The Sunday Mail
Trade Focus
Allan Majuru
THE adage “when the going gets tough, the tough gets going” might as well summarise the year 2020 for most businesses in Zimbabwe.
While the year has been challenging due to the impact of the coronavirus pandemic, what has been encouraging is the resilience shown by Zimbabwean companies, particularly in remaining visible in export markets.
The year started on a positive note, with Zimbabwean companies setting up themselves to enter more regional and international markets.
Also, there was palpable zeal and excitement from young people who were eager to participate in export markets.
Research conducted earlier this year in regional markets revealed massive potential for Zimbabwean companies.
Although Covid-19 would bring shocks to export markets across the world, ZimTrade — the national trade development and promotion organisation — was able to put in place an array of interventions to ensure local exporters were able to cope with the pandemic.
Implications of Covid-19
on exports
The ongoing pandemic has had some negative implications on national exports, but the overall trade performance has been encouraging.
The first few months into the outbreak were the worst to local businesses as travel restrictions, coupled with lockdowns that were enforced in most countries around the world, led to a decline in exports.
Demand dropped for non-essential products such as flowers in Europe, which is the largest importer of Zimbabwe’s florae.
This was, however, not unique to Zimbabwe alone as most countries across the world witnessed a huge decline in exports.
To stay afloat, some local exporters diversified their export products to ensure that they supplied products in demand while others focused more on regional markets.
These strategies paid off as Zimbabwe recorded an increase in exports between January and September this year, compared to the same period last year.
According to figures for January-September 2020 released by ZimStats, the country’s exports stood at US$2,962 billion, which was 5 percent higher than US$2,821 billion recorded for the same period in 2019.
Imports went down by 4,5 percent to US$3,405 billion from US$3,566 billion in 2019. Resultantly the trade deficit declined by 40 percent from US$745 million to US$442 million in 2020.
The positive growth of exports is expected to continue in 2021 as more markets are warming up to produce from Zimbabwe.
There are deliberate efforts by local farmers to increase the output of products in demand, such as citrus fruits, peas, avocados, passion fruit, peas, and macadamia nuts.
With increased harvests and improved linkages with markets, expectations are that exports of horticultural produces, value-added products and services will grow in the coming year.
Improving the ease-of-doing export business will make it easier for local companies to export in 2021 and bring in the much-needed foreign currency.
In addition, the African Continental Free Trade Area, whose trading will start in January 2021 will further provide an easy-to-reach market for Zimbabwean companies.
To tap into this huge market of more than 1,2 billion consumers and a combined Gross Domestic Product of more than US$3,4 trillion, Zimbabwean companies must actively participate in the continent-wide agreement and ride on areas where the country enjoys competitive and comparative advantages.
Online platforms improve linkages with international buyers
Earlier this year, ZimTrade facilitated the participation of local horticulture exporters at this year’s edition of Fruit Logistica, which took place in Berlin, Germany in February.
This was one of many planned exhibitions that were expected to improve the interface between local producers and international buyers.
Positive leads were realised at the exhibition as some local farmers are now exporting to new markets, with further inquiries for produces such as citrus fruits and butternuts.
As Covid-19 spread in all countries during the year, all planned trade fairs, exhibitions and other export promotion events across the world were either cancelled or postponed.
Although this was a setback, it brought new opportunities for improving online engagement.
Some trade fair organisers adopted virtual interactive tools that promote business-to-business (B2B) engagements.
For example, organisers of the Intra-African Trade Fair established an all-year-round digital networking platform to connect buyers and sellers.
ZimTrade organised a series of online B2B meetings between local companies and international buyers, with full-fledged online seminars held with Botswana and Democratic Republic of Congo.
The inaugural dissemination seminar was held this year to unpack findings of a market survey conducted in Mozambique in March.
The online dissemination seminar was attended by buyers in Mozambique who were drawn from sectors such as: fast-moving consumer goods; building and construction; agricultural inputs and implements; as well as engineering sectors.
The buyers, who declared their expectations when sourcing from across borders, indicated willingness to source from Zimbabwe if local manufacturers are able to meet demand.
To further enhance linkages between local exporters and international buyers during this Covid-19 era, ZimTrade launched Shop@Zim, an online trading platform that is expected to improve the visibility of locally-produced products and services.
Shop@Zim is premised on the need to create a singular window for marketing and selling Zimbabwean products virtually and this will be premised on linkages for bulk orders.
Further to this platform, the Zimbabwe Packaging Portal was also developed to create synergies between manufacturers of packaging materials and consumers.
The portal is expected to provide a competitive edge for the local manufacturers as they will receive recognition from the international market and also an opportunity for supply to new consumers, either in the region or beyond.
Going forward, online engagements will be promoted in the coming year to provide an alternative access to markets where physical meetings will be difficult to take place.
Local companies will also need to remain relevant in the “new” normal by establishing a strong online presence as well as take advantage of the already launched Shop@Zim platform and Zimbabwe Packaging Portal.
Women-led and youth-led businesses venture into exports
There has been a growing interest from women-led and youth-led businesses to increase their participation in export markets.
To ride on this momentum, specific programmes were put in place to develop capacities of these previously marginalised groups.
ZimTrade launched a youth export incubation programme dubbed “Eagle’s Nest”, which is anchored on the recognition by the National Youth Policy that the participation of young people in economic activities “provides sustenance and sustainable livelihood to the majority of them”.
Eagle’s Nest programme will nurture youth-led SME’s into export ready companies through various interventions that are aimed at improving the competitiveness of youth owned enterprises and developing linkages to local and international markets.
The youth incubation programme will ensure that young people are capacitated and able to create sustainable export enterprises that guarantee the future trade success for Zimbabwe.
Further to this, the 2020 Food for Export Masterclass to promote women in business was launched by ZimTrade, together with the Netherlands Embassy in Harare, Zimbabwe Agricultural Development Trust, Hivos and PUM Netherlands.
The programme is designed to build the capacity of 20 female entrepreneurs in various aspects of horticulture, dairy production, food processing, and food export business. The programme is targeting to transform them into successful exporters using the latest production methods and business practices.
The current training programmes conducted with these women and young businesses owners reveal potential for increased exports from the targeted groups.
As 2021 approaches, expectations are that some of these businesses should start exporting in the coming year, which will contribute towards the realisation of the target of 10 percent growth of exports of value-added goods and 15 percent growth of exports of services set out in the National Export Strategy.
There are plans to improve market linkages for rural women who are involved in arts and crafts by working with Zimbabwe’s embassies in identifying opportunities for them.
The European Union, United Kingdom, Japan, China and Middle-East are some of the potential markets for arts and crafts products produced by rural women in Zimbabwe.
To further harness the potential from these women-led and youth-led businesses, the contribution of financing partners will go a long way in improving their competitiveness, particularly in areas such as retooling and mechanisation.
Allan Majuru is ZimTrade chief executive.
