eBusiness Weekly
Business Writer
Zimbabwe’s import bill for the month of December 2021, was the highest monthly bill in five years, according to latest statistics released by the Zimbabwe National Statistics Agency (ZIMSTAT).
During the five-year period, monthly imports were all below the $771 million import bill for the month of December 2021.
The second-highest since January 2017 is the $713 million import bill for the month of October 2021.
Analysts said the record import bill demonstrates the country’s insatiable appetite for imported products.
“Even as export earnings are growing, and the country had a record US$9,7 billion in foreign currency receipts, much of it is heading out through imports leaving the country with no foreign currency reserves,” said Walter Mandeya an analyst with Trigrams Investments.
“The import bill explains why the country had a runaway parallel market exchange rate in December at a time we all expected rates to cool off in line with the annual shutdown of factories,” Mandeya said.
He said the increased appetite to import came at a time the foreign currency auction system was only conducted twice in December as opposed to the usual four times.
“That explains why the rate was running on the black market. It was increased demand with no supplies from the auction system.”
Surprisingly, the import bill grew at a time the world was experiencing restrictions in the supply chain.
Some of the imported products that reached their five year record highs include both brown rice and broken rice with the bill amounting to a record US$3,2 million and US$16,9 million respectively.
Zimbabwe does not produce any significant amounts of rice but has over the years witnessed increased consumption of the product as local diet has significantly shifted from the staple maize.
Imports of soya beans whether or not broken also reached a record high of US$7,8 million during the period under review.
A similar five-year high was also recorded for crude soya bean oil, whether or not degummed with the import bill reaching US$25,8 million. The previous high in five years of US$25,1 million was also recorded last year in October.
Zimbabwe has over the years failed to produce its own soyabean, a key ingredient for cooking oil.
The country’s appetite for imported products was so huge that even sauces, mixed condiments, and seasoning were also at a five-year monthly record of US$2,9 million.
Imports of other necessities were also high with imports of kerosene-type jet fuel, which had topped at US$4 million per month in the last five years probably the biggest mover with the import bill jumping to US$29,8 million.
The import bill for medicaments of mixed or unmixed in measured doses for retail sale at US$21 million was also at its highest since August 2018.
The import bill for mixtures of ammonium nitrate with inorganic non-fertilising substances which had only reached US$6,8 million prior to December 2021, almost doubled to US$12,4 million during the month.
Other imports that reached record levels by value in December include combined imports of herbicides, anti-sprouting products, and plant growth regulators in containers.
