ZimTrade to intensify market scan into Middle-East

20 Feb, 2023 - 00:02 0 Views
ZimTrade to intensify market scan into Middle-East

eBusiness Weekly

Business Writer

ZIMTRADE says it will be intensifying initiatives directed at growing Zimbabwe’s exports into the Middle East as it moves to enhance the country’s exports in the region.

The drive is in line with the dictates of the National Trade Policy (2019-2023), which is premised on growing the country’s exports through product and market diversification.

As such, the trade development and promotion body has hinted at conducting a market survey in the Middle East to improve the understanding of the market, identify unfilled export opportunities and create trade integrations.

The scheduled market scan comes after successful ZimTrade engagements with potential businesses in Tehran, Iran earlier this month on the sidelines of the Joint Permanent Commission on Cooperation between Zimbabwe.

At the convention, ZimTrade and Iran’s Trade promotion Organisation (ITPO) inked an agreement aimed at improving trade relations and economic cooperation.

A market scan to determine export opportunities for Zimbabwean businesses will also focus on Saudi Arabia, where a survey will be conducted from 27 February to 3 March 2023.

The drive is set to establish specific market requirements, including production standards that will enable local businesses to increase the visibility of their products in the market.

According to ZimTrade, Saudi Arabia is a strategic market that can be used as a gateway to other markets in the Middle East such as Yemen and Oman.

In 2021 Saudi Arabia imported goods worth US$2, 62 million from Zimbabwe while it exported merchandise worth US$2, 05 million to Zimbabwe.

On the other hand, Iran’s imports from Zimbabwe reached US$6, 43 million in 2018.

These figures, however, remain negligible compared to Zimbabwe’s trade with United Arab Emirates (UAE) a regional counterpart to the two countries where local exports increased to US$1, 96 billion between January-November 2022 from US$1, 47 billion in 2021.

Outward missions have in recent years played a significant role in accelerating the trade trajectory, significantly shaping the Zimbabwean exports outlook into the region.

Mechanisms have already been crafted to integrate local companies with destination buyers to foster business relationships that lead to increased exports.

According to the recent Monetary Policy Statement by the RBZ, Zimbabwe’s cumulative export earnings closed the year at US$7, 42 billion which is a 16, 5 percent growth from US$6, 37 billion realised during the same period in 2021.

However, the mining sector continues to dominate the total export earnings accounting for 75, 8 percent of the total export earnings in 2022.

 “This shows the underlying need for diversification and broadening of the export base,” said Dr John Mangudya, the RBZ Governor in the Monetary Policy Statement.

Although agriculture exports retreated 14, 5 percent, manufacturing and horticulture exports grew by 15, 5, and 5 percent respectively.

ZimTrade chief executive officer, Allan Majuru indicated that his organisation will be conducting a market scan in the Middle East to explore more opportunities for local products with the goal of achieving continued local export growth.

“The focus on Saudi Arabia complements the Government’s economic diplomacy agenda, which is unlocking value from Zimbabwe’s political relations with the rest of the world.

“Zimbabwe already enjoys favourable political relations with Saudi Arabia and we want to establish avenues that will make it easy for local companies to leverage the relations as they increase exports into the country.

“The need to create strong synergies between local businesses and buyers in non-traditional markets is in line with the National Export Strategy, which seeks to diversify Zimbabwe’s export markets,” said Mr Majuru.

According to the trade map, Saudi Arabia’s import bill grew to US$152 billion in 2021 from around US$127 billion in 2017.

Generally, Saudi Arabia is a dry country and home to high consumers of fruits, vegetables, presenting notable opportunities for Zimbabwean farmers.

The horticultural produce market offers viable options for Zimbabwe to increase exports to Saudi Arabia, whose total import bill of horticultural produces amounted to US$2, 7 billion in 2021, according to the trade map.

Some of these products are already finding their way indirectly through intermediary markets such as the Netherlands but Zimbabwe stands to benefit more if it exports directly to the market.

Low-hanging export options available for exploitation by farmers and local businesses in the Saudi market include oranges, grapes, pears, avocados, potatoes, shelled chickpeas, guavas, mangoes, stone fruits, tomatoes, strawberries, and fresh cut roses and buds.

Other products that have potential markets in Saudi Arabia are locally produced essential oils that are used in aromatherapy such as rosemary, peppermint, and sweet orange oils.

There is also potential demand for Zimbabwe’s known quality processed foods such as cordials, biscuits, sweets, and snacks.

In its monthly report, ZimTrade alluded that, Zimbabwe will be accelerating activities to foster trade and broadening the availability of its products to different markets like Malaysia and Egypt.

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