Zim urges shift from raw materials to value-added exports

Foreign Affairs and International Trade Permanent Secretary, Ambassador Albert Chimbindi has expressed regret that the country’s exports are still mainly composed of primary products consisting of minerals and raw products.

Going forward, Amb Chimbindi said, focus should be on promoting the export of value-added products, especially where the country has a competitive edge.

Speaking at the Zimbabwe-United Arab Emirates (UAE) business forum hosted by ZimTrade in Harare, he said, “While these figures are impressive, it is however regrettable that these exports are still mainly composed of primary products consisting of minerals and raw products.”

He highlighted that many Zimbabwean companies have engaged with their counterparts in the UAE, establishing valuable business partnerships that have already led to increased exports from Zimbabwe to the UAE market, rising from US$1,7 billion in 2021 to US$1,9 billion in 2023.

Speaking at the same event, Ambassadorial Assistant Officer, UAE Embassy in Zimbabwe, Dr. Zakaria Adam Hassan said, “Our exports to the UAE have skyrocketed from US$96 million in 2014 to an impressive US$1,9 billion in 2023, with the country now on second position in terms of export market destination for Zimbabwe’s products.”

He said the remarkable growth in Zimbabwe’s exports is a testament to the quality and appeal of the country’s products, particularly in sectors such as horticulture, processed foods, leather and leather products, arts and crafts, and minerals.

“Our products have a significant mark,” said Dr Hassan.

According to ZimTrade, the UAE has become Zimbabwe’s second largest trading partner, and trade between the two countries has been growing steadily over the past decade.

This development aligns with Zimbabwe’s aspiration of becoming an upper-middle-income society by 2030 and trade is central to the achievement of this target.

Zimbabwe and the UAE enjoy a cordial relationship, with both nations committed to further strengthening their economic cooperation, specifically in the areas of trade, investment and tourism.

“The UAE has emerged as a pivotal and strategic trading partner for Zimbabwe, serving as a prime source market for investments.

“Both public and private sector entities in the UAE have consistently expressed confidence in Zimbabwe’s economic potential, trade prospects, and investment opportunities,” added Amb Chimbindi.

According to Dr Hassan, The UAE imports approximately US$3,9 billion worth of fruits and vegetables annually, with at least 50 percent re-exported to the Gulf Cooperation Council (GCC) countries.

“By forging partnerships with UAE businesses, we open doors to markets in Saudi Arabia, Qatar, Oman, Kuwait, and beyond,” said Dr Hassan.

Acknowledging their shared aspiration to deepen and expand the cooperation in trade, investment and development, Zimbabwe and the UAE have agreed to negotiate and sign a comprehensive economic partnership agreement (CEPA) to further enhance their economic ties.

“We expect that it will open avenues for investment and joint ventures in sectors such as Energy, Mining, Hospitality, Tourism, Agriculture and Infrastructure,” according to Amb Chimbindi.

The Permanent Secretary said Zimbabwe has its doors wide open, welcoming and facilitating direct engagements between businesses and government agencies from both countries.

This includes utilising the resources and support available through ZimTrade, the Zimbabwean Embassy in Abu Dhabi, the Consulate in Dubai, as well as the UAE Embassy located in Harare.

“We stand ready to support your business interests and provide any necessary assistance as you take advantage of the bountiful trade and investment opportunities available in Zimbabwe.

“Equally, Zimbabwe is keen to leverage on the UAE’s economic prowess and geographical advantage as a good entry point into the Gulf market,” added Amb Chimbindi.

He went on to encourage the attendees to engage with respective agencies present, as they will be able to provide detailed information on the diverse range of opportunities available for furthering economic cooperation between the two countries.

“May this event be a catalyst for enduring partnerships, robust trade collaborations, and remarkable success stories that will further solidify the bonds of friendship between Zimbabwean and UAE companies, taking full advantage of the excellent political relations between the two countries,” he said.-ebusinessweekly