Chronicle Editor
At a time when world economies are being disrupted due to global shocks, the role of trade is becoming more important. In Zimbabwe, the country has increased its volume of trade.
Efforts under NDS1 to diversify the mix of exports are underway, and ZimTrade, the national trade development and promotion agency, is playing an increasingly key role in making this happen.
Zimpapers Group Political Editor Lovemore Ranga Mataire (L. R. M) speaks to ZimTrade chief executive officer Allan Majuru (A. M) about the agency’s recent successes and the activities it is undertaking to improve Zimbabwe’s trade capacity.
L. R. M: ZimTrade recently won the prestigious World Trade Promotion Organisation (WTPO) 2022 award beating several agencies representing a number of countries. Kindly explain what this award entails and its significance to Zimbabwe?
A. M: The awards identify and recognise efforts by trade promotion organisations (TPOs) that have successfully contributed to strengthening the competitiveness of exporting enterprises or have made a significant and positive change towards reaching this objective.
There were three categories, which are Best use of a partnership, Best use of information technology, and Best initiative for inclusive and sustainable Trade. Fourteen national trade promotion organisations were nominated for this year’s awards, and these were coming from Austria, Brazil, Canada, Jamaica, Malaysia, the Netherlands, Nigeria, Qatar, the Republic of Korea, Saudi Arabia, Sri Lanka, the United Republic of Tanzania, Zambia and Zimbabwe.
ZimTrade won under the “Best initiative for inclusive and sustainable trade” category, where it was facing tough competition from Sri Lanka, Republic of Korea, Netherlands, and Zambia. Sri Lanka Export Development Board was the Runner Up in this category. The winners in the other two categories were Jamaica Promotions Organisation (JAMPRO), and Malaysia External Trade Development Corporation (MATRADE) who won Best use of a partnership, and Best use of information technology respectively.
For ZimTrade, the award endorses current efforts that have been put to ensure an inclusive approach to exports, and economic development.
President ED Mnangagwa has been putting emphasis in that no one should be left behind in the country’s economic development. In line with that, ZimTrade has been focusing on previously marginalised groups such as young people, women, and rural communities and a targeted approach has been adopted to inculcate an export culture among these groups. The recognition by the International Trade Centre is therefore an endorsement to current efforts by ZimTrade and the Second Republic in creating business opportunities for all Zimbabweans.
L. R. M: ZimTrade has been an active and regular participant at several international trade events. What dividends have been attained from these events?
A. M: Zimbabwe, through the National Export Strategy launched by President Mnangagwa in 2019, has a target of growing exports by at least 10 percent per year, reaching export earnings of US$7 billion by 2023 and US$14 billion by 2030. The National Export Strategy (NDS 1) also envisages an export-led economy, underpinned by exports of value-added products and services.
To attain these targets, ZimTrade has been on a major offensive to promote Zimbabwean products and services across the world, and to strengthen linkages between local exporters and international buyers. Export promotion activities have included facilitation for local companies to participate in international trade fairs taking place in Africa and beyond.
There have been inward buyer and outward seller missions where local companies have had direct contact with potential buyers.
From these activities, the country has been recording positive export growth yearly, which is commendable considering most countries have been recording negative export growth following the outbreak of COVID-19.
In terms of figures, the country’s exports between January-December 2021 stood at US$6.03 billion, which is a 37.3 percent increase compared to US$4.39 billion recorded in the same period in 2020. Between January-December 2020, exports grew by only 2.7 percent when compared to 2019. The US$6 billion-dollar mark recorded between January-December 2021 breached by local exports is the highest ever recorded figure.
Further to this, there has been a jump in exports of value-added goods, with exports of manufactured and horticulture products growing by 5.7 percent between January-December 2021. Although this falls short of the 10 percent growth as covered under the National Export Strategy, there has been a steady growth in these sectors over the past few years. This growth shows that efforts by ZimTrade are paying off considering that the previous year, exports of the same grew only by 3.3 percent between January-December 2020.
Projections are that the country will continue to rip off positive results in terms of export growth from ZimTrade activities in promoting local products and services across the world.
L. R. M: In your view, do you think a lot of Zimbabweans, business people, farmers, companies and ordinary people are aware and understand the role of ZimTrade and the assistance they can get from it?
A. M: The increasing appetite by local farmers, including rural farmers is an indication that people are becoming increasingly aware of the role of ZimTrade and the assistance they can get. We have an office in the southern region and last year we officially opened another office, in the eastern Region i.e. Mutare. These offices are meant to bring ZimTrade’s activities closer to all stakeholders, exporters, and potential exporters.
In line with devolution, we are aiming to ensure that we have offices in all provinces in the future. We are also setting up export clusters across all provinces of the country and engagements with stakeholders so far show that they are aware of the role of ZimTrade but we need to continuously increase our reach so that we are constantly in touch with potential and existing exporters.
L. R. M: Let’s talk about agro-products. What sort of products do you see as being in demand in Europe for example and how best can Zimbabwe exploit these markets?
A. M: The growing global market for horticulture, in the form of fruits, nuts and vegetables, presents opportunities for Zimbabwean sector players to grow their exports. Global consumer spending on fresh produce is envisaged to reach US$5.575 trillion by 2030. This increase in demand will be largely driven by expansion in global population, combined with growing spending on food as well as significant increase on fruit and vegetable.
Enhanced nutritional choices that favour fresh produce, in particular horticultural produce, will also contribute to the increase in demand.
Given this growing demand, the horticultural sector presents viable opportunities for the country to earn much needed foreign currency. There have been significant developments in EU, ASIA and Middle East on the growth in demand of superfoods, including organic foods, veggie snacks and produce packaged in a way that provides convenience.
Superfood is a marketing term for food assumed to be good for one’s health as a result of exceptional nutrient density. Some examples that Zimbabwean farmers can supply include berries, green tea, legumes (peas), avocadoes, nuts and seeds as well as garlic.
To exploit these markets, local producers need to ride on the good and positive reputation that Zimbabwean products continue to receive from buyers.
For example, the ten companies that participated at this year’s MacFrut Fair, which took place in Italy were told by buyers from European markets that Zimbabwe-grown blueberries are sweet and taste better when compared to competition from European and American suppliers.
These are the same sentiments shared with regards to locally produced Haas variety of avocados, highly demanded citrus fruits, top-quality sugar snap peas, and the upcoming yellow-fleshed sweet potato range.
From these positive reviews, local farmers need to ride on products that are currently performing well in the market, whilst at the same time introducing new products, in the form of natural, organic products that are unique to Zimbabwe. These include herbs, and spices, as well as natural fruits such as baobab and marula fruits.
L. R. M: You recently talked about the need for locals to exploit the DRC market because of its appetite for finished products. Why in your view are locals hesitant to venture into this market?
A.M: Zimbabwe and DRC share a rich history, which unfortunately has not culminated into increased trade relations between the two countries. Contrary to talks about local companies being hesitant to enter the market, poor linkages between local companies and buyers in the market has been the major reason behind low trade figures between our two countries.
Another reason has been limited access to information regarding the market by Zimbabwean companies. This is why ZimTrade has organised three Outward Seller Missions to the country between March last year to date, targeting Lubumbashi and Kinshasa. The interest by local companies, both established and small businesses, to take part in these Missions shows that local businesses are rearing to venture into the market.
L. R. M: How has the Zimbabwe Open for Business initiative promoted or enhanced trade between Zimbabwe and the outside world?
A. M: Following re-engagement efforts by the Government of Zimbabwe under the “Zimbabwe is Open for Business”, countries around the world have been opening up to possibilities of trade with Zimbabwe.
There has been a massive jump in exports over the past few years, compared to 2016 when the country exported goods and services worth only US$3.34 billion. The jump to US$6.03 billion in 2021, translating to 73 percent export growth when compared to 2020, is a result of the re-engagement drive being driven by the Second Republic.
At the same time, the country has improved its exports to non-traditional markets, whilst at the same time increasing exports to traditional markets. For example, the United Arab Emirates is emerging as a top trade partner for Zimbabwe, with products worth US$1.73 billion exported into the market in 2021.
This is a 93.6 percent growth from US$891 million recorded in 2020. Other markets in the region such as Mozambique, Zambia, and Botswana are also making it into top export markets for Zimbabwean products. The opening up of these markets for Zimbabwe demonstrate the positive impact of the Zimbabwe Open for Business initiative in changing perceptions about Zimbabwe as a country and its product
Online Reporter