The Sunday Mail
ZIMBABWE has registered remarkable growth in its exports in recent years. President Mnangagwa’s administration has continued to help local businesses unlock their export potential.
Trade Focus
Allan Majuru
Bilateral and multilateral trade agreements, as well as enhanced regional integration efforts, have also played a significant role in catapulting Zimbabwe’s exports onto the global stage.
This shows that right policies, trade agreements and regional integration efforts can drive exports.
Zimbabwe continues to harness benefits of these dynamics. From the ongoing activities, it is clear that the country will continue to grow its footprint in export markets.
ZimTrade — the national trade development and promotion organisation — recently facilitated the participation of over 20 local companies at the largest trade fair in Botswana, where they directly engaged with retail buyers, wholesalers and distributors, as well as the public, who all took a keen interest in the products on display.
Participation at the Global Expo Botswana (GEB) 2023, which ran from October 11 to 14 in Gaborone, is one of many deliberate efforts to leverage on relations between Zimbabwe and its neighbour Botswana towards improved trade.
At the fair, which was attended by representatives from seven other countries — among them Cyprus, South Africa, Angola and Kenya — Zimbabwe won the Best International Exhibitor Award.
This shows its success in efforts to boost visibility of local products and services in regional markets.
The expo also revealed the success recorded by local companies in building strong brands in the market.
Many visitors to the Zimbabwe pavilion ended up feeling nostalgic, and this was due to the local brands from the food processing sector. They include tea and canned food. This demonstrates how developing recognisable, strong brands can benefit exporters over time.
Distributors often asked for the products by brand name.
Further, distributors and retailers alike expressed interest in having these products in-store, as they were confident that they could easily market themselves owing to their strong brand names.
Diversifying exports to Botswana
Zimbabwe’s exports — including agricultural produce, mining products, building and construction materials, clothing and textiles, and processed foods — have significantly gained traction in Botswana.
This expansion of trade horizons has not only boosted Zimbabwe’s exports, but has also showcased its potential as an important regional player.
Zimbabwe’s export basket for Botswana has become increasingly diversified and reflective of its rich resource endowment.
The diversification has allowed Zimbabwe to tap into new markets while minimising risks associated with reliance on a single commodity’s export revenues. As a result, local businesses have been able to capture an even larger market share in Botswana.
Increased market share has, however, not only been restricted to big companies, but also small enterprises, including youth- and women-owned businesses.
To ensure exposure of these two groups, some of the exhibitors at GEB 2023 included past and current participants in the youth exporter incubator programme — the ZimTrade-run Eagles Nest — as well as the prestigious female entrepreneur empowerment programme, NEXT She Exporter.
This is part of deliberate moves to ensure the exporter base is inclusive.
Botswana fair boost for Zimbabwe
Botswana and Zimbabwe have cordial political ties that have translated into better trade relations.
The two countries have a bilateral trade agreement signed in 2018 that allows duty-free and quota-free access for certain goods under the deal.
This agreement has since paved the way for a diverse range of Zimbabwean goods to enter Botswana’s flourishing market, thereby enhancing economic cooperation between the two countries.
GEB 2023 gave exhibitors an opportunity to discuss specific market requirements with buyers to ensure local companies produce to requirements, in line with Botswana’s regulations and market preferences.
For example, some of the companies were advised on the need for tomato paste made to specifications.
There is demand for tomatoes for food processing. Most of the tomatoes produced in that country go towards household consumption.
Zimbabwean firms that produce tomatoes can consider Botswana as an export destination by value-adding their produce as per specific buyer requirements.
Several buyers were impressed by the quality of Zimbabwean products, which they said was higher than what competition is offering.
For example, leather products from Zimbabwe were considered unique.
Local companies looking to explore the Botswana market must, therefore, ensure the highest quality possible, as this will make it easy to unlock access to high-end consumers.
Further, Botswana has a thriving beef industry, but is yet to develop a leather industry backed by a tannery to process exotic and indigenous hides and skins.
There are opportunities for Zimbabwean tanneries to grow their exports by importing raw leather from Botswana for local processing.
Indications are that the Botswana government is prepared to support companies that are looking to partner with firms in the neighbouring country on the development of certain value chains.
During his visit to the Zimbabwe pavilion, President Mokgweetsi Masisi indicated Zimbabwean companies’ potential to offer skills training for shoe manufacturing in Botswana.
He also acknowledged the huge strides Zimbabwe has made in developing its horticulture sector and hinted on the possibility of collaboration to train farmers in Botswana to produce certain crops.
Allan Majuru is ZimTrade’s chief executive officer.
