The Sunday Mail
THE commencement of trading under the African Continental Free Trade Area presents opportunities for Zimbabwean companies to increase the visibility of their products across borders.
In fact, President Mnangagwa has, since the launch of the National Export Strategy in 2019, been encouraging local businesses to utilise opportunities in African markets.
Speaking through the foreword of the strategy document, the President is clear on the urgent need to expand access to African markets.
“Due to the small size of the internal market, it is important for Zimbabwe to utilise the market access opportunities available in the SADC, COMESA and African Continental Free Trade Areas and beyond to increase exports.”
This speaks to the level of commitment that the Government has towards improving Zimbabwe’s export to markets on the continent.
What is now important is for local companies to target markets that already have a demand for Zimbabwean products.
In terms of Zimbabwe’s offerings, there is no doubt that local products will perform well in most markets across the continent.
From engagements with buyers in the region, there has been growing interest for Zimbabwean products across Africa.
This is because when put side-by-side to competition, Zimbabwean products and services are known to have high-quality and a distinctive feature that draws consumers.
For regional markets, the ball is in the court of Zimbabwean businesses to produce competitively the right quantities that meet the requirements from buyers.
Recently, ZimTrade — the national trade development and promotion organisation —undertook an assessment visit to the Democratic Republic of Congo (DRC), where buyers from leading retail chains indicated that they are ready to import from Zimbabwe.
Zimbabwe and DRC enjoy good political relations, which form a basis for improving trade between the two countries.
The Zimbabwe is Open for Business mantra by the President Mnangagwa shows the zeal by the Government to transform these political relations into economic gains.
This drive, coupled with aspirations of Vision 2030, which targets an enabling environment that can support a meaningful contribution by Micro, Small and Medium Enterprises to national exports means the Government and related institutions are ready to support local companies in penetrating the DRC market.
What is now necessary is to strengthen linkages between Zimbabwean exporters and buyers in DRC. This should culminate in increased exports to the country.
ZimTrade, is already organising an Outward Seller Mission to Lubumbashi, which is scheduled to take place from May 18-21 this year. Here, participating companies will have an opportunity to have a direct interface with buyers looking for processed foods, building and construction, mining supplies, protective clothing as well as agriculture inputs and implements.
Already, Congolese companies have indicated that they are looking forward to business-to-business engagements, which they are hoping will materialise in long and sustainable supply relationships.
Currently, most of the companies are sourcing products from South Africa, India, Belgium, and China and are looking for alternative suppliers closer to their operations.
Business potential
DRC is one of the largest countries by land mass in Africa, with a population five times the size of Zimbabwe, estimated at over 75, 2 million by the Southern African Development Community secretariat.
This population is an indication of a huge consumer base that could provide opportunities for Zimbabwean manufacturers and farmers.
The country is predominantly rich in mineral resources and relies on imports of goods and services for its huge population.
Economic growth in DRC is mainly driven by the mining sector, where vast opportunities to supply products and services exist.
DRC is the largest producer of cobalt in the world and also one of the largest producers of copper, most of which comes from Katanga region. The mining sector in the Katanga region is composed of both large-scale mining firms and the small artisanal mining operations, presenting an opportunity for Zimbabwean exporters of mining consumables, engineering, and safety solutions.
Major mining houses in the Haut Katanga province are investing in new explorations and expansion of existing operations.
These activities are driving demand for goods and services used in mining, building and construction as well as engineering services. Further to this, the Haut Katanga province does not have manufacturing companies and relies on imports which are imported through the Kasumbalesa border post between Zambia and DRC. The province is importing mostly from China, India, and South Africa.
Most companies in the mining regions have already expressed interest to import goods and services from Zimbabwe provided they meet the required quality and can match prices offered by countries such as South Africa, China, Belgium, and India.
To capitalise on this demand, it is important that Zimbabwean companies concentrate on improving their production efficiencies so that they produce more at the least price possible.
This way, they will be able to produce competitive products and services that will land with ease in the mining region.
Regarding the export potential of the DRC, figures available on Trade Map show that DRC imported products worth US$7, 71 billion in 2019. This was dominated by machinery, mechanical appliances (US$1, 12 billion), electrical machinery and equipment (US$666 million), and pharmaceutical products (US$471 million).
Other top products imported in 2019 were articles of iron or steel, plastics and their articles; mineral fuels and mineral oils; salt, sulphur, earth and stone, plastering materials, and lime and cement.
Of the top imported products, Zimbabwean businesses can also supply DRC with meat and edible meat offal; cereals; sugars and sugar confectioneries; furniture; bedding, mattresses; fish; animal or vegetable fats and oils; and preparations of cereals, flour, starch or milk; pastrycooks’ products.
What buyers want from Zimbabwe
During the recent preparatory assessment ahead of the Outward Seller Mission scheduled for May this year, buyers in DRC — most of whom are concentrated in Lubumbashi — provided a list of requirements that Zimbabwean suppliers should consider.
The mining sector is looking for consumables as well as protective clothing and these supplies will be required from time to time.
Some of the demand driven products in mining supplies include overalls, work suits, gloves, masks and reflective clothing items; as well as mining consumables such as rollers, belts, crushers and valves among others.
DRC buyers are looking for furniture products for home and office use and have indicated that they would prefer more collapsible modular designs that can be easily assembled at the final market or by the end user at their home. For Zimbabwean producers, this will be ideal as the cost per unit in production and transportation is cheaper and this makes modern designs cheaper in export markets.
Buyers in the building and construction sector have expressed interest in roofing timber, boards and doors, iron and steel, scaffolding materials and pipes.
These have indicated that they want to meet Zimbabwean suppliers so that they work on a memorandum of understanding that will pave way for sustained business relations.
From the fast-moving consumer goods sector (FMCGs), buyers have indicated an interest in products such as cereals, peanut butter, honey, soaps, cooking oil, sugar, tea leaves, coffee, alcoholic and alcoholic beverages, detergents, sauces, and condiments.
From the local horticulture sector, Zimbabwean farmers can supply fresh fruits and frozen vegetables, garlic, ginger, and turmeric.
There is already a major drive for boosting production of garlic, ginger, and turmeric across Zimbabwe and some of the produce will be earmarked for the DRC market.
Allan Majuru is ZimTrade chief executive
