Diversify exports, UAE urges Zim farmers

THE United Arab Emirates (UAE) has urged Zimbabwean exporters to diversify exports and reach out to world markets including the Middle East leveraging on Dubai being a global trade and transit centre for a variety of goods.

The UAE, where Zimbabwe exports gold, diamond and tobacco, is the country’s second largest trading partner after the neighbouring, South Africa.

Since UAE is an import-based market, it is also an attractive market for the sell of agricultural produce.

About 80 percent of the agricultural produce consumed in the Emirates is imported from all over the world, with a total value of more than $10 billion (in 2018).

Speaking during a recent food and agribusiness virtual summit last week, Dubai Expo chief economist Dr Ashraf Ali Mahate said UAE is a hub to Menasa region, which comprises the Middle East, North Africa and South Asia, which Zimbabwean firms can take advantage of to export to the rest of the world.

“This is a bloc of 22 countries with a population of 2,5 billion, about 30 percent of the world’s population.

“I think this is the gateway, the door that gives Zimbabwean farmers or producers access to a huge market via Dubai.

“Dubai has wonderful logistics which can be harnessed, for example, there is what is called AGOA (African Growth Opportunities Act) that allows countries such as Zimbabwe to export to the United States duty-free,” he said.

AGOA is a trade programme meant to establish stronger commercial ties between the United States and sub-Saharan Africa.

Mr Mahate said due to lack of direct logistical links, Zimbabwean exporters at the moment cannot export directly to the United States market and by virtue of Dubai being a global trade and transit centre, local firms can take advantage of this to access markets around the world including western markets.

“This is the potential that we have, not only to the East but to the West as well.

“You shouldn’t forget that the UAE is the world’s largest exporter of fruit and vegetables to the US and a significant player in horticultural products and Zimbabwe should be aware of the huge changing demand of consumer tastes for organic foods,” he said.

Mr Mahate said producers or companies from Zimbabwe should consider collaborating with UAE firms because UAE firms already have got established links, supply chain and knowledge and as such local companies should synergise and reap the benefits.”

It is also believed that Zimbabwean exporters can tap into the UAE market as that country is also the second-largest economy in the Gulf region after Saudi Arabia, with a Gross Domestic Product of over US$350 billion.

The UAE Ambassador to Zimbabwe Mahash Saeed Salem Mahash Al Hameli has already committed to higher levels of cooperation through supporting the Zimbabwean economy.

He is on record saying UAE will be investing in trade opportunities in the country and working with the Government to empower citizens and local communities.

In 2017, Zimbabwe registered a trade surplus of $307,6 million with the UAE and has recently been inviting UAE companies to invest in sectors such as mining, information and communications technology (ICT), agriculture, tourism, education, renewable energy technologies, infrastructure development and healthcare.

Speaking at the same occasion, while giving an overview of attracting large-scale investments in Zimbabwe, First Capital Bank and Tobacco Industry and Marketing Board chairman Mr Patrick Devinish said:

“Probably the biggest opportunity in Zimbabwe at the moment is in our Lowveld. The good news is our second largest dam in the country, Tugwi-Mukosi has just spilled, this is an enormous dam with massive irrigation capabilities in the Lowveld of Zimbabwe where we produce huge quantities of sugar and many other products.

“There is a huge potential for large-scale investments in irrigated projects for horticultural produce as well.”

He said Zimbabwe was truly “open for business” as has been enunciated by President Mnangagwa under the Second Republic adding that there are also huge investment opportunities not only in agriculture but mining.

“There are many investment opportunities to be taken advantage of in Zimbabwe. We need people with huge amount of capital to come in and exploit opportunities,” he said. — chronicle.cll.zw