Mthuli optimistic export earnings target will be surpassed
LIVINGSTONE MARUFU
Finance minister, professor Mthuli Ncube, is optimistic the country’s export earnings will surpass US$7.3bn in the coming next few weeks on the back of tobacco, lithium and diamond exports, Business Times can report.
Export revenue in September of this year was reportedly US$6.3bn.
“To year end, merchandise exports are projected to increase by 4.3%, to US$7.3bn in 2023, from US$7bn in 2022 on account of higher tobacco, lithium, and diamond exports.
“In 2024, despite the softening of commodity prices of key minerals, in particular PGMs, exports are projected to remain on the increase sustained by growth in output from lithium, coke and tobacco to US$7.7bn,” professor Ncube said.
The Reserve Bank of Zimbabwe governor John Mangudya weighed in: “ Given subdued international commodity prices, one would expect our export receipts to go down but the improved performance from tobacco, diamond and lithium turned the tide to our favour hence the projected US$7.3bn export receipts will be reached.
“Also next year lithium will play a critical role in pushing our export revenue.”
Merchandise exports rose by 1.5% to US$5.2bn during the first nine months in 2023 from US$5.1bn during the corresponding period in 2022.
Export earnings from minerals, which constitute about 80% of the country’s merchandise exports, however, declined by 2.3% to US$4.1bn from US$4.2bn in the first nine months of 2022, primarily driven by the ongoing retreat of key commodity prices, mainly Platinum Group Metals.
With tobacco exporting at its peak, lithium coming on board and diamond peaking up, a huge recovery is expected.
With only a few weeks left in the year, golden leaf export revenues have reportedly reached US$1.12 bn, according to current tobacco statistics.
Analysts suggested that in order to boost the value of exports, the government should expedite the beneficiary process rather than letting companies exporting goods and commodities in their raw form.
The absence of value addition may be costing the nation billions in lost potential tax income.
