The Sunday Mail
Trade Focus
Allan Majuru
When President Mnangagwa launched the National Export Strategy in 2019, he challenged industry, including small businesses, to make bold steps that will grow exports by ensuring at least part of their production is earmarked for foreign markets.
He indicated that they could, for example, reserve 80 percent for local markets and export the remainder.
He also emphasised the need to integrate all businesses and previously marginalised communities into the mainstream export business.
The call by the President is now bearing positive results.
There are indications that exports might surpass the US$7,2 billion year-end target set in the National Export Strategy if the same growth recorded in 2022 is sustained.
The country’s exports stood at US$7,02 billion — US$6,59 billion for merchandise goods and US$434 million for services — last year.
Overall, merchandise exports grew by more than US$500 million in 2022 than a year earlier.
If the same trend is sustained this year, the end-of-year target will be met.
Exports have been growing owing to interventions by Government and related institutions to promote the visibility of local products in regional and international markets.
For instance, exports rose from US$4,7 billion in 2020 to US$6,3 billion in 2021, before further climbing to US$7,02 billion last year. It is, however, encouraging to note that exports of manufactured or value-added products grew by 12,9 percent, thus surpassing the 10 percent growth target outlined in the National Export Strategy.
Exports of manufactured products grew to US$366 million in 2022, up from US$324 million in 2021.
The penetration of Zimbabwean products in non-traditional markets has also been equally encouraging, thanks to the economic diplomacy being championed by President Mnangagwa, particularly through the Ministry of Foreign Affairs and International Trade.
Exports to the United Arab Emirates (UAE) passed the US$2 billion mark, up from US$833 million in 2019.
The UAE now contributes 32,3 percent of total exports.
Shipments to China, Belgium, Zambia, Italy and Netherlands have also grown exponentially over the past year.
China is one of the leading emerging markets for local products, taking merchandise worth US$584,5 million in 2022, up from just US$3,25 million in 2019.
Exports to Italy markedly grew from US$2,3 million to US$61 million in the same period.
The value of goods shipped to the Netherlands jumped from US$2,71 million in 2019 to US$47,9 million in 2022.
Similarly, exports to Zambia rose by 50 percent from around US$60 million to around US$90 million between 2019 and 2022.
Big movers
Processed foods made a rebound, growing by 25 percent to US$74 million in 2022 from US$59 million a year earlier, driven by sugar, confectionery products and fruit juices.
Sector players continue to participate in trade promotion events organised by ZimTrade, the national trade development and promotion organisation.
In 2022, ZimTrade facilitated market linkages between local producers and potential businesses in regional markets such as the Democratic Republic of Congo (DRC), Zambia, Mozambique, Botswana, Tanzania and Malawi.
These events have strengthened linkages between local food processors and major distributors in the region.
This year, ZimTrade plans to take businesses in the sector to non-traditional markets such as Ghana, where a market survey conducted last year revealed potential for local products. These activities in non-traditional markets will complement planned events in markets in the region such as Lubumbashi and Kolwezi in DRC; Zambia; Botswana; Namibia and Mozambique.
Manufactured tobacco exports increased from US$56 million in 2021 to US$72 million in 2022, translating into a 25 percent growth.
Players in the sector are tentatively scheduled to participate in trade promotion events taking place in international markets, with the United Arab Emirates and China being some of the promising markets.
In addition, exports of agricultural inputs and implements rose by 35 percent to US$31,2 million in 2022 from a year ago.
Major exports were maize seed, soyabean seeds, fruit seeds and spores.
In the packaging and stationery sector, exports also jumped by 25 percent from US$9,2 million in 2021 to US$11,6 million in 2022. Major exported products in the sector were cartons, boxes and paperboard, et cetera.
Arts and crafts recorded a marginal growth from US$8 million in 2021 to US$8,6 million in 2022.
The aquaculture sector is also making notable recoveries, jumping by 117 percent from US$689 000 to US$150 million in the period under review.
The sector is expected to continue growing following the participation of local businesses involved in arts and crafts at the Ambiente Trade Fair held in Germany recently. Exports from the mining sector leapt from US$4,7 billion in 2021 to US$5,1 billion in 2022, translating into an 8 percent growth.
Furthermore, unmanufactured exports increased from US$780 million in 2021 to US$926 million in 2022, representing a 19 percent jump.
As the Mainland China market opens after a considerable time under a lockdown due to Covid-19, exports of tobacco to the market are expected to continue increasing.
Shakers
Building and construction materials exports stood at US$42 million last year, down from US$43,8 million recorded in 2021.
Despite a slowdown in the sector, ceramic tiles exports increased from US$9,4 million in 2021 to US$16,5 million in 2022.
Also among the shakers is the clothing and textile sector, which recorded a 13 percent drop from US$22 million in 2021 to US$19 million in 2022.
Hides and skins exports also declined by 19 percent from US$28 million to US$23 million in the period.
Allan Majuru is ZimTrade’s chief executive officer
