‘Trade to move forward in 2021 despite Covid-19’

THE national trade and export development agency, ZimTrade says trade will move forward this year despite the existence of the Covid-19 pandemic as countries are learning to live with the disease.

“This new approach to the pandemic will largely see reduced disturbances to businesses in 2021 when compared to the first global wave of February-March 2020.

“In fact, most countries seem to be avoiding going the route of complete shutdown, which would see only essential services operating,” said ZimTrade.

For example, South Africa, which is Zimbabwe’s largest trading partner recently announced that some of the adjusted measures to curtail Covid-19 “will keep the economy open while strengthening measures to reduce transmission”.

The agency said the new lockdown measures in South Africa will see reduced business times for large importing businesses such as restaurants while most businesses will continue to operate as long as they adhere to all relevant health protocols and social distancing measures.

“The year 2021 will be an exciting one as indications are that most countries are keen on maintaining trade, which should translate to sustained opportunities for Zimbabwean enterprises.

“This means local companies ‘should not come to the party late’.

“For the better part of 2020, most companies around the world were fighting to keep their heads above the water as Covid-19 disrupted the conventional ways of doing business.”

However, ZimTrade said this year will focus on local companies regaining lost markets as well as improving capacities and competitiveness.

This improved market penetration will be achieved by coming up with strategies that seek to maximise on opportunities that have been created by the pandemic.

“There is also need to acknowledge that some markets will likely continue imposing strict Covid-19 measures, which will require a ‘business unusual’ approach for companies that are keen to continue exporting,” said ZimTrade.

The agency noted that such business unusual approaches should include diversifying export products and markets as well as improving on value addition.

“Riding on existing national instruments will be a major enabler for companies that seek to unlock new opportunities, with better support from the Government.

“Strengthened linkages between private and public sector in 2021 will help forge a stronger front on the export arena.

“Local businesses will need to take advantage of the National Development Strategy 1 (NDS1), launched by President Mnangagwa in November 2020, to unlock further export opportunities,” ZimTrade said.

NDS1 is a blueprint running from this year to 2025 seeking to achieve sustainable economic growth towards an upper middle income economy by 2030.

Considering the contribution of primary commodities to national exports, the Government has indicated that it will focus on value addition and beneficiation.

“For businesses that can plan ahead, the focus of NDS1 shows that investment will be concentrated on sectors that value-add national resources.

“Value addition will also allow local companies to earn more on export markets, whilst at the same time creating employment for the nation’s young people,” said ZimTrade.

The 2021 target set for manufacturing sector’s contribution to national exports under NDS1 is US$839,9 million, representing 16,9 percent of total exports.

Official data from the Zimbabwe National Statistics Agency (Zimstat) shows that manufactured exports between the period January-September 2020 stood at US$335,6 million.

“These targets set under NDS1 can be achieved by a concerted effort of private sector and Government agencies working ‘smart’ towards the global export goals,” ZimTrade said.-chronice.cl.zw