Zim exports on the rise

exports recorded a 23,8 percent growth between January and April this year, compared to the same period last year.

During a time when other countries have been recording sharp declines in exports on account of the Covid-19 pandemic, Zimbabwe has been recording impressive growth.

This is testament to the successes of the National Development Strategy, launched last year by President Mnangagwa, which focuses on, among other things, promoting export products and export markets diversification.

According to latest figures released by the Zimbabwe National Statistics Agency (Zimstat) on the country’s trade performance between January and April 2021, export revenue shot up to billion up from billion recorded over the same period in 2020.

To put these figures into context, Zimbabwe’s total exports between 2019 and 2020 grew by only 1,7 percent.

Imports, on the other hand increased by 27,5 percent to billion between during the first four months of the year, from billion recorded in 2020.

Consequently, the trade deficit for the period under review stood at million which is a 43,79 percent increase when compared to the million deficit recorded last year.

While the main contributors to export revenue were minerals and alloys and unmanufactured tobacco, which accounted for 84,30 percent and 8,47 percent respectively, several other sectors recorded firm growth.

For example, clothing and textiles exports grew by 65,5 percent to million during the period under review, from million recorded last year.

The main products exported in this sector were not carded or uncombed cotton million) and men’s or boys’ suits, ensembles, jackets, blazers, trousers

million).

This growth follows an inward buyer mission organised by ZimTrade, the national trade development and promotion organisation, where a buyer from the clothing sector in Zambia met local clothing manufacturers to discuss supply of different clothing products to the market.

ZimTrade has been facilitating engagements between local clothing manufacturers with buyers in regional markets such as Botswana, Zambia, Malawi, Democratic Republic of Congo, and Mozambique.

Already, buyers in these markets have concluded that Zimbabwean clothing and textile products are of high quality and this is expected to sustain export growth if local manufacturers get it right on the pricing.

For local manufactures to improve the price competitiveness of their products, there is a need for financing partners to support them with capital funding because most of them are using antiquated machinery, which consumes high energy and are costly to maintain.

There is a need for manufacturers to leverage on the Government’s incentive put in place to reduce the cost of importing capital equipment.

Exports from the building and construction sector have also grown significantly by 34,1 percent from million between January and April to million during the same period in 2021.

Major contributors in the sector include wood sawn exports which jumped to

million in 2021 from million in 2020.

Worked monumental/building stone, mosaic cubes, granules and chippings exports bulged from million to

million during the first quarter of the year.

As new policy measures have been adopted to encourage local production as a response to imports, projections are that the sector might continue recording a positive export balance this year.

Increased production, coupled with participation at regional trade promotion events, will allow local companies to unlock more opportunities in the sector.

Already, buyers in countries like Botswana prefer building and construction products from Zimbabwe, which are known to be durable.

These buyers have indicated that Zimbabwean suppliers must ensure that they have the capacity to sustain the anticipated increased demand for locally produced building and construction products.

In addition, export revenue from the arts and crafts sector has also recorded significant growth of 43,8 percent from million in 2020 to million this year.

Exports of collections and collector’s pieces of zoological interest constituted 92 percent of all exports in this sector, just 9 percent being original sculptures and statuary.

The improved performance was in spite of the fact that the arts and craft sector was not declared an essential service provider under the lockdown restrictions in most countries.

One of the reasons behind this growth was the unlocking of new markets through increased engagements between local producers and buyers from across the world.

Last year, ZimTrade facilitated a German buyer’s visit to Zimbabwe to meet with local sculptors of life-sized recycled metal pieces.

Since then, local producers of the required pieces have been consolidating orders for Germany.

In addition, exports from the household furniture sector also increased by 29,1 percent from million to million.

Major exports from the sector were articles for plastic goods million); table, kitchen or household articles and parts thereof of iron or steel million), and electric water and space heaters, hair-dressing apparatus, irons million).

Other big movers under household and furniture exports were stoves, ranges, grates, cookers, which rose by 11 percent from million to million.

The leather sector recorded a marginal export revenue growth of 7,8 percent from

million in 2020 to million in 2021.

Another marginal mover was manufactured cigarettes exports which recorded a 3,79 percent increase from million to million.

ZimTrade conducted an Outward Seller Mission to Dubai this year and some cigarette and cigar companies took part in order to try and penetrate the Middle Eastern market.

Buyers from Dubai are interested in sourcing cigarettes and cigars from Zimbabwe and once orders start to move, the sector’s contribution to national exports will grow.

The position of Dubai as a gateway to the rest of Middle-East means local producers will be able to access the entire region through Dubai.

Although the overall exports grew, there are some sectors that recorded declines during the period under review.

The biggest loser was the aquaculture sector, whose exports declined significantly by 81,2 percent to million in 2021 from million in 2020.

The major contributor to the decline in exports was frozen fish, which dropped by 84.8 percent from million in 2020 to

million in 2021.

Live fish also dropped by 47,6 percent from million to million in 2021.

Exports from the livestock sector also declined by 76,5 percent from million to million in 2021.

Processed food exports declined by 53 percent to million from million in 2020.

Sugar exports went down significantly from million to million during the period under review.

Malt exports, on the other hand, increased from million in 2020 to

million this year, while pastry products exports grew from million to

million.

Current ZimTrade-led activities, such as the Malawi Solo Exhibition taking place from 12-14 July in Lilongwe, are expected to improve exports from the sector.

Considering the overall performance of the sector in 2020, projections are that processed foods exports will recover as the year progresses. In addition, exports of leaf tobacco went down 44,3 percent from million in 2020 to million in 2021. However, the opening of the tobacco season is expected result in a massive improvement in exports.