The Sunday Mail
THE appetite for Zimbabwean products continues to grow in regional markets.
Trade Focus
Allan Majuru
This year alone, several activities undertaken by ZimTrade — the national trade development and promotion agency — to connect local businesses with leading distributors in regional markets have led to a sharp increase in demand for local goods across Southern Africa.
This growth follows spirited efforts by President Mnangagwa’s Government to derive dividends from Zimbabwe’s good relations with regional countries.
The economic diplomacy agenda being implemented through the Ministry of Foreign Affairs and International Trade is designed to grow Zimbabwe’s footprint in African markets.
This is paying off.
For example, the Zimbabwe-DRC Business Forum, held on the sidelines of this year’s Agricultural Show in August, revealed several opportunities for local companies to further enhance their trade with the Democratic Republic of Congo (DRC).
Traditionally, most companies have preferred to trade with the DRC through Lubumbashi due to its proximity.
However, several buyers who participated at the forum indicated further opportunities Zimbabwean companies can exploit if they explore other provinces in the DRC.
The participation of buyers from Lualaba and Haut-Lomami at the forum was a follow-up to the Outward Seller Mission organised by ZimTrade in these provinces earlier this year.
These provinces, situated in the southern region of the DRC, present untapped opportunities for local enterprises.
The province of Lualaba is essentially a mining area, concentrated mainly in Kolwezi and Kajasi cities.
Currently, the province is working on diversifying its economic sectors to include agriculture, energy and tourism.
Overall, for Zimbabwean companies, opportunities in the two provinces primarily lie in the fields of agriculture, mining and infrastructure development.
Agricultural opportunities
Agricultural production in Lualaba and Haut-Lomami provinces remains low, despite these regions having fertile soils and suitable climatic conditions.
Low agricultural productivity is attributed to the high cost of inputs, poor condition of service roads, the exodus of young people from rural areas to mining centres and lack of expertise.
However, there are efforts by the two provinces to grow agricultural production, with focus on commercial farming.
The DRC is endowed with considerable natural resources; vast hydropower potential; and an annual rainfall of 1 000mm, which is ideal for cultivation.
According to the DRC National Investment Promotion Agency, the country has over 120 million hectares of land suitable for farming or livestock breeding, but only an estimated 10 percent of this figure is currently being used — 3 percent for agriculture and 7 percent for livestock.
This gap in agricultural production presents Zimbabwe with export opportunities for agricultural inputs and implements, as well as agriculture-related services.
Whilst plans are in place to grow agricultural production in the two provinces, it will take time for them to be self-sufficient.
There is a gap to supply fresh vegetables and fruits, as well as other value-added agro-produce such as tea and coffee to the two provinces.
There are also opportunities to supply agricultural inputs such as seed maize, fertilisers and chemicals, including implements such as ploughs and tractors.
Also, there is growing demand for livestock products (beef, poultry and dairy).
Mining and natural resources opportunities
Lualaba province is rich in mineral resources, particularly copper and cobalt.
The region is home to some of the largest copper mines in the world.
Zimbabwe, with its experience in mining, can explore partnerships and export opportunities for products required in the extraction and processing of these minerals.
This collaboration can also cover areas of technology transfer and skills development from Zimbabwe to the DRC, and vice versa.
Local manufacturers have opportunities to supply personal protective equipment such as gloves, safety glasses, safety shoes, earplugs or muffs, hard hats, respirators, overalls, work suits and vests.
There are also huge opportunities for supplying pumps, pipes, valves, concentrates, chemicals and oils.
Infrastructure development opportunities
Both Lualaba and Haut-Lomami provinces need infrastructure development to support economic growth.
Zimbabwe can play a significant role in this regard. Opportunities exist in the construction of roads, bridges, power generation and water supply systems.
In line with this, the DRC government is looking for companies to build hydroelectric power stations at Kafwankumba and Kayembe Mukulu, and on the Lueu River.
Senior government officials in the Haut-Lomami province have also invited Zimbabwean companies to tender for a 700km road construction project, which was announced following the ZimTrade-facilitated outward mission in May this year.
Local firms need to take advantage of these opportunities. They can tap into these projects as contractors and also as suppliers of diversified products and services required in the construction industry.
Room for trade and
economic integration
Expanding trade and economic integration between Zimbabwe and the DRC can bring mutual economic benefits.
Lualaba and Haut-Lomami provinces, with their strategic location and access to regional markets, can serve as gateways for Zimbabwean businesses to expand their reach into the larger Central African market.
By establishing trade partnerships and investing in cross-border infrastructure, Zimbabwe can enhance its trade relations with the DRC and tap into the vast consumer base in these provinces.
Establishing these business links is possible because Zimbabwe and the DRC enjoy strong political relations, which provide a sturdy foundation for building strong economic ties.
The two countries are members of the SADC regional economic bloc, providing a platform for companies to trade duty-free and quota-free on a reciprocal basis on qualifying products.
By leveraging on the potential opportunities in these provinces, Zimbabwe can strengthen its economic ties with the DRC and contribute to regional development and stability.
Allan Majuru is ZimTrade’s chief executive officer.
