Re-engagement boon for exports

Zimbabwe’s trade development and promotion organisation, ZimTrade, says the
country’s re-engagement agenda coupled with trade initiatives driven by related
institutions and stakeholders, has created a promising outlook for the country’s exports
this year.

Since coming into power of the Second Republic in November 2017 under President
Mnangagwa, the Government has embarked on a re-engagement drive with the global
community to thaw relations.

The Government has also adopted transformative policies such as the “Zimbabwe is open
for business” mantra with a view to attract trade and investment from across the world
to boost exports.

ZimTrade is seeking to grow exports from US$7 billion this year to US$14 billion by 2030
as espoused in the National Development Strategy 1 (NDS 1).

In its newsletter for January 2023, ZimTrade said this is in sync with the Zimbabwe
National Trade Policy and the National Strategy (2019-2023) that seeks to grow exports
through market and product diversification that President Mnangagwa has launched.

“This has been paying off as statistics show that exports have seen a 9,2 percent increase
from US$5,4 billion in January to November 2021 to US$5,9 billion in the same period in
2022.

“This boost in exports can be attributed to the various efforts made by the Government,
along with related agencies like ZimTrade, which are facilitating export development and
export promotional activities such as outward missions and trade-fair participation,”
said the agency.

These activities, the agency said, have raised the profile of Zimbabwean products and
generated interest from markets around the world.

“With the present positive trend in export growth, businesses across Zimbabwe can take
advantage and expand their products into traditional and non-traditional markets.

“Already, the need to diversify export markets has seen an acceleration of trade
promotion activities to emerging market, such as a series of Business Forums held in
2022 between Zimbabwean companies and potential partners from countries such as
United Arab Emirates (UAE), Rwanda, Malawi, and Democratic Republic of Congo,” said
ZimTrade.

“Results from these activities show that Zimbabwean companies are benefiting through
export growth. For example, exports to UAE increased from US$1,47 billion between
January and November 2021 to US$1,96 billion during the same period in 2022.”

With the continued demand for organic and fresh produce in countries like Europe and
the Middle East, it is hoped there is a great potential for Zimbabwe to expand their
exports, with a high likelihood of surpassing the US$7 billion-dollar mark this year.

Continued interest in the market for Zimbabwean goods, has encouraged further market
surveys in the Middle-East. This year, ZimTrade will be conducting a market scan in
Saudi Arabia, to explore more export opportunities for local products in the Middle-East.

And with a goal of achieving continued export growth, Zimbabwe will be accelerating
activities to foster trade and broaden the availability of its products to different markets
like China, Malaysia and Egypt, among others.

For example, China, as a net importer and boasting a sizable population is becoming one
of Zimbabwe’s top export destinations, already ranking as the third-largest exporter of
Zimbabwean goods.

In 2022, a citrus protocol was signed between the two countries, giving local companies
access to export citrus to China, one of the biggest consumers of citrus products.
This year, Zimbabwe is taking advantage of this relationship and working to maximise
this opening and capitalise on mutually beneficial trade opportunities.

“Given the level of re-engagement drive that the Government has embarked on under
President Mnangagwa’s leadership, it is unanimous that this positive growth trajectory
in exports will continue in the foreseeable future.

“The Government and its agencies like ZimTrade, have been pragmatic in their approach
to promote trade with the rest of the world,” said an economist Ms Gertrude
Machemedze in an interview yesterday.

Meanwhile, in conjunction with partners such as the Zimbabwe Investment and
Development Agency, and Zimbabwe Tourism Authority, ZimTrade will be organising a
Zimbabwe-China Business Forum which would focus on promoting the country’s trade,
tourism, and investment opportunities.

“As Africa is also a viable export destination and with the launch of the African
Continental Free Trade Area (AfCFTA), businesses now have easier access to nontraditional markets in the continent that are worth exploring.
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“At the recently concluded World Economic Forum in Davos, Switzerland, the AfCFTA
secretary general, His Excellence Wamkele Mene, highlighted four key sectors that offer
high-potential opportunities: automotive industry, agriculture, and agro-processing,
pharmaceuticals, and transportation and logistics.

“This year, the exhibition is promising to be even better as benefits to participating
companies will have spin-off benefits to more players back in Zimbabwe, as demand for
fruits and vegetables is growing.”

According to the TradeMap, trade of horticultural produce grew from US$251 billion in
2017 to US$298 billion in 2021.

In 2021, Europe accounted for US$123 billion, Asia US$88 billion and United States of
America US$44 billion.

“As evidenced above, the European market for fresh produce is enormous and provides a
stable consumption base.

“With Zimbabwe’s climatic advantage, this presents a unique opportunity for local
businesses to target Europe as the leading destination for horticultural produce.

“International buyers are actively seeking reliable suppliers from around the globe to
ensure an uninterrupted supply of horticultural products in the market.”

Presently, European Union (EU) countries are on a drive to develop new business
partnerships in Africa to increase total trade and investment between Africa and the EU.
ZimTrade will leverage this drive on the country’s economic diplomacy mantra to
diversify and grow exports in the EU by linking producers with importers of different
products.
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“Local demand for goods and services within these sectors is currently being met
through relatively high import costs, making them ideal for businesses to take advantage
of by participating in regional value chains.

“As one of the world’s largest free trade areas, the AfCFTA provides a great opportunity
for businesses to capitalize on the continent’s growing sectors,” it said.

The agency said this year more initiatives will be channelled towards increasing exports
in regions such as eastern and western Africa.

For example, Nigeria is one of the most populous countries in Africa offering massive
opportunities for local companies to increase their products in the market.-The Herald