Zim’s exports continued soaring in first quarter

Trade Focus

Allan Majuru

ZIMBABWE has witnessed remarkable growth in exports during the first three months of the year, signifying a promising trend in the country’s trade.

This impressive growth can be attributed to a series of strategic interventions made over the past five years, under the Second Republic, to boost the visibility and market reach of locally produced goods and services on the global stage.

The engagement and re-engagement foreign policy drive has created and strengthened relations with countries across the world, paving the way for local products into regional and international markets.

The recent decision to hold the next Nordic-Africa Foreign Ministers Meeting in Zimbabwe is the latest of many examples highlighting the success of the Government’s foreign policy thrust.

Coupled with the economic diplomacy agenda being driven by the Ministry of Foreign Affairs and International Trade, the proactive measures have not only revitalised confidence in local products and services, but also opened the way for a sustainable growth trajectory.

Of late, demand for Zimbabwean products has been rising, as buyers continue to confirm that local goods are of relatively better quality than what the competition is offering.

Data from the Zimbabwe National Statistics Agency (ZimStat) shows that the country’s exports stood at US$1,72 billion between January and March this year, which is a 25 percent increase compared to US$1,38 billion in the same period in 2023.

Zimbabwe has also made significant progress in boosting exports of manufactured products, as overreliance on primary commodities exposes the nation to international price shocks.

Between January and March this year, exports of manufactured or valued-added products grew by 55 percent to US$119,2 million from US$76,7 million recorded last year.

Major imported products were machinery and equipment (US$384 million), accounting for 18 percent of total imports; raw materials (US$280 million), constituting 13 percent; and fuels and electricity (US$247 million), which made up 12 percent.

In addition to export growth, the country has made strides in curtailing its trade deficit, a longstanding hurdle that previously impeded growth, as the nation was purchasing more than it was selling.

Figures show that although imports also increased by 7 percent to US$2,14 billion, up from US$2 billion in 2023, the trade deficit for the period under review stood at US$420 million, which is a 32 percent decline from a deficit of US$623 million recorded during the same period in 2023.

Exports to South Africa, which is Zimbabwe’s largest market, declined by 13 percent to US$532 million from US$610 million a year ago.

At the same time, shipments to the United Arab Emirates increased by 21 percent to US$463 million, up from US$382 million. Exports to China rose by an impressive 132 percent to US$320 million in 2024 from US$137 million last year.

The country has also seen growth in exports to Mozambique, Indonesia, Hong Kong, Zambia and Vietnam.

During the period under review, there were also notable exports to non-traditional markets such as India (US$12 million), Armenia (US$4,8 million), Paraguay (US$3,8 million), Yemen (US$2,1 million) and Egypt (US$1,8 million).

Movers

The export of hides and skins recorded the biggest growth during the period under review, rising by 365 percent from US$1,9 million in 2023 to US$9,1 million in 2024.

Leather exports increased by 87 percent from US$513 000 last year to US$965 000 in 2024.

Processed food exports rose by 188 percent from US$13,3 million to US$38,4 million in 2024.

Major exported products in the sub-sector include sugar, fruit juices, beer made from malt and prepared foods of swollen or roasted cereals.

Other goods with potential in the sector include pastry products, jams, fruit jellies, marmalades, sauces and sauce preparations.

In addition, despite the current El Niño-induced drought across the region, shipment of agricultural inputs and implements increased by 41 percent from US$4,3 million in 2023 to US$6,1 million in 2024.

The continued demand for Zimbabwe-produced agricultural inputs and implements shows that local products are preferred in the region.

Major exported products in the sub-sector include sorghum seed, ploughs, maize seed and appliances for spraying.

Livestock and livestock products exports also grew by 111 percent from US$802 000 last year to US$1,69 million this year.

Major exported products in the sector were birds’ eggs, live poultry and live fish. The sector used to be anchored by exports of fish meat, but stiff competition is coming from supplying markets such as China.

Pharmaceutical exports have been making a rebound, growing by 60 percent from US$1,1 million in 2023 to US$1,76 million in 2024.

Major exported products in 2024 were medicaments of mixed or unmixed products for retail, which solely contributed to exports in this sector in 2024.

Minerals and alloys exports, which are the largest contributor to total exports, increased by 3,4 percent from US$1,12 billion in 2023 to US$1,16 billion between January and March this year.

Major exported products in the sector were gold, moving from US$345 million to US$385 million; nickel mattes, from US$230 million to US$214 million; and diamonds (not mounted or set), from US$41 million to US$95 million.

Unmanufactured tobacco exports increased from US$161 million in 2023 to US$413 million in 2024, translating to a 157 percent increase.

The 2023/2024 tobacco selling season commenced on March 13, 2024.

* Allan Majuru is the chief executive officer of ZimTrade.