’s exports were largely to South Africa, about $390,7 million worth of products going into that market.

Last month, Zimbabwe exported various goods that include furniture, disposable napkins, fish, and cheese among others to about 40 countries among them, Belgium, United States, Mozambique, Zambia, China, Jordan and Botswana.

Since 2009, Zimbabwe’s exports have remained on the negative side against imports that continued to flood the local market resulting in a negative trade balance.

In recent months, the Government has been working on trying to reduce the negative trade balance through a number of policy interventions including the promulgation of Statutory Instrument 64 of 2016.

Through SI 64/2016, which removes several goods from the Open General Import Licence, the Government has been able to control imports although Zimstat indicated that $4,7 billion was spent in the first 11 months of the year importing various products.

As a result of the negative trade balance, Zimbabwe’s trade deficit during the period under review stood at $2,2 billion.

Presenting the 2017 national budget early this month, Finance and Economic Development Minister Patrick Chinamasa projected a downturn in overall export performance for 2016 with exports estimated to fall by 6.9 percent to $3.365 billion from $3.614 billion last year.

“Under the prevailing multi-currency arrangement, export receipts represent the anchor source of the economy and banking sector cash and liquidity,” he said.

Minister Chinamasa said the introduction of the five percent bond note export incentive through the Reserve Bank of Zimbabwe also proffers benefits for improved domestic production next year.