eBusiness Weekly
Business Writer
Zimbabwe economy has exhibited resilience against the adverse impact of Covid-19 with exports growing by 2,7 percent in 2020, dominated by primary commodities, to US$4,39 billion.
While raw commodities continue to dominate the exports portfolio, emphasising the need to diversify through value addition, the country is beginning to tap into high value earnings in key sectors.
Official statistics indicate mineral exports stood at US$3,210 billion during the period under review, contributing 73 percent to total exports. Top mineral exports were nickel mattes (US$985 million), gold (US$982 million), nickel ores and concentrates (US$612 million), diamonds (US$141 million), ferro alloys (US$140 million) and platinum (US$134 million).
The January-December 2020 mineral export performance increased by 7,47 percent when compared to the exports in 2019.
On a positive note, ZimTrade said non-primary commodities’ contribution was beginning to grow and hopes were high that more high value earnings could be attained going forward. For instance, processed food exports increased by 17,96 percent to US$115 million from US$98 million in 2019.
Top exported products include sugar (US$76 million), fruit juices (US$5,6 million) and pastry products (US$3,7 million).
“One of the reasons behind growth of processed foods is the adoption of latest technologies that has improved production efficiencies in the sector,” it said.
There has also been improved access to export markets and linkages with buyers as a result of trade facilitation activities undertaken by ZimTrade.
Players in the sector have also been adopting requirements that are stipulated under international standards and accreditations on food safety and traceability, which in turn has enhanced the quality of Zimbabwean products, noted the agency.
It said for those seeking to venture into export business, the processed foods sector could be a low-hanging fruit considering steady growth over the past few years.
This is despite the World Trade Organisation (WTO) projection of between 13 to 32 percent drop in 2020 exports based on the Covid-19 pandemic disruption to normal economic activity. Against this background, demand in export markets across sectors went down and projections were that developing economies like Zimbabwe would likely face negative consequences to both economy and trade.
ZimTrade said in the face of such a negative projection, it was encouraging to note that Zimbabwean exports last year registered a positive growth.
The country’s trade development and promotion agency, said the positive gains indicate that local firms are in a position to perform far better if the environment is enabling.
“According to recent statistics published by Zimstat, Zimbabwe’s exports grew by 2,7 percent between January-December 2020 compared to the previous year,” said the agency.
“Local companies were able to sustain exports regardless of the challenges to of production and movement of goods that hit almost all countries across the world.
“In terms of monitory value, the nation’s exports last year stood at US$4,39 billion, up from US4, 28 billion recorded in the same period in 2019,” said ZimTrade.
While the figure falls short of the 10 percent export growth set under the National Export Strategy, the agency said the positive gain was commendable.
“Given the contribution of the mineral sector to the economy, there is need to enhance investments towards beneficiation and value-addition in line with the aspects raised under the National Development Strategy 1 launched last year by President Mnangagwa,” said ZimTrade.
“Achieving high performances and producing high-end value-added mineral products will drive the nation’s progress towards Vision 2030.”
Another growth was registered by manufactured tobacco, whose total exports increased from 1,06 percent in 2019 to 1,22 percent in 2020 with the absolute values being US$45 million to US$54 million for 2019 and 2020 respectively.
The horticulture sector, which is amongst the top four foreign currency earners, registered a 13,5 percent decline from US$68,8 million in 2019 to US$59,5million in 2020.
Major exports comprised of peas, citrus fruits, berries, and flowers, with the major importing countries being Netherlands, United Kingdom, Spain, Portugal, France, and Germany.
“When looking at the unfolding of events in the past year, most traditional markets for Zimbabwe’s horticultural produces adopted lockdowns and the result was a sharp drop in demand for exotic produces – including Zimbabwe-grown fresh produces.
“With the short lifespan of horticultural produces, some farmers were forced to destroy their produces as they had no market to sale,” ZimTrade said.
In other cases, local exporters saw disruptions in the movement of goods across borders as some markets imposed a ban on non-strategic and non-essential commodities.
The agency said there is, however, potential to boost exports of horticulture through focusing on superfoods produces– high protein and low calories – as demand has been growing in most international markets.
“Currently, as part of its trade facilitation activities, ZimTrade is engaging buyers in United Arab Emirates and Bahrain who have expressed interest to source from Zimbabwe if farmers are able to meet demand and have competitive prices.
“The country is also in the process of establishing a citrus protocol with China, which is expected to ease and improve exports to the Asian country,” it said.
Other sectors that registered a decline include clothing and textile, arts and crafts and fishery. Clothing and textile sector registered 29 percent decline from US$61,9 million in 2019 to US$44 million in 2020, while exports from arts and crafts sector fell by 49,5 percent from US$10,4 million in 2019 to US$5,3 million in 2020.
