Zim, UK trade surges
TRADE cooperation in goods and services between Zimbabwe and the United Kingdom registered a nearly US$185 million increase in 2023, compared to 2022, as current total trade exchanges between the two countries stand at US $595 million, the UK’s Department for Business and Trade has reported.
Investment statistics also show that there was an increase in foreign direct investment from the UK in Zimbabwe to US$68 million or 145,5 percent higher in 2021 than in 2020.
The US$185 million trade increase and US$68 million investment increase came as the two countries are enhancing bilateral cordiality following years of political acrimony since 2002, as Government now focuses on economic diplomacy as an anchor for re-engagement.
The data presented was for the 12 months ending November 2023 and Zimbabwe’s top five exports to the UK included beverages and tobacco at US$135 million, vegetables and fruit at US$5,8 million, jewellery at US$760 000, coffee, tea and cocoa at US$600 000 and works of art at US$190 000.
From the UK, Zimbabwe imported specialised machinery, telecommunications and sound equipment among others.
Read the report: “Total UK exports to Zimbabwe amounted to US$258 million in the four quarters to the end of 2023 (an increase of 86,2 percent or US $120 million in current prices, compared to the four quarters to the end of 2022). Total UK imports from Zimbabwe amounted to US$338 million in the four quarters to the end of 2023 (an increase of 23.1 percent or US$63 million in current prices, compared to the four quarters to the end of 2022).”
The normalisation of relations between Zimbabwe and the UK happens at a time British Conservative politician and chairman of the Westminster Africa Business Group Mr Laurence Robertson met President Mnangagwa to discuss trade and investment opportunities in the country.
British Ambassador to Zimbabwe Mr Pete Vowles yesterday said it was “very good” Mr Robertson had lead a business delegation to Harare “to strengthen business links between the UK and Africa.”
In explaining what hindered more trade exchanges, the UK noted it was “affected by lockdown and other measures during the Covid-19 pandemic.”
Economists and trade investment analysts yesterday called for strategic trade cooperation highlighting that while there is a projected lower agricultural output in 2024, Government should enhance the competitiveness and productivity of the economy in key sectors like agriculture to boost trade.
Economist Dr Prosper Chitambara said Zimbabwe should avoid having a trade deficit with any country but work towards refining key sectors.
“While we are expecting both agricultural and production output to be lower, that could affect trade. However, we need to enhance the competitiveness and productivity of our economy in key sectors, agriculture being one of them.
“That is done through key enablers to bring business through infrastructure financing, energy and enhance productivity of producers of farmers. By doing so it means we benefit from trade relations. We do not want a deficit with any country but rather a favourable trade balance,” said Dr Chitambara.
Economist Mr Brains Muchemwa underscored the need for Government to engage in strategic trade with all countries but in favour of Zimbabwe.