The Sunday Mail
Allan Majuru
Trade Focus
The manufacturing sector in Bulawayo has been retooling and investing in contemporary technologies designed to improve production efficiencies, and the resultant products have been of top quality.
Across all sectors, the products can compete in export markets.
Some companies are already visible in regional markets like the Democratic Republic of Congo (DRC).
Output has been increasing in the food, leather and agricultural mechanisation sectors.
As the country targets US$7 billion in exports by year-end and US$14 billion by 2030 — in line with the National Export Strategy launched by President Mnangagwa in Bulawayo in 2019 — the province has a critical role to play.
Going forward, what is important is identifying low-hanging fruits to strategically position industries in regional and international markets.
To help the process, ZimTrade — the national trade development and promotion organisation — has already conducted research to establish the export potential in Bulawayo, as well as other provinces across the country.
Products with export potential
It is important to understand the current export structure to help identify gaps.
Most exporting businesses in Bulawayo are into manufacturing and cover areas such as clothing, construction material, household goods, leather products and agricultural equipment, as well as food and beverages.
Leather and leather products
Bulawayo has a vibrant leather industry, with some producers supplying shoes and bags to regional markets like Namibia.
Buyers and experts have often commended the quality of leather coming from the province.
This highlights the potential of the goods to perform competitively in international markets.
Exotic products from crocodile, giraffe and hippopotamus skins are a major hit in international markets.
Aided by support from ZimTrade, businesses in Bulawayo established a leather cluster under the name Zimbabwe Leather Collective, which has been helping promote products from the sector in international markets.
With support, the operations of Zimbabwe Leather Collective can be enhanced through, for example, skills transfer and sharing of export promotion costs.
Producers of leather goods must also keep up with international trends by ensuring that local designs are integrated into and complement global design trends.
Metal and metal products
The metal products industry in Bulawayo has potential to be a major contributor to exports.
The province has traditionally supported exportation of iron and steel products from Zimbabwe into markets such as South Africa and Botswana.
Products with potential from the sector include steel, mesh wire and pipes, as well as value-added merchandise such as ploughs, ridgers, hoes, window frames and door frames.
Apart from growing exports, the province is a key player in import substitution of iron and steel products.
Increased production will result in reduced imports of iron and steel products.
Zimbabwe has been importing iron and steel worth over US$300 million per year.
According to Trade Map, Zimbabwe imported iron and steel worth around US$128 million in 2020, with the bulk coming from South Africa (US$108,2 million), China (US$9,3 million), Zambia (US$5 million) and Seychelles (US$2,2 million).
During the same period, Zimbabwe has been importing iron or steel articles worth around US$178 million from across the world.Of this figure, around US$110 million worth of products came from South Africa, around US$50 million from China and US$5 million from Zambia.
So, as companies in Bulawayo boost exports, there is scope for the country to meet its own iron and steel requirements.
Manufacturing sector
Other manufacturing sub-sectors with huge export potential in the province include processed foods and beverages, clothing and textiles, and household goods.
Leveraging on agricultural activities surrounding Bulawayo, food processers in the province can draw raw materials from farms and process them into high-value products.
There are companies that have established markets in countries such as the DRC and Zambia, and are looking to expand into Mozambique, Malawi and Tanzania.
Products such as cooking oil, biscuits, sweets, flour and cordials top the export potential list.
To unlock more export value from the sector, businesses need to consider international markets such as the United Arab Emirates and Europe, where existing trade relations will make it easy to land products in these areas.
Further, proximity to Botswana offers additional opportunities for small businesses that often find it difficult to supply international markets due to logistical constraints.
Also, the clothing sub-sector offers export opportunities for products such as work suits, tracksuits, shirts, trousers, ladies wear, corporate wear and T-shirts.
It is, however, critical to develop the capacity of small players, who account for the large number of clothing manufacturers in the province, so that they match the quality of products already in export markets, as well as produce contemporary designs.
ZimTrade has been working with clothing experts from the Germany-based SES to capacitate small businesses in Bulawayo.
And, with support, the province should be able to grow clothing and textile exports.
In addition, Bulawayo has the potential to boost its exportation of household goods such as furniture, kitchen appliances, enamel ware and aluminium ware.
For furniture, producers must provide modular designs that can be assembled in the targeted market by the distributor or end user, thus saving transportation costs.
*Allan Majuru is ZimTrade’s chief executive officer
