Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
RIDING on the economic diplomacy drive that has seen the steady opening up of lucrative European markets and the resultant rise in export receipts, the country’s premier trade development and promotion organisation, ZimTrade, is seeking to take advantage of the momentum and penetrate more markets as well as surpass the US$7 billion set target this year.
The economic diplomacy thrust, which is critical in attracting fresh investments and transforming the economy, dovetails with the Second Republic’s engagement and re-engagement policy.
This has seen the Government and the private sector scaling up trade and investment campaigns across the region and beyond.
European Union (EU) countries are on a drive to develop new business partnerships in Africa to increase total trade and investment between Africa and the EU.
ZimTrade says it will leverage this drive on the country’s economic diplomacy mantra to diversify and grow exports in the EU by linking producers with importers of different products.
This year, the promotion body has lined up packed 20 global outward seller and inward seller exhibition missions including to non-traditional markets.
The essence of the missions is to create more exposure for Zimbabwean products and stimulate sustained interest from the region and abroad.
According to ZimTrade’s roster, missions to Saudi Arabia to scan the market and a pre-mission visit to Ghana will be undertaken in February before an outward trade mission is embarked on in March.
Malaysia Africa Forum, Zimbabwe-China Business Forum, Zimbabwe-Dubai Business Forum, and outward missions to Mozambique, the Democratic Republic of the Congo, Namibia, Botswana Global expo and IAFT Ivory Coast are in the pipeline.
Already, ZimTrade has taken part in the Fruit Logistica exhibition in Berlin, Germany where a lot of interest was shown for local fresh produce.
Fruit Logistica is the world’s leading international trade fair for the fruit and vegetable industry.
In its January newsletter, the trade promotion body said the Government’s re-engagement agenda, coupled with trade initiatives driven by related institutions and stakeholders, has created a promising outlook for Zimbabwean exports in 2023.
“When President ED Mnangagwa launched the Zimbabwe National Trade Policy and the National Strategy (2019-2023), it was premised on the need to grow exports through market and product diversification.
“This has been paying off as statistics show that exports have seen a 9,2 percent increase from US$5,4 billion in Januar to November 2021 to US$5,9 billion in the same period in 2022.
“This boost in exports can be attributed to the various efforts made by the Government, along with related agencies like ZimTrade, which are facilitating export development and export promotional activities such as outward missions and trade-fair participation.”
The activities have raised the profile of Zimbabwean products and generated interest from markets around the world, added Zimtrade.
“With the current positive trend in export growth, businesses across Zimbabwe can take advantage and expand their products into traditional and non-traditional markets.”
According to the TradeMap, the trade of horticultural produce grew from US$251 billion in 2017 to US$298 billion in 2021.
In 2021, Europe accounted for US$123 billion, Asia US$88 billion and the United States of America US$44 billion. As such, the European market for fresh produce is enormous and provides a stable consumption base, ZimTrade noted.
“With Zimbabwe’s climatic advantage, this presents a unique opportunity for local businesses to target Europe as the leading destination for horticultural produce. International buyers are actively seeking reliable suppliers from around the globe to ensure an uninterrupted supply of horticultural products in the market.
“Currently, EU countries are on a drive to develop new business partnerships in Africa to increase total trade and investment between Africa and the EU. ZimTrade will leverage this drive on the country’s economic diplomacy mantra to diversify and grow exports in the EU by linking producers with importers of different products.”
With the current positive trend in export growth, Zimtrade said local businesses can take advantage and expand their products into traditional and non-traditional markets.
“Already, the need to diversify export markets has seen an acceleration of trade promotion activities to emerging markets, such as a series of Business Forums held in 2022 between Zimbabwean companies and potential partners from countries such as United Arab Emirates (UAE), Rwanda, Malawi, and the Democratic Republic of Congo.
“Results from these activities show that Zimbabwean companies are benefiting through export growth. For example, exports to UAE increased from US$1,47 billion between January to November 2021 to US$1,96 billion during the same period in 2022.
“With the continued demand for organic and fresh produce in countries like Europe and the Middle East, there is a great potential for Zimbabwe to expand their exports, with a high likelihood of surpassing the US$7 billion mark in 2023.”
Continued interest in the market for Zimbabwean goods, has encouraged further market surveys in the Middle-East and this year, ZimTrade will be conducting a market scan in Saudi Arabia, to explore more export opportunities for local products in the Middle- East.
ZimTrade is seeking to grow exports from US$7 billion this year to US$14 billion by 2030 as espoused in the National Development Strategy 1 (NDS 1).
To further grow exports, Zimbabwe targets one of the world’s largest free trade areas, African Continental Free Trade Area (AfCFTA) that provides a great opportunity for businesses to capitalise on the continent’s growing sectors.
This year, more initiatives will be channelled towards increasing exports in regions such as eastern and western Africa.
“For example, Nigeria is one of the most populous countries in Africa offering massive opportunities for local companies to increase their products in the market. As such, ZimTrade will be conducting a market survey to identify export opportunities and to better understand the market.
“Outward missions have played a significant role in accelerating trade and plans are in place to integrate local companies with destination buyers and foster business relationships that lead to increased exports. After the market survey done in Ghana last year, ZimTrade will be holding an outward mission to the market, taking businesses to the market for assessment and with the hope of creating trade integrations.”
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