Trade gap narrows as both exports, imports decline

Business Writer

Zimbabwe’s trade deficit narrowed significantly in January 2024, despite a slight decrease in the value of exported goods.

This improvement is primarily attributed to a sharper decline in imports compared to exports.

According to data released by ZimStat, the national statistics agency, the total value of exports in January reached US$540,3 million, representing a 1,9 percent decrease from the previous month.

While exports showed a marginal decline, imports experienced a more substantial drop of 15,2 percent, falling from US$817,0 million in December 2023 to US$692,7 million in January 2024.

This significant decrease in imports resulted in a trade deficit of US$152,4 million, a 42,8 percent improvement from the US$266,3 million deficit recorded in December.

This positive development suggests a potential narrowing of the gap between the value of goods exported and imported into the country.

Industrial supplies dominated Zimbabwe’s exports in January, accounting for an impressive 91 percent of the total value.

Meanwhile, on the import side, 35,8 percent of the goods were classified as industrial supplies. Capital goods and fuels and lubricants followed closely behind, representing 19.3 percent and 19,2 percent of imports, respectively.

Looking at specific products, tobacco (24,5 percent), semi-manufactured gold (24,2 percent), nickel ores and concentrates (11,9 percent), and nickel mattes (10,2 percent) were Zimbabwe’s main exports in January.

In contrast, the country primarily imported mineral fuels and mineral oil products (19,9 percent), machinery and mechanical appliances (11,8 percent), cereals (8,4 percent), vehicles (8,3 percent), and electrical machinery and equipment (6,4 percent).

South Africa emerged as the leading destination for Zimbabwe’s exports in January, absorbing 30 percent of the total value.

The United Arab Emirates and China followed closely behind, accounting for 25 percent and 16,1 percent of Zimbabwe’s exports, respectively. These three countries combined received 71 percent of the total export value.

Similarly, South Africa remained the primary source of imports for Zimbabwe, supplying 36 percent of the total value.

China followed, contributing 16,4 percent of the total import value. Together, South Africa and China accounted for over half (52,4 percent) of Zimbabwe’s imports in January 2024.