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BUSINESSES in Matabeleland region could contribute significantly to growth in export earnings through diversifying their product portfolio and tapping into the lucrative regional and international markets.
ZimTrade chief executive officer, Mr Allan Majuru, said this in an interview in Bulawayo yesterday after concluding a tour of local companies during which he engaged with industry executives on how to exploit the export market.
The country’s trade development and promotion agency has conducted numerous market surveys in southern Africa whose outcomes have been shared in various business forums to assist local businesses to increase their exports. Growing exports is at the heart of the new dispensation’s economic diplomacy, as the country drives towards an upper middle-income economy by 2030.
“We came here because there are a lot of businesses with export potential but they are not exporting. Others are exporting but they are only focusing on one market,” said Mr Majuru.
“Most of our exports are concentrated in South Africa and we want them to diversify. We were having a discussion with company managers on how to create links to the export market.
“Others have a huge potential to export but need forex to procure raw materials.”
Mr Majuru said during his visits he discussed the need for businesses to adapt despite challenges. For instance, he said companies facing forex challenges could package their products in smaller quantities for quick sales outside the country, which will enable them to earn some forex while working on enhancing their capacities.
He noted that Matabeleland provinces had a thriving art and craft entrepreneurship and singled out Lupane Women’s Centre, which has successfully penetrated the international market.
“There is a lot happening in Lupane, craft products are going to as far as Europe. We want to assist them export more, even through taping digital market tools. There are a lot of buyers and the challenge is to meet the market. As soon as Covid-19 subsides we will get more stakeholders to move,” said Mr Majuru. While the country has set a goal of growing export earnings by 10 percent every year, Mr Majuru said the Covid-19 pandemic has induced a strain on business operations. He, however, said the adverse impact on the country’s export level was minimal although yearly target was heavily compromised.
Among the companies visited by Mr Majuru and his team are Fence and Frame, Lupane Women’s Centre, Keshelmer Dairy and Teecherz Furnitures. Concerning Teecherz Furnitures, he said the company could reap more proceeds by exporting to countries such as Rwanda, Zambia and Malawi. Keshelmer Dairy is already exporting into the region but has room to increase volumes.
“From the companies we visited here, there is a lot of potential to export and capacity is there but the challenge is meeting the buyers,” said Mr Majuru.
“We are helping the companies to exploit the available trade agreements with Zimbabwe so that their products could land competitively. We are organising business to business meetings with them.” By roping in businesses such as art and craft towards exporting, ZimTrade has said that its drive was to enhance realisation of Government’s devolution agenda through participation of ordinary Zimbabweans across provinces in building the national economy.
Online Reporter