Concern over dwindling exports
LIVINGSTONE MARUFU
Government is concerned over dwindling exports amid calls for local companies to value-add various export products.
The call by Finance and Economic Development minister Mthuli Ncube comes as Zimbabwe has also recorded a decline in export products and markets.
“There is a declining diversity for Zimbabwe as in 1995 about 90% of our exports went to 28 countries and in 2020, 90% of our exports went to five countries,” Ncube said.
“Also, export products fell to 1353 in 2020 from 2840 in 1995 and this indicates that we are vulnerable to shocks.”
He said there is a huge decline in manufacturing and agriculture exports while there is an overreliance on minerals which is not good for the country compared to others “as far as diversification of exports is concerned.”
Last year, Zimbabwe recorded its highest ever foreign currency receipts, boosted by strong commodity prices and increase in international remittances, according to the Reserve Bank of Zimbabwe.
Minerals constituted about 83% of foreign receipts after exports grew by 38,4% to just over US$5bn from US$3.7bn in 2020.
Industry and Commerce minister Sekai Nzenza said it was also important to promote competitiveness of local products following the launch of the African Continental Free Trade Area .
She said Zimbabwe is now focusing on accelerating export diversification to escape potential price shocks of commodities.
“The ministry will also be working with the private sector towards localisation of more value chains and promote and showcase the higher value Zimbabwean brands under the “Made in Zimbabwe and Buy Zimbabwe `mantra,” Nzenza said.
ZimTrade CEO, Allan Majuru said the over-dependence on exporting minerals and other primary commodities over the past years, has effectively put the country’s eggs in one basket.
“The long and short of it is that there is a need to diversify exports, paying attention to value-added exports,”Majuru said.
He said the National Development Strategy gives attention to value-addition and beneficiation.
Zimbabwe plans to increase the contribution of value-added exports to total exports to 20% by 2025 from 9% in 2021.
Majuru said this will be achieved through strengthening value addition of mining and agricultural commodities, capacitating the manufacturing sector, reviewing legislation and provision of key enablers.
