Au­gust ex­ports up 10 per­cent

Chronicle (Zimbabwe) - - Business Chronicle - Se­nior Busi­ness Reporter

THE coun­try’s ex­ports in Au­gust in­creased by an av­er­age 10 per­cent to $202,6 mil­lion from $183,7 mil­lion com­pared to the pre­vi­ous month, lat­est data from the Zim­babwe Na­tional Statis­tics Agency (Zim­stat) shows.

Al­though, the fig­ures are show­ing an im­prove­ment in the value of ex­ports in Au­gust, the coun­try still recorded a trade deficit as the value of im­ports dur­ing the pe­riod un­der re­view stood at $443,9 mil­lion.

Zim­stat in­di­cated that in Jan­uary the coun­try ex­ported goods worth $248,7 mil­lion be­fore the value de­clined to $209 mil­lion in Fe­bru­ary.

Be­tween March and April, the value of ex­ports stood at $166 mil­lion and $157,3 mil­lion re­spec­tively.

In May, Zim­babwe ex­ported $164,6 mil­lion worth of goods while in June the value went up to $176 mil­lion.

The agency also re­vealed that the value of im­ports since Jan­uary were higher than ex­ports.

The first month of the year recorded im­ports worth $394 mil­lion be­fore in­creas­ing to $427 mil­lion in Fe­bru­ary.

In March, im­ports rose to $477 mil­lion be­fore de­clin­ing to $356 mil­lion in April.

How­ever, the value of im­ported goods shot up in May to $408 mil­lion be­fore in­creas­ing again in June to $429,2 mil­lion.

In July the fig­ure went down to $394,2 mil­lion.

Since the lib­er­al­i­sa­tion of the econ­omy in Fe­bru­ary 2009, Zim­babwe has been grap­pling with a trade deficit as the coun­try con­tin­ued to ex­pe­ri­ence an in­flux of cheap im­ported prod­ucts en­ter­ing the coun­try mak­ing lo­cal in­dus­try un­com­pet­i­tive.

Against this back­ground, the Gov­ern­ment has come up with a num­ber of mea­sures to re­duce the trade deficit.

The Gov­ern­ment has pro­mul­gated Statu­tory In­stru­ment 64 of 2016, which re­moves sev­eral goods from the Open Gen­eral Im­port Li­cence.

The frame­work con­trols the level of im­ports by al­low­ing busi­nesses to im­port listed prod­ucts based on avail­abil­ity on the lo­cal mar­ket.

This means that where lo­cal in­dus­try has the ca­pac­ity to pro­duce and meet de­mand for listed prod­ucts, the goods may not be im­ported.

Ef­fec­tive first of March 2016, the Gov­ern­ment has also im­ple­mented the Con­sign­ment Based Con­for­mity As­sess­ment (CBCA) pro­gramme as a mea­sure of curb­ing the in­flux of sub­stan­dard and haz­ardous goods and cre­at­ing a level play­ing field for lo­cal in­dus­try. CBCA pro­gramme is reg­u­lated by Statu­tory In­stru­ment 132 of 2015. The new im­port reg­u­la­tion stip­u­lates that se­lected prod­ucts must be ver­i­fied for con­for­mity or com­pli­ance to stan­dards by the con­tracted con­for­mity as­sess­ment agent in the coun­try of ori­gin be­fore they can be im­ported into Zim­babwe. — @okazunga

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