Zimbabwe struggles with trade deficit in COMESA
Zimbabwe is facing a growing trade imbalance within the Common Market for Eastern and Southern Africa (COMESA) region.
According to latest data from the Competition and Tarriff Commission (CTC), there was significant increase in imports from COMESA countries, leading to a trade deficit exceeding US$604 million in 2022.
COMESA is a regional economic bloc in Africa, with 19 member states and a population of about 390 million. COMESA has a free trade area and launched a customs union in 2009 in Victoria Falls.
Fertilisers, cereals, and cement comprise over a third, or 33 percent percent of Zimbabwe’s imports from COMESA between 2018 and 2022.
This reliance on imports, particularly agricultural inputs like fertilisers and oilcake, stems from Zimbabwe’s historical dependence on agriculture.
The Zimbabwe Agriculture National Policy Framework (2018-2030) prioritises food security, and these imports aim to support this objective by boosting crop yields and livestock production.
Essential food products such as maize, oilseeds, and vegetable oils are also being imported from COMESA.
On top of that, machinery and cement for construction projects contribute to the import list.
Experts warn that Zimbabwe’s vast tracts of arable land have the potential to substitute some of the imports.
Overreliance on essential imported goods exposes the nation to vulnerabilities like price hikes during crises, as witnessed in previous years with fertilizers and vegetable oils. Moreover, importing agricultural commodities like maize and oilseeds can discourage domestic production, hindering long-term growth in the agricultural sector.
“Zimbabwe has vast tracts of arable land to substitute some of these imports as reliance on some of these essential imported goods impacts the country’s self-sufficiency in crisis periods and this can be witnessed through prices hikes as has been observed for some of the commodities such as fertilizer and vegetable oils in previous years,” said CTC.
-ebuisnessweely
