The Sunday Mail
Trade Focus
Allan Majuru
THE transactional diplomacy agenda spearheaded by President Mnangagwa has been focusing on leveraging on Zimbabwe’s diplomatic relations.
So far, major strides have been made in reintegrating Zimbabwe into the global economy, following decades of isolation.
The foreign policy thrust of engaging and re-engaging is not only looking at improving political relations with the rest of the world, but finding new markets for Zimbabwean products as well.
This new approach is unlocking endless opportunities for Zimbabwe, particularly the private sector.
Local farmers also have an opportunity to supply flowers
At the end of the day, after the Government has created enabling conditions to do business, the private sector must take full advantage of the situation.
For example, Zimbabwe’s relations with Belarus are at an all-time high, especially after the State visit by Belarusian President Aleksandr Lukashenko earlier this year.
During the historic visit, Zimbabwe and Belarus inked several cooperation agreements in areas such as trade and investment.
As a follow-up to the issues discussed by Presidents Mnangagwa and Lukashenko, the Minister of Foreign Affairs and International Trade, Ambassador Frederick Shava, led a Zimbabwean delegation to Belarus, where the focus was on implementing the deals.
During the visit, the Zimbabwe Embassy was also officially opened in Belarus.
This diplomatic mission is expected to advance the business interests of Zimbabwe’s private sector by linking it with potential buyers of products and suppliers of equipment, as well as potential investors.
ZimTrade and its Belarusian counterpart, the National Centre for Marketing, signed an agreement to strengthen trade between the two countries, particularly in areas they enjoy competitive and comparative advantage.
These activities demonstrate commitment by the Government to create new markets for local products.
What is important going forward is for local companies to identify supply gaps in the market. Indeed, there is massive potential for local products in Belarus.
Belarus trade performance
Just like Zimbabwe, Belarus is a landlocked country, which offers several advantages due to its proximity to markets in Eastern Europe.
The country is bordered by Lithuania and Latvia to the northwest, and Russia to the north and east.
Ukraine is in the south, and Poland in the west.
With a population of 9,3 million, Belarus’ high import bill indicates that it has a wide re-exporting network in its region.
In 2021, its import bill amounted to over US$41,8 billion, according to Trade Map, with most products coming from Russia, China, Germany, Ukraine, Poland and Italy.
Of the total imports, only US$157 million came from Africa, mainly Morocco, Cote d’Ivoire, Egypt and South Africa.
Belarus’ top imports from Africa include phosphates, citrus, cocoa and horticultural produce. Fresh flowers are among the horticultural produce the country imports.
So, Zimbabwe can exploit opportunities in horticulture (fruits and nuts) and essential oils.
According to Trade Map, Belarus’ total imports of fruits and nuts were around US$535 million in 2021, and top of this list were apples, pears and quinces (US$143 million), citrus (US$67 million), berries (US$65 million), bananas (US$55 million), grapes (US$41 million) and stone fruits (US$34 million).
These top imported fruits and nuts are produced in abundance in Zimbabwe.
According to most international buyers, the local produce tastes better than that from other African countries.
Zimbabwe, therefore, has potential to grow and export organic produce to Belarus due to its ideal soil and favourable climatic conditions.
From discussions with potential distributors in Belarus recently, buyers indicated interest to source avocados and macadamia from Zimbabwe.
On varieties, buyers are interested in the Hass avocado, which is already the type grown in Zimbabwe for export.
The macadamia market in this Eastern European country is fairly new, but the growing demand for the nut across the world is driving interest among consumers.
This means new suppliers are likely to get a premium price on the market, as the product is targeted at niche consumers who are willing to spend more.
Local producers, however, need to increase production, as current demand from across the world is surpassing output.
Local farmers also have an opportunity to supply flowers, whose total import bill in Belarus was around US$62 million in 2021.
Flower imports, which had been affected by Covid-19, are expected to grow this year.
Early movers are likely to benefit a lot, as Minsk imported flowers worth over US$150 million in the past five years.
There are additional opportunities for Zimbabwean farmers in coffee, tea and spices, whose import steadily grew in Belarus from US$91,1 million in 2017 to US$116,6 million in 2021.
Coffee imports, for example, stood at US$62,4 million in 2021, up from US$39,4 million in 2017. Last year, the market also imported tea worth US$44,6 million, ginger (US$5,4) million and pepper (US$2,8 million).
There is also scope for tobacco exports.
But more value can be realised through the exportation of manufactured or value-added tobacco, including cigars.
Furthermore, local companies have an opportunity to supply niche produce such as superfoods, wild fruits, essential oils, herbs and spices. Superfoods found in Zimbabwe with huge export potential include the baobab fruit, which can be marketed as powder, oil, harvested pulp and supplements.
Belarus is huge on essential oils, whose total import value has grown from US$202 million in 2012 to US$319 million in 2021.
Currently, there are buyers from Germany who are importing baobab and marula oil from rural communities in Zimbabwe.
The same suppliers can be capacitated to boost production so that they supply the essential oil market in Belarus.
In addition, there is a potential market for cotton, whose total import bill was around US$105 million in 2021, according to Trade Map.
Top import products in the sector last year included woven cotton fabrics (US$55,9 million); cotton yarn (other than sewing thread) (US$35,03 million); and cotton, neither carded nor combed (US$14,3 million).
Support from Belarus
There is an opportunity for local companies to benefit through import of equipment and machinery for retooling.
Local farmers are already benefitting from the Zimbabwe-Belarus Farm Mechanisation Programme, which is aimed at modernising the agriculture sector.
Other sectors such as manufacturing can similarly benefit through technology and skills transfer.
Allan Majuru is the ZimTrade chief executive officer
