Zimbabwe suffers shortages as SA seizes up

The Zimbabwean economy is beginning to feel the effects of last week’s unrest in SA, with a number of businesses fretting over the shortages of basic commodities and critical raw materials.

SA is Zimbabwe’s biggest trading partner as the country imports goods worth about $2bn (almost R29bn) annually from its southern neighbour.

The disruptions in SA that led to the closure of the N3 highway have already affected supplies of landlocked Zimbabwe’s imports, the bulk of which come through the port of Durban. Experts say the cost to Zimbabwean businesses will be dire and will be felt for weeks to come.

On Friday, the Confederation of Zimbabwe Industries (CZI), which comprises the country’s largest manufacturers, said factories have been “exposed by developments in SA”.

“Zimbabwe sources 58% of its raw materials from SA,” said the CZI.

Figures from the CZI show that during the fourth quarter of 2020, 44% of Zimbabwe’s exports were destined for SA.

Busisa Moyo, an industrialist and chair of the Zimbabwe Investment Development Agency, said it is time that Zimbabwe thinks of alternative trade routes and lessens its dependence on SA. “We have to get serious about SA dependency. Dependency on SA is a challenge and could present regional contagion,” Moyo said.

Many of Zimbabwe’s supply chains from SA are closed, he said. The CZI has already received notification from suppliers based in Durban and other parts of SA that they are unable to move raw materials.

“This is coming on the back of Covid-19, where we were trying to recover the lost ground in 2020. So this just exacerbates the economic situation.

“Zambia is probably in the same situation. Malawi and other surrounding countries as well,” he said.

A recent CZI report says up to 80% of local businesses in agriculture and horticulture import their supplies from SA.

Zimbabwean economist Brian Kagoro said the entire Southern African Development Community (Sadc) region will be affected.

“There is a third aspect, which is what is being illegally transacted during this time of chaos and what opportunities are being created for criminal networks and circumventing the accountability of the state for both SA and Sadc,” he said.