The Sunday Mail
TRADE FOCUS
Allan Majuru
ZIMBABWE’s exports surpassed the set target in 2023, demonstrating the Second Republic’s commitment to boost the visibility of local products in regional and international markets.
When the National Export Strategy was launched in 2019, Zimbabwe had an ambitious goal of growing annual exports from US$4,5 billion in 2018 to US$7,2 billion in 2023 and US$14 billion by 2030.
Over the past year, the Government, through the Ministry of Foreign Affairs and International Trade, and ZimTrade — the national trade development and promotion organisation — embarked on a spirited campaign to unlock economic value from Zimbabwe’s stellar foreign relations.
The economic diplomacy agenda sought to create space for local products and services in targeted markets, buoyed by Zimbabwe’s good international relations.
This has undeniably paid off.
Recent data from the Zimbabwe National Statistics Agency shows that the country’s exports rose to US$7,2 billion in 2023, which is a 9,7 percent increase from US$6,6 billion in 2022.
Figures from the Reserve Bank of Zimbabwe show that service exports stood at US$379 million in 2023.
Overall exports in 2023 thus stood at US$7,6 billion, against a set target of US$7,2 billion.
During the same period, total imports increased to US$9,2 billion, from US$8,6 billion in 2022.
The trade deficit for the period under review stood at US$2 billion, which is a slight decrease from US$2,04 billion recorded in 2022.
What is encouraging is the continued growth in the export of value-added products.
The export of manufactured or valued-added products increased by 22 percent, from US$366,5 million in 2022 to US$448,7 million last year.
Movers
The processed foods sector continues to secure wins, thanks to the growing demand in regional markets, where Zimbabwean products are considered to be of better quality compared to goods from other countries.
The export of processed foods grew to US$106 million in 2023, from US$74 million the previous year, representing a 43 percent growth.
Major products exported in the sector were sugar, beer made from malt and fruit juices.
With several export promotion programmes lined up in markets such as Mozambique, Namibia, Zambia, Botswana, Democratic Republic of Congo and Angola, exports from the sector are projected to record further growth this year.
Manufactured tobacco exports increased from US$71,9 million in 2022 to US$106 million in 2023, representing a 47 percent surge.
Considering the continued increase in tobacco production, adding value to the golden leaf would further enhance trade.
Additionally, the export of household electricals and furniture increased from US$20,5 million in 2022 to US$20,8 million in 2023.
Major exported products were kitchen or household articles; parts of iron or steel; and materials for plastics and refrigerators.
Hide and skin exports also increased from US$23 million in 2022 to US$34 million last year.
In addition, packaging and stationery exports increased from US$1,5 million to US$14,2 million.
Efforts to unlock export potential in the arts and crafts sector continue to bear fruit. The sector recorded a 15 percent growth to US$10 million last year, from US$8,7 million a year earlier.
The coming in of export clusters established by ZimTrade to integrate small players, such as the Mashava Arts Cluster, is expected to contribute towards further export growth from the sector.
The export of chemicals, excluding pharmaceuticals and fertilisers, amounted to US$4,2 million, up from US$2 million in 2022.
Major exported products in the sector include sulphur of all kinds, which jumped from less than US$317 000 in 2022 to US$1,1 million last year.
Another huge increase was recorded in the export of organosulphur compounds, which rose from just around US$6 000 to US$1,1 million in the same period.
Although there has been an impressive growth in value-added exports, the bulk of the country’s exports are primary products, which is not sustainable in the long run, as it translates to export of value, development and jobs.
Figures show that exports of mineral alloys increased by 6 percent from US$5,17 billion in 2022 to US$5,48 billion in 2023.
Major exported products in the sector were gold and nickel mattes.
Unmanufactured tobacco exports tremendously increased from US$926 million in 2022 to US$1,19 billion in 2023.
Zimbabwe surpassed both its 2022/2023 target of 230 million kilogrammes and its all-time record of 259 million kilogrammes, thereby reinforcing its status as Africa’s largest tobacco producer.
Shakers
Exports from the building and construction sector declined by 28 percent to US$30 million last year from US$42 million in 2022. Products that experienced a decline include unglazed ceramic flags, paving, hearth or wall tiles, worked monumental/building stone, mosaic cubes and granules.
Export of agricultural inputs and implements declined by 12 percent from US$30,9 million in 2022 to US$26,9 million during the same period in 2023.
A drop was recorded in the export of seed maize from US$5 million to US$3,5 million, as well as seeds, fruits and spores of the kind used for sowing from US$4,1 million to US$3,4 million.
However, there was an increase in the export of mineral or chemical fertilisers from none in 2022 to US$600 000 last year.
Export of appliances for spraying increased from US$55 000 to US$801 000.
*Allan Majuru is ZimTrade’s chief executive officer.
