Zim trims trade deficit

ZIMBABWE’S trade deficit narrowed to US$151,1 million in May 2024, representing a 23,8 percent decrease from US$198,2 million recorded in April 2024 with South Africa and United Arab Emirates (UAE) continuing to be the top export destinations, official figures show.

Trade deficit occurs when a country’s value of imports is greater than that of exports in a given period. When the value of exports exceeds the value of imports, it implies a trade surplus.

Latest data from the Zimbabwe National Statistics Agency (ZimStat) also reflects that the country during the period under review, recorded 13,5 percent export increase to US$695 million from the April 2024 value of US$513,5 million.

“Zimbabwe’s goods trade deficit for May 2024 was US$151,1 million, a 23,8 percent decrease from the April 2024 deficit of US$198,2 million,” said ZimStat.

“Imports for the month totalled US$734,1 million, which was 3,2 percent (US$22,5 million) more than the April 2024 imports of US$711,7 million.”

The narrowing trade deficit comes at a time when Zimbabwe is becoming more integrated in global supply routes, with new markets presenting export opportunities for local products and services, ZimTrade chief executive officer, Mr Allan Majuru, has said.

“In fact, buyers across the world are now looking at Zimbabwe as a source market, thanks to the quality of local products relative to what other countries offer,” he wrote yesterday in his weekly column on our sister publication, The Sunday Mail.

“This growing appetite for Zimbabwean goods follows a robust campaign by President Mnangagwa to increase the visibility of local products in regional and international markets.

“With the current approach on economic diplomacy, several export promotion activities have been undertaken in recent years by the national trade development and promotion agency — ZimTrade.”

Mr Majuru said the export endeavours have boosted the good reputation that precedes the exportation of locally produced goods and an array of value-added services.

“Driven by the growing interest in these goods and services, Zimbabwe is unlocking new markets, in line with the target of diversifying export destinations as a response to challenges posed by over-dependence on a single market,” he added.

Recently the Buy Zimbabwe Campaign (BZC) commended the decrease in trade deficit between January and February 2024 saying the trend was a positive indicator for the economy.

BZC said Zimbabwe should come up with intentional programmes where people prefer locally produced goods and where companies in Zimbabwe look to substitute items that can be made locally and import those necessary.

In its latest report, ZimStat indicated that among the top 10 products exported in May 2024 were semi-manufactured gold, nickel mattes, and nickel ores and concentrates, which accounted for 42,5 percent, 12,6 percent and 7,0 percent of the total value of US$583 million, respectively.

Mineral fuels and mineral oil products, machinery and mechanical appliances, cereals and vehicles were among the top 10 imported products in May 2024. The products constituted 24,8 percent, 11,2 percent, 8,7 percent and 8,1 percent of the total import value of US$734,1 million, respectively.

A total of 43,9 percent of goods were exported to the UAE, followed by South Africa where 28,1 percent of goods were exported to and 29 percent went to Mozambique. The three countries accounted for around 81 percent of the total export value of US$583 million.

“Among the major source countries for imports in May 2024 were South Africa (41,4 percent), China (10,3 percent), Bahamas (7,7 percent) and Bahrain (7,4 percent),” said ZimStat.

“The four countries accounted for around 67 percent of the total import value of US$734,1 million,” said the statistics agency. – chrncile