The Sunday Mail
WHILE the success of Zimbabwe’s export growth strategy is dependent on several factors, two specific strategies stand out.
Trade Focus
Allan Majuru
First, the country needs to diversify its export products, with special focus on value-added goods, including horticultural produce.
Presently, Zimbabwe’s export products are predominantly primary commodities, which is not sustainable in the long term.
Secondly, the country must diversify its export markets.
Over-reliance on a single market exposes local businesses to exogenous shocks.
In response to these key issues, the Second Republic has made strides in unlocking new markets requiring value-added products and horticultural produce globally.
The positive response to local products in regional and international markets comes on the back of Government’s economic diplomacy drive, which is premised on unlocking economic gains from favourable political relations.
One market that has presented export opportunities for diversified Zimbabwean products is Qatar.
It is an affluent market with a growing population that offers opportunities across many sectors.
To identify specific opportunities in Qatar, ZimTrade — the national trade development and promotion organisation — will this year conduct a comprehensive survey to explore market requirements and the route-to-market, as well as leading buyers and distributors in the Middle Eastern country.
However, a desk study on Qatar has already revealed lucrative opportunities for Zimbabwean exports.
About Qatar
Qatar is a small independent sovereign state in the Middle East.
It is one of the six members of the Gulf Cooperation Council (GCC), together with Saudi Arabia, Kuwait, the United Arab Emirates (UAE), Bahrain and Oman.
Qatar is classified as a high-income country. Its population has a high spending power.
The country’s economy is largely dependent on oil and gas, creating room for imports of a variety of products across many sectors.
Qatar has a desert climate, with year-round sunshine, hot humid summers, mild winters and infrequent rainfall, thereby creating massive demand for horticultural produce.
It is a relatively small country, but one of the richest in the world.
Over the last two decades, it has transformed itself from being an obscure Gulf State to a prominent player on the global stage.
Through the exploitation of significant oil and gas reserves, it has embarked on one of the largest and most ambitious infrastructure development programmes in the world.
An estimated US$180 billion will be spent to deliver the 2030 Qatar National Vision.
Reforms are underway to diversify the economy, away from dependence on oil and gas, by promoting the role of the private sector and small businesses in the economy.
Import structure and key opportunities
According to Trade Map, Qatar imported products valued at US$31 billion last year.
Its major suppliers were China, the United States, India, Germany, the United Kingdom, Italy, Türkiye, Switzerland and Japan.
From a list of Qatar’s leading import products, Zimbabwean exporters could supply an array of products, including household and office furniture; horticultural produce; meat; essential oils; pharmaceuticals; and services.
For example, according to figures available on Trade Map, Qatar’s imports of furniture such as bedding, mattresses, mattress supports, cushions, luminaires and lighting fittings have grown from around US$781 million in 2017 to US$1,1 billion in 2021.
Considering the competition in this sector, Zimbabwean exporters can ride on unique products, particularly those made using indigenous timber.
Zimbabwe boasts abundant timber resources, including high-quality hardwoods such as teak and mukwa, which are used to make in-demand luxury furniture products that fetch high prices in Qatar.
Therefore, local furniture producers need to focus on unique and modern designs that can compete against established suppliers.
There has also been a sharp growth in demand for works of art and crafts in Qatar.
Trade Map figures show that imports of works of art, collectors’ pieces and antiques have significantly grown from just over US$63 million in 2018 to US$726 million in 2022.
The major import products in the arts and crafts sector were paintings, for example, oil paintings and those done in watercolours; and drawings executed entirely by hand, whose import figure grew from around US$20,4 million in 2018 to US$649 million last year.
The value of imports of original sculptures and statuary in any material has also grown from around US$34 million in 2018 to US$43,3 million in 2022.
Zimbabwe is already renowned for its stone sculptures and other products made from wood, plants and recycled materials, creating a unique position for local exporters to tap into the market.
Currently, top-exporting countries of works of art and crafts into Qatar include Switzerland, Morocco, the US, South Africa, France, the UK, Germany and China.
Interestingly, some of these countries are leading markets for Zimbabwean works of art and crafts.
It would not be a surprise to see some of our products being re-exported to Qatar.
Unlocking direct market access will present more revenue for local artists.
In addition, Qatar has a large meat and meat products market, with demand for fowls, sheep, goats and bovine on the rise.
According to Trade Map, imports of meat and edible offals of birds such as ducks, geese, turkeys and guinea fowls grew from around US$194 million in 2018 to US$249 million last year.
Last year, total imports of meat bovine animals in the market were around US$125 million, while Qataris spent US$105 million on sheep or goats.
There are also indications of high demand for horticultural produce such as pineapples, avocados, guavas, mangoes, dates, figs, citrus fruits, berries, bananas, apples, pears, quince, watermelons and pawpaws.
There is also a viable market for edible vegetables and certain roots and tubers such as onions, shallots, garlic, leeks and other alliaceous vegetables (tomatoes, dried legumes and potatoes).
Furthermore, essential oils and resinoids used in perfumery, cosmetic or toiletry preparations are products that are worth pursuing for local small enterprises and can be easily transported by air to Qatar.
For local businesses, particularly smallholder farmers, who dominate production of essential oils, increasing production of plant sources such as flowers and fruits, herbs, resins and wood oils will make it easy to produce the required quantities to secure the lucrative market.
In Zimbabwe, companies are increasingly beneficiating wild plants to produce high-end products.
There is also potential for establishing oil-extraction businesses that target Qatar as a market for locally produced essential oils.
Apart from products, there is considerable capital spending by the Qatari government on services like education, healthcare, infrastructure and transportation.
Allan Majuru is the ZimTrade CEO
