Exports record impressive start in 2024

Allan Majuru

TRADE FOCUS

Zimbabwe’s economic revival continues, as export figures are showing significant progress in the first three months of the year.

President Mnangagwa’s multi-pronged approach is premised on reviving the economy and placing Zimbabwe at the centre of supply chains in Southern Africa and the continent as a whole.

With focus on diversifying export markets through economic diplomacy, as well as broadening export products through developing capacities of small businesses and communities, the Government is unlocking the potential of local industries and resources.

Latest figures released by the Zimbabwe National Statistics Agency reveal that the country’s exports stood at US$539,9 million in January 2024, which is a 25 percent increase compared to the US$429 million recorded over the same period in 2023.

Apart from growing exports, Zimbabwe is also narrowing the trade deficit.

What is more intriguing when looking at export growth is the contribution of value-added products, which recorded a 103 percent increase, from US$20,7 million in January 2023 to US$42,2 million in January 2024.

The drive to diversify markets is also showing a positive outlook as the country continues to open new markets, as well as strengthen its penetration into emerging markets.

Exports to China increased by 120 percent to US$87 million in January 2024, up from US$39,4 million last year.

In the region, Zimbabwe continues to make gains in markets such as Mozambique, where exports grew from US$16 million in January last year to US$52 million in January this year.

However, exports to South Africa declined by 11 percent to US$162,2 million this year, from US$182,8 million in January last year.

There was an improvement in exports to the United Arab Emirates, which increased to US$134,9 million in January this year from $128,1 million recorded in the same month last year.

Exports to Indonesia grew to US$10,4 million from US$3,8 million last year.

The in-market activities planned by ZimTrade in Mozambique, such as the Outward Meeting set for June 18-20 this year, including the second appearance of Zimbabwe at this year’s edition of the Mozambique International Trade Fair, are expected to further boost trade between the two countries.

In Zambia, exports recorded a 50 percent growth from US$7,1 million to US$10,7 million in the review period.

However, there are many untapped export opportunities in the neighbouring country in sectors such as processed foods, clothing and textiles, protective clothing, agriculture, mining, construction, engineering and services.

To ensure local businesses take maximum advantage of these opportunities, ZimTrade is facilitating the participation of exporters at two premium trade promotion events in Zambia.

The Agritech Expo Zambia will take place from April 18 to 20, while the Zambia Agricultural and Commercial Show is slated for July 31 to August 5.

Movers

Exports of processed foods markedly increased to US$20,1 million in January from US$3,8 million a year earlier.

The major contributor was sugar, which rose from US$0,9 million to US$15,7 million in the period.

Going forward, the thrust is to create stronger linkages between local producers and buyers of other processed foods in the region, where demand has been on the increase in the past few years.

Markets such as Zambia, the Democratic Republic of Congo, Mozambique, Botswana and Malawi have a huge appetite for Zimbabwe’s processed foods, which are known to have better quality than what the competition is offering.

Some of the leading products on demand in the region are cordials, confectionery (sweets and biscuits), spreads (butter and jam), potato crisps/savoury snacks, plus milk and milk products.

Manufactured tobacco exports increased from US$4 million in January 2023 to US$6,3 million in January 2024, representing a 58 percent increase.

Exports of building and construction materials jumped by 13 percent to US$2,1 million in January 2024 from US$1,85 million during the same period in 2023.

Hides and skins rose by 24 percent to US$0,85 million from US$0,68 million in January 2023, while leather exports increased by 110 percent from US$237 000 in January 2023 to US$500 000 in January 2024.

Arts and crafts exports increased by 19 percent to US$683 000 in January 2024.

Pharmaceutical exports grew from US$163 000 in January 2023 to US$1,2 million in 2024, with the major exported products being medicaments of mixed or unmixed products for retail, which solely contributed to the exports in this sector for January 2024.

Exports of agricultural inputs and implements rose by 15 percent from US$1,8 million in January 2023 to US$2,1 million during the same period in 2024.

Minerals and alloys exports, which are the largest contributor to total exports, increased by 2 percent from US$348 million to US$357 million in January 2024.

Unmanufactured tobacco exports also made a significant jump, from US$54,4 million in January 2023 to US$133,5 million in January 2024.

Shakers

However, exports of household furniture and electrical appliances declined from US$1 million in January 2023 to US$400 000 in 2023, translating to a 59 percent drop.

Major exported products were table, kitchen or household articles and parts thereof of iron or steel worth US$0,2 million. Exports of chemicals, excluding pharmaceuticals and fertilisers, amounted to US$129 000 in January 2024, down from US$638 000 in January 2023.

*Allan Majuru is ZimTrade’s chief executive officer.