Polls cripple July exports
Zimbabwe’s trade deficit for the month of July 2023, doubled to US$179,6 million, a 56,6 percent rise from US$85,1 million recorded in June 2023.
This came as the value of monthly exports fell and imports increased in the month under review as they decreased 6 percent and 7,6 percent respectively.
According to data released by the Zimbabwe National Statistics Agency (ZimStat), the value of total exports in July 2023 was US$603,2 million, signifying a massive 6 percent decrease from total export earnings of US$641,5 million in June this year.
The country saw exports of food and beverages reduce to US$16,9 million in July from US$19,4 million from a month earlier, with industrial supply exports also decreasing to US$582,5 million from US$595,7 million in June. These two contributed significantly to the fall in exports during the month under review.
“Consequently, there was a trade deficit of US$179,6 million in July 2023, compared to US$85,1 million in June 2023,” ZimStat said.
During the month under review, minerals constituted 92,4 percent of exported goods, with manufacturing accounting for 6,8 percent of July’s exports.
The country needs to quickly adjust its exports and make them more valuable through value addition.
Yes, talk has been there but we need to take action as a country and work towards a common goal to earn more from these minerals,” said Doubt Chiorora an economist.
Leading exports in July were, semi manufactured gold at 26,7 percent, nickel mattes including platinum group of minerals (PGMs) at 11,1 percent, other mineral substances (11,3 percent), tobacco (8 percent), Nickel ores and concentrates (5,0 percent), industrial diamonds (19,2 percent) and ferro-chromium (4,7 percent).
“It is a good thing that the country is getting to work around its trade deficit and thanks to global commodity prices that we have gotten to earn so much,” said trade specialist Josephine Zikomo.
According to the Agency, the country’s major imports remained mineral fuels and mineral oil products which stood at 18,7 percent in July 2023, and this was followed by machinery and mechanical appliances at 14,9 percent in July 2023.
Other imports in July 2023 included vehicles at 7,5 percent, electrical machinery (6,5 percent), electrical machinery and equipment (6,5 percent), iron and steel and articles of iron and steel (6,2 percent), fertilisers (5,4 percent) and Plastics (3,6 percent).
Notably, major imports were aggregated to reach 69,6 percent in July 2023.
In terms of destinations, in the period under review, Zimbabwe exported goods and services worth US$226 million to South Africa, but made imports worth US$272 million from the neighbouring country, resulting in a trade deficit of US$46 million.
In July 2023, the main export destinations were South Africa and United Arab Emirates as they accounted for 34,9 percent and 30,7 percent respectively.
South Africa at 37,6 percent and China (16, 8 percent) were the main source countries for imports to Zimbabwe in July 2023.-businessweekly
