Exports diversification dominate ZimTrade conference as Zim appoints trade attaches

THE need to diversify export commodities and markets, dominated ZimTrade’s 2022 exporters’ conference, as the country continues to devise mechanisms to bolster its export basket and reach of local products.

In 2021 gems, precious metals, and a host of other minerals constituted circa 80 percent of Zimbabwe’s export basket, while tobacco constituted 14 percent of the country’s exports that leaves some of the country’s key sectors like manufacturing and services sharing the remaining six percent contribution to the country’s exports.

On the other hand, Zimbabwe’s exports destination continues to be dominated by a few as 50 percent of the country’s merchandise in 2021 went to South Africa while United Arab Emirates (UAE) was the second major endpoint of local exports as they rose to US$1, 7 billion in 2021.

2022 exporters’ conference which ran under the theme ‘Inclusive, Diversified, Connected’ held during the week went deep in deliberating the country’s need to diversify its export basket and to widen the distribution of its exports by connecting with other regional and global markets.

It also sought to discuss issues surrounding exports and craft practical solutions that can be implemented to catapult Zimbabwe’s exports.

In 2021 Zimbabwe shipped US$6, 04 billion worth of goods around the globe representing a 73, 4 percent spike from $3, 5 billion five years earlier in 2017.

Gold exports reached US$1, 7 billion in the year followed by nickel at US$1, 25 billion as the mining sector dominated exports. On the cropping side tobacco and cotton exports topped US$257, 3 million and US$85, 4 million respectively.

Major contributors on the horticulture front were macadamia which earned US$13, 8 million, citrus US$10, 9 million, leguminous vegetables US$4, 2 million and fresh flowers US$3, 2 million.

Zimbabwe’s exports to South Africa valued at US$2, 92 billion constituted 50 percent of the country’s exports while a 30 percent chunk of exports worth US$1, 74 billion were destined for the United Arab Emirates.

Mozambique was the country’s third major export destination as it took 8, 7 percent of the merchandise worth US$508, 64 million and China at US$256 million.

ZimTrade board chairman, Clara Mlambo, speaking at the conference said it was not a good idea for Zimbabwe to continue accruing its export earnings from a few commodities like minerals and tobacco but broaden the export basket to other sectors like manufacturing.

“When we look at our exports in Zimbabwe, the mining sector plays a big role dominating exports at 80 percent and the 14 percent comes from tobacco, which leaves six percent to horticulture, manufacturing products as well as services, so if mining sneezes Zimbabwe catches a cold if tobacco sneezes Zimbabwe catches a cold.

“So we should learn the importance of diversification but as a country, we should aim to have an export-led growth that comes from value addition and manufacturing, “said Mlambo.

Mlambo indicated that diversification route could easily be attained if the country takes the horticulture route.

She also acknowledged efforts that are being made to widen export destinations.

“UAE is now Zimbabwe’s second export market predominantly on the mineral side,” she said.

Foreign Affairs and International Trade Minister, Fredrick Shava, said through the Second Republic’s re-engagement mantra his ministry was working on opening new frontiers within the Gulf States and Asia at the same time strengthening ties with the rest of the international community.

He said this would facilitate local companies’ opportunity to diversify exports into more lucrative markets, thereby increasing the country’s export earnings.

“I am happy to inform the exporting community that we have deployed Trade Attaches to a number of countries which include the United Arab Emirates, Belgium, Brazil, Turkey, China, France, Ghana, the Democratic Republic of Congo, and India. Let us fully utilise the opportunity so provided to our exports and to engage potential partners and investors for our businesses to expand,” said Minister Shava.

He indicated that Zimbabwe had now submitted its tariff offers under the African Continental Free Trade Agreement (AfCFTA) and is now awaiting the technical verification by the AfCFTA Secretariat. He implored the exporters to focus on diversifying their exports into non-traditional African markets.

ZimTrade chief executive, Allan Majuru, acknowledged that depending on one market was not a good idea thus the need for broadening the network of export destinations.

“Our exports are in one basket because our key trading partner is South Africa. We have to look at ways to diversify our markets, and if something goes wrong with South Africa, we are doomed,” said Mr Majuru.

He said local exporters needed to be inventive and match the current global changing consumer behaviour where organic foods were now a priority further encouraging exporters to consider the value addition of some indigenous fruits given consumers growing affinity for organic and natural products.

“In terms of products, we have also seen the emergence of niche and unique products that continue to excite buyers across the world, most indigenous resources can be value added into products that meet this global requirement.

“We need to diversify our product range into indigenous products in order to increase our export revenue channels,” he said.

The 2022 exporters’ conference was a multi-stakeholder gathering with delegates drawn from the private sector, public sector, civil society, academia, development cooperation partners, and international experts, to proffer practical solutions that can be implemented to catapult Zimbabwe’s exports.

As of July 2022, the country’s total exports stood at around US$3, 3 billion and the predictions are that we will hit the US$ 7 billion mark in 2022-ebusinessweekly