Zim taps new markets as exports continue rising

Trade Focus

Allan Majuru

Zimbabwe’s exports have continued rising this year, positioning the country as a key source of quality products in Africa and beyond.

This growth is largely attributed to President Mnangagwa’s economic diplomacy agenda, spearheaded by the Ministry of Foreign Affairs and International Trade, which aims to enhance Zimbabwe’s competitiveness on the global stage and boost trade.

President Mnangagwa has consistently emphasised Zimbabwe’s untapped export potential, urging businesses to explore opportunities in sectors like agriculture, manufacturing, construction, engineering and services.

He has also encouraged diversification into non-traditional markets such as China, India, Malaysia, Indonesia and the United Arab Emirates (UAE).

This strategic shift is increasingly placing Zimbabwe at the centre of global supply chains.

The results of this push have been impressive.

Despite global economic challenges, strong trade relations with both traditional and non-traditional markets have expanded the country’s export base.

The Government’s focus on international engagement and increased trade cooperation has yielded positive outcomes, with Zimbabwe’s exports to major markets showing steady growth.

According to the Zimbabwe National Statistics Agency, the country’s exports to the UAE — one of its largest trade partners — grew by 22 percent, from US$1,2 billion to US$1,47 billion, between January and August 2024.

This reflects rising demand for Zimbabwean products in the Middle East.

China also remains a key destination for local exports, with trade growing by 1 percent to US$516 million in the January to August period from a year earlier.

Although modest, this growth underscores China’s consistent interest in Zimbabwean goods, especially as other countries report negative growth in the Chinese market. In Southern Africa, Zimbabwe’s exports to Mozambique and Zambia have also seen notable increases.

Exports to Mozambique grew by an impressive 48 percent, from US$263 million to US$389 million, while exports to Zambia rose by 11 percent to US$89 million.

This growth highlights the strengthening of regional trade cooperation and importance of intra-African trade for Zimbabwe, particularly as it seeks to leverage the African Continental Free Trade Area to expand its footprint.

Beyond traditional markets, Zimbabwe’s exports have extended to non-traditional destinations such as Indonesia and Vietnam.

Exports to Indonesia more than doubled, increasing by 130 percent from US$21 million to US$49 million.

Exports to Vietnam saw a staggering 176 percent rise, from US$17,1 million to US$47,2 million, demonstrating the growing appetite for Zimbabwean products in Southeast Asia, a region offering significant potential for future growth.

During the review period, the country’s overall export performance revealed a modest growth of 1,8 percent, with total exports rising from US$4,48 billion to US$4,56 billion.

Meanwhile, imports grew by 2,5 percent, reaching US$6,04 billion from US$5,9 billion in 2023, resulting in a trade deficit of US$1,48 billion, a 4,6 percent increase from the previous year.

Movers

One of the standout export sectors has been horticulture, which experienced a 5,2 percent increase from US$41,1 million in 2023 to US$43,2 million in 2024.

Key horticultural exports included tea (US$11,5 million), citrus fruits (US$9,2 million), macadamia nuts (US$7,9 million), blueberries (US$4,4 million), peas (US$3,1 million) and fresh flowers (US$2,7 million).

The growth underscores a rebound in the sector, which is crucial for Zimbabwe’s export diversification efforts.

Smallholder farmers have played a pivotal role in this recovery, and there is potential for even greater gains as production continues to increase.

Value-added exports also recorded positive growth, rising by 2,3 percent from US$284,4 million last year to US$290,9 million this year.

This shift towards exporting finished goods, rather than raw materials, reflects Zimbabwe’s efforts to command higher prices on the global market.

Unmanufactured tobacco exports, a major contributor to Zimbabwe’s economy, grew by 20 percent to US$647 million, up from US$539 million in 2023.

Despite low volumes, strong international prices helped drive growth, with the sector now accounting for 14 percent of total exports, up from 12 percent last year.

Processed food exports also grew, rising by 13 percent to US$82,3 million, driven by products such as sugar, fruit juices and roasted cereals.

The agricultural inputs and implements sector recorded significant growth, with exports rising by 41 percent to US$20,7 million.

Notable products included maize seed exports valued at US$4 million and seed, fruits and spores used for sowing, which reached US$3,1 million.

Livestock and livestock products saw the most dramatic growth, surging by 176 percent to US$4,6 million, with eggs and live poultry leading the way.

Eggs brought in US$2,5 million, while exports of live poultry totalled US$2 million.

Leather exports also recorded a 7 percent increase, rising from US$1,48 million in 2023 to US$1,59 million in 2024.

The primary products in this sector were leather, valued at US$782 000, and goat or kid skin leather, without hair, which accounted for US$599 000.

Shakers

However, some sectors experienced declines during the review period.

Manufactured tobacco exports remained relatively flat, falling to US$64,13 million from US$64,14 million in the previous year.

The sector’s contribution to total exports remained steady at 1,4 percent — the same as last year. Exports in the clothing, textile and footwear sector saw a 15 percent drop to US$11,7 million.

Key products in this category included men’s or boys’ suits, ensembles, jackets and trousers, as well as cotton yarn.

The building and construction sector also recorded a 16 percent decline from US$20,6 million in 2023 to US$17,4 million this year.

Major exports included unglazed ceramic flags, paving, hearth or wall tiles and mosaic cubes, as well as rough or roughly squared wood.

Household electricals and furniture exports followed a similar trend, declining by 22 percent to US$16,2 million.

Significant products in this sector included tables, kitchen or household articles and parts of iron or steel, refrigerators and freezers.

Allan Majuru is the chief executive officer of  ZimTrade.