Zimtrade sees potential in service exports

Business Reporter
EXPORT promotion agency, Zimtrade, says Zimbabwe has a huge potential to realise more earnings from the export of services.

The organisation has since embarked on an initiative to engage the services sector to export. The services sector consists of accounting, transport and logistics, legal services, environment, education, consultancy amongst others.

Speaking during a services stakeholder engagement seminar in Bulawayo, Zimtrade regional manager Mr Similo Nkala said more emphasis has been on the export of manufactured goods while sidelining the services sector.

The manufacturing sector has benefitted from initiatives such as the Marketing and Branding for International Competitiveness (MBIC). Mr Nkala said there was a need for the country to explore its potential in the services sector as well.

“There is a lot of potential to increase our market share in that export of services sector. A number of countries realised the potential of export of services, which is growing at a faster rate than the export of manufactured goods and horticulture produce,” said Mr Nkala.

“As Zimtrade, there is need for us to take advantage of our human capital and high literacy rate so that we maximise and explore export opportunities in the services sector.”

Global statistics indicate that the export services industry was worth $4,8 trillion in 2016, with the United States of America cross border exports $733,6 billion. According to the Reserve Bank of Zimbabwe (RBZ), services contributed only four percent to total export earnings. Comparatively, neighbouring South Africa services exported commercial services worth R15,7 billion. Mr Nkala said they will soon be holding specific seminars to capacitate service providers who intend venture into foreign markets.

“After this stakeholder engagement seminar, we will draw an action plan detailing what can be done to increase the export of services. Some organisations will definitely need some training on export markets so we will come up with a specific programme for the services sector,” he said, adding that they will also rope in experts to assist in these trainings.

Stakeholders participating at the seminar welcomed the idea of training companies to export services and challenged the export promotion agency to swiftly implement the programme.