Wholesale, retail trade sectors drive Bulawayo GDP

BULAWAYO’S gross domestic product reached $1,5 trillion in 2022 largely driven by wholesale, retail trade sectors and motor vehicles repair industry which contributed a combined 32,2 percent.

Using the official exchange rate of US$1/4 568, the GDP amounts to US$328 million.
Outlining the country’s provincial GDP for 2022, Zimbabwe National Statistics Agency (ZimStat) Director General, Mr

Taguma Mahonde said Harare province GDP was estimated at $3,040 trillion while Midlands and Mashonaland West was estimated at $1,398 trillion and $1,374 trillion respectively.

In line with the Government’s policy thrust on devolution and decentralisation, ZimStat is now compiling devolution statistics for the period 2012 to 2018.

The agency used the hybrid approach, which is based on data from surveys and administrative sources to compile provincial GDP statistics.

“The devolution policy thrust brings with it demand for provincial statistics. Provincial GDP measures the economic activity at provincial level to facilitate decision making and policy evaluation at provincial level.

“The agency produces provincial GDP estimates on an annual basis,” reads part of Mr Mahonde’s report.
The measurement of provincial GDP is based on the production approach which estimates GDP by industry. The compilation follows the 2008 System of National Accounts.

“The provincial GDP estimates thus follow the principle of residence which states that production is accounted for in the province where producing units are resident,” the report said.

Based on the report, wholesale and retail trade were the main economic drives for three provinces, Bulawayo, Harare and Masvingo.

The new model suits grocery outlets, boutiques, salons, garment-making materials, electrical appliances, furniture, building materials, bedding, cellphone and accessories, spare parts, clothes among other things.

In Bulawayo, 32,2 percent of the GDP came from the wholesale and retail trade sector, while Harare saw a 24,5 percent contribution and Masvingo province registered 18,5 percent.

Manufacturing activities accounted for 13,6 percent of Bulawayo’s GDP. Finance and insurance activities contributed 10,9 percent of the provincial GDP.

In Matabeleland South and Matabeleland North provinces, mining and quarrying operations are still the biggest gross domestic production contributors.

In the prior year, the sector also topped the contributions.

The ZimStat report indicates that mining and quarrying activities contributed 25,6 percent and 21,7 percent to Matabeleland South and Matabeleland North GDP respectively.

The report indicated that in Matabeleland North, the electricity industry was second with 14,9 percent while wholesale, retail, and repair of motor vehicles accounted for 18,5 percent in Matabeleland South, with manufacturing having 9,2 percent.

However, the tourism sector which is one of the key economic drivers in Victoria Falls and Hwange areas does not feature among the top three sectors in Matabeleland North.

The Government designated Victoria Falls as a special economic zone (SEZ) with a focus on tourism and has started crafting a blueprint to guide the operationalisation of the Integrated Development Programme/Conceptual Development

Framework for the Victoria Falls-Hwange-Binga SEZ, whose idea is to integrate economic activities, catapult growth and improve livelihoods in the province.

The province is the country’s tourism capital, as it is home to the Rainforest in the prime resort city of Victoria Falls and has the country’s biggest game park — Hwange National Park, Chamabondo, Zambezi and Victoria Falls national parks where the Big Five and various other game species and birds, as well as several tourism activities are found.

The mining and quarrying sector is also strong in the Midlands province contributing 27,7 percent, whereas the wholesale and retail trade and repair of motor vehicles contributed 14,3 percent.

Agriculture, forestry and fishing accounted for 12,2 percent and manufacturing contributed 9,9 percent of the GDP.