adminGlobal foreign payments reached US$5,1 billion versus the export value of U$2,2 billion. Minerals constituted about 71 percent of total exports, led by platinum at US$511 million, diamonds US$456 million and gold at US$400 million.
Tobacco accounted for 12 percent, manufacturing 7,9 percent, agriculture 8,5 percent while hunting contributed about 0,2 percent.
During the period, the retail and distribution sectors were the largest contributors to foreign currency outflows.
Economist Mr Gift Mugano said the latest figures were an indication that Zimbabwe did not have the capacity to export.
“We must address the basics and concentrate on addressing challenges affecting the industry. We must focus on getting long-term finance that is needed in the industry for it to retool and produce competitively, rather than decorating ourselves in trading groups such as Comesa and EAC,” he said in an interview yesterday.
“It is good to continue to integrate globally. Obviously this will put the country on the map and as a nation we will continuously get abreast of development in these
trading groups. However, the ultimate objective of these efforts is to create market access and boost local exports.
“I believe Zimbabwean authorities have done a lot in terms of creating market access within Comesa and Sadc and the recent tripartite agreements (Comesa/-EAC/Sadc) have extended Zimbabwe’s market to a population of about one billion and combined GDP of US$1 trillion which we can potentially tap into.
“But what is happening? Zimbabwe is literally having negative trade balances with virtually all its trading partners in these regional groupings.”
In its 2011 annual report, released two week ago, ZimTrade, the country’s trade development and promotion agency, said export performance during the first half of the year remained sluggish.
“The outlook remains unpredictable,” said the report.
“Export performance for the first half of 2012 has been sluggish, with imports continuing to outperform exports.
“Although the Government launched the highly credible industrial and trade development policies in March this year, implementation is being threatened by lack of resources.”
The report also expressed concern over the country’s export basket, dominated by commodities such as mineral and raw agricultural products, as opposed to manufactured or value added products.
Meanwhile, imports are dominated by consumer goods as opposed to productive machinery.
This year, export revenues are expected to increase to US$5,2 billion, while imports are projected to climb up to US$8,2 billion, translating into a US$2,8 billion deficit.
As a result of low industrial capacity, local goods are increasingly finding it tough to compete against more competitively priced imports, especially from Asia and
South Africa.
Zimbabwe’s manufacturing industry is facing significant challenges, including old and obsolete equipment, high labour costs, erratic utility supplies, high cost of short-term borrowing, skills drain and limited import protection.
The sector requires US$2,5 billion to recapitalise.
Online Reporter