Zim grows regional exports, narrows trade deficit

ZIMBABWEAN is steadily increasing its exports to Namibia and penetrating more markets across Southern Africa where local businesses are making positive market inroads to expand foreign currency earnings, narrow trade deficit and contribute more to the regional integration agenda while creating more economic value for locals.

With more domestic industries being revived and numerous others being created across productive value chains, the realisation of export-led economic growth is vital in the country’s transformation agenda towards an upper middle-income status by 2030.

This week a total of 15 Zimbabwean businesses drawn from different sectors are showcasing their goods and services at the ongoing Windhoek Agricultural and Livestock Fair where they are attracting huge interest from buyers and visitors to the expo.

The Windhoek Show Society is hosting the event from September 27 to October 5, 2024, with seven countries including Zimbabwe, participating. Others are Kenya, Cameroon, Angola, South Africa, and Ghana.

ZimTrade has facilitated the participation of local businesses that include established entities and small to medium enterprises (SMEs) drawn from different sectors and productive clusters.

These include Fast Moving Consumer Goods (FMCG), leather and leather products, agriculture services, building and construction, outdoor services, oil products, chemicals and industrial suppliers.

Zimbabwe has been growing its exports to Namibia in the last 10 years, from about US$9 million worth of exports to U$21 million in 2023, showing positive growth, with a peak of US$26 million in 2026, according to Trade Map.

The major exports to Namibia are pharmaceutical products, artworks, and electricity.

Growing exports into Windhoek is critical for Zimbabwe in easing the trade deficit as Namibia retains an upper hand with exports worth about US$44 million in 2023 comprising mainly fish, meat products and petroleum oils.

Similarly, in the last 10 years, Zimbabwe has recorded growth in exports to Zambia, securing US$142 million in 2023 from US$62 million in 2019.

With the Democratic Republic of Congo (DRC, the country has seen a jump in total exports, mainly coal and coke products, to US$132 million in 2023 from US$26 million in 2019, suggesting more gains could be realised through product diversification and value addition.

The positive strides extend to Mozambique, where Trade Map figures show that Zimbabwe grew its exports to about US$400 million in 2023 from US$354 million in 2019, mainly pushing iron and steel products, sugar, paper and packages, tea and coffee, edible fruits, and tobacco with more opportunity for FMCG.

Zimbabwe has also been growing exports to Malawi with statistics showing that in the last eight years from 2016 exports grew from US$16 million to US$27 million in 2023, despite export challenges in that country.

Market intelligence surveys suggest there is a huge opportunity in key product areas such as honey and agricultural services aligned to the beef value chain, FMCGs and mining consumables, among others.

“The opportunities for Zimbabwe here are immense, especially on the FMCGs, leather and leather products, and agricultural services where we have comparative advantage,” ZimTrade export promotion officer, Alex Mutandi, said.

“However, the key issues we need to address as a country are quality and competitiveness in pricing as our major competitor is South Africa. We are thrilled to have received a trophy for being the best foreign exhibitor at the expo out of seven other countries.

This is a testimony of the quality of goods and services we are exporting. We are expecting good business from the show considering the level of engagement that has happened so far.”

Kudakwashe Chemhuru, who is representing Malcom Paints, which produces different types of paints, said the expo was a grand opportunity for them.

“We have found an opportunity to do partnerships here and that will help us grow our brands across the southern African market,” he said. We manufacture different types of paints and we thank ZimTrade and UNDP for facilitating such an opportunity for Zimbabwean businesses. It’s such a fruitful mission.”

Tinashe Manyonga of Unique Innovations, trading as Temp Bag, said: “We have managed to make great inroads in this market, as we have managed to create a good database for business”.

Commenting on the expo experience so far, Rukanda Pride, a Zimbabwean company that is into leather products manufacturing expressed optimism of scooping good business deals at the ongoing Windhoek Agricultural and Livestock Fair in Namibia. Company representative here, Mazvita Marowa, says the exhibition so far has been eye-opening.

Local businesses participating at the Windhoek Expo are Kefalos, Matabeleland North Handicrafts, Moreda Leather, Comrades Beverages trading as Matobo African Gin, Unique Innovation trading as Temp Bag, Jadesave Investments and Afrostain.

Others are AgriRocket Engineers, Rukanda Pride, Malcom Paints, Viridi Solutions, Good Hope Leather, Millennium Footwear, Samuneti Leather, and Nyanyadzi Honey Cluster.

Of the participating businesses, nine are women and youth-led SMEs’ operations that were supported by the United Nations Development Programme (UNDP), a majority of whom are first-time participants.

Zimbabwe and Namibia have solid trade relations supported by bilateral agreements and both are members of the SADC and COMESA treaties that seek to promote regional economic cooperation.-ebsinessweekl