Trade defies Covid-19 headwinds
DESPITE the fallout of the coronavirus pandemic, the country still experienced remarkable growth in exports and kept its import bill steady in the first 11 months of last year, latest data from the Zimbabwe National Statistics Agency (Zimstat) shows.
Exports in the period rose to US$3,9 billion compared to US$3,79 billion in the same period a year earlier.
The import bill in the same period stood at US$4,48 billion against US$4,37 billion in 2019. There was marked growth in exports during the second half of the year, which coincided with reopening of global economies and removal of travel restrictions, as total exports in the July to November period amounted to US$2 billion, which was more than the US$1,8 billion realised during the first half of the year.
More exports are traditionally recorded during the second half of the year. In 2019, exports for the January to June period were US$1,79 billion, while the five-month period to November saw shipments rising to US$1,99 billion.
Top export earners last year were nickel ores and concentrates that brought in US$547 million, tobacco (US$639 million), industrial diamonds (US$114 million), semi-manufactured gold (US$876 million), platinum unwrought or in powder form (US$121 million), ferro-chromium (US$135 million) and nickel mattes (US$836 million).
There were also significant contributions from exports of crocodile skins (US$19 million), ginned cotton in staple (US$21,8 million), black tea (US$15 million), cane sugar (US$35 million) and cigarettes (US$39 million).
On the import side, the average monthly import bill for the year was US$408 million, although the last five months, which coincided with the introduction of the foreign currency auction system that availed more foreign currency to the productive sector, had an average monthly import bill of US$441 million.
Top imports for the 11 months included maize (US$284 million), crude soya bean (US$115 million), electricity (US$140 million), diesel (US$358 million) and petrol (US$165 million).
Overall, the country recorded a trade deficit of US$580 million for the period under review, which is the same as the trade deficit recorded in the comparative period in 2019.
Policymakers believe there is still room to
reduce foreign currency outflows through import substitution, especially for goods that can ordinarily be produced on the local market.
Exports are forecast to continue growing as the country is yet to reach peak export figures
that were last realised in 1996.
According to global economic data firm Trading Economics, Zimbabwe’s exports averaged US$497,6 million from 1993 until 2020, reaching an all-time high of US$2,4 billion in December 1996 and a record low of US$143,87
million in October 2011. Local exporters are presently scouting for new markets.
“If you look at our supply window to Europe and the Middle East, we have a competitive advantage as Zimbabwe, so we need to take advantage of that. But also to expand into the
region,” said ZimTrade chief executive Allan Majuru in a recent interview.
With the Zimbabwe dollar stabilising at around $82 to the US dollar, it makes the country’s exports competitive on international markets.