Trade deficit narrows to US$50 million in April

Zimbabwe’s trade deficit for the month of April 2022, narrowed to US$49,9 million from US$156 million.
This came as the value of monthly exports increased marginally in the month under review while the value of imports went down significantly in the same month.

According to data released by the Zimbabwe National Statistics Agency (ZIMSTAT), the value of total exports in April 2022 was US$587 million, signifying a marginal 5,39 percent

gain from total export earnings of US$557 million in March this year.

“During the same period, imports decreased by 10,66 percent to US$637 million from US$713 million in March 2022,” said ZIMSTAT.

The country saw exports of food and beverages rise to US$19,7 million in April from US$9,8 million a month earlier, with transport equipment exports also increasing to US$2,84 million from US$1,2 million in March. These two contributed to the rise in exports during the month under review.

“Consequently, there was a trade deficit of US$49,9 million in April 2022, compared to US$158 million in March 2022,” ZIMSTAT said.

During the month under review, minerals constituted 92,4 percent of exported goods, with manufacturing accounting for 6,8 percent of April’s exports.

Economist Prof Tony Hawkins said, “The country needs to quickly adjust its exports and make them more valuable through value addition. Yes, talk has been there but I think we need to take action as a country and work towards a common goal to earn more from these minerals.”

Leading exports in April were, semi manufactured gold (30,1 percent), nickel mattes including platinum group of minerals (PGMs) (22,8 percent), nickel ores and concentrates (14,7 percent), tobacco (11,5 percent), industrial diamonds (5,0 percent), ferro-chromium (4,7 percent).

“During the month of April 2022, the country exported 2 963 kilogrammes of semi manufactured gold valued at US$176,9 million, compared to 2 200 kilogrammes valued at US$135,5 million in March 2022.

In the same month of April 2022, the country exported 1,150.1 tonnes of nickel mattes valued at US$133,9 million, compared to 1,009.5 tonnes valued at US$110,2 million in March 2022,” ZIMSTAT said.

Trade specialist Miriam Kashonga said, “It is a good thing that the country is getting to work around its trade deficit, and thanks to global commodity prices that we have gotten to earn so much.

Unfortunately, other commodities like cooking oil are also seeing an increase in price which makes it harder to see the benefits that our minerals are giving us.”

According to Zimstat, the country’s major imports remained mineral fuels and mineral oil products which stood at 22,1 percent in April 2022, compared to 17,1 percent in March This was followed by machinery and equipment at 13,1 percent in April 2022.

Other imports in April 2022 included vehicles (8,3 percent), electrical machinery (4,9 percent), plastics (4,5 percent), cereals mostly rice (3,6 percent), animal and vegetable oils and fats (2,8 percent), pharmaceuticals (2,7 percent), paper and paper products (1,9 percent), and fertilisers (1,6 percent).

Notably, major imports were aggregated to reach 91,5 percent in April 2022. Cereal imports including maize increased from 1,7 percent in March 2022 to 3,6 percent in April Rice, which makes the bulk of cereal imports constituted 1,3 percent in March 2022 compared to 2,5 percent in April, 2022.

In terms of destinations, in the period under review, Zimbabwe exported goods and services worth US$238 million to South Africa but made imports worth US$279 million from the neighbouring country, resulting in a trade deficit of US$41 million.-The Herald