HERALD

Zimbabwe must leverage China’s zero-tariff window to drive industrialisation

Business Reporter

Zimbabwe has an opportunity to accelerate export growth, strengthen domestic manufacturing and attract investment by taking full advantage of China’s decision to extend zero-tariff treatment to African countries with which it maintains diplomatic relations.

As the country pursues economic growth through increased production, value addition and export diversification, the arrangement offers an important platform for accessing the Chinese market, expanding business opportunities and integrating local industries into global supply chains.

China’s zero-tariff policy, which took effect on May 1, 2026, grants Zimbabwean exporters preferential duty-free access to the Chinese market.

The policy covers all 53 African countries with which China has diplomatic relations, adding 20 countries, including Zimbabwe, to the 33 least-developed African nations that already enjoyed zero-tariff treatment.

For Zimbabwe, the preferential treatment applies for an initial two-year period, running from May 1, 2026 to April 30, 2028, creating an important window for businesses to develop export capacity and establish sustainable commercial relationships.

Zimbabwe’s manufacturing and agricultural sectors stand to benefit significantly from improved access to the Chinese market.

The country’s established industrial base, agricultural potential and mineral resources provide a foundation for producing goods that can serve China’s diverse import requirements.

Importantly, existing trade figures demonstrate that Zimbabwe already has a substantial commercial relationship with China, providing a foundation on which to build.

Bilateral trade between the two countries surged to US$5,01 billion in the first nine months of 2026, a 51,6 percent increase year-on-year, according to Chinese customs data cited by the Chinese Embassy in Zimbabwe.

For the full year 2025, trade reached a record US$4,39 billion, with China importing US$2,56 billion from Zimbabwe and Zimbabwe recording a trade surplus of approximately US$720 million.

Tobacco remained China’s largest import from Zimbabwe, reaching a record US$790 million in 2025 and accounting for 31 percent of China’s total imports from the southern African country. China also imported 5,250 metric tons of macadamia nuts from Zimbabwe, valued at US$11,62 million, reflecting growing demand for high-value agricultural products.

However, the structure of exports reveals an opportunity to diversify and increase the contribution of manufactured and processed products.

The concentration on raw tobacco and minerals highlights the need to broaden the export base and capture more value from the country’s agricultural and mineral resources.

For manufacturers, the removal of customs duties can improve the price competitiveness of qualifying Zimbabwean products against suppliers from other markets. Sectors such as food processing, beverages, pharmaceuticals, textiles, leather products, citrus, horticulture and natural oils offer opportunities for Zimbabwean businesses to deepen their presence in China.

The opportunity is not simply to increase the volume of goods exported, but to move towards products that generate more income, create employment and strengthen domestic industrial capabilities.

One of the most important opportunities presented by China’s zero-tariff policy is the potential to transform Zimbabwe’s export structure.

Rather than continuing to rely heavily on unprocessed agricultural commodities and minerals, the country can use preferential market access to encourage investment in processing, manufacturing and beneficiation.

For instance, Zimbabwe’s tobacco industry could capture greater value through increased local processing and manufacturing of tobacco products, subject to market regulations and commercial viability.

Similarly, its mining sector could move beyond exporting ores and concentrates towards producing more processed minerals, alloys and manufactured metal products.

The country’s agricultural sector also has opportunities to expand into processed fruit products, packaged foods, edible oils and other products with longer shelf lives and greater value per unit.

These developments would help retain more economic value within Zimbabwe while creating opportunities across the production chain, from farmers and suppliers to manufacturers, logistics operators and exporters.

The horticultural sector provides an encouraging example of the potential. Market-access protocols have been concluded for Zimbabwean citrus, avocados and blueberries.

The first consignment of Zimbabwean blueberries was shipped to China in July 2026, benefiting from the zero-tariff policy.

ZimTrade chief executive officer Allan Majuru described the shipment as a milestone that “confirms that Zimbabwean produce can meet the requirements of a demanding market”.

Zimbabwe’s blueberry cultivation area expanded from 650 hectares in 2025 to 850 hectares in 2026, with total exports projected at 12 000 metric tonnes.

However, the next step must be to expand production, improve consistency of supply and attract investment into cold-chain infrastructure, packaging, processing and logistics.

Zimbabwe could also use the opportunity to strengthen agricultural value chains by encouraging partnerships between commercial producers, smallholder farmers and processing companies. Such an approach would ensure that the benefits of increased access to China extend beyond large exporters to a wider section of the domestic economy.

China’s zero-tariff policy should also be viewed as an investment opportunity rather than simply a trade concession.

Access to a large market without customs duties can improve the commercial case for establishing production facilities in Zimbabwe, particularly in industries where the country has raw materials, skills and an existing production base.

Investors could consider opportunities in agro-processing, food manufacturing, mineral beneficiation, textiles, leather processing and the production of industrial inputs. Zimbabwe can position itself as a production base from which qualifying goods are exported to China, provided they meet the applicable origin requirements.

This would require a deliberate strategy to attract investment into industries that process local resources and produce goods capable of competing internationally.

The policy also provides an opportunity to deepen existing economic relations between Harare and Beijing by moving beyond the traditional exchange of raw materials and finished products towards stronger industrial partnerships.

Joint ventures, technology transfer, equipment investment and skills development could help local companies improve productivity and develop products that meet the requirements of the Chinese market.

The broader objective should be to ensure that increased trade with China contributes to domestic industrial capacity rather than simply expanding the export of unprocessed commodities.

Despite the opportunities, zero tariffs alone will not guarantee increased exports. Access to the Chinese market remains subject to requirements covering rules of origin, product standards, sanitary and phytosanitary measures, customs procedures and other regulatory conditions.

Zimbabwean exporters must demonstrate that their products qualify as originating in the country under the applicable rules.

This is particularly important for manufacturers using imported raw materials and intermediate goods in their production processes. Exporters must also obtain the necessary certificates of origin and comply with Chinese product-specific requirements.

For agricultural producers, meeting sanitary and phytosanitary standards, obtaining the required registrations and securing market-access protocols will remain essential.

ZimTrade has an important role in helping local businesses understand these requirements, identify opportunities, undertake market research and establish commercial relationships with Chinese buyers.

The organisation has begun issuing Certificates of Origin to exporters claiming preferential treatment, with exports shipped on or after May 1, 2026 eligible for retrospectively issued certificates.

There is also a need to strengthen support for small and medium-sized enterprises, which often have the products and production potential but lack the financing, technical expertise and capacity required to access international markets.

Investment in transport infrastructure, energy, cold-chain facilities, storage and logistics will also be critical. Zero tariffs cannot compensate for unreliable supply chains, inconsistent product quality or high transportation costs.

Zimbabwe must therefore address these production and logistical constraints if its businesses are to compete effectively in China.

For Zimbabwe, the two-year preferential tariff window should be treated as an opportunity to accelerate export development and industrial investment. Businesses need to identify products with potential demand in China, assess the applicable market-entry requirements and develop the capacity to supply the market consistently.

Seventeen Zimbabwean companies attended the China International Import Expo in November 2026, representing horticulture, manufacturing, handicrafts, leather, construction, tourism and e-commerce.

ZimTrade said the exhibition was expected to support Zimbabwe’s efforts to “diversify its export basket, strengthen its presence in China and translate growing bilateral economic relations into sustainable business opportunities for local enterprises”.

Government, meanwhile, must ensure that trade promotion is closely linked to industrial policy, agricultural production and investment facilitation.

This means prioritising industries where Zimbabwe has competitive advantages, encouraging value addition and supporting businesses to move from occasional exports towards sustained participation in international supply chains.

The country should also use its diplomatic and commercial relationships with China to pursue deeper cooperation in technology, manufacturing, agricultural research and industrial development.

Ultimately, the success of China’s zero-tariff initiative will depend on how effectively Zimbabwe converts preferential market access into increased production, investment, employment and export earnings.

The opportunity is clear: Zimbabwe must use China’s opening of its market not merely to sell more of what it already produces, but to transform what it produces, how it produces it and how much value it retains from its exports.

Zero tariffs open the door, but industrial capacity, competitive production and value addition will determine how much Zimbabwe gains from the opportunity.