Zimbabwe tackles trade deficit

Sikhulekelani Moyo

Business Reporter

Industry and Commerce Minister Mangaliso Ndlovu has said the Government is exploring measures to address the negative trade balance, which has been widening due to weak manufacturing sector performance.

He said this in a speech read on his behalf by the Ministry’s provincial director for Bulawayo, Mrs Mary Chingonzoh, in Lupane.

Minister Ndlovu said the Zimbabwe Industrial Reconstruction Growth Plan (ZIRGP) emphasises the importance of supporting local production by developing mechanisms to promote local content.

He said the plan seeks to address issues such as competitiveness, cost of doing business, and availability and affordability of key enablers.

“There shall be a strong focus on the manufacturing sector, particularly our ability to build a resilient and growing sector,” said Minister Ndhlovu.

“We have to deliberately and intentionally deal with the stubborn negative trade balance. In my view, the negative trade balance is the failure of the manufacturing sector.”

The Zimbabwe National Statistics Agency (ZimStat) said Zimbabwe’s trade deficit for January 2025 was US$96,8 million, a 51 percent decrease from the US$197,3 million recorded in December 2024.

While the trade gap declined, it remains too big and unsustainable given that the country continues to lose precious foreign currency through importing goods that can be produced locally.