Limitless global opportunities

22 Sep, 2019 - 00:09 0 Views

The Sunday Mail

Trade Focus
Allan Majuru

Without doubt, Zimbabwe is home to some of the best quality products acclaimed around the world.

Products such as Mazoe Orange Crush, Tanganda Tea and many others have carved a mark in the global export market.

From formal exporting channels to the “suitcase” mode of exporting — where an individual carries a few items as they travel to bring family and friends — locally produced products have been used around the world.

And there has been positive feedback that local products are indeed competitive.

Buyers in countries such as Zambia and Botswana, including England and the United States of America, can relate to buying Zimbabwean products.

The comments are always the same: Zimbabwean products are of good quality and can compete with products from any part of the globe.

However, research done by ZimTrade, the national trade development and promotion organisation, has indicated that in most cases, local businesses are not well capacitated, and often leave expectant customers wondering what happened to the good Zimbabwean product they would have gotten used to.

Thus, it is important for local exporters to ensure that they meet demand and increase brand visibility.

This will be discussed in detail at the ZimTrade Annual Exporters Conference scheduled for October in Bulawayo.

Buyers from United Arab Emirates (UAE), Botswana, Democratic Republic of Congo (DRC), Namibia, United Kingdom (UK) and Zambia will share information that makes it easier for local companies to penetrate export markets.

UAE

UAE consumers are high spenders and are increasingly consuming fruits, vegetables and meat, which presents opportunities for local products.

As a desert area, it also offers a niche for horticultural produce such as mange tout and sugar snap peas, green beans, fresh chillies, peppers, fresh flowers, fresh avocadoes, fresh or dried oranges, lemons, fresh passion fruit, fresh mushrooms and fresh peaches.

Exporters can leverage on current trade relations between Zimbabwe and UAE to increase exports.

Companies can start by networking at the Dubai 2020 World Expo scheduled for October the same year.

The UAE is currently among Zimbabwe’s top five export markets, receiving 6 percent of the country’s products in 2018.

UAE further provides a gateway to the Middle East.

Botswana

Botswana is largely an open market economy, which is highly facilitative of trade and investment for both local and foreign players.

The country is highly dependent on imports for most of its key requirements such as beverages, cereals, fresh produce and processed foods.

It therefore presents a ready market for fast-moving consumer goods (FMCG) such as dairy products, confectionaries, condiments and cordials.

Also, its vibrant construction industry offers opportunities for building, construction supplies and services.

There are opportunities of tapping into the country’s beef-to-leather value chain since it doesn’t have tanneries.

Conversely, Zimbabwe has eight tanneries, which can be used to satisfy demand.

DRC

The DRC market is already familiar with local pharmaceutical products and medical supplies.

Already, the Katanga area has an appreciation for local products such as fresh produce, yoghurt, cheese, chicken, polony, beef, as well as tinned foods.

The country’s fledgling insurance sector also presents opportunities for local firms; so, too, does information technology (IT) and banking.

Investments are also needed in agro-chemicals and farming implements.

Namibia

The Namibian economy provides Zimbabwe with an opportunity to supply products and services in mining, tourism, fishing, manufacturing and agriculture.

Local firms can export services such as engineering, surveying, instrumentation, transport, plant maintenance, environmental management and artisanal services to the Namibian mining sector.

Areas like tourism, the medical field, teaching, hospitality and catering, motor mechanics and fishing are also worthy of investment.

Meat and meat products similarly have a ready market in Namibia.

United Kingdom

The exit of the United Kingdom (UK) from the European Union (EU) presents huge potential for Zimbabwe to grow its trade relations with London.

Over the years, the UK has been one of the major source markets and export destinations for local products in the EU.

There currently exists a niche market for organic food, particularly for dried fruits and vegetables, fresh fruits and vegetables, among others.

Organic products, which make up a billion-dollar business in the UK, have a premium price of about 30 percent more than other products.

Favourable climatic conditions in Zimbabwe can therefore put the country in good stead to supply the lucrative market.

Zambia

Local manufacturers and distributors have a unique opportunity, anchored primarily on advantages related to logistics operations, to increase exports into neighbouring countries, which, in turn, creates supply links to more countries.

A ZimTrade market survey conducted in May 2019 revealed that Zambia offers high potential for local products and services in FMCGs and mining.

There is scope to supply materials such as structural steel and cement, as well as materials used for processes that include aluminium powder, ammonia, anodes and cathode, caustic soda, coal and cobalt sulphate.

Further, the Zambian mining sector offers a conduit to downstream activities.

For example, most mines run institutions such as hospitals, schools and training centres.

 

Allan Majuru is ZimTrade’s chief executive officer

 

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds