The Sunday Mail
Trade Focus
Allan Majuru
THE current investments into the furniture manufacturing sector are expected to strengthen the country’s position as a producer of top-quality products.
Coupled with the innovation by Zimbabwe’s youth-led enterprises, the local furniture manufacturing sector is upping its game and producing products of international standards.
As the country gears itself towards growing its exports, the furniture sector presents unique opportunities, riding on abundant natural resources and good reputation.
Looking at key markets, businesses in the furniture sector have an opportunity to increase their presence in regional markets, riding on Zimbabwe’s reputation as a producer of high standard, durable, and top-quality products.
This reputation has been confirmed several times by buyers who visit the country during Inward Buyer Missions organised by ZimTrade, the country’s trade development and promotion agency.
For example, during the Buyer’s Seminar held recently on the sidelines of this year’s Exporters’ Conference, buyers from the region re-affirmed that they prefer Zimbabwe’s furniture.
With increased production, local producers have a shot at regional markets because the current suppliers have already created a strong reputation, which they can leverage on.
In addition, local suppliers can also leverage on Zimbabwe’s strategic location, which offers logistical advantages.
Businesses in the furniture sector can directly supply Botswana, Mozambique, Namibia, Mozambique, Zambia, Angola, Democratic Republic of Congo (DRC), Kingdom of Eswatini (formally Swaziland), Lesotho, Malawi, and Tanzania.
What is perhaps important is to understand the import structure within the region so that local suppliers can target markets based on their current import performances.
Opportunities in South Africa
South Africa, although a leading player in the furniture sector, is also the largest importer in the region, according to Trade Map. Furniture exports in South Africa witnessed an upward trend between 2016 and 2019, from US$693 million to US$748 million. The drop to US$US$518 million in 2020 can be attributed to global supply disruptions caused by the coronavirus.
South Africa has been getting most of its furniture products from China, Germany, Thailand, Italy, Poland, Malaysia, and Spain.
Top import products include seats, lamps and lighting fittings, medical, surgical, dental or veterinary furniture, mattress supports, and prefabricated buildings.
Local companies targeting this market can ride on Zimbabwe’s natural endowments including its indigenous trees, where businesses have developed sustainable harvesting techniques.
The best foot forward therefore is hardwood, such as mukwa, teak, and pine, which are the country’s strongest offerings that can compete in South Africa.
Tapping into Angola’s high-end market
The thriving Angolan economy and a growing middle-class with disposable income, coupled with good political relations between Harare and Luanda presents opportunities for the local furniture sector.
Angola is currently southern Africa’s second largest importer of furniture, taking goods valued at around US$152 million last year.
Top import markets for Angola are Portugal, China, South Africa, Spain, Brazil, and Turkey.
In terms of distance, Zimbabwe is much closer to Angola than all these countries and this can be used as a comparative advantage for local suppliers targeting the market.
With regards to product structure, furniture imports in Angola have been largely seats, lamps and lighting fittings, and prefabricated buildings.
Considering Zimbabwe’s capacity to produce high quality products, there is scope to penetrate Angola’s market and increase furniture exports into the country.
Bountiful opportunities
in Mozambique
A market survey of Mozambique conducted by ZimTrade last year revealed that imports into the country are largely dominated by South Africa, Europe, and Asia.
According to Trade Map, South Africa is the top export country of furniture into Mozambique, followed by China, Turkey, Portugal, and Italy.
The dominant products are prefabricated buildings.
Local companies looking to export furniture to Mozambique should strive to establish local representation in Mozambique.
This could be done by working through distributors or to open distribution offices or warehouses in key markets.
Focus should also be on the middle and northern provinces where Zimbabwean products can effectively compete with South African sourced products, especially on pricing.
Leveraging on trade agreements
Local companies looking to export furniture into the region should take advantage of bilateral and multi-lateral trade agreements currently in place, such as the African Continental Free Trade Area.
Zimbabwe currently has four operational preferential bilateral trade agreements under which exporters can benefit.
These agreements were entered with Botswana, Malawi, Mozambique, and Namibia. Zimbabwe has been implementing the SADC Trade Protocol, adopted in 2001, to reduce customs duties and other barriers to trade on products.
In addition to this, Zimbabwean exporters also enjoy trading under the COMESA Free Trade Area, designed to promote regional integration through trade development.
COMESA also has a Simplified Trade Regime (STR), which helps small traders to benefit from the preferential rates enjoyed by commercial traders when importing or exporting goods within the COMESA bloc.
The African Continental Free Trade Area, whose trading started in January this year, offers further opportunities.
Continuous improvement
way to go
To compete well in export markets, local producers should continuously improve their products in line with global trends.
For example, manufacturers should move away from exporting assembled products to producing collapsible modular designs that can be easily assembled at the final market or by the end user at their home.
This way, the cost per unit in production and transportation is cheaper, making local furniture highly competitive in regional markets.
Another game changer for the wood furniture industry will be realised when sector players and visual artists work together to create and patent designs that are unique to Zimbabwe.
These designs will earn more as value is added on the actual product and the unique idea that inspired the woodworks.
Further to this, local businesses looking to produce furniture along modern trends must take advantage of existing capacity development programmes offered by ZimTrade to capacitate sector players so that they become competitive on the global market.
ZimTrade has been working with Netherlands-based PUM and Germany-based Senior Experten Services to improve production efficiencies and competitiveness of local players.
◆ Allan Majuru is the ZimTrade chief executive officer.
