Vast business opportunities in Belarus
Zimbabwe’s thrust to unlock economic benefits from its foreign relations continues to bear fruit, with more countries opening new avenues to do business with Harare.
THIS follows spirited campaigns by President Mnangagwa to court investors around the world, in line with the economic diplomacy agenda. Earlier this month, the President led a business and Government delegation to Botswana and Dubai, where the need to strengthen economic ties was emphasised.
The latest venture, in terms of unlocking economic benefits from foreign relations, has been with Belarus, a country that has a lot to offer.
The strengthened engagements with Belarus, which have culminated in setting up of a Joint Permanent Commission on Cooperation (JPCC), with the first one being held in Harare last week, is an indication of the commitment by President Mnangagwa’s Second Republic to be a friend to all and an enemy to none.
The JPCC will be a mechanism to strengthen bilateral engagements in areas such as trade and investment, agriculture, mining, tourism and transport.
Engagements between Zimbabwe and Belarus are not only expected to deal with commitments at Government level but are also expected to open opportunities for the private sector in the two countries.
A Zimbabwe-Belarus Business Forum, held on the sidelines of the JPCC, exposed local industries to key opportunities they can tap into, which include export of horticultural produce, essential oils, tobacco, tea and coffee and minerals.
Belarus economy and opportunities
With a population of around 9,2 million, according to the World Bank, Belarus has a gross domestic product of US$72,8 billion.
It has a strong manufacturing sector that local businesses can supply with raw materials.
Figures from Trade Map show that total imports in Belarus have been growing in the past few years, from US$30,3 billion in 2015 to US$38,4 billion in 2018 and to US$41,8 billion in 2021.
The bulk of the imports have been vehicles, nuclear reactors, boilers, machinery and mechanical appliances, electrical machinery and equipment, and plastics and their particles.
For local companies, particularly small businesses, there is a huge market for knitted or crocheted fabrics, and the imports have been growing from US$26,3 million in 2015 to US$145,5 million in 2021 and to US$197,5 million in 2022.
Currently, major suppliers of knitted or crocheted fabrics to Belarus are Türkiye, China and Russia.
There is also a lucrative market for edible fruit and nuts, with imports of US$535,3 million recorded in 2021.
Major products in demand include apples, pears, quinces, citrus fruits, fresh berries (strawberries, blueberries, blackberries and raspberries), stone fruits (apricots, cherries, peaches, nectarines and plums), grapes and dried nuts
Zimbabwe is already exporting this produce to Europe.
Belarus offers opportunities for local exporters looking to expand their European market.
Although the country is not a member of the European Union, existing supply routes and partnerships can be used to export to the market.
The market for essential oils and resinoids has also been growing in Belarus, with figures showing imports of US$206,6 million in 2015, US$300,6 million in 2018 and US$319,4
million in 2021.
The growth is being pushed by expanding demand for beauty or make-up preparations and preparations for skin care; mixtures of odoriferous substances; and perfumes and toilet waters.
Also in demand are preparations for oral or dental hygiene; preparations for use on the hair; and shaving preparations, including pre-shave and aftershave products, as well as personal deodorants.
This niche but highly lucrative space is one area that local businesses, especially small businesses, can tap into, riding on unique natural endowments such as baobab, mongongo and marula oils.
Zimbabwe is also home to several natural and organic herbs that can be used in the production of essential herbs.
Figures show that imports of paper and paperboard in Belarus reached US$611,9 million in 2021, up from US$493,9 million the previous year.
Currently, major suppliers are Russia, Poland, Ukraine, Germany, Lithuania and China.
Apart from exporting to Belarus, there are also opportunities for technology and skills transfer, as the country is big on machinery production.
Its economy is driven by industry and agro-processing, especially manufacturing of tractors and other farm machinery.
With easy access to the rest of the Southern African region, Belarus offers opportunities for Zimbabwe to develop its vehicle manufacturing sector, targeting the SADC market.
The starting point is probably assembly, while the country develops capacity to manufacture heavy machinery and tractors.
Although Belarus relies heavily on imported oil, it has a developed chemical industry producing fertilisers and other products.
In addition, it has a well-developed food processing industry, producing beverages, tobacco and other food items.
These areas are some of the key industries for Zimbabwe, and stronger linkages between industry players in the two countries will boost the competitiveness of local exporters.
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