The Sunday Mail
Trade Focus
Allan Majuru
Zimbabwe’s exports continue to be on the rebound, with the country recording a steep 39 percent export growth between January and April this year compared to the same period last year.
This follows a sustained upward trend over the past year that has seen the country exceeding the targeted 10 percent export growth required under the National Export Strategy.
This resurgence is on the back of President Mnangagwa’s engagement, re-engagement and economic diplomacy approach, which continues to yield positive results.
Over the past few years, the President has been clear that the country also needs to deepen relations with other African countries and translate them into economic gain.
This has seen the Second Republic instituting several measures to unlock export opportunities across the world following years of isolation, leveraging on Zimbabwe’s foreign relations, its position in the region, as well as areas it enjoys competitive and comparative advantage. Through economic diplomacy, Zimbabwe continues to unlock non-traditional markets, with growing exports to markets such as United Arab Emirates (UAE), China, Belgium, Italy and Jordan.
Exports to UAE grew by almost 98 percent to US$710 million in 2021 from US$359 million in 2020, whilst new markets such as Jordan, where Zimbabwe recorded its first exports this year (amounting to US$11,5 million), are emerging. The country is also reaping positive results from ZimTrade’s efforts to develop export capacities of local companies and promote Zimbabwean products abroad.
According to latest figures released by Zimstat, the country’s exports between January and April this year stood at US$2,1 billion, representing a 39 percent increase compared to US$1,5 billion recorded in the same period in 2021. Exports of manufactured or valued-added products increased by 32,2 percent from US$85,8 million in April 2021 to US$113,5 million in April 2022.
On the other hand, imports increased by 17,3 percent to US$2,6 billion during the period under review. Consequently, the trade deficit for the period narrowed to US$487 million from US$699 million in 2021.
It is encouraging that the bulk of imports were raw materials and capital equipment for the manufacturing sector. Figures show that total imports between January and April this year were largely machinery and equipment, which grew by 11,4 percent from US$434 million last year to US$484 million.
Raw material imports rose by 53,8 percent from US$279 million to US$429 million this year. Other top import products were fuels, electricity, vehicles, motorcycles and parts.
Big export movers
Processed food exports are showing signs of recovery after a drop in sugar exports in 2021.
They increased by 41,3 percent from US$16,9 million in 2021 to US$24 million in 2022.
Sugar exports rose from US$1,4 million to US$8,2 million, whilst baked products grew from US$1,8 million to US$2,2 million.
The processed foods sector is one of the key sectors earmarked for continued export growth this year following heightened engagements between local manufacturers and producers in the region and beyond.
During the Zimbabwe Outward Seller Mission to Lubumbashi, DRC, organised by ZimTrade recently, participating companies were told of the huge potential for local products. Buyers indicated that Zimbabwean products are known for better quality and they plan to source from local players if they can match price and meet demand.
These are the same sentiments shared by buyers in Dubai during the Zimbabwe-Dubai Business Forum held earlier this year, where potential was noted for products such as cordial drinks, biscuits, sauces and condiments, dairy products, cereals and granola, dried fruits and vegetables, sweets, herbs and spices, and natural oils.
To increase exports of the processed foods into the region, the sector will take part at the Zimbabwe Outward Seller Mission to Manica Province of Mozambique scheduled for June 14 to June 16.
Further, leather and leather products exports increased by 35,5 percent from US$626 000 last year to US$849 000 during the review period.
Exports of hides and skins also climbed by 44,7 percent from US$4 million between January and April last year to US$5,8 million during the same period this year.
There have been targeted efforts to expose locally produced leather and leather products to non-traditional markets such as countries in Asia and the Middle East.
ZimTrade facilitated for sector players to participate at the Asia-Pacific Leather Fair, which ended on April 2 in Dubai, United Arab Emirates, where they engaged potential buyers from across the world who were impressed by the quality of products that were on offer.
In addition, building and construction exports increased from US$11,7 million in 2021 to US$12,5 million in 2022 during the period under review, translating to a 7,2 percent increase. Major exports in the sector were unglazed ceramic flags, paving, wall tiles, mozaic cubes, which rose from US$1,3 million in April 2021 to US$4,9 million in 2022.
Targeting exports to regional markets such as Botswana, where local products have been performing well over the past years, will ensure quick wins.
Local manufacturers also need to unlock new markets with potential such as Mozambique, Malawi, DRC, Namibia and Angola.
Although export values are still low for the packaging and stationery sector, it has recorded a huge jump in the period under review, growing from US$2,4 million in April 2021 to US$5,7 million in 2022.
The 138 percent increase indicates potential in the sector, where products such as cartons, boxes and paperboard, paper, and corrugated paper are popular.
Players in the sector looking to grow exports are encouraged to use the Zimbabwe Packaging Portal (zimpackaging.co.zw), which provides a competitive edge for local manufacturers, as they receive recognition from the international market and also an opportunity to supply new consumers either in the region or internationally.
Further, manufactured tobacco exports increased from US$15 million in April 2021 to US$21,3 million in 2022.
The mining sector, which is the country’s largest foreign currency earner, grew by 30,6 percent from US$1,3 billion in April 2021 to US$1,7 billion in April 2022.
Increasing and improving value-addition of minerals will not only allow the country to realise full value from mineral exports, but create jobs and improve livelihoods as well.
Unmanufactured tobacco exports also increased from US$129,5 million to US$298,3 million in 2022.
Shakers
Horticulture exports dropped by 10 percent to US$13,1 million in April 2022 from US$14,6 million the same last year.
However, targeted export capacity development and promotion programmes by ZimTrade for the sector are expected to improve exports as the year progress.
ZimTrade has so far facilitated two global exhibitions — the Fruit Logistica that took place in Germany and MacFrut Fair in Italy.
Participating exporters engaged buyers who indicated willingness to source from Zimbabwe, with a key focus on organic produce.
The sector players will also take part at the Zimbabwe Outward Seller Mission to the United Kingdom (UK) that will be held later this year. UK remains Zimbabwe’s leading importer of fresh produce.
Arts and crafts exports decreased by 12,5 percent from US$3 million in April 2021 to US$2,7 million in 2022.
Aquaculture exports continued to decline in the new year, as exports fell by 35 percent from US$364 000 to US$236 000 during the period under review.
During the same period in 2019, the sector exported US$2,4 million, clearly showing the negative effects of Covid-19 on cold-chain supply, as most of the Asian markets gazette stringent requirements for exports.
Allan Majuru is ZimTrade’s chief executive officer
