Andrew
Trade Focus
Allan Majuru
PAYING heed to the old adage “Do not put all your eggs in one basket” is bearing fruit in Zimbabwe’s trade, with the country recording continued export growth in emerging and non-traditional markets.
This follows repeated calls by President Mnangagwa for local industries to diversify their export products and markets.
Already, there have been concerted efforts by the Government and ZimTrade — the national trade development and promotion organisation — to build new and strong partnerships between companies in Zimbabwe and importers in African markets and beyond.
From these activities, the country’s exports have maintained a steady growth this year, thanks to previously non-existent markets that are now importing more from Zimbabwe.
According to statistics released recently by ZimStat, Zimbabwe’s exports grew by 12,8 percent between January and August this year, from US$3,75 billion to US$4,22 billion.
This growth has been anchored by Zimbabwean products finding new markets in countries such as the United Arab Emirates (UAE), China, Belgium and Italy.
Between January and August 2019, Zimbabwe’s exports to UAE amounted to around US$501 million, and they have grown to US$1,38 billion in 2022. Exports to China have also grown to around US$454 million between January and August this year, compared to the same period in 2019, when exports amounted to around US$12 million only.
Netherlands, Zimbabwe’s largest market for horticultural produce, has increased its imports from local exporters, from around US$2,24 million during the period under review in 2019, to US$30,75 million this year.
Italy has recorded an impressive growth during the period under review, from around US$1,49 million in 2019, to US$40,38 million in 2022.
Zimbabwe’s exports to Belgium have almost doubled from US$47,78 million in 2019, to US$82,26 million this year, in the same time frame. This new structure in export markets is encouraging, as over-reliance on one market is not sustainable.
At the same time, the country has been growing exports of value-added products.
Exports of manufactured or valued-added products increased by 17,6 percent from US$202,3 million recorded during the reviewed period last year, to US$237,8 million this year.
Previously, the country was overdependent on South Africa, which accounted for around 79 percent of Zimbabwe’s exports in 2016. This is despite that in 1992, 63 percent of Zimbabwe’s total exports were spread across 10 markets.
As exports are growing, Zimbabwe’s imports have also been increasing, mainly driven by the need for increased raw materials, as well as machinery and equipment.
Machinery imports constitute 20 percent of the total import bill, while raw materials imports increased by 34 percent.
Figures show that imports increased by 15,9 percent to US$5,49 billion for the January to August period this year, compared to US$4,74 billion over the same time frame in 2021.
Consequently, the trade deficit increased to US$1,2 billion this year, from US$994 million recorded during the same period in 2021.
Big movers
Exports of processed foods continue to grow this year, thanks to the increasing popularity of Zimbabwean products in regional markets.
During the period under review, processed food exports increased by 32 percent from US$43 million in 2021 to US$57 million in 2022.
Countries such as the Democratic Republic of Congo, Mozambique, Botswana, Zambia and Malawi have been identified as having potential following participation of the local industry in trade promotion events in these markets. For example, leading buyers at the just-ended Botswana Global Expo noted that the market prefers Zimbabwean products due to their high quality.
Apart from traditional exports such as sugar, milk and milk products, cordials and biscuits are also growing in terms of exports.
Manufactured tobacco exports increased from US$35,6 million between January and August 2021 to US$41,7 million during same period this year, translating to a 17 percent growth. The sector is picking up, given the interest from regional markets such as Zambia and Mozambique for Zimbabwe’s manufactured tobacco.
With targeted programmes to penetrate international markets such as Dubai, indications are that exports from the sector will continue to grow. In addition, exports of agricultural inputs and implements have increased by 21 percent, from US$12,6 million in 2021 to US$15,1 million this year.
Major export products from the sector were seeds and spores for sowing, insecticides and rodenticides. Exports in this sector are expected to increase as the 2022/2023 farming season kicks in across southern Africa.
Further to this, exports from the construction sector stood at US$28 million during the period under review, marginally up from US$27 million recorded in 2021. Ceramic tiles exports increased from US$4 million between January and August 2021 to US$10,3 million this year.
Ceramic tiles being exported by a Mashonaland West-based company have sustained the sector, as they are opening new markets in Zambia and South Africa.
Hides and skin exports increased by 43 percent from US$7,7 million during the period under review last year, to US$11 million this year. Major export products in the sector were raw hides and skins, fresh or preserved (not tanned), amounting to US$10,9 million.
Processed leather exports recorded a 19 percent growth, from US$1,2 million to US$1,4 million. In addition, exports from the packaging and stationery sector grew from US$6,3 million between January and August last year, to US$11,2 million in 2022, translating to a 77 percent increase.
The pharmaceuticals sector saw a 25,7 percent boost this year, recording US$2,06 million compared to US$1,64 million during the same period last year.
There are indications exports from the sector will continue to grow, driven by increasing demand for Zimbabwean products in regional markets.
Although exports of manufactured products have been growing this year, the country’s total exports are still dominated by raw commodities, which translate to export of value, jobs and infrastructure.
Figures show that the mining sector’s exports increased from US$3,12 billion between January and August last year, to US$3,47 billion this year. Major contributors in the sector were gold, nickel ores, platinum and diamonds.
Unmanufactured tobacco exports also increased from US$348 million last year to US$435 million during the period under review this year.
Clothing and textile sector exports marginally decreased from US$15 million to US$14 million. Major exports in the sector were men’s or boys’ suits, ensembles, jackets, blazers and trousers. However, there has been a notable increase in export of footwear, which is expected to boost output from the sector.
Online Reporter