Tinaye Agere
Trade Focus
Allan Majuru
Zimbabwe continues to witness remarkable growth in exports, with recent figures showing that external trade went up by 8,7 percent between January and May this year, compared to the same period last year.
Recent statistics from the Zimbabwe National Statistics Agency show that exports grew to US$2,82 billion in the review period from US$2,59 billion a year earlier.
This growth is due to President Mnangagwa’s successful campaign to position Zimbabwe as a key player in regional and global supply chains.
Concerted efforts by the Ministry of Foreign Affairs and International Trade, and ZimTrade — the national trade development and promotion agency — have been unlocking new economic opportunities from the nation’s stellar diplomatic relations.
These efforts, targeted at fostering international partnerships, have drawn renewed global attention to Zimbabwean products, with more buyers looking to do business with local exporters.
These partnerships have also opened new markets and opportunities for local products, which are now being recognised for their exceptional quality on the world stage.
This competitive advantage has helped local products stand out in international markets. Buyers from around the world have expressed preference for Zimbabwean products, citing their exceptional quality and reliability.
This preference is not only a boon for local exporters, but also a positive indicator of the country’s potential to become a major player in global trade.
In addition to the substantial growth in exports, there has been a notable reduction in the trade deficit. Figures show that imports grew by a mere 0,8 percent from US$3,56 billion in 2023 to US$3,59 billion this year in the January to May period.
This marginal increase in imports, combined with the substantial growth in exports, has led to a significant reduction in the trade deficit.
For the period under review, the trade deficit stood at US$733 million, representing a 20 percent drop from the US$972 million recorded during the same period in 2023.
This reduction is a clear indication that Zimbabwe is successfully cutting down on imports while boosting its export revenue, thereby improving the overall trade balance.
Movers
The processed foods sector saw a remarkable 34 percent increase, reaching US$48,9 million, driven by exports of sugar, fruit juices and roasted cereals.
Despite a strong performance early in the year, particularly in sugar exports, there has been a slowdown in recent months, which may be attributed to seasonal fluctuations or market conditions.
Agricultural exports surged 64 percent to US$12,4 million, with significant contributions from maize seed and liquid pumps.
This growth indicates strong demand for agricultural support products, potentially driven by expanding agricultural activities or increased investment in farming infrastructure.
Horticultural exports grew by 3,5 percent to US$18,7 million, with key products being tea, macadamia nuts, fresh flowers and citrus, among others.
This modest increase suggests the sector is stabilising, with projections pointing to continued growth as the year continues.
Pharmaceutical exports rose by 29 percent to US$2,5 million, mainly driven by medicaments for retail sales.
This increase highlights a growing market for Zimbabwean pharmaceutical products, which may be benefitting from improved production capacities or expanded international distribution channels. The livestock sector saw a significant increase of 113 percent to US$3,4 million, with substantial exports of birds’ eggs and live poultry.
This sizeable growth suggests an expanding market for these products, potentially driven by increased production or higher demand in international markets.
Leather exports also experienced a noteworthy increase of 31 percent, reaching US$1,2 million, with key products being goatskin, among others.
This growth reflects rising interest in Zimbabwean leather products, which are gaining traction in global markets due to their quality or competitive pricing.
Minerals and alloys continue to dominate, contributing 78 percent to total exports, though this is a slight decrease from 79 percent the previous year.
Exports in this sector grew by 4 percent, reaching US$2,13 billion from US$2,05 billion, reflecting stable demand and value.
Gold exports alone amounted to US$739 million, marking a significant increase from US$652 million in 2023.
The introduction of a zero-rating policy for gold deliveries to Fidelity Gold Refinery seeks to stimulate this sector further by removing the 15 percent value-added tax previously applied.
This policy is expected to encourage more gold sales through official channels, rather than informal ones.
The tobacco sector has shown impressive growth, with unmanufactured tobacco exports soaring by 34 percent to US$464 million, increasing its share of total exports to 16 percent from 13 percent in 2023.
This growth is largely driven by rising demand from China, despite a projected decline of 20 percent to 25 percent in tobacco deliveries due to the El Niño effect during the 2023/2024 agricultural season.
Shakers
Clothing, textile and footwear exports decreased from US$7,5 million to US$6,7 million, marking an 11 percent .
Major exports in this sector included men’s or boys’ suits, ensembles, jackets, blazers and trousers, valued at US$2 million, and cotton yarn amounting to US$1,2 million. Building and construction exports fell by 15 percent, from US$12,9 million in 2023 to US$11 million.
Products showing a significant decline included tubes, pipes and fittings made of plastics, which dropped from US$1,2 million to US$0,2 million.
Household electrical and furniture exports dropped by 29 percent, from US$9,6 million to US$6,7 million.
Major exported products in this sector included tables, kitchen or household articles and parts thereof made of iron or steel, and refrigerators.
Allan Majuru is the chief executive officer of ZimTrade.
Online Reporter