Growth in exports exceeds expectations

THE country experienced a boom in exports in the first two months of the year, posting slightly over one billion United States dollars, exceeding expectations laid out in the National Export Strategy, which set a target of 10 percent annual growth in exports, the National Trade Development and promotion organisation, ZimTrade has said.

Zimtrade attributed the massive jump to President Mnangagwa’s multi-pronged approach to revive the economy and place Zimbabwe at the centre of supply chains in southern Africa and the rest of the continent.

According to ZimStat, the country’s exports stood at US$539,9 million in January representing a 25 percent increase compared to US$429 million recorded in the same period in 2023.

The total value of exported goods in February was US$644 million, a 19,3 percent increase from US$539,9 million reported in January 2024.

ZimTrade said the massive jump in export growth exceeds expectations laid out in the National Export Strategy, which set a target of 10 percent annual growth in exports.

“The boom in exports is on the back of President Mnangagwa’s multi-pronged approach to revive the economy,and place Zimbabwe at the centre of supply chains in Southern Africa and the rest of the continent.

“With a focus on diversifying export markets through an economic diplomacy approach, as well as diversifying export products through developing export capacities of small businesses and communities, the Government is unlocking the potential of Zimbabwe’s industries and resources,” said ZimTrade in its March newsletter.

The trade development organisation said apart from growing exports, Zimbabwe is also closing the trade gap, with figures showing a 25 percent decrease in January this year compared to the same period last year.

“Statistics show that although imports increased by nine percent to US$692,7 million from US$633,8 million in 2023, the trade deficit for the period under review dropped to US$152,8 million, from US$204,7 million.

“What is more intriguing when looking at export growth is the contribution of value-added products, which recorded a 103 percent increase, from US$20,7 million in January 2023 to US$42,2 million in January 2024.

“Further to this, the programme to diversify markets is showing a positive outlook as the country continues to open new markets, as well as strengthen its penetration into emerging markets.”

According to ZimTrade, exports to South Africa declined by 11 percent in January this year, from US$182,8 million to US$162,2 million and exports to the United Arab Emirates recovered by five percent to US$134,9 million in January this year, from US$128,1 million recorded last year.

Exports to China increased by 120 percent to US$87 million in January 2024, from US$39,4 million last year.

Exports to Indonesia grew to US$10,4 million, from US$3,8 million last year. Exports of processed foods increased by over 400 percent in January this year compared to the same period last year, from just around US$3,8 million to US$20,1 million.

The major contributor to the increase in exports in this sector was sugar, which increased from US$0,9 million to US$15,7 million.

The thrust going forward, is to create stronger linkages between local producers and buyers of other processed foods in the region, where demand has been on an increase in the past few years.

The country continues to make gains in markets such as Mozambique, where exports grew from US$16 million in January last year to US$52 million this year.

In Zambia, exports recorded a 50 percent growth, from around US$7,1 million to US$10,7 million.

“Although exports to Zambia recorded growth, there are many untapped export opportunities in the market, in sectors such as processed foods, clothing and textiles, protective clothing, agriculture, mining, construction and engineering and services.

“To ensure local businesses take optimum advantage of these opportunities, ZimTrade is facilitating the participation of exporters at two premium trade promotion events in Zambia,” they said.

“The Agritech Expo Zambia will take place from 18-20 April, and the Zambia Agricultural and Commercial Show is scheduled for 31 July – 5 August.”-chonicle