aurora
Business Writer
Zimbabwe and China are negotiating a citrus fruits export deal that Zimtrade has described as ‘farming industry transforming,’ while observers say the country should not miss on the facility set to expose local businesses to a US$500 million market.
The deal, which will further entrench economic corporation between the two countries, is set to open up a new frontier for locals who have previously relied on the European market that of late has not been welcoming.
The consummation of such agreements, is in sync with Government’s export development strategy under the National Development Strategy running in phases – (NDS1 2021 to 2025) and (2026 to 2030).
NDS is the economic blueprint with which Government expects to foster rapid economic growth towards an upper middle income economy by 2030.
Growing value added exports, both by quantity and variety, is at the core of this development strategy that has been embraced by industry.
The country’s export development and promotional agency, ZimTrade, is negotiating with Chinese authorities on behalf of Government and deal announcement is now imminent.
ZimTrade chief executive officer Allan Majuru, said such a deal will give local farmers access to a market worth US$500 million annually.
He said the deal was meant to bit market barriers that exporters encounter.
“. . . for exports to take place, there are Government to Government protocols that govern the movement of agricultural produces and other products,” Majuru said.
“On the citrus protocol with China, this is expected to open up direct access to a huge market for local farmers.
“The good thing about Zimbabwe taping into the Chinese market is that it will ease the over reliance on the European market, allowing the country to diversify and hedge against price volatility by concentrating on one market,” he said.
Under the protocol, Majuru said, citrus fruits to be exported to China, include orange, mandarin, lemon, grapefruit, limes, tangelo and grapefruit.
Local farmers’ prospects are further boosted by the fact that different varieties of citrus that are grown in Zimbabwe are in demand the world over.
However, the ZimTrade boss notes, despite the present demand the exports promotion agency is constantly looking at market trends to ensure that Zimbabwe continue producing new varieties that are growing in demand.
Examples include the growing demand for soft citrus as well as that for lemons and limes.
Citing the Trade Map, ZimTrade notes that in 2019 China imported citrus fruits worth around US$594 million.
The figure shows that the Chinese market has the wherewithal to make huge impact on Zimbabwe.
The bulk of their present imports come from South Africa.
Zimbabwe has a climatic condition that allows the growing of many fruits and vegetables on high demand the world over.
Bongani Ndlovu